In the Senate of the United States,
July 1 (legislative day, June 30), 2025.
Resolved, That the bill from the House of Representatives (H.R. 1) entitled “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14.”, do pass with the following
AMENDMENT:
The table of contents of this Act is as follows:
(a) In general.—Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) is amended by striking subsection (u) and inserting the following:
“(u) Thrifty food plan.—
“(1) IN GENERAL.—The term ‘thrifty food plan’ means the diet required to feed a family of 4 persons consisting of a man and a woman ages 20 through 50, a child ages 6 through 8, and a child ages 9 through 11 using the items and quantities of food described in the report of the Department of Agriculture entitled ‘Thrifty Food Plan, 2021’, and each successor report updated pursuant to this subsection, subject to the conditions that—
“(A) the relevant market baskets of the thrifty food plan shall only be changed pursuant to paragraph (4);
“(2) HOUSEHOLD ADJUSTMENTS.—The Secretary shall make household adjustments using the following ratios of household size as a percentage of the maximum 4-person allotment:
“(3) ALLOWABLE COST ADJUSTMENTS.—The Secretary shall—
“(A) make cost adjustments in the thrifty food plan for Hawaii and the urban and rural parts of Alaska to reflect the cost of food in Hawaii and urban and rural Alaska;
(b) Conforming amendments.—
(1) Section 16(c)(1)(A)(ii)(II) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(A)(ii)(II)) is amended by striking “section 3(u)(4)” and inserting “section 3(u)(3)”.
(2) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking “section 3(u)(4)” and inserting “section 3(u)(3)”.
(3) Section 27(a)(2) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)(2))) is amended by striking “section 3(u)(4)” each place it appears and inserting “section 3(u)(3)”.
(a) Exceptions.—Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended by striking paragraph (3) and inserting the following:
“(3) EXCEPTIONS.—Paragraph (2) shall not apply to an individual if the individual is—
“(C) a parent or other member of a household with responsibility for a dependent child under 14 years of age;
(b) Standardizing enforcement.—Section 6(o)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)(4)) is amended—
(c) Waiver for noncontiguous states.—Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended—
(2) by inserting after paragraph (6) the following:
“(7) EXEMPTION FOR NONCONTIGUOUS STATES.—
“(A) DEFINITION OF NONCONTIGUOUS STATE.—
“(B) EXEMPTION.—Subject to subparagraph (D), the Secretary may exempt individuals in a noncontiguous State from compliance with the requirements of paragraph (2) if—
“(C) GOOD FAITH EFFORT DETERMINATION.—In determining whether a State agency is demonstrating a good faith effort for purposes of subparagraph (B)(ii), the Secretary shall consider—
“(i) any actions taken by the State agency toward compliance with the requirements of paragraph (2);
“(ii) any significant barriers to or challenges in meeting those requirements, including barriers or challenges relating to funding, design, development, procurement, or installation of necessary systems or resources;
“(D) DURATION OF EXEMPTION.—
“(i) IN GENERAL.—An exemption granted under subparagraph (B) shall expire not later than December 31, 2028, and may not be renewed beyond that date.
(a) Standard utility allowance.—Section 5(e)(6)(C)(iv)(I) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)(iv)(I)) is amended by inserting “with an elderly or disabled member” after “households”.
(b) Third-party energy assistance payments.—Section 5(k)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(k)(4)) is amended—
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:
(a) In general.—Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended—
(2) by adding at the end the following:
“(2) STATE QUALITY CONTROL INCENTIVE.—
“(A) DEFINITION OF PAYMENT ERROR RATE.—In this paragraph, the term ‘payment error rate’ has the meaning given the term in section 16(c)(2).
“(B) STATE COST SHARE.—
“(i) IN GENERAL.—Subject to clause (iii), beginning in fiscal year 2028, if the payment error rate of a State as determined under clause (ii) is—
“(I) less than 6 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 100 percent, and the State share shall be 0 percent;
“(II) equal to or greater than 6 percent but less than 8 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 95 percent, and the State share shall be 5 percent;
“(ii) ELECTIONS.—
“(I) FISCAL YEAR 2028.—For fiscal year 2028, to calculate the applicable State share under clause (i), a State may elect to use the payment error rate of the State from fiscal year 2025 or 2026.
“(II) FISCAL YEAR 2029 AND THEREAFTER.—For fiscal year 2029 and each fiscal year thereafter, to calculate the applicable State share under clause (i), the Secretary shall use the payment error rate of the State for the third fiscal year preceding the fiscal year for which the State share is being calculated.
(b) Limitation on authority.—Section 13(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in the first sentence by inserting “or the payment or disposition of a State share under section 4(a)(2)” after “16(c)(1)(D)(i)(II)”.
Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the matter preceding paragraph (1) by striking “agency an amount equal to 50 per centum” and inserting “agency, through fiscal year 2026, 50 percent, and for fiscal year 2027 and each fiscal year thereafter, 25 percent,”.
Section 28(d)(1)(F) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a(d)(1)(F)) is amended by striking “for fiscal year 2016 and each subsequent fiscal year” and inserting “for each of fiscal years 2016 through 2025”.
Section 6(f) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(f)) is amended to read as follows:
“(f) No individual who is a member of a household otherwise eligible to participate in the supplemental nutrition assistance program under this section shall be eligible to participate in the supplemental nutrition assistance program as a member of that or any other household unless he or she is—
“(2) either—
“(B) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act, excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country;
“(C) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96–422); or
“(D) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
The income (less, at State option, a pro rata share) and financial resources of the individual rendered ineligible to participate in the supplemental nutrition assistance program under this subsection shall be considered in determining the eligibility and the value of the allotment of the household of which such individual is a member.”.
The unobligated balances of amounts appropriated by the following provisions of Public Law 117–169 are rescinded:
(a) Effective reference price.—Section 1111(8)(B)(ii) of the Agricultural Act of 2014 (7 U.S.C. 9011(8)(B)(ii)) is amended by striking “85” and inserting “beginning with the crop year 2025, 88”.
(b) Reference price.—Section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011) is amended by striking paragraph (19) and inserting the following:
“(19) REFERENCE PRICE.—
“(A) IN GENERAL.—Effective beginning with the 2025 crop year, subject to subparagraphs (B) and (C), the term ‘reference price’, with respect to a covered commodity for a crop year, means the following:
Section 1112 of the Agricultural Act of 2014 (7 U.S.C. 9012) is amended—
(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 (3) and allocate to those eligible farms a total of not more than an additional 30,000,000 base acres in the manner provided in this subsection. An owner of a farm that is eligible to receive an allocation of base acres may elect to not receive that allocation by notifying the Secretary not later than 90 days after receipt of the notice provided by the Secretary under this paragraph. “(2) CONTENT OF NOTICE.—The notice under paragraph (1) shall include the following: “(3) 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— “(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. “(4) NUMBER OF BASE ACRES.—Subject to paragraphs (3) and (8), the number of base acres allocated to an eligible farm shall— “(5) ALLOCATION OF ACRES.— “(A) ALLOCATION.—The Secretary shall allocate the number of base acres under paragraph (4) among those covered commodities planted on the farm at any time during the 2019 through 2023 crop years. “(B) ALLOCATION FORMULA.—The allocation of additional base acres for covered commodities shall be in proportion to the ratio of— “(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. “(6) REDUCTION BY THE SECRETARY.—In carrying out this subsection, if the total number of eligible acres allocated to base acres across all farms in the United States under this subsection would exceed 30,000,000 acres, the Secretary shall apply an across-the-board, pro-rata reduction to the number of eligible acres to ensure the number of allocated base acres under this subsection is equal to 30,000,000 acres. “(7) 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) In general.—Section 1115 of the Agricultural Act of 2014 (7 U.S.C. 9015) is amended—
(1) in subsection (a), in the matter preceding paragraph (1), by striking “2023” and inserting “2031”;
(2) in subsection (c)—
(3) by adding at the end the following: “(i) Higher of price loss coverage payments and agriculture risk coverage payments.—For the 2025 crop year, the Secretary shall, on a covered commodity-by-covered commodity basis, make the higher of price loss coverage payments under section 1116 and agriculture risk coverage county coverage payments under section 1117 to the producers on a farm for the payment acres for each covered commodity on the farm.”.
(b) Federal crop insurance supplemental coverage option.—Section 508(c)(4)(C)(iv) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)(C)(iv)) is amended by striking “Crops for which the producer has elected under section 1116 of the Agricultural Act of 2014 to receive agriculture risk coverage and acres” and inserting “Acres” .
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”;
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 general.—Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—
(1) in subsection (a)—
(B) 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) Attribution of payments.—Section 1001(e)(3)(B)(ii) of the Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended—
(1) in the clause heading, by striking “joint ventures and general partnerships” and inserting “qualified pass-through entities”;
(2) by striking “a joint venture or a general partnership” and inserting “a qualified pass-through entity”;
(c) Persons actively engaged in farming.—Section 1001A(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308–1(b)(2)) is amended—
(d) Joint and several liability.—Section 1001B(d) of the Food Security Act of 1985 (7 U.S.C. 1308–2(d)) is amended by striking “partnerships and joint ventures” and inserting “qualified pass-through entities”.
Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—
(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.”.
Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended—
(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
“(ii) FARMING, RANCHING, OR SILVICULTURE ACTIVITIES.—The term ‘farming, ranching, or silviculture activities’ includes agri-tourism, direct-to-consumer marketing of agricultural products, the sale of agricultural equipment owned by the person or legal entity, and other agriculture-related activities, as determined by the Secretary.
“(B) EXCEPTION.—In the case of an excepted payment or benefit, the limitation established by paragraph (1) shall not apply to a person or legal entity during a crop, fiscal, or program year, as appropriate, if greater than or equal to 75 percent of the average gross income of the person or legal entity derives from farming, ranching, or silviculture activities.”.
(a) Availability of nonrecourse marketing assistance loans for loan commodities.—Section 1201(b)(1) of the Agricultural Act of 2014 (7 U.S.C. 9031(b)(1)) is amended by striking “2023” and inserting “2031”.
(b) Loan rates for nonrecourse marketing assistance loans.—Section 1202 of the Agricultural Act of 2014 (7 U.S.C. 9032) is amended—
(3) by inserting after subsection (b) the following: “(c) 2026 through 2031 crop years.—For purposes of each of the 2026 through 2031 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following:
(c) Payment of cotton storage costs.—Section 1204(g) of the Agricultural Act of 2014 (7 U.S.C. 9034(g)) is amended—
(3) 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—
(d) Loan deficiency payments.—
(1) CONTINUATION.—Section 1205(a)(2)(B) of the Agricultural Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is amended by striking “2023” and inserting “2031”.
(2) PAYMENTS IN LIEU OF LDPS.—Section 1206 of the Agricultural Act of 2014 (7 U.S.C. 9036) is amended, in subsections (a) and (d), by striking “2023” each place it appears and inserting “2031”.
(e) Special competitive provisions for extra long staple cotton.—Section 1208(a) of the Agricultural Act of 2014 (7 U.S.C. 9038(a)) is amended, in the matter preceding paragraph (1), by striking “2026” and inserting “2032”.
(f) Availability of recourse loans.—Section 1209 of the Agricultural Act of 2014 (7 U.S.C. 9039) is amended, in subsections (a)(2), (b), and (c), by striking “2023” each place it appears and inserting “2031”.
Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is amended—
(1) in subsection (b)—
(B) in the matter preceding subparagraph (A) (as so redesignated), by striking “The Secretary” and inserting the following:
(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
“(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, as determined and adjusted by the Secretary in accordance with this section, during the 30-day period following the date on which the producer repays the marketing assistance loan and the repayment rate.”;
(2) in subsection (c)—
(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;
(4) in subsection (e)—
(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 the Act entitled ‘An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14’ (119th Congress) and ending on July 31, 2032, if the Secretary determines the adjustment is necessary—
“(iii) to ensure that extra long staple cotton produced in the United States can be marketed freely and competitively; and
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:
(a) Loan rate modifications.—Section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended—
(b) Adjustments to Commodity Credit Corporation storage rates.—Section 167 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7287) is amended—
(c) Modernizing beet sugar allotments.—
(1) SUGAR ESTIMATES.—Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by striking “2023” and inserting “2031”.
(2) ALLOCATION TO PROCESSORS.—Section 359c(g)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc(g)(2)) is amended—
(3) TIMING OF REASSIGNMENT.—Section 359e(b)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)(2)) is amended—
(A) by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively, and indenting appropriately;
(B) in the matter preceding clause (i) (as so redesignated), by striking “If the Secretary” and inserting the following:
(C) by adding at the end the following:
“(B) TIMING.—In carrying out subparagraph (A), the Secretary shall—
(d) Reallocations of tariff-rate quota shortfall.—Section 359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) is amended by adding at the end the following:
“(c) Reallocation.—
“(1) INITIAL REALLOCATION.—Subject to paragraph (3), following the establishment of the tariff-rate quotas under subsection (a) for a quota year, the Secretary shall—
“(2) SUBSEQUENT REALLOCATION.—Subject to paragraph (3), not later than March 1 of a quota year, the Secretary shall reallocate any additional forecasted shortfall in the fulfillment of the tariff-rate quotas for raw cane sugar established under subsection (a)(1) for that quota year.
“(3) CESSATION OF EFFECTIVENESS.—Paragraphs (1) and (2) shall cease to be in effect if—
“(A) the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico, signed December 19, 2014, is terminated; and
“(B) no countervailing duty order under subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) is in effect with respect to sugar from Mexico.
“(d) Refined sugar.—
“(1) DEFINITION OF DOMESTIC SUGAR INDUSTRY.—In this subsection, the term ‘domestic sugar industry’ means domestic—
“(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—
“(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;
“(C) CONSULTATION.—In conducting the study under subparagraph (A), the Secretary shall consult with representatives of the domestic sugar industry and users of refined sugar.
“(D) REPORT.—Not later than 1 year after the date of enactment of this subsection, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the study conducted under subparagraph (A).
“(3) ESTABLISHMENT OF ADDITIONAL TERMS AND CONDITIONS PERMITTED.—
“(A) IN GENERAL.—Based on the findings in the report submitted under paragraph (2)(D), and after providing notice to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Secretary may issue regulations in accordance with subparagraph (B) to establish additional terms and conditions with respect to refined sugar imports that are necessary and appropriate.
“(B) PROMULGATION OF REGULATIONS.—The Secretary may issue regulations under subparagraph (A) if the regulations—
“(ii) are consistent with the requirements of this part, section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272), and obligations under international trade agreements that have been approved by Congress.”.
(e) Clarification of tariff-rate quota adjustments.—Section 359k(b)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk(b)(1)) is amended, in the matter preceding subparagraph (A), by striking “if there is an” and inserting “for the sole purpose of responding directly to an”.
(f) Period of effectiveness.—Section 359l(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking “2023” and inserting “2031”.
(a) Dairy margin coverage production history.—
(1) DEFINITION.—Section 1401(8) of the Agricultural Act of 2014 (7 U.S.C. 9051(8)) is amended by striking “when the participating dairy operation first registers to participate in dairy margin coverage”.
(2) PRODUCTION HISTORY OF PARTICIPATING DAIRY OPERATIONS.—Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is amended by striking subsections (a) and (b) and inserting the following: “(a) Production history.—Except as provided in subsection (b), the production history of a dairy operation for dairy margin coverage is equal to the highest annual milk marketings of the participating dairy operation during any 1 of the 2021, 2022, or 2023 calendar years. “(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:
(b) Dairy margin coverage payments.—Section 1406(a)(1)(C) of the Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(C)) is amended by striking “5,000,000” each place it appears and inserting “6,000,000”.
(c) Premiums for dairy margins.—
(1) TIER I.—Section 1407(b) of the Agricultural Act of 2014 (7 U.S.C. 9057(b)) is amended—
(2) TIER II.—Section 1407(c) of the Agricultural Act of 2014 (7 U.S.C. 9057(c)) is amended—
(3) PREMIUM DISCOUNTS.—Section 1407(g) of the Agricultural Act of 2014 (7 U.S.C. 9057(g)) is amended—
(d) Duration.—Section 1409 of the Agricultural Act of 2014 (7 U.S.C. 9059) is amended by striking “2025” and inserting “2031”.
Section 1614(c) of the Agricultural Act of 2014 (7 U.S.C. 9097(c)) is amended by adding at the end the following:
“(5) FURTHER FUNDING.—The Secretary shall make available to carry out subtitle C of title I of the Act entitled ‘An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14’ (119th Congress) and the amendments made by that subtitle $50,000,000, to remain available until expended, of which—
“(D) $9,000,000 shall be used—
“(i) to carry out mandatory surveys of dairy production cost and product yield information to be reported by manufacturers required to report under section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b), for all products processed in the same facility or facilities; and
“(E) $1,000,000 shall be used to conduct the study under subsection (d) of section 359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk).”.
(a) Livestock indemnity payments.—Section 1501(b) of the Agricultural Act of 2014 (7 U.S.C. 9081(b)) is amended—
(1) by striking paragraph (2) and inserting the following:
“(2) PAYMENT RATES.—
“(A) LOSSES DUE TO PREDATION.—Indemnity payments to an eligible producer on a farm under paragraph (1)(A) shall be made at a rate of 100 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary.
“(B) LOSSES DUE TO ADVERSE WEATHER OR DISEASE.—Indemnity payments to an eligible producer on a farm under subparagraph (B) or (C) of paragraph (1) shall be made at a rate of 75 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary.
“(C) DETERMINATION OF MARKET VALUE.—In determining the market value described in subparagraphs (A) and (B), the Secretary may consider the ability of eligible producers to document regional price premiums for affected livestock that exceed the national average market price for those livestock.
(2) 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) 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—
(2) by striking “county for at least 8 consecutive” and inserting the following: "county for not less than—
(c) Emergency assistance for livestock, honey bees, and farm-raised fish.—
(1) IN GENERAL.—Section 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 9081(d)) is amended by adding at the end the following:
“(5) ASSISTANCE FOR LOSSES DUE TO BIRD DEPREDATION.—
“(A) DEFINITION OF FARM-RAISED FISH.—In this paragraph, the term ‘farm-raised fish’ means fish propagated and reared in a controlled fresh water environment.
“(B) PAYMENTS.—Eligible producers of farm-raised fish, including fish grown as food for human consumption, shall be eligible to receive payments under this subsection to aid in the reduction of losses due to piscivorous birds.
“(C) PAYMENT RATE.—
(2) EMERGENCY ASSISTANCE FOR HONEYBEES.—In determining honeybee colony losses eligible for assistance under section 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 9081(d)), the Secretary shall utilize a normal mortality rate of 15 percent.
(d) Tree assistance program.—Section 1501(e) of the Agricultural Act of 2014 (7 U.S.C. 9081(e)) is amended—
(1) in paragraph (2)(B), by striking “15 percent (adjusted for normal mortality)” and inserting “normal mortality”; and
(a) Definitions.—
(1) IN GENERAL.—Section 502(b)(3) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)(3)) is amended by striking “5” and inserting “10”.
(2) CONFORMING AMENDMENT.—Section 522(c)(7) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)(7)) is amended by striking subparagraph (F).
(b) Increase in assistance.—Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following:
“(9) ADDITIONAL SUPPORT.—
“(A) IN GENERAL.—In addition to any other provision of this subsection (except paragraph (2)(A)) regarding payment of a portion of premiums, a beginning farmer or rancher shall receive additional premium assistance that is the number of percentage points specified in subparagraph (B) greater than the premium assistance that would otherwise be available for the applicable policy, plan of insurance, and coverage level selected by the beginning farmer or rancher.
“(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 participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 5 percentage points.
(a) Coverage level.—Section 508(c)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)) is amended—
(b) Premium subsidy.—Section 508(e)(2)(H)(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)(H)(i)) is amended by striking “65” and inserting “80”.
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 CONTRACT.—The term ‘eligible contract’—
“(I) means a crop insurance contract entered into by an approved insurance provider in an eligible State; and
“(11) SPECIALTY CROPS.—
“(A) MINIMUM REIMBURSEMENT.—Beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, the rate of reimbursement to approved insurance providers and agents for administrative and operating expenses with respect to crop insurance contracts covering agricultural commodities described in section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108–465) shall be equal to or greater than the percentage that is the greater of the following:
“(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.
“(12) A&O INFLATION ADJUSTMENT.—
“(A) IN GENERAL.—Subject to subparagraph (B), beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agreement in effect for the reinsurance year in order to account for inflation, in a manner consistent with the increases 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.
Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended—
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—
Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(C)(i)) is amended, in the matter preceding subclause (I), by striking “for each fiscal year” and inserting “for each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter”.
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).
(a) In general.—Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended—
(b) Regional conservation partnership program.—Section 1271D of the Food Security Act of 1985 (16 U.S.C. 3871d) is amended by striking subsection (a) and inserting the following:
(c) Grassroots source water protection program.—Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb–2(b)) is amended—
(d) Voluntary public access and habitat incentive program.—Section 1240R(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb–5(f)(1)) is amended—
(e) Watershed protection and flood prevention.—Section 15 of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012a) is amended by striking “$50,000,000 for fiscal year 2019 and each fiscal year thereafter” and inserting “$150,000,000 for fiscal year 2026 and each fiscal year thereafter, to remain available until expended”.
(f) Feral swine eradication and control pilot program.—Section 2408(g)(1) of the Agriculture Improvement Act of 2018 (7 U.S.C. 8351 note; Public Law 115–334) is amended—
(g) Rescission.—The unobligated balances of amounts appropriated by section 21001(a) of Public Law 117–169 (136 Stat. 2015) are rescinded.
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”.
(a) Urban, indoor, and other emerging agricultural production research, education, and extension initiative.—Section 1672E(d)(1)(B) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925g(d)(1)(B)) is amended by striking “fiscal year 2024, to remain available until expended” and inserting “each of fiscal years 2024 through 2031”.
(b) Foundation for Food and Agriculture Research.—Section 7601(g)(1)(A) of the Agricultural Act of 2014 (7 U.S.C. 5939(g)(1)(A)) is amended by adding at the end the following:
(c) Scholarships for students at 1890 Institutions.—Section 1446(b)(1) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222a(b)(1)) is amended by adding at the end the following:
(d) Assistive technology program for farmers with disabilities.—Section 1680 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5933) is amended—
(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—
(f) Research Facilities Act.—Section 6 of the Research Facilities Act (7 U.S.C. 390d) is amended—
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”.
(a) Plant pest and disease management and disaster prevention.—Section 420(f) of the Plant Protection Act (7 U.S.C. 7721(f)) is amended—
(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—
(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—
(d) Modernization and improvement of international trade technology systems and data collection.—Section 2123(c)(4) of the Organic Foods Production Act of 1990 (7 U.S.C. 6522(c)(4)) is amended, in the matter preceding subparagraph (A), by striking “and $1,000,000 for fiscal year 2024” and inserting “, $1,000,000 for fiscal years 2024 and 2025, and $5,000,000 for fiscal year 2026”.
(e) National organic certification cost-share program.—Section 10606(d)(1)(C) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523(d)(1)(C)) is amended by striking “2024” and inserting “2031”.
(f) Multiple crop and pesticide use survey.—Section 10109(c) of the Agriculture Improvement Act of 2018 (Public Law 115–334; 132 Stat. 4907) is amended by adding at the end the following:
(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—
(1) in subparagraph (B)—
(2) by adding at the end the following:
“(C) FISCAL YEARS 2026 THROUGH 2030.—Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $233,000,000 for each of fiscal years 2026 through 2030, of which—
“(i) not less than $10,000,000 shall be made available for each such fiscal year to carry out subsection (a);
“(D) SUBSEQUENT FISCAL YEARS.—Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $75,000,000 for fiscal year 2031 and each fiscal year thereafter, of which not less than $45,000,000 shall be made available for each of those fiscal years to carry out subsection (b).”.
(b) Sheep production and marketing grant program.—Section 209(c) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1627a(c)) is amended—
(c) Pima Agriculture Cotton Trust Fund.—Section 12314 of the Agricultural Act of 2014 (7 U.S.C. 2101 note; Public Law 113–79) is amended—
(d) Agriculture Wool Apparel Manufacturers Trust Fund.—Section 12315 of the Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113–79) is amended by striking “2024” each place it appears and inserting “2031”.
(e) Wool research and promotion.—Section 12316(a) of the Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113–79) is amended by striking “2024” and inserting “2031”.
(f) Emergency Citrus Disease Research and Development Trust Fund.—Section 12605(d) of the Agriculture Improvement Act of 2018 (7 U.S.C. 7632 note; Public Law 115–334) is amended by striking “2024” and inserting “2031”.
(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;
(3) $1,000,000,000 for Army, Navy, Air Force, and Space Force sustainment, restoration, and modernization of military unaccompanied housing;
(5) $2,900,000,000 to supplement the basic allowance for housing payable to members of the Army, Air Force, Navy, Marine Corps, and Space Force , notwithstanding section 403 of title 37, United States Code;
(6) $50,000,000 for bonuses, special pays, and incentive pays for members of the Army, Air Force, Navy, Marine Corps, and Space Force pursuant to titles 10 and 37, United States Code;
(7) $10,000,000 for the Defense Activity for Non-Traditional Education Support’s Online Academic Skills Course program for members of the Army, Air Force, Navy, Marine Corps, and Space Force;
(8) $100,000,000 for tuition assistance for members of the Army, Air Force, Navy, Marine Corps, and Space Force pursuant to title 10, United States Code;
(9) $100,000,000 for child care fee assistance for members of the Army, Air Force, Navy, Marine Corps, and Space Force under part II of chapter 88 of title 10, United States Code;
(10) $590,000,000 to increase the Temporary Lodging Expense Allowance under chapter 8 of title 37, United States Code, to 21 days;
(11) $100,000,000 for Department of Defense Impact Aid payments to local educational agencies under section 2008 of title 10, United States Code;
(b) Temporary increase in percentage of value of authorized investment in certain privatized military housing projects.—
(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”;
(3) by striking “under the pilot projects” each place it appears and inserting “pursuant to this section”;
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) $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;
(10) $500,000,000 for the adoption of advanced manufacturing techniques in the shipbuilding industrial base;
(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;
(20) $295,000,000 for development of a second Landing Craft Utility shipyard and production of additional Landing Craft Utility;
(31) $2,100,000,000 for development, procurement, and integration of purpose-built medium unmanned surface vessels;
(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;
(a) Next generation missile defense technologies.—In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—
(1) $250,000,000 for development and testing of directed energy capabilities by the Under Secretary for Research and Engineering;
(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—
(2) $800,000,000 for accelerated development and deployment of next-generation intercontinental ballistic missile defense systems;
(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;
(14) $50,000,000 for the development of second sources for components of short-range air-to-air missiles;
(16) $50,000,000 for the accelerated development of Army next-generation medium-range anti-ship ballistic missiles;
(21) $200,000,000 for the development, procurement, and integration of mass-producible autonomous underwater munitions;
(26) $55,000,000 for the development, procurement, and integration of lightweight multi-mission torpedoes;
(28) $150,000,000 for the development, procurement, and integration of air-delivered long-range maritime mines;
(30) $50,000,000 for the acceleration of one-way attack unmanned aerial systems with advanced autonomy;
(31) $1,000,000,000 for the expansion of the one-way attack unmanned aerial systems industrial base;
(32) $200,000,000 for investments in solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code;
(33) $400,000,000 for investments in the emerging solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code;
(34) $42,000,000 for investments in second sources for large-diameter solid rocket motors for hypersonic missiles;
(36) $170,000,000 for the development of advanced radar depot for repair, testing, and production of radar and electronic warfare systems;
(37) $25,000,000 for the expansion of the Department of Defense industrial base policy analysis workforce;
(40) $2,000,000,000 for additional activities to improve the United States stockpile of critical minerals through the National Defense Stockpile Transaction Fund, authorized by subchapter III of chapter 5 of title 50, United States Code;
(45) $100,000,000 for development of a second solid rocket motor source for Navy air defense and anti ship missiles;
(46) $65,000,000 for expansion of production capacity of Missile Defense Agency long-range anti-ballistic missiles;
(48) $103,300,000 for expansion of depot level maintenance facility for Navy long-range air and missile defense interceptors;
(49) $18,000,000 for creation of domestic source for guidance section of Navy short-range air defense missiles;
(50) $65,000,000 for integration of Army medium-range air and missile defense interceptor with Navy ships;
(52) $167,000,000 for accelerated fielding of Army short-range gun-based air and missile defense system;
(56) $500,000,000 for development, production, and integration of counter-unmanned aerial systems programs;
(57) $350,000,000 for development, production, and integration of non-kinetic counter-unmanned aerial systems programs;
(58) $250,000,000 for development, production, and integration of land-based counter-unmanned aerial systems programs;
(59) $200,000,000 for development, production, and integration of ship-based counter-unmanned aerial systems programs;
(b) Appropriation.—In addition to amounts otherwise available, there is appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $3,300,000,000 for grants and purchase commitments made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code.
(c) Appropriation.—In addition to amounts otherwise available, there is appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $5,000,000,000 for investments in critical minerals supply chains made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code.
(d) Appropriations.—In addition to amounts otherwise available, there is appropriated to the Secretary of Defense, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $500,000,000 to the “Department of Defense Credit Program Account” to carry out the capital assistance program, including loans, loan guarantees, and technical assistance, established under section 149(e) of title 10, United States Code, for critical minerals and related industries and projects, including related Covered Technology Categories: Provided, That—
(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—
(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;
(8) $650,000,000 for the expansion of Mission Capabilities office joint prototyping and experimentation activities for military innovation;
(9) $500,000,000 for the accelerated development and integration of advanced 5G/6G technologies for military use;
(10) $25,000,000 for testing of simultaneous transmit and receive technology for military spectrum agility;
(11) $50,000,000 for the development, procurement, and integration of high-altitude stratospheric balloons for military use;
(12) $120,000,000 for the development, procurement, and integration of long-endurance unmanned aerial systems for surveillance;
(13) $40,000,000 for the development, procurement, and integration of alternative positioning and navigation technology to enable military operations in contested electromagnetic environments;
(14) $750,000,000 for the acceleration of innovative military logistics and energy capability development and deployment;
(15) $125,000,000 for the acceleration of development of small, portable modular nuclear reactors for military use;
(16) $1,000,000,000 for the expansion of programs to accelerate the procurement and fielding of innovative technologies;
(18) $2,000,000,000 for the expansion of Defense Innovation Unit scaling of commercial technology for military use;
(21) $124,000,000 for improvements to Test Resource Management Center artificial intelligence capabilities;
(22) $145,000,000 for the development of artificial intelligence to enable one-way attack unmanned aerial systems and naval systems;
(23) $250,000,000 for the development of the Test Resource Management Center digital test environment;
(27) $1,000,000,000 for the expansion and acceleration of qualification activities and technical data management to enhance competition in defense industrial base;
(30) $90,000,000 for APEX Accelerators, the Mentor-Protege Program, and cybersecurity support to small non-traditional contractors;
(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—
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;
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—
(15) $270,000,000 for development, procurement, and integration of Marine Corps unmanned combat aircraft;
(a) DOD appropriations.—In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—
(1) $2,500,000,000 for risk reduction activities for the Sentinel intercontinental ballistic missile program;
(2) $4,500,000,000 only for expansion of production capacity of B–21 long-range bomber aircraft and the purchase of aircraft only available through the expansion of production capacity;
(4) $100,000,000 for capability enhancements to intercontinental ballistic missile reentry vehicles;
(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;
(b) NNSA appropriations.—In addition to amounts otherwise available, there are appropriated to the Administrator of the National Nuclear Security Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—
(1) $200,000,000 to perform National Nuclear Security Administration Phase 1 studies pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);
(2) $540,000,000 to address deferred maintenance and repair needs of the National Nuclear Security Administration pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);
(3) $1,000,000,000 to accelerate the construction of National Nuclear Security Administration facilities pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);
(4) $400,000,000 to accelerate the development, procurement, and integration of the warhead for the nuclear-armed sea-launched cruise missile pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);
(5) $750,000,000 to accelerate primary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);
(6) $750,000,000 to accelerate secondary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);
(7) $120,000,000 to accelerate domestic uranium enrichment centrifuge deployment for defense purposes pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);
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) $53,000,000 for Special Operations Command exercises and operations in the Western Pacific area of operations;
(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;
(17) $30,000,000 for surveillance and reconnaissance capabilities for United States Indo-Pacific Command;
(18) $500,000,000 for the development, coordination, and deployment of economic competition effects within the Department of Defense;
(21) $500,000,000 for personnel and operations costs associated with forces assigned to United States Indo-Pacific Command;
(22) $300,000,000 for the procurement of mesh network communications capabilities for Special Operations Command Pacific;
(30) $3,650,000,000 for the development, procurement, and integration of United States military satellites and the protection of United States military satellites.
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) $700,000,000 for a pilot program on OPN-8 maritime spares and repair rotable pool for amphibious ships;
(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;
In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $1,000,000,000 for the deployment of military personnel in support of border operations, operations and maintenance activities in support of border operations, counter-narcotics and counter-transnational criminal organization mission support, the operation of national defense areas and construction in national defense areas, and the temporary detention of migrants on Department of Defense installations, in accordance with chapter 15 of title 10, United States Code.
In addition to amounts otherwise available, there is appropriated to the Inspector General of the Department of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available through September 30, 2029, to monitor Department of Defense activities for which funding is appropriated in this title, including—
(a) Authorization of appropriations.—Funds are hereby authorized to be appropriated for military construction, land acquisition, and military family housing functions of each military department (as defined in section 101(a) of title 10, United States Code) as specified in this title.
(b) Spending plan.—Not later than 30 days after the date of the enactment of this title, the Secretary of each military department shall submit to the Committees on Armed Services of the Senate and House of Representatives a detailed spending plan by project for all funds made available by this title to be expended on military construction projects.
Section 1017(a)(2)(A)(iii) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497(a)(2)(A)(iii)) is amended by striking “12” and inserting “6.5”.
The unobligated balances of amounts made available under section 30002(a) of the Act entitled “An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14”, approved August 16, 2022 (Public Law 117–169; 136 Stat. 2027) are rescinded.
(a) In general.—Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d) is amended—
(b) Technical and conforming amendment.—Section 21F(g)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 78u–6(g)(2)) is amended to read as follows:
(c) Transition provision.—During the period beginning on the date of enactment of this Act and ending on October 1, 2025, the Securities and Exchange Commission may expend amounts in the Securities and Exchange Commission Reserve Fund that were obligated before the date of enactment of this Act for any program, project, or activity that is ongoing (as of the day before the date of enactment of this Act) in accordance with subsection (i) of section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d), as in effect on the day before the date of enactment of this Act.
(d) Transfer of remaining amounts.—Effective on October 1, 2025, the obligated and unobligated balances of amounts in the Securities and Exchange Commission Reserve Fund shall be transferred to the general fund of the Treasury.
(e) Closing of account.—For the purposes of section 1555 of title 31, United States Code, the Securities and Exchange Commission Reserve Fund shall be considered closed, and thereafter shall not be available for obligation or expenditure for any purpose, upon execution of the transfer required under subsection (d).
In addition to amounts otherwise available, there is appropriated for fiscal year 2025, out of amounts not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2027, to carry out the Defense Production Act (50 U.S.C. 4501 et seq.).
(a) In general.—Chapter 11 of title 14, United States Code, is amended by adding at the end the following:
Ҥ 1181. Special appropriations
“In addition to amounts otherwise available, there is appropriated to the Coast Guard for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $24,593,500,000, to remain available until September 30, 2029, notwithstanding paragraphs (1) and (2) of section 1105(a) and sections 1131, 1132, 1133, and 1156, to use expedited processes to procure or acquire new operational assets and systems, to maintain existing assets and systems, to design, construct, plan, engineer, and improve necessary shore infrastructure, and to enhance operational resilience for monitoring, search and rescue, interdiction, hardening of maritime approaches, and navigational safety, of which—
“(1) $1,142,500,000 is provided for procurement and acquisition of fixed-wing aircraft, equipment related to such aircraft and training simulators and program management for such aircraft, to provide for security of the maritime border;
“(2) $2,283,000,000 is provided for procurement and acquisition of rotary-wing aircraft, equipment related to such aircraft and training simulators and program management for such aircraft, to provide for security of the maritime border;
“(3) $266,000,000 is provided for procurement and acquisition of long-range unmanned aircraft and base stations, equipment related to such aircraft and base stations, and program management for such aircraft and base stations, to provide for security of the maritime border;
“(4) $4,300,000,000 is provided for procurement of Offshore Patrol Cutters, equipment related to such cutters, and program management for such cutters, to provide operational presence and security of the maritime border and for interdiction of persons and controlled substances;
“(5) $1,000,000,000 is provided for procurement of Fast Response Cutters, equipment related to such cutters, and program management for such cutters, to provide operational presence and security of the maritime border and for interdiction of persons and controlled substances;
“(6) $4,300,000,000 is provided for procurement of Polar Security Cutters, equipment related to such cutters, and program management for such cutters, to ensure timely presence of the Coast Guard in the Arctic and Antarctic regions;
“(7) $3,500,000,000 is provided for procurement of Arctic Security Cutters, equipment related to such cutters, and program management for such cutters, to ensure timely presence of the Coast Guard in the Arctic and Antarctic regions;
“(8) $816,000,000 is provided for procurement of light and medium icebreaking cutters, and equipment relating to such cutters, from shipyards that have demonstrated success in the cost-effective application of design standards and in delivering, on schedule and within budget, vessels of a size and tonnage that are not less than the size and tonnage of the cutters described in this paragraph, and for program management for such cutters, to expand domestic icebreaking capacity;
“(9) $162,000,000 is provided for procurement of Waterways Commerce Cutters, equipment related to such cutters, and program management for such cutters, to support aids to navigation, waterways and coastal security, and search and rescue in inland waterways;
“(10) $4,379,000,000 is provided for design, planning, engineering, recapitalization, construction, rebuilding, and improvement of, and program management for, shore facilities, of which—
“(A) $425,000,000 is provided for design, planning, engineering, construction of, and program management for—
“(11) $2,200,000,000 is provided for aviation, cutter, and shore facility depot maintenance and maintenance of command, control, communication, computer, and cyber assets;
(b) Technical and conforming amendment.—The analysis for chapter 11 of title 14, United States Code, is amended by adding at the end the following:
(a) Definitions.—In this section:
(1) ASSISTANT SECRETARY.—The term “Assistant Secretary” means the Assistant Secretary of Commerce for Communications and Information.
(3) COVERED BAND.—The term “covered band”—
(4) FULL-POWER COMMERCIAL LICENSED USE CASES.—The term “full-power commercial licensed use cases” means flexible use wireless broadband services with base station power levels sufficient for high-power, high-density, and wide-area commercial mobile services, consistent with the service rules under part 27 of title 47, Code of Federal Regulations, or any successor regulations, for wireless broadband deployments throughout the covered band.
(b) General auction authority.—
(1) AMENDMENT.—Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)) is amended by striking “grant a license or permit under this subsection shall expire March 9, 2023” and all that follows and inserting the following: "complete a system of competitive bidding under this subsection shall expire September 30, 2034, except that, with respect to the electromagnetic spectrum—
(2) SPECTRUM AUCTIONS.—The Commission shall grant licenses through systems of competitive bidding, before the expiration of the general auction authority of the Commission under section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by paragraph (1) of this subsection, for not less than 300 megahertz, including by completing a system of competitive bidding not later than 2 years after the date of enactment of this Act for not less than 100 megahertz in the band between 3.98 gigahertz and 4.2 gigahertz.
(c) Identification for reallocation.—
(1) IN GENERAL.—The Assistant Secretary, in consultation with the Commission, shall identify 500 megahertz of frequencies in the covered band for reallocation to non-Federal use, shared Federal and non-Federal use, or a combination thereof, for full-power commercial licensed use cases, that—
(2) SCHEDULE.—The Assistant Secretary shall identify the frequencies under paragraph (1) according to the following schedule:
(3) REQUIRED ANALYSIS.—
(A) IN GENERAL.—In determining under paragraph (1) which specific frequencies within the covered band to reallocate, the Assistant Secretary shall determine the feasibility of the reallocation of frequencies.
(B) REQUIREMENTS.—In conducting the analysis under subparagraph (A), the Assistant Secretary shall assess net revenue potential, relocation or sharing costs, as applicable, and the feasibility of reallocating specific frequencies, with the goal of identifying the best approach to maximize net proceeds of systems of competitive bidding for the Treasury, consistent with section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)).
(d) Auctions.—The Commission shall grant licenses for the frequencies identified for reallocation under subsection (c) through systems of competitive bidding in accordance with the following schedule:
(1) Not later than 4 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for not less than 200 megahertz of the frequencies.
(2) Not later than 8 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for any frequencies identified under subsection (c) that remain to be auctioned after compliance with paragraph (1) of this subsection.
(e) Limitation.—The President shall modify or withdraw any frequency proposed for reallocation under this section not later than 60 days before the commencement of a system of competitive bidding scheduled by the Commission with respect to that frequency, if the President determines that such modification or withdrawal is necessary to protect the national security of the United States.
(f) Appropriation.—In addition to amounts otherwise available, there is appropriated to the Department of Commerce for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available through September 30, 2034, to provide additional support to the Assistant Secretary to—
(2) publish a biennial report, with the last report to be published not later than June 30, 2034, on the value of all spectrum used by Federal entities (as defined in section 113(l) of the National Telecommunications and Information Administration Organization Act (47 U.S.C. 923(l))), that assesses the value of bands of frequencies in increments of not more than 100 megahertz.
