[119th Congress Public Law 21]
[From the U.S. Government Publishing Office]
[[Page 71]]
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Public Law 119-21
119th Congress
An Act
To provide for reconciliation pursuant to title II of H. Con. Res.
14. <<NOTE: July 4, 2025 - [H.R. 1]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Table of contents.
TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
Subtitle A--Nutrition
Sec. 10101. Re-evaluation of thrifty food plan.
Sec. 10102. Modifications to SNAP work requirements for able-bodied
adults.
Sec. 10103. Availability of standard utility allowances based on receipt
of energy assistance.
Sec. 10104. Restrictions on internet expenses.
Sec. 10105. Matching funds requirements.
Sec. 10106. Administrative cost sharing.
Sec. 10107. National education and obesity prevention grant program.
Sec. 10108. Alien SNAP eligibility.
Subtitle B--Forestry
Sec. 10201. Rescission of amounts for forestry.
Subtitle C--Commodities
Sec. 10301. Effective reference price; reference price.
Sec. 10302. Base acres.
Sec. 10303. Producer election.
Sec. 10304. Price loss coverage.
Sec. 10305. Agriculture risk coverage.
Sec. 10306. Equitable treatment of certain entities.
Sec. 10307. Payment limitations.
Sec. 10308. Adjusted gross income limitation.
Sec. 10309. Marketing loans.
Sec. 10310. Repayment of marketing loans.
Sec. 10311. Economic adjustment assistance for textile mills.
Sec. 10312. Sugar program updates.
Sec. 10313. Dairy policy updates.
Sec. 10314. Implementation.
Subtitle D--Disaster Assistance Programs
Sec. 10401. Supplemental agricultural disaster assistance.
Subtitle E--Crop Insurance
Sec. 10501. Beginning farmer and rancher benefit.
Sec. 10502. Area-based crop insurance coverage and affordability.
Sec. 10503. Administrative and operating expense adjustments.
Sec. 10504. Premium support.
Sec. 10505. Program compliance and integrity.
Sec. 10506. Reviews, compliance, and integrity.
Sec. 10507. Poultry insurance pilot program.
Subtitle F--Additional Investments in Rural America
Sec. 10601. Conservation.
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Sec. 10602. Supplemental agricultural trade promotion program.
Sec. 10603. Nutrition.
Sec. 10604. Research.
Sec. 10605. Energy.
Sec. 10606. Horticulture.
Sec. 10607. Miscellaneous.
TITLE II--COMMITTEE ON ARMED SERVICES
Sec. 20001. Enhancement of Department of Defense resources for improving
the quality of life for military personnel.
Sec. 20002. Enhancement of Department of Defense resources for
shipbuilding.
Sec. 20003. Enhancement of Department of Defense resources for
integrated air and missile defense.
Sec. 20004. Enhancement of Department of Defense resources for munitions
and defense supply chain resiliency.
Sec. 20005. Enhancement of Department of Defense resources for scaling
low-cost weapons into production.
Sec. 20006. Enhancement of Department of Defense resources for improving
the efficiency and cybersecurity of the Department of
Defense.
Sec. 20007. Enhancement of Department of Defense resources for air
superiority.
Sec. 20008. Enhancement of resources for nuclear forces.
Sec. 20009. Enhancement of Department of Defense resources to improve
capabilities of United States Indo-Pacific Command.
Sec. 20010. Enhancement of Department of Defense resources for improving
the readiness of the Department of Defense.
Sec. 20011. Improving Department of Defense border support and counter-
drug missions.
Sec. 20012. Department of Defense oversight.
Sec. 20013. Military construction projects authorized.
TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
Sec. 30001. Funding cap for the Bureau of Consumer Financial Protection.
Sec. 30002. Rescission of funds for Green and Resilient Retrofit Program
for Multifamily Housing.
Sec. 30003. Securities and Exchange Commission Reserve Fund.
Sec. 30004. Appropriations for Defense Production Act.
TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
Sec. 40001. Coast Guard mission readiness.
Sec. 40002. Spectrum auctions.
Sec. 40003. Air traffic control improvements.
Sec. 40004. Space launch and reentry licensing and permitting user fees.
Sec. 40005. Mars missions, Artemis missions, and Moon to Mars program.
Sec. 40006. Corporate average fuel economy civil penalties.
Sec. 40007. Payments for lease of Metropolitan Washington Airports.
Sec. 40008. Rescission of certain amounts for the National Oceanic and
Atmospheric Administration.
Sec. 40009. Reduction in annual transfers to Travel Promotion Fund.
Sec. 40010. Treatment of unobligated funds for alternative fuel and low-
emission aviation technology.
Sec. 40011. Rescission of amounts appropriated to Public Wireless Supply
Chain Innovation Fund.
TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES
Subtitle A--Oil and Gas Leasing
Sec. 50101. Onshore oil and gas leasing.
Sec. 50102. Offshore oil and gas leasing.
Sec. 50103. Royalties on extracted methane.
Sec. 50104. Alaska oil and gas leasing.
Sec. 50105. National Petroleum Reserve-Alaska.
Subtitle B--Mining
Sec. 50201. Coal leasing.
Sec. 50202. Coal royalty.
Sec. 50203. Leases for known recoverable coal resources.
Sec. 50204. Authorization to mine Federal coal.
Subtitle C--Lands
Sec. 50301. Timber sales and long-term contracting for the Forest
Service and the Bureau of Land Management.
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Sec. 50302. Renewable energy fees on Federal land.
Sec. 50303. Renewable energy revenue sharing.
Sec. 50304. Rescission of National Park Service and Bureau of Land
Management funds.
Sec. 50305. Celebrating America's 250th anniversary.
Subtitle D--Energy
Sec. 50401. Strategic Petroleum Reserve.
Sec. 50402. Repeals; rescissions.
Sec. 50403. Energy dominance financing.
Sec. 50404. Transformational artificial intelligence models.
Subtitle E--Water
Sec. 50501. Water conveyance and surface water storage enhancement.
TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS
Sec. 60001. Rescission of funding for clean heavy-duty vehicles.
Sec. 60002. Repeal of Greenhouse Gas Reduction Fund.
Sec. 60003. Rescission of funding for diesel emissions reductions.
Sec. 60004. Rescission of funding to address air pollution.
Sec. 60005. Rescission of funding to address air pollution at schools.
Sec. 60006. Rescission of funding for the low emissions electricity
program.
Sec. 60007. Rescission of funding for section 211(o) of the Clean Air
Act.
Sec. 60008. Rescission of funding for implementation of the American
Innovation and Manufacturing Act.
Sec. 60009. Rescission of funding for enforcement technology and public
information.
Sec. 60010. Rescission of funding for greenhouse gas corporate
reporting.
Sec. 60011. Rescission of funding for environmental product declaration
assistance.
Sec. 60012. Rescission of funding for methane emissions and waste
reduction incentive program for petroleum and natural gas
systems.
Sec. 60013. Rescission of funding for greenhouse gas air pollution plans
and implementation grants.
Sec. 60014. Rescission of funding for environmental protection agency
efficient, accurate, and timely reviews.
Sec. 60015. Rescission of funding for low-embodied carbon labeling for
construction materials.
Sec. 60016. Rescission of funding for environmental and climate justice
block grants.
Sec. 60017. Rescission of funding for ESA recovery plans.
Sec. 60018. Rescission of funding for environmental and climate data
collection.
Sec. 60019. Rescission of neighborhood access and equity grant program.
Sec. 60020. Rescission of funding for Federal building assistance.
Sec. 60021. Rescission of funding for low-carbon materials for Federal
buildings.
Sec. 60022. Rescission of funding for GSA emerging and sustainable
technologies.
Sec. 60023. Rescission of environmental review implementation funds.
Sec. 60024. Rescission of low-carbon transportation materials grants.
Sec. 60025. John F. Kennedy Center for the Performing Arts.
Sec. 60026. Project sponsor opt-in fees for environmental reviews.
TITLE VII--FINANCE
Subtitle A--Tax
Sec. 70001. References to the Internal Revenue Code of 1986, etc.
Chapter 1--Providing Permanent Tax Relief for Middle-class Families and
Workers
Sec. 70101. Extension and enhancement of reduced rates.
Sec. 70102. Extension and enhancement of increased standard deduction.
Sec. 70103. Termination of deduction for personal exemptions other than
temporary senior deduction.
Sec. 70104. Extension and enhancement of increased child tax credit.
Sec. 70105. Extension and enhancement of deduction for qualified
business income.
Sec. 70106. Extension and enhancement of increased estate and gift tax
exemption amounts.
Sec. 70107. Extension of increased alternative minimum tax exemption
amounts and modification of phaseout thresholds.
Sec. 70108. Extension and modification of limitation on deduction for
qualified residence interest.
Sec. 70109. Extension and modification of limitation on casualty loss
deduction.
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Sec. 70110. Termination of miscellaneous itemized deductions other than
educator expenses.
Sec. 70111. Limitation on tax benefit of itemized deductions.
Sec. 70112. Extension and modification of qualified transportation
fringe benefits.
Sec. 70113. Extension and modification of limitation on deduction and
exclusion for moving expenses.
Sec. 70114. Extension and modification of limitation on wagering losses.
Sec. 70115. Extension and enhancement of increased limitation on
contributions to ABLE accounts.
Sec. 70116. Extension and enhancement of savers credit allowed for ABLE
contributions.
Sec. 70117. Extension of rollovers from qualified tuition programs to
ABLE accounts permitted.
Sec. 70118. Extension of treatment of certain individuals performing
services in the Sinai Peninsula and enhancement to include
additional areas.
Sec. 70119. Extension and modification of exclusion from gross income of
student loans discharged on account of death or disability.
Sec. 70120. Limitation on individual deductions for certain state and
local taxes, etc.
Chapter 2--Delivering on Presidential Priorities to Provide New Middle-
class Tax Relief
Sec. 70201. No tax on tips.
Sec. 70202. No tax on overtime.
Sec. 70203. No tax on car loan interest.
Sec. 70204. Trump accounts and contribution pilot program.
Chapter 3--Establishing Certainty and Competitiveness for American Job
Creators
subchapter a--permanent u.s. business tax reform and boosting domestic
investment
Sec. 70301. Full expensing for certain business property.
Sec. 70302. Full expensing of domestic research and experimental
expenditures.
Sec. 70303. Modification of limitation on business interest.
Sec. 70304. Extension and enhancement of paid family and medical leave
credit.
Sec. 70305. Exceptions from limitations on deduction for business meals.
Sec. 70306. Increased dollar limitations for expensing of certain
depreciable business assets.
Sec. 70307. Special depreciation allowance for qualified production
property.
Sec. 70308. Enhancement of advanced manufacturing investment credit.
Sec. 70309. Spaceports are treated like airports under exempt facility
bond rules.
subchapter b--permanent america-first international tax reforms
PART I--Foreign Tax Credit
Sec. 70311. Modifications related to foreign tax credit limitation.
Sec. 70312. Modifications to determination of deemed paid credit for
taxes properly attributable to tested income.
Sec. 70313. Sourcing certain income from the sale of inventory produced
in the United States.
PART II--Foreign-derived Deduction Eligible Income and Net CFC Tested
Income
Sec. 70321. Modification of deduction for foreign-derived deduction
eligible income and net CFC tested income.
Sec. 70322. Determination of deduction eligible income.
Sec. 70323. Rules related to deemed intangible income.
PART III--Base Erosion Minimum Tax
Sec. 70331. Extension and modification of base erosion minimum tax
amount.
PART IV--Business Interest Limitation
Sec. 70341. Coordination of business interest limitation with interest
capitalization provisions.
Sec. 70342. Definition of adjusted taxable income for business interest
limitation.
PART V--Other International Tax Reforms
Sec. 70351. Permanent extension of look-thru rule for related controlled
foreign corporations.
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Sec. 70352. Repeal of election for 1-month deferral in determination of
taxable year of specified foreign corporations.
Sec. 70353. Restoration of limitation on downward attribution of stock
ownership in applying constructive ownership rules.
Sec. 70354. Modifications to pro rata share rules.
Chapter 4--Investing in American Families, Communities, and Small
Businesses
subchapter a--permanent investments in families and children
Sec. 70401. Enhancement of employer-provided child care credit.
Sec. 70402. Enhancement of adoption credit.
Sec. 70403. Recognizing Indian tribal governments for purposes of
determining whether a child has special needs for purposes of
the adoption credit.
Sec. 70404. Enhancement of the dependent care assistance program.
Sec. 70405. Enhancement of child and dependent care tax credit.
subchapter b--permanent investments in students and reforms to tax-
exempt institutions
Sec. 70411. Tax credit for contributions of individuals to scholarship
granting organizations.
Sec. 70412. Exclusion for employer payments of student loans.
Sec. 70413. Additional expenses treated as qualified higher education
expenses for purposes of 529 accounts.
Sec. 70414. Certain postsecondary credentialing expenses treated as
qualified higher education expenses for purposes of 529
accounts.
Sec. 70415. Modification of excise tax on investment income of certain
private colleges and universities.
Sec. 70416. Expanding application of tax on excess compensation within
tax-exempt organizations.
subchapter c--permanent investments in community development
Sec. 70421. Permanent renewal and enhancement of opportunity zones.
Sec. 70422. Permanent enhancement of low-income housing tax credit.
Sec. 70423. Permanent extension of new markets tax credit.
Sec. 70424. Permanent and expanded reinstatement of partial deduction
for charitable contributions of individuals who do not elect
to itemize.
Sec. 70425. 0.5 percent floor on deduction of contributions made by
individuals.
Sec. 70426. 1-percent floor on deduction of charitable contributions
made by corporations.
Sec. 70427. Permanent increase in limitation on cover over of tax on
distilled spirits.
Sec. 70428. Nonprofit community development activities in remote native
villages.
Sec. 70429. Adjustment of charitable deduction for certain expenses
incurred in support of Native Alaskan subsistence whaling.
Sec. 70430. Exception to percentage of completion method of accounting
for certain residential construction contracts.
subchapter d--permanent investments in small business and rural america
Sec. 70431. Expansion of qualified small business stock gain exclusion.
Sec. 70432. Repeal of revision to de minimis rules for third party
network transactions.
Sec. 70433. Increase in threshold for requiring information reporting
with respect to certain payees.
Sec. 70434. Treatment of certain qualified sound recording productions.
Sec. 70435. Exclusion of interest on loans secured by rural or
agricultural real property.
Sec. 70436. Reduction of transfer and manufacturing taxes for certain
devices.
Sec. 70437. Treatment of capital gains from the sale of certain farmland
property.
Sec. 70438. Extension of rules for treatment of certain disaster-related
personal casualty losses.
Sec. 70439. Restoration of taxable REIT subsidiary asset test.
Chapter 5--Ending Green New Deal Spending, Promoting America-first
Energy, and Other Reforms
subchapter a--termination of green new deal subsidies
Sec. 70501. Termination of previously-owned clean vehicle credit.
Sec. 70502. Termination of clean vehicle credit.
Sec. 70503. Termination of qualified commercial clean vehicles credit.
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Sec. 70504. Termination of alternative fuel vehicle refueling property
credit.
Sec. 70505. Termination of energy efficient home improvement credit.
Sec. 70506. Termination of residential clean energy credit.
Sec. 70507. Termination of energy efficient commercial buildings
deduction.
Sec. 70508. Termination of new energy efficient home credit.
Sec. 70509. Termination of cost recovery for energy property.
Sec. 70510. Modifications of zero-emission nuclear power production
credit.
Sec. 70511. Termination of clean hydrogen production credit.
Sec. 70512. Termination and restrictions on clean electricity production
credit.
Sec. 70513. Termination and restrictions on clean electricity investment
credit.
Sec. 70514. Phase-out and restrictions on advanced manufacturing
production credit.
Sec. 70515. Restriction on the extension of advanced energy project
credit program.
subchapter b--enhancement of america-first energy policy
Sec. 70521. Extension and modification of clean fuel production credit.
Sec. 70522. Restrictions on carbon oxide sequestration credit.
Sec. 70523. Intangible drilling and development costs taken into account
for purposes of computing adjusted financial statement
income.
Sec. 70524. Income from hydrogen storage, carbon capture, advanced
nuclear, hydropower, and geothermal energy added to
qualifying income of certain publicly traded partnerships.
Sec. 70525. Allow for payments to certain individuals who dye fuel.
subchapter c--other reforms
Sec. 70531. Modifications to de minimis entry privilege for commercial
shipments.
Chapter 6--Enhancing Deduction and Income Tax Credit Guardrails, and
Other Reforms
Sec. 70601. Modification and extension of limitation on excess business
losses of noncorporate taxpayers.
Sec. 70602. Treatment of payments from partnerships to partners for
property or services.
Sec. 70603. Excessive employee remuneration from controlled group
members and allocation of deduction.
Sec. 70604. Excise tax on certain remittance transfers.
Sec. 70605. Enforcement provisions with respect to COVID-related
employee retention credits.
Sec. 70606. Social security number requirement for American Opportunity
and Lifetime Learning credits.
Sec. 70607. Task force on the replacement of Direct File.
Subtitle B--Health
Chapter 1--Medicaid
subchapter a--reducing fraud and improving enrollment processes
Sec. 71101. Moratorium on implementation of rule relating to eligibility
and enrollment in Medicare Savings Programs.
Sec. 71102. Moratorium on implementation of rule relating to eligibility
and enrollment for Medicaid, CHIP, and the Basic Health
Program.
Sec. 71103. Reducing duplicate enrollment under the Medicaid and CHIP
programs.
Sec. 71104. Ensuring deceased individuals do not remain enrolled.
Sec. 71105. Ensuring deceased providers do not remain enrolled.
Sec. 71106. Payment reduction related to certain erroneous excess
payments under Medicaid.
Sec. 71107. Eligibility redeterminations.
Sec. 71108. Revising home equity limit for determining eligibility for
long-term care services under the Medicaid program.
Sec. 71109. Alien Medicaid eligibility.
Sec. 71110. Expansion FMAP for emergency Medicaid.
subchapter b--preventing wasteful spending
Sec. 71111. Moratorium on implementation of rule relating to staffing
standards for long-term care facilities under the Medicare
and Medicaid programs.
Sec. 71112. Reducing State Medicaid costs.
Sec. 71113. Federal payments to prohibited entities.
subchapter c--stopping abusive financing practices
Sec. 71114. Sunsetting increased FMAP incentive.
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Sec. 71115. Provider taxes.
Sec. 71116. State directed payments.
Sec. 71117. Requirements regarding waiver of uniform tax requirement for
Medicaid provider tax.
Sec. 71118. Requiring budget neutrality for Medicaid demonstration
projects under section 1115.
subchapter d--increasing personal accountability
Sec. 71119. Requirement for States to establish Medicaid community
engagement requirements for certain individuals.
Sec. 71120. Modifying cost sharing requirements for certain expansion
individuals under the Medicaid program.
subchapter e--expanding access to care
Sec. 71121. Making certain adjustments to coverage of home or community-
based services under Medicaid.
Chapter 2--Medicare
subchapter a--strengthening eligibility requirements
Sec. 71201. Limiting Medicare coverage of certain individuals.
subchapter b--improving services for seniors
Sec. 71202. Temporary payment increase under the medicare physician fee
schedule to account for exceptional circumstances.
Sec. 71203. Expanding and clarifying the exclusion for orphan drugs
under the Drug Price Negotiation Program.
Chapter 3--Health Tax
subchapter a--improving eligibility criteria
Sec. 71301. Permitting premium tax credit only for certain individuals.
Sec. 71302. Disallowing premium tax credit during periods of medicaid
ineligibility due to alien status.
subchapter b--preventing waste, fraud, and abuse
Sec. 71303. Requiring verification of eligibility for premium tax
credit.
Sec. 71304. Disallowing premium tax credit in case of certain coverage
enrolled in during special enrollment period.
Sec. 71305. Eliminating limitation on recapture of advance payment of
premium tax credit.
subchapter c--enhancing choice for patients
Sec. 71306. Permanent extension of safe harbor for absence of deductible
for telehealth services.
Sec. 71307. Allowance of bronze and catastrophic plans in connection
with health savings accounts.
Sec. 71308. Treatment of direct primary care service arrangements.
Chapter 4--Protecting Rural Hospitals and Providers
Sec. 71401. Rural Health Transformation Program.
Subtitle C--Increase in Debt Limit
Sec. 72001. Modification of limitation on the public debt.
Subtitle D--Unemployment
Sec. 73001. Ending unemployment payments to jobless millionaires.
TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS
Subtitle A--Exemption of Certain Assets
Sec. 80001. Exemption of certain assets.
Subtitle B--Loan Limits
Sec. 81001. Establishment of loan limits for graduate and professional
students and parent borrowers; termination of graduate and
professional PLUS loans.
Subtitle C--Loan Repayment
Sec. 82001. Loan repayment.
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Sec. 82002. Deferment; forbearance.
Sec. 82003. Loan rehabilitation.
Sec. 82004. Public service loan forgiveness.
Sec. 82005. Student loan servicing.
Subtitle D--Pell Grants
Sec. 83001. Eligibility.
Sec. 83002. Workforce Pell Grants.
Sec. 83003. Pell shortfall.
Sec. 83004. Federal Pell Grant exclusion relating to other grant aid.
Subtitle E--Accountability
Sec. 84001. Ineligibility based on low earning outcomes.
Subtitle F--Regulatory Relief
Sec. 85001. Delay of rule relating to borrower defense to repayment.
Sec. 85002. Delay of rule relating to closed school discharges.
Subtitle G--Garden of Heroes
Sec. 86001. Garden of Heroes.
Subtitle H--Office of Refugee Resettlement
Sec. 87001. Potential sponsor vetting for unaccompanied alien children
appropriation.
TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
Subtitle A--Homeland Security Provisions
Sec. 90001. Border infrastructure and wall system.
Sec. 90002. U.S. Customs and Border Protection personnel, fleet
vehicles, and facilities.
Sec. 90003. Detention capacity.
Sec. 90004. Border security, technology, and screening.
Sec. 90005. State and local assistance.
Sec. 90006. Presidential residence protection.
Sec. 90007. Department of Homeland Security appropriations for border
support.
Subtitle B--Governmental Affairs Provisions
Sec. 90101. FEHB improvements.
Sec. 90102. Pandemic Response Accountability Committee.
Sec. 90103. Appropriation for the Office of Management and Budget.
TITLE X--COMMITTEE ON THE JUDICIARY
Subtitle A--Immigration and Law Enforcement Matters
PART I--Immigration Fees
Sec. 100001. Applicability of the immigration laws.
Sec. 100002. Asylum fee.
Sec. 100003. Employment authorization document fees.
Sec. 100004. Immigration parole fee.
Sec. 100005. Special immigrant juvenile fee.
Sec. 100006. Temporary protected status fee.
Sec. 100007. Visa integrity fee.
Sec. 100008. Form I-94 fee.
Sec. 100009. Annual asylum fee.
Sec. 100010. Fee relating to renewal and extension of employment
authorization for parolees.
Sec. 100011. Fee relating to renewal or extension of employment
authorization for asylum applicants.
Sec. 100012. Fee relating to renewal and extension of employment
authorization for aliens granted temporary protected status.
Sec. 100013. Fees relating to applications for adjustment of status.
Sec. 100014. Electronic System for Travel Authorization fee.
Sec. 100015. Electronic Visa Update System fee.
Sec. 100016. Fee for aliens ordered removed in absentia.
Sec. 100017. Inadmissible alien apprehension fee.
Sec. 100018. Amendment to authority to apply for asylum.
PART II--Immigration and Law Enforcement Funding
Sec. 100051. Appropriation for the Department of Homeland Security.
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Sec. 100052. Appropriation for U.S. Immigration and Customs Enforcement.
Sec. 100053. Appropriation for Federal Law Enforcement Training Centers.
Sec. 100054. Appropriation for the Department of Justice.
Sec. 100055. Bridging Immigration-related Deficits Experienced
Nationwide Reimbursement Fund.
Sec. 100056. Appropriation for the Bureau of Prisons.
Sec. 100057. Appropriation for the United States Secret Service.
Subtitle B--Judiciary Matters
Sec. 100101. Appropriation to the Administrative Office of the United
States Courts.
Sec. 100102. Appropriation to the Federal Judicial Center.
Subtitle C--Radiation Exposure Compensation Matters
Sec. 100201. Extension of fund.
Sec. 100202. Claims relating to atmospheric testing.
Sec. 100203. Claims relating to uranium mining.
Sec. 100204. Claims relating to Manhattan Project waste.
Sec. 100205. Limitations on claims.
TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
Subtitle A--Nutrition
SEC. 10101. RE-EVALUATION OF THRIFTY FOOD PLAN.
(a) In General.--Section 3 of the Food and Nutrition Act of 2008 (7
U.S.C. 2012) is amended by striking subsection (u) and inserting the
following:
``(u) Thrifty Food Plan.--
``(1) <<NOTE: Definition.>> In general.--The term `thrifty
food plan' means the diet required to feed a family of 4 persons
consisting of a man and a woman ages 20 through 50, a child ages
6 through 8, and a child ages 9 through 11 using the items and
quantities of food described in the report of the Department of
Agriculture entitled `Thrifty Food Plan, 2021', and each
successor report updated pursuant to this subsection, subject to
the conditions that--
``(A) the relevant market baskets of the thrifty
food plan shall only be changed pursuant to paragraph
(4);
``(B) the cost of the thrifty food plan shall be the
basis for uniform allotments for all households,
regardless of the actual composition of the household;
and
``(C) the cost of the thrifty food plan may only be
adjusted in accordance with this subsection.
``(2) Household adjustments.--The Secretary shall make
household adjustments using the following ratios of household
size as a percentage of the maximum 4-person allotment:
``(A) For a 1-person household, 30 percent.
``(B) For a 2-person household, 55 percent.
``(C) For a 3-person household, 79 percent.
``(D) For a 4-person household, 100 percent.
``(E) For a 5-person household, 119 percent.
``(F) For a 6-person household, 143 percent.
``(G) For a 7-person household, 158 percent.
``(H) For an 8-person household, 180 percent.
[[Page 139 STAT. 81]]
``(I) For a household of 9 persons or more, an
additional 22 percent per person, which additional
percentage shall not total more than 200 percent.
``(3) Allowable cost adjustments.--The Secretary shall--
``(A) <<NOTE: Hawaii. Alaska.>> make cost
adjustments in the thrifty food plan for Hawaii and the
urban and rural parts of Alaska to reflect the cost of
food in Hawaii and urban and rural Alaska;
``(B) <<NOTE: Guam. Virgin Islands.>> make cost
adjustments in the separate thrifty food plans for Guam
and the Virgin Islands of the United States to reflect
the cost of food in those States, but not to exceed the
cost of food in the 50 States and the District of
Columbia; and
``(C) <<NOTE: Effective dates. Time
period. Expiration date.>> on October 1, 2025, and on
each October 1 thereafter, adjust the cost of the
thrifty food plan to reflect changes in the Consumer
Price Index for All Urban Consumers, published by the
Bureau of Labor Statistics of the Department of Labor,
for the most recent 12-month period ending in June.
``(4) Re-evaluation of market baskets.--
``(A) <<NOTE: Deadline.>> Re-evaluation.--Not
earlier than October 1, 2027, the Secretary may re-
evaluate the market baskets of the thrifty food plan
based on current food prices, food composition data,
consumption patterns, and dietary guidance.
``(B) Cost neutrality.--The Secretary shall not
increase the cost of the thrifty food plan based on a
re-evaluation under this paragraph.''.
(b) Conforming Amendments.--
(1) Section 16(c)(1)(A)(ii)(II) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2025(c)(1)(A)(ii)(II)) is amended by
striking ``section 3(u)(4)'' and inserting ``section 3(u)(3)''.
(2) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of
2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking
``section 3(u)(4)'' and inserting ``section 3(u)(3)''.
(3) Section 27(a)(2) of the Food and Nutrition Act of 2008
(7 U.S.C. 2036(a)(2))) is amended by striking ``section
3(u)(4)'' each place it appears and inserting ``section
3(u)(3)''.
SEC. 10102. MODIFICATIONS TO SNAP WORK REQUIREMENTS FOR ABLE-
BODIED ADULTS.
(a) Exceptions.--Section 6(o) of the Food and Nutrition Act of 2008
(7 U.S.C. 2015(o)) is amended by striking paragraph (3) and inserting
the following:
``(3) Exceptions.--Paragraph (2) shall not apply to an
individual if the individual is--
``(A) under 18, or over 65, years of age;
``(B) medically certified as physically or mentally
unfit for employment;
``(C) a parent or other member of a household with
responsibility for a dependent child under 14 years of
age;
``(D) otherwise exempt under subsection (d)(2);
``(E) a pregnant woman;
``(F) an Indian or an Urban Indian (as such terms
are defined in paragraphs (13) and (28) of section 4 of
the Indian Health Care Improvement Act); or
[[Page 139 STAT. 82]]
``(G) a California Indian described in section
809(a) of the Indian Health Care Improvement Act.''.
(b) Standardizing Enforcement.--Section 6(o)(4) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2015(o)(4)) is amended--
(1) in subparagraph (A), by striking clause (ii) and
inserting the following:
``(ii) is in a noncontiguous State and has an
unemployment rate that is at or above 1.5 times
the national unemployment rate.''; and
(2) by adding at the end the following:
``(C) Definition of noncontiguous state.--
``(i) In general.--In this paragraph, the term
`noncontiguous State' means a State that is not 1
of the contiguous 48 States or the District of
Columbia.
``(ii) Exclusions.--The term `noncontiguous
State' does not include Guam or the Virgin Islands
of the United States.''.
(c) Waiver for Noncontiguous States.--Section 6(o) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended--
(1) by redesignating paragraph (7) as paragraph (8); and
(2) by inserting after paragraph (6) the following:
``(7) Exemption for noncontiguous states.--
``(A) Definition of noncontiguous state.--
``(i) In general.--In this paragraph, the term
`noncontiguous State' means a State that is not 1
of the contiguous 48 States or the District of
Columbia.
``(ii) Exclusions.--In this paragraph, the
term `noncontiguous State' does not include Guam
or the Virgin Islands of the United States.
``(B) Exemption.--Subject to subparagraph (D), the
Secretary may exempt individuals in a noncontiguous
State from compliance with the requirements of paragraph
(2) if--
``(i) the State agency submits to the
Secretary a request for that exemption, made in
such form and at such time as the Secretary may
require, and including the information described
in subparagraph (C); and
``(ii) <<NOTE: Determination. Compliance.>> the
Secretary determines that based on that request,
the State agency is demonstrating a good faith
effort to comply with the requirements of
paragraph (2).
``(C) Good faith effort determination.--In
determining whether a State agency is demonstrating a
good faith effort for purposes of subparagraph (B)(ii),
the Secretary shall consider--
``(i) any actions taken by the State agency
toward compliance with the requirements of
paragraph (2);
``(ii) any significant barriers to or
challenges in meeting those requirements,
including barriers or challenges relating to
funding, design, development, procurement, or
installation of necessary systems or resources;
``(iii) the detailed plan and timeline of the
State agency for achieving full compliance with
those requirements, including any milestones (as
defined by the Secretary); and
[[Page 139 STAT. 83]]
``(iv) any other criteria determined
appropriate by the Secretary.
``(D) Duration of exemption.--
``(i) <<NOTE: Deadline.>> In general.--An
exemption granted under subparagraph (B) shall
expire not later than December 31, 2028, and may
not be renewed beyond that date.
``(ii) <<NOTE: Determination.>> Early
termination.--The Secretary may terminate an
exemption granted under subparagraph (B) prior to
the expiration date of that exemption if the
Secretary determines that the State agency--
``(I) <<NOTE: Compliance.>> has
failed to comply with the reporting
requirements described in subparagraph
(E); or
``(II) based on the information
provided pursuant to subparagraph (E),
failed to make continued good faith
efforts toward compliance with the
requirements of this subsection.
``(E) Reporting requirements.--A State agency
granted an exemption under subparagraph (B) shall submit
to the Secretary--
``(i) quarterly progress reports on the status
of the State agency in achieving the milestones
toward full compliance described in subparagraph
(C)(iii); and
``(ii) <<NOTE: Plan.>> information on specific
risks or newly identified barriers or challenges
to full compliance, including the plan of the
State agency to mitigate those risks, barriers, or
challenges.''.
SEC. 10103. AVAILABILITY OF STANDARD UTILITY ALLOWANCES BASED ON
RECEIPT OF ENERGY ASSISTANCE.
(a) Standard Utility Allowance.--Section 5(e)(6)(C)(iv)(I) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)(iv)(I)) is
amended by inserting ``with an elderly or disabled member'' after
``households''.
(b) Third-party Energy Assistance Payments.--Section 5(k)(4) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2014(k)(4)) is amended--
(1) in subparagraph (A), by inserting ``without an elderly
or disabled member'' before ``shall be''; and
(2) in subparagraph (B), by inserting ``with an elderly or
disabled member'' before ``under a State law''.
SEC. 10104. RESTRICTIONS ON INTERNET EXPENSES.
Section 5(e)(6) of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(e)(6)) is amended by adding at the end the following:
``(E) Restrictions on internet expenses.--Any
service fee associated with internet connection shall
not be used in computing the excess shelter expense
deduction under this paragraph.''.
SEC. 10105. MATCHING FUNDS REQUIREMENTS.
(a) In General.--Section 4(a) of the Food and Nutrition Act of 2008
(7 U.S.C. 2013(a)) is amended--
(1) by striking ``(a) Subject to'' and inserting the
following:
``(a) Program.--
``(1) Establishment.--Subject to''; and
(2) by adding at the end the following:
``(2) State quality control incentive.--
[[Page 139 STAT. 84]]
``(A) Definition of payment error rate.--In this
paragraph, the term `payment error rate' has the meaning
given the term in section 16(c)(2).
``(B) <<NOTE: Time periods.>> State cost share.--
``(i) <<NOTE: Effective date.>> In general.--
Subject to clause (iii), beginning in fiscal year
2028, if the payment error rate of a State as
determined under clause (ii) is--
``(I) less than 6 percent, the
Federal share of the cost of the
allotment described in paragraph (1) for
that State in a fiscal year shall be 100
percent, and the State share shall be 0
percent;
``(II) equal to or greater than 6
percent but less than 8 percent, the
Federal share of the cost of the
allotment described in paragraph (1) for
that State in a fiscal year shall be 95
percent, and the State share shall be 5
percent;
``(III) equal to or greater than 8
percent but less than 10 percent, the
Federal share of the cost of the
allotment described in paragraph (1) for
that State in a fiscal year shall be 90
percent, and the State share shall be 10
percent; and
``(IV) equal to or greater than 10
percent, the Federal share of the cost
of the allotment described in paragraph
(1) for that State in a fiscal year
shall be 85 percent, and the State share
shall be 15 percent.
``(ii) Elections.--
``(I) Fiscal year 2028.--For fiscal
year 2028, to calculate the applicable
State share under clause (i), a State
may elect to use the payment error rate
of the State from fiscal year 2025 or
2026.
``(II) Fiscal year 2029 and
thereafter.--For fiscal year 2029 and
each fiscal year thereafter, to
calculate the applicable State share
under clause (i), the Secretary shall
use the payment error rate of the State
for the third fiscal year preceding the
fiscal year for which the State share is
being calculated.
``(iii) Delayed implementation.--
``(I) Fiscal year 2025.--If, for
fiscal year 2025, the payment error rate
of a State multiplied by 1.5 is equal to
or above 20 percent, the implementation
date under clause (i) for that State
shall be fiscal year 2029.
``(II) Fiscal year 2026.--If, for
fiscal year 2026, the payment error rate
of a State multiplied by 1.5 is equal to
or above 20 percent, the implementation
date under clause (i) for that State
shall be fiscal year 2030.
``(3) Maximum federal payment.--The Secretary may not pay
towards the cost of an allotment described in paragraph (1) an
amount that is greater than the applicable Federal share under
paragraph (2).''.
(b) Limitation on Authority.--Section 13(a)(1) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in
[[Page 139 STAT. 85]]
the first sentence by inserting ``or the payment or disposition of a
State share under section 4(a)(2)'' after ``16(c)(1)(D)(i)(II)''.
SEC. 10106. ADMINISTRATIVE COST SHARING.
Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(a)) is amended in the matter preceding paragraph (1) by striking
``agency an amount equal to 50 per centum'' and inserting ``agency,
through fiscal year 2026, 50 percent, and for fiscal year 2027 and each
fiscal year thereafter, 25 percent,''.
SEC. 10107. NATIONAL EDUCATION AND OBESITY PREVENTION GRANT
PROGRAM.
Section 28(d)(1)(F) of the Food and Nutrition Act of 2008 (7 U.S.C.
2036a(d)(1)(F)) is amended by striking ``for fiscal year 2016 and each
subsequent fiscal year'' and inserting ``for each of fiscal years 2016
through 2025''.
SEC. 10108. ALIEN SNAP ELIGIBILITY.
Section 6(f) of the Food and Nutrition Act of 2008 (7 U.S.C.
2015(f)) is amended to read as follows:
``(f) No individual who is a member of a household otherwise
eligible to participate in the supplemental nutrition assistance program
under this section shall be eligible to participate in the supplemental
nutrition assistance program as a member of that or any other household
unless he or she is--
``(1) a resident of the United States; and
``(2) either--
``(A) a citizen or national of the United States;
``(B) an alien lawfully admitted for permanent
residence as an immigrant as defined by sections
101(a)(15) and 101(a)(20) of the Immigration and
Nationality Act, excluding, among others, alien
visitors, tourists, diplomats, and students who enter
the United States temporarily with no intention of
abandoning their residence in a foreign country;
``(C) an alien who has been granted the status of
Cuban and Haitian entrant, as defined in section 501(e)
of the Refugee Education Assistance Act of 1980 (Public
Law 96-422); or
``(D) an individual who lawfully resides in the
United States in accordance with a Compact of Free
Association referred to in section 402(b)(2)(G) of the
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996.
The income (less, at State option, a pro rata share) and
financial resources of the individual rendered ineligible to
participate in the supplemental nutrition assistance program
under this subsection shall be considered in determining the
eligibility and the value of the allotment of the household of
which such individual is a member.''.
Subtitle B--Forestry
SEC. 10201. RESCISSION OF AMOUNTS FOR FORESTRY.
The unobligated balances of amounts appropriated by the following
provisions of Public Law 117-169 are rescinded:
(1) Paragraphs (3) and (4) of section 23001(a) (136 Stat.
2023).
[[Page 139 STAT. 86]]
(2) Paragraphs (1) through (4) of section 23002(a) (136
Stat. 2025).
(3) Section 23003(a)(2) (136 Stat. 2026).
(4) Section 23005 (136 Stat. 2027).
Subtitle C--Commodities
SEC. 10301. EFFECTIVE REFERENCE PRICE; REFERENCE PRICE.
(a) Effective Reference Price.--Section 1111(8)(B)(ii) of the
Agricultural Act of 2014 (7 U.S.C. 9011(8)(B)(ii)) is amended by
striking ``85'' and inserting ``beginning with the crop year 2025, 88''.
(b) Reference Price.--Section 1111 of the Agricultural Act of 2014
(7 U.S.C. 9011) is amended by striking paragraph (19) and inserting the
following:
``(19) <<NOTE: Effective dates.>> Reference price.--
``(A) In general.--Effective beginning with the 2025
crop year, subject to subparagraphs (B) and (C), the
term `reference price', with respect to a covered
commodity for a crop year, means the following:
``(i) For wheat, $6.35 per bushel.
``(ii) For corn, $4.10 per bushel.
``(iii) For grain sorghum, $4.40 per bushel.
``(iv) For barley, $5.45 per bushel.
``(v) For oats, $2.65 per bushel.
``(vi) For long grain rice, $16.90 per
hundredweight.
``(vii) For medium grain rice, $16.90 per
hundredweight.
``(viii) For soybeans, $10.00 per bushel.
``(ix) For other oilseeds, $23.75 per
hundredweight.
``(x) For peanuts, $630.00 per ton.
``(xi) For dry peas, $13.10 per hundredweight.
``(xii) For lentils, $23.75 per hundredweight.
``(xiii) For small chickpeas, $22.65 per
hundredweight.
``(xiv) For large chickpeas, $25.65 per
hundredweight.
``(xv) For seed cotton, $0.42 per pound.
``(B) Effectiveness.--Effective beginning with the
2031 crop year, the reference prices defined in
subparagraph (A) with respect to a covered commodity
shall equal the reference price in the previous crop
year multiplied by 1.005.
``(C) Limitation.--In no case shall a reference
price for a covered commodity exceed 113 percent of the
reference price for such covered commodity listed in
subparagraph (A).''.
SEC. 10302. BASE ACRES.
Section 1112 of the Agricultural Act of 2014 (7 U.S.C. 9012) is
amended--
(1) in subsection (d)(3)(A), by striking ``2023'' and
inserting ``2031''; and
(2) by adding at the end the following:
``(e) Additional Base Acres.--
[[Page 139 STAT. 87]]
``(1) <<NOTE: Notice.>> In general.--As soon as practicable
after the date of enactment of this subsection, and
notwithstanding subsection (a), the Secretary shall provide
notice to owners of eligible farms pursuant to paragraph (3) and
allocate to those eligible farms a total of not more than an
additional 30,000,000 base acres in the manner provided in this
subsection. <<NOTE: Notification. Deadline.>> An owner of a farm
that is eligible to receive an allocation of base acres may
elect to not receive that allocation by notifying the Secretary
not later than 90 days after receipt of the notice provided by
the Secretary under this paragraph.
``(2) Content of notice.--The notice under paragraph (1)
shall include the following:
``(A) Information that the allocation is occurring.
``(B) Information regarding the eligibility of the
farm for an allocation of base acres under paragraph
(3).
``(C) <<NOTE: Process.>> Information regarding how
an owner may appeal a determination of ineligibility for
an allocation of base acres under paragraph (3) through
an appeals process established by the Secretary.
``(3) Eligibility.--
``(A) <<NOTE: Effective date.>> In general.--Subject
to subparagraph (D), effective beginning with the 2026
crop year, a farm is eligible to receive an allocation
of base acres if, with respect to the farm, the amount
described in subparagraph (B) exceeds the amount
described in subparagraph (C).
``(B) 5-year average sum.--The amount described in
this subparagraph, with respect to a farm, is the sum
of--
``(i) the 5-year average of--
``(I) the acreage planted on the
farm to all covered commodities for
harvest, grazing, haying, silage or
other similar purposes for the 2019
through 2023 crop years; and
``(II) <<NOTE: Determination.>> any
acreage on the farm that the producers
were prevented from planting during the
2019 through 2023 crop years to covered
commodities because of drought, flood,
or other natural disaster, or other
condition beyond the control of the
producers, as determined by the
Secretary; plus
``(ii) the lesser of--
``(I) 15 percent of the total acres
on the farm; and
``(II) the 5-year average of--
``(aa) the acreage planted
on the farm to eligible
noncovered commodities for
harvest, grazing, haying,
silage, or other similar
purposes for the 2019 through
2023 crop years; and
``(bb) <<NOTE: Determination.>> a
ny acreage on the farm that the
producers were prevented from
planting during the 2019 through
2023 crop years to eligible
noncovered commodities because
of drought, flood, or other
natural disaster, or other
condition beyond the control of
the producers, as determined by
the Secretary.
[[Page 139 STAT. 88]]
``(C) Total number of base acres for covered
commodities.-- <<NOTE: Effective date.>> The amount
described in this subparagraph, with respect to a farm,
is the total number of base acres for covered
commodities on the farm (excluding unassigned crop
base), as in effect on September 30, 2024.
``(D) Effect of no recent plantings of covered
commodities.--In the case of a farm for which the amount
determined under clause (i) of subparagraph (B) is equal
to zero, that farm shall be ineligible to receive an
allocation of base acres under this subsection.
``(E) Acreage planted on the farm to eligible
noncovered commodities defined.--In this paragraph, the
term `acreage planted on the farm to eligible noncovered
commodities' means acreage planted on a farm to
commodities other than covered commodities, trees,
bushes, vines, grass, or pasture (including cropland
that was idle or fallow), as determined by the
Secretary.
``(4) Number of base acres.--Subject to paragraphs (3) and
(8), the number of base acres allocated to an eligible farm
shall--
``(A) be equal to the difference obtained by
subtracting the amount determined under subparagraph (C)
of paragraph (3) from the amount determined under
subparagraph (B) of that paragraph; and
``(B) include unassigned crop base.
``(5) <<NOTE: Time periods. Determinations.>> Allocation of
acres.--
``(A) Allocation.--The Secretary shall allocate the
number of base acres under paragraph (4) among those
covered commodities planted on the farm at any time
during the 2019 through 2023 crop years.
``(B) Allocation formula.--The allocation of
additional base acres for covered commodities shall be
in proportion to the ratio of--
``(i) the 5-year average of--
``(I) the acreage planted on the
farm to each covered commodity for
harvest, grazing, haying, silage, or
other similar purposes for the 2019
through 2023 crop years; and
``(II) any acreage on the farm that
the producers were prevented from
planting during the 2019 through 2023
crop years to that covered commodity
because of drought, flood, or other
natural disaster, or other condition
beyond the control of the producers, as
determined by the Secretary; to
``(ii) the 5-year average determined under
paragraph (3)(B)(i).
``(C) Inclusion of all 5 years in average.--For the
purpose of determining a 5-year acreage average under
subparagraph (B) for a farm, the Secretary shall not
exclude any crop year in which a covered commodity was
not planted.
``(D) Treatment of multiple planting or prevented
planting.--For the purpose of determining under
subparagraph (B) the acreage on a farm that producers
planted or were prevented from planting during the 2019
through 2023 crop years to covered commodities, if the
acreage
[[Page 139 STAT. 89]]
that was planted or prevented from being planted was
devoted to another covered commodity in the same crop
year (other than a covered commodity produced under an
established practice of double cropping), the owner may
elect the covered commodity to be used for that crop
year in determining the 5-year average, but may not
include both the initial covered commodity and the
subsequent covered commodity.
``(E) Limitation.--The allocation of additional base
acres among covered commodities on a farm under this
paragraph may not result in a total number of base acres
for the farm in excess of the total number of acres on
the farm.
``(6) <<NOTE: Applicability.>> Reduction by the secretary.--
In carrying out this subsection, if the total number of eligible
acres allocated to base acres across all farms in the United
States under this subsection would exceed 30,000,000 acres, the
Secretary shall apply an across-the-board, pro-rata reduction to
the number of eligible acres to ensure the number of allocated
base acres under this subsection is equal to 30,000,000 acres.
``(7) <<NOTE: Effective date.>> Payment yield.--Beginning
with crop year 2026, for the purpose of making price loss
coverage payments under section 1116, the Secretary shall
establish payment yields to base acres allocated under this
subsection equal to--
``(A) the payment yield established on the farm for
the applicable covered commodity; and
``(B) if no such payment yield for the applicable
covered commodity exists, a payment yield--
``(i) equal to the average payment yield for
the covered commodity for the county in which the
farm is situated; or
``(ii) determined pursuant to section 1113(c).
``(8) <<NOTE: Time period.>> Treatment of new owners.--In
the case of a farm for which the owner on the date of enactment
of this subsection was not the owner for the 2019 through 2023
crop years, the Secretary shall use the planting history of the
prior owner or owners of that farm for purposes of determining--
``(A) eligibility under paragraph (3);
``(B) eligible acres under paragraph (4); and
``(C) the allocation of acres under paragraph
(5).''.
SEC. 10303. PRODUCER ELECTION.
(a) In General.--Section 1115 of the Agricultural Act of 2014 (7
U.S.C. 9015) is amended--
(1) in subsection (a), in the matter preceding paragraph
(1), by striking ``2023'' and inserting ``2031'';
(2) in subsection (c)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``crop year or'' and inserting
``crop year,''; and
(ii) by inserting ``or the 2026 crop year,''
after ``2019 crop year,'';
(B) in paragraph (1)--
(i) by striking ``crop year or'' and inserting
``crop year,''; and
(ii) by inserting ``or the 2026 crop year,''
after ``2019 crop year,''; and
[[Page 139 STAT. 90]]
(C) in paragraph (2)--
(i) in subparagraph (A), by striking ``and''
at the end;
(ii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) the same coverage for each covered commodity
on the farm for the 2027 through 2031 crop years as was
applicable for the 2025 crop year.''; and
(3) by adding at the end the following:
``(i) Higher of Price Loss Coverage Payments and Agriculture Risk
Coverage Payments.-- <<NOTE: Time period.>> For the 2025 crop year, the
Secretary shall, on a covered commodity-by-covered commodity basis, make
the higher of price loss coverage payments under section 1116 and
agriculture risk coverage county coverage payments under section 1117 to
the producers on a farm for the payment acres for each covered commodity
on the farm.''.
(b) Federal Crop Insurance Supplemental Coverage Option.--Section
508(c)(4)(C)(iv) of the Federal Crop Insurance Act (7 U.S.C.
1508(c)(4)(C)(iv)) is amended by striking ``Crops for which the producer
has elected under section 1116 of the Agricultural Act of 2014 to
receive agriculture risk coverage and acres'' and inserting ``Acres''.
SEC. 10304. PRICE LOSS COVERAGE.
Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is
amended--
(1) in subsection (a)(2), in the matter preceding
subparagraph (A), by striking ``2023'' and inserting ``2031'';
(2) in subsection (c)(1)(B)--
(A) in the subparagraph heading, by striking
``2023'' and inserting ``2031''; and
(B) in the matter preceding clause (i), by striking
``2023'' and inserting ``2031'';
(3) in subsection (d), in the matter preceding paragraph
(1), by striking ``2025'' and inserting ``2031''; and
(4) in subsection (g)--
(A) by striking ``subparagraph (F) of section
1111(19)'' and inserting ``paragraph (19)(A)(vi) of
section 1111''; and
(B) by striking ``2012 through 2016'' each place it
appears and inserting ``2017 through 2021''.