(a) In general.—For the purpose of the acquisition, construction, sustainment, and improvement of facilities and equipment necessary to improve or maintain aviation safety, in addition to amounts otherwise made available, there is appropriated to the Administrator of the Federal Aviation Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029—
(3) $500,000,000 for runway safety technologies, runway lighting systems, airport surface surveillance technologies, and to carry out section 347 of the FAA Reauthorization Act of 2024;
(5) $80,000,000 to acquire and install not less than 50 Automated Weather Observing Systems, to acquire and install not less than 60 Visual Weather Observing Systems, to acquire and install not less than 64 weather camera sites, and to acquire and install weather stations;
(6) $40,000,000 to carry out section 44745 of title 49, United States Code, (except for activities described in paragraph (5));
(7) $1,900,000,000 for necessary actions to construct a new air route traffic control center (in this subsection referred to as “ARTCC”): Provided, That not more than 2 percent of such amount is used for planning or administrative purposes: Provided further, That at least 3 existing ARTCCs are divested and integrated into the newly constructed ARTCC;
(8) $100,000,000 to conduct an ARTCC Realignment and Consolidation Effort under which at least 10 existing ARTCCs are closed or consolidated to facilitate recapitalization of ARTCC facilities owned and operated by the Federal Aviation Administration;
(9) $1,000,000,000 to support recapitalization and consolidation of terminal radar approach control facilities (in this subsection referred to as “TRACONs”), the analysis and identification of TRACONs for divestment, consolidation, or integration, planning, site selection, facility acquisition, and transition activities and other appropriate activities for carrying out such divestment, consolidation, or integration, and the establishment of brand new TRACONs;
(a) In general.—Chapter 509 of title 51, United States Code, is amended by adding at the end the following new section:
Ҥ 50924. Space launch and reentry licensing and permitting user fees
“(a) Fees.—
“(1) IN GENERAL.—The Secretary of Transportation shall impose a fee, which shall be deposited in the account established under subsection (b), on each launch or reentry carried out under a license or permit issued under section 50904 during 2026 or a subsequent year, in an amount equal to the lesser of—
“(b) Office of Commercial Space Transportation Launch and Reentry Licensing and Permitting Fund.—There is established in the Treasury of the United States a separate account, which shall be known as the ‘Office of Commercial Space Transportation Launch and Reentry Licensing and Permitting Fund’, for the purposes of expenses of the Office of Commercial Space Transportation of the Federal Aviation Administration and to carry out section 630(b) of the FAA Reauthorization Act of 2024. 70 percent of the amounts deposited into the fund shall be available for such purposes and shall be available without further appropriation and without fiscal year limitation.”.
(b) Clerical amendment.—The table of sections for chapter 509 of title 51, United States Code, is amended by inserting after the item relating to section 50923 the following:
(a) In general.—Chapter 203 of title 51, United States Code, is amended by adding at the end the following:
Ҥ 20306. Special appropriations for Mars missions, Artemis missions, and Moon to Mars program
“(a) In general.—In addition to amounts otherwise available, there is appropriated to the Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $9,995,000,000, to remain available until September 30, 2032, to use as follows:
“(1) $700,000,000, to be obligated not later than fiscal year 2026, for the procurement, using a competitively bid, firm fixed-price contract with a United States commercial provider (as defined in section 50101(7)), of a high-performance Mars telecommunications orbiter—
“(A) that—
“(i) is capable of providing robust, continuous communications for—
“(I) a Mars sample return mission, as described in section 432(3)(C) of the National Aeronautics and Space Administration Transition Authorization Act of 2017 (51 U.S.C. 20302 note; Public Law 115–10); and
“(ii) supports autonomous operations, onboard processing, and extended mission duration capabilities; and
“(2) $2,600,000,000 to meet the requirements of section 20302(a) using the program of record known, as of the date of the enactment of this section, as ‘Gateway’, and as described in section 10811(b)(2)(B)(iv) of the National Aeronautics and Space Administration Authorization Act of 2022 (51 U.S.C. 20302 note; Public Law 117–167), of which not less than $750,000,000 shall be obligated for each of fiscal years 2026, 2027, and 2028.
“(3) $4,100,000,000 for expenses related to meeting the requirements of section 10812 of the National Aeronautics and Space Administration Authorization Act of 2022 (51 U.S.C. 20301; Public Law 117–167) for the procurement, transportation, integration, operation, and other necessary expenses of the Space Launch System for Artemis Missions IV and V, of which not less than $1,025,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029.
“(4) $20,000,000 for expenses related to the continued procurement of the multi-purpose crew vehicle described in section 303 of the National Aeronautics and Space Administration Authorization Act of 2010 (42 U.S.C. 18323), known as the ‘Orion’, for use with the Space Launch System on the Artemis IV Mission and reuse in subsequent Artemis Missions, of which not less than $20,000,000 shall be obligated not later than fiscal year 2026.
“(5) $1,250,000,000 for expenses related to the operation of the International Space Station and for the purpose of meeting the requirement under section 503(a) of the National Aeronautics and Space Administration Authorization Act of 2010 (42 U.S.C. 18353(a)), of which not less than $250,000,000 shall be obligated for such expenses for each of fiscal years 2025, 2026, 2027, 2028, and 2029.
“(6) $1,000,000,000 for infrastructure improvements at the manned spaceflight centers of the Administration, of which not less than—
“(A) $120,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 12641 (53 Fed. Reg. 18816; relating to designating certain facilities of the National Aeronautics and Space Administration in the State of Mississippi as the John C. Stennis Space Center);
“(B) $250,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 11129 (28 Fed. Reg. 12787; relating to designating certain facilities of the National Aeronautics and Space Administration and of the Department of Defense, in the State of Florida, as the John F. Kennedy Space Center);
“(C) $300,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in the Joint Resolution entitled ‘Joint Resolution to designate the Manned Spacecraft Center in Houston, Texas, as the ‘Lyndon B. Johnson Space Center’ in honor of the late President’, approved February 17, 1973 (Public Law 93–8; 87 Stat. 7);
“(D) $100,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 10870 (25 Fed. Reg. 2197; relating to designating the facilities of the National Aeronautics and Space Administration at Huntsville, Alabama, as the George C. Marshall Space Flight Center);
“(E) $30,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the Michoud Assembly Facility in New Orleans, Louisiana; and
“(F) $85,000,000 shall be obligated to carry out subsection (b), of which not less than $5,000,000 shall be obligated for the transportation of the space vehicle described in that subsection, with the remainder transferred not later than the date that is 18 months after the date of the enactment of this section to the entity designated under that subsection, for the purpose of construction of a facility to house the space vehicle referred to in that subsection.
“(b) Space vehicle transfer.—
“(1) IN GENERAL.—Not later than 30 days after the date of the enactment of this section, the Administrator shall identify a space vehicle described in paragraph (2) to be—
“(A) transferred to a field center of the Administration that is involved in the administration of the Commercial Crew Program (as described in section 302 of the National Aeronautics and Space Administration Transition Authorization Act of 2017 (51 U.S.C. 50111 note; Public Law 115–10)); and
(b) Clerical amendment.—The table of sections for chapter 203 of title 51, United States Code, is amended by adding at the end the following:
(a) In general.—Section 32912 of title 49, United States Code, is amended—
(b) Effect; applicability.—The amendments made by subsection (a) shall—
(2) apply to all model years of a manufacturer for which the Secretary of Transportation has not provided a notification pursuant to section 32903(b)(2)(B) of title 49, United States Code, specifying the penalty due for the average fuel economy of that manufacturer being less than the applicable standard prescribed under section 32902 of that title.
Section 49104(b) of title 49, United States Code, is amended to read as follows:
Any unobligated balances of amounts appropriated or otherwise made available by sections 40001, 40002, 40003, and 40004 of Public Law 117–169 (136 Stat. 2028) are hereby rescinded.
Subsection (d)(2)(B) of the Travel Promotion Act of 2009 (22 U.S.C. 2131(d)(2)(B)) is amended by striking “$100,000,000” and inserting “$20,000,000”.
Out of the amounts made available by section 40007(a) of title IV of Public Law 117–169 (49 U.S.C. 44504 note), any unobligated balances of such amounts are hereby rescinded.
Of the unobligated balances of amounts made available under section 106(a) of the CHIPS Act of 2022 (Public Law 117–167; 136 Stat. 1392), $850,000,000 are permanently rescinded.
(a) Repeal of Inflation Reduction Act provisions.—
(1) ONSHORE OIL AND GAS ROYALTY RATES.—Subsection (a) of section 50262 of Public Law 117–169 (136 Stat. 2056) is repealed, and any provision of law amended or repealed by that subsection is restored or revived as if that subsection had not been enacted into law.
(2) NONCOMPETITIVE LEASING.—Subsection (e) of section 50262 of Public Law 117–169 (136 Stat. 2057) is repealed, and any provision of law amended or repealed by that subsection is restored or revived as if that subsection had not been enacted into law.
(b) 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 (30 U.S.C. 181 et seq.).
(2) REQUIREMENT.—The Secretary of the Interior shall ensure—
(A) that any oil and gas lease sale required under paragraph (1) is conducted immediately on completion of all applicable scoping, public comment, and environmental analysis requirements under the Mineral Leasing Act (30 U.S.C. 181 et seq.) and the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
(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)), as amended by subsection (a), is amended by inserting “For purposes of the previous sentence, the term ‘eligible lands’ means all lands that are subject to leasing under this Act and are not excluded from leasing by a statutory prohibition, and the term ‘available’, with respect to eligible lands, means those lands that have been designated as open for leasing under a land use plan developed under section 202 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712) and that have been nominated for leasing through the submission of an expression of interest, are subject to drainage in the absence of leasing, or are otherwise designated as available pursuant to regulations adopted by the Secretary.” after “sales are necessary.”.
(c) Quarterly lease sales.—
(1) IN GENERAL.—In accordance with the Mineral Leasing Act (30 U.S.C. 181 et seq.), each fiscal year, the Secretary of the Interior shall conduct a minimum of 4 oil and gas lease sales of available land in each of the following States:
(2) REQUIREMENT.—In conducting a lease sale under paragraph (1) in a State described in that paragraph, the Secretary of the Interior—
(d) Mineral Leasing Act reforms.—Section 17 of the Mineral Leasing Act (30 U.S.C. 226), as amended by subsection (a), is amended—
(1) by striking the section designation and all that follows through the end of subsection (a) and inserting the following:
“SEC. 17. Leasing of oil and gas parcels.
“(a) Leasing authorized.—
“(1) IN GENERAL.—Any parcel of land subject to disposition under this Act that is known or believed to contain oil or gas deposits shall be made available for leasing, subject to paragraph (2), by the Secretary of the Interior, not later than 18 months after the date of receipt by the Secretary of an expression of interest in leasing the applicable parcel of land available for disposition under this section, if the Secretary determines that the parcel of land is open to oil or gas leasing under the approved resource management plan applicable to the planning area in which the parcel of land is located that is in effect on the date on which the expression of interest was submitted to the Secretary (referred to in this subsection as the ‘approved resource management plan’).
“(2) RESOURCE MANAGEMENT PLANS.—
“(A) LEASE TERMS AND CONDITIONS.—A lease issued by the Secretary under this section with respect to an applicable parcel of land made available for leasing under paragraph (1)—
“(B) EFFECT OF AMENDMENT.—The initiation of an amendment to an approved resource management plan shall not prevent or delay the Secretary from making the applicable parcel of land available for leasing in accordance with that approved resource management plan if the other requirements of this section have been met, as determined by the Secretary.”;
(3) by striking subsection (q) and inserting the following: “(q) Commingling of production.—The Secretary of the Interior shall approve applications allowing for the commingling of production from 2 or more sources (including the area of an oil and gas lease, the area included in a drilling spacing unit, a unit participating area, a communitized area, or non-Federal property) before production reaches the point of royalty measurement regardless of ownership, the royalty rates, and the number or percentage of acres for each source if the applicant agrees to install measurement devices for each source, utilize an allocation method that achieves volume measurement uncertainty levels within plus or minus 2 percent during the production phase reported on a monthly basis, or utilize an approved periodic well testing methodology. Production from multiple oil and gas leases, drilling spacing units, communitized areas, or participating areas from a single wellbore shall be considered a single source. Nothing in this subsection shall prevent the Secretary of the Interior from continuing the current practice of exercising discretion to authorize higher percentage volume measurement uncertainty levels if appropriate technical and economic justifications have been provided.”.
(a) Lease sales.—
(1) GULF OF AMERICA REGION.—
(A) IN GENERAL.—Notwithstanding the 2024–2029 National Outer Continental Shelf Oil and Gas Leasing Program (and any successor leasing program that does not satisfy the requirements of this section), in addition to lease sales which may be held under that program, and except within areas subject to existing oil and gas leasing moratoria, the Secretary of the Interior shall conduct a minimum of 30 region-wide oil and gas lease sales, in a manner consistent with the schedule described in subparagraph (B), in the region identified in the map depicting lease terms and economic conditions accompanying the final notice of sale of the Bureau of Ocean Energy Management entitled “Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254” (85 Fed. Reg. 8010 (February 12, 2020)).
(B) TIMING REQUIREMENT.—Of the not fewer than 30 region-wide lease sales required under this paragraph, the Secretary of the Interior shall—
(i) hold not fewer than 1 lease sale in the region described in subparagraph (A) by December 15, 2025;
(2) ALASKA REGION.—
(A) IN GENERAL.—The Secretary of the Interior shall conduct a minimum of 6 offshore lease sales, in a manner consistent with the schedule described in subparagraph (B), in the Cook Inlet Planning Area as identified in the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled “Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program” (81 Fed. Reg. 84612 (November 23, 2016))).
(B) TIMING REQUIREMENT.—Of the not fewer than 6 lease sales required under this paragraph, the Secretary of the Interior shall hold not fewer than 1 lease sale in the area described in subparagraph (A) in each of calendar years 2026 through 2028, and in each of calendar years 2030 through 2032, by March 15 of the applicable calendar year.
(b) Requirements.—
(1) TERMS AND STIPULATIONS FOR GULF OF AMERICA SALES.—In conducting lease sales under subsection (a)(1), the Secretary of the Interior—
(A) shall, subject to subparagraph (C), offer the same lease form, lease terms, economic conditions, and lease stipulations 4 through 9 as contained in the final notice of sale of the Bureau of Ocean Energy Management entitled “Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254” (85 Fed. Reg. 8010 (February 12, 2020));
(B) may update lease stipulations 1 through 3 and 10 described in that final notice of sale to reflect current conditions for lease sales conducted under subsection (a)(1);
(2) TERMS AND STIPULATIONS FOR ALASKA REGION SALES.—
(A) IN GENERAL.—In conducting lease sales under subsection (a)(2), the Secretary of the Interior shall offer the same lease form, lease terms, economic conditions, and stipulations as contained in the final notice of sale of the Bureau of Ocean Energy Management entitled “Cook Inlet Planning Area Outer Continental Shelf Oil and Gas Lease Sale 244” (82 Fed. Reg. 23291 (May 22, 2017)).
(B) REVENUE SHARING.—Notwithstanding section 8(g) and section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g), 1338), and beginning in fiscal year 2034, of the bonuses, rents, royalties, and other revenues derived from lease sales conducted under subsection (a)(2)—
(c) Offshore commingling.—The Secretary of the Interior shall approve a request of an operator to commingle oil or gas production from multiple reservoirs within a single wellbore completed on the outer Continental Shelf in the Gulf of America Region unless the Secretary of the Interior determines that conclusive evidence establishes that the commingling—
(d) Offshore oil and gas royalty rate.—
(1) REPEAL.—Section 50261 of Public Law 117–169 (136 Stat. 2056) is repealed, and any provision of law amended or repealed by that section is restored or revived as if that section had not been enacted into law.
(2) ROYALTY RATE.—Section 8(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)) (as amended by paragraph (1)) is amended—
(A) in subparagraph (A), by striking “not less than 121⁄2 per centum” and inserting “not less than 121⁄2 percent, but not more than 162⁄3 percent,”;
(B) in subparagraph (C), by striking “not less than 121⁄2 per centum” and inserting “not less than 121⁄2 percent, but not more than 162⁄3 percent,”;
(e) Limitations on amount of distributed qualified outer Continental Shelf revenues.—Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109–432) is amended—
Section 50263 of Public Law 117–169 (30 U.S.C. 1727) is repealed.
(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).
(b) Lease sales required.—
(1) IN GENERAL.—Subject to paragraph (3), in addition to the lease sales required under section 20001(c)(1)(A) of Public Law 115–97 (16 U.S.C. 3143 note), the Secretary shall conduct not fewer than 4 lease sales area-wide under the oil and gas program by not later than 10 years after the date of enactment of this Act.
(2) TERMS AND CONDITIONS.—In conducting lease sales under paragraph (1), the Secretary shall offer the same terms and conditions as contained in the record of decision described in the notice of availability of the Bureau of Land Management entitled “Notice of Availability of the Record of Decision for the Final Environmental Impact Statement for the Coastal Plain Oil and Gas Leasing Program, Alaska” (85 Fed. Reg. 51754 (August 21, 2020)).
(3) SALE ACREAGES; SCHEDULE.—
(A) ACREAGES.—In conducting the lease sales required under paragraph (1), the Secretary shall offer for lease under the oil and gas program—
(B) SCHEDULE.—The Secretary shall offer—
(i) the initial lease sale under paragraph (1) not later than 1 year after the date of enactment of this Act;
(ii) a second lease sale under paragraph (1) not later than 3 years after the date of enactment of this Act;
(4) RIGHTS-OF-WAY.—Section 20001(c)(2) of Public Law 115–97 (16 U.S.C. 3143 note) shall apply to leases awarded under this subsection.
(5) SURFACE DEVELOPMENT.—Section 20001(c)(3) of Public Law 115–97 (16 U.S.C. 3143 note) shall apply to leases awarded under this subsection.
(c) Receipts.—Notwithstanding section 35 of the Mineral Leasing Act (30 U.S.C. 191) and section 20001(b)(5) of Public Law 115–97 (16 U.S.C. 3143 note), of the amount of adjusted bonus, rental, and royalty receipts derived from the oil and gas program and operations on the Coastal Plain pursuant to this section—
(a) Definitions.—In this section:
(1) NPR–A FINAL ENVIRONMENTAL IMPACT STATEMENT.—The term “NPR–A final environmental impact statement” means the final environmental impact statement published by the Bureau of Land Management entitled “National Petroleum Reserve in Alaska Integrated Activity Plan Final Environmental Impact Statement” and dated June 2020, including the errata sheet dated October 6, 2020, and excluding the errata sheet dated September 20, 2022.
(2) NPR–A RECORD OF DECISION.—The term “NPR–A record of decision” means the record of decision published by the Bureau of Land Management entitled “National Petroleum Reserve in Alaska Integrated Activity Plan Record of Decision” and dated December 2020.
(3) PROGRAM.—The term “Program” means the competitive oil and gas leasing, exploration, development, and production program established under section 107 of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a).
(b) Restoration of NPR–A oil and gas leasing program.—Effective beginning on the date of enactment of this Act, the Secretary shall expeditiously restore and resume oil and gas lease sales under the Program for domestic energy production and Federal revenue in the areas designated for oil and gas leasing as described in the NPR–A final environmental impact statement and the NPR–A record of decision.
(c) Resumption of NPR–A lease sales.—
(1) IN GENERAL.—Subject to paragraph (2), the Secretary shall conduct not fewer than 5 lease sales under the Program by not later than 10 years after the date of enactment of this Act.
(d) Terms and stipulations for NPR–A lease sales.—In conducting lease sales under subsection (c), the Secretary shall offer the same lease form, lease terms, economic conditions, and stipulations as described in the NPR–A final environmental impact statement and the NPR–A record of decision.
(e) Receipts.—Section 107(l) of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a(l)) is amended—
(2) by adding at the end the following:
“(2) PERCENT SHARE FOR FISCAL YEAR 2034 AND THEREAFTER.—Beginning in fiscal year 2034, of the receipts from sales, rentals, bonuses, and royalties on leases issued pursuant to this section after the date of enactment of the Act entitled ‘An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14’ (119th Congress)—
(a) Definitions.—In this section:
(1) COAL LEASE.—The term “coal lease” means a lease entered into by the United States as lessor, through the Bureau of Land Management, and an applicant on Bureau of Land Management Form 3400-012 (or a successor form that contains the terms of a coal lease).
(2) QUALIFIED APPLICATION.—The term “qualified application” means an application for a coal lease pending as of the date of enactment of this Act or submitted within 90 days thereafter under the lease by application program administered by the Bureau of Land Management pursuant to the Mineral Leasing Act (30 U.S.C. 181 et seq.) for which any required environmental review has commenced or the Director of the Bureau of Land Management determines can commence within 90 days after receiving the application.
(b) Coal leasing activities.—Not later than 90 days after the date of enactment of this Act, the Secretary of the Interior—
(2) may—
(A) with respect to a previously issued coal lease, grant any additional approvals of the Department of the Interior required for mining activities to commence; and
(B) after completing the actions required by clauses (i) through (iv) of paragraph (1)(A), grant the qualified application and issue the applicable lease to the person that submitted the qualified application if that person submitted the winning bid in the lease sale held under clause (iii) of paragraph (1)(A).
(a) Rate.—Section 7(a) of the Mineral Leasing Act (30 U.S.C. 207(a)) is amended, in the fourth sentence, by striking “121⁄2 per centum” and inserting “121⁄2 percent, except such amount shall be not more than 7 percent during the period that begins on the date of enactment of the Act entitled ‘An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14’ (119th Congress) and ends September 30, 2034,”.
(b) Applicability to existing leases.—The amendment made by subsection (a) shall apply to a coal lease—
(1) issued under section 2 of the Mineral Leasing Act (30 U.S.C. 201) before, on, or after the date of the enactment of this Act; and
(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 Act 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.
Notwithstanding section 2(a)(3)(A) of the Mineral Leasing Act (30 U.S.C. 201(a)(3)(A)) and section 202(a) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712(a)), not later than 90 days after the date of enactment of this Act, the Secretary of the Interior shall make available for lease known recoverable coal resources of not less than 4,000,000 additional acres on Federal land located in the 48 contiguous States and Alaska subject to the jurisdiction of the Secretary, but which shall not include any Federal land within—
(a) Authorization.—In order to provide access to coal reserves in adjacent State or private land that without an authorization could not be mined economically, Federal coal reserves located in Federal land subject to a mining plan previously approved by the Secretary of the Interior as of the date of enactment of this Act and adjacent to coal reserves in adjacent State or private land are authorized to be mined.
(b) Requirement.—Not later than 90 days after the date of enactment of this Act, the Secretary of the Interior shall, without substantial modification, take such steps as are necessary to authorize the mining of Federal land described in subsection (a).
(c) NEPA.—Nothing in this section shall prevent a review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(a) Forest Service.—
(1) DEFINITIONS.—In this subsection:
(A) FOREST PLAN.—The term “forest plan” means a land and resource management plan prepared by the Secretary for a unit of the National Forest System pursuant to section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604).
(B) NATIONAL FOREST SYSTEM.—
(i) IN GENERAL.—The term “National Forest System” means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary.
(2) TIMBER SALES ON PUBLIC DOMAIN FOREST RESERVES.—
(3) LONG-TERM CONTRACTING FOR THE FOREST SERVICE.—
(A) LONG-TERM CONTRACTING.—For the period of fiscal years 2025 through 2034, the Secretary shall enter into not fewer than 40 long-term timber sale contracts with private persons or other public or private entities under subsection (a) of section 14 of the National Forest Management Act of 1976 (16 U.S.C. 472a) for the sale of national forest materials (as defined in subsection (e)(1) of that section) in the National Forest System.
(b) Bureau of Land Management.—
(1) DEFINITIONS.—In this subsection:
(A) PUBLIC LANDS.—The term “public lands” has the meaning given the term in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702).
(B) RESOURCE MANAGEMENT PLAN.—The term “resource management plan” means a land use plan prepared for public lands under section 202 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712).
(2) TIMBER SALES ON PUBLIC LANDS.—
(3) LONG-TERM CONTRACTING FOR THE BUREAU OF LAND MANAGEMENT.—
(A) LONG-TERM CONTRACTING.—For the period of fiscal years 2025 through 2034, the Secretary shall enter into not fewer than 5 long-term contracts with private persons or other public or private entities under section 1 of the Act of July 31, 1947 (commonly known as the “Materials Act of 1947”) (61 Stat. 681, chapter 406; 30 U.S.C. 601), for the disposal of vegetative materials described in that section on public lands.
(a) Definitions.—In this section:
(3) NATIONAL FOREST SYSTEM.—
(A) IN GENERAL.—The term “National Forest System” means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary of Agriculture.
(4) PER-ACRE RATE.—The term “Per-Acre Rate”, with respect to a right-of-way, means the average of the per-acre pastureland rental rates published in the Cash Rents Survey by the National Agricultural Statistics Service for the State in which the right-of-way is located over the 5 calendar-year period preceding the issuance or renewal of the right-of-way.
(5) PROJECT.—The term “project” means a system described in section 2801.9(a)(4) of title 43, Code of Federal Regulations (as in effect on the date of enactment of this Act).
(6) PUBLIC LAND.—The term “public land” means—
(A) public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)); and
(7) RENEWABLE ENERGY PROJECT.—The term “renewable energy project” means a project located on public land that uses wind or solar energy to generate energy.
(8) RIGHT-OF-WAY.—The term “right-of-way” has the meaning given the term in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702).
(b) Acreage rent for wind and solar rights-of-way.—
(1) IN GENERAL.—Pursuant to section 504(g) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1764(g)), the Secretary shall, subject to paragraph (3) and not later than January 1 of each calendar year, collect from the holder of a right-of-way for a renewable energy project an acreage rent in an amount determined by the equation described in paragraph (2).
(c) Capacity fees.—
(1) IN GENERAL.—The Secretary shall, subject to paragraph (3), annually collect a capacity fee from the holder of a right-of-way for a renewable energy project based on the amount described in paragraph (2).
(2) CALCULATION OF CAPACITY FEE.—The amount of a capacity fee collected under paragraph (1) shall be equal to the greater of—
(3) MULTIPLE-USE REDUCTION FACTOR.—
(A) APPLICATION.—The holder of a right-of-way for a wind energy generation project may request that the Secretary apply a multiple-use reduction factor of 10-percent to the amount of a capacity fee determined under paragraph (2) by submitting to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.
(B) APPROVAL.—The Secretary may approve an application submitted under subparagraph (A) only if not less than 25 percent of the land within the area of the right-of-way is authorized for use, occupancy, or development with respect to an activity other than the generation of wind energy for the entirety of the year in which the capacity fee is collected.
(C) LATE DETERMINATION.—
(i) IN GENERAL.—If the Secretary approves an application under subparagraph (B) for a wind energy generation project after the date on which the holder of the right-of-way for the project begins paying a capacity fee, the Secretary shall apply the multiple-use reduction factor described in subparagraph (A) to the capacity fee for the first year beginning after the date of approval and each year thereafter for the period during which the right-of-way remains in effect.
(d) Late payment fee; termination.—
(1) IN GENERAL.—The Secretary may charge the holder of a right-of-way for a renewable energy project a late payment fee if the Secretary does not receive payment for the acreage rent under subsection (b) or the capacity fee under subsection (c) by the date that is 15 days after the date on which the payment was due.
(2) TERMINATION OF RIGHT-OF-WAY.—The Secretary may terminate a right-of-way for a renewable energy project if the Secretary does not receive payment for the acreage rent under subsection (b) or the capacity fee under subsection (c) by the date that is 90 days after the date on which the payment was due.
(a) Definitions.—In this section:
(1) COUNTY.—The term “county” includes a parish, township, borough, and any other similar, independent unit of local government.
(3) NATIONAL FOREST SYSTEM.—
(A) IN GENERAL.—The term “National Forest System” means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary of Agriculture.
(4) PUBLIC LAND.—The term “public land” means—
(A) public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)); and
(b) 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—
(2) PAYMENTS TO STATES AND COUNTIES.—
(A) IN GENERAL.—Amounts paid to States and counties under paragraph (1) shall be used in accordance with the requirements of section 35 of the Mineral Leasing Act (30 U.S.C. 191).
(B) PAYMENTS IN LIEU OF TAXES.—A payment to a county under paragraph (1) shall be in addition to a payment in lieu of taxes received by the county under chapter 69 of title 31, United States Code.
There are rescinded the unobligated balances of amounts made available by the following sections of Public Law 117–169 (commonly known as the “Inflation Reduction Act of 2022”) (136 Stat. 1818):
In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior (acting through the Director of the National Park Service) for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $150,000,000 for events, celebrations, and activities surrounding the observance and commemoration of the 250th anniversary of the founding of the United States, to remain available through fiscal year 2028.
(a) Energy Policy and Conservation Act definitions.—In this section, the terms “related facility”, “storage facility”, and “Strategic Petroleum Reserve” have the meanings given those terms in section 152 of the Energy Policy and Conservation Act (42 U.S.C. 6232).
(b) 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—
(c) Repeal of strategic petroleum reserve drawdown and sale mandate.—Section 20003 of Public Law 115–97 (42 U.S.C. 6241 note) is repealed.
(a) Repeal and rescission.—Section 50142 of Public Law 117–169 (136 Stat. 2044) (commonly known as the “Inflation Reduction Act of 2022”) is repealed and the unobligated balance of amounts made available under that section (as in effect on the day before the date of enactment of this Act) is rescinded.
(b) Rescissions.—
(1) IN GENERAL.—The unobligated balances of amounts made available under the sections described in paragraph (2) are rescinded.
(2) SECTIONS DESCRIBED.—The sections referred to in paragraph (1) are the following sections of Public Law 117–169 (commonly known as the “Inflation Reduction Act of 2022”):
(A) Section 50123 (42 U.S.C. 18795b).
(E) Section 50151 (42 U.S.C. 18715).
(F) Section 50152 (42 U.S.C. 18715a).
(G) Section 50153 (42 U.S.C. 18715b).
(H) Section 50161 (42 U.S.C. 17113b).
(a) In general.—Section 1706 of the Energy Policy Act of 2005 (42 U.S.C. 16517) is amended—
(1) in subsection (a)—
(5) in subsection (e) (as so redesignated), by striking “for—” in the matter preceding paragraph (1) and all that follows through the period at the end of paragraph (2) and inserting “for enabling the identification, leasing, development, production, processing, transportation, transmission, refining, and generation needed for energy and critical minerals.”; and
(b) Commitment authority.—Section 50144(b) of Public Law 117–169 (commonly known as the “Inflation Reduction Act of 2022”) (136 Stat. 2045) is amended by striking “2026” and inserting “2028”.
(a) Definitions.—In this section:
(1) AMERICAN SCIENCE CLOUD.—The term “American science cloud” means a system of United States government, academic, and private sector programs and infrastructures utilizing cloud computing technologies to facilitate and support scientific research, data sharing, and computational analysis across various disciplines while ensuring compliance with applicable legal, regulatory, and privacy standards.
(2) ARTIFICIAL INTELLIGENCE.—The term “artificial intelligence” has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).
(b) Transformational models.—The Secretary of Energy shall—
(1) mobilize National Laboratories to partner with industry sectors within the United States to curate the scientific data of the Department of Energy across the National Laboratory complex so that the data is structured, cleaned, and preprocessed in a way that makes it suitable for use in artificial intelligence and machine learning models; and
In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior, acting through the Commissioner of Reclamation, for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $1,000,000,000, to remain available through September 30, 2034, for construction and associated activities that restore or increase the capacity or use of existing conveyance facilities constructed by the Bureau of Reclamation or for construction and associated activities that increase the capacity of existing Bureau of Reclamation surface water storage facilities, in a manner as determined by the Secretary of the Interior, acting through the Commissioner of Reclamation: Provided, That, for the purposes of section 203 of the Reclamation Reform Act of 1982 (43 U.S.C. 390cc) or section 3404(a) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102–575; 106 Stat. 4708), a contract or agreement entered into pursuant to this section shall not be treated as a new or amended contract: Provided further, That none of the funds provided under this section shall be reimbursable or subject to matching or cost-sharing requirements.
The unobligated balances of amounts made available to carry out section 132 of the Clean Air Act (42 U.S.C. 7432) are rescinded.
Section 134 of the Clean Air Act (42 U.S.C. 7434) is repealed and the unobligated balances of amounts made available to carry out that section (as in effect on the day before the date of enactment of this Act) are rescinded.
The unobligated balances of amounts made available to carry out section 60104 of Public Law 117–169 (136 Stat. 2067) are rescinded.
The unobligated balances of amounts made available to carry out section 60105 of Public Law 117–169 (136 Stat. 2067) are rescinded.
The unobligated balances of amounts made available to carry out section 60106 of Public Law 117–169 (136 Stat. 2069) are rescinded.
The unobligated balances of amounts made available to carry out section 135 of the Clean Air Act (42 U.S.C. 7435) are rescinded.
The unobligated balances of amounts made available to carry out section 60108 of Public Law 117–169 (136 Stat. 2070) are rescinded.
The unobligated balances of amounts made available to carry out section 60109 of Public Law 117–169 (136 Stat. 2071) are rescinded.
The unobligated balances of amounts made available to carry out section 60110 of Public Law 117–169 (136 Stat. 2071) are rescinded.
The unobligated balances of amounts made available to carry out section 60111 of Public Law 117–169 (136 Stat. 2072) are rescinded.
The unobligated balances of amounts made available to carry out section 60112 of Public Law 117–169 (42 U.S.C. 4321 note; 136 Stat. 2072) are rescinded.
(a) Rescission.—The unobligated balances of amounts made available to carry out subsections (a) and (b) of section 136 of the Clean Air Act (42 U.S.C. 7436) are rescinded.
(b) Period.—Section 136(g) of the Clean Air Act (42 U.S.C. 7436(g)) is amended by striking “calendar year 2024” and inserting “calendar year 2034”.
The unobligated balances of amounts made available to carry out section 137 of the Clean Air Act (42 U.S.C. 7437) are rescinded.
The unobligated balances of amounts made available to carry out section 60115 of Public Law 117–169 (136 Stat. 2077) are rescinded.
The unobligated balances of amounts made available to carry out section 60116 of Public Law 117–169 (42 U.S.C. 4321 note; 136 Stat. 2077) are rescinded.
The unobligated balances of amounts made available to carry out section 138 of the Clean Air Act (42 U.S.C. 7438) are rescinded.
The unobligated balances of amounts made available to carry out section 60301 of Public Law 117–169 (136 Stat. 2079) are rescinded.
The unobligated balances of amounts made available to carry out section 60401 of Public Law 117–169 (136 Stat. 2079) are rescinded.
The unobligated balances of amounts made available to carry out section 177 of title 23, United States Code, are rescinded.
The unobligated balances of amounts made available to carry out section 60502 of Public Law 117–169 (136 Stat. 2083) are rescinded.
The unobligated balances of amounts made available to carry out section 60503 of Public Law 117–169 (136 Stat. 2083) are rescinded.
The unobligated balances of amounts made available to carry out section 60504 of Public Law 117–169 (136 Stat. 2083) are rescinded.
The unobligated balances of amounts made available to carry out section 178 of title 23, United States Code, are rescinded.
The unobligated balances of amounts made available to carry out section 179 of title 23, United States Code, are rescinded.
(a) In general.—In addition to amounts otherwise available, there is appropriated for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $256,657,000, to remain available until September 30, 2029, for necessary expenses for capital repair, restoration, maintenance backlog, and security structures of the building and site of the John F. Kennedy Center for the Performing Arts.
Title I of the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) is amended by adding at the end the following:
“SEC. 112. Project sponsor opt-in fees for environmental reviews.
“(a) Process.—
“(1) PROJECT SPONSOR.—A project sponsor that intends to pay a fee under this section for the preparation, or supervision of the preparation, of an environmental assessment or environmental impact statement for a project shall submit to the Council—
“(2) COUNCIL ON ENVIRONMENTAL QUALITY.—Not later than 15 days after the date on which the Council receives information described in paragraph (1) from a project sponsor, the Council shall provide to the project sponsor notice of the amount of the fee to be paid under this section, as determined under subsection (b).
“(3) PAYMENT OF FEE.—A project sponsor may pay a fee under this section after receipt of the notice described in paragraph (2).
“(b) Fee amount.—The amount of a fee under this section shall be—
“(1) 125 percent of the anticipated costs to prepare the environmental assessment or environmental impact statement; and
“(2) in the case of an environmental assessment or environmental impact statement to be prepared in whole or in part by a project sponsor under section 107(f), 125 percent of the anticipated costs to supervise preparation of, and, as applicable, prepare, the environmental assessment or environmental impact statement.”.
(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.
(a) In general.—Section 1(j) is amended—
(b) Inflation adjustment.—Section 1(j)(3)(B)(i) is amended by inserting “solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins,” before “subsection (f)(3)”.
(a) In general.—Section 63(c)(7) is amended—
(b) Additional increase in standard deduction.—Paragraph (7) of section 63(c) is amended—
(1) by striking “$18,000” both places it appears in subparagraphs (A)(i) and (B)(ii) and inserting “$23,625”,
(a) In general.—Section 151(d)(5) is amended—
(3) by adding at the end the following new subparagraph:
“(C) DEDUCTION FOR SENIORS.—
“(i) IN GENERAL.—In the case of a taxable year beginning before January 1, 2029, there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual with respect to the taxpayer.
“(iii) LIMITATION BASED ON MODIFIED ADJUSTED GROSS INCOME.—
(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:
(a) Extension and increase of expanded child tax credit.—Section 24(h) is amended—
(b) Social security number required.—Section 24(h)(7) is amended to read as follows:
“(7) SOCIAL SECURITY NUMBER REQUIRED.—
“(A) IN GENERAL.—No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes on the return of tax for the taxable year—
“(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—
(c) Inflation adjustments.—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—
(d) Conforming amendment.—Section 24(h)(5) is amended to read as follows:
(e) Omission of correct social security number treated as mathematical or clerical error.—Section 6213(g)(2)(I) is amended by striking “section 24(e)” and inserting “section 24”.
(a) Increase in taxable income limitation phase-in amounts.—
(1) IN GENERAL.—Subparagraph (B) of section 199A(b)(3) is amended by striking “$50,000 ($100,000 in the case of a joint return)” each place it appears and inserting “$75,000 ($150,000 in the case of a joint return)”.
(2) CONFORMING AMENDMENT.—Paragraph (3) of section 199A(d) is amended by striking “$50,000 ($100,000 in the case of a joint return)” each place it appears and inserting “$75,000 ($150,000 in the case of a joint return)” .
(b) Minimum deduction for active qualified business income.—
(1) IN GENERAL.—Subsection (i) of section 199A is amended to read as follows: “(i) Minimum deduction for active qualified business income.— “(1) IN GENERAL.—In the case of an applicable taxpayer for any taxable year, the deduction allowed under subsection (a) for the taxable year shall be equal to the greater of— “(2) APPLICABLE TAXPAYER.—For purposes of this subsection— “(3) INFLATION ADJUSTMENT.—In the case of any taxable year beginning after 2026, the $400 amount in paragraph (1)(B) and the $1,000 amount in paragraph (2)(A) shall each be increased by an amount equal to — “(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2025’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof. If any increase under this paragraph is not a multiple of $5, such increase shall be rounded to the nearest multiple of $5.”.
(2) CONFORMING AMENDMENT.—Section 199A(a) is amended by inserting “except as provided in subsection (i), ” before “there”.
(a) In general.—Section 55(d)(4) is amended—
(b) Modification of inflation adjustment.—Section 55(d)(4)(B) is amended—
(1) by striking “2018” and inserting “2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I))”, and
(2) by striking “determined by substituting ‘calendar year 2017’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.” and inserting “determined by substituting for ‘calendar year 2016’ in subparagraph (A)(ii) thereof—
(c) Modification of phaseout amount.—Section 55(d)(4)(A)(ii) is amended by striking “and” at the end of subclause (II), and by adding at the end the following new subclause:
(a) In general.—Section 163(h)(3)(F) is amended—
(1) in clause (i)—
(a) In general.—Section 165(h)(5) is amended—
(b) Extension to State declared disasters.—
(1) IN GENERAL.—Subparagraph (A) of section 165(h)(5), as amended by subsection (a), is further amended by striking “(i)(5))” and inserting “(i)(5)) or a State declared disaster”.
(2) EXCEPTION RELATED TO PERSONAL CASUALTY GAINS.—Clause (i) of section 165(h)(5)(B) is amended by striking “(as so defined)” and inserting “(as so defined) or a State declared disaster”.
(3) STATE DECLARED DISASTER.—Paragraph (5) of section 165(h) is amended by adding at the end the following new subparagraph:
“(C) STATE DECLARED DISASTER.—For purposes of this paragraph—
“(i) IN GENERAL.—The term ‘State declared disaster’ means, with respect to any State, any natural catastrophe (including any hurricane, tornado, storm, high water, wind-driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the State, which in the determination of the Governor of such State (or the Mayor, in the case of the District of Columbia) and the Secretary causes damage of sufficient severity and magnitude to warrant the application of the rules of this section.
(a) In general.—Section 67(g) is amended—
(b) Deduction for educator expenses.—
(1) IN GENERAL.—Section 67(b) is amended by striking “and” at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting “, and”, and by adding at the end the following new paragraph:
(2) INCLUSION OF COACHES AND CERTAIN NONATHLETIC INSTRUCTIONAL EQUIPMENT.—Section 67 is amended by redesignating subsection (g), as amended by this section, as subsection (h), and by inserting after subsection (f) the following new section: “(g) Educator expenses.—For purposes of subsection (b)(13), the term ‘educator expenses’ means expenses of a type which would be described in section 62(a)(2)(D) if—
(a) In general.—Section 68 is amended to read as follows:
(b) Limitation not applicable to determination of deduction for qualified business income.—
(1) IN GENERAL.—Section 199A(e)(1) is amended by inserting “without regard to section 68 and” after “shall be computed”.
(2) PATRONS OF SPECIFIED AGRICULTURAL AND HORTICULTURAL COOPERATIVES.—Section 199A(g)(2)(B) is amended by inserting “section 68 or” after “without regard to”.
(a) In general.—Section 132(f) is amended—
(b) Inflation adjustment.—Clause (ii) of section 132(f)(6)(A) is amended by striking “1998” in clause (ii) and inserting “1997”.
(c) Coordination with disallowance of certain expenses.—Subsection (l) of section 274 is amended—
(a) Extension of limitation on deduction.—Section 217(k) is amended—
(b) Allowance of deduction for members of the intelligence community.—Section 217(k), as amended by subsection (a), is further amended—
(2) by adding at the end the following new paragraph:
“(2) MEMBERS OF THE INTELLIGENCE COMMUNITY.—An employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment which requires relocation shall be treated for purposes of this section in the same manner as an individual to whom subsection (g) applies.”.
(c) Extension of limitation on exclusion.—Section 132(g)(2) is amended—
(d) Allowance of exclusion for members of the intelligence community.—Section 132(g)(2) of the Internal Revenue Code of 1986 is amended by inserting “, or an employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment that requires relocation” after “change of station”.
(a) In general.—Section 165 is amended by striking subsection (d) and inserting the following:
(a) In general.—Section 529A(b)(2)(B) is amended—
(a) Extension.—
(1) 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) Increase of credit amount.—
(1) IN GENERAL.—Section 25B(a) is amended by striking “$2,000” and inserting “$2,100”.
(a) In general.—Section 529(c)(3)(C)(i)(III) is amended by striking “before January 1, 2026,”.
(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 each of the following locations, but only during the period for which any member of the Armed Forces of the United States is entitled to 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:
(c) Conforming amendment.—Section 11026 of Public Law 115–97 is amended by striking subsections (c) and (d).
(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—
“(B) LOANS DISCHARGED.—A loan is described in this subparagraph if such loan is—
“(ii) a private education loan (as defined in section 140(a) of the Consumer Credit Protection Act (15 U.S.C. 1650(a)).
(b) Omission of correct social security number treated as mathematical or clerical error.—Section 6213(g)(2), as amended by this Act, is further amended by striking “and” at the end of subparagraph (V), by striking the period at the end of subparagraph (W) and inserting “, and”, and by inserting after subparagraph (W) the following new subparagraph:
(a) In general.—Section 164(b)(6) is amended—
(b) Applicable limitation amount.—Section 164(b) is amended by adding at the end the following new paragraph:
“(7) APPLICABLE LIMITATION AMOUNT.—
“(A) IN GENERAL.—For purposes of paragraph (6), the term ‘applicable limitation amount’ means—
“(B) PHASEDOWN BASED ON MODIFIED ADJUSTED GROSS INCOME.—
“(i) IN GENERAL.—Except as provided in clause (iii), in the case of any taxable year beginning before January 1, 2030, the applicable limitation amount shall be reduced by 30 percent of the excess (if any) of the taxpayer's modified adjusted gross income over the threshold amount (half the threshold amount in the case of a married individual filing a separate return).
(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:
“(a) In general.—There shall be allowed as a deduction an amount equal to the qualified tips received during the taxable year that are included on statements furnished to the individual pursuant to section 6041(d)(3), 6041A(e)(3), 6050W(f)(2), or 6051(a)(18), or reported by the taxpayer on Form 4137 (or successor).
“(b) Limitation.—
“(1) IN GENERAL.—The amount allowed as a deduction under this section for any taxable year shall not exceed $25,000.
“(2) LIMITATION BASED ON ADJUSTED GROSS INCOME.—
“(c) Tips received in course of trade or business.—In the case of qualified tips received by an individual during any taxable year in the course of a trade or business (other than the trade or business of performing services as an employee) of such individual, such qualified tips shall be taken into account under subsection (a) only to the extent that the gross income for the taxpayer from such trade or business for such taxable year (including such qualified tips) exceeds the sum of the deductions (other than the deduction allowed under this section) allocable to the trade or business in which such qualified tips are received by the individual for such taxable year.
“(d) Qualified tips.—For purposes of this section—
“(1) IN GENERAL.—The term ‘qualified tips’ means cash tips received by an individual in an occupation which customarily and regularly received tips on or before December 31, 2024, as provided by the Secretary.
“(2) EXCLUSIONS.—Such term shall not include any amount received by an individual unless—
“(A) such amount is paid voluntarily without any consequence in the event of nonpayment, is not the subject of negotiation, and is determined by the payor,
“(B) the trade or business in the course of which the individual receives such amount is not a specified service trade or business (as defined in section 199A(d)(2)), and
“(C) such other requirements as may be established by the Secretary in regulations or other guidance are satisfied.
For purposes of subparagraph (B), in the case of an individual receiving tips in the trade or business of performing services as an employee, such individual shall be treated as receiving tips in the course of a trade or business which is a specified service trade or business if the trade or business of the employer is a specified service trade or business.
“(e) Social security number required.—
“(f) Married individuals.—If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year.
(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:
(c) Omission of correct social security number treated as mathematical or clerical error.—Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking “and” at the end of subparagraph (W), by striking the period at the end of subparagraph (X) and inserting “, and”, and by inserting after subparagraph (X) the following new subparagraph:
(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:
(e) Extension of tip credit to beauty service business.—
(1) IN GENERAL.—Section 45B(b)(2) is amended to read as follows:
“(2) APPLICATION ONLY TO CERTAIN LINES OF BUSINESS.—In applying paragraph (1) there shall be taken into account only tips received from customers or clients in connection with the following services:
(2) CREDIT DETERMINED WITH RESPECT TO MINIMUM WAGE IN EFFECT.—Section 45B(b)(1)(B) is amended—
(f) Reporting requirements.—
(1) RETURNS FOR PAYMENTS MADE IN THE COURSE OF A TRADE OR BUSINESS.—
(A) STATEMENT FURNISHED TO SECRETARY.—Section 6041(a) is amended by inserting “(including a separate accounting of any such amounts reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)” after “such gains, profits, and income”.
(B) STATEMENT FURNISHED TO PAYEE.—Section 6041(d) is amended by striking “and” at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting “, and”, and by inserting after paragraph (2) the following new paragraph:
(2) RETURNS FOR PAYMENTS MADE FOR SERVICES AND DIRECT SALES.—
(A) STATEMENT FURNISHED TO SECRETARY.—Section 6041A(a) is amended by inserting “(including a separate accounting of any such amounts reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)” after “amount of such payments”.
(B) STATEMENT FURNISHED TO PAYEE.—Section 6041A(e) is amended by striking “and” at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting “, and”, and by inserting after paragraph (2) the following new paragraph:
(3) 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:
(B) STATEMENT FURNISHED TO PAYEE.—Section 6050W(f)(2) is amended by inserting “(including a separate accounting of any such amounts that have been reasonably designated by payors as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)” after “reportable payment transactions”.
(4) RETURNS RELATED TO WAGES.—Section 6051(a) is amended by striking “and” at the end of paragraph (16), by striking the period at the end of paragraph (17) and inserting “, and”, and by inserting after paragraph (17) the following new paragraph:
(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:
(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 customarily and regularly received tips on or before December 31, 2024, for purposes of section 224(d)(1) of the Internal Revenue Code of 1986 (as added by subsection (a)).
(i) Withholding.—The Secretary of the Treasury (or the Secretary's delegate) shall modify the procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 2025, to take into account the deduction allowed under section 224 of such Code (as added by this Act).
(j) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2024.
(k) Transition rule.—In the case of any cash tips required to be reported for periods before January 1, 2026, persons required to file returns or statements under section 6041(a), 6041(d)(3), 6041A(a), 6041A(e)(3), 6050W(a), or 6050W(f)(2) of the Internal Revenue Code of 1986 (as amended by this section) may approximate a separate accounting of amounts designated as cash tips by any reasonable method specified by the Secretary.
(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 and included on statements furnished to the individual pursuant to section 6041(d)(4) or 6051(a)(19).
“(b) Limitation.—
“(1) IN GENERAL.—The amount allowed as a deduction under this section for any taxable year shall not exceed $12,500 ($25,000 in the case of a joint return).
“(2) LIMITATION BASED ON ADJUSTED GROSS INCOME.—
“(c) 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.
“(d) Social security number required.—
“(e) Married individuals.—If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year.
(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:
(c) Reporting.—
(1) REQUIREMENT TO INCLUDE OVERTIME COMPENSATION ON W-2.—Section 6051(a), as amended by the preceding provision of this Act, is amended by striking “and” at the end of paragraph (17), by striking the period at the end of paragraph (18) and inserting “, and”, and by inserting after paragraph (18) the following new paragraph:
(2) PAYMENTS TO PERSONS NOT TREATED AS EMPLOYEES UNDER TAX LAWS.—
(A) STATEMENT FURNISHED TO SECRETARY.—Section 6041(a), as amended by section 70201(e)(1)(A), is amended by inserting “and a separate accounting of any amount of qualified overtime compensation (as defined in section 225(c))” after “occupation of the person receiving such tips”.
(B) STATEMENT FURNISHED TO PAYEE.—Section 6041(d), as amended by section 70201(e)(1)(B), is amended by striking “and” at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting “, and”, and by inserting after paragraph (3) the following new paragraph:
(d) Omission of correct social security number treated as mathematical or clerical error.—Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking “and” at the end of subparagraph (X), by striking the period at the end of subparagraph (Y) and inserting “, and”, and by inserting after subparagraph (Y) the following new subparagraph:
(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:
(f) Withholding.—The Secretary of the Treasury (or the Secretary's delegate) shall modify the procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 2025, to take into account the deduction allowed under section 225 of such Code (as added by this Act).
(g) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2024.
(h) Transition rule.—In the case of qualified overtime compensation required to be reported for periods before January 1, 2026, persons required to file returns or statements under section 6051(a)(19), 6041(a), or 6041(d)(4) of the Internal Revenue Code of 1986 (as amended by this section) may approximate a separate accounting of amounts designated as qualified overtime compensation by any reasonable method specified by the Secretary.
(a) In general.—Section 163(h) is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:
“(4) SPECIAL RULES FOR TAXABLE YEARS 2025 THROUGH 2028 RELATING TO QUALIFIED PASSENGER VEHICLE LOAN INTEREST.—
“(A) IN GENERAL.—In the case of taxable years beginning after December 31, 2024, and before January 1, 2029, for purposes of this subsection the term ‘personal interest’ shall not include qualified passenger vehicle loan interest.
“(B) QUALIFIED PASSENGER VEHICLE LOAN INTEREST DEFINED.—
“(i) IN GENERAL.—For purposes of this paragraph, the term ‘qualified passenger vehicle loan interest’ means any interest which is paid or accrued during the taxable year on indebtedness incurred by the taxpayer after December 31, 2024, for the purchase of, and that is secured by a first lien on, an applicable passenger vehicle for personal use.
“(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).
“(D) APPLICABLE PASSENGER VEHICLE.—The term ‘applicable passenger vehicle’ means any vehicle—
“(ii) which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails),
Such term shall not include any vehicle the final assembly of which did not occur within the United States.
“(E) OTHER DEFINITIONS AND SPECIAL RULES.—For purposes of this paragraph—
“(i) FINAL ASSEMBLY.—For purposes of subparagraph (D), the term ‘final assembly’ means the process by which a manufacturer produces a vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle.
“(ii) TREATMENT OF REFINANCING.—Indebtedness described in subparagraph (B) shall include indebtedness that results from refinancing any indebtedness described in such subparagraph, and that is secured by a first lien on the applicable passenger vehicle with respect to which the refinanced indebtedness was incurred, but only to the extent the amount of such resulting indebtedness does not exceed the amount of such refinanced indebtedness.
(b) Deduction allowed to non-itemizers.—Section 63(b), as amended by the preceding provisions of this Act, is amended by striking “and” at the end of paragraph (5), by striking the period at the end of paragraph (6) and inserting “and”, and by adding at the end the following new paragraph:
(c) Reporting.—
(1) IN GENERAL.—Subpart B of part III of subchapter A of chapter 61 is amended by adding at the end the following new section:
“SEC. 6050AA. Returns relating to applicable passenger vehicle loan interest received in trade or business from individuals.
“(a) In general.—Any person—
“(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,
“(b) Form and manner of returns.—A return is described in this subsection if such return—
“(2) contains—
“(A) the name and address of the individual from whom the interest described in subsection (a)(2) was received,
“(C) the amount of outstanding principal on the specified passenger vehicle loan as of the beginning of such calendar year,
“(c) Statements to be furnished to individuals with respect to whom information is required.—Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—
“(1) the name, address, and phone number of the information contact of the person required to make such return, and
“(2) the information described in subparagraphs (B), (C), (D), and (E) of subsection (b)(2) with respect to such individual (and such information as is described in subsection (b)(2)(F) with respect to such individual as the Secretary may provide for purposes of this subsection).
“(d) Definitions.—For purposes of this section—
(2) PENALTIES.—Section 6724(d) is amended—
(A) in paragraph (1)(B), by striking “or” at the end of clause (xxvii), by striking “and” at the end of clause (xxviii) and inserting “or”, and by adding at the end the following new clause:
(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. ”.
(a) Trump accounts.—
(1) IN GENERAL.—Subchapter F of chapter 1 is amended by adding at the end the following new part:
“(a) General rule.—Except as provided in this section or under regulations or guidance established by the Secretary, a Trump account shall be treated for purposes of this title in the same manner as an individual retirement account under section 408(a).
“(b) Trump account.—For purposes of this section—
“(1) IN GENERAL.—The term ‘Trump account’ means an individual retirement account (as defined in section 408(a)) which is not designated as a Roth IRA and which meets the following requirements:
“(A) The account—
“(B) The account is designated (in such manner as the Secretary shall prescribe) at the time of the establishment of the account as a Trump account.
“(C) The written governing instrument creating the account meets the following requirements:
“(i) No contribution will be accepted—
“(II) in the case of a contribution made in any calendar year before the calendar year in which the account beneficiary attains age 18, if such contribution would result in aggregate contributions (other than exempt contributions) for such calendar year in excess of the contribution limit specified in subsection (c)(2)(A).
“(2) ELIGIBLE INDIVIDUAL.—The term ‘eligible individual’ means any individual—
“(A) who has not attained the age of 18 before the close of the calendar year in which the election under subparagraph (C) is made,
“(B) for whom a social security number (within the meaning of section 24(h)(7)) has been issued before the date on which an election under subsection (C) is made, and
“(C) for whom—
“(i) an election is made under this subparagraph by the Secretary if the Secretary determines (based on information available to the Secretary from tax returns or otherwise) that such individual meets the requirements of subparagraphs (A) and (B) and no prior election has been made for such individual under clause (ii), or
“(3) ELIGIBLE INVESTMENT.—
“(A) IN GENERAL.—The term ‘eligible investment’ means any mutual fund or exchange traded fund which—
“(B) QUALIFIED INDEX.—The term ‘qualified index’ means—
“(ii) any other index—
“(II) for which regulated futures contracts (as defined in section 1256(g)(1)) are traded on a qualified board or exchange (as defined in section 1256(g)(7)).
Such term shall not include any industry or sector-specific index, but may include an index based on market capitalization.
“(c) Treatment of contributions.—
“(1) NO DEDUCTION ALLOWED.—No deduction shall be allowed under section 219 for any contribution which is made before the first day of the calendar year in which the account beneficiary attains age 18.
“(2) CONTRIBUTION LIMIT.—In the case of any contribution made before the calendar year in which the account beneficiary attains age 18—
“(A) IN GENERAL.—The aggregate amount of contributions (other than exempt contributions) for such calendar year shall not exceed $5,000.
“(d) Distributions.—
“(1) IN GENERAL.—Except as otherwise provided in this subsection, no distribution shall be allowed before the first day of the calendar year in which the account beneficiary attains age 18.
“(2) TAX TREATMENT OF ALLOWABLE DISTRIBUTIONS.—For purposes of applying section 72 to any amount distributed from a Trump account, the investment in the contract shall not include—
“(3) QUALIFIED ROLLOVER CONTRIBUTIONS.—Paragraph (1) shall not apply to any distribution which is a qualified rollover contribution and the amount of such distribution shall not be included in the gross income of the beneficiary.
“(4) QUALIFIED ABLE ROLLOVER CONTRIBUTIONS.—
“(A) IN GENERAL.—Paragraph (1) shall not apply to any distribution which is a qualified ABLE rollover contribution and the amount of such distribution shall not be included in the gross income of the beneficiary.
“(B) QUALIFIED ABLE ROLLOVER CONTRIBUTION.—For purposes of this section, the term ‘qualified ABLE rollover contribution’ means an amount which is paid during the calendar year in which the account beneficiary attains age 17 in a direct trustee-to-trustee transfer from a Trump account maintained for the benefit of the account beneficiary to an ABLE account (as defined in section 529A(e)(6)) for the benefit of the such account beneficiary, but only if the amount of such payment is equal to the entire balance of the Trump account from which the payment is made.
“(5) DISTRIBUTIONS OF EXCESS CONTRIBUTIONS.—In the case of any contribution which is made before the calendar year in which the account beneficiary attains age 18 and which is in excess of the limitation in effect under subsection (c)(2)(A) for the calendar year—
“(6) TREATMENT OF DEATH OF ACCOUNT BENEFICIARY.—If, by reason of the death of the account beneficiary before the first day of the calendar year in which the account beneficiary attains age 18, any person acquires the account beneficiary’s interest in the Trump account—
“(e) Qualified rollover contribution.—For purposes of this section, the term ‘qualified rollover contribution’ means an amount which is paid in a direct trustee-to-trustee transfer from a Trump account maintained for the benefit of the account beneficiary to a Trump account maintained for such beneficiary, but only if the amount of such payment is equal to the entire balance of the Trump account from which the payment is made.
“(f) Qualified general contribution.—For purposes of this section—
“(1) IN GENERAL.—The term ‘qualified general contribution’ means any contribution which—
“(2) GENERAL FUNDING CONTRIBUTION.—The term ‘general funding contribution’ means a contribution which—
“(3) QUALIFIED CLASS.—
“(A) IN GENERAL.—The term ‘qualified class’ means any of the following:
“(i) All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made.
“(g) Trustee selection.—In the case of any Trump account created or organized by the Secretary, the Secretary shall take into account the following criteria in selecting the trustee:
“(h) Other special rules and coordination with individual retirement account rules.—
“(1) IN GENERAL.—The rules of subsections (k) and (p) of section 408 shall not apply to a Trump account, and the rules of subsections (d) and (i) of section 408 shall not apply to a Trump account for any taxable year beginning before the calendar year in which the account beneficiary attains age 18.
“(2) CUSTODIAL ACCOUNTS.—In the case of a Trump account, section 408(h) shall be applied by substituting ‘a Trump account described in section 530A(b)(1)’ for ‘an individual retirement account described in subsection (a)’.
“(3) CONTRIBUTIONS.—In the case of any taxable year beginning before the first day of the calendar year in which the account beneficiary attains age 18, a contribution to a Trump account shall not be taken into account in applying any contribution limit to any individual retirement plan other than a Trump account.
“(4) DISTRIBUTIONS.—Section 408(d)(2) shall be applied separately with respect to Trump Accounts and other individual retirement plans.
“(5) EXCESS CONTRIBUTIONS.—For purposes of applying section 4973(b) to a Trump account for any taxable year beginning before the first day of the calendar year in which the account beneficiary attains age 18, the term ‘excess contributions’ means the sum of—
“(A) the amount by which the amount contributed to the account for the calendar year in which taxable year begins exceeds the amount permitted to be contributed to the account under subsection (c)(2), and
For purposes of this paragraph, the excess contributions for a taxable year are reduced by the distributions to which subsection (d)(5) applies that are made during the taxable year or by the date prescribed by law (including extensions of time) for filing the account beneficiary’s return for the taxable year.
“(i) Reports.—
“(1) IN GENERAL.—The trustee of a Trump account shall make such reports regarding such account to the Secretary and to the beneficiary of the account at such time and in such manner as may be required by the Secretary. Such reports shall include information with respect to—
(2) QUALIFIED ABLE ROLLOVER CONTRIBUTIONS EXEMPT FROM ABLE CONTRIBUTION LIMITATION.—
(A) IN GENERAL.—Section 529A(b)(2)(B) is amended by inserting “or received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)” after “except as provided in the case of contributions under subsection (c)(1)(C)”.
(B) PROHIBITION ON EXCESS CONTRIBUTIONS.—The second sentence of section 529A(b)(6) is amended by inserting “but do not include any contributions received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)” before the period at the end.
(C) CONFORMING AMENDMENT.—Section 4973(h)(1) is amended by inserting “or contributions received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)” after “other than contributions under section 529A(c)(1)(C)”.
(3) FAILURE TO PROVIDE REPORTS ON TRUMP ACCOUNTS.—Section 6693(a)(2) is amended by striking “and” at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting “, and”, and by inserting after subparagraph (F) the following new subparagraph:
(4) CLERICAL AMENDMENT.—
(A) The table of parts for subchapter F of chapter 1 is amended by adding at the end the following new item:
(b) Employer contributions.—
(1) IN GENERAL.—Part III of subchapter B of chapter 1 is amended by inserting after section 127 the following new section:
“(a) In general.—Gross income of an employee does not include amounts paid by the employer as a contribution to the Trump account of such employee or of any dependent of such employee if the amounts are paid or incurred pursuant to a program which is described in subsection (c).
“(b) Limitation.—
“(1) IN GENERAL.—The amount which may be excluded under subsection (a) with respect to any employee shall not exceed $2,500.
“(c) Trump account contribution program.—For purposes of this section, a Trump account contribution program is a separate written plan of an employer for the exclusive benefit of his employees to provide contributions to the Trump accounts of such employees or dependents of such employees which meets requirements similar to the requirements of paragraphs (2), (3), (6), (7), and (8) of section 129(d).”.
(2) CLERICAL AMENDMENT.—The table of sections for part III of subchapter B of chapter 1 is amended by inserting after the item relating to section 127 the following new item:
“Sec. 128. Employer contributions to Trump accounts.”.
(c) Certain contributions excluded from gross income.—
(1) IN GENERAL.—Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section:
(2) CLERICAL AMENDMENT.—The table of sections for part III of subchapter B is amended by inserting before the item relating to section 140 the following new item:
“Sec. 139J. Certain contributions to Trump accounts.”.
(d) Trump accounts contribution pilot program.—
(1) IN GENERAL.—Subchapter B of chapter 65 is amended by adding at the end the following new section:
“SEC. 6434. Trump accounts contribution pilot program.
“(a) In general.—In the case of an individual who makes an election under this section with respect to an eligible child of the individual, such eligible child shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year for which the election was made) in an amount equal to $1,000.
“(b) Refund of payment.—The amount treated as a payment under subsection (a) shall be paid by the Secretary to the Trump account with respect to which such eligible child is the account beneficiary.
“(c) Eligible child.—For purposes of this section, the term ‘eligible child ’ means a qualifying child (as defined in section 152(c))—
“(d) Election.—An election under this section shall be made at such time and in such manner as the Secretary shall provide.
“(e) Social security number required.—
“(1) IN GENERAL.—This section shall not apply to any taxpayer unless such individual includes with the election made under this section the social security number of the eligible child with respect to whom the election is made.
“(2) SOCIAL SECURITY NUMBER DEFINED.—For purposes of paragraph (1), the term ‘social security number’ shall have the meaning given such term in section 24(h)(7), determined by substituting ‘before the date of the election made under section 6434’ for ‘before the due date of such return’ in subparagraph (B) thereof.
“(f) Exception from reduction or offset.—Any payment made to any individual under this section shall not be—
“(g) Special rule regarding interest.—The period determined under section 6611(a) with respect to any payment under this section shall not begin before January 1, 2028.
“(h) Mirror Code possessions.—In the case of any possession of the United States with a mirror code tax system (as defined in section 24(k)), this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated.
(2) PENALTY FOR NEGLIGENT CLAIM OR FRAUDULENT CLAIM.—Part I of subchapter A of chapter 68 is amended by adding at the end the following new section:
“SEC. 6659. Improper claim for Trump account contribution pilot program credit.
(3) OMISSION OF CORRECT SOCIAL SECURITY NUMBER TREATED AS MATHEMATICAL OR CLERICAL ERROR.—Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking “and” at the end of subparagraph (Y), by striking the period at the end of subparagraph (Z) and inserting “, and”, and by inserting after subparagraph (Z) the following new subparagraph:
(4) CONFORMING AMENDMENTS.—
(A) The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item:
(B) The table of sections for part I of subchapter A of chapter 68 is amended by inserting after the item relating to section 6658 the following new item:
(a) Made permanent.—
(1) IN GENERAL.—Section 168(k)(2)(A) is amended by adding “and” at the end of clause (i), by striking “, and” at the end of clause (ii) and inserting a period, and by striking clause (iii).
(2) PROPERTY WITH LONGER PRODUCTION PERIODS.—Section 168(k)(2)(B) is amended—
(3) SELF-CONSTRUCTED PROPERTY.—Section 168(k)(2)(E) is amended by striking clause (i) and redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively.
(4) CERTAIN PLANTS.—Section 168(k)(5)(A) is amended by striking “planted before January 1, 2027, or is grafted before such date to a plant that has already been planted,” in the matter preceding clause (i) and inserting “planted or grafted”.
(5) CONFORMING AMENDMENTS.—
(A) Section 168(k)(2)(A)(ii) is amended by striking “clause (ii) of subparagraph (E)” and inserting “clause (i) of subparagraph (E)”.
(B) Section 168(k)(2)(C)(i) is amended by striking “and subclauses (II) and (III) of subparagraph (B)(i)”.
(C) Section 168(k)(2)(C)(ii) is amended by striking “subparagraph (B)(iii)” and inserting “subparagraph (B)(ii)”.
(D) Section 460(c)(6)(B) is amended by striking “which” and all that follows through the period and inserting “which has a recovery period of 7 years or less.”.
(b) 100 percent expensing.—
(1) IN GENERAL.—Section 168(k) is amended—
(2) CERTAIN PLANTS.—Section 168(k)(5)(A)(i) is amended by striking “the applicable percentage” and inserting “100 percent”.
(3) TRANSITIONAL ELECTION OF REDUCED PERCENTAGE.—Section 168(k)(10) is amended by striking subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting before subparagraph (C) (as so redesignated) the following new subparagraphs:
“(A) IN GENERAL.—In the case of qualified property placed in service by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (1)(A) shall be applied—
“(B) SPECIFIED PLANTS.—In the case of any specified plant planted or grafted by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (5)(A)(i) shall be applied by substituting ‘40 percent’ for ‘100 percent’.”.
(c) Effective date.—
(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to property acquired after January 19, 2025.
(2) SPECIFIED PLANTS.—Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants which are planted or grafted after January 19, 2025.
(a) In general.—Part VI of subchapter B of chapter 1 is amended by inserting after section 174 the following new section:
“(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 or experimental expenditures.—
“(1) IN GENERAL.—At the election of the taxpayer, made in accordance with regulations or other guidance provided by the Secretary, in the case of domestic research or experimental expenditures which would (but for subsection (a)) be chargeable to capital account but not chargeable to property of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion), subsection (a) shall not apply and the taxpayer shall—
“(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.
(b) Coordination with certain other provisions.—
(1) FOREIGN RESEARCH EXPENSES.—Section 174 is amended—
(A) in subsection (a)—
(2) RESEARCH CREDIT.—
(A) Section 41(d)(1)(A) is amended to read as follows:
(B) Section 280C(c)(1) is amended to read as follows:
(3) AMT ADJUSTMENT.—Section 56(b)(2) is amended—
(4) OPTIONAL 10-YEAR WRITEOFF.—Section 59(e)(2)(B) is amended by striking “section 174(a) (relating to research and experimental expenditures)” and inserting “section 174A(a) (relating to domestic research or experimental expenditures)”.
(5) QUALIFIED SMALL ISSUE BONDS.—Section 144(a)(4)(C)(iv) is amended by striking “174(a)” and inserting “174A(a)”.
(6) START-UP EXPENDITURES.—Section 195(c)(1) is amended by striking “or 174” in the last sentence and inserting “174, or 174A”.
(7) CAPITAL EXPENDITURES.—
(A) Section 263(a)(1)(B) is amended by inserting “or 174A” after “174”.
(B) Section 263A(c)(2) is amended by inserting “or 174A” after “174”.
(8) ACTIVE BUSINESS COMPUTER SOFTWARE ROYALTIES.—Section 543(d)(4)(A)(i) is amended by inserting “174A,” after “174,”.
(9) SOURCE RULES.—Section 864(g)(2) is amended—
(10) BASIS ADJUSTMENT.—Section 1016(a)(14) is amended by striking “deductions as deferred expenses under section 174(b)(1) (relating to research and experimental expenditures)” and inserting “deductions under section 174 or 174A(c)”.
(11) SMALL BUSINESS STOCK.—Section 1202(e)(2)(B) is amended by striking “which may be treated as research and experimental expenditures under section 174” and inserting “which are treated as foreign research or experimental expenditures under section 174 or domestic research or experimental expenditures under section 174A”.
(c) Change in method of accounting.—
(1) IN GENERAL.—The amendments made by subsection (a) shall be treated as a change in method of accounting for purposes of section 481 of the Internal Revenue Code of 1986 and—
(C) such change shall be applied only on a cut-off basis for any domestic research or experimental expenditures (as defined in section 174A(b) of such Code (as added by this section) and determined by applying the rules of section 174A(d) of such Code) paid or incurred in taxable years beginning after December 31, 2024, and no adjustments under section 481(a) shall be made.
(2) SPECIAL RULES.—In the case of a taxable year which begins after December 31, 2024, and ends before the date of the enactment of this Act—
(B) the change in method of accounting under paragraph (1) shall be applied on a modified cut-off basis, taking into account for purposes of section 481(a) of such Code only the domestic research or experimental expenditures (as defined in section 174A(b) of such Code (as added by this section) and determined by applying the rules of section 174A(d) of such Code) paid or incurred in such taxable year but not allowed as a deduction in such taxable year.
(d) Clerical amendment.—The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 174 the following new item:
(e) Effective date.—
(1) IN GENERAL.—Except as otherwise provided in this subsection or subsection (f)(1), the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2024.
(2) TREATMENT OF FOREIGN RESEARCH OR EXPERIMENTAL EXPENDITURES UPON DISPOSITION.—
(A) IN GENERAL.—The amendment by subsection (b)(1)(C)(ii) shall apply to property disposed, retired, or abandoned after May 12, 2025.
(B) NO INFERENCE.—The amendment made by subsection (b)(1)(C)(ii) shall not be construed to create any inference with respect to the proper application of section 174(d) of the Internal Revenue Code of 1986 with respect to taxable years beginning before May 13, 2025.
(3) COORDINATION WITH RESEARCH CREDIT.—The amendment made by subsection (b)(2)(B) shall apply to taxable years beginning after December 31, 2024.
(4) NO INFERENCE WITH RESPECT TO COORDINATION WITH RESEARCH CREDIT FOR PRIOR PERIODS.—The amendment made by subsection (b)(2)(B) shall not be construed to create any inference with respect to the proper application of section 280C(c) of the Internal Revenue Code of 1986 with respect to taxable years beginning before January 1, 2025.
(f) Transition rules.—
(1) ELECTION FOR RETROACTIVE APPLICATION BY CERTAIN SMALL BUSINESSES.—
(A) IN GENERAL.—At the election of an eligible taxpayer, paragraphs (1) and (3) of subsection (e) shall each be applied by substituting “December 31, 2021” for “December 31, 2024”. An election made under this subparagraph shall be made in such manner as the Secretary may provide and not later than the date that is 1 year after the date of the enactment of this Act. The taxpayer shall file an amended return for each taxable year affected by such election.
(B) ELIGIBLE TAXPAYER.—For purposes of this paragraph, the term “eligible taxpayer” means any taxpayer (other than a tax shelter prohibited from using the cash receipts and disbursements method of accounting under section 448(a)(3)) which meets the gross receipts test of section 448(c) for the first taxable year beginning after December 31, 2024.
(C) ELECTION TREATED AS CHANGE IN METHOD OF ACCOUNTING.—In the case of any taxpayer which elects the application of subparagraph (A)—
(D) ELECTION REGARDING COORDINATION WITH RESEARCH CREDIT.—An election under section 280C(c)(2) of the Internal Revenue Code of 1986 (or revocation of such election) for any taxable year beginning after December 31, 2021, by an eligible taxpayer making an election under subparagraph (A) shall not fail to be treated as timely made (or as made on the return) if made during the 1-year period beginning on the date of the enactment of this Act on an amended return for such taxable year.
(2) ELECTION TO DEDUCT CERTAIN UNAMORTIZED AMOUNTS PAID OR INCURRED IN TAXABLE YEARS BEGINNING BEFORE JANUARY 1, 2025.—
(A) IN GENERAL.—In the case of any domestic research or experimental expenditures (as defined in section 174A, as added by subsection (a)) which are paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025, and which was charged to capital account, a taxpayer may elect—
(B) CHANGE IN METHOD OF ACCOUNTING.—In the case of a taxpayer who makes an election under this paragraph—
(i) such taxpayer shall be treated as initiating a change in method of accounting for purposes of section 481 of the Internal Revenue Code of 1986 with respect to the expenditures to which the election applies,
(C) REGULATIONS.—The Secretary of the Treasury (or the Secretary’s delegate) shall publish such guidance or regulations as may be necessary to carry out the purposes of this paragraph, including regulations or guidance allowing for the deduction allowed under subparagraph (A) in the case of taxpayers with taxable years beginning after December 31, 2024, and ending before the date of the enactment of this Act.
(a) In general.—Section 163(j)(8)(A)(v) is amended by striking “in the case of taxable years beginning before January 1, 2022,”.
(b) Floor plan financing applicable to certain trailers and campers.—Section 163(j)(9)(C) is amended by adding at the end the following new flush sentence:
“Such term shall also include any trailer or camper which is designed to provide temporary living quarters for recreational, camping, or seasonal use and is designed to be towed by, or affixed to, a motor vehicle.”.
(c) 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 (or the Secretary's delegate) may prescribe such rules as are necessary or appropriate to provide for the application of the amendments made by this section in the case of any taxable year of less than 12 months that begins after December 31, 2024, and ends before the date of the enactment of this Act.
(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.”,
(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—
(b) No double benefit.—Section 280C(a) is amended—
(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).”.
(a) Exception to denial of deduction for business meals.—Section 274(o), as added by section 13304 of Public Law 115–97, is amended by striking “No deduction” and inserting “Except in the case of an expense described in subsection (e)(8) or (n)(2)(C), no deduction”.
(b) Meals provided on certain fishing boats and at certain fish processing facilities not subject to 50 percent limitation.—Section 274(n)(2)(C) of the Internal Revenue Code of 1986 is amended by striking “or” at the end of clause (iii) and by adding at the end the following new clause:
(a) In general.—Section 179(b) is amended—
(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—
(a) In general.—Section 168 is amended by adding at the end the following new subsection:
“(n) Special allowance for qualified production property.—
“(1) IN GENERAL.—In the case of any qualified production property of a taxpayer making an election under this subsection—
“(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—
For purposes of clause (ii), in the case of property with respect to which the taxpayer is a lessor, property used by a lessee shall not be considered to be used by the taxpayer as part of a qualified production activity.
“(B) SPECIAL RULE FOR CERTAIN PROPERTY NOT PREVIOUSLY USED IN QUALIFIED PRODUCTION ACTIVITIES.—
“(i) IN GENERAL.—In the case of property acquired by the taxpayer during the period described in subparagraph (A)(v), the requirements of clauses (iv) and (v) of subparagraph (A) shall be treated as satisfied if—
“(ii) WRITTEN BINDING CONTRACTS.—For purposes of determining under clause (i)—
“(C) EXCLUSION OF OFFICE SPACE, ETC.—The term ‘qualified production property’ shall not include that portion of any nonresidential real property which is used for offices, administrative services, lodging, parking, sales activities, research activities, software development or engineering activities, or other functions unrelated to the manufacturing, production, or refining of tangible personal property.
“(D) 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 if such property is not a food or beverage prepared in the same building as a retail establishment in which such property is sold.
“(G) SYNDICATION.—For purposes of subparagraph (A)(iv), rules similar to the rules of subsection (k)(2)(E)(iii) shall apply.
“(H) EXTENSION OF PLACED IN SERVICE DATE UNDER CERTAIN CIRCUMSTANCES.—The Secretary may extend the date under subparagraph (A)(vii) with respect to any property that meets the requirements of clauses (i) through (vi) of subparagraph (A) if the Secretary determines that an act of God (as defined in section 101(1) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980) prevents the taxpayer from placing such property in service before such date.
“(3) 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.—For purposes of subsections (k)(7), (l)(3)(D), and (m)(2)(B)(iii)—
“(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)—
“(6) ELECTION.—
“(A) IN GENERAL.—An election under this subsection for any taxable year shall—
“(i) specify the nonresidential real property subject to the election and the portion of such property designated under paragraph (2)(A)(vi), and
“(ii) except as otherwise provided by the Secretary, be made on the taxpayer's return of the tax imposed by this chapter for the taxable year.
Such election shall be made in such manner as the Secretary may prescribe by regulations or other guidance.
“(7) 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—
(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:
(a) In general.—Section 48D(a) is amended by striking “25 percent” and inserting “35 percent”.
(b) Treatment of ground leases.—Section 142(b)(1) is amended by adding at the end the following new subparagraph:
“(C) SPECIAL RULE FOR SPACEPORT GROUND LEASES.—For purposes of subparagraph (A), spaceport property located on land leased by a governmental unit from the United States shall not fail to be treated as owned by a governmental unit if the requirements of this paragraph are met by the lease and any subleases of the property.”.
(c) Definition of spaceport.—Section 142 is amended by adding at the end the following new subsection:
“(p) Spaceport.—
“(1) IN GENERAL.—For purposes of subsection (a)(1), the term ‘spaceport’ means any facility located at or in close proximity to a launch site or reentry site used for—
“(2) ADDITIONAL TERMS.—For purposes of paragraph (1)—
“(A) SPACE CARGO.—The term ‘space cargo’ includes satellites, scientific experiments, other property transported into space, and any other type of payload, whether or not such property returns from space.
“(C) OTHER TERMS.—The terms ‘launch site’, ‘crew’, ‘space flight participant’, ‘launch services’, ‘launch vehicle’, ‘payload’, ‘reentry services’, ‘reentry site’, a ‘reentry vehicle’ shall have the respective meanings given to such terms by section 50902 of title 51, United States Code (as in effect on the date of enactment of this subsection).
(d) Exception from federally guaranteed bond prohibition.—Section 149(b)(3) is amended by adding at the end the following new subparagraph:
“(F) EXCEPTION FOR SPACEPORTS.—A bond shall not be treated as federally guaranteed merely because of the payment of rent, user fees, or other charges by the United States (or any agency or instrumentality thereof) in exchange for the use of the spaceport by the United States (or any agency or instrumentality thereof).”.
(e) Conforming amendment.—The heading for section 142(c) is amended by inserting “Spaceports,” after “Airports,”.
(a) Rules for allocation of certain deductions to foreign source net CFC tested income for purposes of foreign tax credit limitation.—Section 904(b) is amended by adding at the end the following new paragraph:
“(5) DEDUCTIONS TREATED AS ALLOCABLE TO FOREIGN SOURCE NET CFC TESTED INCOME.—Solely for purposes of the application of subsection (a) with respect to amounts described in subsection (d)(1)(A), the taxpayer’s taxable income from sources without the United States shall be determined by allocating and apportioning—
“(A) any deduction allowed under section 250(a)(1)(B) (and any deduction allowed under section 164(a)(3) for taxes imposed on amounts described in section 250(a)(1)(B)) to such income,
“(C) any other deduction to such income only if such deduction is directly allocable to such income.
Any amount or deduction which would (but for subparagraphs (B) and (C)) have been allocated or apportioned to such income shall only be allocated or apportioned to income which is from sources within the United States.”.
(b) Other modifications.—
(1) Section 904(d)(2)(H)(i) is amended by striking “paragraph (1)(B)” and inserting “paragraph (1)(D)”.
(2) Section 904(d)(4)(C)(ii) is amended by striking “paragraph (1)(A)” and inserting “paragraph (1)(C)”.
(3) Section 951A(f)(1)(A) is amended by striking “904(h)(1)” and inserting “904(h)”.
(a) Increase in deemed paid credit.—
(1) IN GENERAL.—Section 960(d)(1) is amended by striking “80 percent” and inserting “90 percent”.
(2) GROSS UP FOR DEEMED PAID FOREIGN TAX CREDIT.—Section 78 is amended—
(b) Disallowance of foreign tax credit with respect to distributions of previously taxed net CFC tested income.—Section 960(d) is amended by adding at the end the following new paragraph:
“(4) DISALLOWANCE OF FOREIGN TAX CREDIT WITH RESPECT TO DISTRIBUTIONS OF PREVIOUSLY TAXED NET CFC TESTED INCOME.—No credit shall be allowed under section 901 for 10 percent of any foreign income taxes paid or accrued (or deemed paid under subsection (b)(1)) with respect to any amount excluded from gross income under section 959(a) by reason of an inclusion in gross income under section 951A(a).”.