SEC. 10305. AGRICULTURE RISK COVERAGE.
Section 1117 of the Agricultural Act of 2014 (7 U.S.C. 9017) is
amended--
(1) in subsection (a), in the matter preceding paragraph
(1), by striking ``2023'' and inserting ``2031'';
(2) in subsection (c)--
(A) in paragraph (1), by inserting ``for each of the
2014 through 2024 crop years and 90 percent of the
benchmark revenue for each of the 2025 through 2031 crop
years'' before the period at the end;
(B) by striking ``2023'' each place it appears and
inserting ``2031''; and
(C) in paragraph (4)(B), in the subparagraph
heading, by striking ``2023'' and inserting ``2031'';
(3) in subsection (d)(1), by striking subparagraph (B) and
inserting the following:
[[Page 139 STAT. 91]]
``(B)(i) for each of the 2014 through 2024 crop
years, 10 percent of the benchmark revenue for the crop
year applicable under subsection (c); and
``(ii) for each of the 2025 through 2031 crop years,
12 percent of the benchmark revenue for the crop year
applicable under subsection (c).''; and
(4) in subsections (e), (g)(5), and (i)(5), by striking
``2023'' each place it appears and inserting ``2031''.
SEC. 10306. EQUITABLE TREATMENT OF CERTAIN ENTITIES.
(a) In General.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) is amended--
(1) in subsection (a)--
(A) by redesignating paragraph (5) as paragraph (6);
and
(B) by inserting after paragraph (4) the following:
``(5) <<NOTE: Definition.>> Qualified pass-through entity.--
The term `qualified pass-through entity' means--
``(A) a partnership (within the meaning of
subchapter K of chapter 1 of the Internal Revenue Code
of 1986);
``(B) an S corporation (as defined in section 1361
of that Code);
``(C) a limited liability company that does not
affirmatively elect to be treated as a corporation; and
``(D) a joint venture or general partnership.'';
(2) in subsections (b) and (c), by striking ``except a joint
venture or general partnership'' each place it appears and
inserting ``except a qualified pass-through entity''; and
(3) in subsection (d), by striking ``subtitle B of title I
of the Agricultural Act of 2014 or''.
(b) Attribution of Payments.--Section 1001(e)(3)(B)(ii) of the Food
Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended--
(1) in the clause heading, by striking ``joint ventures and
general partnerships'' and inserting ``qualified pass-through
entities'';
(2) by striking ``a joint venture or a general partnership''
and inserting ``a qualified pass-through entity'';
(3) by striking ``joint ventures and general partnerships''
and inserting ``qualified pass-through entities''; and
(4) by striking ``the joint venture or general partnership''
and inserting ``the qualified pass-through entity''.
(c) Persons Actively Engaged in Farming.--Section 1001A(b)(2) of the
Food Security Act of 1985 (7 U.S.C. 1308-1(b)(2)) is amended--
(1) subparagraphs (A) and (B), by striking ``a general
partnership, a participant in a joint venture'' each place it
appears and inserting ``a qualified pass-through entity''; and
(2) in subparagraph (C), by striking ``a general
partnership, joint venture, or similar entity'' and inserting
``a qualified pass-through entity or a similar entity''.
(d) Joint and Several Liability.--Section 1001B(d) of the Food
Security Act of 1985 (7 U.S.C. 1308-2(d)) is amended by striking
``partnerships and joint ventures'' and inserting ``qualified pass-
through entities''.
(e) Exclusion From AGI Calculation.--Section 1001D(d) of the Food
Security Act of 1985 (7 U.S.C. 1308-3a(d)) is amended
[[Page 139 STAT. 92]]
by striking ``, general partnership, or joint venture'' each place it
appears.
SEC. 10307. PAYMENT LIMITATIONS.
Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is
amended--
(1) in subsection (b)--
(A) by striking ``The'' and inserting ``Subject to
subsection (i), the''; and
(B) by striking ``$125,000'' and inserting
``$155,000'';
(2) in subsection (c)--
(A) by striking ``The'' and inserting ``Subject to
subsection (i), the''; and
(B) by striking ``$125,000'' and inserting
``$155,000''; and
(3) by adding at the end the following:
``(i) <<NOTE: Time periods.>> Adjustment.--For the 2025 crop year
and each crop year thereafter, the Secretary shall annually adjust the
amounts described in subsections (b) and (c) for inflation based on the
Consumer Price Index for All Urban Consumers published by the Bureau of
Labor Statistics of the Department of Labor.''.
SEC. 10308. ADJUSTED GROSS INCOME LIMITATION.
Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308-
3a(b)) is amended--
(1) in paragraph (1), by striking ``paragraph (3)'' and
inserting ``paragraphs (3) and (4)''; and
(2) by adding at the end the following:
``(4) Exception for certain operations.--
``(A) Definitions.--In this paragraph:
``(i) Excepted payment or benefit.--The term
`excepted payment or benefit' means--
``(I) a payment or benefit under
subtitle E of title I of the
Agricultural Act of 2014 (7 U.S.C. 9081
et seq.);
``(II) a payment or benefit under
section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7
U.S.C. 7333); and
``(III) a payment or benefit
described in paragraph (2)(C) received
on or after October 1, 2024.
``(ii) Farming, ranching, or silviculture
activities.--The <<NOTE: Determination.>> term
`farming, ranching, or silviculture activities'
includes agri-tourism, direct-to-consumer
marketing of agricultural products, the sale of
agricultural equipment owned by the person or
legal entity, and other agriculture-related
activities, as determined by the Secretary.
``(B) Exception.--In the case of an excepted payment
or benefit, the limitation established by paragraph (1)
shall not apply to a person or legal entity during a
crop, fiscal, or program year, as appropriate, if
greater than or equal to 75 percent of the average gross
income of the person or legal entity derives from
farming, ranching, or silviculture activities.''.
[[Page 139 STAT. 93]]
SEC. 10309. MARKETING LOANS.
(a) Availability of Nonrecourse Marketing Assistance Loans for Loan
Commodities.--Section 1201(b)(1) of the Agricultural Act of 2014 (7
U.S.C. 9031(b)(1)) is amended by striking ``2023'' and inserting
``2031''.
(b) Loan Rates for Nonrecourse Marketing Assistance Loans.--Section
1202 of the Agricultural Act of 2014 (7 U.S.C. 9032) is amended--
(1) in subsection (b)--
(A) in the subsection heading, by striking ``2023''
and inserting ``2025''; and
(B) in the matter preceding paragraph (1), by
striking ``2023'' and inserting ``2025'';
(2) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively;
(3) by inserting after subsection (b) the following:
``(c) 2026 Through 2031 Crop Years.--For purposes of each of the
2026 through 2031 crop years, the loan rate for a marketing assistance
loan under section 1201 for a loan commodity shall be equal to the
following:
``(1) In the case of wheat, $3.72 per bushel.
``(2) In the case of corn, $2.42 per bushel.
``(3) In the case of grain sorghum, $2.42 per bushel.
``(4) In the case of barley, $2.75 per bushel.
``(5) In the case of oats, $2.20 per bushel.
``(6) In the case of upland cotton, $0.55 per pound.
``(7) In the case of extra long staple cotton, $1.00 per
pound.
``(8) In the case of long grain rice, $7.70 per
hundredweight.
``(9) In the case of medium grain rice, $7.70 per
hundredweight.
``(10) In the case of soybeans, $6.82 per bushel.
``(11) In the case of other oilseeds, $11.10 per
hundredweight for each of the following kinds of oilseeds:
``(A) Sunflower seed.
``(B) Rapeseed.
``(C) Canola.
``(D) Safflower.
``(E) Flaxseed.
``(F) Mustard seed.
``(G) Crambe.
``(H) Sesame seed.
``(I) Other oilseeds designated by the Secretary.
``(12) In the case of dry peas, $6.87 per hundredweight.
``(13) In the case of lentils, $14.30 per hundredweight.
``(14) In the case of small chickpeas, $11.00 per
hundredweight.
``(15) In the case of large chickpeas, $15.40 per
hundredweight.
``(16) In the case of graded wool, $1.60 per pound.
``(17) In the case of nongraded wool, $0.55 per pound.
``(18) In the case of mohair, $5.00 per pound.
``(19) In the case of honey, $1.50 per pound.
``(20) In the case of peanuts, $390 per ton.'';
(4) in subsection (d) (as so redesignated), by striking
``(a)(11) and (b)(11)'' and inserting ``(a)(11), (b)(11), and
(c)(11)''; and
[[Page 139 STAT. 94]]
(5) in subsection (e) (as so redesignated), in paragraph
(1), by striking ``$0.25'' and inserting ``$0.30''.
(c) Payment of Cotton Storage Costs.--Section 1204(g) of the
Agricultural Act of 2014 (7 U.S.C. 9034(g)) is amended--
(1) by striking ``Effective'' and inserting the following:
``(1) Crop years 2014 through 2025.--Effective'';
(2) in paragraph (1) (as so designated), by striking
``2023'' and inserting ``2025''; and
(3) by adding at the end the following:
``(2) <<NOTE: Time periods.>> Payment of cotton storage
costs.--Effective for each of the 2026 through 2031 crop years,
the Secretary shall make cotton storage payments for upland
cotton and extra long staple cotton available in the same manner
as the Secretary provided storage payments for the 2006 crop of
upland cotton, except that the payment rate shall be equal to
the lesser of--
``(A) the submitted storage charge for the current
marketing year; and
``(B) in the case of storage in--
``(i) <<NOTE: California. Arizona.>> California or
Arizona, a payment rate of $4.90; and
``(ii) any other State, a payment rate of
$3.00.''.
(d) Loan Deficiency Payments.--
(1) Continuation.--Section 1205(a)(2)(B) of the Agricultural
Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is amended by striking
``2023'' and inserting ``2031''.
(2) Payments in lieu of ldps.--Section 1206 of the
Agricultural Act of 2014 (7 U.S.C. 9036) is amended, in
subsections (a) and (d), by striking ``2023'' each place it
appears and inserting ``2031''.
(e) Special Competitive Provisions for Extra Long Staple Cotton.--
Section 1208(a) of the Agricultural Act of 2014 (7 U.S.C. 9038(a)) is
amended, in the matter preceding paragraph (1), by striking ``2026'' and
inserting ``2032''.
(f) Availability of Recourse Loans.--Section 1209 of the
Agricultural Act of 2014 (7 U.S.C. 9039) is amended, in subsections
(a)(2), (b), and (c), by striking ``2023'' each place it appears and
inserting ``2031''.
SEC. 10310. REPAYMENT OF MARKETING LOANS.
Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is
amended--
(1) in subsection (b)--
(A) by redesignating paragraph (1) as subparagraph
(A) and indenting appropriately;
(B) in the matter preceding subparagraph (A) (as so
redesignated), by striking ``The Secretary'' and
inserting the following:
``(1) In general.--The Secretary''; and
(C) <<NOTE: Determinations.>> by striking paragraph
(2) and inserting the following:
``(B)(i) in the case of long grain rice and medium
grain rice, the prevailing world market price for the
commodity, as determined and adjusted by the Secretary
in accordance with this section; or
[[Page 139 STAT. 95]]
``(ii) in the case of upland cotton, the prevailing
world market price for the commodity, as determined and
adjusted by the Secretary in accordance with this
section.
``(2) <<NOTE: Time period.>> Refund for upland cotton.--In
the case of a repayment for a marketing assistance loan for
upland cotton at a rate described in paragraph (1)(B)(ii), the
Secretary shall provide to the producer a refund (if any) in an
amount equal to the difference between the lowest prevailing
world market price, as determined and adjusted by the Secretary
in accordance with this section, during the 30-day period
following the date on which the producer repays the marketing
assistance loan and the repayment rate.'';
(2) in subsection (c)--
(A) by striking the period at the end and inserting
``; and'';
(B) by striking ``at the loan rate'' and inserting
the following: "at a rate that is the lesser of-- ``
``(1) the loan rate''; and
(C) by adding at the end the following:
``(2) the prevailing world market price for the commodity,
as determined and adjusted by the Secretary in accordance with
this section.'';
(3) in subsection (d)--
(A) in paragraph (1), by striking ``and medium grain
rice'' and inserting ``medium grain rice, and extra long
staple cotton'';
(B) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indenting
appropriately;
(C) in the matter preceding subparagraph (A) (as so
redesignated), by striking ``For purposes'' and
inserting the following:
``(1) In general.--For purposes''; and
(D) by adding at the end the following:
``(2) Upland cotton.--In the case of upland cotton, for any
period when price quotations for Middling (M) 1\3/32\-inch
cotton are available, the formula under paragraph (1)(A) shall
be based on the average of the 3 lowest-priced growths that are
quoted.''; and
(4) in subsection (e)--
(A) in the subsection heading, by inserting ``Extra
Long Staple Cotton,'' after ``Upland Cotton,'';
(B) in paragraph (2)--
(i) in the paragraph heading, by inserting
``Upland'' before ``Cotton''; and
(ii) in subparagraph (B), in the matter
preceding clause (i), by striking ``2024'' and
inserting ``2032'';
(C) by redesignating paragraph (3) as paragraph (4);
and
(D) by inserting after paragraph (2) the following:
``(3) <<NOTE: Determinations.>> Extra long staple cotton.--
The prevailing world market price for extra long staple cotton
determined under subsection (d)--
``(A) shall be adjusted to United States quality and
location, with the adjustment to include the average
costs to market the commodity, including average
transportation costs, as determined by the Secretary;
and
[[Page 139 STAT. 96]]
``(B) <<NOTE: Time period. Expiration date.>> may be
further adjusted, during the period beginning on the
date of enactment of the Act entitled `An Act to provide
for reconciliation pursuant to title II of H. Con. Res.
14' (119th Congress) and ending on July 31, 2032, if the
Secretary determines the adjustment is necessary--
``(i) to minimize potential loan forfeitures;
``(ii) to minimize the accumulation of stocks
of extra long staple cotton by the Federal
Government;
``(iii) to ensure that extra long staple
cotton produced in the United States can be
marketed freely and competitively; and
``(iv) to ensure an appropriate transition
between current-crop and forward-crop price
quotations, except that the Secretary may use
forward-crop price quotations prior to July 31 of
a marketing year only if--
``(I) there are insufficient
current-crop price quotations; and
``(II) the forward-crop price
quotation is the lowest such quotation
available.''.
SEC. 10311. ECONOMIC ADJUSTMENT ASSISTANCE FOR TEXTILE MILLS.
Section 1207(c) of the Agricultural Act of 2014 (7 U.S.C. 9037(c))
is amended by striking paragraph (2) and inserting the following:
``(2) Value of assistance.--The value of the assistance
provided under paragraph (1) shall be--
``(A) <<NOTE: Time period.>> for the period
beginning on August 1, 2013, and ending on July 31,
2025, 3 cents per pound; and
``(B) <<NOTE: Effective date.>> beginning on August
1, 2025, 5 cents per pound.''.
SEC. 10312. SUGAR PROGRAM UPDATES.
(a) Loan Rate Modifications.--Section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended--
(1) in subsection (a)--
(A) in paragraph (4), by striking ``and'' at the
end;
(B) in paragraph (5), by striking ``2023 crop
years.'' and inserting ``2024 crop years; and''; and
(C) by adding at the end the following:
``(6) 24.00 cents per pound for raw cane sugar for each of
the 2025 through 2031 crop years.'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``and'' at the
end;
(B) in paragraph (2), by striking ``2023 crop
years.'' and inserting ``2024 crop years; and''; and
(C) by adding at the end the following:
``(3) a rate that is equal to 136.55 percent of the loan
rate per pound of raw cane sugar under subsection (a)(6) for
each of the 2025 through 2031 crop years.''; and
(3) in subsection (i), by striking ``2023'' and inserting
``2031''.
(b) Adjustments to Commodity Credit Corporation Storage Rates.--
Section 167 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7287) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) <<NOTE: Time period.>> In General.--For the 2025 crop year and
each subsequent crop year, the Commodity Credit Corporation shall
establish rates
[[Page 139 STAT. 97]]
for the storage of forfeited sugar in an amount that is not less than--
``(1) in the case of refined sugar, 34 cents per
hundredweight per month; and
``(2) in the case of raw cane sugar, 27 cents per
hundredweight per month.''; and
(2) in subsection (b)--
(A) in the subsection heading, by striking
``Subsequent'' and inserting ``Prior''; and
(B) by striking ``and subsequent'' and inserting
``through 2024''.
(c) Modernizing Beet Sugar Allotments.--
(1) Sugar estimates.--Section 359b(a)(1) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by
striking ``2023'' and inserting ``2031''.
(2) Allocation to processors.--Section 359c(g)(2) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc(g)(2)) is
amended--
(A) by striking ``In the case'' and inserting the
following:
``(A) In general.--Except as provided in
subparagraph (B), in the case''; and
(B) by adding at the end the following:
``(B) Exception.--If the Secretary makes an upward
adjustment under paragraph (1)(A), in adjusting
allocations among beet sugar processors, the Secretary
shall give priority to beet sugar processors with
available sugar.''.
(3) Timing of reassignment.--Section 359e(b)(2) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)(2)) is
amended--
(A) by redesignating subparagraphs (A) through (C)
as clauses (i) through (iii), respectively, and
indenting appropriately;
(B) in the matter preceding clause (i) (as so
redesignated), by striking ``If the Secretary'' and
inserting the following:
``(A) In general.--If the Secretary''; and
(C) by adding at the end the following:
``(B) Timing.--In carrying out subparagraph (A), the
Secretary shall--
``(i) <<NOTE: Determination.>> make an initial
determination based on the World Agricultural
Supply and Demand Estimates approved by the World
Agricultural Outlook Board for January that shall
be applicable to the crop year for which
allotments are required; and
``(ii) <<NOTE: Deadline.>> provide for an
initial reassignment under subparagraph (A)(i) not
later than 30 days after the date on which the
World Agricultural Supply and Demand Estimates
described in clause (i) is released.''.
(d) Reallocations of Tariff-rate Quota Shortfall.--Section 359k of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) is amended by
adding at the end the following:
``(c) Reallocation.--
``(1) Initial reallocation.--Subject to paragraph (3),
following the establishment of the tariff-rate quotas under
subsection (a) for a quota year, the Secretary shall--
[[Page 139 STAT. 98]]
``(A) <<NOTE: Determination.>> determine which
countries do not intend to fulfill their allocation for
the quota year; and
``(B) reallocate any forecasted shortfall in the
fulfillment of the tariff-rate quotas as soon as
practicable.
``(2) <<NOTE: Deadline.>> Subsequent reallocation.--Subject
to paragraph (3), not later than March 1 of a quota year, the
Secretary shall reallocate any additional forecasted shortfall
in the fulfillment of the tariff-rate quotas for raw cane sugar
established under subsection (a)(1) for that quota year.
``(3) Cessation of effectiveness.--Paragraphs (1) and (2)
shall cease to be in effect if--
``(A) the Agreement Suspending the Countervailing
Duty Investigation on Sugar from Mexico, signed December
19, 2014, is terminated; and
``(B) no countervailing duty order under subtitle A
of title VII of the Tariff Act of 1930 (19 U.S.C. 1671
et seq.) is in effect with respect to sugar from Mexico.
``(d) Refined Sugar.--
``(1) Definition of domestic sugar industry.--In this
subsection, the term `domestic sugar industry' means domestic--
``(A) sugar beet producers and processors;
``(B) producers and processors of sugar cane; and
``(C) refiners of raw cane sugar.
``(2) Study required.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than 180 days after the date of enactment of this
subsection, the Secretary shall conduct a study on
whether the establishment of additional terms and
conditions with respect to refined sugar imports is
necessary and appropriate.
``(B) Elements.--In conducting the study under
subparagraph (A), the Secretary shall examine the
following:
``(i) The need for--
``(I) defining `refined sugar' as
having a minimum polarization of 99.8
degrees or higher;
``(II) establishing a standard for
color- or reflectance-based units for
refined sugar such as those utilized by
the International Commission of Uniform
Methods of Sugar Analysis;
``(III) prescribing specifications
for packaging type for refined sugar;
``(IV) prescribing specifications
for transportation modes for refined
sugar;
``(V) requiring evidence that sugar
imported as refined sugar will not
undergo further refining in the United
States;
``(VI) prescribing appropriate terms
and conditions to avoid unlawful sugar
imports; and
``(VII) establishing other
definitions, terms and conditions, or
other requirements.
``(ii) The potential impact of modifications
described in each of subclauses (I) through (VII)
of clause (i) on the domestic sugar industry.
``(iii) Whether, based on the needs described
in clause (i) and the impact described in clause
(ii), the
[[Page 139 STAT. 99]]
establishment of additional terms and conditions
is appropriate.
``(C) Consultation.--In conducting the study under
subparagraph (A), the Secretary shall consult with
representatives of the domestic sugar industry and users
of refined sugar.
``(D) Report.--Not later than 1 year after the date
of enactment of this subsection, the Secretary shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that
describes the findings of the study conducted under
subparagraph (A).
``(3) Establishment of additional terms and conditions
permitted.--
``(A) <<NOTE: Notice. Regulations.>> In general.--
Based on the findings in the report submitted under
paragraph (2)(D), and after providing notice to the
Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and
Forestry of the Senate, the Secretary may issue
regulations in accordance with subparagraph (B) to
establish additional terms and conditions with respect
to refined sugar imports that are necessary and
appropriate.
``(B) Promulgation of regulations.--The Secretary
may issue regulations under subparagraph (A) if the
regulations--
``(i) do not have an adverse impact on the
domestic sugar industry; and
``(ii) are consistent with the requirements of
this part, section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C.
7272), and obligations under international trade
agreements that have been approved by Congress.''.
(e) Clarification of Tariff-rate Quota Adjustments.--Section
359k(b)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359kk(b)(1)) is amended, in the matter preceding subparagraph (A), by
striking ``if there is an'' and inserting ``for the sole purpose of
responding directly to an''.
(f) Period of Effectiveness.--Section 359l(a) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking
``2023'' and inserting ``2031''.
SEC. 10313. DAIRY POLICY UPDATES.
(a) Dairy Margin Coverage Production History.--
(1) Definition.--Section 1401(8) of the Agricultural Act of
2014 (7 U.S.C. 9051(8)) is amended by striking ``when the
participating dairy operation first registers to participate in
dairy margin coverage''.
(2) Production history of participating dairy operations.--
Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is
amended by striking subsections (a) and (b) and inserting the
following:
``(a) <<NOTE: Time periods.>> Production History.--Except as
provided in subsection (b), the production history of a dairy operation
for dairy margin coverage is equal to the highest annual milk marketings
of the participating dairy operation during any 1 of the 2021, 2022, or
2023 calendar years.
[[Page 139 STAT. 100]]
``(b) Election by New Dairy Operations.--In the case of a
participating dairy operation that has been in operation for less than a
year, the participating dairy operation shall elect 1 of the following
methods for the Secretary to determine the production history of the
participating dairy operation:
``(1) The volume of the actual milk marketings for the
months the participating dairy operation has been in operation
extrapolated to a yearly amount.
``(2) <<NOTE: Estimate.>> An estimate of the actual milk
marketings of the participating dairy operation based on the
herd size of the participating dairy operation relative to the
national rolling herd average data published by the
Secretary.''.
(b) Dairy Margin Coverage Payments.--Section 1406(a)(1)(C) of the
Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(C)) is amended by striking
``5,000,000'' each place it appears and inserting ``6,000,000''.
(c) Premiums for Dairy Margins.--
(1) Tier i.--Section 1407(b) of the Agricultural Act of 2014
(7 U.S.C. 9057(b)) is amended--
(A) in the subsection heading, by striking
``5,000,000'' and inserting ``6,000,000''; and
(B) in paragraph (1), by striking ``5,000,000'' and
inserting ``6,000,000''.
(2) Tier ii.--Section 1407(c) of the Agricultural Act of
2014 (7 U.S.C. 9057(c)) is amended--
(A) in the subsection heading, by striking
``5,000,000'' and inserting ``6,000,000''; and
(B) in paragraph (1), by striking ``5,000,000'' and
inserting ``6,000,000''.
(3) Premium discounts.--Section 1407(g) of the Agricultural
Act of 2014 (7 U.S.C. 9057(g)) is amended--
(A) in paragraph (1)--
(i) by striking ``2019 through 2023'' and
inserting ``2026 through 2031''; and
(ii) by striking ``January 2019'' and
inserting ``January 2026''; and
(B) in paragraph (2), by striking ``2023'' each
place it appears and inserting ``2031''.
(d) Duration.--Section 1409 of the Agricultural Act of 2014 (7
U.S.C. 9059) is amended by striking ``2025'' and inserting ``2031''.
SEC. 10314. IMPLEMENTATION.
Section 1614(c) of the Agricultural Act of 2014 (7 U.S.C. 9097(c))
is amended by adding at the end the following:
``(5) Further funding.--The Secretary shall make available
to carry out subtitle C of title I of the Act entitled `An Act
to provide for reconciliation pursuant to title II of H. Con.
Res. 14' (119th Congress) and the amendments made by that
subtitle $50,000,000, to remain available until expended, of
which--
``(A) not less than $5,000,000 shall be used to
carry out paragraphs (3) and (4) of subsection (b);
``(B) $3,000,000 shall be used for activities
described in paragraph (3)(A);
``(C) $3,000,000 shall be used for activities
described in paragraph (3)(B);
``(D) $9,000,000 shall be used--
[[Page 139 STAT. 101]]
``(i) <<NOTE: Surveys.>> to carry out
mandatory surveys of dairy production cost and
product yield information to be reported by
manufacturers required to report under section 273
of the Agricultural Marketing Act of 1946 (7
U.S.C. 1637b), for all products processed in the
same facility or facilities; and
``(ii) <<NOTE: Publication. Time period.>> to
publish the results of such surveys biennially;
and
``(E) <<NOTE: Study.>> $1,000,000 shall be used to
conduct the study under subsection (d) of section 359k
of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359kk).''.
Subtitle D-- <<NOTE: Determinations.>> Disaster Assistance Programs
SEC. 10401. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.
(a) Livestock Indemnity Payments.--Section 1501(b) of the
Agricultural Act of 2014 (7 U.S.C. 9081(b)) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Payment rates.--
``(A) Losses due to predation.--Indemnity payments
to an eligible producer on a farm under paragraph (1)(A)
shall be made at a rate of 100 percent of the market
value of the affected livestock on the applicable date,
as determined by the Secretary.
``(B) Losses due to adverse weather or disease.--
Indemnity payments to an eligible producer on a farm
under subparagraph (B) or (C) of paragraph (1) shall be
made at a rate of 75 percent of the market value of the
affected livestock on the applicable date, as determined
by the Secretary.
``(C) Determination of market value.--In determining
the market value described in subparagraphs (A) and (B),
the Secretary may consider the ability of eligible
producers to document regional price premiums for
affected livestock that exceed the national average
market price for those livestock.
``(D) Applicable date defined.--In this paragraph,
the term `applicable date' means, with respect to
livestock, as applicable--
``(i) the day before the date of death of the
livestock; or
``(ii) the day before the date of the event
that caused the harm to the livestock that
resulted in a reduced sale price.''; and
(2) by adding at the end the following:
``(5) Additional payment for unborn livestock.--
``(A) <<NOTE: Effective date.>> In general.--In the
case of unborn livestock death losses incurred on or
after January 1, 2024, the Secretary shall make an
additional payment to eligible producers on farms that
have incurred such losses in excess of the normal
mortality due to a condition specified in paragraph (1).
``(B) Payment rate.--Additional payments under
subparagraph (A) shall be made at a rate--
``(i) determined by the Secretary; and
[[Page 139 STAT. 102]]
``(ii) less than or equal to 85 percent of the
payment rate established with respect to the
lowest weight class of the livestock, as
determined by the Secretary, acting through the
Administrator of the Farm Service Agency.
``(C) Payment amount.--The amount of a payment to an
eligible producer that has incurred unborn livestock
death losses shall be equal to the payment rate
determined under subparagraph (B) multiplied, in the
case of livestock described in--
``(i) subparagraph (A), (B), or (F) of
subsection (a)(4), by 1;
``(ii) subparagraph (D) of such subsection, by
2;
``(iii) subparagraph (E) of such subsection,
by 12; and
``(iv) subparagraph (G) of such subsection, by
the average number of birthed animals (for one
gestation cycle) for the species of each such
livestock, as determined by the Secretary.
``(D) Unborn livestock death losses defined.--In
this paragraph, the term `unborn livestock death losses'
means losses of any livestock described in subparagraph
(A), (B), (D), (E), (F), or (G) of subsection (a)(4)
that was gestating on the date of the death of the
livestock.''.
(b) <<NOTE: Time periods. Payments.>> Livestock Forage Disaster
Program.--Section 1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014
(7 U.S.C. 9081(c)(3)(D)(ii)(I)) is amended--
(1) by striking ``1 monthly payment'' and inserting ``2
monthly payments''; and
(2) by striking ``county for at least 8 consecutive'' and
inserting the following: "county for not less than-- ``
``(aa) 4 consecutive weeks
during the normal grazing period
for the county, as determined by
the Secretary, shall be eligible
to receive assistance under this
paragraph in an amount equal to
1 monthly payment using the
monthly payment rate determined
under subparagraph (B); or
``(bb) 7 of the previous 8
consecutive''.
(c) Emergency Assistance for Livestock, Honey Bees, and Farm-raised
Fish.--
(1) In general.--Section 1501(d) of the Agricultural Act of
2014 (7 U.S.C. 9081(d)) is amended by adding at the end the
following:
``(5) Assistance for losses due to bird depredation.--
``(A) Definition of farm-raised fish.--In this
paragraph, the term `farm-raised fish' means fish
propagated and reared in a controlled fresh water
environment.
``(B) Payments.--Eligible producers of farm-raised
fish, including fish grown as food for human
consumption, shall be eligible to receive payments under
this subsection to aid in the reduction of losses due to
piscivorous birds.
``(C) Payment rate.--
``(i) In general.--The payment rate for
payments under subparagraph (B) shall be
determined by the Secretary, taking into account--
``(I) costs associated with the
deterrence of piscivorous birds;
[[Page 139 STAT. 103]]
``(II) the value of lost fish and
revenue due to bird depredation; and
``(III) costs associated with
disease loss from bird depredation.
``(ii) Minimum rate.--The payment rate for
payments under subparagraph (B) shall be not less
than $600 per acre of farm-raised fish.
``(D) Payment amount.--The amount of a payment under
subparagraph (B) shall be the product obtained by
multiplying--
``(i) the applicable payment rate under
subparagraph (C); and
``(ii) 85 percent of the total number of acres
of farm-raised fish farms that the eligible
producer has in production for the calendar
year.''.
(2) <<NOTE: 7 USC 9081 note.>> Emergency assistance for
honeybees.--In determining honeybee colony losses eligible for
assistance under section 1501(d) of the Agricultural Act of 2014
(7 U.S.C. 9081(d)), the Secretary shall utilize a normal
mortality rate of 15 percent.
(d) Tree Assistance Program.--Section 1501(e) of the Agricultural
Act of 2014 (7 U.S.C. 9081(e)) is amended--
(1) in paragraph (2)(B), by striking ``15 percent (adjusted
for normal mortality)'' and inserting ``normal mortality''; and
(2) in paragraph (3)--
(A) in subparagraph (A)(i), by striking ``15 percent
mortality (adjusted for normal mortality)'' and
inserting ``normal mortality''; and
(B) in subparagraph (B)--
(i) by striking ``50'' and inserting ``65'';
and
(ii) by striking ``15 percent damage or
mortality (adjusted for normal tree damage and
mortality)'' and inserting ``normal tree damage or
mortality''.
Subtitle E--Crop Insurance
SEC. 10501. BEGINNING FARMER AND RANCHER BENEFIT.
(a) Definitions.--
(1) In general.--Section 502(b)(3) of the Federal Crop
Insurance Act (7 U.S.C. 1502(b)(3)) is amended by striking ``5''
and inserting ``10''.
(2) Conforming amendment.--Section 522(c)(7) of the Federal
Crop Insurance Act (7 U.S.C. 1522(c)(7)) is amended by striking
subparagraph (F).
(b) Increase in Assistance.--Section 508(e) of the Federal Crop
Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the
following:
``(9) Additional support.--
``(A) In general.--In addition to any other
provision of this subsection (except paragraph (2)(A))
regarding payment of a portion of premiums, a beginning
farmer or rancher shall receive additional premium
assistance that is the number of percentage points
specified in subparagraph (B) greater than the premium
assistance that would otherwise be available for the
applicable policy, plan of
[[Page 139 STAT. 104]]
insurance, and coverage level selected by the beginning
farmer or rancher.
``(B) <<NOTE: Time periods.>> Percentage points
adjustments.--The percentage points referred to in
subparagraph (A) are the following:
``(i) For each of the first and second
reinsurance years that a beginning farmer or
rancher participates as a beginning farmer or
rancher in the applicable policy or plan of
insurance, 5 percentage points.
``(ii) For the third reinsurance year that a
beginning farmer or rancher participates as a
beginning farmer or rancher in the applicable
policy or plan of insurance, 3 percentage points.
``(iii) For the fourth reinsurance year that a
beginning farmer or rancher participates as a
beginning farmer or rancher in the applicable
policy or plan of insurance, 1 percentage
point.''.
SEC. 10502. AREA-BASED CROP INSURANCE COVERAGE AND AFFORDABILITY.
(a) Coverage Level.--Section 508(c)(4) of the Federal Crop Insurance
Act (7 U.S.C. 1508(c)(4)) is amended--
(1) in subparagraph (A), by striking clause (ii) and
inserting the following:
``(ii) may be purchased at any level not to
exceed--
``(I) in the case of the individual
yield or revenue coverage, 85 percent;
``(II) in the case of individual
yield or revenue coverage aggregated
across multiple commodities, 90 percent;
and
``(III) in the case of area yield or
revenue coverage (as determined by the
Corporation), 95 percent.''; and
(2) in subparagraph (C)--
(A) in clause (ii), by striking ``14'' and inserting
``10''; and
(B) in clause (iii)(I), by striking ``86'' and
inserting ``90''.
(b) Premium Subsidy.--Section 508(e)(2)(H)(i) of the Federal Crop
Insurance Act (7 U.S.C. 1508(e)(2)(H)(i)) is amended by striking ``65''
and inserting ``80''.
SEC. 10503. <<NOTE: Effective dates.>> ADMINISTRATIVE AND
OPERATING EXPENSE ADJUSTMENTS.
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k))
is amended by adding at the end the following:
``(10) Additional expenses.--
``(A) <<NOTE: Payment.>> In general.--Beginning with
the 2026 reinsurance year, and for each reinsurance year
thereafter, in addition to the terms and conditions of
the Standard Reinsurance Agreement, to cover additional
expenses for loss adjustment procedures, the Corporation
shall pay an additional administrative and operating
expense subsidy to approved insurance providers for
eligible contracts.
``(B) <<NOTE: Contracts.>> Payment amount.--In the
case of an eligible contract, the payment to an approved
insurance provider required under subparagraph (A) shall
be the amount equal to 6 percent of the net book
premium.
[[Page 139 STAT. 105]]
``(C) Definitions.--In this paragraph:
``(i) Eligible contract.--The term `eligible
contract'--
``(I) means a crop insurance
contract entered into by an approved
insurance provider in an eligible State;
and
``(II) does not include a contract
for--
``(aa) catastrophic risk
protection under subsection (b);
``(bb) an area-based plan of
insurance or similar plan of
insurance, as determined by the
Corporation; or
``(cc) a policy under which
an approved insurance provider
does not incur loss adjustment
expenses, as determined by the
Corporation.
``(ii) Eligible state.--The term `eligible
State' means a State in which, with respect to an
insurance year, the loss ratio for eligible
contracts is greater than 120 percent of the total
net book premium written by all approved insurance
providers.
``(11) Specialty crops.--
``(A) Minimum reimbursement.--Beginning with the
2026 reinsurance year, and for each reinsurance year
thereafter, the rate of reimbursement to approved
insurance providers and agents for administrative and
operating expenses with respect to crop insurance
contracts covering agricultural commodities described in
section 101 of the Specialty Crops Competitiveness Act
of 2004 (7 U.S.C. 1621 note; Public Law 108-465) shall
be equal to or greater than the percentage that is the
greater of the following:
``(i) 17 percent of the premium used to define
loss ratio.
``(ii) The percent of the premium used to
define loss ratio that is otherwise applicable for
the reinsurance year under the terms of the
Standard Reinsurance Agreement in effect for the
reinsurance year.
``(B) Other contracts.--In carrying out subparagraph
(A), the Corporation shall not reduce, with respect to
any reinsurance year, the amount or the rate of
reimbursement to approved insurance providers and agents
under the Standard Reinsurance Agreement described in
clause (ii) of such subparagraph for administrative and
operating expenses with respect to contracts covering
agricultural commodities that are not subject to such
subparagraph.
``(C) Administration.--The requirements of this
paragraph and the adjustments made pursuant to this
paragraph shall not be considered a renegotiation under
paragraph (8)(A).
``(12) A&O inflation adjustment.--
``(A) In general.--
<<NOTE: Reimbursements.>> Subject to subparagraph (B),
beginning with the 2026 reinsurance year, and for each
reinsurance year thereafter, the Corporation shall
increase the total administrative and operating expense
reimbursements otherwise required under the Standard
Reinsurance Agreement in effect for the reinsurance year
in order to account for inflation, in a manner
consistent with the increases
[[Page 139 STAT. 106]]
provided with respect to the 2011 through 2015
reinsurance years under the enclosure included in Risk
Management Agency Bulletin numbered MGR-10-007 and dated
June 30, 2010.
``(B) Special rule for 2026 reinsurance year.--The
increase under subparagraph (A) for the 2026 reinsurance
year shall not exceed the percentage change for the
preceding reinsurance year included in the Consumer
Price Index for All Urban Consumers published by the
Bureau of Labor Statistics of the Department of Labor.
``(C) Administration.--An increase under
subparagraph (A)--
``(i) <<NOTE: Applicability. Contracts. Time
period.>> shall apply with respect to all
contracts covering agricultural commodities that
were subject to an increase during the period of
the 2011 through 2015 reinsurance years under the
enclosure referred to in that subparagraph; and
``(ii) shall not be considered a renegotiation
under paragraph (8)(A).''.
SEC. 10504. PREMIUM SUPPORT.
Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)(2)) is amended--
(1) in subparagraph (C)(i), by striking ``64'' and inserting
``69'';
(2) in subparagraph (D)(i), by striking ``59'' and inserting
``64'';
(3) in subparagraph (E)(i), by striking ``55'' and inserting
``60'';
(4) in subparagraph (F)(i), by striking ``48'' and inserting
``51''; and
(5) in subparagraph (G)(i), by striking ``38'' and inserting
``41''.
SEC. 10505. PROGRAM COMPLIANCE AND INTEGRITY.
Section 515(l)(2) of the Federal Crop Insurance Act (7 U.S.C.
1515(l)(2)) is amended by striking ``than'' and all that follows through
the period at the end and inserting the following: ``than--
``(A) $4,000,000 for each of fiscal years 2009
through 2025; and
``(B) $6,000,000 for fiscal year 2026 and each
subsequent fiscal year.''.
SEC. 10506. REVIEWS, COMPLIANCE, AND INTEGRITY.
Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (7 U.S.C.
1516(b)(2)(C)(i)) is amended, in the matter preceding subclause (I), by
striking ``for each fiscal year'' and inserting ``for each of fiscal
years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each
fiscal year thereafter''.
SEC. 10507. POULTRY INSURANCE PILOT PROGRAM.
Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is
amended by adding at the end the following:
``(j) Poultry Insurance Pilot Program.--
``(1) <<NOTE: Determination.>> In general.--Notwithstanding
subsection (a)(2), the Corporation shall establish a pilot
program under which contract poultry growers, including growers
of broilers and laying hens, may elect to receive index-based
insurance from extreme
[[Page 139 STAT. 107]]
weather-related risk resulting in increased utility costs
(including costs of natural gas, propane, electricity, water,
and other appropriate costs, as determined by the Corporation)
associated with poultry production.
``(2) Stakeholder engagement.--The Corporation shall engage
with poultry industry stakeholders in establishing the pilot
program under paragraph (1).
``(3) <<NOTE: Evaluation.>> Location.--The pilot program
established under paragraph (1) shall be conducted in a
sufficient number of counties to provide a comprehensive
evaluation of the feasibility, effectiveness, and demand among
producers in the top poultry producing States, as determined by
the Corporation.
``(4) Approval of policy or plan.--Notwithstanding section
508(l), the Board shall approve a policy or plan of insurance
based on the pilot program under paragraph (1)--
``(A) in accordance with section 508(h); and
``(B) <<NOTE: Deadline.>> not later than 2 years
after the date of enactment of this subsection.''.
Subtitle F-- <<NOTE: Time periods.>> Additional Investments in Rural
America
SEC. 10601. CONSERVATION.
(a) In General.--Section 1241(a) of the Food Security Act of 1985
(16 U.S.C. 3841(a)) is amended--
(1) in paragraph (2), by striking subparagraphs (A) through
(F) and inserting the following:
``(A) $625,000,000 for fiscal year 2026;
``(B) $650,000,000 for fiscal year 2027;
``(C) $675,000,000 for fiscal year 2028;
``(D) $700,000,000 for fiscal year 2029;
``(E) $700,000,000 for fiscal year 2030; and
``(F) $700,000,000 for fiscal year 2031.''; and
(2) in paragraph (3)--
(A) in subparagraph (A), by striking clauses (i)
through (v) and inserting the following:
``(i) $2,655,000,000 for fiscal year 2026;
``(ii) $2,855,000,000 for fiscal year 2027;
``(iii) $3,255,000,000 for fiscal year 2028;
``(iv) $3,255,000,000 for fiscal year 2029;
``(v) $3,255,000,000 for fiscal year 2030; and
``(vi) $3,255,000,000 for fiscal year 2031;
and''; and
(B) in subparagraph (B), by striking clauses (i)
through (v) and inserting the following:
``(i) $1,300,000,000 for fiscal year 2026;
``(ii) $1,325,000,000 for fiscal year 2027;
``(iii) $1,350,000,000 for fiscal year 2028;
``(iv) $1,375,000,000 for fiscal year 2029;
``(v) $1,375,000,000 for fiscal year 2030; and
``(vi) $1,375,000,000 for fiscal year 2031.''.
(b) Regional Conservation Partnership Program.--Section 1271D of the
Food Security Act of 1985 (16 U.S.C. 3871d) is amended by striking
subsection (a) and inserting the following:
``(a) Availability of Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out the program, to the
maximum extent practicable--
[[Page 139 STAT. 108]]
``(1) $425,000,000 for fiscal year 2026;
``(2) $450,000,000 for fiscal year 2027;
``(3) $450,000,000 for fiscal year 2028;
``(4) $450,000,000 for fiscal year 2029;
``(5) $450,000,000 for fiscal year 2030; and
``(6) $450,000,000 for fiscal year 2031.''.
(c) Grassroots Source Water Protection Program.--Section 1240O(b) of
the Food Security Act of 1985 (16 U.S.C. 3839bb-2(b)) is amended--
(1) in paragraph (1), by striking ``2023'' and inserting
``2031''; and
(2) in paragraph (3)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) <<NOTE: Effective date.>> $1,000,000 beginning
in fiscal year 2026, to remain available until
expended.''.
(d) Voluntary Public Access and Habitat Incentive Program.--Section
1240R(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb-5(f)(1))
is amended--
(1) by striking ``2023, and'' and inserting ``2023,''; and
(2) by inserting ``, and $70,000,000 for the period of
fiscal years 2025 through 2031'' before the period at the end.
(e) Watershed Protection and Flood Prevention.--Section 15 of the
Watershed Protection and Flood Prevention Act (16 U.S.C. 1012a) is
amended by striking ``$50,000,000 for fiscal year 2019 and each fiscal
year thereafter'' and inserting ``$150,000,000 for fiscal year 2026 and
each fiscal year thereafter, to remain available until expended''.
(f) Feral Swine Eradication and Control Pilot Program.--Section
2408(g)(1) of the Agriculture Improvement Act of 2018 (7 U.S.C. 8351
note; Public Law 115-334) is amended--
(1) by striking ``2023 and'' and inserting ``2023,''; and
(2) by inserting ``, and $105,000,000 for the period of
fiscal years 2025 through 2031'' before the period at the end.
(g) Rescission.--The unobligated balances of amounts appropriated by
section 21001(a) of Public Law 117-169 (136 Stat. 2015) are rescinded.
SEC. 10602. <<NOTE: 7 USC 5623a.>> SUPPLEMENTAL AGRICULTURAL TRADE
PROMOTION PROGRAM.
(a) In General.--The Secretary of Agriculture shall carry out a
program to encourage the accessibility, development, maintenance, and
expansion of commercial export markets for United States agricultural
commodities.
(b) Funding.--Of the funds of the Commodity Credit Corporation, the
Secretary of Agriculture shall make available to carry out this section
$285,000,000 for fiscal year 2027 and each fiscal year thereafter.
SEC. 10603. NUTRITION.
Section 203D(d)(5) of the Emergency Food Assistance Act of 1983 (7
U.S.C. 7507(d)(5)) is amended by striking ``2024'' and inserting
``2031''.
[[Page 139 STAT. 109]]
SEC. 10604. RESEARCH.
(a) Urban, Indoor, and Other Emerging Agricultural Production
Research, Education, and Extension Initiative.--Section 1672E(d)(1)(B)
of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5925g(d)(1)(B)) is amended by striking ``fiscal year 2024, to remain
available until expended'' and inserting ``each of fiscal years 2024
through 2031''.
(b) Foundation for Food and Agriculture Research.--Section
7601(g)(1)(A) of the Agricultural Act of 2014 (7 U.S.C. 5939(g)(1)(A))
is amended by adding at the end the following:
``(iv) <<NOTE: Deadline. Transfer.>> Further
funding.--Not later than 30 days after the date of
enactment of this clause, of the funds of the
Commodity Credit Corporation, the Secretary shall
transfer to the Foundation to carry out this
section $37,000,000, to remain available until
expended.''.
(c) Scholarships for Students at 1890 Institutions.--Section
1446(b)(1) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222a(b)(1)) is amended by adding
at the end the following:
``(C) Further funding.--Of the funds of the
Commodity Credit Corporation, the Secretary shall make
available to carry out this section $60,000,000 for
fiscal year 2026, to remain available until expended.''.
(d) Assistive Technology Program for Farmers With Disabilities.--
Section 1680 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5933) is amended--
(1) in subsection (c)(2), by inserting ``and subsection
(d)'' after ``paragraph (1)''; and
(2) by adding at the end the following:
``(d) Mandatory Funding.--Subject to subsection (c)(2), of the funds
of the Commodity Credit Corporation, the Secretary shall use to carry
out this section $8,000,000 for fiscal year 2026, to remain available
until expended.''.
(e) Specialty Crop Research Initiative.--Section 412(k)(1)(B) of the
Agricultural Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7632(k)(1)(B)) is amended by striking ``section $80,000,000 for
fiscal year 2014'' and inserting the following: ``section--
``(i) $80,000,000 for each of fiscal years
2014 through 2025; and
``(ii) $175,000,000 for fiscal year 2026''.
(f) Research Facilities Act.--Section 6 of the Research Facilities
Act (7 U.S.C. 390d) is amended--
(1) in subsection (c), by striking ``subsection (a)'' and
inserting ``subsections (a) and (e)''; and
(2) by adding at the end the following:
``(e) Mandatory Funding.--Subject to subsections (b), (c), and (d),
of the funds of the Commodity Credit Corporation, the Secretary shall
make available to carry out the competitive grant program under section
4 $125,000,000 for fiscal year 2026 and each fiscal year thereafter.''.
SEC. 10605. ENERGY.
Section 9005(g)(1)(F) of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8105(g)(1)(F)) is amended by striking ``2024'' and
inserting ``2031''.
[[Page 139 STAT. 110]]
SEC. 10606. HORTICULTURE.
(a) Plant Pest and Disease Management and Disaster Prevention.--
Section 420(f) of the Plant Protection Act (7 U.S.C. 7721(f)) is
amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) by redesignating paragraph (6) as paragraph (7);
(3) by inserting after paragraph (5) the following:
``(6) $75,000,000 for each of fiscal years 2018 through
2025; and''; and
(4) in paragraph (7) (as so redesignated), by striking
``$75,000,000 for fiscal year 2018'' and inserting ``$90,000,000
for fiscal year 2026''.
(b) Specialty Crop Block Grants.--Section 101(l)(1) of the Specialty
Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-
465) is amended--
(1) in subparagraph (D), by striking ``and'' at the end;
(2) by redesignating subparagraph (E) as subparagraph (F);
(3) by inserting after subparagraph (D) the following:
``(E) $85,000,000 for each of fiscal years 2018
through 2025; and''; and
(4) in subparagraph (F) (as so redesignated), by striking
``$85,000,000 for fiscal year 2018'' and inserting
``$100,000,000 for fiscal year 2026''.
(c) Organic Production and Market Data Initiative.--Section
7407(d)(1) of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 5925c(d)(1)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(D) $10,000,000 for the period of fiscal years
2026 through 2031.''.
(d) Modernization and Improvement of International Trade Technology
Systems and Data Collection.--Section 2123(c)(4) of the Organic Foods
Production Act of 1990 (7 U.S.C. 6522(c)(4)) is amended, in the matter
preceding subparagraph (A), by striking ``and $1,000,000 for fiscal year
2024'' and inserting ``, $1,000,000 for fiscal years 2024 and 2025, and
$5,000,000 for fiscal year 2026''.
(e) National Organic Certification Cost-share Program.--Section
10606(d)(1)(C) of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 6523(d)(1)(C)) is amended by striking ``2024'' and inserting
``2031''.