(c) Effective dates.—
(1) IN GENERAL.—The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2025.
(2) DISALLOWANCE.—The amendment made by subsection (b) shall apply to foreign income taxes paid or accrued (or deemed paid under section 960(b)(1) of the Internal Revenue Code of 1986) with respect to any amount excluded from gross income under section 959(a) of such Code by reason of an inclusion in gross income under section 951A(a) of such Code after June 28, 2025.
(a) In general.—Section 904(b), as amended by section 70311, is amended by adding at the end the following new paragraph:
“(6) SOURCE RULES FOR CERTAIN INVENTORY PRODUCED IN THE UNITED STATES AND SOLD THROUGH FOREIGN BRANCHES.—For purposes of this section, if a United States person maintains an office or other fixed place of business in a foreign country (determined under rules similar to the rules of section 864(c)(5)), the portion of income which—
“(A) is from the sale or exchange outside the United States of inventory property (within the meaning of section 865(i)(1))—
“(B) is attributable (determined under rules similar to the rules of section 864(c)(5)) to such office or other fixed place of business,
shall be treated as from sources without the United States, except that the amount so treated shall not exceed 50 percent of the income from the sale or exchange of such inventory property.”.
(a) In general.—Section 250(a) is amended—
(a) Sales or other dispositions of certain property.—
(1) IN GENERAL.—Section 250(b)(3)(A)(i) is amended—
(2) CONFORMING AMENDMENT.—Section 250(b)(5)(E) is amended by inserting “(other than paragraph (3)(A)(i)(VII))” after “For purposes of this subsection”.
(3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to sales or other dispositions (including pursuant to deemed sales or other deemed dispositions or a transaction subject to section 367(d) of the Internal Revenue Code of 1986) occurring after June 16, 2025.
(b) Expense apportionment limited to properly allocable expenses.—
(1) IN GENERAL.—Section 250(b)(3)(A)(ii) is amended to read as follows:
(a) Taxation of net CFC tested income.—
(1) IN GENERAL.—Section 951A(a) is amended by striking “global intangible low-taxed income” and inserting “net CFC tested income”.
(2) REPEAL OF TAX-FREE DEEMED RETURN ON FOREIGN INVESTMENTS.—Section 951A, as amended by the preceding provisions of this Act, is amended by striking subsections (b) and (d) and by redesignating subsections (c), (e), and (f) as subsections (b), (c), and (d), respectively.
(3) CONFORMING AMENDMENTS.—
(A) (i) Section 250 is amended by striking “global intangible low-taxed income” each place it appears in subsections (a)(1)(B)(i), (a)(2), and (b)(3)(A)(i)(II) and inserting “net CFC tested income”.
(B) Section 951A(c)(1), as redesignated by paragraph (2), is amended by striking “subsections (b), (c)(1)(A), and (c)(1)(B)” and inserting “subsections (b)(1)(A) and (b)(1)(B)”.
(C) Section 951A(d), as redesignated by paragraph (2), is amended—
(D) Section 960(d)(2) is amended—
(E) (i) The heading for section 951A is amended by striking “Global Intangible Low-Taxed Income” and inserting “Net CFC Tested Income”.
(ii) The item relating to section 951A in the table of sections for subpart F of part III of subchapter N of chapter 1 is amended by striking “Global intangible low-taxed income” and inserting “Net CFC tested income”.
(b) Deduction for foreign-derived deduction eligible income.—
(1) IN GENERAL.—Section 250(a)(1)(A) is amended by striking “foreign-derived intangible income” and inserting “foreign-derived deduction eligible income”.
(2) CONFORMING AMENDMENTS.—
(A) Section 250(a)(2) is amended by striking “foreign-derived intangible income” each place it appears and inserting “foreign-derived deduction eligible income”.
(B) Section 250(b), as amended by subsection (a), is amended—
(ii) by redesignating paragraphs (4) and (5) as paragraphs (1) and (2), respectively, and by moving such paragraphs before paragraph (3),
(C) (i) The heading for section 250 is amended by striking “intangible” in the heading thereof and inserting “deduction eligible”.
(ii) The heading for section 172(d)(9) is amended by striking “intangible” and inserting “deduction eligible”.
(iii) The item relating to section 250 in the table of sections for part VIII of subchapter B of chapter 1 is amended by striking “intangible” and inserting “deduction eligible”.
(a) In general.—Section 59A(b) is amended—
(b) Conforming amendments.—
(1) Section 59A(b)(1) is amended by striking “Except as provided in paragraphs (2) and (3)” and inserting “Except as provided in paragraph (2)”.
(2) Section 59A(b)(2), as redesignated by subsection (a)(2), is amended by striking “the percentage otherwise in effect under paragraphs (1)(A) and (2)(A) shall each be increased” and inserting “the percentages otherwise in effect under paragraph (1)(A) shall be increased”.
(3) Section 59A(e)(1)(C) is amended by striking “in the case of a taxpayer described in subsection (b)(3)(B)” and inserting “in the case of a taxpayer described in subsection (b)(2)(B)”.
(c) Other modifications.—
(1) Section 59A(b)(2)(B)(ii), as redesignated by subsection (a)(2), is amended by striking “registered securities dealer” and inserting “securities dealer registered”.
(2) Section 59A(h)(2)(B) is amended by striking “section 6038B(b)(2)” and inserting “section 6038A(b)(2)”.
(3) Section 59A(i)(2) is amended—
(a) In general.—Section 163(j) is amended by redesignating paragraphs (10) and (11) as paragraphs (11) and (12) and by inserting after paragraph (9) the following:
“(10) COORDINATION WITH INTEREST CAPITALIZATION PROVISIONS.—
“(A) IN GENERAL.—In applying this subsection—
“(B) AMOUNT ALLOWED APPLIED FIRST TO CAPITALIZED INTEREST.—The amount allowed after taking into account the limitation described in paragraph (1)—
“(C) TREATMENT OF DISALLOWED INTEREST CARRIED FORWARD.—No portion of any business interest carried forward under paragraph (2) from any taxable year to any succeeding taxable year shall, for purposes of this title (including any interest capitalization provision which previously applied to such portion) be treated as interest to which an interest capitalization provision applies.
(b) Certain capitalized interest not treated as business interest.—Section 163(j)(5) is amended by adding at the end the following new sentence: “Such term shall not include any interest which is capitalized under section 263(g) or 263A(f).”.
(c) Regulatory authority.—Section 163(j), as amended by subsection (a), is amended by redesignating paragraphs (11) and (12) as paragraphs (12) and (13) and by inserting after paragraph (10) the following:
“(11) REGULATORY AUTHORITY.—The Secretary shall issue such regulations or guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or guidance to determine which business interest is taken into account under this subsection and section 59A(c)(3).”.
(a) In general.—Subparagraph (A) of section 163(j)(8) is amended—
(a) In general.—Section 954(c)(6)(C) is amended by striking “and before January 1, 2026,”.
(a) In general.—Section 898(c) is amended by striking paragraph (2) and redesignating paragraph (3) as paragraph (2).
(b) Effective date.—The amendments made by this section shall apply to taxable years of specified foreign corporations beginning after November 30, 2025.
(c) Transition rule.—
(1) IN GENERAL.—In the case of a corporation that is a specified foreign corporation as of November 30, 2025, such corporation’s first taxable year beginning after such date shall end at the same time as the first required year (within the meaning of section 898(c)(1) of the Internal Revenue Code of 1986) ending after such date. If any specified foreign corporation is required by the amendments made by this section to change its taxable year for its first taxable year beginning after November 30, 2025—
(b) Foreign controlled United States shareholders.—Subpart F of part III of subchapter N of chapter 1 is amended by inserting after section 951A the following new section:
“SEC. 951B. Amounts included in gross income of foreign controlled United States shareholders.
“(a) In general.—In the case of any foreign controlled United States shareholder of a foreign controlled foreign corporation—
“(1) this subpart (other than sections 951A, 951(b), and 957) shall be applied with respect to such shareholder (separately from, and in addition to, the application of this subpart without regard to this section)—
“(b) Foreign controlled United States shareholder.—For purposes of this section, the term ‘foreign controlled United States shareholder’ means, with respect to any foreign corporation, any United States person which would be a United States shareholder with respect to such foreign corporation if—
“(c) Foreign controlled foreign corporation.—For purposes of this section, the term ‘foreign controlled foreign corporation’ means a foreign corporation, other than a controlled foreign corporation, which would be a controlled foreign corporation if section 957(a) were applied—
“(d) Regulations.—The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance—
(c) Clerical amendment.—The table of sections for subpart F of part III of subchapter N of chapter 1 is amended by inserting after the item relating to section 951A the following new item:
(d) Effective date.—The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025.
(e) Special rule.—
(1) IN GENERAL.—Except to the extent provided by the Secretary of the Treasury (or the Secretary's delegate), the effective date of any amendment to the Internal Revenue Code of 1986 shall be applied by treating references to United States shareholders as including references to foreign controlled United States shareholders, and by treating references to controlled foreign corporations as including references to foreign controlled foreign corporations.
(2) DEFINITIONS.—Any term used in paragraph (1) which is used in subpart F of part III of subchapter N of chapter 1 of the Internal Revenue Code of 1986 (as amended by this section) shall have the meaning given such term in such subpart.
(a) In general.—Subsection (a) of section 951 is amended to read as follows:
“(a) Amounts included.—
“(1) IN GENERAL.—If a foreign corporation is a controlled foreign corporation at any time during a taxable year of the foreign corporation (in this subsection referred to as the ‘CFC year’)—
“(A) each United States shareholder which owns (within the meaning of section 958(a)) stock in such corporation on any day during the CFC year shall include in gross income such shareholder's pro rata share (determined under paragraph (2)) of the corporation’s subpart F income for the CFC year, and
“(B) each United States shareholder which owns (within the meaning of section 958(a)) stock in such corporation on the last day, in the CFC year, on which such corporation is a controlled foreign corporation shall include in gross income the amount determined under section 956 with respect to such shareholder for the CFC year (but only to the extent not excluded from gross income under section 959(a)(2)).
“(2) PRO RATA SHARE OF SUBPART F INCOME.—A United States shareholder's pro rata share of a controlled foreign corporation's subpart F income for a CFC year shall be the portion of such income which is attributable to—
“(3) TAXABLE YEAR OF INCLUSION.—Any amount required to be included in gross income by a United States shareholder under paragraph (1) with respect to a CFC year shall be included in gross income for the shareholder's taxable year which includes the last day on which the shareholder owns (within the meaning of section 958(a)) stock in the controlled foreign corporation during such CFC year.
“(4) REGULATORY AUTHORITY.—The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance allowing taxpayers to elect, or requiring taxpayers, to close the taxable year of a controlled foreign corporation upon a direct or indirect disposition of stock of such corporation.”.
(b) Coordination with section 951A.—
(1) TESTED INCOME.—Section 951A(b), as redesignated by section 70323(a)(2), is amended—
(2) PRO RATA SHARE.—Section 951A(c), as redesignated by section 70323(a)(2), is amended—
(c) Effective dates.—
(1) IN GENERAL.—The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025.
(2) TRANSITION RULE FOR DIVIDENDS.—Except to the extent provided by the Secretary of the Treasury (or the Secretary's delegate), a dividend paid (or deemed paid) by a controlled foreign corporation shall not be treated as a dividend for purposes of applying section 951(a)(2)(B) of the Internal Revenue Code of 1986 (as in effect before the amendments made by this section) if—
(A) such dividend—
(i) was paid (or deemed paid) on or before June 28, 2025, during the taxable year of such controlled foreign corporation which includes such date and the United States shareholder described in section 951(a)(1) of such Code (as so in effect) did not own (within the meaning of section 958(a) of such Code) the stock of such controlled foreign corporation during the portion of such taxable year on or before June 28, 2025, or
(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).
(c) Eligible small business.—Section 45F(c) is amended by adding at the end the following new paragraph:
(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:
(f) Regulations and guidance.—Section 45F is amended by adding at the end the following new subsection:
(a) In general.—Section 23(a) is amended by adding at the end the following new paragraph:
(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—
“(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.
(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”.
(a) In general.—Section 23(d)(3) is amended—
(a) In general.—Section 129(a)(2)(A) is amended by striking “$5,000 ($2,500” and inserting “$7,500 ($3,750”.
(a) In general.—Paragraph (2) of section 21(a) is amended to read as follows:
“(2) APPLICABLE PERCENTAGE DEFINED.—For purposes of paragraph (1), the term ‘applicable percentage’ means 50 percent—
(a) Allowance of credit for contributions of individuals to scholarship granting organizations.—
(1) IN GENERAL.—Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25E the following new section:
“SEC. 25F. Qualified elementary and secondary education scholarships.
“(a) Allowance of credit.—In the case of an individual who is a citizen or resident of the United States (within the meaning of section 7701(a)(9)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the aggregate amount of qualified contributions made by the taxpayer during the taxable year.
“(b) Limitations.—
“(c) Definitions.—For purposes of this section—
“(1) COVERED STATE.—The term ‘covered State’ means one of the States, or the District of Columbia, that, for a calendar year, voluntarily elects to participate under this section and to identify scholarship granting organizations in the State, in accordance with subsection (g).
“(2) ELIGIBLE STUDENT.—The term ‘eligible student’ means an individual who—
“(3) QUALIFIED CONTRIBUTION.—The term ‘qualified contribution’ means a charitable contribution of cash to a scholarship granting organization that uses the contribution to fund scholarships for eligible students solely within the State in which the organization is listed pursuant to subsection (g).
“(4) QUALIFIED ELEMENTARY OR SECONDARY EDUCATION EXPENSE.—The term ‘qualified elementary or secondary education expense’ means any expense of an eligible student which is described in section 530(b)(3)(A).
“(d) Requirements for scholarship granting organizations.—
“(1) IN GENERAL.—An organization meets the requirements of this subsection if—
“(A) such organization provides scholarships to 10 or more students who do not all attend the same school,
“(B) such organization spends not less than 90 percent of the income of the organization on scholarships for eligible students,
“(C) such organization does not provide scholarships for any expenses other than qualified elementary or secondary education expenses,
“(E) such organization does not earmark or set aside contributions for scholarships on behalf of any particular student, and
“(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.
“(g) State list of scholarship granting organizations.—
“(1) LIST.—
“(A) IN GENERAL.—Not later than January 1 of each calendar year (or, with respect to the first calendar year for which this section applies, as early as practicable), a State that voluntarily elects to participate under this section shall provide to the Secretary a list of the scholarship granting organizations that meet the requirements described in subsection (c)(5) and are located in the State.
(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:
(b) Exclusion from gross income for scholarships for qualified elementary or secondary education expenses of eligible students.—
(1) IN GENERAL.—Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section:
“SEC. 139K. Scholarships for qualified elementary or secondary education expenses of eligible students.
“(a) In general.—In the case of an individual, gross income shall not include any amounts provided to such individual or any dependent of such individual pursuant to a scholarship for qualified elementary or secondary education expenses of an eligible student which is provided by a scholarship granting organization.
(2) CONFORMING AMENDMENT.—The table of sections for part III of subchapter B of chapter 1 is amended by inserting before the item relating to section 140 the following new item:
“Sec. 139K. Scholarships for qualified elementary or secondary education expenses of eligible students. ”.
(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—
(a) In general.—
(1) IN GENERAL.—Section 529(c)(7) is amended to read as follows:
“(7) TREATMENT OF ELEMENTARY AND SECONDARY TUITION.—Any reference in this section 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:
“(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—
(b) Increase in limitation.—
(1) IN GENERAL.—The last sentence of section 529(e)(3) is amended by striking “$10,000” and inserting “$20,000”.
(a) In general.—Section 529(e)(3) is amended by adding at the end the following new subparagraph:
(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),
“(2) RECOGNIZED POSTSECONDARY CREDENTIAL PROGRAM.—The term ‘recognized postsecondary credential program’ means any program to obtain a recognized postsecondary credential if—
“(A) such program is included on a State list prepared under section 122(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(d)),
“(B) such program is listed in the public directory of the Web Enabled Approval Management System (WEAMS) of the Veterans Benefits Administration, or successor directory such program,
“(C) an examination (developed or administered by an organization widely recognized as providing reputable credentials in the occupation) is required to obtain or maintain such credential and such organization recognizes such program as providing training or education which prepares individuals to take such examination, or
“(3) RECOGNIZED POSTSECONDARY CREDENTIAL.—The term ‘recognized postsecondary credential’ means—
“(A) any postsecondary employment credential that is industry recognized and is—
“(i) any postsecondary employment credential issued by a program that is accredited by the Institute for Credentialing Excellence, the National Commission on Certifying Agencies, or the American National Standards Institute,
“(B) any certificate of completion of an apprenticeship that is registered and certified with the Secretary of Labor under the Act of August 16, 1937 (commonly known as the ‘National Apprenticeship Act’; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),
“(C) any occupational or professional license issued or recognized by a State or the Federal Government (and any certification that satisfies a condition for obtaining such a license), and
“(D) any recognized postsecondary credential as defined in section 3(52) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(52)), provided through a program described in paragraph (2)(A).”.
(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 of at least $500,000, and not in excess of $750,000,
“(c) Applicable educational institution.—For purposes of this subchapter, the term ‘applicable educational institution’ means an eligible educational institution (as defined in section 25A(f)(2))—
“(d) Student adjusted endowment.—For purposes of this section, the term ‘student adjusted endowment’ means, with respect to any institution for any taxable year—
“(e) Determination of number of students.—For purposes of subsections (c) and (d), the number of students of an institution (including for purposes of determining the number of students at a particular location) shall be based on the daily average number of full-time students attending such institution (with part-time students taken into account on a full-time student equivalent basis).
“(f) Net investment income.—For purposes of this section—
“(1) IN GENERAL.—Net investment income shall be determined under rules similar to the rules of section 4940(c).
“(2) OVERRIDE OF CERTAIN REGULATORY EXCEPTIONS.—
“(A) STUDENT LOAN INTEREST.—Net investment income shall be determined by taking into account any interest income from a student loan made by the applicable educational institution (or any related organization) as gross investment income.
“(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.
“(g) Assets and net investment income of related organizations.—
“(1) IN GENERAL.—For purposes of subsections (d) and (f), assets and net investment income of any related organization with respect to an educational institution shall be treated as assets and net investment income, respectively, of the educational institution, except that—
“(A) no such amount shall be taken into account with respect to more than 1 educational institution, and
“(B) unless such organization is controlled by such institution or is described in section 509(a)(3) with respect to such institution for the taxable year, assets and net investment income which are not intended or available for the use or benefit of the educational institution shall not be taken into account.
“(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)—
(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 of an applicable tax-exempt organization (or any predecessor of such an organization) and any former employee of such an organization (or predecessor) who was such an employee during any taxable year beginning after December 31, 2016.”.
(a) Decennial designations.—
(1) DETERMINATION PERIOD.—Section 1400Z-1(c)(2)(B) is amended by striking “beginning on the date of the enactment of the Tax Cuts and Jobs Act” and inserting “beginning on the decennial determination date”.
(2) DECENNIAL DETERMINATION DATE.—Section 1400Z-1(c)(2) is amended by adding at the end the following new subparagraph:
(3) REPEAL OF SPECIAL RULE FOR PUERTO RICO.—Section 1400Z-1(b) is amended by striking paragraph (3).
(b) Qualification for designations.—
(1) DETERMINATION OF LOW-INCOME COMMUNITIES.—Section 1400Z-1(c) is amended by striking all that precedes paragraph (2) and inserting the following: “(c) Other definitions.—For purposes of this section— “(1) LOW-INCOME COMMUNITIES.—The term ‘low-income community’ means any population census tract if— “(A) such population census tract has a median family income that—
(2) REPEAL OF RULE FOR CONTIGUOUS CENSUS TRACTS.—Section 1400Z-1 is amended by striking subsection (e) and by redesignating subsection (f) as subsection (e).
(3) PERIOD FOR WHICH DESIGNATION IS IN EFFECT.—Section 1400Z-1(e), as redesignated by paragraph (2), is amended to read as follows: “(e) Period for which designation is in effect.— “(1) IN GENERAL.—A designation as a qualified opportunity zone shall remain in effect for the period beginning on the applicable start date and ending on the day before the date that is 10 years after the applicable start date. “(2) APPLICABLE START DATE.—For purposes of this section, the term ‘applicable start date’ means, with respect to any qualified opportunity zone designated under this section, the January 1 following the date on which such qualified opportunity zone was certified and designated by the Secretary under subsection (b)(1)(B).”.
(4) EFFECTIVE DATE.—The amendments made by this subsection shall apply to areas designated under section 1400Z-1 of the Internal Revenue Code of 1986 after the date of the enactment of this Act.
(c) Application of special rules for capital gains.—
(1) REPEAL OF SUNSET ON ELECTION.—Section 1400Z-2(a)(2) is amended to read as follows:
(2) MODIFICATION OF RULES FOR DEFERRAL OF GAIN.—Section 1400Z-2(b) is amended to read as follows: “(b) Deferral of gain invested in opportunity zone property.— “(1) YEAR OF INCLUSION.—Gain to which subsection (a)(1)(B) applies shall be included in gross income in the taxable year which includes the earlier of— “(2) AMOUNT INCLUDIBLE.— “(A) IN GENERAL.—The amount of gain included in gross income under subsection (a)(1)(B) shall be the excess of— “(B) DETERMINATION OF BASIS.— “(i) IN GENERAL.—Except as otherwise provided in this subparagraph or subsection (c), the taxpayer’s basis in the investment shall be zero. “(ii) INCREASE FOR GAIN RECOGNIZED UNDER SUBSECTION (a)(1)(B).—The basis in the investment shall be increased by the amount of gain recognized by reason of subsection (a)(1)(B) with respect to such investment. “(iii) INVESTMENTS HELD FOR 5 YEARS.— “(I) IN GENERAL.—In the case of any investment held for at least 5 years, the basis of such investment shall be increased by an amount equal to 10 percent (30 percent in the case of any investment in a qualified rural opportunity fund) of the amount of gain deferred by reason of subsection (a)(1)(A). “(C) QUALIFIED RURAL OPPORTUNITY FUND.—For purposes of subparagraph (B)(iii)— “(i) QUALIFIED RURAL OPPORTUNITY FUND.—The term ‘qualified rural opportunity fund’ means a qualified opportunity fund that holds at least 90 percent of its assets in qualified opportunity zone property which— “(I) is qualified opportunity zone business property substantially all of the use of which, during substantially all of the fund's holding period for such property, was in a qualified opportunity zone comprised entirely of a rural area, or “(II) is qualified opportunity zone stock, or a qualified opportunity zone partnership interest, in a qualified opportunity zone business in which substantially all of the tangible property owned or leased is qualified opportunity zone business property described in subsection (d)(3)(A)(i) and substantially all the use of which is in a qualified opportunity zone comprised entirely of a rural area. For purposes of the preceding sentence, property held in the fund shall be measured under rules similar to the rules of subsection (d)(1).
(3) SPECIAL RULE FOR INVESTMENTS HELD AT LEAST 10 YEARS.—Section 1400Z-2(c) is amended by striking “makes an election under this clause” and all that follows and inserting “makes an election under this subsection, the basis of such investment shall be equal to—
(4) DETERMINATION OF QUALIFIED OPPORTUNITY ZONE PROPERTY.—
(A) QUALIFIED OPPORTUNITY ZONE BUSINESS PROPERTY.—Section 1400Z-2(d)(2)(D)(i)(I) is amended by striking “December 31, 2017” and inserting “the applicable start date (as defined in section 1400Z-1(e)(2)) with respect to the qualified opportunity zone described in subclause (III)”.
(B) QUALIFIED OPPORTUNITY ZONE STOCK AND PARTNERSHIP INTERESTS.—Section 1400Z-2(d)(2) is amended—
(i) by striking “December 31, 2017,” each place it appears in subparagraphs (B)(i)(I) and (C)(i) and inserting “the applicable date”, and
(ii) by adding at the end the following new subparagraph:
“(E) APPLICABLE DATE.—For purposes of this subparagraph, the term ‘applicable date’ means, with respect to any corporation or partnership which is a qualified opportunity zone business, the earliest date described in subparagraph (D)(i)(I) with respect to the qualified opportunity zone business property held by such qualified opportunity zone business.”.
(C) SPECIAL RULE FOR IMPROVEMENT OF EXISTING STRUCTURES IN RURAL AREAS.—Section 1400Z–2(d)(2)(D)(ii) is amended by inserting “(50 percent of such adjusted basis in the case of property in a qualified opportunity zone comprised entirely of a rural area (as defined in subsection (b)(2)(C)(ii))” after “the adjusted basis of such property”.
(5) EFFECTIVE DATES.—
(A) IN GENERAL.—Except as otherwise provided in this paragraph, the amendments made by this subsection shall apply to amounts invested in qualified opportunity funds after December 31, 2026.
(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—
“(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 tract or population census tracts in which the qualified opportunity zone business property of such corporation or partnership is located,
“(D) the amount of the investment in such stock or partnership interest as of each date described in section 1400Z–2(d)(1),
“(E) the value of tangible property held by such corporation or partnership on each such date which is owned by such corporation or partnership,
“(F) the value of tangible property held by such corporation or partnership on each such date which is leased by such corporation or partnership,
“(G) the approximate number of residential units (if any) for any real property held by such corporation or partnership, and
“(H) the approximate average monthly number of full-time equivalent employees of such corporation or partnership for the year (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such corporation or partnership as determined appropriate by the Secretary,
“(6) with respect to the items of qualified opportunity zone business property held by the qualified opportunity fund—
“(A) the North American Industry Classification System (NAICS) code that applies to the trades or businesses in which such property is held,
“(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,
“(c) Statement required to be furnished to investors.—Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return by reason of subsection (b)(8) (at such time and in such manner as the Secretary may prescribe) a written statement showing—
“(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.
“(e) Application to qualified rural opportunity funds.—Every qualified rural opportunity fund (as defined in section 1400Z–2(b)(2)(C)) shall file the annual return required under subsection (a), and the statements required under subsection (c), applied—
“(1) by substituting ‘qualified rural opportunity’ for ‘qualified opportunity’ each place it appears,
“(2) by substituting ‘section 1400Z–2(b)(2)(C)’ for ‘section 1400Z–2(d)(1)’ each place it appears, and
“(3) by treating any reference (after the application of paragraph (1)) to qualified rural opportunity zone stock, a qualified rural opportunity zone partnership interest, a qualified rural opportunity zone business, or qualified opportunity zone business property as stock, an interest, a business, or property, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z–2(b)(2)(C)(i).
“SEC. 6039L. 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 at such time, in such manner, and setting forth such information as the Secretary may by regulations prescribe for purposes of enabling such qualified opportunity fund to meet the requirements of section 6039K(b)(5).
“(b) Applicable qualified opportunity zone business.—For purposes of subsection (a), the term ‘applicable qualified opportunity zone business’ means any qualified opportunity zone business—
“(c) Other terms.—Any term used in this section which is also used in subchapter Z of chapter 1 shall have the meaning given such term under such subchapter.
“(d) Application to qualified rural opportunity businesses.—Every applicable qualified rural opportunity zone business (as defined in subsection (b) determined after application of the substitutions described in this sentence) shall furnish the written statement required under subsection (a), applied—
“(1) by substituting ‘qualified rural opportunity’ for ‘qualified opportunity’ each place it appears, and
“(2) by treating any reference (after the application of paragraph (1)) to qualified rural opportunity zone stock, a qualified rural opportunity zone partnership interest, or a qualified rural opportunity zone business as stock, an interest, or a business, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z–2(b)(2)(C)(i).”.
(2) PENALTIES.—
(A) IN GENERAL.—Part II of subchapter B of chapter 68 is amended by inserting after section 6725 the following new section:
“SEC. 6726. Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds.
“(a) In general.—If any person required to file a return under section 6039K fails to file a complete and correct return under such section in the time and in the manner prescribed therefor, such person shall pay a penalty of $500 for each day during which such failure continues.
“(b) Limitation.—
“(c) Penalty in cases of intentional disregard.—If a failure described in subsection (a) is due to intentional disregard, then—
“(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—
“(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) INFORMATION REQUIRED TO BE SENT TO OTHER TAXPAYERS.—Section 6724(d)(2), as amended by the preceding provisions of this Act, is amended—
(iii) by inserting after subparagraph (MM) the following new subparagraphs:
“(NN) section 6039K(c) (relating to disposition of qualified opportunity fund investments), or
“(OO) section 6039L (relating to information required from certain qualified opportunity zone businesses and qualified rural opportunity zone businesses).”.
(3) ELECTRONIC FILING.—Section 6011(e) is amended by adding at the end the following new paragraph:
(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:
(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:
(e) Secretary reporting of data on opportunity zone and rural opportunity zone tax incentives.—
(1) IN GENERAL.—In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2028, for necessary expenses of the Internal Revenue Service to make the reports described in paragraph (2).
(2) REPORTS.—As soon as practical after the date of the enactment of this Act, and annually thereafter, the Secretary of the Treasury, or the Secretary's delegate (referred to in this section as the “Secretary”) shall make publicly available a report on qualified opportunity funds.
(3) INFORMATION INCLUDED.—The report required under paragraph (2) shall include, to the extent available, the following information:
(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.
(4) ADDITIONAL INFORMATION.—
(A) IN GENERAL.—Beginning with the report submitted under paragraph (2) for the 6th year after the date of the enactment of this Act, the Secretary shall include in such report the impacts and outcomes of a designation of a population census tract as a qualified opportunity zone as measured by economic indicators, such as job creation, poverty reduction, new business starts, and other metrics as determined by the Secretary.
(B) SEMI-DECENNIAL INFORMATION.—
(i) IN GENERAL.—In the case of any report submitted under paragraph (2) in the 6th year or the 11th year after the date of the enactment of this Act, the Secretary shall include the following information:
(I) For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) between the 5-year period ending on the date of the enactment of Public Law 115–97 and the most recent 5-year period for which data is available.
(II) For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) for the most recent 5-year period for which data is available between such population census tracts and similar population census tracts that were not designated as a qualified opportunity zone.
(ii) CONTROL GROUPS.—For purposes of clause (i), the Secretary may combine population census tracts into such groups as the Secretary determines appropriate for purposes of making comparisons.
(iii) FACTORS LISTED.—The factors listed in this clause are the following:
(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.
(V) Demographic information on residents of the population census tract, including age, income, education, race, and employment.
(5) PROTECTION OF IDENTIFIABLE RETURN INFORMATION.—In making reports required under this subsection, the Secretary—
(6) DEFINITIONS.—Any term used in this subsection which is also used in subchapter Z of chapter 1 of the Internal Revenue Code of 1986 shall have the meaning given such term under such subchapter.
(7) REPORTS ON QUALIFIED RURAL OPPORTUNITY FUNDS.—The Secretary shall make publicly available, with respect to qualified rural opportunity funds, separate reports as required under this subsection, applied—
(A) by substituting “qualified rural opportunity” for “qualified opportunity” each place it appears,
(C) by treating any reference (after the application of subparagraph (A)) to qualified rural opportunity zone stock, qualified rural opportunity zone partnership interest, qualified rural opportunity zone business, or qualified opportunity zone business property as stock, interest, business, or property, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z–2(b)(2)(C)(i) of the Internal Revenue Code of 1986.
(a) Permanent State housing credit ceiling increase for low-income housing credit.—
(1) IN GENERAL.—Section 42(h)(3)(I) is amended—
(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
(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.
(a) In general.—Section 45D(f)(1)(H) is amended by striking “for for each of calendar years 2020 through 2025” and inserting “ for each calendar year after 2019”.
(b) Carryover of unused limitation.—Section 45D(f)(3) is amended—
(2) by striking the second sentence and inserting the following:
“(B) LIMITATION.—No amount may be carried under subparagraph (A) to any calendar year afer the fifth calendar year after the calendar year in which the excess described in such subparagraph occurred. For purposes of this subparagraph, any excess described in subparagraph (A) with respect to any calendar year before 2026 shall be treated as occurring in calendar year 2025.”.
(a) In general.—Section 170(p) is amended—
(a) In general.—
(1) IN GENERAL.—Paragraph (1) of section 170(b) is amended by adding at the end the following new subparagraph:
“(I) 0.5-PERCENT FLOOR.—Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer's contribution base for the taxable year. The preceding sentence shall be applied—
“(i) first, by taking into account charitable contributions to which subparagraph (D) applies to the extent thereof,
“(ii) second, by taking into account charitable contributions to which subparagraph (C) applies to the extent thereof,
“(iii) third, by taking into account charitable contributions to which subparagraph (B) applies to the extent thereof,
“(iv) fourth, by taking into account charitable contributions to which subparagraph (E) applies to the extent thereof,
(2) APPLICATION OF CARRYFORWARD.—Paragraph (1) of section 170(d) is amended by adding at the end the following new subparagraph:
“(C) CONTRIBUTIONS DISALLOWED BY 0.5-PERCENT FLOOR CARRIED FORWARD ONLY FROM YEARS IN WHICH LIMITATION IS EXCEEDED.—
“(i) IN GENERAL.—In the case of any taxable year from which an excess is carried forward (determined without regard to this subparagraph) under any carryover rule, the applicable carryover rule shall be applied by increasing the excess determined under such applicable carryover rule for the contribution year (before the application of subparagraph (B)) by the amount attributable to the charitable contributions to which such rule applies which is not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I).
(b) Modification of limitation for cash contributions.—
(1) IN GENERAL.—Clause (i) of section 170(b)(1)(G) is amended to read as follows:
(2) COORDINATION WITH OTHER LIMITATIONS.—
(A) IN GENERAL.—Clause (iii) of section 170(b)(1)(G) is amended—
(B) OTHER CONTRIBUTIONS.—Subparagraph (B) of section 170(b)(1) is amended—
(i) by striking “to which subparagraph (A)” both places it appears and inserting “to which subparagraph (A) or (G)”, and
(a) In general.—Section 170(b)(2)(A) is amended to read as follows:
“(A) IN GENERAL.—Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section for any taxable year, other than any contribution to which subparagraph (B) or (C) applies, shall be allowed only to the extent that the aggregate of such contributions—
(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.”.
(a) In general.—For purposes of subchapter F of chapter 1 of the Internal Revenue Code of 1986, any activity substantially related to participation or investment in fisheries in the Bering Sea and Aleutian Islands statistical and reporting areas (as described in Figure 1 of section 679 of title 50, Code of Federal Regulations) carried on by an entity identified in section 305(i)(1)(D) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in effect on the date of enactment of this section) shall be considered substantially related to the exercise or performance of the purpose constituting the basis of such entity's exemption under section 501(a) of such Code if the conduct of such activity is in furtherance of 1 or more of the purposes specified in section 305(i)(1)(A) of such Act (as so in effect). For purposes of this paragraph, activities substantially related to participation or investment in fisheries include the harvesting, processing, transportation, sales, and marketing of fish and fish products of the Bering Sea and Aleutian Islands statistical and reporting areas.
(b) Application to certain wholly owned subsidiaries.—If the assets of a trade or business relating to an activity described in subsection (a) of any subsidiary wholly owned by an entity identified in section 305(i)(1)(D) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in effect on the date of enactment of this section) are transferred to such entity (including in liquidation of such subsidiary) not later than 18 months after the date of the enactment of this Act—
(c) Effective date.—This section shall take effect on the date of the enactment of this Act and shall remain effective during the existence of the western Alaska community development quota program established by Section 305(i)(1) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)), as amended.
(a) In general.—Section 170(n)(1) of the Internal Revenue Code of 1986 is amended by striking “$10,000” and inserting “$50,000”.
(a) In general.—Section 460(e) is amended—
(b) Application of exception for purposes of alternative minimum tax.—Section 56(a)(3) is amended by striking “any home construction contract (as defined in section 460(e)(6))” and inserting “any residential construction contract (as defined in section 460(e)(4))”.
(a) Phased increase in exclusion for gain from qualified small business stock.—
(1) IN GENERAL.—Section 1202(a)(1) is amended to read as follows:
“(1) IN GENERAL.— In the case of a taxpayer other than a corporation, gross income shall not include—
(2) APPLICABLE PERCENTAGE.—Section 1202(a) is amended by adding at the end the following new paragraph:
(3) APPLICABLE DATE; ACQUISITION DATE.—Section 1202(a), as amended by paragraph (2), is amended by adding at the end the following new paragraph:
“(6) APPLICABLE DATE; ACQUISITION DATE.—For purposes of this section—
“(B) ACQUISITION DATE.—In the case of any stock which would (but for this paragraph) be treated as having been acquired before, on, or after the applicable date, whichever is applicable, the acquisition date for purposes of this section shall be the first day on which such stock was held by the taxpayer determined after the application of section 1223.”.
(4) CONTINUED TREATMENT AS NOT ITEM OF TAX PREFERENCE.—
(A) IN GENERAL.—Section 57(a)(7) is amended by striking “An amount” and inserting “In the case of stock acquired on or before the date of the enactment of the Creating Small Business Jobs Act of 2010, an amount”.
(B) CONFORMING AMENDMENT.—Section 1202(a)(4) is amended—
(5) OTHER CONFORMING AMENDMENTS.—
(A) Paragraphs (3)(A) and (4)(A) of section 1202(a) are each amended by striking “paragraph (1)” and inserting “paragraph (1)(A)”.
(B) Paragraph (4)(A) of section 1202(a) is amended by inserting “and on or before the applicable date” after “2010”.
(b) Increase in per issuer limitation.—
(1) IN GENERAL.—Subparagraph (A) of section 1202(b)(1) is amended to read as follows:
(2) APPLICABLE DOLLAR LIMIT.—Section 1202 (b) is amended by adding at the end the following:
“(4) APPLICABLE DOLLAR LIMIT.—For purposes of paragraph (1)(A), the applicable dollar limit for any taxable year with respect to eligible gain from 1 or more dispositions by a taxpayer of qualified business stock of a corporation is—
“(A) if such stock was acquired by the taxpayer on or before the applicable date, $10,000,000, reduced by the aggregate amount of eligible gain taken into account by the taxpayer under subsection (a) for prior taxable years and attributable to dispositions of stock issued by such corporation and acquired by the taxpayer before, on, or after the applicable date, and
“(B) if such stock was acquired by the taxpayer after the applicable date, $15,000,000, reduced by the sum of—
“(5) INFLATION ADJUSTMENT.—
“(A) IN GENERAL.—In the case of any taxable year beginning after 2026, the $15,000,000 amount in paragraph (4)(B) shall be increased by an amount equal to —
“(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2025’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.
If any increase under this subparagraph is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000.
“(B) NO INCREASE ONCE LIMIT REACHED.—If, for any taxable year, the eligible gain attributable to dispositions of stock issued by a corporation and acquired by the taxpayer after the applicable date exceeds the applicable dollar limit, then notwithstanding any increase under subparagraph (A) for any subsequent taxable year, the applicable dollar limit for such subsequent taxable year shall be zero.”.
(3) SEPARATE RETURNS.—Subparagraph (A) of section 1202(b)(3) is amended to read as follows:
(c) Increase in limit in aggregate gross assets.—
(1) IN GENERAL.—Subparagraphs (A) and (B) of section 1202(d)(1) are each amended by striking “$50,000,000” and inserting “$75,000,000”.
(2) INFLATION ADJUSTMENT.—Section 1202(b) is amended by adding at the end the following:
“(4) INFLATION ADJUSTMENT.—In the case of any taxable year beginning after 2026, the $75,000,000 amounts in paragraphs (1)(A) and (1)(B) shall each be increased by an amount equal to—
“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2025’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.
If any increase under this paragraph is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000.”.
(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—
(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—
“(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.”.
(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—
“(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.
(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—
(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”.
(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) 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) Application of termination.—Section 181(h), as redesignated by subsection (e), is amended by striking “qualified film and television productions or qualified live theatrical productions” and inserting “qualified film and television productions, qualified live theatrical productions, or qualified sound recording productions”.
(g) Bonus depreciation.—
(1) QUALIFIED SOUND RECORDING PRODUCTION AS QUALIFIED PROPERTY.—Section 168(k)(2)(A)(i) is amended—
(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:
(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. ”.
(a) In general.—Part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 139K the following new section:
“SEC. 139L. Interest on loans secured by rural or agricultural real property.
“(a) In general.—Gross income shall not include 25 percent of the interest received by a qualified lender on any qualified real estate loan.
“(b) Qualified lender.—For purposes of this section, the term ‘qualified lender’ means—
“(1) any bank or savings association the deposits of which are insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.),
“(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—
“(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—
“(B) made to a person other than a specified foreign entity (as defined in section 7701(a)(51)), and
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
Such term shall not include any property which is not located in a State or a possession of the United States.
“(d) Coordination with section 265.—In the case of any qualified real estate loan, section 265 shall be applied—
“(1) by treating any qualified real estate loan for purposes of subsection (a)(2) thereof as an obligation the interest on which is wholly exempt from the taxes imposed by this subtitle,
“(2) by substituting ‘25 percent of the interest on indebtedness’ for ‘Interest on indebtedness’ in such subsection (a)(2),
(b) Clerical amendment.—The table of sections for part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 139K the following new item:
(a) Transfer tax.—Section 5811(a) is amended to read as follows:
(b) Making tax.—Section 5821(a) is amended to read as follows:
(c) Conforming amendment.—Section 4182(a) is amended by adding at the end the following: “For purposes of the preceding sentence, any firearm described in section 5811(a)(2) shall be deemed to be a firearm on which the tax provided by section 5811 has been paid.”
(a) In general.—Part IV of subchapter O of chapter 1 is amended by redesignating section 1062 as section 1063 and by inserting after section 1061 the following new section:
“(a) Election to pay tax in installments.—In the case of gain from the sale or exchange of qualified farmland property to a qualified farmer, at the election of the taxpayer, the portion of the net income tax of such taxpayer for the taxable year of the sale or exchange which is equal to the applicable net tax liability shall be paid in 4 equal installments.
“(b) Rules relating to installment payments.—
“(1) DATE FOR PAYMENT OF INSTALLMENTS.—If an election is made under subsection (a), the first installment shall be paid on the due date (determined without regard to any extension of time for filing the return) for the return of tax for the taxable year in which the sale or exchange occurs and each succeeding installment shall be paid on the due date (as so determined) for the return of tax for the taxable year following the taxable year with respect to which the preceding installment was made.
“(2) ACCELERATION OF PAYMENT.—
“(A) IN GENERAL.—If there is an addition to tax for failure to timely pay any installment required under this section, then the unpaid portion of all remaining installments shall be due on the date of such failure.
“(B) INDIVIDUALS.—In the case of an individual, if the individual dies, then the unpaid portion of all remaining installment shall be paid on the due date for the return of tax for the taxable year in which the taxpayer dies.
“(C) C CORPORATIONS.—In the case of a taxpayer which is a C corporation, trust, or estate, if there is a liquidation or sale of substantially all the assets of the taxpayer (including in a title 11 or similar case), a cessation of business by the taxpayer (in the case of a C corporation), or any similar circumstance, then the unpaid portion of all remaining installments shall be due on the date of such event (or in the case of a title 11 or similar case, the day before the petition is filed). The preceding sentence shall not apply to the sale of substantially all the assets of a taxpayer to a buyer if such buyer enters into an agreement with the Secretary under which such buyer is liable for the remaining installments due under this subsection in the same manner as if such buyer were the taxpayer.
“(3) PRORATION OF DEFICIENCY TO INSTALLMENTS.—If an election is made under subsection (a) to pay the applicable net tax liability in installments and a deficiency has been assessed with respect to such applicable net tax liability, the deficiency shall be prorated to the installments payable under subsection (a). The part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as, and as a part of, such installment. The part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the Secretary. This section shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax.
“(c) Election.—
“(1) IN GENERAL.—Any election under subsection (a) shall be made not later than the due date for the return of tax for the taxable year described in subsection (a).
“(2) PARTNERSHIPS AND S CORPORATIONS.—In the case of a sale or exchange described in subsection (a) by a partnership or S corporation, the election under subsection (a) shall be made at the partner or shareholder level. The Secretary may prescribe such regulations or other guidance as necessary to carry out the purposes of this paragraph.
“(d) Definitions.—For purposes of this section—
“(1) APPLICABLE NET TAX LIABILITY.—
“(2) QUALIFIED FARMLAND PROPERTY.—
“(A) IN GENERAL.—The term ‘qualified farmland property’ means real property located in the United States—
“(i) which—
during substantially all of the 10-year period ending on the date of the qualified sale or exchange, and
“(ii) which is subject to a covenant or other legally enforceable restriction which prohibits the use of such property other than as a farm for farming purposes for any period before the date that is 10 years after the date of the sale or exchange described in subsection (a).
For purposes of clause (i), property which is used or leased by a partnership or S corporation in a manner described in such clause shall be treated as used or leased in such manner by each person who holds a direct or indirect interest in such partnership or S corporation.
“(3) QUALIFIED FARMER.—The term ‘qualified farmer’ means any individual who is actively engaged in farming (within the meaning of subsections (b) and (c) of section 1001 of the Food Security Act of 1986 (7 U.S.C. 1308–1(b) and (c))).
(b) Clerical amendment.—The table of sections for part IV of subchapter O of chapter 1 is amended by redesignating the item relating to section 1062 as relating to section 1063 and by inserting after the item relating to section 1061 the following new item:
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.
(a) In general.—Section 856(c)(4)(B)(ii) is amended by striking “20 percent” and inserting “25 percent”.
Section 25E(g) is amended by striking “December 31, 2032” and inserting “September 30, 2025”.
(a) In general.—Section 30D(h) is amended by striking “placed in service after December 31, 2032” and inserting “acquired after September 30, 2025”.
Section 45W(g) is amended by striking “December 31, 2032” and inserting “September 30, 2025”.
Section 30C(i) is amended by striking “December 31, 2032” and inserting “June 30, 2026”.
(a) In general.—Section 25C(h) is amended by striking “placed in service” and all that follows through “December 31, 2032” and inserting “placed in service after December 31, 2025”.
(b) Conforming amendment.—Section 25C(d)(2)(C) is amended to read as follows:
(a) In general.—Section 25D(h) is amended by striking “to property placed in service after December 31, 2034” and inserting “with respect to any expenditures made after December 31, 2025”.
(b) Conforming amendments.—Section 25D(g) is amended—
Section 179D is amended by adding at the end the following new subsection:
Section 45L(h) is amended by striking “December 31, 2032” and inserting “June 30, 2026”.
(a) Energy property.—Section 168(e)(3)(B)(vi), as amended by section 13703 of Public Law 117–169, is amended—
(a) Restrictions relating to prohibited foreign entities.—Section 45U(c) is amended by adding at the end the following new paragraph:
“(3) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTITIES.—
“(A) IN GENERAL.—No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).
“(B) OTHER PROHIBITED FOREIGN ENTITIES.—No credit shall be determined under subsection (a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof).”.
Section 45V(c)(3)(C) is amended by striking “January 1, 2033” and inserting “January 1, 2028”.
(a) Termination for wind and solar facilities.—Section 45Y(d) is amended—
(1) in paragraph (1), by striking “The amount of” and inserting “Subject to paragraph (4), the amount of”, and
(2) by striking paragraph (3) and inserting the following new paragraphs:
“(3) APPLICABLE YEAR.—For purposes of this subsection, the term ‘applicable year’ means calendar year 2032.
“(4) TERMINATION FOR WIND AND SOLAR FACILITIES.—
“(A) IN GENERAL.—This section shall not apply with respect to any applicable facility placed in service after December 31, 2027.
“(B) APPLICABLE FACILITY.—For purposes of this paragraph, the term ‘applicable facility’ means a qualified facility which—
(b) Restrictions relating to prohibited foreign entities.—Section 45Y is amended—
(1) in subsection (b)(1), by adding at the end the following new subparagraph:
“(E) MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTITIES.—The term ‘qualified facility’ shall not include any facility for which construction begins after December 31, 2025, if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).”, and
(c) Definitions relating to prohibited foreign entities.—Section 7701(a) is amended by adding at the end the following new paragraphs:
“(51) PROHIBITED FOREIGN ENTITY.—
“(A) IN GENERAL.—
“(i) DEFINITION.—The term ‘prohibited foreign entity’ means a specified foreign entity or a foreign-influenced entity.
“(ii) DETERMINATION.—
“(I) IN GENERAL.—Subject to subclause (II), for any taxable year, the determination as to whether an entity is a specified foreign entity or foreign-influenced entity shall be made as of the last day of such taxable year.
“(II) INITIAL TAXABLE YEAR.—For purposes of the first taxable year beginning after the date of enactment of this paragraph, the determination as to whether an entity is a specified foreign entity described in clauses (i) through (iv) of subparagraph (B) shall be made as of the first day of such taxable year.
“(B) SPECIFIED FOREIGN ENTITY.—For purposes of this paragraph, the term ‘specified foreign entity’ means—
“(i) a foreign entity of concern described in subparagraph (A), (B), (D), or (E) of section 9901(8) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 15 U.S.C. 4651),
“(ii) an entity identified as a Chinese military company operating in the United States in accordance 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
“(C) FOREIGN-CONTROLLED ENTITY.—For purposes of subparagraph (B), the term ‘foreign-controlled entity’ means—
“(i) the government (including any level of government below the national level) of a covered nation,
“(iii) a person who is a citizen or national of a covered nation, provided that such person is not an individual who is a citizen, national, or lawful permanent resident of the United States,
“(D) FOREIGN-INFLUENCED ENTITY.—
“(i) IN GENERAL.—For purposes of subparagraph (A), the term ‘foreign-influenced entity’ means an entity—
“(I) with respect to which, during the taxable year—
“(aa) a specified foreign entity has the direct authority to appoint a covered officer of such entity,
“(II) which, during the previous taxable year, made a payment to a specified foreign entity pursuant to a contract, agreement, or other arrangement which entitles such specified foreign entity (or an entity related to such specified foreign entity) to exercise effective control over—
“(ii) EFFECTIVE CONTROL.—
“(I) IN GENERAL.—
“(aa) GENERAL RULE.—Subject to subclause (II), for purposes of clause (i)(II), the term ‘effective control’ means 1 or more agreements or arrangements similar to those described in subclauses (II) and (III) which provide 1 or more contractual counterparties of a taxpayer with specific authority over key aspects of the production of eligible components, energy generation in a qualified facility, or energy storage which are not included in the measures of control through authority, ownership, or debt held which are described in clause (i)(I).
“(bb) GUIDANCE.—The Secretary shall issue such guidance as is necessary to carry out the purposes of this clause, including the establishment of rules to prevent entities from evading, circumventing, or abusing the application of the restrictions described subparagraph (C) and subclauses (II) and (III) of this clause through a contract, agreement, or other arrangement.
“(II) APPLICATION OF RULES PRIOR TO ISSUANCE OF GUIDANCE.—During any period prior to the date that the guidance described in subclause (I)(bb) is issued by the Secretary, for purposes of clause (i)(II), the term ‘effective control’ means the unrestricted contractual right of a contractual counterparty to—
“(aa) determine the quantity or timing of production of an eligible component produced by the taxpayer,
“(bb) determine the amount or timing of activities related to the production of electricity undertaken at a qualified facility of the taxpayer or the storage of electrical energy in energy storage technology of the taxpayer,
“(cc) determine which entity may purchase or use the output of a production unit of the taxpayer that produces eligible components,
“(dd) determine which entity may purchase or use the output of a qualified facility of the taxpayer,
“(ee) restrict access to data critical to production or storage of energy undertaken at a qualified facility of the taxpayer, or to the site of production or any part of a qualified facility or energy storage technology of the taxpayer, to the personnel or agents of such contractual counterparty, or
“(III) LICENSING AND OTHER AGREEMENTS.—
“(aa) IN GENERAL.—In addition to subclause (II), for purposes of clause (i)(II), the term ‘effective control’ means, with respect to a licensing agreement for the provision of intellectual property (or any other contract, agreement or other arrangement entered into with a contractual counterparty related to such licensing agreement) with respect to a qualified facility, energy storage technology, or the production of an eligible component, any of the following:
“(AA) A contractual right retained by the contractual counterparty to specify or otherwise direct 1 or more sources of components, subcomponents, or applicable critical minerals utilized in a qualified facility, energy storage technology, or in the production of an eligible component.
“(BB) A contractual right retained by the contractual counterparty to direct the operation of any qualified facility, any energy storage technology, or any production unit that produces an eligible component.
“(CC) A contractual right retained by the contractual counterparty to limit the taxpayer’s utilization of intellectual property related to the operation of a qualified facility or energy storage technology, or in the production of an eligible component.
“(DD) A contractual right retained by the contractual counterparty to receive royalties under the licensing agreement or any similar agreement (or payments under any related agreement) beyond the 10th year of the agreement (including modifications or extensions thereof).
“(EE) A contractual right retained by the contractual counterparty to direct or otherwise require the taxpayer to enter into an agreement for the provision of services for a duration longer than 2 years (including any modifications or extensions thereof).
“(FF) Such contract, agreement, or other arrangement does not provide the licensee with all the technical data, information, and know-how necessary to enable the licensee to produce the eligible component or components subject to the contract, agreement, or other arrangement without further involvement from the contractual counterparty or a specified foreign entity.
“(GG) Such contract, agreement, or other arrangement was entered into (or modified) on or after the date of enactment of this paragraph.
“(bb) EXCEPTION.—
“(AA) IN GENERAL.—Item (aa) shall not apply in the case of a bona fide purchase or sale of intellectual property.
“(BB) BONA FIDE PURCHASE OR SALE.—For purposes of item (aa), any purchase or sale of intellectual property where the agreement provides that ownership of the intellectual property reverts to the contractual counterparty after a period of time shall not be considered a bona-fide purchase or sale.
“(iii) GUIDANCE.—Not later than December 31, 2026, the Secretary shall issue such guidance as is necessary to carry out the purposes of this subparagraph, including establishment of rules to prevent entities from evading, circumventing, or abusing the application of the restrictions against impermissible technology licensing arrangements with specified foreign entities, such as through temporary transfers of intellectual property, retention by a specified foreign entity of a reversionary interest in transferred intellectual property, or otherwise.
“(E) PUBLICLY TRADED ENTITIES.—
“(i) IN GENERAL.—
“(I) NONAPPLICATION OF CERTAIN FOREIGN-CONTROLLED ENTITY RULES.—Subparagraph (C)(v) shall not apply in the case of any entity the securities of which are regularly traded on—
“(aa) a national securities exchange which is registered with the Securities and Exchange Commission,
“(ii) ADDITIONAL FOREIGN-CONTROLLED ENTITY REQUIREMENTS FOR PUBLICLY TRADED COMPANIES.—In the case of an entity described in clause (i)(I), such entity shall be deemed to be a foreign-controlled entity under subparagraph (C)(v) if such entity is controlled (as determined under subparagraph (G)) by—
“(iii) ADDITIONAL FOREIGN-INFLUENCED ENTITY REQUIREMENTS FOR PUBLICLY TRADED COMPANIES.—In the case of an entity described in clause (i)(II), such entity shall be deemed to be a foreign-influenced entity under subparagraph (D)(i)(I) if—
“(I) during the taxable year—
“(F) COVERED OFFICER.—For purposes of this paragraph, the term ‘covered officer’ means, with respect to an entity—
“(G) DETERMINATION OF CONTROL.—For purposes of subparagraph (C)(v), the term ‘control’ means—
“(i) in the case of a corporation, ownership (by vote or value) of more than 50 percent of the stock in such corporation,
“(H) DETERMINATION OF OWNERSHIP.—For purposes of this paragraph, section 318(a)(2) shall apply for purposes of determining ownership of stock in a corporation. Similar principles shall apply for purposes of determining ownership of interests in any other entity.
“(I) OTHER DEFINITIONS.—For purposes of this paragraph—
“(i) APPLICABLE CRITICAL MINERAL.—The term ‘applicable critical mineral’ has the same meaning given such term under section 45X(c)(6).
“(ii) COVERED NATION.—The term ‘covered nation’ has the same meaning given such term under section 4872(f)(2) of title 10, United States Code.
“(iii) ELIGIBLE COMPONENT.—The term ‘eligible component’ has the same meaning given such term under section 45X(c)(1).
“(iv) ENERGY STORAGE TECHNOLOGY.—The term ‘energy storage technology’ has the same meaning given such term under section 48E(c)(2).
“(J) BEGINNING OF CONSTRUCTION.—For purposes of applying any provision under this paragraph, the beginning of construction with respect to any property shall be determined pursuant to rules similar to the rules under Internal Revenue Service Notice 2013–29 and Internal Revenue Service Notice 2018-59 (as well as any subsequently issued guidance clarifying, modifying, or updating either such Notice), as in effect on January 1, 2025.
“(52) MATERIAL ASSISTANCE FROM A PROHIBITED FOREIGN ENTITY.—
“(A) IN GENERAL.—The term ‘material assistance from a prohibited foreign entity’ means—
“(B) THRESHOLD PERCENTAGE FOR QUALIFIED FACILITIES AND ENERGY STORAGE TECHNOLOGY.—For purposes of subparagraph (A)(i), the threshold percentage shall be—
“(C) THRESHOLD PERCENTAGE FOR ELIGIBLE COMPONENTS.—
“(i) IN GENERAL.—For purposes of subparagraph (A)(ii), the threshold percentage shall be—
“(I) in the case of any solar energy component (as such term is defined in section 45X(c)(3)(A)) which is sold—
“(II) in the case of any wind energy component (as such term is defined in section 45X(c)(4)(A)) which is sold—
“(III) in the case of any inverter described in subparagraphs (B) through (G) of section 45X(c)(2) which is sold—
“(IV) in the case of any qualifying battery component (as such term is defined in section 45X(c)(5)(A)) which is sold—
“(ii) ADJUSTED THRESHOLD PERCENTAGE FOR APPLICABLE CRITICAL MINERALS.—Not later than December 31, 2027, the Secretary shall issue threshold percentages for each of the applicable critical minerals described in section 45X(c)(6)), which shall—
“(I) apply in lieu of the threshold percentage determined under clause (i)(V) for each calendar year, and
“(D) MATERIAL ASSISTANCE COST RATIO.—
“(i) QUALIFIED FACILITIES AND ENERGY STORAGE TECHNOLOGY.—For purposes of subparagraph (A)(i), the term ‘material assistance cost ratio’ means the amount (expressed as a percentage) equal to the quotient of—
“(I) an amount equal to—
“(aa) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are incorporated into the qualified facility or energy storage technology upon completion of construction, minus
“(bb) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are—
“(AA) incorporated into the qualified facility or energy storage technology upon completion of construction, and
“(BB) mined, produced, or manufactured by a prohibited foreign entity, divided by
“(ii) ELIGIBLE COMPONENTS.—For purposes of subparagraph (A)(ii), the term ‘material assistance cost ratio’ means the amount (expressed as a percentage) equal to the quotient of—
“(I) an amount equal to—
“(aa) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer for production of such eligible component, minus
“(bb) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer for production of such eligible component that are mined, produced, or manufactured by a prohibited foreign entity, divided by
“(iii) SAFE HARBOR TABLES.—
“(I) IN GENERAL.—Not later than December 31, 2026, the Secretary shall issue safe harbor tables (and such other guidance as deemed necessary) to—
“(aa) identify the percentage of total direct costs of any manufactured product which is attributable to a prohibited foreign entity,
“(II) SAFE HARBORS PRIOR TO ISSUANCE.—For purposes of this paragraph, prior to the date on which the Secretary issues the safe harbor tables described in subclause (I), and for construction of a qualified facility or energy storage technology which begins on or before the date which is 60 days after the date of issuance of such tables, a taxpayer may—
“(aa) use the tables included in Internal Revenue Service Notice 2025–08 to establish the percentage of the total direct costs of any listed eligible component and any manufactured product, and
“(bb) rely on a certification by the supplier of the manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component—
“(AA) of the total direct costs or the total direct material costs, as applicable, of such product or component that was not produced or manufactured by a prohibited foreign entity, or
“(BB) that such product or component was not produced or manufactured by a prohibited foreign entity.
“(III) EXCEPTION.—Notwithstanding subclauses (I) and (II)—
“(aa) if the taxpayer knows (or has reason to know) that a manufactured product or eligible component was produced or manufactured by a prohibited foreign entity, the taxpayer shall treat all direct costs with respect to such manufactured product, or all direct material costs with respect to such eligible component, as attributable to a prohibited foreign entity, and
“(IV) CERTIFICATION REQUIREMENT.—In a manner consistent with Treasury Regulation section 1.45X–4(c)(4)(i) (as in effect on the date of enactment of this paragraph), the certification referred to in subclause (II)(bb) shall—
“(aa) include—
“(AA) the supplier’s employer identification number, or
“(BB) any such similar identification number issued by a foreign government,
“(cc) be retained by the supplier and the taxpayer for a period of not less than 6 years and shall be provided to the Secretary upon request, and
“(dd) be from the supplier from which the taxpayer purchased any manufactured product, eligible component, or constituent elements, materials, or subcomponents of an eligible component, stating—
“(AA) that such property was not produced or manufactured by a prohibited foreign entity and that the supplier does not know (or have reason to know) that any prior supplier in the chain of production of that property is a prohibited foreign entity,
“(BB) for purposes of section 45X, the total direct material costs for each component, constituent element, material, or subcomponent that were not produced or manufactured by a prohibited foreign entity, or
“(CC) for purposes of section 45Y or section 48E, the total direct costs attributable to all manufactured products that were not produced or manufactured by a prohibited foreign entity.
“(iv) EXISTING CONTRACT.—Upon the election of the taxpayer (in such form and manner as the Secretary shall designate), in the case of any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component which is—
“(I) acquired by the taxpayer, or manufactured or assembled by or for the taxpayer, pursuant to a binding written contract which was entered into prior to June 16, 2025, and
“(II) (aa) placed into service before January 1, 2030 (or, in the case of an applicable facility, as defined in section 45Y(d)(4)(B), before January 1, 2028) in a facility the construction of which began before August 1, 2025, or
the cost to the taxpayer with respect to such product, component, element, material, or subcomponent shall not be included for purposes of determining the material assistance cost ratio under this subparagraph.
“(v) ANTI-CIRCUMVENTION RULES.—The Secretary shall prescribe such regulations and guidance as may be necessary or appropriate to prevent circumvention of the rules under this subparagraph, including prevention of—
“(E) OTHER DEFINITIONS.—For purposes of this paragraph—
“(ii) ENERGY STORAGE TECHNOLOGY.—The term ‘energy storage technology’ has the same meaning given such term under section 48E(c)(2).
“(iii) MANUFACTURED PRODUCT.—The term ‘manufactured product’ means—
“(F) DETERMINATION OF OWNERSHIP; BEGINNING OF CONSTRUCTION.—Rules similar to the rules under subparagraphs (H) and (J) of paragraph (51) shall apply for purposes of this paragraph.
(d) Denial of credit for certain wind and solar leasing arrangements.—Section 45Y is amended by adding at the end the following new subsection:
“(h) Denial of credit for wind and solar leasing arrangements.—No credit shall be determined under this section with respect to any production of electricity during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting ‘lessee’ for ‘taxpayer’) if the taxpayer rents or leases such property to a third party during such taxable year.”.
(e) Emissions rates tables.—Section 45Y(b)(2)(C) is amended by adding at the end the following new clause:
“(iii) EXISTING STUDIES.—For purposes of clause (i), in determining greenhouse gas emissions rates for types or categories of facilities for the purpose of determining whether a facility satisfies the requirements under paragraph (1), the Secretary shall consider studies published on or before the date of enactment of this clause which demonstrate a net lifecycle greenhouse gas emissions rate which is not greater than zero using widely accepted lifecycle assessment concepts, such as concepts described in standards developed by the International Organization for Standardization.”.
(f) Nuclear energy communities.—
(1) IN GENERAL.—Section 45(b)(11) is amended—
(A) in subparagraph (B)—
(iii) by adding at the end the following new clause:
“(iv) for purposes of any qualified facility which is an advanced nuclear facility, a metropolitan statistical area which has (or, at any time during the period beginning after December 31, 2009, had) 0.17 percent or greater direct employment related to the advancement of nuclear power, including employment related to—
(B) by adding at the end the following new subparagraph:
“(C) ADVANCED NUCLEAR FACILITIES.—
“(i) IN GENERAL.—Subject to clause (ii), for purposes of subparagraph (B)(iv), the term ‘advanced nuclear facility’ means any nuclear facility the reactor design for which is approved in the manner described in section 45J(d)(2).
“(ii) SPECIAL RULE.—For purposes of clause (i), a facility shall be deemed to have a reactor design which is approved in the manner described in section 45J(d)(2) if the Nuclear Regulatory Commission has authorized construction and issued a site-specific construction permit or combined license with respect to such facility (without regard to whether the reactor design was approved after December 31, 1993).”.
(2) NONAPPLICATION FOR CLEAN ELECTRICITY INVESTMENT CREDIT.—Section 48E(a)(3)(A)(i) is amended by inserting “, as applied without regard to clause (iv) thereof” after “section 45(b)(11)(B)”.
(g) Conforming amendments.—Section 45Y(b)(1) is amended—
(2) by inserting after subparagraph (C) the following new subparagraph:
“(D) DETERMINATION OF CAPACITY.—For purposes of subparagraph (C), additions of capacity of a facility shall be determined in any reasonable manner, including based on—
“(i) determinations by, or reports to, the Federal Energy Regulatory Commission (including interconnection agreements), the Nuclear Regulatory Commission, or any similar entity, reflecting additions of capacity,
“(ii) determinations or reports reflecting additions of capacity made by an independent professional engineer,
(h) Prohibition on transfer of credits to specified foreign entities.—Section 6418(g) is amended by adding at the end the following new paragraph:
“(5) PROHIBITION ON TRANSFER OF CREDITS TO SPECIFIED FOREIGN ENTITIES.—With respect to any eligible credit described in clause (iii), (iv), (vi), (vii), (viii), or (xi) of subsection (f)(1)(A), an eligible taxpayer may not elect to transfer any portion of such credit to a taxpayer that is a specified foreign entity (as defined in section 7701(a)(51)(B)).”.
(i) Extension of period of limitations for errors relating to determining of material assistance from a prohibited foreign entity.—Section 6501 is amended—
(j) Imposition of accuracy-related penalties.—
(1) IN GENERAL.—Section 6662 is amended by adding at the end the following new subsection: “(m) Substantial understatement of income tax due to disallowance of applicable energy credits.— “(1) IN GENERAL.—In the case of a taxpayer for which there is a disallowance of an applicable energy credit for any taxable year, for purposes of determining whether there is a substantial understatement of income tax for such taxable year, subsection (d)(1) shall be applied— “(2) DISALLOWANCE OF AN APPLICABLE ENERGY CREDIT.—For purposes of this subsection, the term ‘disallowance of an applicable energy credit’ means the disallowance of a credit under section 45X, 45Y, or 48E by reason of overstating the material assistance cost ratio (as determined under section 7701(a)(52)) with respect to any qualified facility, energy storage technology, or facility which produces eligible components.”.
(2) CONFORMING AMENDMENT.—Section 6417(d)(6) is amended by adding at the end the following new subparagraph:
“(D) DISALLOWANCE OF AN APPLICABLE ENERGY CREDIT.—In the case of an applicable entity which made an election under subsection (a) with respect to an applicable credit for which there is a disallowance described in section 6662(m)(2), subparagraph (A) shall apply with respect to any excessive payment resulting from such disallowance.”.
(k) Penalty for substantial misstatements on certification provided by supplier.—
(1) IN GENERAL.—Part I of subchapter B of chapter 68 is amended by inserting after section 6695A the following new section:
“(a) Imposition of penalty.—If—
“(1) a person—
“(2) such person knows, or reasonably should have known, that such certification is inaccurate or false with respect to—
“(3) the inaccuracy or falsity described in paragraph (2) resulted in the disallowance of an applicable energy credit (as defined in section 6662(m)(2)) and an understatement of income tax (within the meaning of section 6662(d)(2)) for the taxable year in an amount which exceeds the lesser of—
then such person shall pay a penalty in the amount determined under subsection (b).
“(b) Amount of penalty.—The amount of the penalty imposed under subsection (a) on any person with respect to a certification shall be equal to the greater of—
(2) CLERICAL AMENDMENTS.—
(A) Section 6696 is amended—
(ii) in subsections (a), (b), and (e), by striking “and 6695A” each place it appears and inserting “6695A, and 6695B”,
(B) The table of sections for part I of subchapter B of chapter 68 is amended by inserting after item relating to section 6695A the following new item:
(l) Effective dates.—
(1) IN GENERAL.—Except as provided in paragraphs (2), (3), and (4), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.
(2) MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTITIES.—The amendments made by subsection (b)(1) shall apply to facilities for which construction begins after December 31, 2025.
(a) Termination for wind and solar facilities.—Section 48E(e) is amended—
(1) in paragraph (1), by striking “The amount of” and inserting “Subject to paragraph (4), the amount of”, and
(2) by adding at the end the following new paragraph:
“(4) TERMINATION FOR WIND AND SOLAR FACILITIES.—
“(A) IN GENERAL.—This section shall not apply to any qualified property placed in service by the taxpayer after December 31, 2027, which is part of an applicable facility.
“(B) APPLICABLE FACILITY.—For purposes of this paragraph, the term ‘applicable facility’ means a qualified facility which—
(b) Restrictions relating to prohibited foreign entities.—
(1) IN GENERAL.—Section 48E is amended—
(A) in subsection (b)—
(ii) by inserting after paragraph (5) the following new paragraph:
“(6) MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTITIES.—The terms ‘qualified facility’ and ‘qualified interconnection property’ shall not include any facility or property the construction, reconstruction, or erection of which begins after December 31, 2025, if the construction, reconstruction, or erection of such facility or property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).”, and
(B) in subsection (c), by adding at the end the following new paragraph:
“(3) MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTITIES.—The term ‘energy storage technology’ shall not include any property the construction of which begins after December 31, 2025, if the construction of such property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).”.
(2) ADDITIONAL RESTRICTIONS.—Section 48E(d) is amended by adding at the end the following new paragraph:
“(6) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTITIES.—
“(A) IN GENERAL.—No credit shall be determined under subsection (a) for any taxable year if the taxpayer is—
“(B) EFFECTIVE CONTROL.—In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such determination relates to a qualified facility described in subsection (b)(3) or energy storage technology described in subsection (c)(2).”.
(3) RECAPTURE.—
(A) IN GENERAL.—Section 50(a) is amended—
(ii) 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) CONFORMING AMENDMENTS.—
(i) Section 1371(d)(1) is amended by striking “section 50(a)(5)” and inserting “section 50(a)(6)”.
(ii) Section 6418(g)(3) is amended by striking “subsection (a)(5)” each place it appears and inserting “subsection (a)(7)”.
(c) Denial of credit for expenditures for certain wind and solar leasing arrangements.—
(1) IN GENERAL.—Section 48E is amended—
(B) by inserting after subsection (h) the following new subsection:
“(i) Denial of credit for expenditures for wind and solar leasing arrangements.—No credit shall be determined under this section for any qualified investment during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting ‘lessee’ for ‘taxpayer’) if the taxpayer rents or leases such property to a third party during such taxable year.”.
(2) CONFORMING RULES.—Section 50 is amended by adding at the end the following new subsection:
(d) Domestic content rules.—Subparagraph (B) of section 48E(a)(3) is amended to read as follows:
“(B) DOMESTIC CONTENT.—Rules similar to the rules of section 48(a)(12) shall apply, except that, for purposes of subparagraph (B) of such section and the application of rules similar to the rules of section 45(b)(9)(B), the adjusted percentage (as determined under section 45(b)(9)(C)) shall be determined as follows:
“(i) In the case of any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins before June 16, 2025, 40 percent (or, in the case of a qualified facility which is an offshore wind facility, 20 percent).
“(ii) In the case of any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins on or after June 16, 2025, and before January 1, 2026, 45 percent (or, in the case of a qualified facility which is an offshore wind facility, 27.5 percent).
(e) Elimination of energy credit for certain energy property.—Section 48(a)(2) is amended—
(f) Application of clean electricity investment credit to qualified fuel cell property.—Section 48E, as amended by subsection (c), is amended—
(2) by inserting after subsection (i) the following new subsection: “(j) Application to qualified fuel cell property.—For purposes of this section, in the case of any qualified fuel cell property (as defined in section 48(c)(1), as applied without regard to subparagraph (E) thereof)—
(g) Effective dates.—
(1) IN GENERAL.—Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.
(2) DOMESTIC CONTENT RULES.—The amendment made by subsection (d) shall apply on or after June 16, 2025.
(3) ELIMINATION OF ENERGY CREDIT FOR CERTAIN ENERGY PROPERTY.—The amendments made by subsection (e) shall apply to property the construction of which begins on or after June 16, 2025.
(a) Modification of provision relating to sale of integrated components.—Paragraph (4) of section 45X(d) is amended to read as follows:
“(4) SALE OF INTEGRATED COMPONENTS.—
“(A) IN GENERAL.—For purposes of this section, a person shall be treated as having sold an eligible component to an unrelated person if—
“(B) ADDITIONAL REQUIREMENTS.—Subparagraph (A) shall only apply with respect to a secondary component for which not less than 65 percent of the total direct material costs which are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer to produce such secondary component are attributable to primary components which are mined, produced, or manufactured in the United States.”.
(b) Phase out and termination.—Section 45X(b)(3) is amended—
(2) in subparagraph (A), in the matter preceding clause (i), by striking “subparagraph (C)” and inserting “subparagraphs (C) and (D)”, and
(3) by striking subparagraph (C) and inserting the following:
“(C) PHASE OUT FOR APPLICABLE CRITICAL MINERALS OTHER THAN METALLURGICAL COAL.—
“(i) IN GENERAL.—In the case of any applicable critical mineral (other than metallurgical coal) produced after December 31, 2030, the amount determined under this subsection with respect to such mineral shall be equal to the product of—
“(ii) PHASE OUT PERCENTAGE FOR APPLICABLE CRITICAL MINERALS OTHER THAN METALLURGICAL COAL.—The phase out percentage under this clause is equal to—
“(II) in the case of any applicable critical mineral produced during calendar year 2032, 50 percent,
(c) Restrictions relating to prohibited foreign entities.—Section 45X is amended—
(1) in subsection (c)(1), by adding at the end the following new subparagraph:
“(C) MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTITIES.—In the case of taxable years beginning after the date of enactment of this subparagraph, the term ‘eligible component’ shall not include any property which includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52), as applied by substituting ‘used in a product sold before January 1, 2027’ for ‘used in a product sold before January 1, 2030’ in subparagraph (D)(iv)(II)(bb) thereof).”, and
(d) Modification of definition of battery module.—Section 45X(c)(5)(B)(iii) is amended—
(e) Inclusion of metallurgical coal as an applicable critical mineral for purposes of the advanced manufacturing production credit.—
(1) IN GENERAL.—Section 45X(c)(6) is amended—
(A) by redesignating subparagraphs (R) through (Z) as subparagraphs (S) through (AA), respectively, and
(B) by inserting after subparagraph (Q) the following new subparagraph:
“(R) METALLURGICAL COAL.—Metallurgical coal which is suitable for use in the production of steel (within the meaning of the notice published by the Department of Energy entitled ‘Critical Material List; Addition of Metallurgical Coal Used for Steelmaking’ (90 Fed. Reg. 22711 (May 29, 2025))), regardless of whether such production occurs inside or outside of the United States.”.
(2) CREDIT AMOUNT.—Section 45X(b)(1)(M) is amended by inserting “(2.5 percent in the case of metallurgical coal)” after “10 percent”.
(a) In general.—Section 48C(e)(3)(C) is amended by striking “shall be increased” and inserting “shall not be increased”.
(b) Prohibition on negative emission rates.—
(1) IN GENERAL.—Section 45Z(b)(1) is amended—
(c) 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 (i), (ii), and (iii), the emissions rate shall be adjusted as necessary to exclude any emissions attributed to indirect land use change. Any such adjustment shall be based on regulations or methodologies determined by the Secretary.
“(v) ANIMAL MANURES.—With respect to any transportation fuel which is derived from animal manure, the Secretary—
(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)”.
(d) Extension of clean fuel production credit.—Section 45Z(g) is amended by striking “December 31, 2027” and inserting “December 31, 2029”.
(f) Sales to unrelated persons.—Section 45Z(f)(3) is amended by adding at the end the following: “The Secretary may prescribe additional related person rules similar to the rule described in the preceding sentence for entities which are not described in such sentence, including rules for related persons with respect to which the taxpayer has reason to believe will sell fuel to an unrelated person in a manner described in subsection (a)(4).”.
(g) Treatment of sustainable aviation fuel.—
(1) COORDINATION OF CREDITS.—
(A) IN GENERAL.—Section 6426(k) is amended by adding at the end the following new paragraph:
(B) EFFECTIVE DATE.—The amendment made by this paragraph shall apply to—
(ii) fuel sold or used before the date of enactment of this Act, but only to the extent that claims for the credit under section 6426(k) of the Internal Revenue Code of 1986 with respect to such sale or use have not been paid or allowed as of such date.
(2) ELIMINATION OF SPECIAL RATE.—
(A) IN GENERAL.—Paragraph (3) of section 45Z(a) is amended to read as follows:
(B) CONFORMING AMENDMENT.—Section 45Z(c)(1) is amended by striking “, the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii)” and inserting “and the $1.00 amount in subsection (a)(2)(B)”.
(h) Sustainable aviation fuel credit.—Section 6426(k), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:
(i) Registration of producers of fuel eligible for clean fuel production credit.—
(1) IN GENERAL.—Section 13704(b)(5) of Public Law 117–169 is amended by striking “after ‘section 6426(k)(3)),’” and inserting “after ‘section 40B),’”.
(j) Extension and modification of small agri-biodiesel producer credit.—
(1) IN GENERAL.—Section 40A is amended—
(2) TRANSFER OF CREDIT.—Section 6418(f)(1)(A) is amended by adding at the end the following new clause:
(k) Restrictions relating to prohibited foreign entities.—
(1) IN GENERAL.—Section 45Z(f) is amended by adding at the end the following new paragraph:
“(8) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTITIES.—
“(A) IN GENERAL.—No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).
“(B) OTHER PROHIBITED FOREIGN ENTITIES.—No credit shall be determined under subsection (a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof).”.
(a) Restrictions relating to prohibited foreign entities.—Section 45Q(f) is amended by adding at the end the following new paragraph:
(b) Parity for different uses and utilizations of qualified carbon oxide.—Section 45Q is amended—
(1) in subsection (a)—
(B) in paragraph (3), by striking subparagraph (B) and inserting the following:
“(B) (i) disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in clause (ii) or (iii),
(2) in subsection (b)—
(A) in paragraph (1)—
(c) Conforming amendment.—Section 6417(d)(3)(C)(i)(II)(bb) is amended by striking “paragraph (3)(A) or (4)(A) of section 45Q(a)” and inserting “section 45Q(a)(3)(A)”.
(a) In general.—Section 56A(c)(13) is amended—
(1) by striking subparagraph (A) and inserting the following:
(a) In general.—Section 7704(d)(1)(E) is amended—
(1) by striking “income and gains derived from the exploration” and inserting the following: “income and gains derived from—
(3) by striking “or the transportation or storage” and all that follows and inserting the following:
“(ii) the transportation or storage of—
“(iii) in the case of a qualified facility (as defined in section 45Q(d), without regard to any date by which construction of the facility or equipment is required to begin) not less than 50 percent of the total carbon oxide production of which is qualified carbon oxide (as defined in section 45Q(c))—
“(iv) the production of electricity from any advanced nuclear facility (as defined in section 45J(d)(2)),
(a) In general.—Subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:
“(a) In general.—If a person establishes to the satisfaction of the Secretary that such person meets the requirements of subsection (b) with respect to diesel fuel or kerosene, then the Secretary shall pay to such person an amount (without interest) equal to the tax described in subsection (b)(2)(A) with respect to such diesel fuel or kerosene.
“(b) Requirements.—
“(1) IN GENERAL.—A person meets the requirements of this subsection with respect to diesel fuel or kerosene if such person removes from a terminal eligible indelibly dyed diesel fuel or kerosene.
(b) Conforming amendments.—
(1) Section 6206 is amended—
(2) Section 6430 is amended—
(3) Section 6675 is amended—
(a) Civil penalty.—
(1) ADDITIONAL PENALTY IMPOSED.—Section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) is amended by adding at the end the following new subsection: “(c) Any person who enters, introduces, facilitates, or attempts to introduce an article into the United States using the privilege of this section, the importation of which violates any other provision of United States customs law, shall be assessed, in addition to any other penalty permitted by law, a civil penalty of up to $5,000 for the first violation and up to $10,000 for each subsequent violation.”.
(b) Repeal of commercial shipment exception.—
(1) REPEAL.—Section 321(a)(2) of such Act (19 U.S.C. 1321(a)(2)) is amended by striking “of this Act, or” and all that follows through “subdivision (2); and” and inserting “of this Act; and”.
(2) CONFORMING REPEAL.—Subsection (c) of such section 321, as added by subsection (a) of this section, is repealed.
(a) Rule made permanent.—Section 461(l)(1) is amended by striking “and before January 1, 2029,” each place it appears.
(b) Adjustment of amounts for calculation of excess business loss.—Section 461(l)(3)(C) is amended—
(a) In general.—Section 707(a)(2) is amended by striking “Under regulations prescribed” and inserting “Except as provided”.
(b) Effective date.—The amendment made by this section shall apply to services performed, and property transferred, after the date of the enactment of this Act.
(c) Rule of construction.—Nothing in this section, or the amendments made by this section, shall be construed to create any inference with respect to the proper treatment under section 707(a) of the Internal Revenue Code of 1986 with respect to payments from a partnership to a partner for services performed, or property transferred, on or before the date of the enactment of this Act.
(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—
“(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—
“(C) SPECIFIED COVERED EMPLOYEE.—For purposes of this paragraph, the term ‘specified covered employee’ means, with respect to any controlled group—
(a) In general.—Chapter 36 is amended by inserting after subchapter B the following new subchapter:
“SEC. 4475. Imposition of tax.
“(a) In general.—There is hereby imposed on any remittance transfer a tax equal to 1 percent of the amount of such transfer.
“(b) Payment of tax.—
“(1) IN GENERAL.—The tax imposed by this section with respect to any remittance transfer shall be paid by the sender with respect to such transfer.
“(2) COLLECTION OF TAX.—The remittance transfer provider with respect to any remittance transfer shall collect the amount of the tax imposed under subsection (a) with respect to such transfer from the sender and remit such tax quarterly to the Secretary at such time and in such manner as provided by the Secretary,
“(c) Tax limited to cash and similar instruments.—The tax imposed under subsection (a) shall apply only to any remittance transfer for which the sender provides cash, a money order, a cashier's check, or any other similar physical instrument (as determined by the Secretary) to the remittance transfer provider.