(f) Multiple Crop and Pesticide Use Survey.--Section 10109(c) of the
Agriculture Improvement Act of 2018 (Public Law 115-334; 132 Stat. 4907)
is amended by adding at the end the following:
``(3) Further mandatory funding.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use to carry
out this section $5,000,000 for fiscal year 2026, to remain
available until expended.''.
SEC. 10607. MISCELLANEOUS.
(a) Animal Disease Prevention and Management.--Section 10409A(d)(1)
of the Animal Health Protection Act (7 U.S.C. 8308a(d)(1)) is amended--
[[Page 139 STAT. 111]]
(1) in subparagraph (B)--
(A) in the heading, by striking ``Subsequent fiscal
years'' and inserting ``Fiscal years 2023 through
2025''; and
(B) by striking ``fiscal year 2023 and each fiscal
year thereafter'' and inserting ``each of fiscal years
2023 through 2025''; and
(2) by adding at the end the following:
``(C) Fiscal years 2026 through 2030.--Of the funds
of the Commodity Credit Corporation, the Secretary shall
make available to carry out this section $233,000,000
for each of fiscal years 2026 through 2030, of which--
``(i) not less than $10,000,000 shall be made
available for each such fiscal year to carry out
subsection (a);
``(ii) not less than $70,000,000 shall be made
available for each such fiscal year to carry out
subsection (b); and
``(iii) not less than $153,000,000 shall be
made available for each such fiscal year to carry
out subsection (c).
``(D) Subsequent fiscal years.--Of the funds of the
Commodity Credit Corporation, the Secretary shall make
available to carry out this section $75,000,000 for
fiscal year 2031 and each fiscal year thereafter, of
which not less than $45,000,000 shall be made available
for each of those fiscal years to carry out subsection
(b).''.
(b) Sheep Production and Marketing Grant Program.--Section 209(c) of
the Agricultural Marketing Act of 1946 (7 U.S.C. 1627a(c)) is amended--
(1) by striking ``2019, and'' and inserting ``2019,''; and
(2) by inserting ``and $3,000,000 for fiscal year 2026,''
after ``fiscal year 2024,''
(c) Pima Agriculture Cotton Trust Fund.--Section 12314 of the
Agricultural Act of 2014 (7 U.S.C. 2101 note; Public Law 113-79) is
amended--
(1) in subsection (b), in the matter preceding paragraph
(1), by striking ``2024'' and inserting ``2031''; and
(2) in subsection (h), by striking ``2024''and inserting
``2031''.
(d) Agriculture Wool Apparel Manufacturers Trust Fund.--Section
12315 of the Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law
113-79) is amended by striking ``2024'' each place it appears and
inserting ``2031''.
(e) Wool Research and Promotion.--Section 12316(a) of the
Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113-79) is
amended by striking ``2024'' and inserting ``2031''.
(f) Emergency Citrus Disease Research and Development Trust Fund.--
Section 12605(d) of the Agriculture Improvement Act of 2018 (7 U.S.C.
7632 note; Public Law 115-334) is amended by striking ``2024'' and
inserting ``2031''.
[[Page 139 STAT. 112]]
TITLE II-- <<NOTE: Appropriations authorizations. Time
periods. Expiration date.>> COMMITTEE ON ARMED SERVICES
SEC. 20001. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
IMPROVING THE QUALITY OF LIFE FOR
MILITARY PERSONNEL.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary of Defense for fiscal year 2025,
out of any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029--
(1) $230,480,000 for restoration and modernization costs
under the Marine Corps Barracks 2030 initiative;
(2) $119,000,000 for base operating support costs under the
Marine Corps;
(3) $1,000,000,000 for Army, Navy, Air Force, and Space
Force sustainment, restoration, and modernization of military
unaccompanied housing;
(4) $2,000,000,000 for the Defense Health Program;
(5) $2,900,000,000 to supplement the basic allowance for
housing payable to members of the Army, Air Force, Navy, Marine
Corps, and Space Force , notwithstanding section 403 of title
37, United States Code;
(6) $50,000,000 for bonuses, special pays, and incentive
pays for members of the Army, Air Force, Navy, Marine Corps, and
Space Force pursuant to titles 10 and 37, United States Code;
(7) $10,000,000 for the Defense Activity for Non-Traditional
Education Support's Online Academic Skills Course program for
members of the Army, Air Force, Navy, Marine Corps, and Space
Force;
(8) $100,000,000 for tuition assistance for members of the
Army, Air Force, Navy, Marine Corps, and Space Force pursuant to
title 10, United States Code;
(9) $100,000,000 for child care fee assistance for members
of the Army, Air Force, Navy, Marine Corps, and Space Force
under part II of chapter 88 of title 10, United States Code;
(10) $590,000,000 to increase the Temporary Lodging Expense
Allowance under chapter 8 of title 37, United States Code, to 21
days;
(11) $100,000,000 for Department of Defense Impact Aid
payments to local educational agencies under section 2008 of
title 10, United States Code;
(12) $10,000,000 for military spouse professional licensure
under section 1784 of title 10, United States Code;
(13) $6,000,000 for Armed Forces Retirement Home facilities;
(14) $100,000,000 for the Defense Community Infrastructure
Program;
(15) $100,000,000 for Defense Advanced Research Projects
Agency (DARPA) casualty care research; and
(16) $62,000,000 for modernization of Department of Defense
childcare center staffing.
(b) <<NOTE: 10 USC 2875 note.>> Temporary Increase in Percentage of
Value of Authorized Investment in Certain Privatized Military Housing
Projects.--
[[Page 139 STAT. 113]]
(1) <<NOTE: Applicability.>> In general.--During the period
beginning on the date of the enactment of this section and
ending on September 30, 2029, the Secretary concerned shall
apply--
(A) paragraph (1) of subsection (c) of section 2875
of title 10, United States Code, by substituting ``60
percent'' for ``33 \1/3\ percent''; and
(B) paragraph (2) of such subsection by substituting
``60 percent'' for ``45 percent''.
(2) Secretary concerned defined.--In this subsection, the
term ``Secretary concerned'' has the meaning given such term in
section 101 of title 10, United States Code.
(c) Temporary Authority for Acquisition or Construction of
Privatized Military Unaccompanied Housing.--Section 2881a of title
10, <<NOTE: 10 USC prec. 2871.>> United States Code, is amended--
(1) by striking the heading and inserting ``Temporary
authority for acquisition or construction of privatized military
unaccompanied housing'';
(2) by striking ``Secretary of the Navy'' each place it
appears and inserting ``Secretary concerned'';
(3) by striking ``under the pilot projects'' each place it
appears and inserting ``pursuant to this section'';
(4) in subsection (a)--
(A) by striking the heading and inserting ``In
General''; and
(B) by striking ``carry out not more than three
pilot projects under the authority of this section or
another provision of this subchapter to use the private
sector'' and inserting ``use the authority under this
subchapter to enter into contracts with appropriate
private sector entities'';
(5) in subsection (c), by striking ``privatized housing''
and inserting ``privatized housing units'';
(6) by redesignating subsection (f) as subsection (e); and
(7) in subsection (e) (as so redesignated)--
(A) by striking ``under the pilot programs'' and
inserting ``under this section''; and
(B) by striking ``September 30, 2009'' and inserting
``September 30, 2029''.
SEC. 20002. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
SHIPBUILDING.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $250,000,000 for the expansion of accelerated Training
in Defense Manufacturing program;
(2) $250,000,000 for United States production of turbine
generators for shipbuilding industrial base;
(3) $450,000,000 for United States additive manufacturing
for wire production and machining capacity for shipbuilding
industrial base;
(4) $492,000,000 for next-generation shipbuilding
techniques;
(5) $85,000,000 for United States-made steel plate for
shipbuilding industrial base;
(6) $50,000,000 for machining capacity for naval propellers
for shipbuilding industrial base;
[[Page 139 STAT. 114]]
(7) $110,000,000 for rolled steel and fabrication facility
for shipbuilding industrial base;
(8) $400,000,000 for expansion of collaborative campus for
naval shipbuilding;
(9) $450,000,000 for application of autonomy and artificial
intelligence to naval shipbuilding;
(10) $500,000,000 for the adoption of advanced manufacturing
techniques in the shipbuilding industrial base;
(11) $500,000,000 for additional dry-dock capability;
(12) $50,000,000 for the expansion of cold spray repair
technologies;
(13) $450,000,000 for additional maritime industrial
workforce development programs;
(14) $750,000,000 for additional supplier development across
the naval shipbuilding industrial base;
(15) $250,000,000 for additional advanced manufacturing
processes across the naval shipbuilding industrial base;
(16) $4,600,000,000 for a second Virginia-class submarine in
fiscal year 2026;
(17) $5,400,000,000 for two additional Guided Missile
Destroyer (DDG) ships;
(18) $160,000,000 for advanced procurement for Landing Ship
Medium;
(19) $1,803,941,000 for procurement of Landing Ship Medium;
(20) $295,000,000 for development of a second Landing Craft
Utility shipyard and production of additional Landing Craft
Utility;
(21) $100,000,000 for advanced procurement for light
replenishment oiler program;
(22) $600,000,000 for the lease or purchase of new ships
through the National Defense Sealift Fund;
(23) $2,725,000,000 for the procurement of T-AO oilers;
(24) $500,000,000 for cost-to-complete for rescue and
salvage ships;
(25) $300,000,000 for production of ship-to-shore
connectors;
(26) $1,470,000,000 for the implementation of a multi-ship
amphibious warship contract;
(27) $80,000,000 for accelerated development of vertical
launch system reloading at sea;
(28) $250,000,000 for expansion of Navy corrosion control
programs;
(29) $159,000,000 for leasing of ships for Marine Corps
operations;
(30) $1,534,000,000 for expansion of small unmanned surface
vessel production;
(31) $2,100,000,000 for development, procurement, and
integration of purpose-built medium unmanned surface vessels;
(32) $1,300,000,000 for expansion of unmanned underwater
vehicle production;
(33) $188,360,000 for the development and testing of
maritime robotic autonomous systems and enabling technologies;
(34) $174,000,000 for the development of a Test Resource
Management Center robotic autonomous systems proving ground;
[[Page 139 STAT. 115]]
(35) $250,000,000 for the development, production, and
integration of wave-powered unmanned underwater vehicles; and
(36) $150,000,000 for retention of inactive reserve fleet
ships.
SEC. 20003. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
INTEGRATED AIR AND MISSILE DEFENSE.
(a) Next Generation Missile Defense Technologies.--In addition to
amounts otherwise available, there are appropriated to the Secretary of
Defense for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, to remain available until September 30, 2029--
(1) $250,000,000 for development and testing of directed
energy capabilities by the Under Secretary for Research and
Engineering;
(2) $500,000,000 for national security space launch
infrastructure;
(3) $2,000,000,000 for air moving target indicator military
satellites;
(4) $400,000,000 for expansion of Multi-Service Advanced
Capability Hypersonic Test Bed program;
(5) $5,600,000,000 for development of space-based and boost
phase intercept capabilities;
(6) $7,200,000,000 for the development, procurement, and
integration of military space-based sensors; and
(7) $2,550,000,000 for the development, procurement, and
integration of military missile defense capabilities.
(b) Layered Homeland Defense.--In addition to amounts otherwise
available, there are appropriated to the Secretary of Defense for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
to remain available until September 30, 2029--
(1) $2,200,000,000 for acceleration of hypersonic defense
systems;
(2) $800,000,000 for accelerated development and deployment
of next-generation intercontinental ballistic missile defense
systems;
(3) $408,000,000 for Army space and strategic missile test
range infrastructure restoration and modernization in the United
States Indo-Pacific Command area of operations west of the
international dateline;
(4) $1,975,000,000 for improved ground-based missile defense
radars; and
(5) $530,000,000 for the design and construction of Missile
Defense Agency missile instrumentation range safety ship.
SEC. 20004. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
MUNITIONS AND DEFENSE SUPPLY CHAIN
RESILIENCY.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary of Defense for fiscal year 2025,
out of any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029--
(1) $400,000,000 for the development, production, and
integration of Navy and Air Force long-range anti-ship missiles;
(2) $380,000,000 for production capacity expansion for Navy
and Air Force long-range anti-ship missiles;
[[Page 139 STAT. 116]]
(3) $490,000,000 for the development, production, and
integration of Navy and Air Force long-range air-to-surface
missiles;
(4) $94,000,000 for the development, production, and
integration of alternative Navy and Air Force long-range air-to-
surface missiles;
(5) $630,000,000 for the development, production, and
integration of long-range Navy air defense and anti-ship
missiles;
(6) $688,000,000 for the development, production, and
integration of long-range multi-service cruise missiles;
(7) $250,000,000 for production capacity expansion and
supplier base strengthening of long-range multi-service cruise
missiles;
(8) $70,000,000 for the development, production, and
integration of short-range Navy and Marine Corps anti-ship
missiles;
(9) $100,000,000 for the development of an anti-ship seeker
for short-range Army ballistic missiles;
(10) $175,000,000 for production capacity expansion for
next-generation Army medium-range ballistic missiles;
(11) $50,000,000 for the mitigation of diminishing
manufacturing sources for medium-range air-to-air missiles;
(12) $250,000,000 for the procurement of medium-range air-
to-air missiles;
(13) $225,000,000 for the expansion of production capacity
for medium-range air-to-air missiles;
(14) $50,000,000 for the development of second sources for
components of short-range air-to-air missiles;
(15) $325,000,000 for production capacity improvements for
air-launched anti-radiation missiles;
(16) $50,000,000 for the accelerated development of Army
next-generation medium-range anti-ship ballistic missiles;
(17) $114,000,000 for the production of Army next-generation
medium-range ballistic missiles;
(18) $300,000,000 for the production of Army medium-range
ballistic missiles;
(19) $85,000,000 for the accelerated development of Army
long-range ballistic missiles;
(20) $400,000,000 for the production of heavyweight
torpedoes;
(21) $200,000,000 for the development, procurement, and
integration of mass-producible autonomous underwater munitions;
(22) $70,000,000 for the improvement of heavyweight torpedo
maintenance activities;
(23) $200,000,000 for the production of lightweight
torpedoes;
(24) $500,000,000 for the development, procurement, and
integration of maritime mines;
(25) $50,000,000 for the development, procurement, and
integration of new underwater explosives;
(26) $55,000,000 for the development, procurement, and
integration of lightweight multi-mission torpedoes;
(27) $80,000,000 for the production of sonobuoys;
(28) $150,000,000 for the development, procurement, and
integration of air-delivered long-range maritime mines;
[[Page 139 STAT. 117]]
(29) $61,000,000 for the acceleration of Navy expeditionary
loitering munitions deployment;
(30) $50,000,000 for the acceleration of one-way attack
unmanned aerial systems with advanced autonomy;
(31) $1,000,000,000 for the expansion of the one-way attack
unmanned aerial systems industrial base;
(32) $200,000,000 for investments in solid rocket motor
industrial base through the Industrial Base Fund established
under section 4817 of title 10, United States Code;
(33) $400,000,000 for investments in the emerging solid
rocket motor industrial base through the Industrial Base Fund
established under section 4817 of title 10, United States Code;
(34) $42,000,000 for investments in second sources for
large-diameter solid rocket motors for hypersonic missiles;
(35) $1,000,000,000 for the creation of next-generation
automated munitions production factories;
(36) $170,000,000 for the development of advanced radar
depot for repair, testing, and production of radar and
electronic warfare systems;
(37) $25,000,000 for the expansion of the Department of
Defense industrial base policy analysis workforce;
(38) $30,300,000 for the repair of Army missiles;
(39) $100,000,000 for the production of small and medium
ammunition;
(40) $2,000,000,000 for additional activities to improve the
United States stockpile of critical minerals through the
National Defense Stockpile Transaction Fund, authorized by
subchapter III of chapter 5 of title 50, United States Code;
(41) $10,000,000 for the expansion of the Department of
Defense armaments cooperation workforce;
(42) $500,000,000 for the expansion of the Defense
Exportability Features program;
(43) $350,000,000 for production of Navy long-range air and
missile defense interceptors;
(44) $93,000,000 for replacement of Navy long-range air and
missile defense interceptors;
(45) $100,000,000 for development of a second solid rocket
motor source for Navy air defense and anti ship missiles;
(46) $65,000,000 for expansion of production capacity of
Missile Defense Agency long-range anti-ballistic missiles;
(47) $225,000,000 for expansion of production capacity for
Navy air defense and anti-ship missiles;
(48) $103,300,000 for expansion of depot level maintenance
facility for Navy long-range air and missile defense
interceptors;
(49) $18,000,000 for creation of domestic source for
guidance section of Navy short-range air defense missiles;
(50) $65,000,000 for integration of Army medium-range air
and missile defense interceptor with Navy ships;
(51) $176,100,000 for production of Army long-range movable
missile defense radar;
(52) $167,000,000 for accelerated fielding of Army short-
range gun-based air and missile defense system;
(53) $40,000,000 for development of low-cost alternatives to
air and missile defense interceptors;
(54) $50,000,000 for acceleration of Army next-generation
shoulder-fired air defense system;
[[Page 139 STAT. 118]]
(55) $91,000,000 for production of Army next-generation
shoulder-fired air defense system;
(56) $500,000,000 for development, production, and
integration of counter-unmanned aerial systems programs;
(57) $350,000,000 for development, production, and
integration of non-kinetic counter-unmanned aerial systems
programs;
(58) $250,000,000 for development, production, and
integration of land-based counter-unmanned aerial systems
programs;
(59) $200,000,000 for development, production, and
integration of ship-based counter-unmanned aerial systems
programs;
(60) $400,000,000 for acceleration of hypersonic strike
programs;
(61) $167,000,000 for procurement of additional launchers
for Army medium-range air and missile defense interceptors;
(62) $500,000,000 for expansion of defense advanced
manufacturing techniques;
(63) $1,000,000 for establishment of the Joint Energetics
Transition Office;
(64) $200,000,000 for acceleration of Army medium-range air
and missile defense interceptors;
(65) $150,000,000 for additive manufacturing for propellant;
(66) $250,000,000 for expansion and acceleration of
penetrating munitions production; and
(67) $50,000,000 for development, procurement, and
integration of precision extended-range artillery.
(b) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Defense for fiscal year 2025,
out of any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029, $3,300,000,000 for grants and
purchase commitments made pursuant to the Industrial Base Fund
established under section 4817 of title 10, United States Code.
(c) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Defense for fiscal year 2025,
out of any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029, $5,000,000,000 for investments in
critical minerals supply chains made pursuant to the Industrial Base
Fund established under section 4817 of title 10, United States Code.
(d) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Defense, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029, $500,000,000 to the ``Department of Defense Credit
Program Account'' to carry out the capital assistance program, including
loans, loan guarantees, and technical assistance, established under
section 149(e) of title 10, United States Code, for critical minerals
and related industries and projects, including related Covered
Technology Categories: Provided, That--
(1) such amounts are available to subsidize gross
obligations for the principal amount of direct loans, and total
loan principal, any part of which is to be guaranteed, not to
exceed $100,000,000,000; and
(2) such amounts are available to cover all costs and
expenditures as provided under section 149(e)(5)(B) of title 10,
United States Code.
[[Page 139 STAT. 119]]
SEC. 20005. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
SCALING LOW-COST WEAPONS INTO
PRODUCTION.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary of Defense for fiscal year 2025,
out of any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029--
(1) $25,000,000 for the Office of Strategic Capital Global
Technology Scout program;
(2) $1,400,000,000 for the expansion of the small unmanned
aerial system industrial base;
(3) $400,000,000 for the development and deployment of the
Joint Fires Network and associated joint battle management
capabilities;
(4) $400,000,000 for the expansion of advanced command-and-
control tools to combatant commands and military departments;
(5) $100,000,000 for the development of shared secure
facilities for the defense industrial base;
(6) $50,000,000 for the creation of additional Defense
Innovation Unit OnRamp Hubs;
(7) $600,000,000 for the acceleration of Strategic
Capabilities Office programs;
(8) $650,000,000 for the expansion of Mission Capabilities
office joint prototyping and experimentation activities for
military innovation;
(9) $500,000,000 for the accelerated development and
integration of advanced 5G/6G technologies for military use;
(10) $25,000,000 for testing of simultaneous transmit and
receive technology for military spectrum agility;
(11) $50,000,000 for the development, procurement, and
integration of high-altitude stratospheric balloons for military
use;
(12) $120,000,000 for the development, procurement, and
integration of long-endurance unmanned aerial systems for
surveillance;
(13) $40,000,000 for the development, procurement, and
integration of alternative positioning and navigation technology
to enable military operations in contested electromagnetic
environments;
(14) $750,000,000 for the acceleration of innovative
military logistics and energy capability development and
deployment;
(15) $125,000,000 for the acceleration of development of
small, portable modular nuclear reactors for military use;
(16) $1,000,000,000 for the expansion of programs to
accelerate the procurement and fielding of innovative
technologies;
(17) $90,000,000 for the development of reusable hypersonic
technology for military strikes;
(18) $2,000,000,000 for the expansion of Defense Innovation
Unit scaling of commercial technology for military use;
(19) $500,000,000 to prevent delays in delivery of
attritable autonomous military capabilities;
(20) $1,500,000,000 for the development, procurement, and
integration of low-cost cruise missiles;
(21) $124,000,000 for improvements to Test Resource
Management Center artificial intelligence capabilities;
[[Page 139 STAT. 120]]
(22) $145,000,000 for the development of artificial
intelligence to enable one-way attack unmanned aerial systems
and naval systems;
(23) $250,000,000 for the development of the Test Resource
Management Center digital test environment;
(24) $250,000,000 for the advancement of the artificial
intelligence ecosystem;
(25) $250,000,000 for the expansion of Cyber Command
artificial intelligence lines of effort;
(26) $250,000,000 for the acceleration of the Quantum
Benchmarking Initiative;
(27) $1,000,000,000 for the expansion and acceleration of
qualification activities and technical data management to
enhance competition in defense industrial base;
(28) $400,000,000 for the expansion of the defense
manufacturing technology program;
(29) $1,685,000,000 for military cryptographic modernization
activities;
(30) $90,000,000 for APEX Accelerators, the Mentor-Protege
Program, and cybersecurity support to small non-traditional
contractors;
(31) $250,000,000 for the development, procurement, and
integration of Air Force low-cost counter-air capabilities;
(32) $10,000,000 for additional Air Force wargaming
activities; and
(33) $20,000,000 for the Office of Strategic Capital
workforce.
(b) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary of Defense, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029, $1,000,000,000 to the ``Department of Defense Credit
Program Account'' to carry out the capital assistance program, including
loans, loan guarantees, and technical assistance, established under
section 149(e) of title 10, United States Code: Provided, That--
(1) such amounts are available to subsidize gross
obligations for the principal amount of direct loans, and total
loan principal, any part of which is to be guaranteed, not to
exceed $100,000,000,000; and
(2) such amounts are available to cover all costs and
expenditures as provided under section 149(e)(5)(B) of title 10,
United States Code.
SEC. 20006. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
IMPROVING THE EFFICIENCY AND
CYBERSECURITY OF THE DEPARTMENT OF
DEFENSE.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $150,000,000 for business systems replacement to
accelerate the audits of the financial statements of the
Department of Defense pursuant to chapter 9A and section 2222 of
title 10, United States Code;
(2) $200,000,000 for the deployment of automation and
artificial intelligence to accelerate the audits of the
financial
[[Page 139 STAT. 121]]
statements of the Department of Defense pursuant to chapter 9A
and section 2222 of title 10, United States Code;
(3) $10,000,000 for the improvement of the budgetary and
programmatic infrastructure of the Office of the Secretary of
Defense; and
(4) $20,000,000 for defense cybersecurity programs of the
Defense Advanced Research Projects Agency.
SEC. 20007. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR AIR
SUPERIORITY.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $3,150,000,000 to increase F-15EX aircraft production;
(2) $361,220,000 to prevent the retirement of F-22 aircraft;
(3) $127,460,000 to prevent the retirement of F-15E
aircraft;
(4) $187,000,000 to accelerate installation of F-16
electronic warfare capability;
(5) $116,000,000 for C-17A Mobility Aircraft Connectivity;
(6) $84,000,000 for KC-135 Mobility Aircraft Connectivity;
(7) $440,000,000 to increase C-130J production;
(8) $474,000,000 to increase EA-37B production;
(9) $678,000,000 to accelerate the Collaborative Combat
Aircraft program;
(10) $400,000,000 to accelerate production of the F-47
aircraft;
(11) $750,000,000 accelerate the FA/XX aircraft;
(12) $100,000,000 for production of Advanced Aerial Sensors;
(13) $160,000,000 to accelerate V-22 nacelle and reliability
and safety improvements;
(14) $100,000,000 to accelerate production of MQ-25
aircraft;
(15) $270,000,000 for development, procurement, and
integration of Marine Corps unmanned combat aircraft;
(16) $96,000,000 for the procurement and integration of
infrared search and track pods;
(17) $50,000,000 for the procurement and integration of
additional F-15EX conformal fuel tanks;
(18) $600,000,000 for the development, procurement, and
integration of Air Force long-range strike aircraft; and
(19) $500,000,000 for the development, procurement, and
integration of Navy long-range strike aircraft.
SEC. 20008. ENHANCEMENT OF RESOURCES FOR NUCLEAR FORCES.
(a) DOD Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary of Defense for fiscal year 2025,
out of any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029--
(1) $2,500,000,000 for risk reduction activities for the
Sentinel intercontinental ballistic missile program;
(2) $4,500,000,000 only for expansion of production capacity
of B-21 long-range bomber aircraft and the purchase of aircraft
only available through the expansion of production capacity;
(3) $500,000,000 for improvements to the Minuteman III
intercontinental ballistic missile system;
[[Page 139 STAT. 122]]
(4) $100,000,000 for capability enhancements to
intercontinental ballistic missile reentry vehicles;
(5) $148,000,000 for the expansion of D5 missile motor
production;
(6) $400,000,000 to accelerate the development of Trident
D5LE2 submarine-launched ballistic missiles;
(7) $2,000,000,000 to accelerate the development,
procurement, and integration of the nuclear-armed sea-launched
cruise missile;
(8) $62,000,000 to convert Ohio-class submarine tubes to
accept additional missiles, not to be obligated before March 1,
2026;
(9) $168,000,000 to accelerate the production of the
Survivable Airborne Operations Center program;
(10) $65,000,000 to accelerate the modernization of nuclear
command, control, and communications;
(11) $210,300,000 for the increased production of MH-139
helicopters; and
(12) $150,000,000 to accelerate the development,
procurement, and integration of military nuclear weapons
delivery programs.
(b) NNSA Appropriations.--In addition to amounts otherwise
available, there are appropriated to the Administrator of the National
Nuclear Security Administration for fiscal year 2025, out of any money
in the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $200,000,000 to perform National Nuclear Security
Administration Phase 1 studies pursuant to section 3211 of the
National Nuclear Security Administration Act (50 U.S.C. 2401);
(2) $540,000,000 to address deferred maintenance and repair
needs of the National Nuclear Security Administration pursuant
to section 3211 of the National Nuclear Security Administration
Act (50 U.S.C. 2401);
(3) $1,000,000,000 to accelerate the construction of
National Nuclear Security Administration facilities pursuant to
section 3211 of the National Nuclear Security Administration Act
(50 U.S.C. 2401);
(4) $400,000,000 to accelerate the development, procurement,
and integration of the warhead for the nuclear-armed sea-
launched cruise missile pursuant to section 3211 of the National
Nuclear Security Administration Act (50 U.S.C. 2401);
(5) $750,000,000 to accelerate primary capability
modernization pursuant to section 3211 of the National Nuclear
Security Administration Act (50 U.S.C. 2401);
(6) $750,000,000 to accelerate secondary capability
modernization pursuant to section 3211 of the National Nuclear
Security Administration Act (50 U.S.C. 2401);
(7) $120,000,000 to accelerate domestic uranium enrichment
centrifuge deployment for defense purposes pursuant to section
3211 of the National Nuclear Security Administration Act (50
U.S.C. 2401);
(8) $10,000,000 for National Nuclear Security Administration
evaluation of spent fuel reprocessing technology; and
(9) $115,000,000 for accelerating nuclear national security
missions through artificial intelligence.
[[Page 139 STAT. 123]]
SEC. 20009. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES TO
IMPROVE CAPABILITIES OF UNITED STATES
INDO-PACIFIC COMMAND.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $365,000,000 for Army exercises and operations in the
Western Pacific area of operations;
(2) $53,000,000 for Special Operations Command exercises and
operations in the Western Pacific area of operations;
(3) $47,000,000 for Marine Corps exercises and operations in
Western Pacific area of operations;
(4) $90,000,000 for Air Force exercises and operations in
Western Pacific area of operations;
(5) $532,600,000 for the Pacific Air Force biennial large-
scale exercise;
(6) $19,000,000 for the development of naval small craft
capabilities;
(7) $35,000,000 for military additive manufacturing
capabilities in the United States Indo-Pacific Command area of
operations west of the international dateline;
(8) $450,000,000 for the development of airfields within the
area of operations of United States Indo-Pacific Command;
(9) $1,100,000,000 for development of infrastructure within
the area of operations of United States Indo-Pacific Command;
(10) $124,000,000 for mission networks for United States
Indo-Pacific Command;
(11) $100,000,000 for Air Force regionally based cluster
pre-position base kits;
(12) $115,000,000 for exploration and development of
existing Arctic infrastructure;
(13) $90,000,000 for the accelerated development of non-
kinetic capabilities;
(14) $20,000,000 for United States Indo-Pacific Command
military exercises;
(15) $143,000,000 for anti-submarine sonar arrays;
(16) $30,000,000 for surveillance and reconnaissance
capabilities for United States Africa Command;
(17) $30,000,000 for surveillance and reconnaissance
capabilities for United States Indo-Pacific Command;
(18) $500,000,000 for the development, coordination, and
deployment of economic competition effects within the Department
of Defense;
(19) $10,000,000 for the expansion of Department of Defense
workforce for economic competition;
(20) $1,000,000,000 for offensive cyber operations;
(21) $500,000,000 for personnel and operations costs
associated with forces assigned to United States Indo-Pacific
Command;
(22) $300,000,000 for the procurement of mesh network
communications capabilities for Special Operations Command
Pacific;
(23) $850,000,000 for the replenishment of military
articles;
(24) $200,000,000 for acceleration of Guam Defense System
program;
(25) $68,000,000 for Space Force facilities improvements;
[[Page 139 STAT. 124]]
(26) $150,000,000 for ground moving target indicator
military satellites;
(27) $528,000,000 for DARC and SILENTBARKER military space
situational awareness programs;
(28) $80,000,000 for Navy Operational Support Division;
(29) $1,000,000,000 for the X-37B military spacecraft
program;
(30) $3,650,000,000 for the development, procurement, and
integration of United States military satellites and the
protection of United States military satellites.
(31) $125,000,000 for the development, procurement, and
integration of military space communications.
(32) $350,000,000 for the development, procurement, and
integration of military space command and control systems.
SEC. 20010. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
IMPROVING THE READINESS OF THE
DEPARTMENT OF DEFENSE.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $1,400,000,000 for a pilot program on OPN-8 maritime
spares and repair rotable pool;
(2) $700,000,000 for a pilot program on OPN-8 maritime
spares and repair rotable pool for amphibious ships;
(3) $2,118,000,000 for spares and repairs to keep Air Force
aircraft mission capable;
(4) $1,500,000,000 for Army depot modernization and capacity
enhancement;
(5) $2,000,000,000 for Navy depot and shipyard modernization
and capacity enhancement;
(6) $250,000,000 for Air Force depot modernization and
capacity enhancement;
(7) $1,640,000,000 for Special Operations Command equipment,
readiness, and operations;
(8) $500,000,000 for National Guard unit readiness;
(9) $400,000,000 for Marine Corps readiness and
capabilities;
(10) $20,000,000 for upgrades to Marine Corps utility
helicopters;
(11) $310,000,000 for next-generation vertical lift,
assault, and intra-theater aeromedical evacuation aircraft;
(12) $75,000,000 for the procurement of anti-lock braking
systems for Army wheeled transport vehicles;
(13) $230,000,000 for the procurement of Army wheeled combat
vehicles;
(14) $63,000,000 for the development of advanced rotary-wing
engines;
(15) $241,000,000 for the development, procurement, and
integration of Marine Corps amphibious vehicles;
(16) $250,000,000 for the procurement of Army tracked combat
transport vehicles;
(17) $98,000,000 for additional Army light rotary-wing
capabilities;
(18) $1,500,000,000 for increased depot maintenance and
shipyard maintenance activities;
[[Page 139 STAT. 125]]
(19) $2,500,000,000 for Air Force facilities sustainment,
restoration, and modernization;
(20) $92,500,000 for the completion of Robotic Combat
Vehicle prototyping;
(21) $125,000,000 for Army operations;
(22) $10,000,000 for the Air Force Concepts, Development,
and Management Office; and
(23) $320,000,000 for Joint Special Operations Command.
SEC. 20011. IMPROVING DEPARTMENT OF DEFENSE BORDER SUPPORT AND
COUNTER-DRUG MISSIONS.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029, $1,000,000,000 for the deployment of military
personnel in support of border operations, operations and maintenance
activities in support of border operations, counter-narcotics and
counter-transnational criminal organization mission support, the
operation of national defense areas and construction in national defense
areas, and the temporary detention of migrants on Department of Defense
installations, in accordance with chapter 15 of title 10, United States
Code.
SEC. 20012. DEPARTMENT OF DEFENSE OVERSIGHT.
In addition to amounts otherwise available, there is appropriated to
the Inspector General of the Department of Defense for fiscal year 2025,
out of any money in the Treasury not otherwise appropriated,
$10,000,000, to remain available through September 30, 2029, to monitor
Department of Defense activities for which funding is appropriated in
this title, including--
(1) programs with mutual technological dependencies;
(2) programs with related data management and data ownership
considerations; and
(3) programs particularly vulnerable to supply chain
disruptions and long lead time components.
SEC. 20013. MILITARY CONSTRUCTION PROJECTS AUTHORIZED.
(a) Authorization of Appropriations.--Funds are hereby authorized to
be appropriated for military construction, land acquisition, and
military family housing functions of each military department (as
defined in section 101(a) of title 10, United States Code) as specified
in this title.
(b) <<NOTE: Deadline.>> Spending Plan.--Not later than 30 days after
the date of the enactment of this title, the Secretary of each military
department shall submit to the Committees on Armed Services of the
Senate and House of Representatives a detailed spending plan by project
for all funds made available by this title to be expended on military
construction projects.
[[Page 139 STAT. 126]]
TITLE III-- <<NOTE: Time periods.>> COMMITTEE ON BANKING, HOUSING, AND
URBAN AFFAIRS
SEC. 30001. FUNDING CAP FOR THE BUREAU OF CONSUMER FINANCIAL
PROTECTION.
Section 1017(a)(2)(A)(iii) of the Consumer Financial Protection Act
of 2010 (12 U.S.C. 5497(a)(2)(A)(iii)) is amended by striking ``12'' and
inserting ``6.5''.
SEC. 30002. RESCISSION OF FUNDS FOR GREEN AND RESILIENT RETROFIT
PROGRAM FOR MULTIFAMILY HOUSING.
The unobligated balances of amounts made available under section
30002(a) of the Act entitled ``An Act to provide for reconciliation
pursuant to title II of S. Con. Res. 14'', approved August 16, 2022
(Public Law 117-169; 136 Stat. 2027) are rescinded.
SEC. 30003. SECURITIES AND EXCHANGE COMMISSION RESERVE FUND.
(a) In General.--Section 4 of the Securities Exchange Act of 1934
(15 U.S.C. 78d) is amended--
(1) by striking subsection (i); and
(2) by redesignating subsections (j) and (k) as subsections
(i) and (j), respectively.
(b) Technical and Conforming Amendment.--Section 21F(g)(2) of the
Securities Exchange Act of 1934 (15 U.S.C. 78u-6(g)(2)) is amended to
read as follows:
``(a) Use of Fund.--The Fund shall be available to the Commission,
without further appropriation or fiscal year limitation, for paying
awards to whistleblowers as provided in subsection (b).''.
(c) <<NOTE: Effective date. 15 USC 78d note.>> Transition
Provision.--During the period beginning on the date of enactment of this
Act and ending on October 1, 2025, the Securities and Exchange
Commission may expend amounts in the Securities and Exchange Commission
Reserve Fund that were obligated before the date of enactment of this
Act for any program, project, or activity that is ongoing (as of the day
before the date of enactment of this Act) in accordance with subsection
(i) of section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d),
as in effect on the day before the date of enactment of this Act.
(d) <<NOTE: Effective date.>> Transfer of Remaining Amounts.--
Effective on October 1, 2025, the obligated and unobligated balances of
amounts in the Securities and Exchange Commission Reserve Fund shall be
transferred to the general fund of the Treasury.
(e) Closing of Account.--For the purposes of section 1555 of title
31, United States Code, the Securities and Exchange Commission Reserve
Fund shall be considered closed, and thereafter shall not be available
for obligation or expenditure for any purpose, upon execution of the
transfer required under subsection (d).
SEC. 30004. <<NOTE: Expiration date.>> APPROPRIATIONS FOR DEFENSE
PRODUCTION ACT.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2025, out of amounts not otherwise appropriated,
$1,000,000,000, to remain available until September 30, 2027, to carry
out the Defense Production Act (50 U.S.C. 4501 et seq.).
[[Page 139 STAT. 127]]
TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
SEC. 40001. COAST GUARD MISSION READINESS.
(a) In General.--Chapter 11 of title 14, <<NOTE: 14 USC prec.
1181.>> United States Code, is amended by adding at the end the
following:
``Subchapter V--Coast Guard Mission Readiness
``Sec. 1181. <<NOTE: 14 USC 1181.>> Special appropriations
``In <<NOTE: Time period. Expiration date.>> addition to amounts
otherwise available, there is appropriated to the Coast Guard for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$24,593,500,000, to remain available until September 30, 2029,
notwithstanding paragraphs (1) and (2) of section 1105(a) and sections
1131, 1132, 1133, and 1156, to use expedited processes to procure or
acquire new operational assets and systems, to maintain existing assets
and systems, to design, construct, plan, engineer, and improve necessary
shore infrastructure, and to enhance operational resilience for
monitoring, search and rescue, interdiction, hardening of maritime
approaches, and navigational safety, of which--
``(1) $1,142,500,000 is provided for procurement and
acquisition of fixed-wing aircraft, equipment related to such
aircraft and training simulators and program management for such
aircraft, to provide for security of the maritime border;
``(2) $2,283,000,000 is provided for procurement and
acquisition of rotary-wing aircraft, equipment related to such
aircraft and training simulators and program management for such
aircraft, to provide for security of the maritime border;
``(3) $266,000,000 is provided for procurement and
acquisition of long-range unmanned aircraft and base stations,
equipment related to such aircraft and base stations, and
program management for such aircraft and base stations, to
provide for security of the maritime border;
``(4) $4,300,000,000 is provided for procurement of Offshore
Patrol Cutters, equipment related to such cutters, and program
management for such cutters, to provide operational presence and
security of the maritime border and for interdiction of persons
and controlled substances;
``(5) $1,000,000,000 is provided for procurement of Fast
Response Cutters, equipment related to such cutters, and program
management for such cutters, to provide operational presence and
security of the maritime border and for interdiction of persons
and controlled substances;
``(6) $4,300,000,000 is provided for procurement of Polar
Security Cutters, equipment related to such cutters, and program
management for such cutters, to ensure timely presence of the
Coast Guard in the Arctic and Antarctic regions;
``(7) $3,500,000,000 is provided for procurement of Arctic
Security Cutters, equipment related to such cutters, and program
management for such cutters, to ensure timely presence of the
Coast Guard in the Arctic and Antarctic regions;
``(8) $816,000,000 is provided for procurement of light and
medium icebreaking cutters, and equipment relating to such
cutters, from shipyards that have demonstrated success in the
[[Page 139 STAT. 128]]
cost-effective application of design standards and in
delivering, on schedule and within budget, vessels of a size and
tonnage that are not less than the size and tonnage of the
cutters described in this paragraph, and for program management
for such cutters, to expand domestic icebreaking capacity;
``(9) $162,000,000 is provided for procurement of Waterways
Commerce Cutters, equipment related to such cutters, and program
management for such cutters, to support aids to navigation,
waterways and coastal security, and search and rescue in inland
waterways;
``(10) $4,379,000,000 is provided for design, planning,
engineering, recapitalization, construction, rebuilding, and
improvement of, and program management for, shore facilities, of
which--
``(A) $425,000,000 is provided for design, planning,
engineering, construction of, and program management
for--
``(i) the enlisted boot camp barracks and
multi-use training center; and
``(ii) other related facilities at the
enlisted boot camp;
``(B) $500,000,000 is provided for--
``(i) construction, improvement, and dredging
at the Coast Guard Yard; and
``(ii) acquisition of a floating drydock for
the Coast Guard Yard;
``(C) not more than $2,729,500,000 is provided for
homeports and hangars for cutters and aircraft for which
funds are appropriated under paragraph (1) through (9);
and
``(D) $300,000,000 is provided for homeporting of
the existing polar icebreaker commissioned into service
in 2025;
``(11) $2,200,000,000 is provided for aviation, cutter, and
shore facility depot maintenance and maintenance of command,
control, communication, computer, and cyber assets;
``(12) $170,000,000 is provided for improving maritime
domain awareness on the maritime border, at United States ports,
at land-based facilities and in the cyber domain; and
``(13) $75,000,000 is provided to contract the services of,
acquire, or procure autonomous maritime systems.''.
(b) Technical and Conforming Amendment.--The analysis for chapter 11
of title 14, United <<NOTE: 14 USC prec. 1101.>> States Code, is amended
by adding at the end the following:
``subchapter v--coast guard mission readiness
``1181. Special appropriations.''.
SEC. 40002. <<NOTE: Deadlines. 47 USC 309 note.>> SPECTRUM
AUCTIONS.
(a) Definitions.--In this section:
(1) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Communications and
Information.
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) Covered band.--The term ``covered band''--
(A) except as provided in subparagraph (B), means
the band of frequencies between 1.3 gigahertz and 10.5
gigahertz; and
[[Page 139 STAT. 129]]
(B) does not include--
(i) the band of frequencies between 3.1
gigahertz and 3.45 gigahertz for purposes of
auction, reallocation, modification, or
withdrawal; or
(ii) the band of frequencies between 7.4
gigahertz and 8.4 gigahertz for purposes of
auction, reallocation, modification, or
withdrawal.
(4) Full-power commercial licensed use cases.--The term
``full-power commercial licensed use cases'' means flexible use
wireless broadband services with base station power levels
sufficient for high-power, high-density, and wide-area
commercial mobile services, consistent with the service rules
under part 27 of title 47, Code of Federal Regulations, or any
successor regulations, for wireless broadband deployments
throughout the covered band.
(b) General Auction Authority.--
(1) <<NOTE: Expiration date.>> Amendment.--Section
309(j)(11) of the Communications Act of 1934 (47 U.S.C.
309(j)(11)) is amended by striking ``grant a license or permit
under this subsection shall expire March 9, 2023'' and all that
follows and inserting the following: "complete a system of
competitive bidding under this subsection shall expire September
30, 2034, except that, with respect to the electromagnetic
spectrum-- ``
``(A) between the frequencies of 3.1 gigahertz and
3.45 gigahertz, such authority shall not apply; and
``(B) between the frequencies of 7.4 gigahertz and
8.4 gigahertz, such authority shall not apply.''.
(2) Spectrum auctions.--The Commission shall grant licenses
through systems of competitive bidding, before the expiration of
the general auction authority of the Commission under section
309(j)(11) of the Communications Act of 1934 (47 U.S.C.
309(j)(11)), as amended by paragraph (1) of this subsection, for
not less than 300 megahertz, including by completing a system of
competitive bidding not later than 2 years after the date of
enactment of this Act for not less than 100 megahertz in the
band between 3.98 gigahertz and 4.2 gigahertz.
(c) Identification for Reallocation.--
(1) In general.--The Assistant Secretary, in consultation
with the Commission, shall identify 500 megahertz of frequencies
in the covered band for reallocation to non-Federal use, shared
Federal and non-Federal use, or a combination thereof, for full-
power commercial licensed use cases, that--
(A) as of the date of enactment of this Act, are
allocated for Federal use; and
(B) shall be in addition to the 300 megahertz of
frequencies for which the Commission grants licenses
under subsection (b)(2).
(2) Schedule.--The Assistant Secretary shall identify the
frequencies under paragraph (1) according to the following
schedule:
(A) Not later than 2 years after the date of
enactment of this Act, the Assistant Secretary shall
identify not less than 200 megahertz of frequencies
within the covered band.
(B) Not later than 4 years after the date of
enactment of this Act, the Assistant Secretary shall
identify any
[[Page 139 STAT. 130]]
remaining bandwidth required to be identified under
paragraph (1).
(3) Required analysis.--
(A) <<NOTE: Determination.>> In general.--In
determining under paragraph (1) which specific
frequencies within the covered band to reallocate, the
Assistant Secretary shall determine the feasibility of
the reallocation of frequencies.
(B) <<NOTE: Assessment.>> Requirements.--In
conducting the analysis under subparagraph (A), the
Assistant Secretary shall assess net revenue potential,
relocation or sharing costs, as applicable, and the
feasibility of reallocating specific frequencies, with
the goal of identifying the best approach to maximize
net proceeds of systems of competitive bidding for the
Treasury, consistent with section 309(j) of the
Communications Act of 1934 (47 U.S.C. 309(j)).
(d) <<NOTE: Notifications.>> Auctions.--The Commission shall grant
licenses for the frequencies identified for reallocation under
subsection (c) through systems of competitive bidding in accordance with
the following schedule:
(1) Not later than 4 years after the date of enactment of
this Act, the Commission shall, after notifying the Assistant
Secretary, complete 1 or more systems of competitive bidding for
not less than 200 megahertz of the frequencies.
(2) <<NOTE: Compliance.>> Not later than 8 years after the
date of enactment of this Act, the Commission shall, after
notifying the Assistant Secretary, complete 1 or more systems of
competitive bidding for any frequencies identified under
subsection (c) that remain to be auctioned after compliance with
paragraph (1) of this subsection.
(e) <<NOTE: President. Determination.>> Limitation.--The President
shall modify or withdraw any frequency proposed for reallocation under
this section not later than 60 days before the commencement of a system
of competitive bidding scheduled by the Commission with respect to that
frequency, if the President determines that such modification or
withdrawal is necessary to protect the national security of the United
States.
(f) <<NOTE: Time period. Expiration date.>> Appropriation.--In
addition to amounts otherwise available, there is appropriated to the
Department of Commerce for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, $50,000,000, to remain available
through September 30, 2034, to provide additional support to the
Assistant Secretary to--
(1) <<NOTE: Analysis.>> conduct a timely spectrum analysis
of the bands of frequencies--
(A) between 2.7 gigahertz and 2.9 gigahertz;
(B) between 4.4 gigahertz and 4.9 gigahertz; and
(C) between 7.25 gigahertz and 7.4 gigahertz; and
(2) <<NOTE: Publication. Reports. Assessments.>> publish a
biennial report, with the last report to be published not later
than June 30, 2034, on the value of all spectrum used by Federal
entities (as defined in section 113(l) of the National
Telecommunications and Information Administration Organization
Act (47 U.S.C. 923(l))), that assesses the value of bands of
frequencies in increments of not more than 100 megahertz.
[[Page 139 STAT. 131]]
SEC. 40003. <<NOTE: Time periods.>> AIR TRAFFIC CONTROL
IMPROVEMENTS.
(a) <<NOTE: Appropriation authorization. Expiration date.>> In
General.--For the purpose of the acquisition, construction, sustainment,
and improvement of facilities and equipment necessary to improve or
maintain aviation safety, in addition to amounts otherwise made
available, there is appropriated to the Administrator of the Federal
Aviation Administration for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, to remain available until September
30, 2029--
(1) $4,750,000,000 for telecommunications infrastructure
modernization and systems upgrades;
(2) $3,000,000,000 for radar systems replacement;
(3) $500,000,000 for runway safety technologies, runway
lighting systems, airport surface surveillance technologies, and
to carry out section 347 of the FAA Reauthorization Act of 2024;
(4) $300,000,000 for Enterprise Information Display Systems;
(5) $80,000,000 to acquire and install not less than 50
Automated Weather Observing Systems, to acquire and install not
less than 60 Visual Weather Observing Systems, to acquire and
install not less than 64 weather camera sites, and to acquire
and install weather stations;
(6) $40,000,000 to carry out section 44745 of title 49,
United States Code, (except for activities described in
paragraph (5));
(7) $1,900,000,000 for necessary actions to construct a new
air route traffic control center (in this subsection referred to
as ``ARTCC''): Provided, That not more than 2 percent of such
amount is used for planning or administrative purposes:
Provided further, That at least 3 existing ARTCCs are divested
and integrated into the newly constructed ARTCC;
(8) $100,000,000 to conduct an ARTCC Realignment and
Consolidation Effort under which at least 10 existing ARTCCs are
closed or consolidated to facilitate recapitalization of ARTCC
facilities owned and operated by the Federal Aviation
Administration;
(9) $1,000,000,000 to support recapitalization and
consolidation of terminal radar approach control facilities (in
this subsection referred to as ``TRACONs''), the analysis and
identification of TRACONs for divestment, consolidation, or
integration, planning, site selection, facility acquisition, and
transition activities and other appropriate activities for
carrying out such divestment, consolidation, or integration, and
the establishment of brand new TRACONs;
(10) $350,000,000 for unstaffed infrastructure sustainment
and replacement;
(11) $50,000,000 to carry out section 961 of the FAA
Reauthorization Act of 2024;
(12) $300,000,000 to carry out section 619 of the FAA
Reauthorization Act of 2024;
(13) $50,000,000 to carry out section 621 of the FAA
Reauthorization Act of 2024 and to deploy remote tower
technology at untowered airports; and
(14) $100,000,000 for air traffic controller advanced
training technologies.