“(d) Nonapplication to certain noncash remittance transfers.—Subsection (a) shall not apply to any remittance transfer for which the funds being transferred are—
“(1) withdrawn from an account held in or by a financial institution—
“(A) which is described in subparagraphs (A) through (H) of section 5312(a)(2) of title 31, United States Code, and
“(B) that is subject to the requirements under subchapter II of chapter 53 of such title, or
“(e) Definitions.—For purposes of this section—
“(1) IN GENERAL.—The terms ‘remittance transfer’, ‘remittance transfer provider’, and ‘sender’ shall each have the respective meanings given such terms by section 919(g) of the Electronic Fund Transfer Act (15 U.S.C. 1693o–1(g)).
“(2) CREDIT CARD.—The term ‘credit card’ has the same meaning given such term under section 920(c)(3) of the Electronic Fund Transfer Act (15 U.S.C. 1693o–2(c)(3)).
“(3) DEBIT CARD.—The term ‘debit card’ has the same meaning given such term under section 920(c)(2) of the Electronic Fund Transfer Act (15 U.S.C. 1693o–2(c)(2)), without regard to subparagraph (B) of such section.
(b) Conforming amendment.—The table of subchapters for chapter 36 is amended by inserting after the item relating to subchapter B the following new item:
(a) Assessable penalty for failure to comply with due diligence requirements.—
(1) IN GENERAL.—Any COVID–ERTC promoter which provides aid, assistance, or advice with respect to any COVID–ERTC document and which fails to comply with due diligence requirements imposed by the Secretary with respect to determining eligibility for, or the amount of, any credit or advance payment of a credit under section 3134 of the Internal Revenue Code of 1986, shall pay a penalty of $1,000 for each such failure.
(2) DUE DILIGENCE REQUIREMENTS.—The due diligence requirements referred to in paragraph (1) shall be similar to the due diligence requirements imposed under section 6695(g) of the Internal Revenue Code of 1986.
(3) RESTRICTION TO DOCUMENTS USED IN CONNECTION WITH RETURNS OR CLAIMS FOR REFUND.—Paragraph (1) shall not apply with respect to any COVID–ERTC document unless such document constitutes, or relates to, a return or claim for refund.
(b) 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 of the gross receipts of such person for aid, assistance, and advice with respect to all COVID-ERTC documents exceeds 20 percent of the gross receipts of such person for such taxable year, or
(B) with respect to such person's taxable year in which such person provided such assistance or the preceding taxable year—
(i) the aggregate of the gross receipts of such person for aid, assistance, and advice with respect to all COVID–ERTC documents exceeds 50 percent of the gross receipts of such person for such taxable year, or
(2) EXCEPTION FOR CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.—The term “COVID–ERTC promoter” shall not include a certified professional employer organization (as defined in section 7705 of the Internal Revenue Code of 1986).
(3) AGGREGATION RULE.—For purposes of paragraph (1), all persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986, or subsection (m) or (o) of section 414 of such Code, shall be treated as 1 person.
(4) SHORT TAXABLE YEARS.—In the case of any taxable year of less than 12 months, a person shall be treated as a COVID-ERTC promoter if such person is described in paragraph (1) either with respect to such taxable year or by treating any reference to such taxable year as a reference to the calendar year in which such taxable year begins.
(c) COVID–ERTC document.—For purposes of this section, the term “COVID–ERTC document” means any return, affidavit, claim, or other document related to any credit or advance payment of a credit under section 3134 of the Internal Revenue Code of 1986, including any document related to eligibility for, or the calculation or determination of any amount directly related to, any such credit or advance payment.
(d) Limitation on credits and refunds.—Notwithstanding section 6511 of the Internal Revenue Code of 1986, no credit under section 3134 of the Internal Revenue Code of 1986 shall be allowed, and no refund with respect to any such credit shall be made, after the date of the enactment of this Act, unless a claim for such credit or refund was filed by the taxpayer on or before January 31, 2024.
(e) Extension of limitation on assessment.—Section 3134(l) is amended to read as follows:
“(l) Extension of limitation on assessment.—
“(1) 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—
“(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.”.
(f) Amendment to penalty for erroneous claim for refund or credit.—Section 6676(a) is amended by striking “income tax” and inserting “income or employment tax”.
(g) Effective dates.—
(1) IN GENERAL.—The provisions of this section shall apply to aid, assistance, and advice provided after the date of the enactment of this Act.
(2) LIMITATION ON CREDITS AND REFUNDS.—Subsection (d) shall apply to credits and refunds allowed or made after the date of the enactment of this Act.
(a) Social security number of taxpayer required.—Section 25A(g)(1) is amended to read as follows:
“(1) IDENTIFICATION REQUIREMENT.—
“(A) SOCIAL SECURITY NUMBER REQUIREMENT.—No credit shall be allowed under subsection (a) to an individual unless the individual includes on the return of tax for the taxable year—
“(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.
(b) Omission treated as mathematical or clerical error.—Section 6213(g)(2)(J) is amended by striking “TIN” and inserting “social security number or employer identification number”.
Out of any money in the Treasury not otherwise appropriated, there is hereby appropriated for the fiscal year ending September 30, 2026, $15,000,000, to remain available until September 30, 2026, for necessary expenses of the Department of the Treasury to deliver to Congress, within 90 days following the date of the enactment of this Act, a report on—
(1) the cost of enhancing and establishing public-private partnerships which provide for free tax filing for up to 70 percent of all taxpayers calculated by adjusted gross income, and to replace any direct e-file programs run by the Internal Revenue Service;
(2) taxpayer opinions and preferences regarding a taxpayer-funded, government-run service or a free service provided by the private sector;
(a) In general.—The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the amendments made by the provisions of the final rule published by the Centers for Medicare & Medicaid Services on September 21, 2023, and titled “Streamlining Medicaid; Medicare Savings Program Eligibility Determination and Enrollment” (88 Fed. Reg. 65230) to the following sections of title 42, Code of Federal Regulations:
(b) Implementation funding.—For the purposes of carrying out the provisions of this section and section 71102, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $1,000,000 for fiscal year 2026, to remain available until expended.
The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the amendments made by the provisions of the final rule published by the Centers for Medicare & Medicaid Services on April 2, 2024, and titled “Medicaid Program; Streamlining the Medicaid, Children's Health Insurance Program, and Basic Health Program Application, Eligibility Determination, Enrollment, and Renewal Processes” (89 Fed. Reg. 22780) to the following sections of title 42, Code of Federal Regulations:
(a) Medicaid.—
(1) IN GENERAL.—Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended—
(A) in subsection (a)—
(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)—
“(iii) in the case that such system indicates that an individual enrolled or seeking to enroll under such plan (or waiver of such plan) is enrolled under a State plan (or waiver of such a plan) of another State, for the taking of appropriate action (as determined by the Secretary) to identify whether such an individual resides in the State and disenroll an individual from the State plan of such State if such individual does not reside in such State (unless such individual meets such an exception as the Secretary may specify).”; and
(B) by adding at the end the following new subsections:
“(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, transmit information to a State (or allow the Secretary to transmit information to a State) regarding whether an individual enrolled or seeking to enroll under the State plan of such State (or waiver of such plan) is enrolled under the State plan (or waiver of such plan) of another State.
“(2) STANDARDS.—The Secretary shall establish such standards as determined necessary by the Secretary to limit and protect information submitted under such system and ensure the privacy of such information, consistent with subsection (a)(7).
“(3) IMPLEMENTATION FUNDING.—There are appropriated to the Administrator of the Centers for Medicare & Medicaid Services, out of amounts in the Treasury not otherwise appropriated, in addition to amounts otherwise available—
“(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:
“(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.
(2) CONFORMING AMENDMENTS.—
(A) PARIS.—Section 1903(r)(3) of the Social Security Act (42 U.S.C. 1396b(r)(3)) is amended—
(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 (for purposes of address verification under section 1902(vv)) through the system described in subparagraph (A)(i) to meet the requirements of this paragraph.”.
(B) MANAGED CARE.—Section 1932 of the Social Security Act (42 U.S.C. 1396u–2) is amended by adding at the end the following new subsection:
“(j) 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—
(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)”.
Section 1902 of the Social Security Act (42 U.S.C. 1396a), as amended by section 71103, is further amended—
(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, 2027, 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) or a successor system that provides such information needed to determine whether any individuals enrolled for medical assistance under the State plan (or waiver of such plan) are deceased. “(B) DISENROLLMENT UNDER STATE PLAN.—If the State determines, based on information obtained from the Death Master File, that an individual enrolled for medical assistance under the State plan (or waiver of such plan) is deceased, the State shall— “(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).”.
Section 1902(kk)(1) of the Social Security Act (42 U.S.C. 1396a(kk)(1)) is amended—
(2) by adding at the end the following new subparagraph:
“(B) 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.”.
(a) In general.—Section 1903(u)(1) of the Social Security Act (42 U.S.C. 1396b(u)(1)) is amended—
(1) in subparagraph (A)—
(3) in subparagraph (C), by striking “he” in each place it appears and inserting “the Secretary” in each such place; and
(4) in subparagraph (D)(i)—
(B) in subclause (II), by striking the period at the end and inserting “, or payments where insufficient information is available to confirm eligibility, and”; and
(C) by adding at the end the following new subclause:
“(III) payments (other than payments described in subclause (I)) for items and services furnished to an individual who is not eligible for medical assistance under the State plan (or a waiver of such plan) with respect to such items and services, or payments where insufficient information is available to confirm eligibility.”.
(a) In general.—Section 1902(e)(14) of the Social Security Act (42 U.S.C. 1396a(e)(14)) is amended by adding at the end the following new subparagraph:
“(L) FREQUENCY OF ELIGIBILITY REDETERMINATIONS FOR CERTAIN INDIVIDUALS.—
“(i) IN GENERAL.—Subject to clause (ii), with respect to redeterminations of eligibility for medical assistance under a State plan (or waiver of such plan) scheduled on or after the first day of the first quarter that begins after December 31, 2026, a State shall make such a redetermination once every 6 months for the following individuals:
“(II) Individuals described in such subsection who are otherwise enrolled under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in subsection (a)(10)(A)(i)(VIII).
(b) Guidance.—Not later than 180 days after the date of enactment of this section, the Secretary of Health and Human Services, acting through the Administrator of the Centers for Medicare & Medicaid Services, shall issue guidance relating to the implementation of the amendments made by this section.
(c) Implementation funding.—For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $75,000,000 for fiscal year 2026, to remain available until expended.
(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)—
(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—
(a) Medicaid.—Section 1903(v) of the Social Security Act (42 U.S.C. 1396b(v)) is amended—
(2) by adding at the end the following new paragraph:
“(5) Notwithstanding the preceding paragraphs of this subsection, beginning on October 1, 2026, except as provided in paragraphs (2) and (4), in no event shall payment be made to a State under this section for medical assistance furnished to an individual unless such individual is—
“(A) a resident of 1 of the 50 States, the District of Columbia, or a territory of the United States; and
“(B) either—
“(ii) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act, excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country;
(b) CHIP.—Section 2107(e)(1) of the Social Security Act, as amended by section 71103(b), is further amended—
(c) Implementation funding.—For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $15,000,000 for fiscal year 2026, to remain available until expended.
(a) In general.—Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended by adding at the end the following new subsection:
“(kk) FMAP for treatment of an emergency Medical condition.—Notwithstanding subsection (y) and (z), beginning on October 1, 2026, the Federal medical assistance percentage for payments for care and services described in paragraph (2) of subsection 1903(v) furnished to an alien described in paragraph (1) of such subsection shall not exceed the Federal medical assistance percentage determined under subsection (b) for such State.”.
(b) Implementation funding.—For the purposes of carrying out the provisions of, and the amendments made by this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $1,000,000 for fiscal year 2026, to remain available until expended.
The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the amendments made by the provisions of the final rule published by the Centers for Medicare & Medicaid Services on May 10, 2024, and titled “Medicare and Medicaid Programs; Minimum Staffing Standards for Long-Term Care Facilities and Medicaid Institutional Payment Transparency Reporting” (89 Fed. Reg. 40876) to the following sections of part 483 of title 42, Code of Federal Regulations:
(a) In general.—Section 1902(a)(34) of the Social Security Act (42 U.S.C. 1396a(a)(34)) is amended to read as follows:
“(34) provide that in the case of any individual who has been determined to be eligible for medical assistance under the plan and—
“(A) is enrolled under paragraph (10)(A)(i)(VIII), such assistance will be made available to the individual for care and services included under the plan and furnished in or after the month before the month in which the individual made application (or application was made on the individual's behalf in the case of a deceased individual) for such assistance if such individual was (or upon application would have been) eligible for such assistance at the time such care and services were furnished; or
“(B) is not described in subparagraph (A), such assistance will be made available to the individual for care and services included under the plan and furnished in or after the second month before the month in which the individual made application (or application was made on the individual's behalf in the case of a deceased individual) for such assistance if such individual was (or upon application would have been) eligible for such assistance at the time such care and services were furnished;”.
(b) Definition of medical assistance.—Section 1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) is amended by striking “in or after the third month before the month in which the recipient makes application for assistance” and inserting “, with respect to an individual described in section 1902(a)(34)(A), in or after the month before the month in which the recipient makes application for assistance, and with respect to an individual described in section 1902(a)(34)(B), in or after the second month before the month in which the recipient makes application for assistance”.
(c) CHIP.—Section 2102(b)(1)(B) of the Social Security Act (42 U.S.C. 1397bb(b)(1)(B)) is amended—
(3) by adding at the end the following new clause:
“(vi) shall, in the case that the State elects to provide child health or pregnancy-related assistance to an individual for any period prior to the month in which the individual made application for such assistance (or application was made on behalf of the individual), provide that such assistance is not made available to such individual for items and services included under the State child health plan (or waiver of such plan) that are furnished before the second month preceding the month in which such individual made application (or application was made on behalf of such individual) for assistance.”.
(d) Effective date.—The amendments made by this section shall apply to medical assistance, child health assistance, and pregnancy-related assistance with respect to individuals whose eligibility for such medical assistance, child health assistance, or pregnancy-related assistance is based on an application made on or after the first day of the first quarter that begins after December 31, 2026.
(e) Implementation funding.—For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $10,000,000 for fiscal year 2026, to remain available until expended.
(a) In general.—No Federal funds that are considered direct spending and provided to carry out a State plan under title XIX of the Social Security Act or a waiver of such a plan shall be used to make payments to a prohibited entity for items and services furnished during the 1-year period beginning on the date of the enactment of this Act, including any payments made directly to the prohibited entity or under a contract or other arrangement between a State and a covered organization.
(b) Definitions.—In this section:
(1) PROHIBITED ENTITY.—The term “prohibited entity” means an entity, including its affiliates, subsidiaries, successors, and clinics—
(A) that, as of the first day of the first quarter beginning after the date of enactment of this Act—
(i) is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code;
(ii) is an essential community provider described in section 156.235 of title 45, Code of Federal Regulations (as in effect on the date of enactment of this Act), that is primarily engaged in family planning services, reproductive health, and related medical care; and
(iii) provides for abortions, other than an abortion—
(II) in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed; and
(B) for which the total amount of Federal and State expenditures under the Medicaid program under title XIX of the Social Security Act for medical assistance furnished in fiscal year 2023 made directly, or by a covered organization, to the entity or to any affiliates, subsidiaries, successors, or clinics of the entity, or made to the entity or to any affiliates, subsidiaries, successors, or clinics of the entity as part of a nationwide health care provider network, exceeded $800,000.
(2) DIRECT SPENDING.—The term “direct spending” has the meaning given that term under section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)).
(3) COVERED ORGANIZATION.—The term “covered organization” means a managed care entity (as defined in section 1932(a)(1)(B) of the Social Security Act (42 U.S.C. 1396u–2(a)(1)(B))) or a prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D) of such Act (42 U.S.C. 1396b(m)(9)(D))).
(4) STATE.—The term “State” has the meaning given such term in section 1101 of the Social Security Act (42 U.S.C. 1301).
Section 1905(ii)(3) of the Social Security Act (42 U.S.C. 1396d(ii)(3)) is amended—
(a) Change in threshold for hold harmless provision of broad-based health care related taxes.—Section 1903(w)(4) of the Social Security Act (42 U.S.C. 1396b(w)(4)) is amended—
(1) in subparagraph (C)(ii), by inserting “, and for fiscal years beginning on or after October 1, 2026, the applicable percent determined under subparagraph (D) shall be substituted for ‘6 percent’ each place it appears” after “each place it appears”; and
(2) by inserting after subparagraph (C)(ii), the following new subparagraph:
“(D) (i) For purposes of subparagraph (C)(ii), the applicable percent determined under this subparagraph is— “(I) in the case of a non-expansion State or unit of local government in such State and a class of health care items or services described in section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025)— “(aa) if, on the date of enactment of this subparagraph, the non-expansion State or unit of local government in such State has enacted a tax and imposes such tax on such class and the Secretary determines that the tax is within the hold harmless threshold as of that date, the applicable percent of net patient revenue attributable to such class that has been so determined; and “(II) in the case of an expansion State or unit of local government in such State and a class of health care items or services described in section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025), subject to clause (iv)— “(aa) if, on the date of enactment of this subparagraph, the expansion State or unit of local government in such State has enacted a tax and imposes such tax on such class and the Secretary determines that the tax is within the hold harmless threshold as of that date, the lower of— “(AA) the applicable percent of net patient revenue attributable to such class that has been so determined; and “(BB) the applicable percent specified in clause (ii) for the fiscal year; and
“(iii) For purposes of clause (i):
“(iv) In the case of a tax of an expansion State or unit of local government in such State in effect on the date of enactment of this clause, that applies to a class of health care items or services that is described in paragraph (3) or (4) of section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025), and for which, on such date of enactment, is within the hold harmless threshold (as determined by the Secretary), the applicable percent of net patient revenue attributable to such class that has been so determined shall apply for a fiscal year instead of the applicable percent specified in clause (ii) for the fiscal year.”.
(b) Non-application to territories.—The amendments made by this section shall only apply with respect to a State that is 1 of the 50 States or the District of Columbia.
(c) Implementation funding.—For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $20,000,000 for fiscal year 2026, to remain available until expended.
(a) In general.—Subject to subsection (b), the Secretary of Health and Human Services (in this section referred to as the Secretary) shall revise section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a successor regulation) such that, with respect to a payment described in such section made for a service furnished during a rating period beginning on or after the date of the enactment of this Act, the total payment rate for such service is limited to—
(1) in the case of a State that provides coverage to all individuals described in section 1902(a)(10)(A)(i)(VIII) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) under the State plan (or waiver of such plan) of such State under title XIX of such Act, 100 percent of the specified total published Medicare payment rate (or, in the absence of a specified total published Medicare payment rate, the payment rate under a Medicaid State plan (or under a waiver of such plan)); or
(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 (or a good faith effort to receive such approval, as determined by the Secretary) was made before May 1, 2025, or a payment described in such section for a rural hospital (as defined in subsection (d)(2)) for which written prior approval (or a good faith effort to receive such approval, as determined by the Secretary) was made by the date of enactment of this Act, for the rating period occurring within 180 days of the date of the enactment of this Act, or a payment so described for such rating period for which a completed preprint was submitted to the Secretary prior to the date of enactment of this Act, beginning with the rating period on or after January 1, 2028, the total amount of such payment shall be reduced by 10 percentage points each year until the total payment rate for such service is equal to the rate for such service specified in subsection (a).
(c) Treatment of expansion states.—The revisions described in subsection (a) shall provide that, with respect to a State that begins providing the coverage described in paragraph (1) of such subsection on or after the date of the enactment of this Act, the limitation described in such paragraph shall apply to such State with respect to a payment described in section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a successor regulation) for a service furnished during a rating period beginning on or after the date of enactment of this Act.
(d) Definitions.—In this section:
(1) RATING PERIOD.—The term “rating period” has the meaning given such term in section 438.2 of title 42, Code of Federal Regulations (or a successor regulation).
(2) RURAL HOSPITAL.—The term “rural hospital” means the following:
(A) A subsection (d) hospital (as defined in paragraph (1)(B) of section 1886(d) of the Social Security Act (42 U.S.C. 1395ww(d))) that—
(B) A critical access hospital (as defined in section 1861(mm)(1) of such Act (42 U.S.C. 1395x(mm)(1))).
(C) A sole community hospital (as defined in section 1886(d)(5)(D)(iii) of such Act (42 U.S.C. 1395ww(d)(5)(D)(iii))).
(D) A Medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv) of such Act (42 U.S.C. 1395ww(d)(5)(G)(iv))).
(E) A low-volume hospital (as defined in section 1886(d)(12)(C) of such Act (42 U.S.C. 1395ww(d)(12)(C))).
(F) A rural emergency hospital (as defined in section 1861(kkk)(2) of such Act (42 U.S.C. 1395x(kkk)(2))).
(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—
(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) 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—
(a) In general.—Section 1115 of the Social Security Act (42 U.S.C. 1315) is amended by adding at the end the following new subsection:
“(g) Requirement of budget neutrality for Medicaid demonstration projects.—
“(1) IN GENERAL.—Beginning January 1 2027, the Secretary may not approve an application for (or renewal or amendment of) an experimental, pilot, or demonstration project undertaken under subsection (a) to promote the objectives of title XIX in a State (in this subsection referred to as a ‘Medicaid demonstration project’) unless the Chief Actuary for the Centers for Medicare & Medicaid Services certifies that such project, or, in the case of a renewal, the duration of the preceding waiver, is not expected to result in an increase in the amount of Federal expenditures compared to the amount that such expenditures would otherwise be in the absence of such project. For purposes of this subsection, expenditures for the coverage of populations and services that the State could have otherwise provided through its Medicaid State plan or other authority under title XIX, including expenditures that could be made under such authority but for the provision of such services at a different site of service than authorized under such State plan or other authority, shall be considered expenditures in the absence of such a project.
“(2) TREATMENT OF SAVINGS.—In the event that expenditures with respect to a State under a Medicaid demonstration project are, during an approval period for such project, less than the amount of such expenditures that would have otherwise been made in the absence of such project, the Secretary shall specify the methodology to be used with respect to the subsequent approval period for such project for purposes of taking the difference between such expenditures into account.”.
(b) Implementation funding.—For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $5,000,000 for each of fiscal years 2026 and 2027, to remain available until expended.
(a) In general.—Section 1902 of the Social Security Act (42 U.S.C. 1396a), as amended by sections 71103 and 71104, is further amended by adding at the end the following new subsection:
“(xx) Community engagement requirement for applicable individuals.—
“(1) IN GENERAL.—Except as provided in paragraph (11), beginning not later than the first day of the first quarter that begins after December 31, 2026, or, at the option of the State under a waiver or demonstration project under section 1115 or the State plan, such earlier date as the State may specify, subject to the succeeding provisions of this subsection, a State shall provide, as a condition of eligibility for medical assistance for an applicable individual, that such individual is required to demonstrate community engagement under paragraph (2)—
“(A) in the case of an applicable individual who has filed an application for medical assistance under a State plan (or a waiver of such plan) under this title, for 1 or more but not more than 3 (as specified by the State) consecutive months immediately preceding the month during which such individual applies for such medical assistance; and
“(B) in the case of an applicable individual enrolled and receiving medical assistance under a State plan (or under a waiver of such plan) under this title, for 1 or more (as specified by the State) months, whether or not consecutive—
“(i) during the period between such individual’s most recent determination (or redetermination, as applicable) of eligibility and such individual’s next regularly scheduled redetermination of eligibility (as verified by the State as part of such regularly scheduled redetermination of eligibility); or
“(ii) in the case of a State that has elected under paragraph (4) to conduct more frequent verifications of compliance with the requirement to demonstrate community engagement, during the period between the most recent and next such verification with respect to such individual.
“(2) COMMUNITY ENGAGEMENT COMPLIANCE DESCRIBED.—Subject to paragraph (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:
“(E) The individual engages in any combination of the activities described in subparagraphs (A) through (D), for a total of not less than 80 hours.
“(F) The individual has a monthly income that is not less than the applicable minimum wage requirement under section 6 of the Fair Labor Standards Act of 1938, multiplied by 80 hours.
“(G) The individual had an average monthly income over the preceding 6 months that is not less than the applicable minimum wage requirement under section 6 of the Fair Labor Standards Act of 1938 multiplied by 80 hours, and is a seasonal worker, as described in section 45R(d)(5)(B) of the Internal Revenue Code of 1986 .
“(3) EXCEPTIONS.—
“(A) MANDATORY EXCEPTION FOR CERTAIN INDIVIDUALS.—The State shall deem an applicable individual to have demonstrated community engagement under paragraph (2) for a month, and may elect to not require an individual to verify information resulting in such deeming, if—
“(i) for part or all of such month, the individual—
“(I) was a specified excluded individual (as defined in paragraph (9)(A)(ii)); or
“(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, under procedures established by the State (in accordance with standards specified by the Secretary), in the case of a short-term hardship event described in clause (ii)(II) and, upon the request of such individual, a short-term hardship event described in subclause (I) or (III) of clause (ii), deem such individual to have demonstrated community engagement under paragraph (2) for such month.
“(ii) SHORT-TERM HARDSHIP EVENT DEFINED.—For purposes of this subparagraph, an applicable individual experiences a short-term hardship event during a month if, for part or all of such month—
“(I) such individual receives inpatient hospital services, nursing facility services, services in an intermediate care facility for individuals with intellectual disabilities, inpatient psychiatric hospital services, or such other services of similar acuity (including outpatient care relating to other services specified in this subclause) as the Secretary determines appropriate;
“(II) such individual resides in a county (or equivalent unit of local government)—
“(III) such individual or their dependent must travel outside of their community for an extended period of time to receive medical services necessary to treat a serious or complex medical condition (as described in paragraph (9)(A)(ii)(V)(ee)) that are not available within their community of residence.
“(4) OPTION TO CONDUCT MORE FREQUENT COMPLIANCE VERIFICATIONS.—With respect to an applicable individual enrolled and receiving medical assistance under a State plan (or a waiver of such plan) under this title, the State shall verify (in accordance with procedures specified by the Secretary) that each such individual has met the requirement to demonstrate community engagement under paragraph (1) during each such individual’s regularly scheduled redetermination of eligibility, except that a State may provide for such verifications more frequently.
“(5) EX PARTE VERIFICATIONS.—For purposes of verifying that an applicable individual has met the requirement to demonstrate community engagement under paragraph (1), or determining such individual to be deemed to have demonstrated community engagement under paragraph (3), or that an individual is a specified excluded individual under paragraph (9)(A)(ii), the State shall, in accordance with standards established by the Secretary, establish processes and use reliable information available to the State (such as payroll data or payments or encounter data under this title for individuals and data on payments to such individuals for the provision of services covered under this title) without requiring, where possible, the applicable individual to submit additional information.
“(6) PROCEDURE IN THE CASE OF NONCOMPLIANCE.—
“(A) IN GENERAL.—If a State is unable to verify that an applicable individual has met the requirement to demonstrate community engagement under paragraph (1) (including, if applicable, by verifying that such individual was deemed to have demonstrated community engagement under paragraph (3)) the State shall (in accordance with standards specified by the Secretary)—
“(i) provide such individual with the notice of noncompliance described in subparagraph (B);
“(ii) (I) provide such individual with a period of 30 calendar days, beginning on the date on which such notice of noncompliance is received by the individual, to— “(aa) make a satisfactory showing to the State of compliance with such requirement (including, if applicable, by showing that such individual was or should be deemed to have demonstrated community engagement under paragraph (3)); or “(bb) make a satisfactory showing to the State that such requirement does not apply to such individual on the basis that such individual does not meet the definition of applicable individual under paragraph (9)(A); and
“(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—
“(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
“(7) TREATMENT OF NONCOMPLIANT INDIVIDUALS IN RELATION TO CERTAIN OTHER PROVISIONS.—
“(A) CERTAIN FMAP INCREASES.—A State shall not be treated as not providing medical assistance to all individuals described in section 1902(a)(10)(A)(i)(VIII), or as not expending amounts for all such individuals under the State plan (or waiver of such plan), solely because such an individual is determined ineligible for medical assistance under the State plan (or waiver) on the basis of a failure to meet the requirement to demonstrate community engagement under paragraph (1).
“(B) OTHER PROVISIONS.—For purposes of section 36B(c)(2)(B) of the Internal Revenue Code of 1986, an individual shall be deemed to be eligible for minimum essential coverage described in section 5000A(f)(1)(A)(ii) of such Code for a month if such individual would have been eligible for medical assistance under a State plan (or a waiver of such plan) under this title but for a failure to meet the requirement to demonstrate community engagement under paragraph (1).
“(8) OUTREACH.—
“(A) IN GENERAL.—In accordance with standards specified by the Secretary, beginning not later than the date that precedes December 31, 2026 (or, if the State elects under paragraph (1) to specify an earlier date, such earlier date) by the number of months specified by the State under paragraph (1)(A) plus 3 months, and periodically thereafter, the State shall notify applicable individuals enrolled under a State plan (or waiver) under this title of the requirement to demonstrate community engagement under this subsection. Such notice shall include information on—
“(i) how to comply with such requirement, including an explanation of the exceptions to such requirement under paragraph (3) and the definition of the term ‘applicable individual’ under paragraph (9)(A);
“(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—
“(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
“(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)—
“(II) who—
“(III) who is the parent, guardian, caretaker relative, or family caregiver (as defined in section 2 of the RAISE Family Caregivers Act) of a dependent child 13 years of age and under or a disabled individual;
“(IV) who is a veteran with a disability rated as total under section 1155 of title 38, United States Code;
“(V) who is medically frail or otherwise has special medical needs (as defined by the Secretary), including an individual—
“(10) PROHIBITING WAIVER OF COMMUNITY ENGAGEMENT REQUIREMENTS.—Notwithstanding section 1115(a), the provisions of this subsection may not be waived.
“(11) SPECIAL IMPLEMENTATION RULE.—
“(A) IN GENERAL.—Subject to subparagraph (C), the Secretary may exempt a State from compliance with the requirements of this subsection if—
“(B) GOOD FAITH EFFORT DETERMINATION.—In determining whether a State is demonstrating a good faith effort for purposes of subparagraph (A)(ii), the Secretary shall consider—
“(ii) any significant barriers to or challenges in meeting such requirements, including related to funding, design, development, procurement, or installation of necessary systems or resources;
“(C) DURATION OF EXEMPTION.—
“(i) IN GENERAL.—An exemption granted under subparagraph (A) shall expire not later than December 31, 2028, and may not be renewed beyond such date.
(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) Prohibiting conflicts of interest.—A State shall not use a Medicaid managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D)), or other contractor to determine beneficiary compliance under such section unless the contractor has no direct or indirect financial relationship with any Medicaid managed care entity or other specified entity that is responsible for providing or arranging for coverage of medical assistance for individuals enrolled with the entity pursuant to a contract with such State.
(d) Interim final rulemaking.—Not later than June 1, 2026, the Secretary of Health and Human Services shall promulgate an interim final rule for purposes of implementing the provisions of, and the amendments made by, this section. Any action taken to implement the provisions of, and the amendments made by, this section shall not be subject to the provisions of section 553 of title 5, United States Code.
(e) Development of government efficiency grants to States.—
(1) IN GENERAL.—In order for States to establish systems necessary to carry out the provisions of, and amendments made by, this section or other sections of this chapter that pertain to conducting eligibility determinations or redeterminations, the Secretary of Health and Human Services shall—
(2) AMOUNT SPECIFIED.—For purposes of paragraph (1)(A), the amount specified in this paragraph is an amount that bears the same ratio to the amount appropriated under paragraph (3)(A) as the number of applicable individuals (as defined in section 1902(xx) of the Social Security Act, as added by subsection (a)) residing in such State bears to the total number of such individuals residing in all States, as of March 31, 2025.
(f) Implementation funding.—For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $200,000,000 for fiscal year 2026, to remain available until expended.
(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 certain care, items, or services furnished to such an individual, as determined by the State. “(B) LIMITATIONS.— “(i) EXCLUSION OF CERTAIN SERVICES.—In no case may a deduction, cost sharing, or similar charge be imposed under the State plan with respect to care, items, or services described in any of subparagraphs (B) through (J) of subsection (a)(2), or any primary care services, mental health care services, substance use disorder services, or services provided by a Federally qualified health center (as defined in 1905(l)(2)), certified community behavioral health clinic (as defined in section 1905(jj)(2)), or rural health clinic (as defined in 1905(l)(1)), furnished to a specified individual. “(ii) ITEM AND SERVICE LIMITATION.— “(I) IN GENERAL.—Except as provided in subclause (II), in no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to care or an item or service furnished to a specified individual exceed $35. “(II) SPECIAL RULES FOR PRESCRIPTION DRUGS.—In no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to a prescription drug furnished to a specified individual exceed the limit that would be applicable under paragraph (2)(A)(i) or (2)(B) of section 1916A(c) with respect to such drug and individual if such drug so furnished were subject to cost sharing under such section. “(iii) MAXIMUM LIMIT ON COST SHARING.—The total aggregate amount of deductions, cost sharing, or similar charges imposed under the State plan for all individuals in the family may not exceed 5 percent of the family income of the family involved, as applied on a quarterly or monthly basis (as specified by the State). “(C) CASES OF NONPAYMENT.—Notwithstanding subsection (e), a State may permit a provider participating under the State plan to require, as a condition for the provision of care, items, or services to a specified individual entitled to medical assistance under this title for such care, items, or services, the payment of any deductions, cost sharing, or similar charges authorized to be imposed with respect to such care, items, or services. Nothing in this subparagraph shall be construed as preventing a provider from reducing or waiving the application of such deductions, cost sharing, or similar charges on a case-by-case basis. “(3) SPECIFIED INDIVIDUAL DEFINED.—For purposes of this subsection, the term ‘specified individual’ means an individual who has a family income (as determined in accordance with section 1902(e)(14)) that exceeds the poverty line (as defined in section 2110(c)(5)) applicable to a family of the size involved and— “(B) is described in such subsection and otherwise enrolled under a waiver of the State plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in section 1902(a)(10)(A)(i)(VIII).
(b) Conforming amendments.—
(1) REQUIRED APPLICATION.—Section 1902(a)(14) of the Social Security Act (42 U.S.C. 1396a(a)(14)) is amended by inserting “and provide for imposition of such deductions, cost sharing, or similar charges for care, items, or services furnished to specified individuals (as defined in paragraph (3) of section 1916(k)) in accordance with paragraph (2) of such section” after “section 1916”.
(2) NONAPPLICABILITY OF ALTERNATIVE COST SHARING.—Section 1916A(a)(1) of the Social Security Act (42 U.S.C. 1396o–1(a)(1)) is amended, in the second sentence, by striking “or (j)” and inserting “(j), or (k)”.
(c) Implementation funding.—For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $15,000,000 for fiscal year 2026, to remain available until expended.
(a) Expanding HCBS coverage under section 1915(c) waivers.—Section 1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) is amended—
(2) by adding at the end the following new paragraph:
“(11) Expanding coverage for home or community-based services.—
“(A) IN GENERAL.—Beginning July 1, 2028, notwithstanding paragraph (1), the Secretary may approve a waiver that is standalone from any other waiver approved under this subsection to include as medical assistance under the State plan of such State payment for part or all of the cost of home or community-based services (other than room and board (as described in paragraph (1))) approved by the Secretary which are provided pursuant to a written plan of care to individuals described in subparagraph (B)(iii). A waiver approved under this paragraph shall be for an initial term of 3 years and, upon the request of the State, shall be extended for additional 5-year periods unless the Secretary determines that for the previous waiver period the requirements specified under this subsection (excluding those excepted under subparagraph (B)) have not been met.
“(B) STATE REQUIREMENTS.—In addition to the requirements specified under this subsection (except for the requirements described in subparagraphs (C) and (D) of paragraph (2) and any other requirement specified under this subsection that the Secretary determines to be inapplicable in the context of a waiver that does not require individuals to have a determination described in paragraph (1)), a State shall meet the following requirements as a condition of waiver approval:
“(i) As of the date that such State requests a waiver under this subsection to provide home or community-based services to individuals described in clause (iii), all other waivers (if any) granted under this subsection to such State meet the requirements of this subsection.
“(ii) The State demonstrates to the Secretary that approval of a waiver under this subsection with respect to individuals described in clause (iii) will not result in a material increase of the average amount of time that individuals with respect to whom a determination described in paragraph (1) has been made will need to wait to receive home or community-based services under any other waiver granted under this subsection, as determined by the Secretary.
“(iii) The State establishes needs-based criteria, subject to the approval of the Secretary, regarding who will be eligible for home or community-based services under a waiver approved under this paragraph without requiring such individuals to have a determination described in paragraph (1), and specifies the home or community-based services such individuals so eligible will receive.
“(iv) The State establishes needs-based criteria for determining whether an individual described in clause (iii) requires the level of care provided in a hospital, nursing facility, or an intermediate care facility for individuals with developmental disabilities under the State plan or under any waiver of such plan that are more stringent than the needs-based criteria established under clause (iii) for determining eligibility for home or community-based services.
“(v) The State attests that the State’s average per capita expenditure for medical assistance under the State plan (or waiver of such plan) provided with respect to such individuals enrolled in a waiver under this paragraph will not exceed the State’s average per capita expenditure for medical assistance for individuals receiving institutional care under the State plan (or waiver of such plan) for the duration that the waiver under this paragraph is in effect.
“(vi) The State provides to the Secretary data (in such form and manner as the Secretary may specify) regarding the number of individuals described in clause (iii) with respect to a State seeking approval of a waiver under this subsection, to whom the State will make such services available under such waiver.
“(vii) The State agrees to provide to the Secretary, not less frequently than annually, data for purposes of paragraph (2)(E) (in such form and manner as the Secretary may specify) regarding, with respect to each preceding year in which a waiver under this subsection to provide home or community-based services to individuals described in clause (iii) was in effect—
“(I) the cost (as such term is defined by the Secretary) of such services furnished to individuals described in clause (iii), broken down by type of service;
“(II) with respect to each type of home or community-based service provided under the waiver, the length of time that such individuals have received such service;
“(C) LIMITATION ON PAYMENTS.—No payments made to carry out this paragraph shall be used by a State to make payments to a third party on behalf of an individual practitioner for benefits such as health insurance, skills training, and other benefits customary for employees, in the case of a class of practitioners for which the program established under this title is the primary source of revenue.”.
(b) Implementation funding.—
(1) IN GENERAL.—There are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services—
(A) for fiscal year 2026, $50,000,000 for purposes of carrying out the provisions of, and the amendments made by, this section, to remain available until expended; and
(B) for fiscal year 2027, $100,000,000 for purposes of making payments to States, subject to paragraph (2), to support State systems to deliver home or community-based services under section 1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) (as amended by this section) or under section 1115 of such Act (42 U.S.C. 1315), to remain available until expended.
(2) PAYMENTS BASED ON STATE HCBS ELIGIBLE POPULATION.—Payments to States from amounts made available by paragraph (1)(B) shall be made, with respect to a State, on the basis of the proportion of the population of the State that is receiving home or community-based services under section1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) (as amended by this section) or under section 1115 of such Act (42 U.S.C. 1315), as compared to all States.
Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is amended by adding at the end the following new section:
“SEC. 1899C. Limiting Medicare coverage of certain individuals.
“(a) In general.—Subject to subsection (b), an individual may be entitled to, or enrolled for, benefits under this title only if the individual is—
“(2) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act;
“(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 18 months after such date of enactment.
“(2) REVIEW BY COMMISSIONER OF SOCIAL SECURITY.—
“(A) IN GENERAL.—Not later than 1 year after the date of the enactment of this section, the Commissioner of Social Security shall complete a review of individuals entitled to, or enrolled for, benefits under this title as of such date of enactment for purposes of identifying individuals not described in any of paragraphs (1) through (4) of subsection (a).
“(B) NOTICE.—The Commissioner of Social Security shall notify each individual identified under the review conducted under subparagraph (A) that such individual's entitlement to, or enrollment for, benefits under this title will be terminated as of the date that is 18 months after the date of the enactment of this section. Such notification shall be made as soon as practicable after such identification and in a manner designed to ensure such individual's comprehension of such notification.”.
(a) In general.—Section 1848(t) of the Social Security Act (42 U.S.C. 1395w–4(t)) is amended—
(b) Conforming amendment.—Section 1848(c)(2)(B)(iv)(V) of the Social Security Act (42 U.S.C. 1395w–4(c)(2)(B)(iv)(V)) is amended by striking “or 2024” and inserting “2024, or 2026”.
(a) In general.—Section 1192(e) of the Social Security Act (42 U.S.C. 1320f–1(e)) is amended—
(1) in paragraph (1), in the matter preceding subparagraph (A), by striking “and (3)” and inserting “through (4)”;
(2) in paragraph (3)(A)—
(3) by adding at the end the following new paragraph:
“(4) TREATMENT OF FORMER ORPHAN DRUGS.—In the case of a drug or biological product that, as of the date of the approval or licensure of such drug or biological product, is a drug or biological product described in paragraph (3)(A), paragraph (1)(A)(ii) or (1)(B)(ii) (as applicable) shall apply as if the reference to ‘the date of such approval’ or ‘the date of such licensure’, respectively, were instead a reference to ‘the first day after the date of such approval for which such drug is not a drug described in paragraph (3)(A)’ or ‘the first day after the date of such licensure for which such biological product is not a biological product described in paragraph (3)(A)’, respectively.”.
(b) Application.—The amendments made by subsection (a) shall apply with respect to initial price applicability years (as defined in section 1191(b) of the Social Security Act (42 U.S.C. 1320f(b))) beginning on or after January 1, 2028.
(a) In general.—Section 36B(e)(1) is amended by inserting “or, in the case of aliens who are lawfully present, are not eligible aliens” after “individuals who are not lawfully present”.
(b) Eligible aliens.—Section 36B(e)(2) is amended—
(1) by striking “For purposes of this section, an individual” and inserting “For purposes of this section—
(2) by adding at the end the following new subparagraph:
“(B) ELIGIBLE ALIENS.—An individual who is an alien and lawfully present shall be treated as an eligible alien if such individual is, and is reasonably expected to be for the entire period of enrollment for which the credit under this section is being claimed—
“(i) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.),
“(ii) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96–422); or
“(iii) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the 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
(C) in subsection (c)(2)(B)(ii), by adding at the end the following new subclause:
“(III) In the case of an individual described in clause (i)(I) with respect to whom a premium tax credit under section 36B of the Internal Revenue Code of 1986 is being claimed, the attestation that the individual is an eligible alien (within the meaning of section 36B(e)(2) of such Code).”.
(2) ADVANCE DETERMINATIONS.—Section 1412(d) of the Patient Protection and Affordable Care Act (42 U.S.C. 18082(d)) is amended by inserting before the period at the end the following: “, or credits under section 36B of the Internal Revenue Code of 1986 for aliens who are not eligible aliens (within the meaning of section 36B(e)(2) of such Code)”.
(d) 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))”.
(a) In general.—Section 36B(c)(1) is amended by striking subparagraph (B).
(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—
“(B) APPLICABLE ENROLLMENT INFORMATION.—For purposes of subparagraph (A), applicable enrollment information shall include affirmation of at least the following information (to the extent relevant in determining eligibility described in subparagraph (A)):
“(C) VERIFICATION OF PAST MONTHS.—In the case of a month that begins before verification prescribed by subparagraph (A), such month shall be treated as a coverage month if the Exchange verifies for such month (using applicable enrollment information that shall be provided or verified by the applicant) such individual's eligibility to have so enrolled and for any such advance payment.
“(D) EXCHANGE PARTICIPATION; COORDINATION WITH OTHER PROCEDURES FOR DETERMINING ELIGIBILITY.—An individual shall not, solely by reason of failing to meet the requirements of this paragraph with respect to a month, be treated for such month as ineligible to enroll in a qualified health plan through an Exchange.
“(E) WAIVER FOR CERTAIN SPECIAL ENROLLMENT PERIODS.—The Secretary may waive the application of subparagraph (A) in the case of an individual who enrolls in a qualified health plan through an Exchange for 1 or more months of the taxable year during a special enrollment period provided by the Exchange on the basis of a change in the family size of the individual.
“(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)(iii) of title 45, Code of Federal Regulations (as published in the Federal Register on June 25, 2025 (90 Fed. Reg. 27074), applied as though it applied to all plan years after 2025), with respect to the individual.”.
(b) Pre-enrollment verification process required.—Section 36B(c)(3)(A) is amended—
(2) by adding at the end the following new clause:
“(ii) PRE-ENROLLMENT VERIFICATION PROCESS REQUIRED.—Such term shall not include any plan enrolled in through an Exchange, unless such Exchange provides a process for pre-enrollment verification through which any applicant may, beginning not later than August 1, verify with the Exchange the applicant's household income and eligibility for enrollment in such plan for plan years beginning in the subsequent year.”.
(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—
(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)”.
(a) In general.—Subparagraph (E) of section 223(c)(2) is amended to read as follows:
(b) Certain coverage disregarded.—Clause (ii) of section 223(c)(1)(B) is amended by striking “(in the case of months or plan years to which paragraph (2)(E) applies)”.
(a) In general.—Section 223(c)(2) is amended by adding at the end the following new subparagraph:
(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—
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:
(c) Inflation adjustment.—Section 223(g)(1) is amended—
(1) by striking “in subsections (b)(2) and (c)(2)(A)” and inserting “in subsections (b)(2), (c)(2)(A), and in the case of taxable years beginning after 2026, (c)(1)(E)(ii)(II)”,
(a) In general.—Section 2105 of the Social Security Act (42 U.S.C. 1397ee) is amended by adding at the end the following new subsection:
“(h) Rural health transformation program.—
“(1) APPROPRIATION.—
“(A) IN GENERAL.—There are appropriated, out of any money in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services (in this subsection referred to as the ‘Administrator’), to provide allotments to States for purposes of carrying out the activities described in paragraph (6)—
“(B) UNEXPENDED OR UNOBLIGATED FUNDS.—
“(i) IN GENERAL.—Any amounts appropriated under subparagraph (A) that are unexpended or unobligated as of October 1, 2032, shall be returned to the Treasury of the United States.
“(ii) REDISTRIBUTION OF UNEXPENDED OR UNOBLIGATED FUNDS.—In carrying out subparagraph (A), the Administrator shall, not later than March 31, 2028, and annually thereafter through March 31, 2032, determine the amount of funds, if any, that are available under such subparagraph for a previous fiscal year, are unexpended or unobligated with respect to such fiscal year, and will not be available to a State in the current fiscal year, pursuant to clause (iii).
“(iii) AVAILABILITY OF FUNDS.—
“(I) IN GENERAL.—Amounts allotted to a State under this subsection for a year shall be available for expenditure by the State through the end of the fiscal year following the fiscal year in which such amounts are allotted.
“(II) AVAILABILITY OF AMOUNTS REDISTRIBUTED.—Amounts redistributed to a State under clause (ii) with respect to a fiscal year shall be available for expenditure by the State through the end of the fiscal year following the fiscal year in which such amounts are redistributed (except in the case of amounts redistributed in fiscal year 2032 which shall only be available for expenditure through September 30, 2032).
“(iv) MISUSE OF FUNDS.—If the Administrator determines that a State is not using amounts allotted or redistributed to the State under this subsection in a manner consistent with the description provided by the State in its application approved under paragraph (2), the Administrator may withhold payments to, or reduce payments to, or recover previous payments from, the State under this subsection as the Administrator deems appropriate, and any amounts so withheld, or that remain after any such reduction, or so recovered, shall be returned to the Treasury of the United States.
“(2) APPLICATION.—
“(A) IN GENERAL.—To be eligible for an allotment under this subsection, a State shall submit to the Administrator during an application submission period to be specified by the Administrator (but that ends not later than December 31, 2025) an application in such form and manner as the Administrator may specify, that includes—
“(i) a detailed rural health transformation plan—
“(I) to improve access to hospitals, other health care providers, and health care items and services furnished to rural residents of the State;
“(III) to prioritize the use of new and emerging technologies that emphasize prevention and chronic disease management;
“(IV) to initiate, foster, and strengthen local and regional strategic partnerships between rural hospitals and other health care providers in order to promote measurable quality improvement, increase financial stability, maximize economies of scale, and share best practices in care delivery;
“(V) to enhance economic opportunity for, and the supply of, health care clinicians through enhanced recruitment and training;
“(VI) to prioritize data and technology driven solutions that help rural hospitals and other rural health care providers furnish high-quality health care services as close to a patient's home as is possible;
“(ii) a certification that none of the amounts provided under this subsection shall be used by the State for an expenditure that is attributable to an intergovernmental transfer, certified public expenditure, or any other expenditure to finance the non-Federal share of expenditures required under any provision of law, including under the State plan established under this title, the State plan established under title XIX, or under a waiver of such plans; and
“(B) DEADLINE FOR APPROVAL.—Not later than December 31, 2025, the Administrator shall approve or deny all applications submitted for an allotment under this subsection.
“(3) ALLOTMENTS.—
“(A) IN GENERAL.—For each of fiscal years 2026 through 2030, the Administrator shall determine under subparagraph (B) the amount of the allotment for such fiscal year for each State with an approved application under this subsection.
“(B) AMOUNT DETERMINED.—Subject to subparagraph (C), from the amounts appropriated under paragraph (1)(A) for each of fiscal years 2026 through 2030, the Administrator shall allot—
“(C) REQUIREMENTS.—In determining the amount to be allotted to a State under clause (ii) of subparagraph (B) for a fiscal year, the Administrator shall—
“(i) ensure that not less than 1⁄4 of the States with an approved application under this subsection for a fiscal year are allotted funds from amounts that are to be allotted under clause (ii) of such subparagraph; and
“(ii) consider—
“(I) the percentage of the State population that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725));
“(D) RURAL HEALTH FACILITY DEFINED.—For the purposes of subparagraph (C)(ii), the term ‘rural health facility’ means the following:
“(xi) An opioid treatment program (as defined in section 1861(jjj)(2)) that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)).
“(xii) A certified community behavioral health clinic (as defined in section 1905(jj)(2)) that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)).
“(4) NO MATCHING PAYMENT.—A State approved for an allotment under this subsection for a fiscal year shall not be required to provide any matching funds as a condition for receiving payments from the allotment.
“(5) TERMS AND CONDITIONS.—The Administrator shall specify such terms and conditions for allotments to States provided under this subsection as the Administrator deems appropriate, including the following:
“(6) USE OF FUNDS.—Amounts allotted to a State under this subsection shall be used for 3 or more of the following health-related activities:
“(A) Promoting evidence-based, measurable interventions to improve prevention and chronic disease management.
“(B) Providing payments to health care providers for the provision of health care items or services, as specified by the Administrator.
“(C) Promoting consumer-facing, technology-driven solutions for the prevention and management of chronic diseases.
“(D) Providing training and technical assistance for the development and adoption of technology-enabled solutions that improve care delivery in rural hospitals, including remote monitoring, robotics, artificial intelligence, and other advanced technologies.
“(E) Recruiting and retaining clinical workforce talent to rural areas, with commitments to serve rural communities for a minimum of 5 years.
“(F) Providing technical assistance, software, and hardware for significant information technology advances designed to improve efficiency, enhance cybersecurity capability development, and improve patient health outcomes.
“(G) Assisting rural communities to right size their health care delivery systems by identifying needed preventative, ambulatory, pre-hospital, emergency, acute inpatient care, outpatient care, and post-acute care service lines.
“(H) Supporting access to opioid use disorder treatment services (as defined in section 1861(jjj)(1)), other substance use disorder treatment services, and mental health services.
“(7) EXEMPTIONS.—Paragraphs (2), (3), (5), (6), (8), (10), (11), and (12) of subsection (c) do not apply to payments under this subsection.
(b) Conforming amendments.—Title XXI of the Social Security Act (42 U.S.C. 1397aa) is amended—
(1) in section 2101—
(c) Implementation.—The Administrator of the Centers for Medicare & Medicaid Services shall implement this section, including the amendments made by this section, by program instruction or other forms of program guidance.
(d) Implementation funding.—For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $200,000,000 for fiscal year 2025, to remain available until expended.
The limitation under section 3101(b) of title 31, United States Code, as most recently increased by section 401(b) of Public Law 118–5 (31 U.S.C. 3101 note), is increased by $5,000,000,000,000.
(a) Prohibition on use of Federal funds.—
(1) IN GENERAL.—No Federal funds may be used—
(2) COMPLIANCE.—
(A) SELF-CERTIFICATION.—Any application for unemployment compensation under an unemployment compensation program of the United States shall include a form or procedure for an individual applicant to certify that such individual's wages during the individual's base period do not equal or exceed $1,000,000.
(3) RECOVERY OF OVERPAYMENTS.—Each State agency that is responsible for administering any unemployment compensation program of the United States shall require individuals who have received amounts of unemployment compensation under such a program to which they were not entitled to repay such amounts.
(b) Unemployment compensation program of the United States defined.—In this section, the term “unemployment compensation program of the United States” means—
(1) unemployment compensation for Federal civilian employees under subchapter I of chapter 85 of title 5, United States Code;
(2) unemployment compensation for ex-servicemembers under subchapter II of chapter 85 of title 5, United States Code;
(3) extended benefits under the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note);
(a) Exemption of certain assets.—Section 480(f)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended—
(b) Effective date and application.—The amendments made by subsection (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 (20 U.S.C. 1001 et seq.).
Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is amended—
(1) in paragraph (3)—
(B) by striking subparagraph (A) and inserting the following:
“(A) TERMINATION OF AUTHORITY TO MAKE INTEREST SUBSIDIZED LOANS TO GRADUATE AND PROFESSIONAL STUDENTS.—Subject to subparagraph (B), and notwithstanding any provision of this part or part B—
“(i) for any period of instruction beginning on or after July 1, 2012, a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part; and
“(ii) for any period of instruction beginning on July 1, 2012, and ending on June 30, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the maximum annual amount for such student determined under section 428H, plus an amount equal to the amount of Federal Direct Stafford loans the student would have received in the absence of this subparagraph.”; and
(C) by adding at the end the following:
“(C) TERMINATION OF AUTHORITY TO MAKE FEDERAL DIRECT PLUS LOANS TO GRADUATE AND PROFESSIONAL STUDENTS.—Subject to paragraph (8) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2026, a graduate or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part.”; and
(2) by adding at the end the following:
“(4) GRADUATE AND PROFESSIONAL ANNUAL AND AGGREGATE LIMITS FOR FEDERAL DIRECT UNSUBSIDIZED STAFFORD LOANS BEGINNING JULY 1, 2026.—
“(A) ANNUAL LIMITS BEGINNING JULY 1, 2026.—Subject to paragraphs (7)(A) and (8), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans—
“(B) AGGREGATE LIMITS.—Subject to paragraphs (6), (7)(A), and (8), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans, in addition to the amount borrowed for undergraduate education, that—
“(i) a graduate student—
“(C) DEFINITIONS.—
“(i) GRADUATE STUDENT.—The term ‘graduate student’ means a student enrolled in a program of study that awards a graduate credential (other than a professional degree) upon completion of the program.
“(ii) PROFESSIONAL STUDENT.—In this paragraph, the term ‘professional student’ means a student enrolled in a program of study that awards a professional degree, as defined under section 668.2 of title 34, Code of Federal Regulations (as in effect on the date of enactment of this paragraph), upon completion of the program.
“(5) PARENT BORROWER ANNUAL AND AGGREGATE LIMITS FOR FEDERAL DIRECT PLUS LOANS BEGINNING JULY 1, 2026.—
“(A) ANNUAL LIMITS.—Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, for each dependent student, the total maximum annual amount of Federal Direct PLUS loans that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $20,000.
“(B) AGGREGATE LIMITS.—Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, for each dependent student, the total maximum aggregate amount of Federal Direct PLUS loans that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $65,000, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan.
“(6) LIFETIME MAXIMUM AGGREGATE AMOUNT FOR ALL STUDENTS.—Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, the maximum aggregate amount of loans made, insured, or guaranteed under this title that a student may borrow (other than a Federal Direct PLUS loan, or loan under section 428B, made to the student as a parent borrower on behalf of a dependent student) shall be $257,500, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan.
“(7) ADDITIONAL RULES REGARDING ANNUAL LOAN LIMITS.—
“(A) LESS THAN FULL-TIME ENROLLMENT.—Notwithstanding any provision of this part or part B, in any case in which a student is enrolled in a program of study of an institution of higher education on less than a full-time basis during any academic year, the amount of a loan that student may borrow for an academic year or its equivalent shall be reduced in direct proportion to the degree to which that student is not so enrolled on a full-time basis, rounded to the nearest whole percentage point, as provided in a schedule of reductions published by the Secretary computed for purposes of this subparagraph.
“(B) INSTITUTIONALLY DETERMINED LIMITS.—Notwithstanding the annual loan limits established under this section and, for undergraduate students, under this part and part B, beginning on July 1, 2026, an institution of higher education (at the discretion of a financial aid administrator at the institution) may limit the total amount of loans made under this part for a program of study for an academic year that a student may borrow, and that a parent may borrow on behalf of such student, as long as any such limit is applied consistently to all students enrolled in such program of study.
“(8) INTERIM EXCEPTION FOR CERTAIN STUDENTS.—
“(A) APPLICATION OF PRIOR LIMITS.—Paragraphs (3)(C), (4), (5), and (6) shall not apply, and paragraph (3)(A)(ii) shall apply as such paragraph was in effect for periods of instruction ending before June 30, 2026, during the expected time to credential described in subparagraph (B), with respect to an individual who, as of June 30, 2026—
“(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—
“(C) DEFINITION OF PROGRAM LENGTH.—In this paragraph, the term ‘program length’ means the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution of higher education for a full-time student to complete the requirements for a specific program of study.”.
(a) Transition to income-based repayment plans.—
(1) SELECTION.—The Secretary of Education shall take such steps as may be necessary to ensure that before July 1, 2028, each borrower who has one or more loans that are in a repayment status in accordance with, or an administrative forbearance associated with, an income contingent repayment plan authorized under section 455(e) of the Higher Education Act of 1965 (referred to in this subsection as “covered income contingent loans”) selects one of the following income-based repayment plans that is otherwise applicable, and for which that borrower is otherwise eligible, for the repayment of the covered income contingent loans of the borrower:
(2) COMMENCEMENT OF NEW REPAYMENT PLAN.—Beginning on July 1, 2028, a borrower described in paragraph (1) shall begin repaying the covered income contingent loans of the borrower in accordance with the repayment plan selected under paragraph (1), unless the borrower chooses to begin repaying in accordance with the repayment plan selected under paragraph (1) before such date.
(3) FAILURE TO SELECT.—In the case of a borrower described in paragraph (1) who fails to select a repayment plan in accordance with such paragraph, the Secretary of Education shall—
(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”;
(C) in subparagraph (E)—
(i) by striking “that enables borrowers who have a partial financial hardship to make a lower monthly payment”;
(ii) by striking “a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan under section 428B made on behalf of a dependent student” and inserting “an excepted Consolidation Loan (as defined in section 493C(a)(2))”; and
(D) by adding at the end the following:
“(F) beginning on July 1, 2026, the income-based Repayment Assistance Plan under subsection (q), provided that—
“(i) such Plan shall not be available for the repayment of excepted loans (as defined in paragraph (7)(E)); and
“(ii) the borrower is required to pay each outstanding loan of the borrower made under this part under such Repayment Assistance Plan, except that a borrower of an excepted loan (as defined in paragraph (7)(E)) may repay the excepted loan separately from other loans under this part obtained by the borrower.”;
(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.
“(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—
“(bb) for a borrower with total outstanding principal of not less than $25,000 and less than $50,000, a period of 15 years;
“(B) SELECTION BY SECRETARY.—If a borrower of a loan made under this part on or after July 1, 2026, does not select a repayment plan described in subparagraph (A), the Secretary shall provide the borrower with the standard repayment plan described in subparagraph (A)(i).
“(C) SELECTION APPLIES TO ALL OUTSTANDING LOANS.—A borrower is required to pay each outstanding loan of the borrower made under this part under the same selected repayment plan, except that a borrower who selects the Repayment Assistance Plan and also has an excepted loan that is not eligible for repayment under such Repayment Assistance Plan shall repay the excepted loan separately from other loans under this part obtained by the borrower.
“(D) CHANGES OF REPAYMENT PLAN.—A borrower may change the borrower’s selection of—
“(E) REPAYMENT FOR BORROWERS WITH EXCEPTED 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 received an excepted loan made on or after such date (including such a borrower who also has an excepted loan made before such date) to repay each excepted loan, including principal and interest on those excepted loans, under the standard repayment plan under subparagraph (A)(i). The borrower shall be entitled to accelerate, without penalty, repayment on such loans.
(c) Elimination of authority to provide income contingent repayment plans.—
(1) REPEAL.—Subsection (e) of section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e(e)) is repealed.
(2) FURTHER AMENDMENTS TO ELIMINATE INCOME CONTINGENT REPAYMENT.—
(A) Section 428 of the Higher Education Act of 1965 (20 U.S.C. 1078) is amended—
(i) in subsection (b)(1)(D), by striking “be subject to income contingent repayment in accordance with subsection (m)” and inserting “be subject to income-based repayment in accordance with subsection (m)”; and
(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
(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—
(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 (4)(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.
“(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—
“(E) The Secretary shall cancel any outstanding balance of principal and interest due on a loan made under this part to a borrower—
“(i) who, for any period of time, participated in the Repayment Assistance Plan under this subsection;
“(F) For the purposes of this subsection, the term ‘qualifying monthly payment’ means any of the following:
“(ii) An on-time monthly payment under the standard repayment plan under subsection (d)(7)(A)(i) of not less than the monthly payment required under such plan.
“(iii) A monthly payment under any repayment plan (excluding the Repayment Assistance Plan under this subsection) of not less than the monthly payment that would be required under a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years.
“(iv) A monthly payment under section 493C of not less than the monthly payment required under such section, including a monthly payment equal to the minimum payment amount permitted under such section.
“(v) A monthly payment made before July 1, 2028, under an income contingent repayment plan carried out under section 455(d)(1)(D) (or under an alternative repayment plan in lieu of repayment under such an income contingent repayment plan, if placed in such an alternative repayment plan by the Secretary) of not less than the monthly payment required under such a plan, including a monthly payment equal to the minimum payment amount permitted under such a plan.
“(vi) A month when the borrower did not make a payment because the borrower was in deferment under subsection (f)(2)(B) or due to an economic hardship described in subsection (f)(2)(D).
“(vii) A month that ended before the date of enactment of this subsection when the borrower did not make a payment because the borrower was in a period of deferment or forbearance described in section 685.209(k)(4)(iv) of title 34, Code of Federal Regulations (as in effect on the date of enactment of this subsection).
“(G) The procedures established by the Secretary under section 493C(c) shall apply for annually determining the borrower’s eligibility for the Repayment Assistance Plan, including verification of a borrower’s annual income and the annual amount due on the total amount of loans eligible to be repaid under this subsection, and such other procedures as are necessary to effectively implement income-based repayment under this subsection. With respect to carrying out section 494(a)(2) for the Repayment Assistance Plan, an individual may elect to opt out of the disclosures required under section 494(a)(2)(A)(ii) in accordance with the procedures established under section 493C(c)(2).
“(2) BALANCE ASSISTANCE FOR DISTRESSED BORROWERS.—
“(A) INTEREST SUBSIDY.—With respect to a borrower of a loan made under this part, for each month for which such a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment is insufficient to pay the total amount of interest that accrues for the month on all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection, the amount of interest accrued and not paid for the month shall not be charged to the borrower.
“(B) 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—
“(3) ADDITIONAL DOCUMENTS.—A borrower who chooses, or is required, to repay a loan under this subsection, and for whom adjusted gross income is unavailable or does not reasonably reflect the borrower's current income, shall provide to the Secretary other documentation of income satisfactory to the Secretary, which documentation the Secretary may use to determine repayment under this subsection.
“(4) DEFINITIONS.—In this subsection:
“(A) ADJUSTED GROSS INCOME.—The term ‘adjusted gross income’, when used with respect to a borrower, means the adjusted gross income (as such term is defined in section 62 of the Internal Revenue Code of 1986) of the borrower (and the borrower’s spouse, as applicable) for the most recent taxable year, except that, in the case of a married borrower who files a separate Federal income tax return, the term does not include the adjusted gross income of the borrower’s spouse.
“(B) APPLICABLE MONTHLY PAYMENT.—
“(i) IN GENERAL.—Except as provided in clause (ii), (iii), or (vi), the term ‘applicable monthly payment’ means, when used with respect to a borrower, the amount equal to—
“(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—
“(v) DEPENDENT.—For the purposes of this paragraph, the term ‘dependent’ means an individual who is a dependent under section 152 of the Internal Revenue Code of 1986.
“(vi) SPECIAL RULE.—In the case of a borrower who is required by the Secretary to provide information to the Secretary to determine the applicable monthly payment of the borrower under this subparagraph, and who does not comply with such requirement, the applicable monthly payment of the borrower shall be—
“(I) the sum of the monthly payment amounts the borrower would have paid for each of the borrower’s loans made under this part under a standard repayment plan with a fixed monthly repayment amount, paid over a period of 10 years, based on the outstanding principal due on such loan when such loan entered repayment; and
(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.—A Federal Direct Consolidation Loan offered to a borrower under this part on or after July 1, 2026, may only be repaid pursuant to a repayment plan described in clause (i) or (ii) of subsection (d)(7)(A) of this section, as applicable, and the repayment schedule of such a Consolidation Loan shall be determined in accordance with such repayment plan.”.
(f) Income-Based repayment.—
(1) AMENDMENTS.—
(A) EXCEPTED CONSOLIDATION LOAN DEFINED.—Section 493C(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1098e(a)(2)) is amended to read as follows:
“(2) EXCEPTED CONSOLIDATION LOAN.—
“(A) IN GENERAL.—The term ‘excepted consolidation loan’ means—
“(B) EXCLUSION.—The term ‘excepted consolidation loan’ does not include a Federal Direct Consolidation Loan described in subparagraph (A) that, on any date during the period beginning on the date of enactment of this subparagraph and ending on June 30, 2028, was being repaid—
(B) TERMINATION OF PARTIAL FINANCIAL HARDSHIP ELIGIBILITY.—Section 493C(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 1098e(a)(3)) is amended to read as follows:
“(3) APPLICABLE AMOUNT.—The term ‘applicable amount’ means 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which—
“(B) 150 percent of the poverty line applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)).”.
(C) TERMS OF INCOME-BASED REPAYMENT.—Section 493C(b) of the Higher Education Act of 1965 (20 U.S.C. 1098e(b)) is amended—
(ii) by striking paragraph (6) and inserting the following:
“(6) if the monthly payment amount calculated under this section for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) exceeds the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection (referred to in this paragraph as the ‘standard monthly repayment amount’), or if the borrower no longer wishes to continue the election under this subsection, then—
(D) ELIGIBILITY DETERMINATIONS.—Section 493C(c) of the Higher Education Act of 1965 (20 U.S.C. 1098e(c)) is amended to read as follows:
“(c) Eligibility determinations; automatic recertification.—
“(1) IN GENERAL.—The Secretary shall establish procedures for annually determining, in accordance with paragraph (2), the borrower’s eligibility for income-based repayment, including the verification of a borrower’s annual income and the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), and such other procedures as are necessary to effectively implement income-based repayment under this section. The Secretary shall consider, but is not limited to, the procedures established in accordance with section 455(e)(1) (as in effect on the day before the date of repeal of subsection (e) of section 455) or in connection with income sensitive repayment schedules under section 428(b)(9)(A)(iii) or 428C(b)(1)(E).
“(2) AUTOMATIC RECERTIFICATION.—
“(A) IN GENERAL.—The Secretary shall establish and implement, with respect to any borrower enrolled in an income-based repayment program under this section or under section 455(q), procedures to—
“(i) use return information disclosed under section 6103(l)(13) of the Internal Revenue Code of 1986, pursuant to approval provided under section 494, to determine the repayment obligation of the borrower without further action by the borrower;
“(ii) allow the borrower (or the spouse of the borrower), at any time, to opt out of disclosure under such section 6103(l)(13) and instead provide such information as the Secretary may require to determine the repayment obligation of the borrower (or withdraw from the repayment plan under this section or under section 455(q), as the case may be); and
“(B) APPLICABILITY.—Subparagraph (A) shall apply to each borrower of a loan eligible to be repaid under this section or under section 455(q), who, on or after the date on which the Secretary establishes procedures under such subparagraph (A)—
(E) SPECIAL TERMS FOR NEW BORROWERS ON AND AFTER JULY 1, 2014.—Section 493C(e) of the Higher Education Act of 1965 (20 U.S.C. 1098e(e)) is amended—
(g) FFEL adjustment.—Section 428(b)(9)(A)(v) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(9)(A)(v)) is amended by striking “who has a partial financial hardship”.
(a) Sunset of economic hardship and unemployment deferments.—Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended—
(b) Forbearance on loans made under this part on or after July 1, 2027.—Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended by adding at the end the following:
(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 beginning on July 1, 2027, and shall apply with respect to any loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
(b) Minimum monthly payment amount.—Section 428F(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1078–6(a)(1)(B)) is amended by adding at the end the following: “With respect to a borrower who has 1 or more loans made under part D on or after July 1, 2027 that are described in subparagraph (A), the total monthly payment of the borrower for all such loans shall not be less than $10.”.
Section 455(m)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(1)(A)) is amended—
Paragraph (1) of section 458(a) of the Higher Education Act of 1965 (20 U.S.C. 1087h(a)(1)) is amended to read as follows:
“(1) ADDITIONAL MANDATORY FUNDS FOR SERVICING.—There shall be available to the Secretary (in addition to any other amounts appropriated under any appropriations Act for administrative costs under this part and part B and out of any money in the Treasury not otherwise appropriated) $1,000,000,000 to be obligated for administrative costs under this part and part B, including the costs of servicing the direct student loan programs under this part, which shall remain available until expended.”.
(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) 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
(2) SUNSET.—Section 401(b)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended—
(3) CONFORMING AMENDMENTS.—
(A) IN GENERAL.—Section 479A(b)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is amended—
(b) Federal pell grant ineligibility due to a high student aid index.—
(1) IN GENERAL.—Section 401(b)(1) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)) is amended by adding at the end the following:
“(F) INELIGIBILITY OF STUDENTS WITH A HIGH STUDENT AID INDEX.—Notwithstanding subparagraphs (A) through (E), a student shall not be eligible for a Federal Pell Grant under this subsection for an academic year in which the student has a student aid index that equals or exceeds twice the amount of the total maximum Federal Pell Grant for such academic year.”.
(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—
“(3) TERMS AND CONDITIONS OF AWARDS.—The Secretary shall award Workforce Pell Grants under this subsection in the same manner and with the same terms and conditions as the Secretary awards Federal Pell Grants under this section, except that—
“(A) each use of the term ‘eligible program’ (except in subsection (b)(9)(A)) shall be substituted by ‘eligible workforce program under section 481(b)(3)’;
“(B) the provisions of subsection (d)(2) shall not be applicable to eligible workforce programs; and
“(C) a student who is eligible for a grant equal to less than the amount of the minimum Federal Pell Grant because the eligible workforce program in which the student is enrolled or accepted for enrollment is less than an academic year (in hours of instruction or weeks of duration) may still be eligible for a Workforce Pell Grant in an amount that is prorated based on the length of the program.
(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—
(2) by inserting after paragraph (2) the following:
“(3) (A) A program is an eligible program for purposes of the Workforce Pell Grant program under section 401(k) only if— “(i) it is a program of at least 150 clock hours of instruction, but less than 600 clock hours of instruction, or an equivalent number of credit hours, offered by an eligible institution during a minimum of 8 weeks, but less than 15 weeks; “(ii) it is not offered as a correspondence course, as defined in 600.2 of title 34, Code of Federal Regulations (as in effect on July 1, 2021); “(iii) 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— “(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— “(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 total amount of the published tuition and fees of the program for such year is an amount that does not exceed the value-added earnings of students who received Federal financial aid under this title and who completed the program 3 years prior to the award year, as such earnings are determined by calculating the difference between— “(aa) the median earnings of such students, as adjusted by the State and metropolitan area regional price parities of the Bureau of Economic Analysis based on the location of such program; and “(bb) 150 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)) for such year.
Section 401(b)(7)(A)(iii) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(7)(A)(iii)) is amended by striking “$2,170,000,000” and inserting “$12,670,000,000”.
Section 401(d) of the Higher Education Act of 1965 (20 U.S.C. 1070a(d)) is amended by adding at the end the following:
“(6) EXCLUSION.—Beginning on July 1, 2026, and notwithstanding this subsection or subsection (b), a student shall not be eligible for a Federal Pell Grant under subsection (b) during any period for which the student receives grant aid from non-Federal sources, including States, institutions of higher education, or private sources, in an amount that equals or exceeds the student's cost of attendance for such period.”.
Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d) is amended—
(4) by inserting after subsection (b) the following: “(c) Ineligibility for certain programs based on low earning outcomes.— “(1) IN GENERAL.—Notwithstanding section 481(b), an institution of higher education subject to this subsection shall not use funds under this part for student enrollment in an educational program offered by the institution that is described in paragraph (2). “(2) LOW-EARNING OUTCOME PROGRAMS DESCRIBED.—An educational program at an institution is described in this paragraph if the program awards an undergraduate degree, graduate or professional degree, or graduate certificate, for which the median earnings (as determined by the Secretary) of the programmatic cohort of students who received funds under this title for enrollment in such program, who completed such program during the academic year that is 4 years before the year of the determination, who are not enrolled in any institution of higher education, and who are working, are, for not less than 2 of the 3 years immediately preceding the date of the determination, less than the median earnings of a working adult described in paragraph (3) for the corresponding year. “(3) CALCULATION OF MEDIAN EARNINGS.— “(A) WORKING ADULT.—For purposes of applying paragraph (2) to an educational program at an institution, a working adult described in this paragraph is a working adult who, for the corresponding year— “(B) SOURCE OF DATA.—For purposes of applying paragraph (2) to an educational program at an institution, the median earnings of a working adult, as described in subparagraph (A), shall be based on data from the Bureau of the Census— “(ii) with respect to an educational program that is a graduate or professional program— “(I) for the lowest median earnings of— “(4) SMALL PROGRAMMATIC COHORTS.—For any year for which the programmatic cohort described in paragraph (2) for an educational program of an institution is fewer than 30 individuals, the Secretary shall— “(5) APPEALS PROCESS.—An educational program shall not lose eligibility under this subsection unless the institution has had the opportunity to appeal the programmatic median earnings of students working and not enrolled determination under paragraph (2), through a process established by the Secretary. During such appeal, the Secretary may permit the educational program to continue to participate in the program under this part. “(6) NOTICE TO STUDENTS.— “(A) IN GENERAL.—If an educational program of an institution of higher education subject to this subsection does not meet the cohort median earning requirements, as described in paragraph (2), for one year during the applicable covered period but has not yet failed to meet such requirements for 2 years during such covered period, the institution shall promptly inform each student enrolled in the educational program of the eligible program's low cohort median earnings and that the educational program is at risk of losing its eligibility for funds under this part. “(7) REGAINING PROGRAMMATIC ELIGIBILITY.—The Secretary shall establish a process by which an institution of higher education that has an educational program that has lost eligibility under this subsection may, after a period of not less than 2 years of such program's ineligibility, apply to regain such eligibility, subject to the requirements established by the Secretary that further the purpose of this subsection.”.
(a) Delay.—Beginning on the date of enactment of this section, for loans that first originate before July 1, 2035, the provisions of subpart D of part 685 of title 34, Code of Federal Regulations (relating to borrower defense to repayment), as added or amended by the final regulations published by the Department of Education on November 1, 2022, and titled “Institutional Eligibility Under the Higher Education Act of 1965, as Amended; Student Assistance General Provisions; Federal Perkins Loan Program; Federal Family Education Loan Program; and William D. Ford Federal Direct Loan Program” (87 Fed. Reg. 65904) shall not be in effect.
(a) Delay.—Beginning on the date of enactment of this section, for loans that first originate before July 1, 2035, the provisions of sections 674.33(g), 682.402(d), and 685.214 of title 34, Code of Federal Regulations (relating to closed school discharges), as added or amended by the final regulations published by the Department of Education on November 1, 2022, and titled “Institutional Eligibility Under the Higher Education Act of 1965, as Amended; Student Assistance General Provisions; Federal Perkins Loan Program; Federal Family Education Loan Program; and William D. Ford Federal Direct Loan Program” (87 Fed. Reg. 65904), shall not be in effect.
(b) Effect.—Beginning on the date of enactment of this section, with respect to loans that first originate before July 1, 2035, the portions of the Code of Federal Regulations described in subsection (a) and amended by the final regulations described in subsection (a) shall be in effect as if the amendments made by such final regulations had not been made.
In addition to amounts otherwise available, there are appropriated to the National Endowment for the Humanities for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available through fiscal year 2028, $40,000,000 for the procurement of statues as described in Executive Order 13934 (85 Fed. Reg. 41165; relating to building and rebuilding monuments to American heroes), Executive Order 13978 (86 Fed. Reg. 6809; relating to building the National Garden of American Heroes), and Executive Order 14189 (90 Fed. Reg. 8849; relating to celebrating America’s birthday).
(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, $300,000,000, to remain available until September 30, 2028, for the purposes described in subsection (b).
(b) Use of funds.—The funds made available under subsection (a) may only be used for the Office of Refugee Resettlement to support costs associated with—
(1) background checks on potential sponsors, which shall include—
(A) the name of the potential sponsor and of all adult residents of the potential sponsor’s household;
(B) the social security number or tax payer identification number of the potential sponsor and of all adult residents of the potential sponsor’s household;
(C) the date of birth of the potential sponsor and of all adult residents of the potential sponsor’s household;
(E) an in-person or virtual interview with, and suitability study concerning, the potential sponsor and all adult residents of the potential sponsor’s household;
(F) contact information for the potential sponsor and for all adult residents of the potential sponsor’s household; and
(G) the results of all background and criminal records checks for the potential sponsor and for all adult residents of the potential sponsor’s household, which shall include, at a minimum, an investigation of the public records sex offender registry, a public records background check, and a national criminal history check based on fingerprints;
(3) determining whether an unaccompanied alien child poses a danger to self or others by conducting an examination of the unaccompanied alien child for gang-related tattoos and other gang-related markings and covering such tattoos or markings while the child is in the care of the Office of Refugee Resettlement;
(4) data systems improvement and sharing that supports the health, safety, and well being of unaccompanied alien children by determining the appropriateness of potential sponsors of unaccompanied alien children and of adults residing in the household of the potential sponsor and by assisting with the identification and investigation of child labor exploitation and child trafficking; and
(c) Definitions.—In this section:
(1) POTENTIAL SPONSOR.—The term “potential sponsor” means an individual or entity who applies for the custody of an unaccompanied alien child.
(2) UNACCOMPANIED ALIEN CHILD.—The term “unaccompanied alien child” has the meaning given such term in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g)).
In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $46,550,000,000 for necessary expenses relating to the following elements of the border infrastructure and wall system:
(a) In general.—In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, the following:
(1) PERSONNEL.—$4,100,000,000, to remain available until September 30, 2029, to hire and train additional Border Patrol agents, Office of Field Operations officers, Air and Marine agents, rehired annuitants, and U.S. Customs and Border Protection field support personnel.
(2) RETENTION, HIRING, AND PERFORMANCE BONUSES.—$2,052,630,000, to remain available until September 30, 2029, to provide recruitment bonuses, performance awards, or annual retention bonuses to eligible Border Patrol agents, Office of Field Operations officers, and Air and Marine agents.
(a) In general.—In addition to any amounts otherwise appropriated, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $45,000,000,000, for single adult alien detention capacity and family residential center capacity.
(b) Duration and standards.—Aliens may be detained at family residential centers, as described in subsection (a), pending a decision, under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), on whether the aliens are to be removed from the United States and, if such aliens are ordered removed from the United States, until such aliens are removed. The detention standards for the single adult detention capacity described in subsection (a) shall be set in the discretion of the Secretary of Homeland Security, consistent with applicable law.
(c) Definition of family residential center.—In this section, the term “family residential center” means a facility used by the Department of Homeland Security to detain family units of aliens (including alien children who are not unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g)))) who are encountered or apprehended by the Department of Homeland Security.
(a) In general.—In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $6,168,000,000 for the following:
(1) Procurement and integration of new nonintrusive inspection equipment and associated civil works, including artificial intelligence, machine learning, and other innovative technologies, as well as other mission support, to combat the entry or exit of illicit narcotics at ports of entry and along the southwest, northern, and maritime borders.
(2) Air and Marine operations’ upgrading and procurement of new platforms for rapid air and marine response capabilities.
(3) Upgrades and procurement of border surveillance technologies along the southwest, northern, and maritime borders.
(4) Necessary expenses, including the deployment of technology, relating to the biometric entry and exit system under section 7208 of the Intelligence Reform and Terrorism Prevention Act of 2004 (8 U.S.C. 1365b).
(6) Initial screenings of unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))), consistent with the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 (Public Law 110–457; 122 Stat. 5044).
(b) Restrictions.—None of the funds made available under subsection (a) may be used for the procurement or deployment of surveillance towers along the southwest border and northern border that have not been tested and accepted by U.S. Customs and Border Protection to deliver autonomous capabilities.
(c) Definition of autonomous.—In this section, with respect to capabilities, the term “autonomous” means a system designed to apply artificial intelligence, machine learning, computer vision, or other algorithms to accurately detect, identify, classify, and track items of interest in real time such that the system can make operational adjustments without the active engagement of personnel or continuous human command or control.
(a) State Homeland Security Grant Programs.—
(1) IN GENERAL.—In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, to be administered under the State Homeland Security Grant Program authorized under section 2004 of the Homeland Security Act of 2002 (6 U.S.C. 605), to enhance State, local, and Tribal security through grants, contracts, cooperative agreements, and other activities—
(2) TERMS AND CONDITIONS.—None of the funds made available under subparagraph (B) or (C) of paragraph (1) shall be subject to the requirements of section 2004(e)(1) or section 2008(a)(12) of the Homeland Security Act of 2002 (6 U.S.C. 605(e)(1), 609(a)(12)).
(b) State Border Security Reinforcement Fund.—
(1) ESTABLISHMENT.—There is established, in the Department of Homeland Security, a fund to be known as the “State Border Security Reinforcement Fund.”
(2) PURPOSES.—The Secretary of Homeland Security shall use amounts appropriated or otherwise made available for the Fund for grants to eligible States and units of local government for any of the following purposes:
(A) Construction or installation of a border wall, border fencing or other barrier, or buoys along the southern border of the United States, which may include planning, procurement of materials, and personnel costs related to such construction or installation.