(b) Quarterly Reporting.--Not later than 180 days after the date of
enactment of this Act, and every 90 days thereafter, the Administrator
of the Federal Aviation Administration shall submit
[[Page 139 STAT. 132]]
to Congress a report that describes any expenditures under this section.
SEC. 40004. SPACE LAUNCH AND REENTRY LICENSING AND PERMITTING USER
FEES.
(a) In General.--Chapter 509 of title 51, United States Code, is
amended by adding at the end the following new section:
``Sec. 50924. Space <<NOTE: 51 USC 50924.>> launch and reentry
licensing and permitting user fees
``(a) <<NOTE: Time periods.>> Fees.--
``(1) In general.--The Secretary of Transportation shall
impose a fee, which shall be deposited in the account
established under subsection (b), on each launch or reentry
carried out under a license or permit issued under section 50904
during 2026 or a subsequent year, in an amount equal to the
lesser of--
``(A) the amount specified in paragraph (2) for the
year involved per pound of the weight of the payload; or
``(B) the amount specified in paragraph (3) for the
year involved.
``(2) Paragraph (2) specified amount.--The amount specified
in this paragraph is--
``(A) for 2026, $0.25;
``(B) for 2027, $0.35;
``(C) for 2028, $0.50;
``(D) for 2029, $0.60;
``(E) for 2030, $0.75;
``(F) for 2031, $1;
``(G) for 2032, $1.25;
``(H) for 2033, $1.50; and
``(I) for 2034 and each subsequent year, the amount
specified in this paragraph for the previous year
increased by the percentage increase in the consumer
price index for all urban consumers (all items; United
States city average) over the previous year.
``(3) Paragraph (3) specified amount.--The amount specified
in this paragraph is--
``(A) for 2026, $30,000;
``(B) for 2027, $40,000;
``(C) for 2028, $50,000;
``(D) for 2029, $75,000;
``(E) for 2030, $100,000;
``(F) for 2031, $125,000;
``(G) for 2032, $170,000;
``(H) for 2033, $200,000; and
``(I) for 2034 and each subsequent year, the amount
specified in this paragraph for the previous year
increased by the percentage increase in the consumer
price index for all urban consumers (all items; United
States city average) over the previous year.
``(b) Office of Commercial Space Transportation Launch and Reentry
Licensing and Permitting Fund.--There is established in the Treasury of
the United States a separate account, which shall be known as the
`Office of Commercial Space Transportation Launch and Reentry Licensing
and Permitting Fund', for
[[Page 139 STAT. 133]]
the purposes of expenses of the Office of Commercial Space
Transportation of the Federal Aviation Administration and to carry out
section 630(b) of the FAA Reauthorization Act of 2024. 70 percent of the
amounts deposited into the fund shall be available for such purposes and
shall be available without further appropriation and without fiscal year
limitation.''.
(b) Clerical Amendment.--The table of sections for chapter 509 of
title 51, United States Code, <<NOTE: 51 USC prec. 50901.>> is amended
by inserting after the item relating to section 50923 the following:
``50924. Space launch and reentry licensing and permitting user fees.''.
SEC. 40005. MARS MISSIONS, ARTEMIS MISSIONS, AND MOON TO MARS
PROGRAM.
(a) In General.--Chapter 203 of title 51, United States Code, is
amended by adding at the end the following:
``Sec. 20306. <<NOTE: Deadlines. 51 USC 20306.>> Special
appropriations for Mars missions, Artemis
missions, and Moon to Mars program
``(a) <<NOTE: Time periods. Expiration date.>> In General.--In
addition to amounts otherwise available, there is appropriated to the
Administration for fiscal year 2025, out of any money in the Treasury
not otherwise appropriated, $9,995,000,000, to remain available until
September 30, 2032, to use as follows:
``(1) $700,000,000, to be obligated not later than fiscal
year 2026, for the procurement, using a competitively bid, firm
fixed-price contract with a United States commercial provider
(as defined in section 50101(7)), of a high-performance Mars
telecommunications orbiter--
``(A) that--
``(i) is capable of providing robust,
continuous communications for--
``(I) a Mars sample return mission,
as described in section 432(3)(C) of the
National Aeronautics and Space
Administration Transition Authorization
Act of 2017 (51 U.S.C. 20302 note;
Public Law 115-10); and
``(II) future Mars surface, orbital,
and human exploration missions;
``(ii) supports autonomous operations, onboard
processing, and extended mission duration
capabilities; and
``(iii) is selected from among the commercial
proposals that--
``(I) received funding from the
Administration in fiscal year 2024 or
2025 for commercial design studies for
Mars Sample Return; and
``(II) proposed a separate,
independently launched Mars
telecommunication orbiter supporting an
end-to-end Mars sample return mission;
and
``(B) which shall be delivered to the Administration
not later than December 31, 2028.
``(2) $2,600,000,000 to meet the requirements of section
20302(a) using the program of record known, as of the date of
the enactment of this section, as `Gateway', and as described in
section 10811(b)(2)(B)(iv) of the National Aeronautics and Space
Administration Authorization Act of 2022 (51 U.S.C.
[[Page 139 STAT. 134]]
20302 note; Public Law 117-167), of which not less than
$750,000,000 shall be obligated for each of fiscal years 2026,
2027, and 2028.
``(3) $4,100,000,000 for expenses related to meeting the
requirements of section 10812 of the National Aeronautics and
Space Administration Authorization Act of 2022 (51 U.S.C. 20301;
Public Law 117-167) for the procurement, transportation,
integration, operation, and other necessary expenses of the
Space Launch System for Artemis Missions IV and V, of which not
less than $1,025,000,000 shall be obligated for each of fiscal
years 2026, 2027, 2028, and 2029.
``(4) $20,000,000 for expenses related to the continued
procurement of the multi-purpose crew vehicle described in
section 303 of the National Aeronautics and Space Administration
Authorization Act of 2010 (42 U.S.C. 18323), known as the
`Orion', for use with the Space Launch System on the Artemis IV
Mission and reuse in subsequent Artemis Missions, of which not
less than $20,000,000 shall be obligated not later than fiscal
year 2026.
``(5) $1,250,000,000 for expenses related to the operation
of the International Space Station and for the purpose of
meeting the requirement under section 503(a) of the National
Aeronautics and Space Administration Authorization Act of 2010
(42 U.S.C. 18353(a)), of which not less than $250,000,000 shall
be obligated for such expenses for each of fiscal years 2025,
2026, 2027, 2028, and 2029.
``(6) <<NOTE: State listing.>> $1,000,000,000 for
infrastructure improvements at the manned spaceflight centers of
the Administration, of which not less than--
``(A) $120,000,000 shall be obligated not later than
fiscal year 2026 for construction, revitalization,
recapitalization, or other infrastructure projects and
improvements at the center described in Executive Order
12641 (53 Fed. Reg. 18816; relating to designating
certain facilities of the National Aeronautics and Space
Administration in the State of Mississippi as the John
C. Stennis Space Center);
``(B) $250,000,000 shall be obligated not later than
fiscal year 2026 for construction, revitalization,
recapitalization, or other infrastructure projects and
improvements at the center described in Executive Order
11129 (28 Fed. Reg. 12787; relating to designating
certain facilities of the National Aeronautics and Space
Administration and of the Department of Defense, in the
State of Florida, as the John F. Kennedy Space Center);
``(C) $300,000,000 shall be obligated not later than
fiscal year 2026 for construction, revitalization,
recapitalization, or other infrastructure projects and
improvements at the center described in the Joint
Resolution entitled `Joint Resolution to designate the
Manned Spacecraft Center in Houston, Texas, as the
``Lyndon B. Johnson Space Center'' in honor of the late
President', approved February 17, 1973 (Public Law 93-8;
87 Stat. 7);
``(D) $100,000,000 shall be obligated not later than
fiscal year 2026 for construction, revitalization,
recapitalization, or other infrastructure projects and
improvements at the center described in Executive Order
10870 (25 Fed. Reg. 2197; relating to designating the
facilities of the
[[Page 139 STAT. 135]]
National Aeronautics and Space Administration at
Huntsville, Alabama, as the George C. Marshall Space
Flight Center);
``(E) $30,000,000 shall be obligated not later than
fiscal year 2026 for construction, revitalization,
recapitalization, or other infrastructure projects and
improvements at the Michoud Assembly Facility in New
Orleans, Louisiana; and
``(F) <<NOTE: Transfer.>> $85,000,000 shall be
obligated to carry out subsection (b), of which not less
than $5,000,000 shall be obligated for the
transportation of the space vehicle described in that
subsection, with the remainder transferred not later
than the date that is 18 months after the date of the
enactment of this section to the entity designated under
that subsection, for the purpose of construction of a
facility to house the space vehicle referred to in that
subsection.
``(7) $325,000,000 to fulfill contract number 80JSC024CA002
issued by the National Aeronautics and Space Administration on
June 26, 2024.
``(b) Space Vehicle Transfer.--
``(1) In general.--Not later than 30 days after the date of
the enactment of this section, the Administrator shall identify
a space vehicle described in paragraph (2) to be--
``(A) transferred to a field center of the
Administration that is involved in the administration of
the Commercial Crew Program (as described in section 302
of the National Aeronautics and Space Administration
Transition Authorization Act of 2017 (51 U.S.C. 50111
note; Public Law 115-10)); and
``(B) placed on public exhibition at an entity
within the Metropolitan Statistical Area where such
center is located.
``(2) Space vehicle described.--A space vehicle described in
this paragraph is a vessel that--
``(A) has flown into space;
``(B) has carried astronauts; and
``(C) is selected with the concurrence of an entity
designated by the Administrator.
``(3) Transfer.--Not later than 18 months after the date of
the enactment of this section, the space vehicle identified
under paragraph (1) shall be transferred to an entity designated
by the Administrator.
``(c) Obligation of Funds.--Funds appropriated under subsection (a)
shall be obligated as follows:
``(1) Not less than 50 percent of the total funds in
subsection (a) shall be obligated not later than September 30,
2028.
``(2) 100 percent of funds shall be obligated not later than
September 30, 2029.
``(3) All associated outlays shall occur not later than
September 30, 2034.''.
[[Page 139 STAT. 136]]
(b) Clerical Amendment.--The table of sections for chapter 203 of
title 51, United States Code, <<NOTE: 51 USC prec. 20301.>> is amended
by adding at the end the following:
``20306. Special appropriations for Mars missions, Artemis missions, and
Moon to Mars program.''.
SEC. 40006. CORPORATE AVERAGE FUEL ECONOMY CIVIL PENALTIES.
(a) In General.--Section 32912 of title 49, United States Code, is
amended--
(1) in subsection (b), in the matter preceding paragraph
(1), by striking ``$5'' and inserting ``$0.00''; and
(2) in subsection (c)(1)(B), by striking ``$10'' and
inserting ``$0.00''.
(b) <<NOTE: 49 USC 32912 note.>> Effect; Applicability.--The
amendments made by subsection (a) shall--
(1) take effect on the date of enactment of this section;
and
(2) apply to all model years of a manufacturer for which the
Secretary of Transportation has not provided a notification
pursuant to section 32903(b)(2)(B) of title 49, United States
Code, specifying the penalty due for the average fuel economy of
that manufacturer being less than the applicable standard
prescribed under section 32902 of that title.
SEC. 40007. PAYMENTS FOR LEASE OF METROPOLITAN WASHINGTON
AIRPORTS.
Section 49104(b) of title 49, United States Code, is amended to read
as follows:
``(b) <<NOTE: Time periods.>> Payments.--
``(1) In general.--Subject to paragraph (2), under the
lease, the Airports Authority must pay to the general fund of
the Treasury annually an amount, computed using the GNP Price
Deflator--
``(A) during the period from 1987 to 2026, equal to
$3,000,000 in 1987 dollars; and
``(B) for 2027 and subsequent years, equal to
$15,000,000 in 2027 dollars.
``(2) Renegotiation.--The Secretary and the Airports
Authority shall renegotiate the level of lease payments at least
once every 10 years to ensure that in no year the amount
specified in paragraph (1)(B) is less than $15,000,000 in 2027
dollars.''.
SEC. 40008. RESCISSION OF CERTAIN AMOUNTS FOR THE NATIONAL OCEANIC
AND ATMOSPHERIC ADMINISTRATION.
Any unobligated balances of amounts appropriated or otherwise made
available by sections 40001, 40002, 40003, and 40004 of Public Law 117-
169 (136 Stat. 2028) are hereby rescinded.
SEC. 40009. REDUCTION IN ANNUAL TRANSFERS TO TRAVEL PROMOTION
FUND.
Subsection (d)(2)(B) of the Travel Promotion Act of 2009 (22 U.S.C.
2131(d)(2)(B)) is amended by striking ``$100,000,000'' and inserting
``$20,000,000''.
[[Page 139 STAT. 137]]
SEC. 40010. <<NOTE: Rescission.>> TREATMENT OF UNOBLIGATED FUNDS
FOR ALTERNATIVE FUEL AND LOW-EMISSION
AVIATION TECHNOLOGY.
Out of the amounts made available by section 40007(a) of title IV of
Public Law 117-169 (49 U.S.C. 44504 note), any unobligated balances of
such amounts are hereby rescinded.
SEC. 40011. RESCISSION OF AMOUNTS APPROPRIATED TO PUBLIC WIRELESS
SUPPLY CHAIN INNOVATION FUND.
Of the unobligated balances of amounts made available under section
106(a) of the CHIPS Act of 2022 (Public Law 117-167; 136 Stat. 1392),
$850,000,000 are permanently rescinded.
TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES
Subtitle A--Oil and Gas Leasing
SEC. 50101. ONSHORE OIL AND GAS LEASING.
(a) <<NOTE: 30 USC 188 and note.>> Repeal of Inflation Reduction Act
Provisions.--
(1) Onshore oil and gas royalty rates.--Subsection (a) of
section 50262 of Public Law 117-169 <<NOTE: 30 USC 226.>> (136
Stat. 2056) is repealed, and any provision of law amended or
repealed by that subsection is restored or revived as if that
subsection had not been enacted into law.
(2) Noncompetitive leasing.--Subsection (e) of section 50262
of Public Law 117-169 <<NOTE: 30 USC 226.>> (136 Stat. 2057) is
repealed, and any provision of law amended or repealed by that
subsection is restored or revived as if that subsection had not
been enacted into law.
(b) <<NOTE: Compliance.>> Requirement to Immediately Resume Onshore
Oil and Gas Lease Sales.--
(1) <<NOTE: Time period. 30 USC 226 note.>> In general.--The
Secretary of the Interior shall immediately resume quarterly
onshore oil and gas lease sales in compliance with the Mineral
Leasing Act (30 U.S.C. 181 et seq.).
(2) Requirement.--The Secretary of the Interior shall
ensure--
(A) that any oil and gas lease sale required under
paragraph (1) is conducted immediately on completion of
all applicable scoping, public comment, and
environmental analysis requirements under the Mineral
Leasing Act (30 U.S.C. 181 et seq.) and the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.); and
(B) that the processes described in subparagraph (A)
are conducted in a timely manner to ensure compliance
with subsection (b)(1).
(3) <<NOTE: Definition.>> Lease of oil and gas lands.--
Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C.
226(b)(1)(A)), as amended by subsection (a), is amended by
inserting ``For purposes of the previous sentence, the term
`eligible lands' means all lands that are subject to leasing
under this Act and are not excluded from leasing by a statutory
prohibition, and the term `available', with respect to eligible
lands, means those lands that have been designated as open for
leasing under a land use plan developed under section 202 of the
Federal Land Policy and
[[Page 139 STAT. 138]]
Management Act of 1976 (43 U.S.C. 1712) and that have been
nominated for leasing through the submission of an expression of
interest, are subject to drainage in the absence of leasing, or
are otherwise designated as available pursuant to regulations
adopted by the Secretary.'' after ``sales are necessary.''.
(c) <<NOTE: 30 USC 226 note.>> Quarterly Lease Sales.--
(1) <<NOTE: State listing.>> In general.--In accordance with
the Mineral Leasing Act (30 U.S.C. 181 et seq.), each fiscal
year, the Secretary of the Interior shall conduct a minimum of 4
oil and gas lease sales of available land in each of the
following States:
(A) Wyoming.
(B) New Mexico.
(C) Colorado.
(D) Utah.
(E) Montana.
(F) North Dakota.
(G) Oklahoma.
(H) Nevada.
(I) Alaska.
(2) Requirement.--In conducting a lease sale under paragraph
(1) in a State described in that paragraph, the Secretary of the
Interior--
(A) shall offer not less than 50 percent of
available parcels nominated for oil and gas development
under the applicable resource management plan in effect
for relevant Bureau of Land Management resource
management areas within the applicable State; and
(B) shall not restrict the parcels offered to 1
Bureau of Land Management field office within the
applicable State unless all nominated parcels are
located within the same Bureau of Land Management field
office.
(3) Replacement sales.--The Secretary of the Interior shall
conduct a replacement sale during the same fiscal year if--
(A) a lease sale under paragraph (1) is canceled,
delayed, or deferred, including for a lack of eligible
parcels; or
(B) during a lease sale under paragraph (1) the
percentage of acreage that does not receive a bid is
equal to or greater than 25 percent of the acreage
offered.
(d) Mineral Leasing Act Reforms.--Section 17 of the Mineral Leasing
Act (30 U.S.C. 226), as amended by subsection (a), is amended--
(1) by striking the section designation and all that follows
through the end of subsection (a) and inserting the following:
``SEC. 17. LEASING OF OIL AND GAS PARCELS.
``(a) Leasing Authorized.--
``(1) <<NOTE: Deadline. Determination.>> In general.--Any
parcel of land subject to disposition under this Act that is
known or believed to contain oil or gas deposits shall be made
available for leasing, subject to paragraph (2), by the
Secretary of the Interior, not later than 18 months after the
date of receipt by the Secretary of an expression of interest in
leasing the applicable parcel of land available for disposition
under this section, if the Secretary determines that the parcel
of land is open to oil or gas leasing under the approved
resource management plan applicable to
[[Page 139 STAT. 139]]
the planning area in which the parcel of land is located that is
in effect on the date on which the expression of interest was
submitted to the Secretary (referred to in this subsection as
the `approved resource management plan').
``(2) Resource management plans.--
``(A) Lease terms and conditions.--A lease issued by
the Secretary under this section with respect to an
applicable parcel of land made available for leasing
under paragraph (1)--
``(i) shall be subject to the terms and
conditions of the approved resource management
plan; and
``(ii) may not require any stipulations or
mitigation requirements not included in the
approved resource management plan.
``(B) Effect of amendment.--The initiation of an
amendment to an approved resource management plan shall
not prevent or delay the Secretary from making the
applicable parcel of land available for leasing in
accordance with that approved resource management plan
if the other requirements of this section have been met,
as determined by the Secretary.'';
(2) in subsection (p), by adding at the end the following:
``(4) <<NOTE: Effective date.>> Term.--A permit to drill
approved under this subsection shall be valid for a single, non-
renewable 4-year period beginning on the date that the permit to
drill is approved.''; and
(3) by striking subsection (q) and inserting the following:
``(q) <<NOTE: Approval.>> Commingling of Production.--The Secretary
of the Interior shall approve applications allowing for the commingling
of production from 2 or more sources (including the area of an oil and
gas lease, the area included in a drilling spacing unit, a unit
participating area, a communitized area, or non-Federal property) before
production reaches the point of royalty measurement regardless of
ownership, the royalty rates, and the number or percentage of acres for
each source if the applicant agrees to install measurement devices for
each source, utilize an allocation method that achieves volume
measurement uncertainty levels within plus or minus 2 percent during the
production phase reported on a monthly basis, or utilize an approved
periodic well testing methodology. Production from multiple oil and gas
leases, drilling spacing units, communitized areas, or participating
areas from a single wellbore shall be considered a single source.
Nothing in this subsection shall prevent the Secretary of the Interior
from continuing the current practice of exercising discretion to
authorize higher percentage volume measurement uncertainty levels if
appropriate technical and economic justifications have been provided.''.
SEC. 50102. OFFSHORE OIL AND GAS LEASING.
(a) <<NOTE: 43 USC 1331 note.>> Lease Sales.--
(1) Gulf of america region.--
(A) In general.--Notwithstanding the 2024-2029
National Outer Continental Shelf Oil and Gas Leasing
Program (and any successor leasing program that does not
satisfy the requirements of this section), in addition
to lease sales which may be held under that program, and
except within areas subject to existing oil and gas
[[Page 139 STAT. 140]]
leasing moratoria, the Secretary of the Interior shall
conduct a minimum of 30 region-wide oil and gas lease
sales, in a manner consistent with the schedule
described in subparagraph (B), in the region identified
in the map depicting lease terms and economic conditions
accompanying the final notice of sale of the Bureau of
Ocean Energy Management entitled ``Gulf of Mexico Outer
Continental Shelf Region-Wide Oil and Gas Lease Sale
254'' (85 Fed. Reg. 8010 (February 12, 2020)).
(B) <<NOTE: Deadlines. Time periods.>> Timing
requirement.--Of the not fewer than 30 region-wide lease
sales required under this paragraph, the Secretary of
the Interior shall--
(i) hold not fewer than 1 lease sale in the
region described in subparagraph (A) by December
15, 2025;
(ii) hold not fewer than 2 lease sales in that
region in each of calendar years 2026 through
2039, 1 of which shall be held by March 15 of the
applicable calendar year and 1 of which shall be
held after March 15 but not later than August 15
of the applicable calendar year; and
(iii) hold not fewer than 1 lease sale in that
region in calendar year 2040, which shall be held
by March 15, 2040.
(2) Alaska region.--
(A) In general.--The Secretary of the Interior shall
conduct a minimum of 6 offshore lease sales, in a manner
consistent with the schedule described in subparagraph
(B), in the Cook Inlet Planning Area as identified in
the 2017-2022 Outer Continental Shelf Oil and Gas
Leasing Proposed Final Program published on November 18,
2016, by the Bureau of Ocean Energy Management (as
announced in the notice of availability of the Bureau of
Ocean Energy Management entitled ``Notice of
Availability of the 2017-2022 Outer Continental Shelf
Oil and Gas Leasing Proposed Final Program'' (81 Fed.
Reg. 84612 (November 23, 2016))).
(B) <<NOTE: Deadlines.>> Timing requirement.--Of the
not fewer than 6 lease sales required under this
paragraph, the Secretary of the Interior shall hold not
fewer than 1 lease sale in the area described in
subparagraph (A) in each of calendar years 2026 through
2028, and in each of calendar years 2030 through 2032,
by March 15 of the applicable calendar year.
(b) Requirements.--
(1) Terms and stipulations for gulf of america sales.--In
conducting lease sales under subsection (a)(1), the Secretary of
the Interior--
(A) shall, subject to subparagraph (C), offer the
same lease form, lease terms, economic conditions, and
lease stipulations 4 through 9 as contained in the final
notice of sale of the Bureau of Ocean Energy Management
entitled ``Gulf of Mexico Outer Continental Shelf
Region-Wide Oil and Gas Lease Sale 254'' (85 Fed. Reg.
8010 (February 12, 2020));
(B) <<NOTE: Update.>> may update lease stipulations
1 through 3 and 10 described in that final notice of
sale to reflect current conditions for lease sales
conducted under subsection (a)(1);
[[Page 139 STAT. 141]]
(C) shall set the royalty rate at not less than
12\1/2\ percent but not greater than 16\2/3\ percent;
and
(D) shall, for a lease in water depths of 800 meters
or deeper issued as a result of a sale, set the primary
term for 10 years.
(2) Terms and stipulations for alaska region sales.--
(A) In general.--In conducting lease sales under
subsection (a)(2), the Secretary of the Interior shall
offer the same lease form, lease terms, economic
conditions, and stipulations as contained in the final
notice of sale of the Bureau of Ocean Energy Management
entitled ``Cook Inlet Planning Area Outer Continental
Shelf Oil and Gas Lease Sale 244'' (82 Fed. Reg. 23291
(May 22, 2017)).
(B) <<NOTE: Effective date.>> Revenue sharing.--
Notwithstanding section 8(g) and section 9 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(g), 1338),
and beginning in fiscal year 2034, of the bonuses,
rents, royalties, and other revenues derived from lease
sales conducted under subsection (a)(2)--
(i) 70 percent shall be paid to the State of
Alaska; and
(ii) 30 percent shall be deposited in the
Treasury and credited to miscellaneous receipts.
(3) Area offered for lease.--
(A) Gulf of america region.--For each offshore lease
sale conducted under subsection (a)(1), the Secretary of
the Interior shall--
(i) offer not fewer than 80,000,000 acres; or
(ii) if there are fewer than 80,000,000 acres
that are unleased and available, offer all
unleased and available acres.
(B) Alaska region.--For each offshore lease sale
conducted under subsection (a)(2), the Secretary of the
Interior shall--
(i) offer not fewer than 1,000,000 acres; or
(ii) if there are fewer than 1,000,000 acres
that are unleased and available, offer all
unleased and available acres.
(c) <<NOTE: Approval. Determination.>> Offshore Commingling.--The
Secretary of the Interior shall approve a request of an operator to
commingle oil or gas production from multiple reservoirs within a single
wellbore completed on the outer Continental Shelf in the Gulf of America
Region unless the Secretary of the Interior determines that conclusive
evidence establishes that the commingling--
(1) could not be conducted by the operator in a safe manner;
or
(2) would result in an ultimate recovery from the applicable
reservoirs to be reduced in comparison to the expected recovery
of those reservoirs if they had not been commingled.
(d) Offshore Oil and Gas Royalty Rate.--
(1) <<NOTE: 43 USC 1337 and note.>> Repeal.--Section 50261
of Public Law 117-169 (136 Stat. 2056) is repealed, and any
provision of law amended or repealed by that section is restored
or revived as if that section had not been enacted into law.
(2) Royalty rate.--Section 8(a)(1) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(1)) (as amended by paragraph
(1)) is amended--
[[Page 139 STAT. 142]]
(A) in subparagraph (A), by striking ``not less than
12\1/2\ per centum'' and inserting ``not less than 12\1/
2\ percent, but not more than 16\2/3\ percent,'';
(B) in subparagraph (C), by striking ``not less than
12\1/2\ per centum'' and inserting ``not less than 12\1/
2\ percent, but not more than 16\2/3\ percent,'';
(C) in subparagraph (F), by striking ``no less than
12\1/2\ per centum'' and inserting ``not less than 12\1/
2\ percent, but not more than 16\2/3\ percent,''; and
(D) in subparagraph (H), by striking ``no less than
12 and \1/2\ per centum'' and inserting ``not less than
12\1/2\ percent, but not more than 16\2/3\ percent,''.
(e) Limitations on Amount of Distributed Qualified Outer Continental
Shelf Revenues.--Section 105(f)(1) of the Gulf of Mexico Energy Security
Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking ``2055.'' and inserting
``2024;''; and
(3) by adding at the end the following:
``(D) $650,000,000 for each of fiscal years 2025
through 2034; and
``(E) $500,000,000 for each of fiscal years 2035
through 2055.''.
SEC. 50103. <<NOTE: Repeal.>> ROYALTIES ON EXTRACTED METHANE.
Section 50263 of Public Law 117-169 (30 U.S.C. 1727) is repealed.
SEC. 50104. <<NOTE: 16 USC 3143 note.>> ALASKA OIL AND GAS
LEASING.
(a) Definitions.--In this section:
(1) Coastal plain.--The term ``Coastal Plain'' has the
meaning given the term in section 20001(a) of Public Law 115-97
(16 U.S.C. 3143 note).
(2) Oil and gas program.--The term ``oil and gas program''
means the oil and gas program established under section
20001(b)(2) of Public Law 115-97 (16 U.S.C. 3143 note).
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Bureau of Land Management.
(b) Lease Sales Required.--
(1) <<NOTE: Deadline.>> In general.--Subject to paragraph
(3), in addition to the lease sales required under section
20001(c)(1)(A) of Public Law 115-97 (16 U.S.C. 3143 note), the
Secretary shall conduct not fewer than 4 lease sales area-wide
under the oil and gas program by not later than 10 years after
the date of enactment of this Act.
(2) Terms and conditions.--In conducting lease sales under
paragraph (1), the Secretary shall offer the same terms and
conditions as contained in the record of decision described in
the notice of availability of the Bureau of Land Management
entitled ``Notice of Availability of the Record of Decision for
the Final Environmental Impact Statement for the Coastal Plain
Oil and Gas Leasing Program, Alaska'' (85 Fed. Reg. 51754
(August 21, 2020)).
(3) Sale acreages; schedule.--
(A) Acreages.--In conducting the lease sales
required under paragraph (1), the Secretary shall offer
for lease under the oil and gas program--
[[Page 139 STAT. 143]]
(i) not fewer than 400,000 acres area-wide in
each lease sale; and
(ii) those areas that have the highest
potential for the discovery of hydrocarbons.
(B) <<NOTE: Deadlines.>> Schedule.--The Secretary
shall offer--
(i) the initial lease sale under paragraph (1)
not later than 1 year after the date of enactment
of this Act;
(ii) a second lease sale under paragraph (1)
not later than 3 years after the date of enactment
of this Act;
(iii) a third lease sale under paragraph (1)
not later than 5 years after the date of enactment
of this Act; and
(iv) a fourth lease sale under paragraph (1)
not later than 7 years after the date of enactment
of this Act.
(4) <<NOTE: Applicability.>> Rights-of-way.--Section
20001(c)(2) of Public Law 115-97 (16 U.S.C. 3143 note) shall
apply to leases awarded under this subsection.
(5) <<NOTE: Applicability.>> Surface development.--Section
20001(c)(3) of Public Law 115-97 (16 U.S.C. 3143 note) shall
apply to leases awarded under this subsection.
(c) <<NOTE: Time periods.>> Receipts.--Notwithstanding section 35 of
the Mineral Leasing Act (30 U.S.C. 191) and section 20001(b)(5) of
Public Law 115-97 (16 U.S.C. 3143 note), of the amount of adjusted
bonus, rental, and royalty receipts derived from the oil and gas program
and operations on the Coastal Plain pursuant to this section--
(1)(A) for each of fiscal years 2025 through 2033, 50
percent shall be paid to the State of Alaska; and
(B) for fiscal year 2034 and each fiscal year thereafter, 70
percent shall be paid to the State of Alaska; and
(2) the balance shall be deposited into the Treasury as
miscellaneous receipts.
SEC. 50105. NATIONAL PETROLEUM RESERVE-ALASKA.
(a) <<NOTE: 42 USC 6506a note.>> Definitions.--In this section:
(1) NPR-A final environmental impact statement.--The term
``NPR-A final environmental impact statement'' means the final
environmental impact statement published by the Bureau of Land
Management entitled ``National Petroleum Reserve in Alaska
Integrated Activity Plan Final Environmental Impact Statement''
and dated June 2020, including the errata sheet dated October 6,
2020, and excluding the errata sheet dated September 20, 2022.
(2) NPR-A record of decision.--The term ``NPR-A record of
decision'' means the record of decision published by the Bureau
of Land Management entitled ``National Petroleum Reserve in
Alaska Integrated Activity Plan Record of Decision'' and dated
December 2020.
(3) Program.--The term ``Program'' means the competitive oil
and gas leasing, exploration, development, and production
program established under section 107 of the Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C. 6506a).
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
[[Page 139 STAT. 144]]
(b) Restoration of NPR-A Oil and Gas Leasing Program.--Effective
beginning <<NOTE: Effective date.>> on the date of enactment of this
Act, the Secretary shall expeditiously restore and resume oil and gas
lease sales under the Program for domestic energy production and Federal
revenue in the areas designated for oil and gas leasing as described in
the NPR-A final environmental impact statement and the NPR-A record of
decision.
(c) <<NOTE: Deadlines.>> Resumption of NPR-A Lease Sales.--
(1) In general.--Subject to paragraph (2), the Secretary
shall conduct not fewer than 5 lease sales under the Program by
not later than 10 years after the date of enactment of this Act.
(2) Sales acreages; schedule.--
(A) Acreages.--In conducting the lease sales
required under paragraph (1), the Secretary shall offer
not fewer than 4,000,000 acres in each lease sale.
(B) Schedule.--The Secretary shall offer--
(i) an initial lease sale under paragraph (1)
not later than 1 year after the date of enactment
of this Act; and
(ii) an additional lease sale under paragraph
(1) not later than every 2 years after the date of
enactment of this Act.
(d) Terms and Stipulations for NPR-A Lease Sales.--In conducting
lease sales under subsection (c), the Secretary shall offer the same
lease form, lease terms, economic conditions, and stipulations as
described in the NPR-A final environmental impact statement and the NPR-
A record of decision.
(e) Receipts.--Section 107(l) of the Naval Petroleum Reserves
Production Act of 1976 (42 U.S.C. 6506a(l)) is amended--
(1) by striking ``All receipts from'' and inserting the
following:
``(1) In general.--Except as provided in paragraph (2), all
receipts from''; and
(2) by adding at the end the following:
``(2) Percent share for fiscal year 2034 and thereafter.--
Beginning <<NOTE: Effective date.>> in fiscal year 2034, of the
receipts from sales, rentals, bonuses, and royalties on leases
issued pursuant to this section after the date of enactment of
the Act entitled `An Act to provide for reconciliation pursuant
to title II of H. Con. Res. 14' (119th Congress)--
``(A) 70 percent shall be paid to the State of
Alaska; and
``(B) 30 percent shall be paid into the Treasury of
the United States.''.
Subtitle B--Mining
SEC. 50201. COAL LEASING.
(a) Definitions.--In this section:
(1) Coal lease.--The term ``coal lease'' means a lease
entered into by the United States as lessor, through the Bureau
of Land Management, and an applicant on Bureau of Land
Management Form 3400-012 (or a successor form that contains the
terms of a coal lease).
[[Page 139 STAT. 145]]
(2) Qualified application.--The term ``qualified
application'' means an application for a coal lease pending as
of the date of enactment of this Act or submitted within 90 days
thereafter under the lease by application program administered
by the Bureau of Land Management pursuant to the Mineral Leasing
Act (30 U.S.C. 181 et seq.) for which any required environmental
review has commenced or the Director of the Bureau of Land
Management determines can commence within 90 days after
receiving the application.
(b) <<NOTE: Deadline.>> Coal Leasing Activities.--Not later than 90
days after the date of enactment of this Act, the Secretary of the
Interior--
(1) shall--
(A) with respect to each qualified application--
(i) <<NOTE: Publication.>> if not previously
published for public comment, publish any required
environmental review;
(ii) establish the fair market value of the
applicable coal tract;
(iii) hold a lease sale with respect to the
applicable coal tract; and
(iv) identify the highest bidder at or above
the fair market value and take all other
intermediate actions necessary to identify the
winning bidder and grant the qualified
application; and
(2) may--
(A) with respect to a previously issued coal lease,
grant any additional approvals of the Department of the
Interior required for mining activities to commence; and
(B) after completing the actions required by clauses
(i) through (iv) of paragraph (1)(A), grant the
qualified application and issue the applicable lease to
the person that submitted the qualified application if
that person submitted the winning bid in the lease sale
held under clause (iii) of paragraph (1)(A).
SEC. 50202. COAL ROYALTY.
(a) Rate.-- <<NOTE: Time period.>> Section 7(a) of the Mineral
Leasing Act (30 U.S.C. 207(a)) is amended, in the fourth sentence, by
striking ``12\1/2\ per centum'' and inserting ``12\1/2\ percent, except
such amount shall be not more than 7 percent during the period that
begins on the date of enactment of the Act entitled `An Act to provide
for reconciliation pursuant to title II of H. Con. Res. 14' (119th
Congress) and ends September 30, 2034,''.
(b) <<NOTE: 30 USC 207 note.>> Applicability to Existing Leases.--
The amendment made by subsection (a) shall apply to a coal lease--
(1) issued under section 2 of the Mineral Leasing Act (30
U.S.C. 201) before, on, or after the date of the enactment of
this Act; and
(2) that has not been terminated.
(c) <<NOTE: 30 USC 207 note.>> Advance Royalties.--With respect to a
lease issued under section 2 of the Mineral Leasing Act (30 U.S.C. 201)
for which the lessee has paid advance royalties under section 7(b) of
that Act (30 U.S.C. 207(b)), the Secretary of the Interior shall provide
to the lessee a credit for the difference between the amount paid by the
lessee in advance royalties for the lease before the date of the
enactment of this Act and the amount the lessee would have been required
to pay if the amendment made by subsection
[[Page 139 STAT. 146]]
(a) had been made before the lessee paid advance royalties for the
lease.
SEC. 50203. <<NOTE: 30 USC 201 note.>> LEASES FOR KNOWN
RECOVERABLE COAL RESOURCES.
Notwithstanding <<NOTE: Deadline.>> section 2(a)(3)(A) of the
Mineral Leasing Act (30 U.S.C. 201(a)(3)(A)) and section 202(a) of the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712(a)), not
later than 90 days after the date of enactment of this Act, the
Secretary of the Interior shall make available for lease known
recoverable coal resources of not less than 4,000,000 additional acres
on Federal land located in the 48 contiguous States and Alaska subject
to the jurisdiction of the Secretary, but which shall not include any
Federal land within--
(1) a National Monument;
(2) a National Recreation Area;
(3) a component of the National Wilderness Preservation
System;
(4) a component of the National Wild and Scenic Rivers
System;
(5) a component of the National Trails System;
(6) a National Conservation Area;
(7) a unit of the National Wildlife Refuge System;
(8) a unit of the National Fish Hatchery System; or
(9) a unit of the National Park System.
SEC. 50204. <<NOTE: 30 USC 201 note.>> AUTHORIZATION TO MINE
FEDERAL COAL.
(a) Authorization.--In order to provide access to coal reserves in
adjacent State or private land that without an authorization could not
be mined economically, Federal coal reserves located in Federal land
subject to a mining plan previously approved by the Secretary of the
Interior as of the date of enactment of this Act and adjacent to coal
reserves in adjacent State or private land are authorized to be mined.
(b) <<NOTE: Deadline.>> Requirement.--Not later than 90 days after
the date of enactment of this Act, the Secretary of the Interior shall,
without substantial modification, take such steps as are necessary to
authorize the mining of Federal land described in subsection (a).
(c) NEPA.--Nothing in this section shall prevent a review under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
Subtitle C--Lands
SEC. 50301. <<NOTE: Time periods.>> TIMBER SALES AND LONG-TERM
CONTRACTING FOR THE FOREST SERVICE AND
THE BUREAU OF LAND MANAGEMENT.
(a) <<NOTE: 16 USC 472a note.>> Forest Service.--
(1) Definitions.--In this subsection:
(A) Forest plan.--The term ``forest plan'' means a
land and resource management plan prepared by the
Secretary for a unit of the National Forest System
pursuant to section 6 of the Forest and Rangeland
Renewable Resources Planning Act of 1974 (16 U.S.C.
1604).
(B) National forest system.--
(i) In general.--The term ``National Forest
System'' means land of the National Forest System
(as defined in section 11(a) of the Forest and
Rangeland
[[Page 139 STAT. 147]]
Renewable Resources Planning Act of 1974 (16
U.S.C. 1609(a))) administered by the Secretary.
(ii) Exclusions.--The term ``National Forest
System'' does not include any forest reserve not
created from the public domain.
(C) Secretary.--The term ``Secretary'' means the
Secretary of Agriculture, acting through the Chief of
the Forest Service.
(2) Timber sales on public domain forest reserves.--
(A) In general.--For each of fiscal years 2026
through 2034, the Secretary shall sell timber annually
on National Forest System land in a total quantity that
is not less than 250,000,000 board-feet greater than the
quantity of board-feet sold in the previous fiscal year.
(B) Limitation.--The timber sales under subparagraph
(A) shall be subject to the maximum allowable sale
quantity of timber or the projected timber sale quantity
under the applicable forest plan in effect on the date
of enactment of this Act.
(3) Long-term contracting for the forest service.--
(A) Long-term contracting.--For the period of fiscal
years 2025 through 2034, the Secretary shall enter into
not fewer than 40 long-term timber sale contracts with
private persons or other public or private entities
under subsection (a) of section 14 of the National
Forest Management Act of 1976 (16 U.S.C. 472a) for the
sale of national forest materials (as defined in
subsection (e)(1) of that section) in the National
Forest System.
(B) Contract length.--The period of a timber sale
contract entered into to meet the requirement under
subparagraph (A) shall be not less than 20 years, with
options for extensions or renewals, as determined by the
Secretary.
(C) Receipts.--Any monies derived from a timber sale
contract entered into to meet the requirements under
subparagraphs (A) and (B) shall be deposited in the
general fund of the Treasury.
(b) <<NOTE: 43 USC 1701 note.>> Bureau of Land Management.--
(1) Definitions.--In this subsection:
(A) Public lands.--The term ``public lands'' has the
meaning given the term in section 103 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1702).
(B) Resource management plan.--The term ``resource
management plan'' means a land use plan prepared for
public lands under section 202 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1712).
(C) Secretary.--The term ``Secretary'' means the
Secretary of the Interior, acting through the Director
of the Bureau of Land Management.
(2) Timber sales on public lands.--
(A) In general.--For each of fiscal years 2026
through 2034, the Secretary shall sell timber annually
on public lands in a total quantity that is not less
than 20,000,000 board-feet greater than the quantity of
board-feet sold in the previous fiscal year.
[[Page 139 STAT. 148]]
(B) Limitation.--The timber sales under subparagraph
(A) shall be subject to the applicable resource
management plan in effect on the date of enactment of
this Act.
(3) Long-term contracting for the bureau of land
management.--
(A) Long-term contracting.--For the period of fiscal
years 2025 through 2034, the Secretary shall enter into
not fewer than 5 long-term contracts with private
persons or other public or private entities under
section 1 of the Act of July 31, 1947 (commonly known as
the ``Materials Act of 1947'') (61 Stat. 681, chapter
406; 30 U.S.C. 601), for the disposal of vegetative
materials described in that section on public lands.
(B) Contract length.--The period of a contract
entered into to meet the requirement under subparagraph
(A) shall be not less than 20 years, with options for
extensions or renewals, as determined by the Secretary.
(C) Receipts.--Any monies derived from a contract
entered into to meet the requirements under
subparagraphs (A) and (B) shall be deposited in the
general fund of the Treasury.
SEC. 50302. <<NOTE: 43 USC 3007.>> RENEWABLE ENERGY FEES ON
FEDERAL LAND.
(a) Definitions.--In this section:
(1) Annual adjustment factor.--The term ``Annual Adjustment
Factor'' means 3 percent.
(2) Encumbrance factor.--The term ``Encumbrance Factor''
means--
(A) 100 percent for a solar energy generation
facility; and
(B) an amount determined by the Secretary, but not
less than 10 percent for a wind energy generation
facility.
(3) National forest system.--
(A) In general.--The term ``National Forest System''
means land of the National Forest System (as defined in
section 11(a) of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1609(a)))
administered by the Secretary of Agriculture.
(B) Exclusion.--The term ``National Forest System''
does not include any forest reserve not created from the
public domain.
(4) Per-acre rate.--The term ``Per-Acre Rate'', with respect
to a right-of-way, means the average of the per-acre pastureland
rental rates published in the Cash Rents Survey by the National
Agricultural Statistics Service for the State in which the
right-of-way is located over the 5 calendar-year period
preceding the issuance or renewal of the right-of-way.
(5) Project.--The term ``project'' means a system described
in section 2801.9(a)(4) of title 43, Code of Federal Regulations
(as in effect on the date of enactment of this Act).
(6) Public land.--The term ``public land'' means--
(A) public lands (as defined in section 103 of the
Federal Land Policy and Management Act of 1976 (43
U.S.C. 1702)); and
(B) National Forest System land.
[[Page 139 STAT. 149]]
(7) Renewable energy project.--The term ``renewable energy
project'' means a project located on public land that uses wind
or solar energy to generate energy.
(8) Right-of-way.--The term ``right-of-way'' has the meaning
given the term in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702).
(9) Secretary.--The term ``Secretary'' means--
(A) the Secretary of the Interior, with respect to
land controlled or administered by the Secretary of the
Interior; and
(B) the Secretary of Agriculture, with respect to
National Forest System land.
(b) Acreage Rent for Wind and Solar Rights-of-way.--
(1) <<NOTE: Deadlines.>> In general.--Pursuant to section
504(g) of the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1764(g)), the Secretary shall, subject to paragraph (3)
and not later than January 1 of each calendar year, collect from
the holder of a right-of-way for a renewable energy project an
acreage rent in an amount determined by the equation described
in paragraph (2).
(2) Calculation of acreage rent rate.--
(A) Equation.--The amount of an acreage rent
collected under paragraph (1) shall be determined using
the following equation: Acreage rent = A <dbl-dagger> B
<dbl-dagger> ((1 + C)\D\)).
(B) Definitions.--For purposes of the equation
described in subparagraph (A):
(i) The letter ``A'' means the Per-Acre Rate.
(ii) The letter ``B'' means the Encumbrance
Factor.
(iii) The letter ``C'' means the Annual
Adjustment Factor.
(iv) The letter ``D'' means the year in the
term of the right-of-way.
(3) Payment until production.--The holder of a right-of-way
for a renewable energy project shall pay an acreage rent
collected under paragraph (1) until the date on which energy
generation begins.
(c) Capacity Fees.--
(1) In general.--The Secretary shall, subject to paragraph
(3), annually collect a capacity fee from the holder of a right-
of-way for a renewable energy project based on the amount
described in paragraph (2).
(2) Calculation of capacity fee.--The amount of a capacity
fee collected under paragraph (1) shall be equal to the greater
of--
(A) an amount equal to the acreage rent described in
subsection (b); and
(B) 3.9 percent of the gross proceeds from the sale
of electricity produced by the renewable energy project.
(3) Multiple-use reduction factor.--
(A) Application.--The holder of a right-of-way for a
wind energy generation project may request that the
Secretary apply a multiple-use reduction factor of 10-
percent to the amount of a capacity fee determined under
paragraph (2) by submitting to the Secretary an
application at such time, in such manner, and containing
such information as the Secretary may require.
[[Page 139 STAT. 150]]
(B) Approval.--The Secretary may approve an
application submitted under subparagraph (A) only if not
less than 25 percent of the land within the area of the
right-of-way is authorized for use, occupancy, or
development with respect to an activity other than the
generation of wind energy for the entirety of the year
in which the capacity fee is collected.
(C) Late determination.--
(i) <<NOTE: Applicability. Effective
date. Time periods.>> In general.--If the
Secretary approves an application under
subparagraph (B) for a wind energy generation
project after the date on which the holder of the
right-of-way for the project begins paying a
capacity fee, the Secretary shall apply the
multiple-use reduction factor described in
subparagraph (A) to the capacity fee for the first
year beginning after the date of approval and each
year thereafter for the period during which the
right-of-way remains in effect.
(ii) Refund.--The Secretary may not refund the
holder of a right-of-way for the difference in the
amount of a capacity fee paid in a previous year.
(d) <<NOTE: Deadlines.>> Late Payment Fee; Termination.--
(1) In general.--The Secretary may charge the holder of a
right-of-way for a renewable energy project a late payment fee
if the Secretary does not receive payment for the acreage rent
under subsection (b) or the capacity fee under subsection (c) by
the date that is 15 days after the date on which the payment was
due.
(2) Termination of right-of-way.--The Secretary may
terminate a right-of-way for a renewable energy project if the
Secretary does not receive payment for the acreage rent under
subsection (b) or the capacity fee under subsection (c) by the
date that is 90 days after the date on which the payment was
due.
SEC. 50303. <<NOTE: 43 USC 3008.>> RENEWABLE ENERGY REVENUE
SHARING.
(a) Definitions.--In this section:
(1) County.--The term ``county'' includes a parish,
township, borough, and any other similar, independent unit of
local government.
(2) Covered land.--The term ``covered land'' means land that
is--
(A) public land administered by the Secretary; and
(B) not excluded from the development of solar or
wind energy under--
(i) a land use plan; or
(ii) other Federal law.
(3) National forest system.--
(A) In general.--The term ``National Forest System''
means land of the National Forest System (as defined in
section 11(a) of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1609(a)))
administered by the Secretary of Agriculture.
(B) Exclusion.--The term ``National Forest System''
does not include any forest reserve not created from the
public domain.
(4) Public land.--The term ``public land'' means--
[[Page 139 STAT. 151]]
(A) public lands (as defined in section 103 of the
Federal Land Policy and Management Act of 1976 (43
U.S.C. 1702)); and
(B) National Forest System land.
(5) Renewable energy project.--The term ``renewable energy
project'' means a system described in section 2801.9(a)(4) of
title 43, Code of Federal Regulations (as in effect on the date
of enactment of this Act), located on covered land that uses
wind or solar energy to generate energy.
(6) Secretary.--The term ``Secretary'' means--
(A) the Secretary of the Interior, with respect to
land controlled or administered by the Secretary of the
Interior; and
(B) the Secretary of Agriculture, with respect to
National Forest System land.
(b) Disposition of Revenue.--
(1) <<NOTE: Effective date.>> Disposition of revenues.--
Beginning on January 1, 2026, the amounts collected from a
renewable energy project as bonus bids, rentals, fees, or other
payments under a right-of-way, permit, lease, or other
authorization shall--
(A) be deposited in the general fund of the
Treasury; and
(B) <<NOTE: Allocations.>> without further
appropriation or fiscal year limitation, be allocated as
follows:
(i) 25 percent shall be paid from amounts in
the general fund of the Treasury to the State
within the boundaries of which the revenue is
derived.
(ii) 25 percent shall be paid from amounts in
the general fund of the Treasury to each county in
a State within the boundaries of which the revenue
is derived, to be allocated among each applicable
county based on the percentage of county land from
which the revenue is derived.
(2) Payments to states and counties.--
(A) In general.--Amounts paid to States and counties
under paragraph (1) shall be used in accordance with the
requirements of section 35 of the Mineral Leasing Act
(30 U.S.C. 191).
(B) Payments in lieu of taxes.--A payment to a
county under paragraph (1) shall be in addition to a
payment in lieu of taxes received by the county under
chapter 69 of title 31, United States Code.
(C) Timing.--The amounts required to be paid under
paragraph (1)(B) for an applicable fiscal year shall be
made available in the fiscal year that immediately
follows the fiscal year for which the amounts were
collected.
SEC. 50304. RESCISSION OF NATIONAL PARK SERVICE AND BUREAU OF LAND
MANAGEMENT FUNDS.
There are rescinded the unobligated balances of amounts made
available by the following sections of Public Law 117-169 (commonly
known as the ``Inflation Reduction Act of 2022'') (136 Stat. 1818):
(1) Section 50221 (136 Stat. 2052).
(2) Section 50222 (136 Stat. 2052).
(3) Section 50223 (136 Stat. 2052).
[[Page 139 STAT. 152]]
SEC. 50305. <<NOTE: Appropriation authorization. Time
period. Expiration date.>> CELEBRATING
AMERICA'S 250TH ANNIVERSARY.
In addition to amounts otherwise available, there is appropriated to
the Secretary of the Interior (acting through the Director of the
National Park Service) for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, $150,000,000 for events,
celebrations, and activities surrounding the observance and
commemoration of the 250th anniversary of the founding of the United
States, to remain available through fiscal year 2028.
Subtitle D--Energy
SEC. 50401. STRATEGIC PETROLEUM RESERVE.
(a) Energy Policy and Conservation Act Definitions.--In this
section, the terms ``related facility'', ``storage facility'', and
``Strategic Petroleum Reserve'' have the meanings given those terms in
section 152 of the Energy Policy and Conservation Act (42 U.S.C. 6232).
(b) <<NOTE: Time period. Expiration date.>> Appropriations.--In
addition to amounts otherwise available, there is appropriated to the
Department of Energy for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, to remain available until September
30, 2029--
(1) $218,000,000 for maintenance of, including repairs to,
storage facilities and related facilities of the Strategic
Petroleum Reserve; and
(2) $171,000,000 to acquire, by purchase, petroleum products
for storage in the Strategic Petroleum Reserve.
(c) Repeal of Strategic Petroleum Reserve Drawdown and Sale
Mandate.--Section 20003 of Public Law 115-97 (42 U.S.C. 6241 note) is
repealed.
SEC. 50402. REPEALS; RESCISSIONS.
(a) Repeal and Rescission.--Section 50142 of Public Law 117-169 (136
Stat. 2044) (commonly known as the ``Inflation Reduction Act of 2022'')
is repealed and the unobligated balance of amounts made available under
that section (as in effect on the day before the date of enactment of
this Act) is rescinded.
(b) Rescissions.--
(1) In general.--The unobligated balances of amounts made
available under the sections described in paragraph (2) are
rescinded.
(2) Sections described.--The sections referred to in
paragraph (1) are the following sections of Public Law 117-169
(commonly known as the ``Inflation Reduction Act of 2022''):
(A) Section 50123 (42 U.S.C. 18795b).
(B) Section 50141 (136 Stat. 2042).
(C) Section 50144 (136 Stat. 2044).
(D) Section 50145 (136 Stat. 2045).
(E) Section 50151 (42 U.S.C. 18715).
(F) Section 50152 (42 U.S.C. 18715a).
(G) Section 50153 (42 U.S.C. 18715b).
(H) Section 50161 (42 U.S.C. 17113b).
SEC. 50403. ENERGY DOMINANCE FINANCING.
(a) In General.--Section 1706 of the Energy Policy Act of 2005 (42
U.S.C. 16517) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``or'' at the end;
[[Page 139 STAT. 153]]
(B) in paragraph (2), by striking ``avoid'' and all
that follows through the period at the end and inserting
``increase capacity or output; or''; and
(C) by adding at the end the following:
``(3) support or enable the provision of known or
forecastable electric supply at time intervals necessary to
maintain or enhance grid reliability or other system adequacy
needs.'';
(2) by striking subsection (c);
(3) by redesignating subsections (d) through (f) as
subsections (c) through (e), respectively;
(4) in subsection (c) (as so redesignated)--
(A) in paragraph (1), by adding ``and'' at the end;
(B) by striking paragraph (2); and
(C) by redesignating paragraph (3) as paragraph (2);
(5) in subsection (e) (as so redesignated), by striking
``for--'' in the matter preceding paragraph (1) and all that
follows through the period at the end of paragraph (2) and
inserting ``for enabling the identification, leasing,
development, production, processing, transportation,
transmission, refining, and generation needed for energy and
critical minerals.''; and
(6) by adding at the end the following:
``(f) Funding.--
``(1) <<NOTE: Time period. Expiration date.>> In general.--
In addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2025, out of any
money in the Treasury not otherwise appropriated,
$1,000,000,000, to remain available through September 30, 2028,
to carry out activities under this section.
``(2) Administrative costs.--Of the amount made available
under paragraph (1), the Secretary shall use not more than 3
percent for administrative expenses.''.
(b) Commitment Authority.--Section 50144(b) of Public Law 117-169
(commonly known as the ``Inflation Reduction Act of 2022'') (136 Stat.
2045) is amended by striking ``2026'' and inserting ``2028''.
SEC. 50404. <<NOTE: 15 USC 9461 note.>> TRANSFORMATIONAL
ARTIFICIAL INTELLIGENCE MODELS.
(a) Definitions.--In this section:
(1) American science cloud.--The term ``American science
cloud'' means a system of United States government, academic,
and private sector programs and infrastructures utilizing cloud
computing technologies to facilitate and support scientific
research, data sharing, and computational analysis across
various disciplines while ensuring compliance with applicable
legal, regulatory, and privacy standards.
(2) Artificial intelligence.--The term ``artificial
intelligence'' has the meaning given the term in section 5002 of
the National Artificial Intelligence Initiative Act of 2020 (15
U.S.C. 9401).
(b) Transformational Models.--The Secretary of Energy shall--
(1) mobilize National Laboratories to partner with industry
sectors within the United States to curate the scientific data
of the Department of Energy across the National Laboratory
complex so that the data is structured, cleaned, and
preprocessed in a way that makes it suitable for use in
artificial intelligence and machine learning models; and
[[Page 139 STAT. 154]]
(2) initiate seed efforts for self-improving artificial
intelligence models for science and engineering powered by the
data described in paragraph (1).
(c) Uses.--
(1) Microelectronics.--The curated data described in
subsection (b)(1) may be used to rapidly develop next-generation
microelectronics that have greater capabilities beyond Moore's
law while requiring lower energy consumption.
(2) New energy technologies.--The artificial intelligence
models developed under subsection (b)(2) shall be provided to
the scientific community through the American science cloud to
accelerate innovation in discovery science and engineering for
new energy technologies.
(d) Appropriations.--There is appropriated, out of any funds in the
Treasury not otherwise appropriated, $150,000,000, to remain available
through September 30, 2026, to carry out this section.
Subtitle E--Water
SEC. 50501. <<NOTE: Appropriation authorization. Time
period. Expiration date.>> WATER
CONVEYANCE AND SURFACE WATER STORAGE
ENHANCEMENT.
In addition to amounts otherwise available, there is appropriated to
the Secretary of the Interior, acting through the Commissioner of
Reclamation, for fiscal year 2025, out of any funds in the Treasury not
otherwise appropriated, $1,000,000,000, to remain available through
September 30, 2034, for construction and associated activities that
restore or increase the capacity or use of existing conveyance
facilities constructed by the Bureau of Reclamation or for construction
and associated activities that increase the capacity of existing Bureau
of Reclamation surface water storage facilities, in a manner as
determined by the Secretary of the Interior, acting through the
Commissioner of Reclamation: Provided, That,
for <<NOTE: Contracts.>> the purposes of section 203 of the Reclamation
Reform Act of 1982 (43 U.S.C. 390cc) or section 3404(a) of the
Reclamation Projects Authorization and Adjustment Act of 1992 (Public
Law 102-575; 106 Stat. 4708), a contract or agreement entered into
pursuant to this section shall not be treated as a new or amended
contract: Provided further, That none of the funds provided under this
section shall be reimbursable or subject to matching or cost-sharing
requirements.
TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS
SEC. 60001. RESCISSION OF FUNDING FOR CLEAN HEAVY-DUTY VEHICLES.
The unobligated balances of amounts made available to carry out
section 132 of the Clean Air Act (42 U.S.C. 7432) are rescinded.
SEC. 60002. <<NOTE: Rescission.>> REPEAL OF GREENHOUSE GAS
REDUCTION FUND.
Section 134 of the Clean Air Act (42 U.S.C. 7434) is repealed and
the unobligated balances of amounts made available to carry out that
section (as in effect on the day before the date of enactment of this
Act) are rescinded.
[[Page 139 STAT. 155]]
SEC. 60003. RESCISSION OF FUNDING FOR DIESEL EMISSIONS REDUCTIONS.
The unobligated balances of amounts made available to carry out
section 60104 of Public Law 117-169 (136 Stat. 2067) are rescinded.
SEC. 60004. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION.
The unobligated balances of amounts made available to carry out
section 60105 of Public Law 117-169 (136 Stat. 2067) are rescinded.
SEC. 60005. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION AT
SCHOOLS.
The unobligated balances of amounts made available to carry out
section 60106 of Public Law 117-169 (136 Stat. 2069) are rescinded.
SEC. 60006. RESCISSION OF FUNDING FOR THE LOW EMISSIONS
ELECTRICITY PROGRAM.
The unobligated balances of amounts made available to carry out
section 135 of the Clean Air Act (42 U.S.C. 7435) are rescinded.
SEC. 60007. RESCISSION OF FUNDING FOR SECTION 211(O) OF THE CLEAN
AIR ACT.
The unobligated balances of amounts made available to carry out
section 60108 of Public Law 117-169 (136 Stat. 2070) are rescinded.
SEC. 60008. RESCISSION OF FUNDING FOR IMPLEMENTATION OF THE
AMERICAN INNOVATION AND MANUFACTURING
ACT.
The unobligated balances of amounts made available to carry out
section 60109 of Public Law 117-169 (136 Stat. 2071) are rescinded.
SEC. 60009. RESCISSION OF FUNDING FOR ENFORCEMENT TECHNOLOGY AND
PUBLIC INFORMATION.
The unobligated balances of amounts made available to carry out
section 60110 of Public Law 117-169 (136 Stat. 2071) are rescinded.
SEC. 60010. RESCISSION OF FUNDING FOR GREENHOUSE GAS CORPORATE
REPORTING.
The unobligated balances of amounts made available to carry out
section 60111 of Public Law 117-169 (136 Stat. 2072) are rescinded.
SEC. 60011. RESCISSION OF FUNDING FOR ENVIRONMENTAL PRODUCT
DECLARATION ASSISTANCE.
The unobligated balances of amounts made available to carry out
section 60112 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat.
2072) are rescinded.
SEC. 60012. RESCISSION OF FUNDING FOR METHANE EMISSIONS AND WASTE
REDUCTION INCENTIVE PROGRAM FOR
PETROLEUM AND NATURAL GAS SYSTEMS.
(a) Rescission.--The unobligated balances of amounts made available
to carry out subsections (a) and (b) of section 136 of the Clean Air Act
(42 U.S.C. 7436) are rescinded.
[[Page 139 STAT. 156]]
(b) Period.--Section 136(g) of the Clean Air Act (42 U.S.C. 7436(g))
is amended by striking ``calendar year 2024'' and inserting ``calendar
year 2034''.
SEC. 60013. RESCISSION OF FUNDING FOR GREENHOUSE GAS AIR POLLUTION
PLANS AND IMPLEMENTATION GRANTS.
The unobligated balances of amounts made available to carry out
section 137 of the Clean Air Act (42 U.S.C. 7437) are rescinded.
SEC. 60014. RESCISSION OF FUNDING FOR ENVIRONMENTAL PROTECTION
AGENCY EFFICIENT, ACCURATE, AND TIMELY
REVIEWS.
The unobligated balances of amounts made available to carry out
section 60115 of Public Law 117-169 (136 Stat. 2077) are rescinded.
SEC. 60015. RESCISSION OF FUNDING FOR LOW-EMBODIED CARBON LABELING
FOR CONSTRUCTION MATERIALS.
The unobligated balances of amounts made available to carry out
section 60116 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat.
2077) are rescinded.
SEC. 60016. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE
JUSTICE BLOCK GRANTS.
The unobligated balances of amounts made available to carry out
section 138 of the Clean Air Act (42 U.S.C. 7438) are rescinded.
SEC. 60017. RESCISSION OF FUNDING FOR ESA RECOVERY PLANS.
The unobligated balances of amounts made available to carry out
section 60301 of Public Law 117-169 (136 Stat. 2079) are rescinded.
SEC. 60018. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE
DATA COLLECTION.
The unobligated balances of amounts made available to carry out
section 60401 of Public Law 117-169 (136 Stat. 2079) are rescinded.
SEC. 60019. RESCISSION OF NEIGHBORHOOD ACCESS AND EQUITY GRANT
PROGRAM.
The unobligated balances of amounts made available to carry out
section 177 of title 23, United States Code, are rescinded.
SEC. 60020. RESCISSION OF FUNDING FOR FEDERAL BUILDING ASSISTANCE.
The unobligated balances of amounts made available to carry out
section 60502 of Public Law 117-169 (136 Stat. 2083) are rescinded.
SEC. 60021. RESCISSION OF FUNDING FOR LOW-CARBON MATERIALS FOR
FEDERAL BUILDINGS.
The unobligated balances of amounts made available to carry out
section 60503 of Public Law 117-169 (136 Stat. 2083) are rescinded.
SEC. 60022. RESCISSION OF FUNDING FOR GSA EMERGING AND SUSTAINABLE
TECHNOLOGIES.
The unobligated balances of amounts made available to carry out
section 60504 of Public Law 117-169 (136 Stat. 2083) are rescinded.
[[Page 139 STAT. 157]]
SEC. 60023. RESCISSION OF ENVIRONMENTAL REVIEW IMPLEMENTATION
FUNDS.
The unobligated balances of amounts made available to carry out
section 178 of title 23, United States Code, are rescinded.
SEC. 60024. RESCISSION OF LOW-CARBON TRANSPORTATION MATERIALS
GRANTS.
The unobligated balances of amounts made available to carry out
section 179 of title 23, United States Code, are rescinded.
SEC. 60025. JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS.
(a) <<NOTE: Appropriation authorization. Time period. Expiration
date.>> In General.--In addition to amounts otherwise available, there
is appropriated for fiscal year 2025, out of any money in the Treasury
not otherwise appropriated, $256,657,000, to remain available until
September 30, 2029, for necessary expenses for capital repair,
restoration, maintenance backlog, and security structures of the
building and site of the John F. Kennedy Center for the Performing Arts.
(b) Administrative Costs.--Of the amounts made available under
subsection (a), not more than 3 percent may be used for administrative
costs necessary to carry out this section.
SEC. 60026. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS.
Title I of the National Environmental Policy Act of 1969 (42 U.S.C.
4331 et seq.) is amended by adding at the end the following:
``SEC. 112. <<NOTE: 42 USC 4336f.>> PROJECT SPONSOR OPT-IN FEES
FOR ENVIRONMENTAL REVIEWS.
``(a) Process.--
``(1) Project sponsor.--A project sponsor that intends to
pay a fee under this section for the preparation, or supervision
of the preparation, of an environmental assessment or
environmental impact statement for a project shall submit to the
Council--
``(A) a description of the project; and
``(B) a declaration of whether the project sponsor
intends to prepare the environmental assessment or
environmental impact statement under section 107(f).
``(2) <<NOTE: Deadline. Notice.>> Council on environmental
quality.--Not later than 15 days after the date on which the
Council receives information described in paragraph (1) from a
project sponsor, the Council shall provide to the project
sponsor notice of the amount of the fee to be paid under this
section, as determined under subsection (b).
``(3) Payment of fee.--A project sponsor may pay a fee under
this section after receipt of the notice described in paragraph
(2).
``(4) Deadline for environmental reviews for which a fee is
paid.--Notwithstanding section 107(g)(1)--
``(A) an environmental assessment for which a fee is
paid under this section shall be completed not later
than 180 days after the date on which the fee is paid;
and
``(B) an environmental impact statement for which a
fee is paid under this section shall be completed not
later than 1 year after the date of publication of the
notice of intent to prepare the environmental impact
statement.
[[Page 139 STAT. 158]]
``(b) Fee Amount.--The amount of a fee under this section shall be--
``(1) 125 percent of the anticipated costs to prepare the
environmental assessment or environmental impact statement; and
``(2) in the case of an environmental assessment or
environmental impact statement to be prepared in whole or in
part by a project sponsor under section 107(f), 125 percent of
the anticipated costs to supervise preparation of, and, as
applicable, prepare, the environmental assessment or
environmental impact statement.''.
TITLE VII--FINANCE
Subtitle A--Tax
SEC. 70001. REFERENCES TO THE INTERNAL REVENUE CODE OF 1986, ETC.
(a) References.--Except as otherwise expressly provided, whenever in
this title, an amendment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
(b) <<NOTE: 26 USC 15 note.>> Certain Rules Regarding Effect of Rate
Changes Not Applicable.--Section 15 of the Internal Revenue Code of 1986
shall not apply to any change in rate of tax by reason of any provision
of, or amendment made by, this title.
CHAPTER 1--PROVIDING PERMANENT TAX RELIEF FOR MIDDLE-CLASS FAMILIES AND
WORKERS
SEC. 70101. EXTENSION AND ENHANCEMENT OF REDUCED RATES.
(a) In General.-- <<NOTE: 26 USC 1.>> Section 1(j) is amended--
(1) in paragraph (1), by striking ``, and before January 1,
2026'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Inflation Adjustment.--Section 1(j)(3)(B)(i) is amended by
inserting ``solely for purposes of determining the dollar amounts at
which any rate bracket higher than 12 percent ends and at which any rate
bracket higher than 22 percent begins,'' before ``subsection (f)(3)''.
(c) <<NOTE: 26 USC 1 note.>> Effective Date.--The amendments made by
this section shall apply to taxable years beginning after December 31,
2025.
SEC. 70102. EXTENSION AND ENHANCEMENT OF INCREASED STANDARD
DEDUCTION.
(a) In General.--Section 63(c)(7) is amended--
(1) by striking ``, and before January 1, 2026'' in the
matter preceding subparagraph (A), and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Additional Increase in Standard Deduction.--Paragraph (7) of
section 63(c) is amended--
(1) by striking ``$18,000'' both places it appears in
subparagraphs (A)(i) and (B)(ii) and inserting ``$23,625'',
[[Page 139 STAT. 159]]
(2) by striking ``$12,000'' both places it appears in
subparagraphs (A)(ii) and (B)(ii) and inserting ``$15,750'',
(3) by striking ``2018'' in subparagraph (B)(ii) and
inserting ``2025'', and
(4) by striking ``2017'' in subparagraph (B)(ii)(II) and
inserting ``2024''.
(c) <<NOTE: 26 USC 63 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2024.
SEC. 70103. TERMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS OTHER
THAN TEMPORARY SENIOR DEDUCTION.
(a) In General.--Section 151(d)(5) is amended--.
(1) by striking ``2018 through 2025'' in the heading and
inserting ``beginning after 2017'',
(2) by striking ``, and before January 1, 2026'', and
(3) by adding at the end the following new subparagraph:
``(C) <<NOTE: Definitions.>> Deduction for
seniors.--
``(i) <<NOTE: Effective date.>> In general.--
In the case of a taxable year beginning before
January 1, 2029, there shall be allowed a
deduction in an amount equal to $6,000 for each
qualified individual with respect to the taxpayer.
``(ii) Qualified individual.--For purposes of
clause (i), the term `qualified individual'
means--
``(I) the taxpayer, if the taxpayer
has attained age 65 before the close of
the taxable year, and
``(II) in the case of a joint
return, the taxpayer's spouse, if such
spouse has attained age 65 before the
close of the taxable year.
``(iii) Limitation based on modified adjusted
gross income.--
``(I) In general.--In the case of
any taxpayer for any taxable year, the
$6,000 amount in clause (i) shall be
reduced (but not below zero) by 6
percent of so much of the taxpayer's
modified adjusted gross income as
exceeds $75,000 ($150,000 in the case of
a joint return).
``(II) Modified adjusted gross
income.--For purposes of this clause,
the term `modified adjusted gross
income' means the adjusted gross income
of the taxpayer for the taxable year
increased by any amount excluded from
gross income under section 911, 931, or
933.
``(iv) Social security number required.--
``(I) In general.--Clause (i) shall
not apply with respect to a qualified
individual unless the taxpayer includes
such qualified individual's social
security number on the return of tax for
the taxable year.
``(II) Social security number.--For
purposes of subclause (I), the term
`social security number' has the meaning
given such term in section 24(h)(7).
``(v) <<NOTE: Applicability.>> Married
individuals.--If the taxpayer is a married
individual (within the meaning of section
[[Page 139 STAT. 160]]
7703), this subparagraph shall apply only if the
taxpayer and the taxpayer's spouse file a joint
return for the taxable year.''.
(b) Omission of Correct Social Security Number Treated as
Mathematical or Clerical Error.--Section 6213(g)(2) is amended by
striking ``and'' at the end of subparagraph (U), by striking the period
at the end of subparagraph (V) and inserting ``, and'', and by inserting
after subparagraph (V) the following new subparagraph:
``(W) an omission of a correct social security
number required under section 151(d)(5)(C) (relating to
deduction for seniors).''.
(c) <<NOTE: 26 USC 151 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2024.
SEC. 70104. EXTENSION AND ENHANCEMENT OF INCREASED CHILD TAX
CREDIT.
(a) Extension and Increase of Expanded Child Tax Credit.--Section
24(h) is amended--
(1) in paragraph (1), by striking ``, and before January 1,
2026'',
(2) in paragraph (2), by striking ``$2,000'' and inserting
``$2,200'', and
(3) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Social Security Number Required.--Section 24(h)(7) is amended to
read as follows:
``(7) Social security number required.--
``(A) In general.--No credit shall be allowed under
this section to a taxpayer with respect to any
qualifying child unless the taxpayer includes on the
return of tax for the taxable year--
``(i) the taxpayer's social security number
(or, in the case of a joint return, the social
security number of at least 1 spouse), and
``(ii) the social security number of such
qualifying child.
``(B) <<NOTE: Definition.>> Social security
number.--For purposes of this paragraph, the term
`social security number' means a social security number
issued to an individual by the Social Security
Administration, but only if the social security number
is issued--
``(i) to a citizen of the United States or
pursuant to subclause (I) (or that portion of
subclause (III) that relates to subclause (I)) of
section 205(c)(2)(B)(i) of the Social Security
Act, and
``(ii) before the due date for such return.''.
(c) Inflation Adjustments.--Section 24(i) is amended to read as
follows:
``(i) <<NOTE: Effective dates.>> Inflation Adjustments.--
``(1) Maximum amount of refundable credit.--In the case of a
taxable year beginning after 2024, the $1,400 amount in
subsection (h)(5) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the
taxable
[[Page 139 STAT. 161]]
year begins, determined by substituting `2017' for
`2016' in subparagraph (A)(ii) thereof.
``(2) Special rule for adjustment of credit amount.--In the
case of a taxable year beginning after 2025, the $2,200 amount
in subsection (h)(2) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the
taxable year begins, determined by substituting `2024'
for `2016' in subparagraph (A)(ii) thereof.
``(3) Rounding.--If any increase under this subsection is
not a multiple of $100, such increase shall be rounded to the
next lowest multiple of $100.''.
(d) Conforming Amendment.--Section 24(h)(5) is amended to read as
follows:
``(5) <<NOTE: Applicability.>> Maximum amount of refundable
credit.--The amount determined under subsection (d)(1)(A) with
respect to any qualifying child shall not exceed $1,400, and
such subsection shall be applied without regard to paragraph (4)
of this subsection.''.
(e) Omission of Correct Social Security Number Treated as
Mathematical or Clerical Error.--Section 6213(g)(2)(I) is amended by
striking ``section 24(e)'' and inserting ``section 24''.
(f) <<NOTE: 26 USC 24 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2024.
SEC. 70105. EXTENSION AND ENHANCEMENT OF DEDUCTION FOR QUALIFIED
BUSINESS INCOME.
(a) Increase in Taxable Income Limitation Phase-in Amounts.--
(1) In general.--Subparagraph (B) of section 199A(b)(3) is
amended by striking ``$50,000 ($100,000 in the case of a joint
return)'' each place it appears and inserting ``$75,000
($150,000 in the case of a joint return)''.
(2) Conforming amendment.--Paragraph (3) of section 199A(d)
is amended by striking ``$50,000 ($100,000 in the case of a
joint return)'' each place it appears and inserting ``$75,000
($150,000 in the case of a joint return)''.
(b) Minimum Deduction for Active Qualified Business Income.--
(1) In general.--Subsection (i) of section 199A is amended
to read as follows:
``(i) Minimum Deduction for Active Qualified Business Income.--
``(1) In general.--In the case of an applicable taxpayer for
any taxable year, the deduction allowed under subsection (a) for
the taxable year shall be equal to the greater of--
``(A) the amount of such deduction determined
without regard to this subsection, or
``(B) $400.
``(2) <<NOTE: Definitions.>> Applicable taxpayer.--For
purposes of this subsection--
``(A) In general.--The term `applicable taxpayer'
means, with respect to any taxable year, a taxpayer
whose aggregate qualified business income with respect
to all
[[Page 139 STAT. 162]]
active qualified trades or businesses of the taxpayer
for such taxable year is at least $1,000.
``(B) Active qualified trade or business.--The term
`active qualified trade or business' means, with respect
to any taxpayer for any taxable year, any qualified
trade or business of the taxpayer in which the taxpayer
materially participates (within the meaning of section
469(h)).
``(3) <<NOTE: Effective date.>> Inflation adjustment.--In
the case of any taxable year beginning after 2026, the $400
amount in paragraph (1)(B) and the $1,000 amount in paragraph
(2)(A) shall each be increased by an amount equal to --
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the
taxable year begins, determined by substituting
`calendar year 2025' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
If any increase under this paragraph is not a multiple of $5,
such increase shall be rounded to the nearest multiple of $5.''.
(2) Conforming amendment.--Section 199A(a) is amended by
inserting ``except as provided in subsection (i),'' before
``there''.
(c) <<NOTE: 26 USC 199A note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70106. EXTENSION AND ENHANCEMENT OF INCREASED ESTATE AND GIFT
TAX EXEMPTION AMOUNTS.
(a) In General.--Section 2010(c)(3) is amended--
(1) in subparagraph (A) by striking ``$5,000,000'' and
inserting ``$15,000,000'',
(2) in subparagraph (B)--
(A) in the matter preceding clause (i), by striking
``2011'' and inserting ``2026'', and
(B) in clause (ii), by striking ``calendar year
2010'' and inserting ``calendar year 2025'', and
(3) by striking subparagraph (C).
(b) <<NOTE: 26 USC 2010 note.>> Effective Date.--The amendments made
by this section shall apply to estates of decedents dying and gifts made
after December 31, 2025.
SEC. 70107. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
EXEMPTION AMOUNTS AND MODIFICATION OF
PHASEOUT THRESHOLDS.
(a) In General.--Section 55(d)(4) is amended--
(1) in subparagraph (A), by striking ``, and before January
1, 2026'', and
(2) by striking ``and Before 2026'' in the heading.
(b) Modification of Inflation Adjustment.--Section 55(d)(4)(B) is
amended--
(1) by striking ``2018'' and inserting ``2018 (2026, in the
case of the $1,000,000 amount in subparagraph (A)(ii)(I))'', and
(2) by striking ``determined by substituting `calendar year
2017' for `calendar year 2016' in subparagraph (A)(ii)
thereof.'' and inserting ``determined by substituting for
`calendar year 2016' in subparagraph (A)(ii) thereof--
[[Page 139 STAT. 163]]
``(1) `calendar year 2017', in the case of the $109,400
amount in subparagraph (A)(i)(I) and the $70,300 amount in
subparagraph (A)(i)(II), and
``(2) `calendar year 2025', in the case of the $1,000,000
amount in subparagraph (A)(ii)(I).''.
(c) Modification of Phaseout Amount.--Section 55(d)(4)(A)(ii) is
amended by striking ``and'' at the end of subclause (II), and by adding
at the end the following new subclause:
``(IV) by substituting `50 percent'
for `25 percent', and''.
(d) <<NOTE: 26 USC 55 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70108. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION
FOR QUALIFIED RESIDENCE INTEREST.
(a) In General.--Section 163(h)(3)(F) is amended--
(1) in clause (i)--
(A) by striking ``, and before January 1, 2026'',
(B) by redesignating subclauses (III) and (IV) as
subclauses (IV) and (V), respectively,
(C) by striking ``subclause (III)'' in subclause
(V), as so redesignated, and inserting ``subclause
(IV)'', and
(D) by inserting after subclause (II) the following
new subclause:
``(III) Mortgage insurance premiums
treated as interest.--Clause (iv) of
subparagraph (E) shall not apply.'',
(2) by striking clause (ii) and redesignating clauses (iii)
and (iv) as clauses (ii) and (iii), respectively, and
(3) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) <<NOTE: 26 USC 163 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70109. EXTENSION AND MODIFICATION OF LIMITATION ON CASUALTY
LOSS DEDUCTION.
(a) In General.--Section 165(h)(5) is amended--
(1) in subparagraph (A), by striking ``, and before January
1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Extension to State Declared Disasters.--
(1) In general.--Subparagraph (A) of section 165(h)(5), as
amended by subsection (a), is further amended by striking
``(i)(5))'' and inserting ``(i)(5)) or a State declared
disaster''.
(2) Exception related to personal casualty gains.--Clause
(i) of section 165(h)(5)(B) is amended by striking ``(as so
defined)'' and inserting ``(as so defined) or a State declared
disaster''.
(3) State declared disaster.--Paragraph (5) of section
165(h) is amended by adding at the end the following new
subparagraph:
``(C) <<NOTE: Definitions.>> State declared
disaster.--For purposes of this paragraph--
``(i) In general.--The term `State declared
disaster' means, with respect to any State, any
natural catastrophe (including any hurricane,
tornado, storm, high water, wind-driven water,
tidal wave, tsunami,
[[Page 139 STAT. 164]]
earthquake, volcanic eruption, landslide,
mudslide, snowstorm, or drought), or, regardless
of cause, any fire, flood, or explosion, in any
part of the State, which in the determination of
the Governor of such State (or the Mayor, in the
case of the District of Columbia) and the
Secretary causes damage of sufficient severity and
magnitude to warrant the application of the rules
of this section.
``(ii) State.--The term `State' includes the
District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa,
and the Commonwealth of the Northern Mariana
Islands.''.
(c) <<NOTE: 26 USC 165 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70110. TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTIONS OTHER
THAN EDUCATOR EXPENSES.
(a) In General.--Section 67(g) is amended--
(1) by striking ``, and before January 1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Deduction for Educator Expenses.--
(1) In general.--Section 67(b) is amended by striking
``and'' at the end of paragraph (11), by striking the period at
the end of paragraph (12) and inserting ``, and'', and by adding
at the end the following new paragraph:
``(13) the deductions allowed by section 162 for educator
expenses (as defined in subsection (g)).''.
(2) Inclusion of coaches and certain nonathletic
instructional equipment.--Section 67 is amended by redesignating
subsection (g), as amended by this section, as subsection (h),
and by inserting after subsection (f) the following new section:
``(g) <<NOTE: Definition.>> Educator Expenses.--For purposes of
subsection (b)(13), the term `educator expenses' means expenses of a
type which would be described in section 62(a)(2)(D) if--
``(1) such section were applied--
``(A) without regard to the dollar limitation,
``(B) without regard to `(other than nonathletic
supplies for courses of instruction in health or
physical education)' in clause (ii) thereof, and
``(C) by substituting `as part of instructional
activity' for `in the classroom' in clause (ii) thereof,
and
``(2) section 62(d)(1)(A) were applied by inserting `,
interscholastic sports administrator or coach,' after
`counselor'.''.
(c) <<NOTE: 26 USC 67 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70111. LIMITATION ON TAX BENEFIT OF ITEMIZED DEDUCTIONS.
(a) In General.--Section 68 is amended to read as follows:
``(a) In General.--In the case of an individual, the amount of the
itemized deductions otherwise allowable for the taxable year (determined
without regard to this section) shall be reduced by \2/37\ of the lesser
of--
``(1) such amount of itemized deductions, or
``(2) so much of the taxable income of the taxpayer for the
taxable year (determined without regard to this section and
increased by such amount of itemized deductions) as
[[Page 139 STAT. 165]]
exceeds the dollar amount at which the 37 percent rate bracket
under section 1 begins with respect to the taxpayer.
``(b) <<NOTE: Applicability.>> Coordination With Other
Limitations.--This section shall be applied after the application of any
other limitation on the allowance of any itemized deduction.''.
(b) Limitation Not Applicable to Determination of Deduction for
Qualified Business Income.--
(1) In general.--Section 199A(e)(1) is amended by inserting
``without regard to section 68 and'' after ``shall be
computed''.
(2) Patrons of specified agricultural and horticultural
cooperatives.--Section 199A(g)(2)(B) is amended by inserting
``section 68 or'' after ``without regard to''.
(c) <<NOTE: 26 USC 68 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70112. EXTENSION AND MODIFICATION OF QUALIFIED TRANSPORTATION
FRINGE BENEFITS.
(a) In General.--Section 132(f) is amended--
(1) by striking subparagraph (D) of paragraph (1),
(2) in paragraph (2), by inserting ``and'' at the end of
subparagraph (A), by striking ``, and'' at the end of
subparagraph (B) and inserting a period, and by striking
subparagraph (C),
(3) by striking ``(other than a qualified bicycle commuting
reimbursement)'' in paragraph (4),
(4) by striking subparagraph (F) of paragraph (5), and
(5) by striking paragraph (8).
(b) Inflation Adjustment.--Clause (ii) of section 132(f)(6)(A) is
amended by striking ``1998'' in clause (ii) and inserting ``1997''.
(c) Coordination With Disallowance of Certain Expenses.--Subsection
(l) of section 274 is amended--
(1) by striking ``Benefits.--'' and all that follows through
``No deduction'' and inserting ``Benefits.--No deduction'', and
(2) by striking paragraph (2).
(d) <<NOTE: 26 USC 132 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70113. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION
AND EXCLUSION FOR MOVING EXPENSES.
(a) Extension of Limitation on Deduction.--Section 217(k) is
amended--
(1) by striking ``, and before January 1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(b) Allowance of Deduction for Members of the Intelligence
Community.--Section 217(k), as amended by subsection (a), is further
amended--
(1) by striking ``2017.--Except in the case'' and inserting
``2017.--
``(1) In general.--Except in the case'', and
(2) by adding at the end the following new paragraph:
``(2) Members of the intelligence community.--An employee or
new appointee of the intelligence community (as defined in
section 3 of the National Security Act of 1947 (50 U.S.C. 3003))
(other than a member of the Armed Forces of the United States)
who moves pursuant to a change in assignment which requires
relocation shall be treated for purposes
[[Page 139 STAT. 166]]
of this section in the same manner as an individual to whom
subsection (g) applies.''.
(c) Extension of Limitation on Exclusion.--Section 132(g)(2) is
amended--
(1) by striking ``, and before January 1, 2026'', and
(2) by striking ``2018 Through 2025'' in the heading and
inserting ``Beginning After 2017''.
(d) Allowance of Exclusion for Members of the Intelligence
Community.--Section 132(g)(2) of the Internal Revenue Code of 1986 is
amended by inserting ``, or an employee or new appointee of the
intelligence community (as defined in section 3 of the National Security
Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces
of the United States) who moves pursuant to a change in assignment that
requires relocation'' after ``change of station''.
(e) <<NOTE: 26 USC 132 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70114. EXTENSION AND MODIFICATION OF LIMITATION ON WAGERING
LOSSES.
(a) In General.--Section 165 is amended by striking subsection (d)
and inserting the following:
``(d) Wagering Losses.--
``(1) In general.--For purposes of losses from wagering
transactions, the amount allowed as a deduction for any taxable
year--
``(A) shall be equal to 90 percent of the amount of
such losses during such taxable year, and
``(B) shall be allowed only to the extent of the
gains from such transactions during such taxable year.
``(2) <<NOTE: Definition.>> Special rule.--For purposes of
paragraph (1), the term `losses from wagering transactions'
includes any deduction otherwise allowable under this chapter
incurred in carrying on any wagering transaction.''.
(b) <<NOTE: 26 USC 165 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70115. EXTENSION AND ENHANCEMENT OF INCREASED LIMITATION ON
CONTRIBUTIONS TO ABLE ACCOUNTS.
(a) In General.--Section 529A(b)(2)(B) is amended--
(1) in clause (i), by inserting ``(determined by
substituting `1996' for `1997' in paragraph (2)(B) thereof)''
after ``section 2503(b)'', and
(2) in clause (ii), by striking ``before January 1, 2026''.
(b) <<NOTE: Applicability. 26 USC 529A note.>> Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
contributions made after December 31, 2025.
(2) Modified inflation adjustment.--The amendment made by
subsection (a)(1) shall apply to taxable years beginning after
December 31, 2025.
SEC. 70116. EXTENSION AND ENHANCEMENT OF SAVERS CREDIT ALLOWED FOR
ABLE CONTRIBUTIONS.
(a) Extension.--
(1) In general.--Section 25B(d)(1) is amended to read as
follows:
[[Page 139 STAT. 167]]
``(1) <<NOTE: Definition.>> In general.--The term `qualified
retirement savings contributions' means, with respect to any
taxable year, the sum of--
``(A) the amount of contributions made by the
eligible individual during such taxable year to the ABLE
account (within the meaning of section 529A) of which
such individual is the designated beneficiary, and
``(B) in the case of any taxable year beginning
before January 1, 2027--
``(i) the amount of the qualified retirement
contributions (as defined in section 219(e)) made
by the eligible individual,
``(ii) the amount of--
``(I) any elective deferrals (as
defined in section 402(g)(3)) of such
individual, and
``(II) any elective deferral of
compensation by such individual under an
eligible deferred compensation plan (as
defined in section 457(b)) of an
eligible employer described in section
457(e)(1)(A), and
``(iii) the amount of voluntary employee
contributions by such individual to any qualified
retirement plan (as defined in section
4974(c)).''.
(2) <<NOTE: Applicability. 26 USC 25B note.>> Coordination
with secure 2.0 act of 2022 amendment.--Paragraph (1) of section
103(e) of the SECURE 2.0 Act of 2022 is <<NOTE: 26 USC
25B.>> repealed, and the Internal Revenue Code of 1986 shall be
applied and administered as though such paragraph were never
enacted.
(3) <<NOTE: 26 USC 25B note.>> Effective date.--The
amendments and repeal made by this subsection shall apply to
taxable years ending after December 31, 2025.
(b) Increase of Credit Amount.--
(1) In general.--Section 25B(a) is amended by striking
``$2,000'' and inserting ``$2,100''.
(2) <<NOTE: 26 USC 25B note.>> Effective date.--The
amendment made by this subsection shall apply to taxable years
beginning after December 31, 2026.
SEC. 70117. EXTENSION OF ROLLOVERS FROM QUALIFIED TUITION PROGRAMS
TO ABLE ACCOUNTS PERMITTED.
(a) In General.--Section 529(c)(3)(C)(i)(III) is amended by striking
``before January 1, 2026,''.
(b) <<NOTE: 26 USC 529 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70118. EXTENSION OF TREATMENT OF CERTAIN INDIVIDUALS
PERFORMING SERVICES IN THE SINAI
PENINSULA AND ENHANCEMENT TO INCLUDE
ADDITIONAL AREAS.
(a) Treatment Made Permanent.--Section 11026(a) of Public Law 115-
97 <<NOTE: 26 USC 112 note.>> is amended by striking ``, with respect to
the applicable period''.
(b) Kenya, Mali, Burkina Faso, and Chad Included as Hazardous Duty
Areas.--Section 11026(b) of Public Law 115-97 is amended to read as
follows:
``(b) <<NOTE: Definition.>> Qualified Hazardous Duty Area.--For
purposes of this section, the term `qualified hazardous duty area' means
each of the following locations, but only during the period for which
any member of the Armed Forces of the United States is entitled to
[[Page 139 STAT. 168]]
special pay under section 310 of title 37, United States Code (relating
to special pay; duty subject to hostile fire or imminent danger), for
services performed in such location:
``(1) the Sinai Peninsula of Egypt.
``(2) Kenya.
``(3) Mali.
``(4) Burkina Faso.
``(5) Chad.''.
(c) Conforming Amendment.--Section 11026 of Public Law 115-97 is
amended by striking subsections (c) and (d).
(d) <<NOTE: 26 USC 112 note.>> Effective Date.--The amendments made
by this section shall take effect on January 1, 2026.
SEC. 70119. EXTENSION AND MODIFICATION OF EXCLUSION FROM GROSS
INCOME OF STUDENT LOANS DISCHARGED ON
ACCOUNT OF DEATH OR DISABILITY.
(a) In General.--Section 108(f)(5) is amended to read as follows:
``(5) Discharges on account of death or disability.--
``(A) In general.--In the case of an individual,
gross income does not include any amount which (but for
this subsection) would be includible in gross income for
such taxable year by reason of the discharge (in whole
or in part) of any loan described in subparagraph (B),
if such discharge was--
``(i) pursuant to subsection (a) or (d) of
section 437 of the Higher Education Act of 1965 or
the parallel benefit under part D of title IV of
such Act (relating to the repayment of loan
liability),
``(ii) pursuant to section 464(c)(1)(F) of
such Act, or
``(iii) otherwise discharged on account of
death or total and permanent disability of the
student.
``(B) Loans discharged.--A loan is described in this
subparagraph if such loan is--
``(i) a student loan (as defined in paragraph
(2)), or
``(ii) a private education loan (as defined in
section 140(a) of the Consumer Credit Protection
Act (15 U.S.C. 1650(a)).
``(C) Social security number requirement.--
``(i) In general.--Subparagraph (A) shall not
apply with respect to any discharge during any
taxable year unless the taxpayer includes the
taxpayer's social security number on the return of
tax for such taxable year.
``(ii) <<NOTE: Definition.>> Social security
number.--For purposes of this subparagraph, the
term `social security number' has the meaning
given such term in section 24(h)(7).''.
(b) Omission of Correct Social Security Number Treated as
Mathematical or Clerical Error.--Section 6213(g)(2), as amended by this
Act, is further amended by striking ``and'' at the end of subparagraph
(V), by striking the period at the end of subparagraph (W) and inserting
``, and'', and by inserting after subparagraph (W) the following new
subparagraph:
[[Page 139 STAT. 169]]
``(X) an omission of a correct social security
number required under section 108(f)(5)(C) (relating to
discharges on account of death or disability).''.
(c) <<NOTE: 26 USC 108 note.>> Effective Date.--The amendments made
by this section shall apply to discharges after December 31, 2025.
SEC. 70120. LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE
AND LOCAL TAXES, ETC.
(a) In General.--Section 164(b)(6) is amended--
(1) by striking ``and before January 1, 2026'', and
(2) by striking ``$10,000 ($5,000 in the case of a married
individual filing a separate return)'' and inserting ``the
applicable limitation amount (half the applicable limitation
amount in the case of a married individual filing a separate
return)''.
(b) Applicable Limitation Amount.--Section 164(b) is amended by
adding at the end the following new paragraph:
``(7) <<NOTE: Definitions.>> Applicable limitation amount.--
``(A) In general.--For purposes of paragraph (6),
the term `applicable limitation amount' means--
``(i) in the case of any taxable year
beginning in calendar year 2025, $40,000,
``(ii) in the case of any taxable year
beginning in calendar year 2026, $40,400,
``(iii) in the case of any taxable year
beginning after calendar year 2026 and before
2030, 101 percent of the dollar amount in effect
under this subparagraph for taxable years
beginning in the preceding calendar year, and
``(iv) in the case of any taxable year
beginning after calendar year 2029, $10,000.
``(B) Phasedown based on modified adjusted gross
income.--
``(i) In general.--Except as provided in
clause (iii), in the case of any taxable year
beginning before January 1, 2030, the applicable
limitation amount shall be reduced by 30 percent
of the excess (if any) of the taxpayer's modified
adjusted gross income over the threshold amount
(half the threshold amount in the case of a
married individual filing a separate return).
``(ii) Threshold amount.--For purposes of this
subparagraph, the term `threshold amount' means--
``(I) in the case of any taxable
year beginning in calendar year 2025,
$500,000,
``(II) in the case of any taxable
year beginning in calendar year 2026,
$505,000, and
``(III) in the case of any taxable
year beginning after calendar year 2026,
101 percent of the dollar amount in
effect under this subparagraph for
taxable years beginning in the preceding
calendar year.
``(iii) Limitation on reduction.--The
reduction under clause (i) shall not result in the
applicable limitation amount being less than
$10,000.
``(iv) Modified adjusted gross income.--For
purposes of this paragraph, the term `modified
adjusted
[[Page 139 STAT. 170]]
gross income' means adjusted gross income
increased by any amount excluded from gross income
under section 911, 931, or 933.''.
(c) <<NOTE: 26 USC 164 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2024.
CHAPTER 2--DELIVERING ON PRESIDENTIAL PRIORITIES TO PROVIDE NEW MIDDLE-
CLASS TAX RELIEF
SEC. 70201. NO TAX ON TIPS.
(a) Deduction Allowed.--Part VII of subchapter B of chapter 1 is
amended by redesignating section 224 as section 225 and by inserting
after section 223 the following new section:
``SEC. <<NOTE: 26 USC 224.>> 224. QUALIFIED TIPS.
``(a) In General.--There shall be allowed as a deduction an amount
equal to the qualified tips received during the taxable year that are
included on statements furnished to the individual pursuant to section
6041(d)(3), 6041A(e)(3), 6050W(f)(2), or 6051(a)(18), or reported by the
taxpayer on Form 4137 (or successor).
``(b) Limitation.--
``(1) In general.--The amount allowed as a deduction under
this section for any taxable year shall not exceed $25,000.
``(2) Limitation based on adjusted gross income.--
``(A) In general.--The amount allowable as a
deduction under subsection (a) (after application of
paragraph (1)) shall be reduced (but not below zero) by
$100 for each $1,000 by which the taxpayer's modified
adjusted gross income exceeds $150,000 ($300,000 in the
case of a joint return).
``(B) <<NOTE: Definition.>> Modified adjusted gross
income.--For purposes of this paragraph, the term
`modified adjusted gross income' means the adjusted
gross income of the taxpayer for the taxable year
increased by any amount excluded from gross income under
section 911, 931, or 933.
``(c) Tips Received in Course of Trade or Business.--In the case of
qualified tips received by an individual during any taxable year in the
course of a trade or business (other than the trade or business of
performing services as an employee) of such individual, such qualified
tips shall be taken into account under subsection (a) only to the extent
that the gross income for the taxpayer from such trade or business for
such taxable year (including such qualified tips) exceeds the sum of the
deductions (other than the deduction allowed under this section)
allocable to the trade or business in which such qualified tips are
received by the individual for such taxable year.
``(d) <<NOTE: Definitions.>> Qualified Tips.--For purposes of this
section--
``(1) In general.--The term `qualified tips' means cash tips
received by an individual in an occupation which customarily and
regularly received tips on or before December 31, 2024, as
provided by the Secretary.
``(2) Exclusions.--Such term shall not include any amount
received by an individual unless--
``(A) such amount is paid voluntarily without any
consequence in the event of nonpayment, is not the
subject of negotiation, and is determined by the payor,
[[Page 139 STAT. 171]]
``(B) the trade or business in the course of which
the individual receives such amount is not a specified
service trade or business (as defined in section
199A(d)(2)), and
``(C) such other requirements as may be established
by the Secretary in regulations or other guidance are
satisfied.
For purposes of subparagraph (B), in the case of an individual
receiving tips in the trade or business of performing services
as an employee, such individual shall be treated as receiving
tips in the course of a trade or business which is a specified
service trade or business if the trade or business of the
employer is a specified service trade or business.
``(3) Cash tips.--For purposes of paragraph (1), the term
`cash tips' includes tips received from customers that are paid
in cash or charged and, in the case of an employee, tips
received under any tip-sharing arrangement.
``(e) Social Security Number Required.--
``(1) In general.--No deduction shall be allowed under this
section unless the taxpayer includes on the return of tax for
the taxable year such individual's social security number.
``(2) Social security number defined.--For purposes of
paragraph (1), the term `social security number' shall have the
meaning given such term in section 24(h)(7).
``(f) <<NOTE: Applicability.>> Married Individuals.--If the taxpayer
is a married individual (within the meaning of section 7703), this
section shall apply only if the taxpayer and the taxpayer's spouse file
a joint return for the taxable year.
``(g) <<NOTE: Guidance.>> Regulations.--The Secretary shall
prescribe such regulations or other guidance as may be necessary to
prevent reclassification of income as qualified tips, including
regulations or other guidance to prevent abuse of the deduction allowed
by this section.
``(h) Termination.--No deduction shall be allowed under this section
for any taxable year beginning after December 31, 2028.''.
(b) Deduction Allowed to Non-itemizers.--Section 63(b) is amended by
striking ``and'' at the end of paragraph (3), by striking the period at
the end of paragraph (4) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(5) the deduction provided in section 224.''.