(B) Any work necessary to prepare the ground at or near land borders to allow construction and maintenance of a border wall or other barrier fencing.
(3) APPROPRIATION.—In addition to amounts otherwise available for the purposes described in paragraph (2), there is appropriated for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to the Department of Homeland Security for the State Border Security Reinforcement Fund established by paragraph (1), $10,000,000,000, to remain available until September 30, 2034, for qualified expenses for such purposes.
(4) ELIGIBILITY.—The Secretary of Homeland Security may provide grants from the fund established by paragraph (1) to State agencies and units of local governments for expenditures made for completed, ongoing, or new activities, in accordance with law, that occurred on or after January 20, 2021.
(5) APPLICATION.—Each State desiring to apply for a grant under this subsection shall submit an application to the Secretary containing such information in support of the application as the Secretary may require. The Secretary shall require that each State include in its application the purposes for which the State seeks the funds and a description of how the State plans to allocate the funds. The Secretary shall begin to accept applications not later than 90 days after the date of the enactment of this Act.
(6) TERMS AND CONDITIONS.—Nothing in this subsection shall authorize any State or local government to exercise immigration or border security authorities reserved exclusively to the Federal Government under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.) or the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.). The Federal Emergency Management Agency may use not more than 1 percent of the funds made available under this subsection for the purpose of administering grants provided for in this section.
(a) In general.—In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until September 30, 2029, for the reimbursement of extraordinary law enforcement personnel costs for protection activities directly and demonstrably associated with any residence of the President designated pursuant to section 3 or 4 of the Presidential Protection Assistance Act of 1976 (Public Law 94–524; 18 U.S.C. 3056 note) to be secured by the United States Secret Service.
(b) Availability.—Funds appropriated under this section shall be available only for costs that a State or local agency—
(2) demonstrates to the Administrator of the Federal Emergency Management Agency as being—
(C) associated with a nongovernmental property designated pursuant to section 3 or 4 of the Presidential Protection Assistance Act of 1976 (Public Law 94–524; 18 U.S.C. 3056 note) to be secured by the United States Secret Service; and
In addition to amounts otherwise available, there are appropriated to the Secretary of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000,000, to remain available until September 30, 2029, for reimbursement of costs incurred in undertaking activities in support of the Department of Homeland Security’s mission to safeguard the borders of the United States.
(b) Definitions.—In this section:
(2) HEALTH BENEFITS PLAN; MEMBER OF FAMILY.—The terms “health benefits plan” and “member of family” have the meanings given those terms in section 8901 of title 5, United States Code.
(3) OPEN SEASON.—The term “open season” means an open season described in section 890.301(f) of title 5, Code of Federal Regulations, or any successor regulation.
(4) PROGRAM.—The term “Program” means the health insurance programs carried out under chapter 89 of title 5, United States Code, including the program carried out under section 8903c of that title.
(c) Verification requirements.—Not later than 1 year after the date of enactment of this Act, the Director shall issue regulations and implement a process to verify—
(d) Fraud risk assessment.—In any fraud risk assessment conducted with respect to the Program on or after the date of enactment of this Act, the Director shall include an assessment of individuals who are enrolled in, or covered under, a health benefits plan under the Program even though those individuals are not eligible to be so enrolled or covered.
(e) Family member eligibility verification audit.—
(f) Disenrollment or removal.—Not later than 180 days after the date of enactment of this Act, the Director shall develop a process by which any individual enrolled in, or covered under, a health benefits plan under the Program who is not eligible to be so enrolled or covered shall be disenrolled or removed from enrollment in, or coverage under, that health benefits plan.
(g) Earned benefits and health care administrative services associated oversight and audit funding.—Section 8909 of title 5, United States Code, is amended—
(1) in subsection (a)(2), by inserting before the period at the end the following: “, except that the amounts required to be set aside under subsection (b)(2) shall not be subject to the limitations that may be specified annually by Congress”; and
(a) Pandemic response accountability committee funding availability.—In addition to amounts otherwise available, there is appropriated for fiscal year 2026, out of any money in the Treasury not otherwise appropriated, $88,000,000, to remain available until expended, for the Pandemic Response Accountability Committee to support oversight of the Coronavirus response and of funds provided in this Act or any other Act pertaining to the Coronavirus pandemic.
(b) CARES Act.—Section 15010 of the CARES Act (Public Law 116–136; 134 Stat. 533) is amended—
In addition to amounts otherwise available, there is appropriated to the Office of Management and Budget for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2029, for purposes of finding budget and accounting efficiencies in the executive branch.
(a) Applicability.—The fees under this subtitle shall apply to aliens in the circumstances described in this subtitle.
(b) Terms.—The terms used under this subtitle shall have the meanings given such terms in section 101 of the Immigration and Nationality Act (8 U.S.C. 1101).
(c) References to Immigration and Nationality Act.—Except as otherwise expressly provided, any reference in this subtitle to a section or other provision shall be considered to be to a section or other provision of the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
(a) In general.—In addition to any other fee authorized by law, the Secretary of Homeland Security or the Attorney General, as applicable, shall require the payment of a fee, equal to the amount specified in this section, by any alien who files an application for asylum under section 208 (8 U.S.C. 1158) at the time such application is filed.
(b) Initial amount.—During fiscal year 2025, the amount specified in this section shall be the greater of—
(c) Annual adjustments for inflation.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of—
(1) the amount of the fee required under this section for the most recently concluded fiscal year; and
(2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(d) Disposition of asylum fee proceeds.—During each fiscal year—
(2) 50 percent of fees received from aliens filing applications with the Secretary of Homeland Security—
(B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and
(a) Asylum applicants.—
(1) IN GENERAL.—In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien who files an initial application for employment authorization under section 208(d)(2) (8 U.S.C. 1158(d)(2)) at the time such initial employment authorization application is filed.
(2) INITIAL AMOUNT.—During fiscal year 2025, the amount specified in this subsection shall be the greater of—
(3) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of—
(A) the amount of the fee required under this section for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(4) DISPOSITION OF EMPLOYMENT AUTHORIZATION DOCUMENT FEES.—During each fiscal year—
(A) 25 percent of the fees collected pursuant to this subsection—
(ii) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and
(b) Parolees.—
(1) IN GENERAL.—In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien paroled into the United States for any initial application for employment authorization at the time such initial application is filed. Each initial employment authorization shall be valid for a period of 1 year or for the duration of the alien’s parole, whichever is shorter.
(2) INITIAL AMOUNT.—During fiscal year 2025, the amount specified in this subsection shall be the greater of—
(3) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of—
(A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(c) Temporary protected status.—
(1) IN GENERAL.—In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien who files an initial application for employment authorization under section 244(a)(1)(B) (8 U.S.C. 1254a(a)(1)(B)) at the time such initial application is filed. Each initial employment authorization shall be valid for a period of 1 year, or for the duration of the alien’s temporary protected status, whichever is shorter.
(2) INITIAL AMOUNT.—During fiscal year 2025, the amount specified in this subsection shall be the greater of—
(3) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of—
(A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(a) In general.—Except as provided under subsection (b), the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this section and in addition to any other fee authorized by law, by any alien who is paroled into the United States.
(b) Exceptions.—An alien shall not be subject to the fee otherwise required under subsection (a) if the alien establishes, to the satisfaction of the Secretary of Homeland Security, on an individual, case-by-case basis, that the alien is being paroled because—
(3) (A) the alien is needed in the United States to donate an organ or other tissue for transplant; and
(7) the alien—
(A) is a lawful applicant for adjustment of status under section 245 (8 U.S.C. 1255); and
(8) the alien—
(A) has been returned to a contiguous country pursuant to section 235(b)(2)(C) (8 U.S.C. 1225(b)(2)(C)); and
(9) the alien has been granted the status of Cuban and Haitian entrant (as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96–422; 8 U.S.C. 1522 note); or
(c) Initial amount.—For fiscal year 2025, the amount specified in this section shall be the greater of—
(d) Annual adjustments for inflation.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of—
(1) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(a) In general.—In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this section, by any alien, parent, or legal guardian of an alien applying for special immigrant juvenile status under section 101(a)(27)(J) (8 U.S.C. 1101(a)(27)(J)).
(b) Initial amount.—For fiscal year 2025, the amount specified in this section shall be the greater of—
(c) Annual adjustments for inflation.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of—
(1) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
Section 244(c)(1)(B) of the Immigration and Nationality Act (8 U.S.C. 1254a(c)(1)(B)) is amended—
(2) in clause (i), as redesignated, by striking “$50” and inserting “$500, subject to the adjustments required under clause (ii)”; and
(3) by adding at the end the following:
“(ii) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the maximum amount of the fee authorized under clause (i) shall be equal to the sum of—
“(I) the maximum amount of the fee authorized under this subparagraph for the most recently concluded fiscal year; and
“(II) the product resulting from the multiplication of the amount referred to in subclause (I) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(a) Visa integrity fee.—
(1) IN GENERAL.—In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien issued a nonimmigrant visa at the time of such issuance.
(2) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this section shall be the greater of—
(3) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of—
(A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar.
(b) Fee reimbursement.—The Secretary of Homeland Security may provide a reimbursement to an alien of the fee required under subsection (a) for the issuance of a nonimmigrant visa after the expiration of such nonimmigrant visa’s period of validity if such alien demonstrates that he or she—
(1) after admission to the United States pursuant to such nonimmigrant visa, complied with all conditions of such nonimmigrant visa, including the condition that an alien shall not accept unauthorized employment; and
(a) Fee authorized.—In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any alien who submits an application for a Form I–94 Arrival/Departure Record.
(b) Amount specified.—
(1) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this section shall be the greater of—
(2) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of—
(A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar.
(c) Disposition of Form I–94 fees.—During each fiscal year—
(1) 20 percent of the fees collected pursuant to this section—
(A) shall be deposited into the Land Border Inspection Fee Account in accordance with section 286(q)(2) (8 U.S.C. 1356(q)(2)); and
(a) Fee authorized.—In addition to any other fee authorized by law, for each calendar year that an alien’s application for asylum remains pending, the Secretary of Homeland Security or the Attorney General, as applicable, shall require the payment of a fee, equal to the amount specified in subsection (b), by such alien.
(b) Amount specified.—
(1) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this section shall be the greater of—
(2) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of—
(A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar.
(a) In general.—In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), for any parolee who seeks a renewal or extension of employment authorization based on a grant of parole. The employment authorization for each alien paroled into the United States, or any renewal or extension of such parole, shall be valid for a period of 1 year or for the duration of the alien’s parole, whichever is shorter.
(b) Amount specified.—
(1) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this subsection shall be the greater of—
(2) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of—
(A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(c) Disposition of fees relating to renewal and extension of employment authorization for parolees.—During each fiscal year—
(1) 25 percent of the fees collected pursuant to this section—
(B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and
(a) In general.—In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee of not less than $275 by any alien who has applied for asylum for each renewal or extension of employment authorization based on such application.
(b) Termination.—Each initial employment authorization, or renewal or extension of such authorization, shall terminate—
(1) immediately following the denial of an asylum application by an asylum officer, unless the case is referred to an immigration judge;
(c) Disposition of fees relating to renewal and extension of employment authorization for asylum applicants.—During each fiscal year—
(1) 25 percent of the fees collected pursuant to this section—
(B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and
(a) In general.—In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any alien at the time such alien seeks a renewal or extension of employment authorization based on a grant of temporary protected status. Any employment authorization for an alien granted temporary protected status, or any renewal or extension of such employment authorization, shall be valid for a period of 1 year or for the duration of the designation of temporary protected status, whichever is shorter.
(b) Amount specified.—
(1) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this subsection shall be the greater of—
(2) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of—
(A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(c) Disposition of fees relating to renewal and extension of employment authorization for temporary protected status applicants.—During each fiscal year—
(1) 25 percent of the fees collected pursuant to this section—
(B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and
(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 require the payment of a fee, equal to the amount specified in paragraph (2), by any alien who files an application with an immigration court to adjust the alien’s status to that of a lawful permanent resident, or whose application to adjust his or her status to that of a lawful permanent resident is adjudicated in immigration court. Such fee shall be paid at the time such application is filed or before such application is adjudicated by the immigration court.
(2) AMOUNT SPECIFIED.—
(A) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this paragraph shall be the greater of—
(B) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of—
(i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(3) DISPOSITION OF ADJUSTMENT OF STATUS APPLICATION FEES.—During each fiscal year—
(A) not more than 25 percent of the fees collected pursuant to this subsection—
(i) shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) (8 U.S.C. 1356(n)); and
(b) Fee for filing application for waiver of grounds of inadmissibility.—
(1) IN GENERAL.—In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for a waiver of a ground of inadmissibility, or before such application is adjudicated by the immigration court.
(2) AMOUNT SPECIFIED.—
(A) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this paragraph shall be the greater of—
(B) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of—
(i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(3) DISPOSITION OF WAIVER OF GROUND OF ADMISSIBILITY APPLICATION FEES.—During each fiscal year—
(A) not more than 25 percent of the fees collected pursuant to this subsection—
(i) shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) (8 U.S.C. 1356(n)); and
(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 require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for temporary protected status, or before such application is adjudicated by the immigration court.
(2) AMOUNT SPECIFIED.—
(A) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this paragraph shall be the greater of—
(B) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of—
(i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(3) DISPOSITION OF TEMPORARY PROTECTED STATUS APPLICATION FEES.—During each fiscal year—
(A) not more than 25 percent of the fees collected pursuant to this subsection—
(i) shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) (8 U.S.C. 1356(n)); and
(d) Fee for filing an appeal of a decision of an immigration judge.—
(1) IN GENERAL.—Except as provided in paragraph (3), the Attorney General shall require, in addition to any other fees authorized by law, the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an appeal from a decision of an immigration judge.
(2) AMOUNT SPECIFIED.—
(A) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this paragraph shall be the greater of—
(B) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of—
(i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(3) EXCEPTION.—The fee required under paragraph (1) shall not apply to the appeal of a bond decision.
(4) DISPOSITION OF FEES FOR APPEALING IMMIGRATION JUDGE DECISIONS.—During each fiscal year—
(A) not more than 25 percent of the fees collected pursuant to this subsection—
(i) shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) (8 U.S.C. 1356(n)); and
(e) Fee for filing an appeal from a decision of an officer of the department of homeland security.—
(1) IN GENERAL.—In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an appeal of a decision of an officer of the Department of Homeland Security.
(2) AMOUNT SPECIFIED.—
(A) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this paragraph shall be the greater of—
(B) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of—
(i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(3) DISPOSITION OF FEES FOR APPEALING DEPARTMENT OF HOMELAND SECURITY OFFICER DECISIONS.—During each fiscal year—
(A) not more than 25 percent of the fees collected pursuant to this subsection—
(i) shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) (8 U.S.C. 1356(n)); and
(f) Fee for filing an appeal from a decision of an adjudicating official in a practitioner disciplinary case.—
(1) IN GENERAL.—In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any practitioner at the time such practitioner files an appeal from a decision of an adjudicating official in a practitioner disciplinary case.
(2) AMOUNT SPECIFIED.—
(A) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this paragraph shall be the greater of—
(B) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of—
(i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(3) DISPOSITION OF FEES FOR APPEALING DEPARTMENT OF HOMELAND SECURITY OFFICER DECISIONS.—During each fiscal year—
(A) not more than 25 percent of the fees collected pursuant to this subsection—
(i) shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) (8 U.S.C. 1356(n)); and
(g) Fee for filing a motion to reopen or a motion to reconsider.—
(1) IN GENERAL.—Except as provided in paragraph (3), in addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files a motion to reopen or motion to reconsider a decision of an immigration judge or the Board of Immigration Appeals.
(2) AMOUNT SPECIFIED.—
(A) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this paragraph shall be the greater of—
(B) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of—
(i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(3) EXCEPTIONS.—The fee required under paragraph (1) shall not apply to—
(A) a motion to reopen a removal order entered in absentia if such motion is filed in accordance with section 240(b)(5)(C)(ii) (8 U.S.C. 1229a(b)(5)(C)(ii)); or
(4) DISPOSITION OF FEES FOR FILING CERTAIN MOTIONS.—During each fiscal year—
(A) not more than 25 percent of the fees collected pursuant to this subsection—
(i) shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) (8 U.S.C. 1356(n)); and
(h) Fee for filing application for suspension of deportation.—
(1) IN GENERAL.—In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for suspension of deportation.
(2) AMOUNT SPECIFIED.—
(A) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this paragraph shall be the greater of—
(B) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of—
(i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(3) DISPOSITION OF FEES FOR FILING APPLICATION FOR SUSPENSION OF DEPORTATION.—During each fiscal year—
(A) not more than 25 percent of the fees collected pursuant to this subsection—
(i) shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) (8 U.S.C. 1356(n)); and
(i) Fee for filing 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 require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court an application for cancellation of removal for an alien who is a lawful permanent resident.
(2) AMOUNT SPECIFIED.—
(A) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this paragraph shall be the greater of—
(B) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of—
(i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(3) DISPOSITION OF FEES FOR FILING APPLICATION FOR CANCELLATION OF REMOVAL.—During each fiscal year—
(A) not more than 25 percent of the fees collected pursuant to this subsection—
(i) shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) (8 U.S.C. 1356(n)); and
(j) Fee for filing an application for cancellation of removal and adjustment of status for certain nonpermanent residents.—
(1) IN GENERAL.—In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien who is not a lawful permanent resident at the time such alien files an application with an immigration court for cancellation of removal and adjustment of status for any alien.
(2) AMOUNT SPECIFIED.—
(A) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this paragraph shall be the greater of—
(B) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of—
(i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(3) DISPOSITION OF FEES FOR FILING APPLICATION FOR CANCELLATION OF REMOVAL.—During each fiscal year—
(A) not more than 25 percent of the fees collected pursuant to this subsection—
(i) shall be derived by transfer from the Immigration Examinations Fee Account under section 286(n) (8 U.S.C. 1356(n)); and
Section 217(h)(3)(B) (8 U.S.C. 1187(h)(3)(B)) is amended—
(3) by adding at the end the following:
“(iv) SUBSEQUENT ADJUSTMENT.—During fiscal year 2026 and each subsequent fiscal year, the amount specified in clause (i)(II) for a fiscal year shall be equal to the sum of—
“(I) the amount of the fee required under this subparagraph during the most recently concluded fiscal year; and
“(II) the product of the amount referred to in subclause (I) multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.”.
(a) In general.—In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, in the amount specified in subsection (b), by any alien subject to the Electronic Visa Update System at the time of such alien’s enrollment in such system.
(b) Amount specified.—
(1) IN GENERAL.—For fiscal year 2025, the amount specified in this subsection shall be the greater of—
(2) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026 and each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of—
(A) the amount of the fee required under this subsection during the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $0.25.
(c) Disposition of electronic visa update system fees.—
(1) IN GENERAL.—Section 286 (8 U.S.C. 1356) is amended by adding at the end the following: “(w) CBP electronic visa update system account.— “(1) ESTABLISHMENT.—There is established in the general fund of the Treasury a separate account, which shall be known as the ‘CBP Electronic Visa Update System Account’ (referred to in this subsection as the ‘Account’). “(2) DEPOSITS.—There shall be deposited into the Account an amount equal to the difference between— “(3) APPROPRIATION.—Amounts deposited in the Account—
(a) In general.—As partial reimbursement for the cost of arresting an alien described in this section, the Secretary of Homeland Security, except as provided in subsection (c), shall require the payment of a fee, equal to the amount specified in subsection (b) on any alien who—
(1) is ordered removed in absentia pursuant to section 240(b)(5) (8 U.S.C. 1229a(b)(5)); and
(b) Amount specified.—
(1) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this section shall be the greater of—
(2) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of—
(A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
(c) Exception.—The fee described in this section shall not apply to any alien who was ordered removed in absentia if such order was rescinded pursuant to section 240(b)(5)(C) (8 U.S.C. 1229a(b)(5)(C)).
(a) In general.—In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any inadmissible alien at the time such alien is apprehended between ports of entry.
(b) Amount specified.—
(1) INITIAL AMOUNT.—For fiscal year 2025, the amount specified in this section shall be the greater of—
(2) ANNUAL ADJUSTMENTS FOR INFLATION.—During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of—
(A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10.
Section 208(d)(3) (8 U.S.C. 1158(d)(3)) is amended—
In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $2,055,000,000, to remain available through September 30, 2029, for the following purposes:
(1) IMMIGRATION AND ENFORCEMENT ACTIVITIES.—Hiring and training of additional U.S. Customs and Border Protection agents, and the necessary support staff, to carry out immigration enforcement activities.
(2) DEPARTURES AND REMOVALS.—Funding for transportation costs and related costs associated with the departure or removal of aliens.
(3) PERSONNEL ASSIGNMENTS.—Funding for the assignment of Department of Homeland Security employees and State officers to carry out immigration enforcement activities pursuant to sections 103(a) and 287(g) of the Immigration and Nationality Act (8 U.S.C. 1103(a) and 1357(g)).
(4) BACKGROUND CHECKS.—Hiring additional staff and investing the necessary resources to enhance screening and vetting of all aliens seeking entry into United States, consistent with section 212 of such Act (8 U.S.C. 1182), or intending to remain in the United States, consistent with section 237 of such Act (8 U.S.C. 1227).
(5) PROTECTING ALIEN CHILDREN FROM EXPLOITATION.—In instances of aliens and alien children entering the United States without a valid visa, funding is provided for the purposes of—
(A) collecting fingerprints, in accordance with section 262 of the Immigration and Nationality Act (8 U.S.C. 1302) and subsections (a)(3) and (b) of section 235 of such Act (8 U.S.C. 1225); and
(B) collecting DNA, in accordance with sections 235(d) and 287(b) of the Immigration and Nationality Act (8 U.S.C. 1225(d) and 1357(b)).
(6) TRANSPORTING AND RETURN OF ALIENS FROM CONTIGUOUS TERRITORY.—Transporting and facilitating the return, pursuant to section 235(b)(2)(C) of the Immigration and Nationality Act (8 U.S.C. 1225(b)(2)(C)), of aliens arriving from contiguous territory.
(7) STATE AND LOCAL PARTICIPATION.—Funding for State and local participation in homeland security efforts for purposes of—
(8) REMOVAL OF SPECIFIED UNACCOMPANIED ALIEN CHILDREN.—
(B) USE OF FUNDS.—Amounts made available under this paragraph shall only be used for permitting a specified unaccompanied alien child to withdraw the application for admission of the child pursuant to section 235(a)(4) of the Immigration and Nationality Act (8 U.S.C. 1225(a)(4)).
(C) DEFINITIONS.—In this paragraph:
(i) SPECIFIED UNACCOMPANIED ALIEN CHILD.—The term “specified unaccompanied alien child” means an unaccompanied alien child (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))) who the Secretary of Homeland Security determines on a case-by-case basis—
(I) has been found by an immigration officer at a land border or port of entry of the United States and is inadmissible under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.);
(ii) SEVERE FORMS OF TRAFFICKING IN PERSONS.—The term “severe forms of trafficking in persons” has the meaning given such term in section 103 of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7102).
(9) EXPEDITED REMOVAL OF CRIMINAL ALIENS.—Funding for the expedited removal of criminal aliens, in accordance with the provisions of section 235(b)(1) of the Immigration and Nationality Act (8 U.S.C. 1225(b)(1)).
(10) REMOVAL OF CERTAIN CRIMINAL ALIENS WITHOUT FURTHER HEARINGS.—Funding for the removal of certain criminal aliens without further hearings, in accordance with the provisions of section 235(c) of the Immigration and Nationality Act (8 U.S.C. 1225(c)).
(11) CRIMINAL AND GANG CHECKS FOR UNACCOMPANIED ALIEN CHILDREN.—Funding for criminal and gang checks of unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))) who are 12 years of age and older, including the examination of such unaccompanied alien children for gang-related tattoos and other gang-related markings.
In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $29,850,000,000, to remain available through September 30, 2029, for the following purposes:
(1) HIRING AND TRAINING.—Hiring and training additional U.S. Immigration and Customs Enforcement personnel, including officers, agents, investigators, and support staff, to carry out immigration enforcement activities and prioritizing and streamlining the hiring of retired U.S. Immigration and Customs Enforcement personnel.
(2) PERFORMANCE, RETENTION, AND SIGNING BONUSES.—
(A) IN GENERAL.—Providing performance, retention, and signing bonuses for qualified U.S. Immigration and Customs Enforcement personnel in accordance with this subsection.
(B) PERFORMANCE BONUSES.—The Director of U.S. Immigration and Customs Enforcement, at the Director’s discretion, may provide performance bonuses to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who demonstrates exemplary service.
(C) RETENTION BONUSES.—The Director of U.S. Immigration and Customs Enforcement may provide retention bonuses to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who commits to 2 years of additional service with U.S. Immigration and Customs Enforcement to carry out immigration enforcement activities.
(D) SIGNING BONUSES.—The Director of U.S. Immigration and Customs Enforcement may provide a signing bonus to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who—
(E) SERVICE AGREEMENT.—In providing a retention or signing bonus under this paragraph, the Director of U.S. Immigration and Customs Enforcement shall provide each qualifying individual with a written service agreement that includes—
(i) the commencement and termination dates of the required service period (or provisions for the determination of such dates);
(3) RECRUITMENT, HIRING, AND ONBOARDING.—Facilitating the recruitment, hiring, and onboarding of additional U.S. Immigration and Customs Enforcement personnel to carry out immigration enforcement activities, including by—
(4) TRANSPORTATION.—Funding for transportation costs and related costs associated with alien departure or removal operations.
(5) INFORMATION TECHNOLOGY.—Funding for information technology investments to support enforcement and removal operations, including improvements to fee collections.
(7) FLEET MODERNIZATION.—Funding for fleet modernization to support enforcement and removal operations.
(8) FAMILY UNITY.—Promoting family unity by—
(A) maintaining the care and custody, during the period in which a charge described in clause (i) is pending, in accordance with applicable laws, of an alien who—
(i) is charged only with a misdemeanor offense under section 275(a) of the Immigration and Nationality Act (8 U.S.C. 1325(a)); and
(9) 287(g) AGREEMENTS.—Expanding, facilitating, and implementing agreements under section 287(g) of the Immigration and Nationality Act (8 U.S.C. 1357(g)).
(10) VICTIMS OF IMMIGRATION CRIME ENGAGEMENT OFFICE.—Hiring and training additional staff to carry out the mission of the Victims of Immigration Crime Engagement Office and for providing nonfinancial assistance to the victims of crimes perpetrated by aliens who are present in the United States without authorization.
(a) Appropriation.—In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for the Federal Law Enforcement Training Centers for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $750,000,000, to remain available until September 30, 2029, for the purposes described in subsections (b) and (c).
(b) Training.—Not less than $285,000,000 of the amounts available under subsection (a) shall be for supporting the training of newly hired Federal law enforcement personnel employed by the Department of Homeland Security and State and local law enforcement agencies operating in support of the Department of Homeland Security.
In addition to amounts otherwise available, there is appropriated to the Attorney General for the Department of Justice for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $3,330,000,000, to remain available through September 30, 2029, for the following purposes:
(1) EXECUTIVE OFFICE FOR IMMIGRATION REVIEW.—
(2) COMBATING DRUG TRAFFICKING.—Funding efforts to combat drug trafficking (including trafficking of fentanyl and its precursor chemicals) and illegal drug use.
(3) PROSECUTION OF IMMIGRATION MATTERS.—Funding efforts to investigate and prosecute immigration matters, gang-related crimes involving aliens, child trafficking and smuggling involving aliens within the United States, unlawful voting by aliens, violations of the Alien Registration Act, 1940 (54 Stat., chapter 439), and violations of or fraud relating to title IV of the Personal Responsibility and Work Opportunity Act of 1996 (Public Law 104–193; 110 Stat. 2277), including hiring additional Department of Justice personnel to investigate and prosecute such matters.
(4) NONPARTY OR OTHER INJUNCTIVE RELIEF.—Hiring additional attorneys and necessary support staff for the purpose of continuing implementation of assignments by the Attorney General pursuant to sections 516, 517, and 518 of title 28, United States Code, to conduct litigation and attend to the interests of the United States in suits pending in a court of the United States or in a court of a State in suits seeking nonparty or other injunctive relief against the Federal Government.
(5) EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM AND OFFICE OF COMMUNITY ORIENTED POLICING.—
(A) IN GENERAL.—Increasing funding for the Edward Byrne Memorial Justice Assistance Grant Program and the Office of Community Oriented Policing for initiatives associated with—
(B) LIMITATIONS.—No funds made available under this subsection shall be made available to community violence intervention and prevention initiative programs.
(C) ELIGIBILITY.—To be eligible to receive funds made available under this subsection, a State or local government shall be in full compliance, as determined by the Attorney General, with section 642 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1373).
(6) FISCALLY RESPONSIBLE LAWSUIT SETTLEMENTS.—Hiring additional attorneys and necessary support staff for the purpose of maximizing lawsuit settlements that require the payment of fines and penalties to the Treasury of the United States in lieu of providing for the payment to any person or entity other than the United States, other than a payment that provides restitution or otherwise directly remedies actual harm directly and proximately caused by the party making the payment, or constitutes payment for services rendered in connection with the case.
(7) COMPENSATION FOR INCARCERATION OF CRIMINAL ALIENS.—
(A) IN GENERAL.—Providing compensation to a State or political subdivision of a State for the incarceration of criminal aliens.
(B) USE OF FUNDS.—The amounts made available under subparagraph (A) shall only be used to compensate a State or political subdivision of a State, as appropriate, with respect to the incarceration of an alien who—
(ii) (I) entered the United States without inspection or at any time or place other than as designated by the Secretary of Homeland Security;
(II) was the subject of removal proceedings at the time the alien was taken into custody by the State or a political subdivision of the State; or
(III) was admitted as a nonimmigrant and, at the time the alien was taken into custody by the State or a political subdivision of the State, has failed to maintain the nonimmigrant status in which the alien was admitted, or to which it was changed, or to comply with the conditions of any such status.
(C) LIMITATION.—Amounts made available under this subsection shall be distributed to more than 1 State. The amounts made available under subparagraph (A) may not be used to compensate any State or political subdivision of a State if the State or political subdivision of the State prohibits or in any way restricts a Federal, State, or local government entity, official, or other personnel from doing any of the following:
(i) Complying with the immigration laws (as defined in section 101(a)(17) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(17))).
(ii) Assisting or cooperating with Federal law enforcement entities, officials, or other personnel regarding the enforcement of the immigration laws.
(iii) Undertaking any of the following law enforcement activities as such activities relate to information regarding the citizenship or immigration status, lawful or unlawful, the inadmissibility or deportability, and the custody status, of any individual:
(I) Making inquiries to any individual to obtain such information regarding such individual or any other individuals.
(a) Establishment.—There is established within the Department of Justice a fund, to be known as the “Bridging Immigration-related Deficits Experienced Nationwide (BIDEN) Reimbursement Fund” (referred to in this section as the “Fund”).
(b) Use of funds.—The Attorney General shall use amounts appropriated or otherwise made available for the Fund for grants to eligible States, State agencies, and units of local government, pursuant to their existing statutory authorities, for any of the following purposes:
(1) Locating and apprehending aliens who have committed a crime under Federal, State, or local law, in addition to being unlawfully present in the United States.
(2) Collection and analysis of law enforcement investigative information within the United States to counter gang or other criminal activity.
(6) Transporting aliens described in paragraph (1) within the United States to locations related to the apprehension, detention, and prosecution of such aliens.
(7) Vehicle maintenance, logistics, transportation, and other support provided to law enforcement agencies by a State agency to enhance the ability to locate and apprehend aliens who have committed crimes under Federal, State, or local law, in addition to being unlawfully present in the United States.
(c) Appropriation.—In addition to amounts otherwise available for the purposes described in subsection (b), there is appropriated to the Attorney General for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, not to exceed $3,500,000,000, to remain available until September 30, 2028, for the Fund for qualified and documented expenses that achieve any such purpose.
(d) Grant eligibility of completed, ongoing, or new activities.—The Attorney General may provide grants under this section to State agencies and units of local government for expenditures made by State agencies or units of local government for completed, ongoing, or new activities determined to be eligible for such grant funding that occurred on or after January 20, 2021. Amounts made available under this section shall be distributed to more than 1 State.
(a) Appropriation.—In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Prisons for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $5,000,000,000, to remain available through September 30, 2029, for the purposes described in subsections (b) and (c).
(b) Salaries and benefits.—Not less than $3,000,000,000 of the amounts made available under subsection (a) shall be for hiring and training of new employees, including correctional officers, medical professionals, and facilities and maintenance employees, the necessary support staff, and for additional funding for salaries and benefits for the current workforce of the Bureau of Prisons.
(a) Appropriation.—In addition to amounts otherwise available, there is appropriated to the Director of the United States Secret Service (referred to in this section as the “Director”) for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,170,000,000, to remain available through September 30, 2029, for the purposes described in subsection (b).
(b) Use of funds.—Amounts made available under subsection (a) may only be used for—
(c) Performance, retention, and signing bonuses.—
(1) PERFORMANCE BONUSES.—The Director, at the Director’s discretion, may provide performance bonuses to any Secret Service agent, officer, or analyst who demonstrates exemplary service.
(2) RETENTION BONUSES.—The Director may provide retention bonuses to any Secret Service agent, officer, or analyst who commits to 2 years of additional service with the Secret Service.
(3) SIGNING BONUSES.—The Director may provide a signing bonus to any Secret Service agent, officer, or analyst who—
(4) SERVICE AGREEMENT.—In providing a retention or signing bonus under this subsection, the Director shall provide each qualifying individual with a written service agreement that includes—
(A) the commencement and termination dates of the required service period (or provisions for the determination of such dates);
In addition to amounts otherwise available, there is appropriated to the Director of the Administrative Office of the United States Courts, out of amounts in the Treasury not otherwise appropriated, $1,250,000 for each of fiscal years 2025 through 2028, for the purpose of continuing analyses and reporting pursuant to section 604(a)(2) of title 28, United States Code, to examine the state of the dockets of the courts and to prepare and transmit statistical data and reports as to the business of the courts, including an assessment of the number, frequency, and related metrics of judicial orders issuing non-party relief against the Federal Government and their aggregate cost impact on the taxpayers of the United States, as determined by each court when imposing securities for the issuance of preliminary injunctions or temporary restraining orders against the Federal Government pursuant to rule 65(c) of the Federal Rules of Civil Procedure.
(a) Appropriation.—In addition to amounts otherwise available, there is appropriated to the Director of the Federal Judicial Center, out of amounts in the Treasury not otherwise appropriated, $1,000,000 for each of fiscal years 2025 through 2028, for the purpose described in subsection (b).
(b) Use of funds.—The Federal Judicial Center shall use the amounts appropriated under subsection (a) for the continued implementation of programs pursuant to section 620(b)(3) of title 28, United States Code, to stimulate, create, develop, and conduct programs of continuing education and training for personnel of the judicial branch, including training on the absence of constitutional and statutory authority supporting legal claims that seek non-party relief against the Federal Government, and strategic approaches for mitigating the aggregate cost impact of such legal claims on the taxpayers of the United States.
Section 3(d) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended—
(a) Leukemia claims relating to trinity test in New Mexico and tests at the Nevada site.—Section 4(a)(1)(A) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended—
(2) in clause (ii)(I), by striking “physical presence described in subclause (I) or (II) of clause (i) or onsite participation described in clause (i)(III)” and inserting “physical presence described in subclause (I), (II), or (III) of clause (i) or onsite participation described in clause (i)(IV)”.
(b) Amounts for claims related to leukemia.—Section 4(a)(1) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended—
(c) Conditions for claims related to leukemia.—Section 4(a)(1)(C) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended—
(d) Specified diseases claims relating to trinity test in New Mexico and tests at the Nevada site.—Section 4(a)(2) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended—
(e) Amounts for claims related to specified diseases.—Section 4(a)(2) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended in the matter following subparagraph (D) (as redesignated by subsection (d) of this section)—
(f) Downwind states.—Section 4(b)(1) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended to read as follows:
(a) Employees of mines and mills.—Section 5(a)(1)(A)(i) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended to read as follows:
“(i) (I) was employed in a uranium mine or uranium mill (including any individual who was employed in the transport of uranium ore or vanadium-uranium ore from such mine or mill) located in Colorado, New Mexico, Arizona, Wyoming, South Dakota, Washington, Utah, Idaho, North Dakota, Oregon, or Texas at any time during the period beginning on January 1, 1942, and ending on December 31, 1990; or
(b) Miners.—Section 5(a)(1)(A)(ii)(I) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended by inserting “or renal cancer or any other chronic renal disease, including nephritis and kidney tubal tissue injury” after “nonmalignant respiratory disease”.
(c) Millers, core drillers, and ore transporters.—Section 5(a)(1)(A)(ii)(II) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended—
(d) Combined work histories.—Section 5(a)(1)(A)(ii) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note), as amended by subsection (c), is further amended—
(2) by adding at the end the following:
“(III) (aa) does not meet the conditions of subclause (I) or (II);
“(bb) worked, during the period described in clause (i)(I), in 2 or more of the following positions: miner, miller, core driller, and ore transporter;
“(dd) submits written medical documentation that the individual developed lung cancer, a nonmalignant respiratory disease, renal cancer, or any other chronic renal disease, including nephritis and kidney tubal tissue injury after exposure to radiation through work in one or more of the positions referred to in item (bb);”.
(e) Special rules relating to combined work histories.—Section 5(a) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended by adding at the end the following:
“(4) SPECIAL RULE RELATING TO COMBINED WORK HISTORIES FOR INDIVIDUALS WITH AT LEAST ONE YEAR OF EXPERIENCE.—An individual meets the requirements under this paragraph if the individual worked in one or more of the positions referred to in paragraph (1)(A)(ii)(III)(bb) for a period of at least one year during the period described in paragraph (1)(A)(i)(I).
“(5) SPECIAL RULE RELATING TO COMBINED WORK HISTORIES FOR MINERS.—An individual meets the requirements of this paragraph if the individual, during the period described in paragraph (1)(A)(i)(I), worked as a miner and was exposed to such number of working level months that the Attorney General determines, when combined with the exposure of such individual to radiation through work as a miller, core driller, or ore transporter during the period described in paragraph (1)(A)(i)(I), results in such individual being exposed to a total level of radiation that is greater or equal to the level of exposure of an individual described in paragraph (4).”.
(f) Definition of core driller.—Section 5(b) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended—
The Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended by inserting after section 5 the following:
“SEC. 5A. Claims relating to Manhattan Project waste.
“(a) In general.—A claimant shall receive compensation for a claim made under this Act, as described in subsection (b) or (c), if—
“(2) that individual, or if applicable, an authorized agent of that individual, demonstrates that such individual—
“(b) Losses available to living affected individuals.—
“(1) IN GENERAL.—In the event of a claim qualifying for compensation under subsection (a) that is submitted to the Attorney General to be eligible for compensation under this section at a time when the individual described in subsection (a)(2) is living, the amount of compensation under this section shall be in an amount that is the greater of $50,000 or the total amount of compensation for which the individual is eligible under paragraph (2).
“(2) LOSSES DUE TO MEDICAL EXPENSES.—A claimant described in paragraph (1) shall be eligible to receive, upon submission of contemporaneous written medical records, reports, or billing statements created by or at the direction of a licensed medical professional who provided contemporaneous medical care to the claimant, additional compensation in the amount of all documented out-of-pocket medical expenses incurred as a result of the specified disease suffered by that claimant, such as any medical expenses not covered, paid for, or reimbursed through—
“(c) Payments to beneficiaries of deceased individuals.—In the event that an individual described in subsection (a)(2) who qualifies for compensation under subsection (a) is deceased at the time of submission of the claim—
“(1) a surviving spouse may, upon submission of a claim and records sufficient to satisfy the requirements of subsection (a) with respect to the deceased individual, receive compensation in the amount of $25,000; or
“(2) in the event that there is no surviving spouse, the surviving children, minor or otherwise, of the deceased individual may, upon submission of a claim and records sufficient to satisfy the requirements of subsection (a) with respect to the deceased individual, receive compensation in the total amount of $25,000, paid in equal shares to each surviving child.
“(d) Affected areas.—For purposes of this section, the term ‘affected area’ means—
“(1) in the State of Missouri, the ZIP Codes of 63031, 63033, 63034, 63042, 63045, 63074, 63114, 63135, 63138, 63044, 63121, 63140, 63145, 63147, 63102, 63304, 63134, 63043, 63341, 63368, and 63367;
“(e) Specified disease.—For purposes of this section, the term ‘specified disease’ means any of the following:
“(1) Any leukemia, provided that the initial exposure occurred after 20 years of age and the onset of the disease was at least 2 years after first exposure.
“(f) Physical presence.—
“(1) IN GENERAL.—For purposes of this section, the Attorney General may not determine that a claimant has satisfied the requirements under subsection (a) unless demonstrated by submission of—
“(g) Disease contraction in affected areas.—For purposes of this section, the Attorney General may not determine that a claimant has satisfied the requirements under subsection (a) unless the claimant submits—
Section 8(a) of the Radiation Exposure Compensation Act (Public Law 101–426; 42 U.S.C. 2210 note) is amended by striking “2 years after the date of enactment of the RECA Extension Act of 2022” and inserting “December 31, 2027”.
Secretary
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