(c) Omission of Correct Social Security Number Treated as
Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the
preceding provisions of this Act, is amended by striking ``and'' at the
end of subparagraph (W), by striking the period at the end of
subparagraph (X) and inserting ``, and'', and by inserting after
subparagraph (X) the following new subparagraph:
``(Y) an omission of a correct social security
number required under section 224(e) (relating to
deduction for qualified tips).''.
(d) Exclusion From Qualified Business Income.--Section 199A(c)(4) is
amended by striking ``and'' at the end of subparagraph (B), by striking
the period at the end of subparagraph (C) and inserting ``, and'', and
by adding at the end the following new subparagraph:
``(D) any amount with respect to which a deduction
is allowable to the taxpayer under section 224(a) for
the taxable year.''.
(e) Extension of Tip Credit to Beauty Service Business.--
[[Page 139 STAT. 172]]
(1) In general.--Section 45B(b)(2) is amended to read as
follows:
``(2) Application only to certain lines of business.--In
applying paragraph (1) there shall be taken into account only
tips received from customers or clients in connection with the
following services:
``(A) The providing, delivering, or serving of food
or beverages for consumption, if the tipping of
employees delivering or serving food or beverages by
customers is customary.
``(B) The providing of any of the following services
to a customer or client if the tipping of employees
providing such services is customary:
``(i) Barbering and hair care.
``(ii) Nail care.
``(iii) Esthetics.
``(iv) Body and spa treatments.''.
(2) Credit determined with respect to minimum wage in
effect.--Section 45B(b)(1)(B) is amended--
(A) by striking ``as in effect on January 1, 2007,
and'', and
(B) by inserting ``, and in the case of food or
beverage establishments, as in effect on January 1,
2007'' after ``without regard to section 3(m) of such
Act''.
(f) Reporting Requirements.--
(1) Returns for payments made in the course of a trade or
business.--
(A) Statement furnished to secretary.--Section
6041(a) is amended by inserting ``(including a separate
accounting of any such amounts reasonably designated as
cash tips and the occupation described in section
224(d)(1) of the person receiving such tips)'' after
``such gains, profits, and income''.
(B) Statement furnished to payee.--Section 6041(d)
is amended by striking ``and'' at the end of paragraph
(1), by striking the period at the end of paragraph (2)
and inserting ``, and'', and by inserting after
paragraph (2) the following new paragraph:
``(3) in the case of compensation to non-employees, the
portion of payments that have been reasonably designated as cash
tips and the occupation described in section 224(d)(1) of the
person receiving such tips.''.
(2) Returns for payments made for services and direct
sales.--
(A) Statement furnished to secretary.--Section
6041A(a) is amended by inserting ``(including a separate
accounting of any such amounts reasonably designated as
cash tips and the occupation described in section
224(d)(1) of the person receiving such tips)'' after
``amount of such payments''.
(B) Statement furnished to payee.--Section 6041A(e)
is amended by striking ``and'' at the end of paragraph
(1), by striking the period at the end of paragraph (2)
and inserting ``, and'', and by inserting after
paragraph (2) the following new paragraph:
``(3) in the case of subsection (a), the portion of payments
that have been reasonably designated as cash tips and the
[[Page 139 STAT. 173]]
occupation described in section 224(d)(1) of the person
receiving such tips.''.
(3) Returns relating to third party settlement
organizations.--
(A) Statement furnished to secretary.--Section
6050W(a) is amended by striking ``and'' at the end of
paragraph (1), by striking the period at the end of
paragraph (2) and inserting ``and'', and by adding at
the end the following new paragraph:
``(3) in the case of a third party settlement organization,
the portion of reportable payment transactions that have been
reasonably designated by payors as cash tips and the occupation
described in section 224(d)(1) of the person receiving such
tips.''.
(B) Statement furnished to payee.--Section
6050W(f)(2) is amended by inserting ``(including a
separate accounting of any such amounts that have been
reasonably designated by payors as cash tips and the
occupation described in section 224(d)(1) of the person
receiving such tips)'' after ``reportable payment
transactions''.
(4) Returns related to wages.--Section 6051(a) is amended by
striking ``and'' at the end of paragraph (16), by striking the
period at the end of paragraph (17) and inserting ``, and'', and
by inserting after paragraph (17) the following new paragraph:
``(18) the total amount of cash tips reported by the
employee under section 6053(a) and the occupation described in
section 224(d)(1) such person.''.
(g) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 is amended <<NOTE: 26 USC prec. 211.>> by
redesignating the item relating to section 224 as relating to section
225 and by inserting after the item relating to section 223 the
following new item:
``Sec. 224. Qualified tips.''.
(h) Published List of Occupations Traditionally Receiving
Tips. <<NOTE: Deadline. 26 USC 224 note.>> --Not later than 90 days
after the date of the enactment of this Act, the Secretary of the
Treasury (or the Secretary's delegate) shall publish a list of
occupations which customarily and regularly received tips on or before
December 31, 2024, for purposes of section 224(d)(1) of the Internal
Revenue Code of 1986 (as added by subsection (a)).
(i) <<NOTE: Procedures. Effective date. 26 USC 3402 note.>>
Withholding.--The Secretary of the Treasury (or the Secretary's
delegate) shall modify the procedures prescribed under section 3402(a)
of the Internal Revenue Code of 1986 for taxable years beginning after
December 31, 2025, to take into account the deduction allowed under
section 224 of such Code (as added by this Act).
(j) <<NOTE: 26 USC 45B note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2024.
(k) <<NOTE: Time periods. 26 USC 6041 note.>> Transition Rule.--In
the case of any cash tips required to be reported for periods before
January 1, 2026, persons required to file returns or statements under
section 6041(a), 6041(d)(3), 6041A(a), 6041A(e)(3), 6050W(a), or
6050W(f)(2) of the Internal Revenue Code of 1986 (as amended by this
section) may approximate a separate accounting of amounts designated as
cash tips by any reasonable method specified by the Secretary.
[[Page 139 STAT. 174]]
SEC. 70202. NO TAX ON OVERTIME.
(a) Deduction Allowed.--Part VII of subchapter B of chapter 1, as
amended by the preceding provisions of this Act, is amended by
redesignating section 225 as section 226 and by inserting after section
224 the following new section:
``SEC. 225. <<NOTE: 26 USC 225.>> QUALIFIED OVERTIME
COMPENSATION.
``(a) <<NOTE: Statements.>> In General.--There shall be allowed as
a deduction an amount equal to the qualified overtime compensation
received during the taxable year and included on statements furnished to
the individual pursuant to section 6041(d)(4) or 6051(a)(19).
``(b) Limitation.--
``(1) In general.--The amount allowed as a deduction under
this section for any taxable year shall not exceed $12,500
($25,000 in the case of a joint return).
``(2) Limitation based on adjusted gross income.--
``(A) In general.--The amount allowable as a
deduction under subsection (a) (after application of
paragraph (1)) shall be reduced (but not below zero) by
$100 for each $1,000 by which the taxpayer's modified
adjusted gross income exceeds $150,000 ($300,000 in the
case of a joint return).
``(B) <<NOTE: Definition.>> Modified adjusted gross
income.--For purposes of this paragraph, the term
`modified adjusted gross income' means the adjusted
gross income of the taxpayer for the taxable year
increased by any amount excluded from gross income under
section 911, 931, or 933.
``(c) Qualified Overtime Compensation.--
``(1) <<NOTE: Definition.>> In general.--For purposes of
this section, the term `qualified overtime compensation' means
overtime compensation paid to an individual required under
section 7 of the Fair Labor Standards Act of 1938 that is in
excess of the regular rate (as used in such section) at which
such individual is employed.
``(2) Exclusions.--Such term shall not include any qualified
tip (as defined in section 224(d)).
``(d) Social Security Number Required.--
``(1) In general.--No deduction shall be allowed under this
section unless the taxpayer includes on the return of tax for
the taxable year such individual's social security number.
``(2) Social security number defined.--For purposes of
paragraph (1), the term `social security number' shall have the
meaning given such term in section 24(h)(7).
``(e) <<NOTE: Applicability.>> Married Individuals.--If the
taxpayer is a married individual (within the meaning of section 7703),
this section shall apply only if the taxpayer and the taxpayer's spouse
file a joint return for the taxable year.
``(f) <<NOTE: Guidance.>> Regulations.--The Secretary shall issue
such regulations or other guidance as may be necessary or appropriate to
carry out the purposes of this section, including regulations or other
guidance to prevent abuse of the deduction allowed by this section.
``(g) Termination.--No deduction shall be allowed under this section
for any taxable year beginning after December 31, 2028.''.
(b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended
by the preceding provisions of this Act, is amended by striking ``and''
at the end of paragraph (4), by striking the period
[[Page 139 STAT. 175]]
at the end of paragraph (5) and inserting ``, and'', and by adding at
the end the following new paragraph:
``(6) the deduction provided in section 225.''.
(c) Reporting.--
(1) Requirement to include overtime compensation on w-2.--
Section 6051(a), as amended by the preceding provision of this
Act, is amended by striking ``and'' at the end of paragraph
(17), by striking the period at the end of paragraph (18) and
inserting ``, and'', and by inserting after paragraph (18) the
following new paragraph:
``(19) the total amount of qualified overtime compensation
(as defined in section 225(c)).''.
(2) Payments to persons not treated as employees under tax
laws.--
(A) Statement furnished to secretary.--Section
6041(a), as amended by section 70201(e)(1)(A), is
amended by inserting ``and a separate accounting of any
amount of qualified overtime compensation (as defined in
section 225(c))'' after ``occupation of the person
receiving such tips''.
(B) Statement furnished to payee.--Section 6041(d),
as amended by section 70201(e)(1)(B), is amended by
striking ``and'' at the end of paragraph (2), by
striking the period at the end of paragraph (3) and
inserting ``, and'', and by inserting after paragraph
(3) the following new paragraph:
``(4) the portion of payments that are qualified overtime
compensation (as defined in section 225(c)).''.
(d) Omission of Correct Social Security Number Treated as
Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the
preceding provisions of this Act, is amended by striking ``and'' at the
end of subparagraph (X), by striking the period at the end of
subparagraph (Y) and inserting ``, and'', and by inserting after
subparagraph (Y) the following new subparagraph:
``(Z) an omission of a correct social security
number required under section 225(d) (relating to
deduction for qualified overtime).''.
(e) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1, as amended by the preceding provisions of
this Act, <<NOTE: 26 USC prec. 211.>> is amended by redesignating the
item relating to section 225 as an item relating to section 226 and by
inserting after the item relating to section 224 the following new item:
``Sec. 225. Qualified overtime compensation.''.
(f) <<NOTE: Procedures. Effective date. 26 USC 3402 note.>>
Withholding.--The Secretary of the Treasury (or the Secretary's
delegate) shall modify the procedures prescribed under section 3402(a)
of the Internal Revenue Code of 1986 for taxable years beginning after
December 31, 2025, to take into account the deduction allowed under
section 225 of such Code (as added by this Act).
(g) <<NOTE: 26 USC 63 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2024.
(h) <<NOTE: Time periods. 26 USC 6041 note.>> Transition Rule.--In
the case of qualified overtime compensation required to be reported for
periods before January 1, 2026, persons required to file returns or
statements under section 6051(a)(19), 6041(a), or 6041(d)(4) of the
Internal Revenue Code of 1986 (as amended by this section) may
approximate a separate
[[Page 139 STAT. 176]]
accounting of amounts designated as qualified overtime compensation by
any reasonable method specified by the Secretary.
SEC. 70203. NO TAX ON CAR LOAN INTEREST.
(a) In General.--Section 163(h) is amended by redesignating
paragraph (4) as paragraph (5) and by inserting after paragraph (3) the
following new paragraph:
``(4) <<NOTE: Definitions.>> Special rules for taxable
years 2025 through 2028 relating to qualified passenger vehicle
loan interest.--
``(A) In general.--In the case of taxable years
beginning after December 31, 2024, and before January 1,
2029, for purposes of this subsection the term `personal
interest' shall not include qualified passenger vehicle
loan interest.
``(B) Qualified passenger vehicle loan interest
defined.--
``(i) In general.--For purposes of this
paragraph, the term `qualified passenger vehicle
loan interest' means any interest which is paid or
accrued during the taxable year on indebtedness
incurred by the taxpayer after December 31, 2024,
for the purchase of, and that is secured by a
first lien on, an applicable passenger vehicle for
personal use.
``(ii) Exceptions.--Such term shall not
include any amount paid or incurred on any of the
following:
``(I) A loan to finance fleet sales.
``(II) A loan incurred for the
purchase of a commercial vehicle that is
not used for personal purposes.
``(III) Any lease financing.
``(IV) A loan to finance the
purchase of a vehicle with a salvage
title.
``(V) A loan to finance the purchase
of a vehicle intended to be used for
scrap or parts.
``(iii) VIN requirement.--Interest shall not
be treated as qualified passenger vehicle loan
interest under this paragraph unless the taxpayer
includes the vehicle identification number of the
applicable passenger vehicle described in clause
(i) on the return of tax for the taxable year.
``(C) Limitations.--
``(i) Dollar limit.--The amount of interest
taken into account by a taxpayer under
subparagraph (B) for any taxable year shall not
exceed $10,000.
``(ii) Limitation based on modified adjusted
gross income.--
``(I) In general.--The amount which
is otherwise allowable as a deduction
under subsection (a) as qualified
passenger vehicle loan interest
(determined without regard to this
clause and after the application of
clause (i)) shall be reduced (but not
below zero) by $200 for each $1,000 (or
portion thereof) by which the modified
adjusted gross income of the taxpayer
for the taxable year exceeds $100,000
($200,000 in the case of a joint
return).
``(II) Modified adjusted gross
income.--For purposes of this clause,
the term `modified adjusted gross
income' means the adjusted gross income
[[Page 139 STAT. 177]]
of the taxpayer for the taxable year
increased by any amount excluded from
gross income under section 911, 931, or
933.
``(D) Applicable passenger vehicle.--The term
`applicable passenger vehicle' means any vehicle--
``(i) the original use of which commences with
the taxpayer,
``(ii) which is manufactured primarily for use
on public streets, roads, and highways (not
including a vehicle operated exclusively on a rail
or rails),
``(iii) which has at least 2 wheels,
``(iv) which is a car, minivan, van, sport
utility vehicle, pickup truck, or motorcycle,
``(v) which is treated as a motor vehicle for
purposes of title II of the Clean Air Act, and
``(vi) which has a gross vehicle weight rating
of less than 14,000 pounds.
Such term shall not include any vehicle the final
assembly of which did not occur within the United
States.
``(E) Other definitions and special rules.--For
purposes of this paragraph--
``(i) Final assembly.--For purposes of
subparagraph (D), the term `final assembly' means
the process by which a manufacturer produces a
vehicle at, or through the use of, a plant,
factory, or other place from which the vehicle is
delivered to a dealer with all component parts
necessary for the mechanical operation of the
vehicle included with the vehicle, whether or not
the component parts are permanently installed in
or on the vehicle.
``(ii) Treatment of refinancing.--Indebtedness
described in subparagraph (B) shall include
indebtedness that results from refinancing any
indebtedness described in such subparagraph, and
that is secured by a first lien on the applicable
passenger vehicle with respect to which the
refinanced indebtedness was incurred, but only to
the extent the amount of such resulting
indebtedness does not exceed the amount of such
refinanced indebtedness.
``(iii) Related parties.--Indebtedness
described in subparagraph (B) shall not include
any indebtedness owed to a person who is related
(within the meaning of section 267(b) or
707(b)(1)) to the taxpayer.''.
(b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended
by the preceding provisions of this Act, is amended by striking ``and''
at the end of paragraph (5), by striking the period at the end of
paragraph (6) and inserting ``and'', and by adding at the end the
following new paragraph:
``(7) so much of the deduction allowed by section 163(a) as
is attributable to the exception under section 163(h)(4)(A).''.
(c) Reporting.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 is amended by adding at the end the following new
section:
[[Page 139 STAT. 178]]
``SEC. 6050AA. <<NOTE: 26 USC 6050AA.>> RETURNS RELATING TO
APPLICABLE PASSENGER VEHICLE LOAN
INTEREST RECEIVED IN TRADE OR
BUSINESS FROM INDIVIDUALS.
``(a) In General.--Any person--
``(1) who is engaged in a trade or business, and
``(2) who, in the course of such trade or business, receives
from any individual interest aggregating $600 or more for any
calendar year on a specified passenger vehicle loan,
shall make the return described in subsection (b) with respect to each
individual from whom such interest was received at such time as the
Secretary may provide.
``(b) Form and Manner of Returns.--A return is described in this
subsection if such return--
``(1) is in such form as the Secretary may prescribe, and
``(2) contains--
``(A) the name and address of the individual from
whom the interest described in subsection (a)(2) was
received,
``(B) the amount of such interest received for the
calendar year,
``(C) the amount of outstanding principal on the
specified passenger vehicle loan as of the beginning of
such calendar year,
``(D) the date of the origination of such loan,
``(E) the year, make, model, and vehicle
identification number of the applicable passenger
vehicle which secures such loan (or such other
description of such vehicle as the Secretary may
prescribe), and
``(F) such other information as the Secretary may
prescribe.
``(c) Statements to Be Furnished to Individuals With Respect to Whom
Information Is Required.--Every person required to make a return under
subsection (a) shall furnish to each individual whose name is required
to be set forth in such return a written statement showing--
``(1) the name, address, and phone number of the information
contact of the person required to make such return, and
``(2) the information described in subparagraphs (B), (C),
(D), and (E) of subsection (b)(2) with respect to such
individual (and such information as is described in subsection
(b)(2)(F) with respect to such individual as the Secretary may
provide for purposes of this subsection).
The <<NOTE: Deadline.>> written statement required under the preceding
sentence shall be furnished on or before January 31 of the year
following the calendar year for which the return under subsection (a)
was required to be made.
``(d) Definitions.--For purposes of this section--
``(1) In general.--Terms used in this section which are also
used in paragraph (4) of section 163(h) shall have the same
meaning as when used in such paragraph.
``(2) Specified passenger vehicle loan.--The term `specified
passenger vehicle loan' means the indebtedness described in
section 163(h)(4)(B) with respect to any applicable passenger
vehicle.
``(e) <<NOTE: Guidance.>> Regulations.--The Secretary shall issue
such regulations or other guidance as may be necessary or appropriate to
carry out the purposes of this section, including regulations or other
[[Page 139 STAT. 179]]
guidance to prevent the duplicate reporting of information under this
section.
``(f) Applicability.--No return shall be required under this section
for any period to which section 163(h)(4) does not apply.''.
(2) Penalties.--Section 6724(d) is amended--
(A) in paragraph (1)(B), by striking ``or'' at the
end of clause (xxvii), by striking ``and'' at the end of
clause (xxviii) and inserting ``or'', and by adding at
the end the following new clause:
``(xxix) section 6050AA(a) (relating to
returns relating to applicable passenger vehicle
loan interest received in trade or business from
individuals),'', and
(B) in paragraph (2), by striking ``or'' at the end
of subparagraph (KK), by striking the period at the end
of subparagraph (LL) and inserting ``, or'', and by
inserting after subparagraph (LL) the following new
subparagraph:
``(MM) section 6050AA(c) (relating to statements
relating to applicable passenger vehicle loan interest
received in trade or business from individuals).''.
(d) Conforming Amendments.--
(1) Section 56(e)(1)(B) is amended by striking ``section
163(h)(4)'' and inserting ``section 163(h)(5)''.
(2) The table of sections for subpart B of part III of
subchapter A of chapter 61 <<NOTE: 26 USC prec. 6041.>> is
amended by adding at the end the following new item:
``Sec. 6050AA. Returns relating to applicable passenger vehicle loan
interest received in trade or business from individuals.''.
(e) <<NOTE: 26 USC 56 note.>> Effective Date.--The amendments made
by this section shall apply to indebtedness incurred after December 31,
2024.
SEC. 70204. TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM.
(a) Trump Accounts.--
(1) In general.--Subchapter F of chapter 1 is amended by
adding at the end the following new part:
``PART IX-- <<NOTE: 26 USC prec. 530A.>> TRUMP ACCOUNTS
``Sec. 530A. Trump accounts.
``SEC. 530A. <<NOTE: Definitions. 26 USC 530A.>> TRUMP ACCOUNTS.
``(a) General Rule.--Except as provided in this section or under
regulations or guidance established by the Secretary, a Trump account
shall be treated for purposes of this title in the same manner as an
individual retirement account under section 408(a).
``(b) Trump Account.--For purposes of this section--
``(1) In general.--The term `Trump account' means an
individual retirement account (as defined in section 408(a))
which is not designated as a Roth IRA and which meets the
following requirements:
``(A) The account--
``(i) is created or organized by the Secretary
for the exclusive benefit of an eligible
individual or such eligible individual's
beneficiaries, or
``(ii) is--
``(I) created or organized in the
United States for the exclusive benefit
of an individual who has
[[Page 139 STAT. 180]]
not attained the age of 18 before the
end of the calendar year, or such
individual's beneficiaries, and
``(II) funded by a qualified
rollover contribution.
``(B) The account is designated (in such manner as
the Secretary shall prescribe) at the time of the
establishment of the account as a Trump account.
``(C) The written governing instrument creating the
account meets the following requirements:
``(i) No contribution will be accepted--
``(I) before the date that is 12
months after the date of the enactment
of this section, or
``(II) in the case of a contribution
made in any calendar year before the
calendar year in which the account
beneficiary attains age 18, if such
contribution would result in aggregate
contributions (other than exempt
contributions) for such calendar year in
excess of the contribution limit
specified in subsection (c)(2)(A).
``(ii) Except as provided in subsection (d),
no distribution will be allowed before the first
day of the calendar year in which the account
beneficiary attains age 18.
``(iii) No part of the account funds will be
invested in any asset other than an eligible
investment during any period before the first day
of the calendar year in which the account
beneficiary attains age 18.
``(2) Eligible individual.--The term `eligible individual'
means any individual--
``(A) who has not attained the age of 18 before the
close of the calendar year in which the election under
subparagraph (C) is made,
``(B) for whom a social security number (within the
meaning of section 24(h)(7)) has been issued before the
date on which an election under subsection (C) is made,
and
``(C) for whom--
``(i) an election is made under this
subparagraph by the Secretary if the Secretary
determines (based on information available to the
Secretary from tax returns or otherwise) that such
individual meets the requirements of subparagraphs
(A) and (B) and no prior election has been made
for such individual under clause (ii), or
``(ii) an election is made under this
subparagraph by a person other than the Secretary
(at such time and in such manner as the Secretary
may prescribe) for the establishment of a Trump
account if no prior election has been made for
such individual under clause (i).
``(3) Eligible investment.--
``(A) In general.--The term `eligible investment'
means any mutual fund or exchange traded fund which--
``(i) tracks the returns of a qualified index,
``(ii) does not use leverage,
[[Page 139 STAT. 181]]
``(iii) does not have annual fees and expenses
of more than 0.1 percent of the balance of the
investment in the fund, and
``(iv) meets such other criteria as the
Secretary determines appropriate for purposes of
this section.
``(B) Qualified index.--The term `qualified index'
means--
``(i) the Standard and Poor's 500 stock market
index, or
``(ii) any other index--
``(I) which is comprised of equity
investments in primarily United States
companies, and
``(II) for which regulated futures
contracts (as defined in section
1256(g)(1)) are traded on a qualified
board or exchange (as defined in section
1256(g)(7)).
Such term shall not include any industry or
sector-specific index, but may include an index
based on market capitalization.
``(4) Account beneficiary.--The term `account beneficiary'
means the individual on whose behalf the Trump account was
established.
``(c) Treatment of Contributions.--
``(1) No deduction allowed.--No deduction shall be allowed
under section 219 for any contribution which is made before the
first day of the calendar year in which the account beneficiary
attains age 18.
``(2) Contribution limit.--In the case of any contribution
made before the calendar year in which the account beneficiary
attains age 18--
``(A) In general.--The aggregate amount of
contributions (other than exempt contributions) for such
calendar year shall not exceed $5,000.
``(B) Exempt contribution.--For purposes of this
paragraph, the term `exempt contribution' means--
``(i) a qualified rollover contribution,
``(ii) any qualified general contribution, or
``(iii) any contribution provided under
section 6434.
``(C) Cost-of-living adjustment.--
``(i) In general.--In the case of any taxable
year after 2027, the $5,000 amount under
subparagraph (A) shall be increased by an amount
equal to--
``(I) such dollar amount, multiplied
by
``(II) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year
begins, determined by substituting
`calendar year 2026' for `calendar year
2016' in subparagraph (A)(ii) thereof.
``(ii) Rounding.--If any increase under this
subparagraph is not a multiple of $100, such
amount shall be rounded to the next lowest
multiple of $100.
``(3) Timing of contributions.--Section 219(f)(3) shall not
apply to any contribution made to a Trump account for any
taxable year ending before the calendar year in which the
account beneficiary attains age 18.
``(d) Distributions.--
[[Page 139 STAT. 182]]
``(1) In general.--Except as otherwise provided in this
subsection, no distribution shall be allowed before the first
day of the calendar year in which the account beneficiary
attains age 18.
``(2) Tax treatment of allowable distributions.--For
purposes of applying section 72 to any amount distributed from a
Trump account, the investment in the contract shall not
include--
``(A) any qualified general contribution,
``(B) any contribution provided under section 6434,
and
``(C) the amount of any contribution which is
excluded from gross income under section 128.
``(3) Qualified rollover contributions.--Paragraph (1) shall
not apply to any distribution which is a qualified rollover
contribution and the amount of such distribution shall not be
included in the gross income of the beneficiary.
``(4) Qualified able rollover contributions.--
``(A) In general.--Paragraph (1) shall not apply to
any distribution which is a qualified ABLE rollover
contribution and the amount of such distribution shall
not be included in the gross income of the beneficiary.
``(B) Qualified able rollover contribution.--For
purposes of this section, the term `qualified ABLE
rollover contribution' means an amount which is paid
during the calendar year in which the account
beneficiary attains age 17 in a direct trustee-to-
trustee transfer from a Trump account maintained for the
benefit of the account beneficiary to an ABLE account
(as defined in section 529A(e)(6)) for the benefit of
the such account beneficiary, but only if the amount of
such payment is equal to the entire balance of the Trump
account from which the payment is made.
``(5) Distributions of excess contributions.--In the case of
any contribution which is made before the calendar year in which
the account beneficiary attains age 18 and which is in excess of
the limitation in effect under subsection (c)(2)(A) for the
calendar year--
``(A) paragraph (1) shall not apply to the
distribution of such excess,
``(B) the amount of such distribution shall not be
included in gross income of the account beneficiary, and
``(C) the tax imposed by this chapter on the
distributee for the taxable year in which the
distribution is made shall be increased by 100 percent
of the amount of net income attributable to such excess
(determined without regard to subparagraph (B)).
``(6) Treatment of death of account beneficiary.--If, by
reason of the death of the account beneficiary before the first
day of the calendar year in which the account beneficiary
attains age 18, any person acquires the account beneficiary's
interest in the Trump account--
``(A) paragraph (1) shall not apply,
``(B) such account shall cease to be a Trump account
as of the date of death, and
``(C) an amount equal to the fair market value of
the assets (reduced by the investment in the contract)
in such account on such date shall--
[[Page 139 STAT. 183]]
``(i) if such person is not the estate of such
beneficiary, be includible in such person's gross
income for the taxable year which includes such
date, or
``(ii) if such person is the estate of such
beneficiary, be includible in such beneficiary's
gross income for the last taxable year of such
beneficiary.
``(e) Qualified Rollover Contribution.--For purposes of this
section, the term `qualified rollover contribution' means an amount
which is paid in a direct trustee-to-trustee transfer from a Trump
account maintained for the benefit of the account beneficiary to a Trump
account maintained for such beneficiary, but only if the amount of such
payment is equal to the entire balance of the Trump account from which
the payment is made.
``(f) Qualified General Contribution.--For purposes of this
section--
``(1) In general.--The term `qualified general contribution'
means any contribution which--
``(A) is made by the Secretary pursuant to a general
funding contribution,
``(B) is made to the Trump account of an account
beneficiary in the qualified class of account
beneficiaries specified in the general funding
contribution, and
``(C) is in an amount which is equal to the ratio
of--
``(i) the amount of such general funding
contribution, to
``(ii) the number of account beneficiaries in
such qualified class.
``(2) General funding contribution.--The term `general
funding contribution' means a contribution which--
``(A) is made by--
``(i) an entity described in section 170(c)(1)
(other than a possession of the United States or a
political subdivision thereof) or an Indian tribal
government, or
``(ii) an organization described in section
501(c)(3) and exempt from tax under section
501(a), and
``(B) which specifies a qualified class of account
beneficiaries to whom such contribution is to be
distributed.
``(3) Qualified class.--
``(A) In general.--The term `qualified class' means
any of the following:
``(i) All account beneficiaries who have not
attained the age of 18 before the close of the
calendar year in which the contribution is made.
``(ii) All account beneficiaries who have not
attained the age of 18 before the close of the
calendar year in which the contribution is made
and who reside in one or more States or other
qualified geographic areas specified by the terms
of the general funding contribution.
``(iii) All account beneficiaries who have not
attained the age of 18 before the close of the
calendar year in which the contribution is made
and who were born in one or more calendar years
specified by the terms of the general funding
contribution.
``(B) Qualified geographic area.--The term
`qualified geographic area' means any geographic area in
which not
[[Page 139 STAT. 184]]
less than 5,000 account beneficiaries reside and which
is designated by the Secretary as a qualified geographic
area under this subparagraph.
``(g) Trustee Selection.--In the case of any Trump account created
or organized by the Secretary, the Secretary shall take into account the
following criteria in selecting the trustee:
``(1) The history of reliability and regulatory compliance
of the trustee.
``(2) The customer service experience of the trustee.
``(3) The costs imposed by the trustee on the account or the
account beneficiary.
``(h) Other Special Rules and Coordination With Individual
Retirement Account Rules.--
``(1) In general.--The rules of subsections (k) and (p) of
section 408 shall not apply to a Trump account, and the rules of
subsections (d) and (i) of section 408 shall not apply to a
Trump account for any taxable year beginning before the calendar
year in which the account beneficiary attains age 18.
``(2) Custodial accounts.--In the case of a Trump account,
section 408(h) shall be applied by substituting `a Trump account
described in section 530A(b)(1)' for `an individual retirement
account described in subsection (a)'.
``(3) Contributions.--In the case of any taxable year
beginning before the first day of the calendar year in which the
account beneficiary attains age 18, a contribution to a Trump
account shall not be taken into account in applying any
contribution limit to any individual retirement plan other than
a Trump account.
``(4) Distributions.--Section 408(d)(2) shall be applied
separately with respect to Trump Accounts and other individual
retirement plans.
``(5) Excess contributions.--For purposes of applying
section 4973(b) to a Trump account for any taxable year
beginning before the first day of the calendar year in which the
account beneficiary attains age 18, the term `excess
contributions' means the sum of--
``(A) the amount by which the amount contributed to
the account for the calendar year in which taxable year
begins exceeds the amount permitted to be contributed to
the account under subsection (c)(2), and
``(B) the amount determined under this paragraph for
the preceding taxable year.
For purposes of this paragraph, the excess contributions for a
taxable year are reduced by the distributions to which
subsection (d)(5) applies that are made during the taxable year
or by the date prescribed by law (including extensions of time)
for filing the account beneficiary's return for the taxable
year.
``(i) Reports.--
``(1) In general.--The trustee of a Trump account shall make
such reports regarding such account to the Secretary and to the
beneficiary of the account at such time and in such manner as
may be required by the Secretary. Such reports shall include
information with respect to--
``(A) contributions (including the amount and source
of any contribution in excess of $25 made from a person
[[Page 139 STAT. 185]]
other than the Secretary, the account beneficiary, or
the parent or legal guardian of the account
beneficiary),
``(B) distributions (including distributions which
are qualified rollover contributions),
``(C) the fair market value of the account,
``(D) the investment in the contract with respect to
such account, and
``(E) such other matters as the Secretary may
require.
``(2) Qualified rollover contributions.--Not later than 30
days after the date of any qualified rollover contribution, the
trustee of the Trump account to which the contribution was made
shall make a report to the Secretary. Such report shall
include--
``(A) the name, address, and social security number
of the account beneficiary,
``(B) the name and address of such trustee,
``(C) the account number,
``(D) the routing number of the trustee, and
``(E) such other information as the Secretary may
require.
``(3) Period of reporting.--This subsection shall not apply
to any period after the calendar year in which the beneficiary
attains age 17.''.
(2) Qualified able rollover contributions exempt from able
contribution limitation.--
(A) In general.--Section 529A(b)(2)(B) is amended by
inserting ``or received in a qualified ABLE rollover
contribution described in section 530A(d)(4)(B)'' after
``except as provided in the case of contributions under
subsection (c)(1)(C)''.
(B) Prohibition on excess contributions.--The second
sentence of section 529A(b)(6) is amended by inserting
``but do not include any contributions received in a
qualified ABLE rollover contribution described in
section 530A(d)(4)(B)'' before the period at the end.
(C) Conforming amendment.--Section 4973(h)(1) is
amended by inserting ``or contributions received in a
qualified ABLE rollover contribution described in
section 530A(d)(4)(B)'' after ``other than contributions
under section 529A(c)(1)(C)''.
(3) Failure to provide reports on trump accounts.--Section
6693(a)(2) is amended by striking ``and'' at the end of
subparagraph (E), by striking the period at the end of
subparagraph (F) and inserting ``, and'', and by inserting after
subparagraph (F) the following new subparagraph:
``(G) section 530A(i) (relating to Trump
accounts).''.
(4) Clerical amendment.--
(A) The table of parts for subchapter F of chapter 1
is amended <<NOTE: 26 USC prec. 501.>> by adding at the
end the following new item:
``PART IX--Trump Accounts''.
(b) Employer Contributions.--
(1) In general.--Part III of subchapter B of chapter 1 is
amended by inserting after section 127 the following new
section:
[[Page 139 STAT. 186]]
``SEC. 128. <<NOTE: 26 USC 128.>> EMPLOYER CONTRIBUTIONS TO TRUMP
ACCOUNTS.
``(a) In General.--Gross income of an employee does not include
amounts paid by the employer as a contribution to the Trump account of
such employee or of any dependent of such employee if the amounts are
paid or incurred pursuant to a program which is described in subsection
(c).
``(b) Limitation.--
``(1) In general.--The amount which may be excluded under
subsection (a) with respect to any employee shall not exceed
$2,500.
``(2) Inflation adjustment.--
``(A) <<NOTE: Effective date.>> In general.--In the
case of any taxable year beginning after 2027, the
$2,500 amount in paragraph (1) shall be increased by an
amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the calendar
year in which the taxable year begins by
substituting `calendar year 2026' for `calendar
year 2016' in subparagraph (A)(ii) thereof.
``(B) Rounding.--If any increase determined under
subparagraph (A) is not a multiple of $100, such
increase shall be rounded to the next lowest multiple of
$100.
``(c) Trump Account Contribution Program.--For purposes of this
section, a Trump account contribution program is a separate written plan
of an employer for the exclusive benefit of his employees to provide
contributions to the Trump accounts of such employees or dependents of
such employees which meets requirements similar to the requirements of
paragraphs (2), (3), (6), (7), and (8) of section 129(d).''.
(2) Clerical amendment.--The table of sections for part III
of subchapter B of chapter 1 <<NOTE: 26 USC prec. 101.>> is
amended by inserting after the item relating to section 127 the
following new item:
``Sec. 128. Employer contributions to Trump accounts.''.
(c) Certain Contributions Excluded From Gross Income.--
(1) In general.--Part III of subchapter B of chapter 1 is
amended by inserting before section 140 the following new
section:
``SEC. 139J. <<NOTE: 26 USC 139J.>> CERTAIN CONTRIBUTIONS TO
TRUMP ACCOUNTS.
``(a) In General.--Gross income of an account beneficiary shall not
include any qualified general contribution to a Trump account of the
account beneficiary.
``(b) Definitions.--Any term used in this section which is used in
section 530A shall have the meaning given such term under section
530A.''.
(2) Clerical amendment.--The table of sections for part III
of subchapter B is amended <<NOTE: 26 USC prec. 101.>> by
inserting before the item relating to section 140 the following
new item:
``Sec. 139J. Certain contributions to Trump accounts.''.
(d) Trump Accounts Contribution Pilot Program.--
(1) In general.--Subchapter B of chapter 65 is amended by
adding at the end the following new section:
[[Page 139 STAT. 187]]
``SEC. 6434. <<NOTE: 26 USC 6434.>> TRUMP ACCOUNTS CONTRIBUTION
PILOT PROGRAM.
``(a) In General.--In the case of an individual who makes an
election under this section with respect to an eligible child of the
individual, such eligible child shall be treated as making a payment
against the tax imposed by subtitle A (for the taxable year for which
the election was made) in an amount equal to $1,000.
``(b) Refund of Payment.--The amount treated as a payment under
subsection (a) shall be paid by the Secretary to the Trump account with
respect to which such eligible child is the account beneficiary.
``(c) <<NOTE: Definition.>> Eligible Child.--For purposes of this
section, the term `eligible child' means a qualifying child (as defined
in section 152(c))--
``(1) who is born after December 31, 2024, and before
January 1, 2029,
``(2) with respect to whom no prior election has been made
under this section by such individual or any other individual,
and
``(3) who is a United States citizen.
``(d) Election.--An election under this section shall be made at
such time and in such manner as the Secretary shall provide.
``(e) Social Security Number Required.--
``(1) In general.--This section shall not apply to any
taxpayer unless such individual includes with the election made
under this section the social security number of the eligible
child with respect to whom the election is made.
``(2) Social security number defined.--For purposes of
paragraph (1), the term `social security number' shall have the
meaning given such term in section 24(h)(7), determined by
substituting `before the date of the election made under section
6434' for `before the due date of such return' in subparagraph
(B) thereof.
``(f) Exception From Reduction or Offset.--Any payment made to any
individual under this section shall not be--
``(1) subject to reduction or offset pursuant to subsection
(c), (d), (e), or (f) of section 6402 or any similar authority
permitting offset, or
``(2) reduced or offset by other assessed Federal taxes that
would otherwise be subject to levy or collection.
``(g) <<NOTE: Effective date.>> Special Rule Regarding Interest.--
The period determined under section 6611(a) with respect to any payment
under this section shall not begin before January 1, 2028.
``(h) Mirror Code Possessions.--In the case of any possession of the
United States with a mirror code tax system (as defined in section
24(k)), this section shall not be treated as part of the income tax laws
of the United States for purposes of determining the income tax law of
such possession unless such possession elects to have this section be so
treated.
``(i) Definitions.--For purposes of this section, the terms `Trump
account' and `account beneficiary' have the meaning given such terms in
section 530A(b).''.
(2) Penalty for negligent claim or fraudulent claim.--Part I
of subchapter A of chapter 68 is amended by adding at the end
the following new section:
[[Page 139 STAT. 188]]
``SEC. 6659. <<NOTE: 26 USC 6659.>> IMPROPER CLAIM FOR TRUMP
ACCOUNT CONTRIBUTION PILOT PROGRAM
CREDIT.
``(a) In General.--In the case of any individual who makes an
election under section 6434 with respect to an individual who is not an
eligible child of the taxpayer--
``(1) if such election was made due to negligence or
disregard of the rules or regulations, there shall be imposed a
penalty of $500, or
``(2) if such election was made due to fraud, there shall be
imposed a penalty of $1,000.
``(b) Definitions.--
``(1) Eligible child.--The term `eligible child' has the
meaning given such term under section 6434.
``(2) Negligence; disregard.--The terms `negligence' and
`disregard' have the same meaning as when such terms are used in
section 6662.''.
(3) Omission of correct social security number treated as
mathematical or clerical error.--Section 6213(g)(2), as amended
by the preceding provisions of this Act, is amended by striking
``and'' at the end of subparagraph (Y), by striking the period
at the end of subparagraph (Z) and inserting ``, and'', and by
inserting after subparagraph (Z) the following new subparagraph:
``(AA) an omission of a correct social security
number required under section 6434(e)(1) (relating to
the Trump accounts contribution pilot program).''.
(4) Conforming amendments.--
(A) The table of sections for subchapter B of
chapter 65 <<NOTE: 26 USC prec. 6411.>> is amended by
adding at the end the following new item:
``Sec. 6434. Trump accounts contribution pilot program.''.
(B) The table of sections for part I of subchapter A
of chapter 68 <<NOTE: 26 USC prec. 6651.>> is amended
by inserting after the item relating to section 6658 the
following new item:
``Sec. 6659. Improper claim for Trump account contribution pilot program
credit.''.
(e) <<NOTE: 26 USC 128 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
(f) <<NOTE: Expiration date.>> Funding.--In addition to amounts
otherwise available, there is appropriated to the Department of the
Treasury, out of any money in the Treasury not otherwise appropriated,
$410,000,000, to remain available until September 30, 2034, to carry out
the amendments made by this section.
CHAPTER 3--ESTABLISHING CERTAINTY AND COMPETITIVENESS FOR AMERICAN JOB
CREATORS
Subchapter A--Permanent U.S. Business Tax Reform and Boosting Domestic
Investment
SEC. 70301. <<NOTE: Applicability.>> FULL EXPENSING FOR CERTAIN
BUSINESS PROPERTY.
(a) Made Permanent.--
(1) In general.--Section 168(k)(2)(A) is amended by adding
``and'' at the end of clause (i), by striking ``, and'' at the
end of clause (ii) and inserting a period, and by striking
clause (iii).
[[Page 139 STAT. 189]]
(2) Property with longer production periods.--Section
168(k)(2)(B) is amended--
(A) in clause (i), by striking subclauses (II) and
(III) and redesignating subclauses (IV), (V), and (VI),
as subclauses (II), (III), and (IV), respectively, and
(B) by striking clause (ii) and redesignating
clauses (iii) and (iv) as clauses (ii) and (iii),
respectively.
(3) Self-constructed property.--Section 168(k)(2)(E) is
amended by striking clause (i) and redesignating clauses (ii)
and (iii) as clauses (i) and (ii), respectively.
(4) Certain plants.--Section 168(k)(5)(A) is amended by
striking ``planted before January 1, 2027, or is grafted before
such date to a plant that has already been planted,'' in the
matter preceding clause (i) and inserting ``planted or
grafted''.
(5) Conforming amendments.--
(A) Section 168(k)(2)(A)(ii) is amended by striking
``clause (ii) of subparagraph (E)'' and inserting
``clause (i) of subparagraph (E)''.
(B) Section 168(k)(2)(C)(i) is amended by striking
``and subclauses (II) and (III) of subparagraph
(B)(i)''.
(C) Section 168(k)(2)(C)(ii) is amended by striking
``subparagraph (B)(iii)'' and inserting ``subparagraph
(B)(ii)''.
(D) Section 460(c)(6)(B) is amended by striking
``which'' and all that follows through the period and
inserting ``which has a recovery period of 7 years or
less.''.
(b) 100 Percent Expensing.--
(1) In general.--Section 168(k) is amended--
(A) in paragraph (1)(A), by striking ``the
applicable percentage'' and inserting ``100 percent'',
and
(B) by striking paragraphs (6) and (8).
(2) Certain plants.--Section 168(k)(5)(A)(i) is amended by
striking ``the applicable percentage'' and inserting ``100
percent''.
(3) <<NOTE: Time period.>> Transitional election of reduced
percentage.--Section 168(k)(10) is amended by striking
subparagraph (A), by redesignating subparagraph (B) as
subparagraph (C), and by inserting before subparagraph (C) (as
so redesignated) the following new subparagraphs:
``(A) In general.--In the case of qualified property
placed in service by the taxpayer during the first
taxable year ending after January 19, 2025, if the
taxpayer elects to have this paragraph apply for such
taxable year, paragraph (1)(A) shall be applied--
``(i) in the case of property which is not
described in clause (ii), by substituting `40
percent' for `100 percent', or
``(ii) in the case of property which is
described in subparagraph (B) or (C) of paragraph
(2), by substituting `60 percent' for `100
percent'.
``(B) Specified plants.--In the case of any
specified plant planted or grafted by the taxpayer
during the first taxable year ending after January 19,
2025, if the taxpayer elects to have this paragraph
apply for such taxable year, paragraph (5)(A)(i) shall
be applied by substituting `40 percent' for `100
percent'.''.
(c) <<NOTE: 26 USC 168 note.>> Effective Date.--
[[Page 139 STAT. 190]]
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
property acquired after January 19, 2025.
(2) Specified plants.--Except as provided in paragraph (3),
in the case of any specified plant (as defined in section
168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by
this section), the amendments made by this section shall apply
to such plants which are planted or grafted after January 19,
2025.
(3) Transitional election of reduced percentage.--The
amendment made by subsection (b)(3) shall apply to taxable years
ending after January 19, 2025.
(4) Acquisition date determination.--For purposes of
paragraph (1), property shall not be treated as acquired after
the date on which a written binding contract is entered into for
such acquisition.
SEC. 70302. FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERIMENTAL
EXPENDITURES.
(a) In General.--Part VI of subchapter B of chapter 1 is amended by
inserting after section 174 the following new section:
``SEC. 174A. <<NOTE: 26 USC 174A.>> DOMESTIC RESEARCH OR
EXPERIMENTAL EXPENDITURES.
``(a) Treatment as Expenses.--Notwithstanding section 263, there
shall be allowed as a deduction any domestic research or experimental
expenditures which are paid or incurred by the taxpayer during the
taxable year.
``(b) Domestic Research or Experimental Expenditures.--
For <<NOTE: Definition.>> purposes of this section, the term `domestic
research or experimental expenditures' means research or experimental
expenditures paid or incurred by the taxpayer in connection with the
taxpayer's trade or business other than such expenditures which are
attributable to foreign research (within the meaning of section
41(d)(4)(F)).
``(c) Amortization of Certain Domestic Research or Experimental
Expenditures.--
``(1) In general.--At the election of the taxpayer, made in
accordance with regulations or other guidance provided by the
Secretary, in the case of domestic research or experimental
expenditures which would (but for subsection (a)) be chargeable
to capital account but not chargeable to property of a character
which is subject to the allowance under section 167 (relating to
allowance for depreciation, etc.) or section 611 (relating to
allowance for depletion), subsection (a) shall not apply and the
taxpayer shall--
``(A) charge such expenditures to capital account,
and
``(B) <<NOTE: Time period.>> be allowed an
amortization deduction of such expenditures ratably over
such period of not less than 60 months as may be
selected by the taxpayer (beginning with the month in
which the taxpayer first realizes benefits from such
expenditures).
``(2) <<NOTE: Deadline.>> Time for and scope of election.--
The election provided by paragraph (1) may be made for any
taxable year, but only if made not later than the time
prescribed by law for filing the return for such taxable year
(including extensions thereof). <<NOTE: Approval.>> The method
so elected, and the period selected by the taxpayer, shall be
adhered to in computing taxable income for the taxable year for
which the election is made and for
[[Page 139 STAT. 191]]
all subsequent taxable years unless, with the approval of the
Secretary, a change to a different method (or to a different
period) is authorized with respect to part or all of such
expenditures. The election shall not apply to any expenditure
paid or incurred during any taxable year before the taxable year
for which the taxpayer makes the election.
``(d) Special Rules.--
``(1) Land and other property.--This section shall not apply
to any expenditure for the acquisition or improvement of land,
or for the acquisition or improvement of property to be used in
connection with the research or experimentation and of a
character which is subject to the allowance under section 167
(relating to allowance for depreciation, etc.) or section 611
(relating to allowance for depletion); but for purposes of this
section allowances under section 167, and allowances under
section 611, shall be considered as expenditures.
``(2) Exploration expenditures.--This section shall not
apply to any expenditure paid or incurred for the purpose of
ascertaining the existence, location, extent, or quality of any
deposit of ore or other mineral (including oil and gas).
``(3) Software development.--For purposes of this section,
any amount paid or incurred in connection with the development
of any software shall be treated as a research or experimental
expenditure.''.
(b) Coordination With Certain Other Provisions.--
(1) Foreign research expenses.--Section 174 is amended--
(A) in subsection (a)--
(i) by striking ``a taxpayer's specified
research or experimental expenditures'' and
inserting ``a taxpayer's foreign research or
experimental expenditures'', and
(ii) by striking ``over the 5-year period (15-
year period in the case of any specified research
or experimental expenditures which are
attributable to foreign research (within the
meaning of section 41(d)(4)(F)))'' in paragraph
(2)(B) and inserting ``over the 15-year period'',
(B) in subsection (b)--
(i) by striking ``specified research'' and
inserting ``foreign research'',
(ii) by inserting ``and which are attributable
to foreign research (within the meaning of section
41(d)(4)(F))'' before the period at the end, and
(iii) by striking ``Specified'' in the heading
thereof and inserting ``Foreign'', and
(C) in subsection (d)--
(i) by striking ``specified research or
experimental expenditures'' and inserting
``foreign research or experimental expenditures'',
and
(ii) by inserting ``or reduction to amount
realized'' after ``no deduction''.
(2) Research credit.--
(A) Section 41(d)(1)(A) is amended to read as
follows:
``(A) with respect to which expenditures are treated
as domestic research or experimental expenditures under
section 174A,''.
(B) Section 280C(c)(1) is amended to read as
follows:
[[Page 139 STAT. 192]]
``(1) <<NOTE: Reduction.>> In general.--The domestic
research or experimental expenditures (as defined in section
174A(b)) otherwise taken into account as a deduction or charged
to capital account under this chapter shall be reduced by the
amount of the credit allowed under section 41(a).''.
(3) AMT adjustment.--Section 56(b)(2) is amended--
(A) in subparagraph (A)--
(i) by striking ``or 174(a)'' in the matter
preceding clause (i) and inserting ``, 174(a), or
174A(a)'', and
(ii) by striking ``research and experimental
expenditures described in section 174(a)'' in
clause (ii) thereof and inserting ``foreign
research or experimental expenditures described in
section 174(a) and domestic research or
experimental expenditures in section 174A(a)'',
and
(B) in subparagraph (C), by inserting ``or 174A(a)''
after ``174(a)''.
(4) Optional 10-year writeoff.--Section 59(e)(2)(B) is
amended by striking ``section 174(a) (relating to research and
experimental expenditures)'' and inserting ``section 174A(a)
(relating to domestic research or experimental expenditures)''.
(5) Qualified small issue bonds.--Section 144(a)(4)(C)(iv)
is amended by striking ``174(a)'' and inserting ``174A(a)''.
(6) Start-up expenditures.--Section 195(c)(1) is amended by
striking ``or 174'' in the last sentence and inserting ``174, or
174A''.
(7) Capital expenditures.--
(A) Section 263(a)(1)(B) is amended by inserting
``or 174A'' after ``174''.
(B) Section 263A(c)(2) is amended by inserting ``or
174A'' after ``174''.
(8) Active business computer software royalties.--Section
543(d)(4)(A)(i) is amended by inserting ``174A,'' after
``174,''.
(9) Source rules.--Section 864(g)(2) is amended--
(A) by striking ``research and experimental
expenditures within the meaning of section 174'' in the
first sentence and inserting ``foreign research or
experimental expenditures within the meaning of section
174 or domestic research or experimental expenditures
within the meaning of section 174A'', and
(B) in the last sentence--
(i) by striking ``treated as deferred expenses
under subsection (b) of section 174'' and
inserting ``allowed as an amortization deduction
under section 174(a) or section 174A(c),'', and
(ii) by striking ``such subsection'' and
inserting ``such section (as the case may be)''.
(10) Basis adjustment.--Section 1016(a)(14) is amended by
striking ``deductions as deferred expenses under section
174(b)(1) (relating to research and experimental expenditures)''
and inserting ``deductions under section 174 or 174A(c)''.
(11) Small business stock.--Section 1202(e)(2)(B) is amended
by striking ``which may be treated as research and experimental
expenditures under section 174'' and inserting ``which are
treated as foreign research or experimental expenditures under
section 174 or domestic research or experimental expenditures
under section 174A''.
[[Page 139 STAT. 193]]
(c) <<NOTE: Applicability. Effective dates. 26 USC 174A note.>>
Change in Method of Accounting.--
(1) In general.--The amendments made by subsection (a) shall
be treated as a change in method of accounting for purposes of
section 481 of the Internal Revenue Code of 1986 and--
(A) such change shall be treated as initiated by the
taxpayer,
(B) such change shall be treated as made with the
consent of the Secretary, and
(C) such change shall be applied only on a cut-off
basis for any domestic research or experimental
expenditures (as defined in section 174A(b) of such Code
(as added by this section) and determined by applying
the rules of section 174A(d) of such Code) paid or
incurred in taxable years beginning after December 31,
2024, and no adjustments under section 481(a) shall be
made.
(2) Special rules.--In the case of a taxable year which
begins after December 31, 2024, and ends before the date of the
enactment of this Act--
(A) paragraph (1)(C) shall not apply, and
(B) the change in method of accounting under
paragraph (1) shall be applied on a modified cut-off
basis, taking into account for purposes of section
481(a) of such Code only the domestic research or
experimental expenditures (as defined in section 174A(b)
of such Code (as added by this section) and determined
by applying the rules of section 174A(d) of such Code)
paid or incurred in such taxable year but not allowed as
a deduction in such taxable year.
(d) Clerical Amendment.--The table of sections for part VI of
subchapter B of chapter 1 is amended <<NOTE: 26 USC prec. 161.>> by
inserting after the item relating to section 174 the following new item:
``Sec. 174A. Domestic research or experimental expenditures.''.
(e) <<NOTE: Applicability. 26 USC 174A note.>> Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection or subsection (f)(1), the amendments made by this
section shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2024.
(2) Treatment of foreign research or experimental
expenditures upon disposition.--
(A) In general.--The amendment by subsection
(b)(1)(C)(ii) shall apply to property disposed, retired,
or abandoned after May 12, 2025.
(B) No inference.--The amendment made by subsection
(b)(1)(C)(ii) shall not be construed to create any
inference with respect to the proper application of
section 174(d) of the Internal Revenue Code of 1986 with
respect to taxable years beginning before May 13, 2025.
(3) Coordination with research credit.--The amendment made
by subsection (b)(2)(B) shall apply to taxable years beginning
after December 31, 2024.
(4) No inference with respect to coordination with research
credit for prior periods.--The amendment made by subsection
(b)(2)(B) shall not be construed to create any inference with
respect to the proper application of section 280C(c) of the
Internal Revenue Code of 1986 with respect to taxable years
beginning before January 1, 2025.
[[Page 139 STAT. 194]]
(f) Transition Rules.--
(1) Election for retroactive application by certain small
businesses.--
(A) In general.--At the election of an eligible
taxpayer, paragraphs (1) and (3) of subsection (e) shall
each be applied by substituting ``December 31, 2021''
for ``December 31, 2024''. <<NOTE: Deadline.>> An
election made under this subparagraph shall be made in
such manner as the Secretary may provide and not later
than the date that is 1 year after the date of the
enactment of this Act. The taxpayer shall file an
amended return for each taxable year affected by such
election.
(B) <<NOTE: Definition.>> Eligible taxpayer.--For
purposes of this paragraph, the term ``eligible
taxpayer'' means any taxpayer (other than a tax shelter
prohibited from using the cash receipts and
disbursements method of accounting under section
448(a)(3)) which meets the gross receipts test of
section 448(c) for the first taxable year beginning
after December 31, 2024.
(C) Election treated as change in method of
accounting.--In the case of any taxpayer which elects
the application of subparagraph (A)--
(i) such election may be treated as a change
in method of accounting for purposes of section
481 of such Code for the taxpayer's first taxable
year affected by such election,
(ii) such change shall be treated as initiated
by the taxpayer for such taxable year,
(iii) such change shall be treated as made
with the consent of the Secretary, and
(iv) subsection (c) shall not apply to such
taxpayer.
(D) Election regarding coordination with research
credit. <<NOTE: Effective date. Time period.>> --An
election under section 280C(c)(2) of the Internal
Revenue Code of 1986 (or revocation of such election)
for any taxable year beginning after December 31, 2021,
by an eligible taxpayer making an election under
subparagraph (A) shall not fail to be treated as timely
made (or as made on the return) if made during the 1-
year period beginning on the date of the enactment of
this Act on an amended return for such taxable year.
(2) Election to deduct certain unamortized amounts paid or
incurred in taxable years beginning before january 1, 2025.--
(A) <<NOTE: Time periods.>> In general.--In the
case of any domestic research or experimental
expenditures (as defined in section 174A, as added by
subsection (a)) which are paid or incurred in taxable
years beginning after December 31, 2021, and before
January 1, 2025, and which was charged to capital
account, a taxpayer may elect--
(i) to deduct any remaining unamortized amount
with respect to such expenditures in the first
taxable year beginning after December 31, 2024, or
(ii) to deduct such remaining unamortized
amount with respect to such expenditures ratably
over the 2-taxable year period beginning with the
first taxable year beginning after December 31,
2024.
[[Page 139 STAT. 195]]
(B) Change in method of accounting.--In the case of
a taxpayer who makes an election under this paragraph--
(i) such taxpayer shall be treated as
initiating a change in method of accounting for
purposes of section 481 of the Internal Revenue
Code of 1986 with respect to the expenditures to
which the election applies,
(ii) such change shall be treated as made with
the consent of the Secretary, and
(iii) <<NOTE: Applicability.>> such change
shall be applied only on a cut-off basis for such
expenditures and no adjustments under section
481(a) shall be made.
(C) <<NOTE: Publication. Guidance. Time periods.>>
Regulations.--The Secretary of the Treasury (or the
Secretary's delegate) shall publish such guidance or
regulations as may be necessary to carry out the
purposes of this paragraph, including regulations or
guidance allowing for the deduction allowed under
subparagraph (A) in the case of taxpayers with taxable
years beginning after December 31, 2024, and ending
before the date of the enactment of this Act.
SEC. 70303. MODIFICATION OF LIMITATION ON BUSINESS INTEREST.
(a) In General.--Section 163(j)(8)(A)(v) is amended by striking ``in
the case of taxable years beginning before January 1, 2022,''.
(b) Floor Plan Financing Applicable to Certain Trailers and
Campers.--Section 163(j)(9)(C) is amended by adding at the end the
following new flush sentence:
``Such term shall also include any trailer or camper
which is designed to provide temporary living quarters
for recreational, camping, or seasonal use and is
designed to be towed by, or affixed to, a motor
vehicle.''.
(c) <<NOTE: 26 USC 163 note.>> Effective Date and Special Rule.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
(2) <<NOTE: Time period.>> Special rule for short taxable
years.--The Secretary of the Treasury (or the Secretary's
delegate) may prescribe such rules as are necessary or
appropriate to provide for the application of the amendments
made by this section in the case of any taxable year of less
than 12 months that begins after December 31, 2024, and ends
before the date of the enactment of this Act.
SEC. 70304. EXTENSION AND ENHANCEMENT OF PAID FAMILY AND MEDICAL
LEAVE CREDIT.
(a) In General.--Section 45S is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting the
following:
``(1) In general.--For purposes of section 38, in the case
of an eligible employer, the paid family and medical leave
credit is an amount equal to either of the following (as elected
by such employer):
``(A) The applicable percentage of the amount of
wages paid to qualifying employees with respect to any
period in which such employees are on family and medical
leave.
``(B) If such employer has an insurance policy with
regards to the provision of paid family and medical
leave
[[Page 139 STAT. 196]]
which is in force during the taxable year, the
applicable percentage of the total amount of premiums
paid or incurred by such employer during such taxable
year with respect to such insurance policy.'', and
(B) by adding at the end the following:
``(3) Rate of payment determined without regard to whether
leave is taken.--For purposes of determining the applicable
percentage with respect to paragraph (1)(B), the rate of payment
under the insurance policy shall be determined without regard to
whether any qualifying employees were on family and medical
leave during the taxable year.'',
(2) in subsection (b)(1), by striking ``credit allowed'' and
inserting ``wages taken into account'',
(3) in subsection (c), by striking paragraphs (3) and (4)
and inserting the following:
``(3) Aggregation rule.--
``(A) In general.--Except as provided in
subparagraph (B), all persons which are treated as a
single employer under subsections (b) and (c) of section
414 shall be treated as a single employer.
``(B) Exception.--
``(i) In general.--Subparagraph (A) shall not
apply to any person who establishes to the
satisfaction of the Secretary that such person has
a substantial and legitimate business reason for
failing to provide a written policy described in
paragraph (1) or (2).
``(ii) Substantial and legitimate business
reason. <<NOTE: Definition.>> --For purposes of
clause (i), the term `substantial and legitimate
business reason' shall not include the operation
of a separate line of business, the rate of wages
or category of jobs for employees (or any similar
basis), or the application of State or local laws
relating to family and medical leave, but may
include the grouping of employees of a common law
employer.
``(4) Treatment of benefits mandated or paid for by state or
local governments.--For purposes of this section, any leave
which is paid by a State or local government or required by
State or local law--
``(A) except as provided in subparagraph (B), shall
be taken into account in determining the amount of paid
family and medical leave provided by the employer, and
``(B) shall not be taken into account in determining
the amount of the paid family and medical leave credit
under subsection (a).'',
(4) in subsection (d)--
(A) in paragraph (1), by inserting ``(or, at the
election of the employer, for not less than 6 months)''
after ``1 year or more'',
(B) in paragraph (2)--
(i) by inserting ``, as determined on an
annualized basis (pro-rata for part-time
employees),'' after ``compensation'', and
(ii) by striking the period at the end and
inserting ``, and'', and
(C) by adding at the end the following:
``(3) is customarily employed for not less than 20 hours per
week.'', and
[[Page 139 STAT. 197]]
(5) by striking subsection (i).
(b) No Double Benefit.--Section 280C(a) is amended--
(1) by striking ``45S(a)'' and inserting ``45S(a)(1)(A)'',
and
(2) by inserting after the first sentence the following:
``No deduction shall be allowed for that portion of the premiums
paid or incurred for the taxable year which is equal to that
portion of the paid family and medical leave credit which is
determined for the taxable year under section 45S(a)(1)(B).''.
(c) <<NOTE: 26 USC 45S note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70305. EXCEPTIONS FROM LIMITATIONS ON DEDUCTION FOR BUSINESS
MEALS.
(a) Exception to Denial of Deduction for Business Meals.--Section
274(o), as added by section 13304 of Public Law 115-97, is amended by
striking ``No deduction'' and inserting ``Except in the case of an
expense described in subsection (e)(8) or (n)(2)(C), no deduction''.
(b) Meals Provided on Certain Fishing Boats and at Certain Fish
Processing Facilities Not Subject to 50 Percent Limitation.--Section
274(n)(2)(C) of the Internal Revenue Code of 1986 is amended by striking
``or'' at the end of clause (iii) and by adding at the end the following
new clause:
``(v) provided--
``(I) on a fishing vessel, fish
processing vessel, or fish tender vessel
(as such terms are defined in section
2101 of title 46, United States Code),
or
``(II) at a facility for the
processing of fish for commercial use or
consumption which--
``(aa) is located in the
United States north of 50
degrees north latitude, and
``(bb) is not located in a
metropolitan statistical area
(within the meaning of section
143(k)(2)(B)), or''.
(c) <<NOTE: 26 USC 274 note.>> Effective Date.--The amendments made
by this section shall apply to amounts paid or incurred after December
31, 2025.
SEC. 70306. INCREASED DOLLAR LIMITATIONS FOR EXPENSING OF CERTAIN
DEPRECIABLE BUSINESS ASSETS.
(a) In General.--Section 179(b) is amended--
(1) in paragraph (1), by striking ``$1,000,000'' and
inserting ``$2,500,000'', and
(2) in paragraph (2), by striking ``$2,500,000'' and
inserting ``$4,000,000''.
(b) Conforming Amendments.--Section 179(b)(6)(A) is amended--
(1) by inserting ``(2025 in the case of the dollar amounts
in paragraphs (1) and (2))'' after ``In the case of any taxable
year beginning after 2018'', and
(2) in clause (ii), by striking ``determined by substituting
`calendar year 2017' for `calendar year 2016' in subparagraph
(A)(ii) thereof.'' and inserting "determined by substituting in
subparagraph (A)(ii) thereof-- ``
``(I) in the case of amounts in
paragraphs (1) and (2), `calendar year
2024' for `calendar year 2016', and
[[Page 139 STAT. 198]]
``(II) in the case of the amount in
paragraph (5)(A), `calendar year 2017'
for `calendar year 2016'.''.
(c) <<NOTE: 26 USC 179 note.>> Effective Date.--The amendments made
by this section shall apply to property placed in service in taxable
years beginning after December 31, 2024.
SEC. 70307. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED
PRODUCTION PROPERTY.
(a) In General.--Section 168 is amended by adding at the end the
following new subsection:
``(n) Special Allowance for Qualified Production Property.--
``(1) In general.--In the case of any qualified production
property of a taxpayer making an election under this
subsection--
``(A) the depreciation deduction provided by section
167(a) for the taxable year in which such property is
placed in service shall include an allowance equal to
100 percent of the adjusted basis of the qualified
production property, and
``(B) <<NOTE: Reduction.>> the adjusted basis of
the qualified production property shall be reduced by
the amount of such deduction before computing the amount
otherwise allowable as a depreciation deduction under
this chapter for such taxable year and any subsequent
taxable year.
``(2) Qualified production property.--For purposes of this
subsection--
``(A) <<NOTE: Definition.>> In general.--The term
`qualified production property' means that portion of
any nonresidential real property--
``(i) to which this section applies,
``(ii) which is used by the taxpayer as an
integral part of a qualified production activity,
``(iii) which is placed in service in the
United States or any possession of the United
States,
``(iv) the original use of which commences
with the taxpayer,
``(v) the construction of which begins after
January 19, 2025, and before January 1, 2029,
``(vi) which is designated by the taxpayer in
the election made under this subsection, and
``(vii) which is placed in service before
January 1, 2031.
For purposes of clause (ii), in the case of property
with respect to which the taxpayer is a lessor, property
used by a lessee shall not be considered to be used by
the taxpayer as part of a qualified production activity.
``(B) Special rule for certain property not
previously used in qualified production activities.--
``(i) In general.--In the case of property
acquired by the taxpayer during the period
described in subparagraph (A)(v), the requirements
of clauses (iv) and (v) of subparagraph (A) shall
be treated as satisfied if--
``(I) <<NOTE: Time period.>> such
property was not used in a qualified
production activity (determined without
regard to the second sentence of
subparagraph (D)) by any
[[Page 139 STAT. 199]]
person at any time during the period
beginning on January 1, 2021, and ending
on May 12, 2025,
``(II) such property was not used by
the taxpayer at any time prior to such
acquisition, and
``(III) the acquisition of such
property meets the requirements of
paragraphs (2)(A), (2)(B), (2)(C), and
(3) of section 179(d).
``(ii) Written binding contracts.--For
purposes of determining under clause (i)--
``(I) whether such property is
acquired before the period described in
subparagraph (A)(v), such property shall
be treated as acquired not later than
the date on which the taxpayer enters
into a written binding contract for such
acquisition, and
``(II) whether such property is
acquired after such period, such
property shall be treated as acquired
not earlier than such date.
``(C) Exclusion of office space, etc.--The term
`qualified production property' shall not include that
portion of any nonresidential real property which is
used for offices, administrative services, lodging,
parking, sales activities, research activities, software
development or engineering activities, or other
functions unrelated to the manufacturing, production, or
refining of tangible personal property.
``(D) <<NOTE: Definition.>> Qualified production
activity.--The term `qualified production activity'
means the manufacturing, production, or refining of a
qualified product. The activities of any taxpayer do not
constitute manufacturing, production, or refining of a
qualified product unless the activities of such taxpayer
result in a substantial transformation of the property
comprising the product.
``(E) Production.--The term `production' shall not
include activities other than agricultural production
and chemical production.
``(F) <<NOTE: Definition.>> Qualified product.--The
term `qualified product' means any tangible personal
property if such property is not a food or beverage
prepared in the same building as a retail establishment
in which such property is sold.
``(G) <<NOTE: Applicability.>> Syndication.--For
purposes of subparagraph (A)(iv), rules similar to the
rules of subsection (k)(2)(E)(iii) shall apply.
``(H) Extension of placed in service date under
certain circumstances. <<NOTE: Determination.>> --The
Secretary may extend the date under subparagraph
(A)(vii) with respect to any property that meets the
requirements of clauses (i) through (vi) of subparagraph
(A) if the Secretary determines that an act of God (as
defined in section 101(1) of the Comprehensive
Environmental Response, Compensation, and Liability Act
of 1980) prevents the taxpayer from placing such
property in service before such date.
``(3) <<NOTE: Determination.>> Deduction allowed in
computing minimum tax.--For purposes of determining alternative
minimum taxable income under section 55, the deduction under
section 167 for qualified production property shall be
determined under this section without regard to any adjustment
under section 56.
``(4) Coordination with certain other provisions.--
[[Page 139 STAT. 200]]
``(A) Other special depreciation allowances.--For
purposes of subsections (k)(7), (l)(3)(D), and
(m)(2)(B)(iii)--
``(i) qualified production property shall be
treated as a separate class of property, and
``(ii) the taxpayer shall be treated as having
made an election under such subsections with
respect to such class.
``(B) Alternative depreciation property.--The term
`qualified production property' shall not include any
property to which the alternative depreciation system
under subsection (g)
applies. <<NOTE: Applicability.>> For purposes of
subsection (g)(7)(A), qualified production property to
which this subsection applies shall be treated as
separate nonresidential real property.
``(5) <<NOTE: Time period.>> Recapture.--If, at any time
during the 10-year period beginning on the date that any
qualified production property is placed in service by the
taxpayer, such property ceases to be used as described in
paragraph (2)(A)(ii) and is used by the taxpayer in a productive
use not described in paragraph (2)(A)(ii)--
``(A) <<NOTE: Applicability.>> section 1245 shall
be applied--
``(i) by treating such property as having been
disposed of by the taxpayer as of the first time
such property is so used in a productive use not
described in paragraph (2)(A)(ii), and
``(ii) by treating the amount described in
subparagraph (B) of section 1245(a)(1) with
respect to such disposition as being not less than
the amount described in subparagraph (A) of such
section, and
``(B) <<NOTE: Adjustment.>> the basis of the
taxpayer in such property, and the taxpayer's allowance
for depreciation with respect to such property, shall be
appropriately adjusted to take into account amounts
recognized by reason of subparagraph (A).
``(6) Election.--
``(A) In general.--An election under this subsection
for any taxable year shall--
``(i) specify the nonresidential real property
subject to the election and the portion of such
property designated under paragraph (2)(A)(vi),
and
``(ii) except as otherwise provided by the
Secretary, be made on the taxpayer's return of the
tax imposed by this chapter for the taxable year.
Such election shall be made in such manner as the
Secretary may prescribe by regulations or other
guidance.
``(B) Election.--Any election made under this
subsection, and any specification contained in any such
election, may not be revoked except with the consent of
the Secretary (and the Secretary shall provide such
consent only in extraordinary circumstances).
``(7) <<NOTE: Guidance.>> Regulations.--The Secretary shall
issue such regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this subsection,
including regulations or other guidance--
``(A) providing rules for regarding what constitutes
substantial transformation of property which are
consistent with guidance provided under section 954(d),
and
[[Page 139 STAT. 201]]
``(B) <<NOTE: Applicability.>> providing for the
application of paragraph (5) with respect to a change in
use described in such paragraph by a transferee
following a fully or partially tax free transfer of
qualified production property.''.
(b) Treatment of Qualified Production Property as Section 1245
Property.--Section 1245(a)(3) is amended by striking ``or'' at the end
of subparagraph (E), by striking the period at the end of subparagraph
(F) and inserting ``, or'', and by adding at the end the following new
subparagraph:
``(G) any qualified production property (as defined
in section 168(n)(2)).''.
(c) <<NOTE: 26 USC 168 note.>> Effective Date.--The amendments made
by this section shall apply to property placed in service after the date
of the enactment of this Act.
SEC. 70308. ENHANCEMENT OF ADVANCED MANUFACTURING INVESTMENT
CREDIT.
(a) In General.--Section 48D(a) is amended by striking ``25
percent'' and inserting ``35 percent''.
(b) <<NOTE: 26 USC 48D note.>> Effective Date.--The amendments made
by this section shall apply to property placed in service after December
31, 2025.
SEC. 70309. SPACEPORTS ARE TREATED LIKE AIRPORTS UNDER EXEMPT
FACILITY BOND RULES.
(a) In General.--Section 142(a)(1) is amended to read as follows:
``(1) airports and spaceports,''.
(b) Treatment of Ground Leases.--Section 142(b)(1) is amended by
adding at the end the following new subparagraph:
``(C) Special rule for spaceport ground leases.--For
purposes of subparagraph (A), spaceport property located
on land leased by a governmental unit from the United
States shall not fail to be treated as owned by a
governmental unit if the requirements of this paragraph
are met by the lease and any subleases of the
property.''.
(c) Definition of Spaceport.--Section 142 is amended by adding at
the end the following new subsection:
``(p) Spaceport.--
``(1) In general.--For purposes of subsection (a)(1), the
term `spaceport' means any facility located at or in close
proximity to a launch site or reentry site used for--
``(A) manufacturing, assembling, or repairing
spacecraft, space cargo, other facilities described in
this paragraph, or any component of the foregoing,
``(B) flight control operations,
``(C) providing launch services and reentry
services, or
``(D) transferring crew, spaceflight participants,
or space cargo to or from spacecraft.
``(2) Additional terms.--For purposes of paragraph (1)--
``(A) Space cargo.--The term `space cargo' includes
satellites, scientific experiments, other property
transported into space, and any other type of payload,
whether or not such property returns from space.
``(B) Spacecraft.--The term `spacecraft' means a
launch vehicle or a reentry vehicle.
``(C) Other terms.--The terms `launch site', `crew',
`space flight participant', `launch services', `launch
vehicle',
[[Page 139 STAT. 202]]
`payload', `reentry services', `reentry site', a
`reentry vehicle' shall have the respective meanings
given to such terms by section 50902 of title 51, United
States Code (as in effect on the date of enactment of
this subsection).
``(3) Public use requirement.--A facility shall not be
required to be available for use by the general public to be
treated as a spaceport for purposes of this section.
``(4) Manufacturing facilities and industrial parks
allowed.--With respect to spaceports, subsection (c)(2)(E) shall
not apply to spaceport property described in paragraph
(1)(A).''.
(d) Exception From Federally Guaranteed Bond Prohibition.--Section
149(b)(3) is amended by adding at the end the following new
subparagraph:
``(F) Exception for spaceports.--A bond shall not be
treated as federally guaranteed merely because of the
payment of rent, user fees, or other charges by the
United States (or any agency or instrumentality thereof)
in exchange for the use of the spaceport by the United
States (or any agency or instrumentality thereof).''.
(e) Conforming Amendment.--The heading for section 142(c) is amended
by inserting ``Spaceports,'' after ``Airports,''.
(f) <<NOTE: 26 USC 142 note.>> Effective Date.--The amendments made
by this section shall apply to obligations issued after the date of the
enactment of this Act.
Subchapter B--Permanent America-first International Tax Reforms
PART I--FOREIGN TAX CREDIT
SEC. 70311. MODIFICATIONS RELATED TO FOREIGN TAX CREDIT
LIMITATION.
(a) Rules for Allocation of Certain Deductions to Foreign Source Net
CFC Tested Income for Purposes of Foreign Tax Credit Limitation.--
Section 904(b) is amended by adding at the end the following new
paragraph:
``(5) Deductions treated as allocable to foreign source net
cfc tested income.--Solely for purposes of the application of
subsection (a) with respect to amounts described in subsection
(d)(1)(A), the taxpayer's taxable income from sources without
the United States shall be determined by allocating and
apportioning--
``(A) any deduction allowed under section
250(a)(1)(B) (and any deduction allowed under section
164(a)(3) for taxes imposed on amounts described in
section 250(a)(1)(B)) to such income,
``(B) no amount of interest expense or research and
experimental expenditures to such income, and
``(C) any other deduction to such income only if
such deduction is directly allocable to such income.
Any amount or deduction which would (but for subparagraphs (B)
and (C)) have been allocated or apportioned to such income shall
only be allocated or apportioned to income which is from sources
within the United States.''.
(b) Other Modifications.--
(1) Section 904(d)(2)(H)(i) is amended by striking
``paragraph (1)(B)'' and inserting ``paragraph (1)(D)''.
[[Page 139 STAT. 203]]
(2) Section 904(d)(4)(C)(ii) is amended by striking
``paragraph (1)(A)'' and inserting ``paragraph (1)(C)''.
(3) Section 951A(f)(1)(A) is amended by striking
``904(h)(1)'' and inserting ``904(h)''.
(c) <<NOTE: 26 USC 904 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70312. MODIFICATIONS TO DETERMINATION OF DEEMED PAID CREDIT
FOR TAXES PROPERLY ATTRIBUTABLE TO
TESTED INCOME.
(a) Increase in Deemed Paid Credit.--
(1) In general.--Section 960(d)(1) is amended by striking
``80 percent'' and inserting ``90 percent''.
(2) Gross up for deemed paid foreign tax credit.--Section 78
is amended--
(A) by striking ``subsections (a), (b), and (d)''
and inserting ``subsections (a) and (d)'', and
(B) by striking ``80 percent'' and inserting ``90
percent''.
(b) Disallowance of Foreign Tax Credit With Respect to Distributions
of Previously Taxed Net CFC Tested Income.--Section 960(d) is amended by
adding at the end the following new paragraph:
``(4) Disallowance of foreign tax credit with respect to
distributions of previously taxed net cfc tested income.--No
credit shall be allowed under section 901 for 10 percent of any
foreign income taxes paid or accrued (or deemed paid under
subsection (b)(1)) with respect to any amount excluded from
gross income under section 959(a) by reason of an inclusion in
gross income under section 951A(a).''.
(c) <<NOTE: 26 USC 78 note.>> Effective Dates.--
(1) In general.--The amendments made by subsection (a) shall
apply to taxable years beginning after December 31, 2025.
(2) Disallowance.--The amendment made by subsection (b)
shall apply to foreign income taxes paid or accrued (or deemed
paid under section 960(b)(1) of the Internal Revenue Code of
1986) with respect to any amount excluded from gross income
under section 959(a) of such Code by reason of an inclusion in
gross income under section 951A(a) of such Code after June 28,
2025.
SEC. 70313. SOURCING CERTAIN INCOME FROM THE SALE OF INVENTORY
PRODUCED IN THE UNITED STATES.
(a) In General.--Section 904(b), as amended by section 70311, is
amended by adding at the end the following new paragraph:
``(6) Source rules for certain inventory produced in the
united states and sold through foreign branches.--For purposes
of this section, if a United States person maintains an office
or other fixed place of business in a foreign country
(determined under rules similar to the rules of section
864(c)(5)), the portion of income which--
``(A) is from the sale or exchange outside the
United States of inventory property (within the meaning
of section 865(i)(1))--
``(i) which is produced in the United States,
``(ii) which is for use outside the United
States, and
[[Page 139 STAT. 204]]
``(iii) to which the third sentence of section
863(b) applies, and
``(B) is attributable (determined under rules
similar to the rules of section 864(c)(5)) to such
office or other fixed place of business,
shall be treated as from sources without the United States,
except that the amount so treated shall not exceed 50 percent of
the income from the sale or exchange of such inventory
property.''.
(b) <<NOTE: 26 USC 904 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2025.
PART II--FOREIGN-DERIVED DEDUCTION ELIGIBLE INCOME AND NET CFC TESTED
INCOME
SEC. 70321. MODIFICATION OF DEDUCTION FOR FOREIGN-DERIVED
DEDUCTION ELIGIBLE INCOME AND NET CFC
TESTED INCOME.
(a) In General.--Section 250(a) is amended--
(1) by striking ``37.5 percent'' in paragraph (1)(A) and
inserting ``33.34 percent'',
(2) by striking ``50 percent'' in paragraph (1)(B) and
inserting ``40 percent'', and
(3) by striking paragraph (3).
(b) <<NOTE: 26 USC 250 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70322. DETERMINATION OF DEDUCTION ELIGIBLE INCOME.
(a) Sales or Other Dispositions of Certain Property.--
(1) In general.--Section 250(b)(3)(A)(i) is amended--
(A) by striking ``and'' at the end of subclause (V),
(B) by striking ``over'' at the end of subclause
(VI) and inserting ``and'', and
(C) by adding at the end the following new
subclause:
``(VII) except as otherwise provided
by the Secretary, any income and gain
from the sale or other disposition
(including pursuant to the deemed sale
or other deemed disposition or a
transaction subject to section 367(d))
of--
``(aa) intangible property
(as defined in section
367(d)(4)), and
``(bb) any other property of
a type that is subject to
depreciation, amortization, or
depletion by the seller, over''.
(2) Conforming amendment.--Section 250(b)(5)(E) is amended
by inserting ``(other than paragraph (3)(A)(i)(VII))'' after
``For purposes of this subsection''.
(3) <<NOTE: 26 USC 250 note.>> Effective date.--The
amendments made by this subsection shall apply to sales or other
dispositions (including pursuant to deemed sales or other deemed
dispositions or a transaction subject to section 367(d) of the
Internal Revenue Code of 1986) occurring after June 16, 2025.
(b) Expense Apportionment Limited to Properly Allocable Expenses.--
[[Page 139 STAT. 205]]
(1) In general.--Section 250(b)(3)(A)(ii) is amended to read
as follows:
``(ii) expenses and deductions (including
taxes), other than interest expense and research
or experimental expenditures, properly allocable
to such gross income.''.
(2) <<NOTE: 26 USC 250 note.>> Effective date.--The
amendment made by this subsection shall apply to taxable years
beginning after December 31, 2025.
SEC. 70323. RULES RELATED TO DEEMED INTANGIBLE INCOME.
(a) Taxation of Net CFC Tested Income.--
(1) In general.--Section 951A(a) is amended by striking
``global intangible low-taxed income'' and inserting ``net CFC
tested income''.
(2) Repeal of tax-free deemed return on foreign
investments.--Section 951A, as amended by the preceding
provisions of this Act, is amended by striking subsections (b)
and (d) and by redesignating subsections (c), (e), and (f) as
subsections (b), (c), and (d), respectively.
(3) Conforming amendments.--
(A)(i) Section 250 is amended by striking ``global
intangible low-taxed income'' each place it appears in
subsections (a)(1)(B)(i), (a)(2), and (b)(3)(A)(i)(II)
and inserting ``net CFC tested income''.
(ii) The heading for section 250 of such Code is
amended by striking ``global intangible low-taxed
income'' and inserting ``net cfc tested income''.
(iii) The item relating to section 250 in the table
of sections for part VII of subchapter B of chapter 1 of
such Code <<NOTE: 26 USC prec. 241.>> is amended by
striking ``global intangible low-taxed income'' and
inserting ``net CFC tested income''.
(B) Section 951A(c)(1), as redesignated by paragraph
(2), is amended by striking ``subsections (b),
(c)(1)(A), and (c)(1)(B)'' and inserting ``subsections
(b)(1)(A) and (b)(1)(B)''.
(C) Section 951A(d), as redesignated by paragraph
(2), is amended--
(i) by striking ``global intangible low-taxed
income'' each place it appears and inserting ``net
CFC tested income'', and
(ii) by striking ``subsection (c)(1)(A)'' in
paragraph (2)(B)(ii) and inserting ``subsection
(b)(1)(A)''.
(D) Section 960(d)(2) is amended--
(i) by striking ``global intangible low-taxed
income'' in subparagraph (A) and inserting ``net
CFC tested income'', and
(ii) by striking ``section 951A(c)(1)(A)'' in
subparagraph (B) and inserting ``section
951A(b)(1)(A)''.
(E)(i) The heading for section 951A is amended by
striking ``global intangible low-taxed income'' and
inserting ``net cfc tested income''.
(ii) The item relating to section 951A in the table
of sections for subpart F of part III of subchapter N of
chapter 1 <<NOTE: 26 USC prec. 951.>> is amended by
striking ``Global intangible low-taxed income'' and
inserting ``Net CFC tested income''.
(b) Deduction for Foreign-derived Deduction Eligible Income.--
[[Page 139 STAT. 206]]
(1) In general.--Section 250(a)(1)(A) is amended by striking
``foreign-derived intangible income'' and inserting ``foreign-
derived deduction eligible income''.
(2) Conforming amendments.--
(A) Section 250(a)(2) is amended by striking
``foreign-derived intangible income'' each place it
appears and inserting ``foreign-derived deduction
eligible income''.
(B) Section 250(b), as amended by subsection (a), is
amended--
(i) by striking paragraphs (1) and (2),
(ii) by redesignating paragraphs (4) and (5)
as paragraphs (1) and (2), respectively, and by
moving such paragraphs before paragraph (3),
(iii) in paragraph (2)(B)(ii), as so
redesignated, by striking ``paragraph (4)(B)'' and
inserting ``paragraph (1)(B)'', and
(iv) by striking ``Intangible'' in the heading
thereof and inserting ``Deduction Eligible''.
(C)(i) The heading for section 250 is amended by
striking ``intangible'' in the heading thereof and
inserting ``deduction eligible''.
(ii) The heading for section 172(d)(9) is amended by
striking ``intangible'' and inserting ``deduction
eligible''.
(iii) The item relating to section 250 in the table
of sections for part VIII of subchapter B of chapter
1 <<NOTE: 26 USC prec. 241.>> is amended by striking
``intangible'' and inserting ``deduction eligible''.
(c) <<NOTE: 26 USC 172 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
PART III--BASE EROSION MINIMUM TAX
SEC. 70331. EXTENSION AND MODIFICATION OF BASE EROSION MINIMUM TAX
AMOUNT.
(a) In General.--Section 59A(b) is amended--
(1) by striking ``10 percent'' in paragraph (1) and
inserting ``10.5 percent'', and
(2) by striking paragraph (2) and by redesignating
paragraphs (3) and (4) as paragraphs (2) and (3), respectively.
(b) Conforming Amendments.--
(1) Section 59A(b)(1) is amended by striking ``Except as
provided in paragraphs (2) and (3)'' and inserting ``Except as
provided in paragraph (2)''.
(2) Section 59A(b)(2), as redesignated by subsection (a)(2),
is amended by striking ``the percentage otherwise in effect
under paragraphs (1)(A) and (2)(A) shall each be increased'' and
inserting ``the percentages otherwise in effect under paragraph
(1)(A) shall be increased''.
(3) Section 59A(e)(1)(C) is amended by striking ``in the
case of a taxpayer described in subsection (b)(3)(B)'' and
inserting ``in the case of a taxpayer described in subsection
(b)(2)(B)''.
(c) Other Modifications.--
(1) Section 59A(b)(2)(B)(ii), as redesignated by subsection
(a)(2), is amended by striking ``registered securities dealer''
and inserting ``securities dealer registered''.
[[Page 139 STAT. 207]]
(2) Section 59A(h)(2)(B) is amended by striking ``section
6038B(b)(2)'' and inserting ``section 6038A(b)(2)''.
(3) Section 59A(i)(2) is amended--
(A) by striking ``subsection (g)'' and inserting
``subsection (h)'', and
(B) by striking ``subsection (g)(3)'' and inserting
``subsection (h)(3)''.
(d) <<NOTE: 26 USC 59A note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
PART IV--BUSINESS INTEREST LIMITATION
SEC. 70341. COORDINATION OF BUSINESS INTEREST LIMITATION WITH
INTEREST CAPITALIZATION PROVISIONS.
(a) In General.--Section 163(j) is amended by redesignating
paragraphs (10) and (11) as paragraphs (11) and (12) and by inserting
after paragraph (9) the following:
``(10) Coordination with interest capitalization
provisions.--
``(A) <<NOTE: Applicability.>> In general.--In
applying this subsection--
``(i) the limitation under paragraph (1) shall
apply to business interest without regard to
whether the taxpayer would otherwise deduct such
business interest or capitalize such business
interest under an interest capitalization
provision, and
``(ii) any reference in this subsection to a
deduction for business interest shall be treated
as including a reference to the capitalization of
business interest.
``(B) Amount allowed applied first to capitalized
interest.--The amount allowed after taking into account
the limitation described in paragraph (1)--
``(i) shall be applied first to the aggregate
amount of business interest which would otherwise
be capitalized, and
``(ii) the remainder (if any) shall be applied
to the aggregate amount of business interest which
would be deducted.
``(C) Treatment of disallowed interest carried
forward.--No portion of any business interest carried
forward under paragraph (2) from any taxable year to any
succeeding taxable year shall, for purposes of this
title (including any interest capitalization provision
which previously applied to such portion) be treated as
interest to which an interest capitalization provision
applies.
``(D) <<NOTE: Definition.>> Interest capitalization
provision.--For purposes of this section, the term
`interest capitalization provision' means any provision
of this subtitle under which interest--
``(i) is required to be charged to capital
account, or
``(ii) may be deducted or charged to capital
account.''.
(b) Certain Capitalized Interest Not Treated as Business Interest.--
Section 163(j)(5) is amended by adding at the end the following new
sentence: ``Such term shall not include any interest which is
capitalized under section 263(g) or 263A(f).''.
[[Page 139 STAT. 208]]
(c) Regulatory Authority.--Section 163(j), as amended by subsection
(a), is amended by redesignating paragraphs (11) and (12) as paragraphs
(12) and (13) and by inserting after paragraph (10) the following:
``(11) <<NOTE: Guidance. Determination.>> Regulatory
authority.--The Secretary shall issue such regulations or
guidance as may be necessary or appropriate to carry out the
purposes of this subsection, including regulations or guidance
to determine which business interest is taken into account under
this subsection and section 59A(c)(3).''.
(d) <<NOTE: 26 USC 163 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70342. DEFINITION OF ADJUSTED TAXABLE INCOME FOR BUSINESS
INTEREST LIMITATION.
(a) In General.--Subparagraph (A) of section 163(j)(8) is amended--
(1) by striking ``and'' at the end of clause (iv), and
(2) by adding at the end the following new clause:
``(vi) the amounts included in gross income
under sections 951(a), 951A(a), and 78 (and the
portion of the deductions allowed under sections
245A(a) (by reason of section 964(e)(4)) and
250(a)(1)(B) by reason of such inclusions), and''.
(b) <<NOTE: 26 USC 163 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
PART V--OTHER INTERNATIONAL TAX REFORMS
SEC. 70351. PERMANENT EXTENSION OF LOOK-THRU RULE FOR RELATED
CONTROLLED FOREIGN CORPORATIONS.
(a) In General.--Section 954(c)(6)(C) is amended by striking ``and
before January 1, 2026,''.
(b) <<NOTE: 26 USC 954 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years of foreign corporations
beginning after December 31, 2025.
SEC. 70352. REPEAL OF ELECTION FOR 1-MONTH DEFERRAL IN
DETERMINATION OF TAXABLE YEAR OF
SPECIFIED FOREIGN CORPORATIONS.
(a) In General.--Section 898(c) is amended by striking paragraph (2)
and redesignating paragraph (3) as paragraph (2).
(b) <<NOTE: 26 USC 898 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years of specified foreign
corporations beginning after November 30, 2025.
(c) Transition Rule.--
(1) <<NOTE: Effective date.>> In general.--In the case of a
corporation that is a specified foreign corporation as of
November 30, 2025, such corporation's first taxable year
beginning after such date shall end at the same time as the
first required year (within the meaning of section 898(c)(1) of
the Internal Revenue Code of 1986) ending after such date. If
any specified foreign corporation is required by the amendments
made by this section to change its taxable year for its first
taxable year beginning after November 30, 2025--
[[Page 139 STAT. 209]]
(A) such change shall be treated as initiated by
such corporation,
(B) such change shall be treated as having been made
with the consent of the Secretary, and
(C) <<NOTE: Regulations. Guidance. Allocations.>>
the Secretary shall issue regulations or other guidance
for allocating foreign taxes that are paid or accrued in
such first taxable year and the succeeding taxable year
among such taxable years in the manner the Secretary
determines appropriate to carry out the purposes of this
section.
(2) <<NOTE: Definition.>> Secretary.--For purposes of this
subsection, the term ``Secretary'' means the Secretary of the
Treasury or the Secretary's delegate.
SEC. 70353. RESTORATION OF LIMITATION ON DOWNWARD ATTRIBUTION OF
STOCK OWNERSHIP IN APPLYING
CONSTRUCTIVE OWNERSHIP RULES.
(a) In General.--Section 958(b) is amended--
(1) by inserting after paragraph (3) the following:
``(4) Subparagraphs (A), (B), and (C) of section 318(a)(3)
shall not be applied so as to consider a United States person as
owning stock which is owned by a person who is not a United
States person.'', and
(2) by striking ``Paragraph (1)'' in the last sentence and
inserting ``Paragraphs (1) and (4)''.
(b) Foreign Controlled United States Shareholders.--Subpart F of
part III of subchapter N of chapter 1 is amended by inserting after
section 951A the following new section:
``SEC. 951B. <<NOTE: Definitions. 26 USC 951B.>> AMOUNTS INCLUDED
IN GROSS INCOME OF FOREIGN CONTROLLED
UNITED STATES SHAREHOLDERS.
``(a) <<NOTE: Applicability.>> In General.--In the case of any
foreign controlled United States shareholder of a foreign controlled
foreign corporation--
``(1) this subpart (other than sections 951A, 951(b), and
957) shall be applied with respect to such shareholder
(separately from, and in addition to, the application of this
subpart without regard to this section)--
``(A) by substituting `foreign controlled United
States shareholder' for `United States shareholder' each
place it appears therein, and
``(B) by substituting `foreign controlled foreign
corporation' for `controlled foreign corporation' each
place it appears therein, and
``(2) section 951A (and such other provisions of this
subpart as provided by the Secretary) shall be applied with
respect to such shareholder--
``(A) by treating each reference to `United States
shareholder' in such section as including a reference to
such shareholder, and
``(B) by treating each reference to `controlled
foreign corporation' in such section as including a
reference to such foreign controlled foreign
corporation.
``(b) Foreign Controlled United States Shareholder.--For purposes of
this section, the term `foreign controlled United States shareholder'
means, with respect to any foreign corporation, any United States person
which would be a United States shareholder with respect to such foreign
corporation if--
[[Page 139 STAT. 210]]
``(1) section 951(b) were applied by substituting `more than
50 percent' for `10 percent or more', and
``(2) section 958(b) were applied without regard to
paragraph (4) thereof.
``(c) Foreign Controlled Foreign Corporation.--For purposes of this
section, the term `foreign controlled foreign corporation' means a
foreign corporation, other than a controlled foreign corporation, which
would be a controlled foreign corporation if section 957(a) were
applied--
``(1) by substituting `foreign controlled United States
shareholders' for `United States shareholders', and
``(2) by substituting `section 958(b) (other than paragraph
(4) thereof)' for `section 958(b)'.
``(d) <<NOTE: Guidance.>> Regulations.--The Secretary shall
prescribe such regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section, including
regulations or other guidance--
``(1) to treat a foreign controlled United States
shareholder or a foreign controlled foreign corporation as a
United States shareholder or as a controlled foreign
corporation, respectively, for purposes of provisions of this
title other than this subpart (including any reporting
requirement), and
``(2) with respect to the treatment of foreign controlled
foreign corporations that are passive foreign investment
companies (as defined in section 1297).''.
(c) Clerical Amendment.--The table of sections for subpart F of part
III of subchapter N of chapter 1 <<NOTE: 26 USC prec. 951.>> is amended
by inserting after the item relating to section 951A the following new
item:
``Sec. 951B. Amounts included in gross income of foreign controlled
United States shareholders.''.
(d) <<NOTE: 26 USC 951B note.>> Effective Date.--The amendments
made by this section shall apply to taxable years of foreign
corporations beginning after December 31, 2025.
(e) <<NOTE: 26 USC 951B note.>> Special Rule.--
(1) In general.--Except to the extent provided by the
Secretary of the Treasury (or the Secretary's delegate), the
effective date of any amendment to the Internal Revenue Code of
1986 shall be applied by treating references to United States
shareholders as including references to foreign controlled
United States shareholders, and by treating references to
controlled foreign corporations as including references to
foreign controlled foreign corporations.
(2) Definitions.--Any term used in paragraph (1) which is
used in subpart F of part III of subchapter N of chapter 1 of
the Internal Revenue Code of 1986 (as amended by this section)
shall have the meaning given such term in such subpart.
(f) <<NOTE: 26 USC 951B note.>> No Inference.--The amendments made
by this section shall not be construed to create any inference with
respect to the proper application of any provision of the Internal
Revenue Code of 1986 with respect to taxable years beginning before the
taxable years to which such amendments apply.
SEC. 70354. MODIFICATIONS TO PRO RATA SHARE RULES.
(a) In General.--Subsection (a) of section 951 is amended to read as
follows:
``(a) Amounts Included.--
[[Page 139 STAT. 211]]
``(1) In general.--If a foreign corporation is a controlled
foreign corporation at any time during a taxable year of the
foreign corporation (in this subsection referred to as the `CFC
year')--
``(A) each United States shareholder which owns
(within the meaning of section 958(a)) stock in such
corporation on any day during the CFC year shall include
in gross income such shareholder's pro rata share
(determined under paragraph (2)) of the corporation's
subpart F income for the CFC year, and
``(B) each United States shareholder which owns
(within the meaning of section 958(a)) stock in such
corporation on the last day, in the CFC year, on which
such corporation is a controlled foreign corporation
shall include in gross income the amount determined
under section 956 with respect to such shareholder for
the CFC year (but only to the extent not excluded from
gross income under section 959(a)(2)).
``(2) Pro rata share of subpart f income.--A United States
shareholder's pro rata share of a controlled foreign
corporation's subpart F income for a CFC year shall be the
portion of such income which is attributable to--
``(A) the stock of such corporation owned (within
the meaning of section 958(a)) by such shareholder, and
``(B) any period of the CFC year during which--
``(i) such shareholder owned (within the
meaning of section 958(a)) such stock,
``(ii) such shareholder was a United States
shareholder of such corporation, and
``(iii) such corporation was a controlled
foreign corporation.
``(3) Taxable year of inclusion.--Any amount required to be
included in gross income by a United States shareholder under
paragraph (1) with respect to a CFC year shall be included in
gross income for the shareholder's taxable year which includes
the last day on which the shareholder owns (within the meaning
of section 958(a)) stock in the controlled foreign corporation
during such CFC year.
``(4) <<NOTE: Guidance.>> Regulatory authority.--The
Secretary shall prescribe such regulations or other guidance as
may be necessary or appropriate to carry out the purposes of
this subsection, including regulations or other guidance
allowing taxpayers to elect, or requiring taxpayers, to close
the taxable year of a controlled foreign corporation upon a
direct or indirect disposition of stock of such corporation.''.
(b) Coordination With Section 951A.--
(1) Tested income.--Section 951A(b), as redesignated by
section 70323(a)(2), is amended--
(A) in paragraph (1)(A), by striking ``(determined
for each taxable year of such controlled foreign
corporation which ends in or with such taxable year of
such United States shareholder)'', and
(B) in paragraph (1)(B), by striking ``(determined
for each taxable year of such controlled foreign
corporation which ends in or with such taxable year of
such United States shareholder)''.
[[Page 139 STAT. 212]]
(2) Pro rata share.--Section 951A(c), as redesignated by
section 70323(a)(2), is amended--
(A) in paragraph (1), by striking ``in which or with
which the taxable year of the controlled foreign
corporation ends'' and inserting ``determined under
section 951(a)(3)'', and
(B) in paragraph (2), by striking ``the last day in
the taxable year of such foreign corporation on which
such foreign corporation is a controlled foreign
corporation'' and inserting ``any day in such taxable
year''.
(c) <<NOTE: 26 USC 951 note.>> Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after
December 31, 2025.
(2) Transition rule for dividends.--Except to the extent
provided by the Secretary of the Treasury (or the Secretary's
delegate), a dividend paid (or deemed paid) by a controlled
foreign corporation shall not be treated as a dividend for
purposes of applying section 951(a)(2)(B) of the Internal
Revenue Code of 1986 (as in effect before the amendments made by
this section) if--
(A) such dividend--
(i) was paid (or deemed paid) on or before
June 28, 2025, during the taxable year of such
controlled foreign corporation which includes such
date and the United States shareholder described
in section 951(a)(1) of such Code (as so in
effect) did not own (within the meaning of section
958(a) of such Code) the stock of such controlled
foreign corporation during the portion of such
taxable year on or before June 28, 2025, or
(ii) was paid (or deemed paid) after June 28,
2025, and before such controlled foreign
corporation's first taxable year beginning after
December 31, 2025, and
(B) such dividend does not increase the taxable
income of a United States person that is subject to
Federal income tax for the taxable year (including by
reason of a dividends received deduction, an exclusion
from gross income, or an exclusion from subpart F
income).
CHAPTER 4--INVESTING IN AMERICAN FAMILIES, COMMUNITIES, AND SMALL
BUSINESSES
Subchapter A--Permanent Investments in Families and Children
SEC. 70401. ENHANCEMENT OF EMPLOYER-PROVIDED CHILD CARE CREDIT.
(a) Increase of Amount of Qualified Child Care Expenditures Taken
Into Account.--Section 45F(a)(1) is amended by striking ``25 percent''
and inserting ``40 percent (50 percent in the case of an eligible small
business)''.
(b) Increase of Maximum Credit Amount.--Subsection (b) of section
45F is amended to read as follows:
``(b) Dollar Limitation.--
[[Page 139 STAT. 213]]
``(1) In general.--The credit allowable under subsection (a)
for any taxable year shall not exceed $500,000 ($600,000 in the
case of an eligible small business).
``(2) <<NOTE: Effective date.>> Inflation adjustment.--In
the case of any taxable year beginning after 2026, the $500,000
and $600,000 amounts in paragraph (1) shall each be increased by
an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the
taxable year begins, determined by substituting
`calendar year 2025' for `calendar year 2016' in
subparagraph (A)(ii) thereof.''.
(c) Eligible Small Business.--Section 45F(c) is amended by adding at
the end the following new paragraph:
``(4) <<NOTE: Definition.>> Eligible small business.--The
term `eligible small business' means a business that meets the
gross receipts test of section 448(c), determined--
``(A) by substituting `5-taxable-year' for `3-
taxable-year' in paragraph (1) thereof, and
``(B) by substituting `5-year' for `3-year' in
paragraph (3)(A) thereof.''.
(d) Credit Allowed for Third-party Intermediaries.--Section
45F(c)(1)(A)(iii) is amended by inserting ``, or under a contract with
an intermediate entity that contracts with one or more qualified child
care facilities to provide such child care services'' before the period
at the end.
(e) Treatment of Jointly Owned or Operated Child Care Facility.--
Section 45F(c)(2) is amended by adding at the end the following new
subparagraph:
``(C) Treatment of jointly owned or operated child
care facility.--A facility shall not fail to be treated
as a qualified child care facility of the taxpayer
merely because such facility is jointly owned or
operated by the taxpayer and other persons.''.
(f) Regulations and Guidance.--Section 45F is amended by adding at
the end the following new subsection:
``(g) Regulations and Guidance.--The Secretary shall issue such
regulations or other guidance as may be necessary to carry out the
purposes of this section, including guidance to carry out the purposes
of paragraphs (1)(A)(iii) and (2)(C) of subsection (c).''.
(g) <<NOTE: 26 USC 45F note.>> Effective Date.--The amendments made
by this section shall apply to amounts paid or incurred after December
31, 2025.
SEC. 70402. ENHANCEMENT OF ADOPTION CREDIT.
(a) In General.--Section 23(a) is amended by adding at the end the
following new paragraph:
``(4) Portion of credit refundable.--So much of the credit
allowed under paragraph (1) as does not exceed $5,000 shall be
treated as a credit allowed under subpart C and not as a credit
allowed under this subpart.''.
(b) Adjustments for Inflation.--Section 23(h) is amended to read as
follows:
``(h) Adjustments for Inflation.--
``(1) <<NOTE: Effective date.>> In general.--In the case of
a taxable year beginning after December 31, 2002, each of the
dollar amounts in paragraphs (3) and (4) of subsection (a) and
paragraphs (1) and
[[Page 139 STAT. 214]]
(2)(A)(i) of subsection (b) shall be increased by an amount
equal to--
``(A) such dollar amount, multiplied by
``(B) <<NOTE: Determination.>> the cost-of-living
adjustment determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2001' for
`calendar year 2016' in subparagraph (A)(ii) thereof.
``(2) Rounding.--If any amount as increased under paragraph
(1) is not a multiple of $10, such amount shall be rounded to
the nearest multiple of $10.
``(3) <<NOTE: Applicability.>> Special rule for refundable
portion.--In the case of the dollar amount in subsection (a)(4),
paragraph (1) shall be applied--
``(A) by substituting `2025' for `2002' in the
matter preceding subparagraph (A), and
``(B) by substituting `calendar year 2024' for
`calendar year 2001' in subparagraph (B) thereof.''.
(c) Exclusion of Refundable Portion of Credit From Carryforward.--
Section 23(c)(1) is amended by striking ``credit allowable under
subsection (a)'' and inserting ``portion of the credit allowable under
subsection (a) which is allowed under this subpart''.
(d) <<NOTE: 26 USC 23 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2024.
SEC. 70403. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF
DETERMINING WHETHER A CHILD HAS
SPECIAL NEEDS FOR PURPOSES OF THE
ADOPTION CREDIT.
(a) In General.--Section 23(d)(3) is amended--
(1) in subparagraph (A), by inserting ``or Indian tribal
government'' after ``a State'', and
(2) in subparagraph (B), by inserting ``or Indian tribal
government'' after ``such State''.
(b) <<NOTE: 26 USC 23 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2024.
SEC. 70404. ENHANCEMENT OF THE DEPENDENT CARE ASSISTANCE PROGRAM.
(a) In General.--Section 129(a)(2)(A) is amended by striking
``$5,000 ($2,500'' and inserting ``$7,500 ($3,750''.
(b) <<NOTE: 26 USC 129 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70405. ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX CREDIT.
(a) In General.--Paragraph (2) of section 21(a) is amended to read
as follows:
``(2) Applicable percentage defined.--For purposes of
paragraph (1), the term `applicable percentage' means 50
percent--
``(A) reduced (but not below 35 percent) by 1
percentage point for each $2,000 or fraction thereof by
which the taxpayer's adjusted gross income for the
taxable year exceeds $15,000, and
``(B) further reduced (but not below 20 percent) by
1 percentage point for each $2,000 ($4,000 in the case
of a joint return) or fraction thereof by which the
taxpayer's
[[Page 139 STAT. 215]]
adjusted gross income for the taxable year exceeds
$75,000 ($150,000 in the case of a joint return).''.
(b) <<NOTE: 26 USC 21 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2025.
Subchapter B--Permanent Investments in Students and Reforms to Tax-
exempt Institutions
SEC. 70411. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO
SCHOLARSHIP GRANTING ORGANIZATIONS.
(a) Allowance of Credit for Contributions of Individuals to
Scholarship Granting Organizations.--
(1) In general.--Subpart A of part IV of subchapter A of
chapter 1 is amended by inserting after section 25E the
following new section:
``SEC. 25F. <<NOTE: 26 USC 25F.>> QUALIFIED ELEMENTARY AND
SECONDARY EDUCATION SCHOLARSHIPS.
``(a) Allowance of Credit.--In the case of an individual who is a
citizen or resident of the United States (within the meaning of section
7701(a)(9)), there shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to the aggregate
amount of qualified contributions made by the taxpayer during the
taxable year.
``(b) Limitations.--
``(1) In general.--The credit allowed under subsection (a)
to any taxpayer for any taxable year shall not exceed $1,700.
``(2) Reduction based on state credit.--The amount allowed
as a credit under subsection (a) for a taxable year shall be
reduced by the amount allowed as a credit on any State tax
return of the taxpayer for qualified contributions made by the
taxpayer during the taxable year.
``(c) Definitions.--For purposes of this section--
``(1) Covered state.--The term `covered State' means one of
the States, or the District of Columbia, that, for a calendar
year, voluntarily elects to participate under this section and
to identify scholarship granting organizations in the State, in
accordance with subsection (g).
``(2) Eligible student.--The term `eligible student' means
an individual who--
``(A) is a member of a household with an income
which, for the calendar year prior to the date of the
application for a scholarship, is not greater than 300
percent of the area median gross income (as such term is
used in section 42), and
``(B) is eligible to enroll in a public elementary
or secondary school.
``(3) Qualified contribution.--The term `qualified
contribution' means a charitable contribution of cash to a
scholarship granting organization that uses the contribution to
fund scholarships for eligible students solely within the State
in which the organization is listed pursuant to subsection (g).
``(4) Qualified elementary or secondary education expense.--
The term `qualified elementary or secondary education expense'
means any expense of an eligible student which is described in
section 530(b)(3)(A).
[[Page 139 STAT. 216]]
``(5) Scholarship granting organization.--The term
`scholarship granting organization' means any organization--
``(A) which--
``(i) is described in section 501(c)(3) and
exempt from tax under section 501(a), and
``(ii) is not a private foundation,
``(B) which prevents the co-mingling of qualified
contributions with other amounts by maintaining one or
more separate accounts exclusively for qualified
contributions,
``(C) which satisfies the requirements of subsection
(d), and
``(D) which is included on the list submitted for
the applicable covered State under subsection (g) for
the applicable year.
``(d) Requirements for Scholarship Granting Organizations.--
``(1) In general.--An organization meets the requirements of
this subsection if--
``(A) such organization provides scholarships to 10
or more students who do not all attend the same school,
``(B) such organization spends not less than 90
percent of the income of the organization on
scholarships for eligible students,
``(C) such organization does not provide
scholarships for any expenses other than qualified
elementary or secondary education expenses,
``(D) such organization provides a scholarship to
eligible students with a priority for--
``(i) students awarded a scholarship the
previous school year, and
``(ii) after application of clause (i), any
eligible students who have a sibling who was
awarded a scholarship from such organization,
``(E) such organization does not earmark or set
aside contributions for scholarships on behalf of any
particular student, and
``(F) such organization--
``(i) verifies the annual household income and
family size of eligible students who apply for
scholarships to ensure such students meet the
requirement of subsection (c)(2)(A), and
``(ii) limits the awarding of scholarships to
eligible students who are a member of a household
for which the income does not exceed the amount
established under subsection (c)(2)(A).
``(2) Prohibition on self-dealing.--
``(A) In general.--A scholarship granting
organization may not award a scholarship to any
disqualified person.
``(B) Disqualified person.--For purposes of this
paragraph, a disqualified person shall be determined
pursuant to rules similar to the rules of section 4946.
``(e) Denial of Double Benefit.--Any qualified contribution for
which a credit is allowed under this section shall not be taken into
account as a charitable contribution for purposes of section 170.
``(f) Carryforward of Unused Credit.--
[[Page 139 STAT. 217]]
``(1) In general.--If the credit allowable under subsection
(a) for any taxable year exceeds the limitation imposed by
section 26(a) for such taxable year reduced by the sum of the
credits allowable under this subpart (other than this section,
section 23, and section 25D), such excess shall be carried to
the succeeding taxable year and added to the credit allowable
under subsection (a) for such taxable year.
``(2) Limitation.--No credit may be carried forward under
this subsection to any taxable year following the fifth taxable
year after the taxable year in which the credit arose. For
purposes of the preceding sentence, credits shall be treated as
used on a first-in first-out basis.
``(g) State List of Scholarship Granting Organizations.--
``(1) List.--
``(A) <<NOTE: Deadlines.>> In general.--Not later
than January 1 of each calendar year (or, with respect
to the first calendar year for which this section
applies, as early as practicable), a State that
voluntarily elects to participate under this section
shall provide to the Secretary a list of the scholarship
granting organizations that meet the requirements
described in subsection (c)(5) and are located in the
State.
``(B) Process.--The election under this paragraph
shall be made by the Governor of the State or by such
other individual, agency, or entity as is designated
under State law to make such elections on behalf of the
State with respect to Federal tax benefits.
``(2) Certification.--Each list submitted under paragraph
(1) shall include a certification that the individual, agency,
or entity submitting such list on behalf of the State has the
authority to perform this function.
``(h) Regulations and Guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines necessary to
carry out the purposes of this section, including regulations or other
guidance--
``(1) providing for enforcement of the requirements under
subsections (d) and (g), and
``(2) with respect to recordkeeping or information reporting
for purposes of administering the requirements of this
section.''.
(2) Conforming amendments.--
(A) Section 25(e)(1)(C) is amended by striking ``and
25D'' and inserting ``25D, and 25F''.
(B) The table of sections for subpart A of part IV
of subchapter A of chapter 1 <<NOTE: 26 USC prec. 21.>>
is amended by inserting after the item relating to
section 25E the following new item:
``Sec. 25F. Qualified elementary and secondary education
scholarships.''.
(b) Exclusion From Gross Income for Scholarships for Qualified
Elementary or Secondary Education Expenses of Eligible Students.--
(1) In general.--Part III of subchapter B of chapter 1 is
amended by inserting before section 140 the following new
section:
``SEC. 139K. <<NOTE: 26 USC 139K.>> SCHOLARSHIPS FOR QUALIFIED
ELEMENTARY OR SECONDARY EDUCATION
EXPENSES OF ELIGIBLE STUDENTS.
``(a) In General.--In the case of an individual, gross income shall
not include any amounts provided to such individual or any
[[Page 139 STAT. 218]]
dependent of such individual pursuant to a scholarship for qualified
elementary or secondary education expenses of an eligible student which
is provided by a scholarship granting organization.
``(b) Definitions.--In this section, the terms `qualified elementary
or secondary education expense', `eligible student', and `scholarship
granting organization' have the same meaning given such terms under
section 25F(c).''.
(2) Conforming amendment.--The table of sections for part
III of subchapter B of chapter 1 <<NOTE: 26 USC prec. 101.>> is
amended by inserting before the item relating to section 140 the
following new item:
``Sec. 139K. Scholarships for qualified elementary or secondary
education expenses of eligible students.''.
(c) <<NOTE: 26 USC 25 note.>> Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years ending after December 31, 2026.
(2) Exclusion from gross income.--The amendments made by
subsection (b) shall apply to amounts received after December
31, 2026, in taxable years ending after such date.
SEC. 70412. EXCLUSION FOR EMPLOYER PAYMENTS OF STUDENT LOANS.
(a) In General.--Section 127(c)(1)(B) is amended by striking ``in
the case of payments made before January 1, 2026,''.
(b) Inflation Adjustment.--Section 127 is amended--
(1) by redesignating subsection (d) as subsection (e), and
(2) by inserting after subsection (c) the following new
subsection:
``(d) Inflation Adjustment.--
``(1) <<NOTE: Effective date.>> In general.--In the case of
any taxable year beginning after 2026, both of the $5,250
amounts in subsection (a)(2) shall each be increased by an
amount equal to--
``(A) such dollar amount, multiplied by
``(B) <<NOTE: Determination.>> the cost-of-living
adjustment determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2025' for
`calendar year 2016' in subparagraph (A)(ii) thereof.
``(2) Rounding.--If any increase under paragraph (1) is not
a multiple of $50, such increase shall be rounded to the nearest
multiple of $50.''.
(c) <<NOTE: 26 USC 127 note.>> Effective Date.--The amendment made
by this section shall apply to payments made after December 31, 2025.
SEC. 70413. ADDITIONAL EXPENSES TREATED AS QUALIFIED HIGHER
EDUCATION EXPENSES FOR PURPOSES OF 529
ACCOUNTS.
(a) In General.--
(1) In general.--Section 529(c)(7) is amended to read as
follows:
``(7) Treatment of elementary and secondary tuition.--Any
reference in this section <<NOTE: Definition.>> to the term
`qualified higher education expense' shall include a reference
to the following expenses in connection with enrollment or
attendance at, or for students enrolled at or attending, an
elementary or secondary public, private, or religious school:
``(A) Tuition.
[[Page 139 STAT. 219]]
``(B) Curriculum and curricular materials.
``(C) Books or other instructional materials.
``(D) Online educational materials.
``(E) Tuition for tutoring or educational classes
outside of the home, including at a tutoring facility,
but only if the tutor or instructor is not related to
the student and--
``(i) is licensed as a teacher in any State,
``(ii) has taught at an eligible educational
institution, or
``(iii) is a subject matter expert in the
relevant subject.
``(F) Fees for a nationally standardized norm-
referenced achievement test, an advanced placement
examination, or any examinations related to college or
university admission.
``(G) Fees for dual enrollment in an institution of
higher education.
``(H) Educational therapies for students with
disabilities provided by a licensed or accredited
practitioner or provider, including occupational,
behavioral, physical, and speech-language therapies.''.
(2) <<NOTE: 26 USC 529 note.>> Effective date.--The
amendment made by this subsection shall apply to distributions
made after the date of the enactment of this Act.
(b) Increase in Limitation.--
(1) In general.--The last sentence of section 529(e)(3) is
amended by striking ``$10,000'' and inserting ``$20,000''.
(2) <<NOTE: 26 USC 529 note.>> Effective date.--The
amendment made by this subsection shall apply to taxable years
beginning after December 31, 2025.
SEC. 70414. <<NOTE: Definitions.>> CERTAIN POSTSECONDARY
CREDENTIALING EXPENSES TREATED AS
QUALIFIED HIGHER EDUCATION EXPENSES
FOR PURPOSES OF 529 ACCOUNTS.
(a) In General.--Section 529(e)(3) is amended by adding at the end
the following new subparagraph:
``(C) Certain postsecondary credentialing
expenses.--The term `qualified higher education
expenses' includes qualified postsecondary credentialing
expenses (as defined in subsection (f)).''.
(b) Qualified Postsecondary Credentialing Expenses.--Section 529 is
amended by redesignating subsection (f) as subsection (g) and by
inserting after subsection (e) the following new subsection:
``(f) Qualified Postsecondary Credentialing Expenses.--For purposes
of this section--
``(1) In general.--The term `qualified postsecondary
credentialing expenses' means--
``(A) tuition, fees, books, supplies, and equipment
required for the enrollment or attendance of a
designated beneficiary in a recognized postsecondary
credential program, or any other expense incurred in
connection with enrollment in or attendance at a
recognized postsecondary credential program if such
expense would, if incurred in connection with enrollment
or attendance at an eligible educational institution, be
covered under subsection (e)(3)(A),
[[Page 139 STAT. 220]]
``(B) fees for testing if such testing is required
to obtain or maintain a recognized postsecondary
credential, and
``(C) fees for continuing education if such
education is required to maintain a recognized
postsecondary credential.
``(2) Recognized postsecondary credential program.--The term
`recognized postsecondary credential program' means any program
to obtain a recognized postsecondary credential if--
``(A) such program is included on a State list
prepared under section 122(d) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3152(d)),
``(B) such program is listed in the public directory
of the Web Enabled Approval Management System (WEAMS) of
the Veterans Benefits Administration, or successor
directory such program,
``(C) an examination (developed or administered by
an organization widely recognized as providing reputable
credentials in the occupation) is required to obtain or
maintain such credential and such organization
recognizes such program as providing training or
education which prepares individuals to take such
examination, or
``(D) such program is identified by the Secretary,
after consultation with the Secretary of Labor, as being
a reputable program for obtaining a recognized
postsecondary credential for purposes of this
subparagraph.
``(3) Recognized postsecondary credential.--The term
`recognized postsecondary credential' means--
``(A) any postsecondary employment credential that
is industry recognized and is--
``(i) any postsecondary employment credential
issued by a program that is accredited by the
Institute for Credentialing Excellence, the
National Commission on Certifying Agencies, or the
American National Standards Institute,
``(ii) any postsecondary employment credential
that is included in the Credentialing
Opportunities On-Line (COOL) directory of
credentialing programs (or successor directory)
maintained by the Department of Defense or by any
branch of the Armed Forces, or
``(iii) any postsecondary employment
credential identified for purposes of this clause
by the Secretary, after consultation with the
Secretary of Labor, as being industry recognized,
``(B) any certificate of completion of an
apprenticeship that is registered and certified with the
Secretary of Labor under the Act of August 16, 1937
(commonly known as the `National Apprenticeship Act'; 50
Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),
``(C) any occupational or professional license
issued or recognized by a State or the Federal
Government (and any certification that satisfies a
condition for obtaining such a license), and
``(D) any recognized postsecondary credential as
defined in section 3(52) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102(52)), provided through a
program described in paragraph (2)(A).''.
[[Page 139 STAT. 221]]
(c) <<NOTE: 26 USC 529 note.>> Effective Date.--The amendments made
by this section shall apply to distributions made after the date of the
enactment of this Act.
SEC. 70415. MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME OF
CERTAIN PRIVATE COLLEGES AND
UNIVERSITIES.
(a) In General.--Section 4968 is amended to read as follows:
``SEC. 4968. EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE
COLLEGES AND UNIVERSITIES.
``(a) <<NOTE: Applicability. Definitions.>> Tax Imposed.--There is
hereby imposed on each applicable educational institution for the
taxable year a tax equal to the applicable percentage of the net
investment income of such institution for the taxable year.
``(b) Applicable Percentage.--For purposes of this section, the term
`applicable percentage' means--
``(1) 1.4 percent in the case of an institution with a
student adjusted endowment of at least $500,000, and not in
excess of $750,000,
``(2) 4 percent in the case of an institution with a student
adjusted endowment in excess of $750,000, and not in excess of
$2,000,000, and
``(3) 8 percent in the case of an institution with a student
adjusted endowment in excess of $2,000,000.
``(c) Applicable Educational Institution.--For purposes of this
subchapter, the term `applicable educational institution' means an
eligible educational institution (as defined in section 25A(f)(2))--
``(1) which had at least 3,000 tuition-paying students
during the preceding taxable year,
``(2) more than 50 percent of the tuition-paying students of
which are located in the United States,
``(3) the student adjusted endowment of which is at least
$500,000, and
``(4) which is not described in the first sentence of
section 511(a)(2)(B) (relating to State colleges and
universities).
``(d) Student Adjusted Endowment.--For purposes of this section, the
term `student adjusted endowment' means, with respect to any institution
for any taxable year--
``(1) the aggregate fair market value of the assets of such
institution (determined as of the end of the preceding taxable
year), other than those assets which are used directly in
carrying out the institution's exempt purpose, divided by
``(2) the number of students of such institution.
``(e) Determination of Number of Students.--For purposes of
subsections (c) and (d), the number of students of an institution
(including for purposes of determining the number of students at a
particular location) shall be based on the daily average number of full-
time students attending such institution (with part-time students taken
into account on a full-time student equivalent basis).
``(f) Net Investment Income.--For purposes of this section--
``(1) In general.--Net investment income shall be determined
under rules similar to the rules of section 4940(c).
``(2) Override of certain regulatory exceptions.--
``(A) Student loan interest.--Net investment income
shall be determined by taking into account any interest
income from a student loan made by the applicable
educational institution (or any related organization) as
gross investment income.
[[Page 139 STAT. 222]]
``(B) Federally-subsidized royalty income.--
``(i) In general.--Net investment income shall
be determined by taking into account any
Federally-subsidized royalty income as gross
investment income.
``(ii) Federally-subsidized royalty income.--
For purposes of this subparagraph--
``(I) In general.--The term
`Federally-subsidized royalty income'
means any otherwise-regulatory-exempt
royalty income if any Federal funds were
used in the research, development, or
creation of the patent, copyright, or
other intellectual or intangible
property from which such royalty income
is derived.
``(II) Otherwise-regulatory-exempt
royalty income.--For purposes of this
subparagraph, the term `otherwise-
regulatory-exempt royalty income' means
royalty income which (but for this
subparagraph) would not be taken into
account as gross investment income by
reason of being derived from patents,
copyrights, or other intellectual or
intangible property which resulted from
the work of students or faculty members
in their capacities as such with the
applicable educational institution.
``(III) Federal funds.--The term
`Federal funds' includes any grant made
by, and any payment made under any
contract with, any Federal agency to the
applicable educational institution, any
related organization, or any student or
faculty member referred to in subclause
(II).
``(g) Assets and Net Investment Income of Related Organizations.--
``(1) In general.--For purposes of subsections (d) and (f),
assets and net investment income of any related organization
with respect to an educational institution shall be treated as
assets and net investment income, respectively, of the
educational institution, except that--
``(A) no such amount shall be taken into account
with respect to more than 1 educational institution, and
``(B) unless such organization is controlled by such
institution or is described in section 509(a)(3) with
respect to such institution for the taxable year, assets
and net investment income which are not intended or
available for the use or benefit of the educational
institution shall not be taken into account.
``(2) Related organization.--For purposes of this
subsection, the term `related organization' means, with respect
to an educational institution, any organization which--
``(A) controls, or is controlled by, such
institution,
``(B) is controlled by 1 or more persons which also
control such institution, or
``(C) is a supported organization (as defined in
section 509(f)(3)), or an organization described in
section 509(a)(3), during the taxable year with respect
to such institution.
``(h) <<NOTE: Guidance.>> Regulations.--The Secretary shall
prescribe such regulations or other guidance as may be necessary to
prevent avoidance of the tax under this section, including regulations
or other guidance
[[Page 139 STAT. 223]]
to prevent avoidance of such tax through the restructuring of endowment
funds or other arrangements designed to reduce or eliminate the value of
net investment income or assets subject to the tax imposed by this
section.''.
(b) Requirement to Report Certain Information With Respect to
Application of Excise Tax Based on Investment Income of Private Colleges
and Universities.--Section 6033 is amended by redesignating subsection
(o) as subsection (p) and by inserting after subsection (n) the
following new subsection:
``(o) Requirement to Report Certain Information With Respect to
Excise Tax Based on Investment Income of Private Colleges and
Universities.--Each applicable educational institution described in
section 4968(c) which is subject to the requirements of subsection (a)
shall include on the return required under subsection (a)--
``(1) the number of tuition-paying students taken into
account under section 4968(c), and
``(2) the number of students of such institution (determined
under the rules of section 4968(e)).''.
(c) <<NOTE: 26 USC 4968 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70416. EXPANDING APPLICATION OF TAX ON EXCESS COMPENSATION
WITHIN TAX-EXEMPT ORGANIZATIONS.
(a) In General.--Section 4960(c)(2) is amended to read as follows:
``(2) <<NOTE: Definition.>> Covered employee.--For purposes
of this section, the term `covered employee' means any employee
of an applicable tax-exempt organization (or any predecessor of
such an organization) and any former employee of such an
organization (or predecessor) who was such an employee during
any taxable year beginning after December 31, 2016.''.
(b) <<NOTE: 26 USC 4960 note.>> Effective Date.--The amendment made
by subsection (a) shall apply to taxable years beginning after December
31, 2025.
Subchapter C--Permanent Investments in Community Development
SEC. 70421. PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY
ZONES.
(a) Decennial Designations.--
(1) Determination period.--Section 1400Z-1(c)(2)(B) is
amended by striking ``beginning on the date of the enactment of
the Tax Cuts and Jobs Act'' and inserting ``beginning on the
decennial determination date''.
(2) Decennial determination date.--Section 1400Z-1(c)(2) is
amended by adding at the end the following new subparagraph:
``(C) <<NOTE: Definition.>> Decennial determination
date.--The term `decennial determination date' means--
``(i) July 1, 2026, and
``(ii) each July 1 of the year that is 10
years after the preceding decennial determination
date under this subparagraph.''.
(3) Repeal of special rule for puerto rico.--Section 1400Z-
1(b) is amended by striking paragraph (3).
[[Page 139 STAT. 224]]
(4) Limitation on number of designations.--Section 1400Z-
1(d)(1) is amended--
(A) in paragraph (1)--
(i) by striking ``and subsection (b)(3)'', and
(ii) by inserting ``during any period'' after
``the number of population census tracts in a
State that may be designated as qualified
opportunity zones under this section'', and
(B) in paragraph (2), by inserting ``during any
period'' before the period at the end.
(5) <<NOTE: 26 USC 1400Z-1 note.>> Effective dates.--
(A) In general.--Except as provided in subparagraph
(B), the amendments made by this subsection shall take
effect on the date of the enactment of this Act.
(B) Puerto rico.--The amendment made by paragraph
(3) shall take effect on December 31, 2026.
(b) Qualification for Designations.--
(1) Determination of low-income communities.--Section 1400Z-
1(c) is amended by striking all that precedes paragraph (2) and
inserting the following:
``(c) Other Definitions.--For purposes of this section--
``(1) Low-income communities.--The term `low-income
community' means any population census tract if--
``(A) such population census tract has a median
family income that--
``(i) in the case of a population census tract
not located within a metropolitan area, does not
exceed 70 percent of the statewide median family
income, or
``(ii) in the case of a population census
tract located within a metropolitan area, does not
exceed 70 percent of the metropolitan area median
family income, or
``(B) such population census tract--
``(i) has a poverty rate of at least 20
percent, and
``(ii) has a median family income that--
``(I) in the case of a population
census tract not located within a
metropolitan area, does not exceed 125
percent of the statewide median family
income, or
``(II) in the case of a population
census tract located within a
metropolitan area, does not exceed 125
percent of the metropolitan area median
family income.''.
(2) Repeal of rule for contiguous census tracts.--Section
1400Z-1 is amended by striking subsection (e) and by
redesignating subsection (f) as subsection (e).
(3) Period for which designation is in effect.--Section
1400Z-1(e), as redesignated by paragraph (2), is amended to read
as follows:
``(e) Period for Which Designation Is in Effect.--
``(1) In general.--A designation as a qualified opportunity
zone shall remain in effect for the period beginning on the
applicable start date and ending on the day before the date that
is 10 years after the applicable start date.
``(2) <<NOTE: Definition.>> Applicable start date.--For
purposes of this section, the term `applicable start date'
means, with respect to any qualified opportunity zone designated
under this section, the
[[Page 139 STAT. 225]]
January 1 following the date on which such qualified opportunity
zone was certified and designated by the Secretary under
subsection (b)(1)(B).''.
(4) <<NOTE: 26 USC 1400Z-1 note.>> Effective date.--The
amendments made by this subsection shall apply to areas
designated under section 1400Z-1 of the Internal Revenue Code of
1986 after the date of the enactment of this Act.
(c) Application of Special Rules for Capital Gains.--
(1) Repeal of sunset on election.--Section 1400Z-2(a)(2) is
amended to read as follows:
``(2) Election.--No election may be made under paragraph (1)
with respect to a sale or exchange if an election previously
made with respect to such sale or exchange is in effect.''.
(2) Modification of rules for deferral of gain.--Section
1400Z-2(b) is amended to read as follows:
``(b) Deferral of Gain Invested in Opportunity Zone Property.--
``(1) <<NOTE: Applicability.>> Year of inclusion.--Gain to
which subsection (a)(1)(B) applies shall be included in gross
income in the taxable year which includes the earlier of--
``(A) the date on which such investment is sold or
exchanged, or
``(B) the date which is 5 years after the date the
investment in the qualified opportunity fund was made.
``(2) Amount includible.--
``(A) In general.--The amount of gain included in
gross income under subsection (a)(1)(B) shall be the
excess of--
``(i) the lesser of the amount of gain
excluded under subsection (a)(1)(A) or the fair
market value of the investment as determined as of
the date described in paragraph (1), over
``(ii) the taxpayer's basis in the investment.
``(B) Determination of basis.--
``(i) In general.--Except as otherwise
provided in this subparagraph or subsection (c),
the taxpayer's basis in the investment shall be
zero.
``(ii) Increase for gain recognized under
subsection (a)(1)(B).--The basis in the investment
shall be increased by the amount of gain
recognized by reason of subsection (a)(1)(B) with
respect to such investment.
``(iii) Investments held for 5 years.--
``(I) In general.--In the case of
any investment held for at least 5
years, the basis of such investment
shall be increased by an amount equal to
10 percent (30 percent in the case of
any investment in a qualified rural
opportunity fund) of the amount of gain
deferred by reason of subsection
(a)(1)(A).
``(II) Application of increase.--For
purposes of this subsection, any
increase in basis under this clause
shall be treated as occurring before the
date described in paragraph (1)(B).
``(C) <<NOTE: Definitions.>> Qualified rural
opportunity fund.--For purposes of subparagraph
(B)(iii)--
[[Page 139 STAT. 226]]
``(i) Qualified rural opportunity fund.--The
term `qualified rural opportunity fund' means a
qualified opportunity fund that holds at least 90
percent of its assets in qualified opportunity
zone property which--
``(I) is qualified opportunity zone
business property substantially all of
the use of which, during substantially
all of the fund's holding period for
such property, was in a qualified
opportunity zone comprised entirely of a
rural area, or
``(II) is qualified opportunity zone
stock, or a qualified opportunity zone
partnership interest, in a qualified
opportunity zone business in which
substantially all of the tangible
property owned or leased is qualified
opportunity zone business property
described in subsection (d)(3)(A)(i) and
substantially all the use of which is in
a qualified opportunity zone comprised
entirely of a rural area.
For purposes of the preceding sentence, property
held in the fund shall be measured under rules
similar to the rules of subsection (d)(1).
``(ii) Rural area.--The term `rural area'
means any area other than--
``(I) a city or town that has a
population of greater than 50,000
inhabitants, and
``(II) any urbanized area contiguous
and adjacent to a city or town described
in subclause (I).''.
(3) Special rule for investments held at least 10 years.--
Section 1400Z-2(c) is amended by striking ``makes an election
under this clause'' and all that follows and inserting ``makes
an election under this subsection, the basis of such investment
shall be equal to--
``(A) in the case of an investment sold before the
date that is 30 years after the date of the investment,
the fair market value of such investment on the date
such investment is sold or exchanged, or
``(B) in any other case, the fair market value of
such investment on the date that is 30 years after the
date of the investment.''.
(4) Determination of qualified opportunity zone property.--
(A) Qualified opportunity zone business property.--
Section 1400Z-2(d)(2)(D)(i)(I) is amended by striking
``December 31, 2017'' and inserting ``the applicable
start date (as defined in section 1400Z-1(e)(2)) with
respect to the qualified opportunity zone described in
subclause (III)''.
(B) Qualified opportunity zone stock and partnership
interests.--Section 1400Z-2(d)(2) is amended--
(i) by striking ``December 31, 2017,'' each
place it appears in subparagraphs (B)(i)(I) and
(C)(i) and inserting ``the applicable date'', and
(ii) by adding at the end the following new
subparagraph:
``(E) <<NOTE: Definition.>> Applicable date.--For
purposes of this subparagraph, the term `applicable
date' means, with respect to
[[Page 139 STAT. 227]]
any corporation or partnership which is a qualified
opportunity zone business, the earliest date described
in subparagraph (D)(i)(I) with respect to the qualified
opportunity zone business property held by such
qualified opportunity zone business.''.
(C) Special rule for improvement of existing
structures in rural areas.--Section 1400Z-2(d)(2)(D)(ii)
is amended by inserting ``(50 percent of such adjusted
basis in the case of property in a qualified opportunity
zone comprised entirely of a rural area (as defined in
subsection (b)(2)(C)(ii))'' after ``the adjusted basis
of such property''.
(5) <<NOTE: 26 USC 1400Z-2 note.>> Effective dates.--
(A) In general.--Except as otherwise provided in
this paragraph, the amendments made by this subsection
shall apply to amounts invested in qualified opportunity
funds after December 31, 2026.
(B) Acquisition of qualified opportunity zone
property.--The amendments made by subparagraphs (A) and
(B) of paragraph (4) shall apply to property acquired
after December 31, 2026.
(C) Substantial improvement.--The amendment made by
paragraph (4)(C) shall take effect on the date of the
enactment of this Act.
(d) Information Reporting on Qualified Opportunity Funds and
Qualified Rural Opportunity Funds.--
(1) Filing requirements for funds and investors.--Subpart A
of part III of subchapter A of chapter 61 is amended by
inserting after section 6039J the following new sections:
``SEC. 6039K. <<NOTE: 26 USC 6039K.>> RETURNS WITH RESPECT TO
QUALIFIED OPPORTUNITY FUNDS AND
QUALIFIED RURAL OPPORTUNITY FUNDS.
``(a) In General.--Every qualified opportunity fund shall file an
annual return (at such time and in such manner as the Secretary may
prescribe) containing the information described in subsection (b).
``(b) Information From Qualified Opportunity Funds.--The information
described in this subsection is--
``(1) the name, address, and taxpayer identification number
of the qualified opportunity fund,
``(2) whether the qualified opportunity fund is organized as
a corporation or a partnership,
``(3) the value of the total assets held by the qualified
opportunity fund as of each date described in section 1400Z-
2(d)(1),
``(4) the value of all qualified opportunity zone property
held by the qualified opportunity fund on each such date,
``(5) with respect to each investment held by the qualified
opportunity fund in qualified opportunity zone stock or a
qualified opportunity zone partnership interest--
``(A) the name, address, and taxpayer identification
number of the corporation in which such stock is held or
the partnership in which such interest is held, as the
case may be,
``(B) each North American Industry Classification
System (NAICS) code that applies to the trades or
businesses conducted by such corporation or partnership,
[[Page 139 STAT. 228]]
``(C) the population census tract or population
census tracts in which the qualified opportunity zone
business property of such corporation or partnership is
located,
``(D) the amount of the investment in such stock or
partnership interest as of each date described in
section 1400Z-2(d)(1),
``(E) the value of tangible property held by such
corporation or partnership on each such date which is
owned by such corporation or partnership,
``(F) the value of tangible property held by such
corporation or partnership on each such date which is
leased by such corporation or partnership,
``(G) the approximate number of residential units
(if any) for any real property held by such corporation
or partnership, and
``(H) the approximate average monthly number of
full-time equivalent employees of such corporation or
partnership for the year (within numerical ranges
identified by the Secretary) or such other indication of
the employment impact of such corporation or partnership
as determined appropriate by the Secretary,
``(6) with respect to the items of qualified opportunity
zone business property held by the qualified opportunity fund--
``(A) the North American Industry Classification
System (NAICS) code that applies to the trades or
businesses in which such property is held,
``(B) the population census tract in which the
property is located,
``(C) whether the property is owned or leased,
``(D) the aggregate value of the items of qualified
opportunity zone property held by the qualified
opportunity fund as of each date described in section
1400Z-2(d)(1), and
``(E) in the case of real property, the number of
residential units (if any),
``(7) the approximate average monthly number of full-time
equivalent employees for the year of the trades or businesses of
the qualified opportunity fund in which qualified opportunity
zone business property is held (within numerical ranges
identified by the Secretary) or such other indication of the
employment impact of such trades or businesses as determined
appropriate by the Secretary,
``(8) with respect to each person who disposed of an
investment in the qualified opportunity fund during the year--
``(A) the name, address, and taxpayer identification
number of such person,
``(B) the date or dates on which the investment
disposed was acquired, and
``(C) the date or dates on which any such investment
was disposed and the amount of the investment disposed,
and
``(9) such other information as the Secretary may require.
``(c) Statement Required to Be Furnished to Investors.--Every person
required to make a return under subsection (a) shall furnish to each
person whose name is required to be set forth in such return by reason
of subsection (b)(8) (at such time and in such manner as the Secretary
may prescribe) a written statement showing--
[[Page 139 STAT. 229]]
``(1) the name, address, and phone number of the information
contact of the person required to make such return, and
``(2) the information required to be shown on such return by
reason of subsection (b)(8) with respect to the person whose
name is required to be so set forth.
``(d) Definitions.--For purposes of this section--
``(1) In general.--Any term used in this section which is
also used in subchapter Z of chapter 1 shall have the meaning
given such term under such subchapter.
``(2) Full-time equivalent employees.--The term `full-time
equivalent employees' means, with respect to any month, the sum
of--
``(A) the number of full-time employees (as defined
in section 4980H(c)(4)) for the month, plus
``(B) the number of employees determined (under
rules similar to the rules of section 4980H(c)(2)(E)) by
dividing the aggregate number of hours of service of
employees who are not full-time employees for the month
by 120.
``(e) Application to Qualified Rural Opportunity Funds.--Every
qualified rural opportunity fund (as defined in section 1400Z-
2(b)(2)(C)) shall file the annual return required under subsection (a),
and the statements required under subsection (c), applied--
``(1) by substituting `qualified rural opportunity' for
`qualified opportunity' each place it appears,
``(2) by substituting `section 1400Z-2(b)(2)(C)' for
`section 1400Z-2(d)(1)' each place it appears, and
``(3) by treating any reference (after the application of
paragraph (1)) to qualified rural opportunity zone stock, a
qualified rural opportunity zone partnership interest, a
qualified rural opportunity zone business, or qualified
opportunity zone business property as stock, an interest, a
business, or property, respectively, described in subclause (I)
or (II), as the case may be, of section 1400Z-2(b)(2)(C)(i).
``SEC. 6039L. <<NOTE: 26 USC 6039L.>> INFORMATION REQUIRED FROM
QUALIFIED OPPORTUNITY ZONE BUSINESSES
AND QUALIFIED RURAL OPPORTUNITY ZONE
BUSINESSES.
``(a) <<NOTE: Statement. Regulations.>> In General.--Every
applicable qualified opportunity zone business shall furnish to the
qualified opportunity fund described in subsection (b) a written
statement at such time, in such manner, and setting forth such
information as the Secretary may by regulations prescribe for purposes
of enabling such qualified opportunity fund to meet the requirements of
section 6039K(b)(5).
``(b) Applicable Qualified Opportunity Zone Business.--For
purposes <<NOTE: Definition.>> of subsection (a), the term `applicable
qualified opportunity zone business' means any qualified opportunity
zone business--
``(1) which is a trade or business of a qualified
opportunity fund,
``(2) in which a qualified opportunity fund holds qualified
opportunity zone stock, or
``(3) in which a qualified opportunity fund holds a
qualified opportunity zone partnership interest.
``(c) Other Terms.--Any term used in this section which is also used
in subchapter Z of chapter 1 shall have the meaning given such term
under such subchapter.
[[Page 139 STAT. 230]]
``(d) Application to Qualified Rural Opportunity
Businesses. <<NOTE: Determination.>> --Every applicable qualified rural
opportunity zone business (as defined in subsection (b) determined after
application of the substitutions described in this sentence) shall
furnish the written statement required under subsection (a), applied--
``(1) by substituting `qualified rural opportunity' for
`qualified opportunity' each place it appears, and
``(2) by treating any reference (after the application of
paragraph (1)) to qualified rural opportunity zone stock, a
qualified rural opportunity zone partnership interest, or a
qualified rural opportunity zone business as stock, an interest,
or a business, respectively, described in subclause (I) or (II),
as the case may be, of section 1400Z-2(b)(2)(C)(i).''.
(2) Penalties.--
(A) In general.--Part II of subchapter B of chapter
68 is amended by inserting after section 6725 the
following new section:
``SEC. 6726. <<NOTE: 26 USC 6726.>> FAILURE TO COMPLY WITH
INFORMATION REPORTING REQUIREMENTS
RELATING TO QUALIFIED OPPORTUNITY FUNDS
AND QUALIFIED RURAL OPPORTUNITY FUNDS.
``(a) <<NOTE: Penalty.>> In General.--If any person required to file
a return under section 6039K fails to file a complete and correct return
under such section in the time and in the manner prescribed therefor,
such person shall pay a penalty of $500 for each day during which such
failure continues.
``(b) Limitation.--
``(1) In general.--The maximum penalty under this section on
failures with respect to any 1 return shall not exceed $10,000.
``(2) Large qualified opportunity funds.--In the case of any
failure described in subsection (a) with respect to a fund the
gross assets of which (determined on the last day of the taxable
year) are in excess of $10,000,000, paragraph (1) shall be
applied by substituting `$50,000' for `$10,000'.
``(c) <<NOTE: Applicability.>> Penalty in Cases of Intentional
Disregard.--If a failure described in subsection (a) is due to
intentional disregard, then--
``(1) subsection (a) shall be applied by substituting
`$2,500' for `$500',
``(2) subsection (b)(1) shall be applied by substituting
`$50,000' for `$10,000', and
``(3) subsection (b)(2) shall be applied by substituting
`$250,000' for `$50,000'.
``(d) Inflation Adjustment.--
``(1) <<NOTE: Effective date.>> In general.--In the case of
any failure relating to a return required to be filed in a
calendar year beginning after 2025, each of the dollar amounts
in subsections (a), (b), and (c) shall be increased by an amount
equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year determined by
substituting `calendar year 2024' for `calendar year
2016' in subparagraph (A)(ii) thereof.
``(2) Rounding.--
``(A) In general.--If the $500 dollar amount in
subsection (a) and (c)(1) or the $2,500 amount in
subsection (c)(1), after being increased under paragraph
(1), is not
[[Page 139 STAT. 231]]
a multiple of $10, such dollar amount shall be rounded
to the next lowest multiple of $10.
``(B) Asset threshold.--If the $10,000,000 dollar
amount in subsection (b)(2), after being increased under
paragraph (1), is not a multiple of $10,000, such dollar
amount shall be rounded to the next lowest multiple of
$10,000.
``(C) Other dollar amounts.--If any dollar amount in
subsection (b) or (c) (other than any amount to which
subparagraph (A) or (B) applies), after being increased
under paragraph (1), is not a multiple of $1,000, such
dollar amount shall be rounded to the next lowest
multiple of $1,000.''.
(B) Information required to be sent to other
taxpayers.--Section 6724(d)(2), as amended by the
preceding provisions of this Act, is amended--
(i) by striking ``or'' at the end of
subparagraph (LL),
(ii) by striking the period at the end of
subparagraph (MM) and inserting a comma, and
(iii) by inserting after subparagraph (MM) the
following new subparagraphs:
``(NN) section 6039K(c) (relating to disposition of
qualified opportunity fund investments), or
``(OO) section 6039L (relating to information
required from certain qualified opportunity zone
businesses and qualified rural opportunity zone
businesses).''.
(3) Electronic filing.--Section 6011(e) is amended by adding
at the end the following new paragraph:
``(8) Qualified opportunity funds and qualified rural
opportunity funds.--Notwithstanding paragraphs (1) and (2), any
return filed by a qualified opportunity fund or qualified rural
opportunity fund under section 6039K shall be filed on magnetic
media or other machine-readable form.''.
(4) Clerical amendments.--
(A) The table of sections for subpart A of part III
of subchapter A of chapter 61 <<NOTE: 26 USC prec.
6031.>> is amended by inserting after the item relating
to section 6039J the following new items:
``Sec. 6039K. Returns with respect to qualified opportunity funds and
qualified rural opportunity funds.
``Sec. 6039L. Information required from qualified opportunity zone
businesses and qualified rural opportunity zone
businesses.''.
(B) The table of sections for part II of subchapter
B of chapter 68 is amended <<NOTE: 26 USC prec.
6721.>> by inserting after the item relating to section
6725 the following new item:
``Sec. 6726. Failure to comply with information reporting requirements
relating to qualified opportunity funds and qualified rural
opportunity funds.''.
(5) <<NOTE: 26 USC 6011 note.>> Effective date.--The
amendments made by this subsection shall apply to taxable years
beginning after the date of the enactment of this Act.
(e) <<NOTE: 26 USC 6039K note.>> Secretary Reporting of Data on
Opportunity Zone and Rural Opportunity Zone Tax Incentives.--
(1) <<NOTE: Appropriation authorization. Expiration
date.>> In general.--In addition to amounts otherwise available,
there is appropriated, out of any money in the Treasury not
otherwise appropriated, $15,000,000, to remain available until
September 30, 2028, for necessary expenses of the Internal
[[Page 139 STAT. 232]]
Revenue Service to make the reports described in paragraph (2).
(2) Reports.--As soon as practical after the date of the
enactment of this Act, and annually thereafter, the Secretary of
the Treasury, or the Secretary's delegate (referred to in this
section as the ``Secretary'') shall make publicly available a
report on qualified opportunity funds.
(3) Information included.--The report required under
paragraph (2) shall include, to the extent available, the
following information:
(A) The number of qualified opportunity funds.
(B) The aggregate dollar amount of assets held in
qualified opportunity funds.
(C) The aggregate dollar amount of investments made
by qualified opportunity funds in qualified opportunity
fund property, stated separately for each North American
Industry Classification System (NAICS) code.
(D) The percentage of population census tracts
designated as qualified opportunity zones that have
received qualified opportunity fund investments.
(E) For each population census tract designated as a
qualified opportunity zone, the approximate average
monthly number of full-time equivalent employees of the
qualified opportunity zone businesses in such qualified
opportunity zone for the preceding 12-month period
(within numerical ranges identified by the Secretary) or
such other indication of the employment impact of such
qualified opportunity fund businesses as determined
appropriate by the Secretary.
(F) The percentage of the total amount of
investments made by qualified opportunity funds in--
(i) qualified opportunity zone property which
is real property; and
(ii) other qualified opportunity zone
property.
(G) For each population census tract, the aggregate
approximate number of residential units resulting from
investments made by qualified opportunity funds in real
property.
(H) The aggregate dollar amount of investments made
by qualified opportunity funds in each population census
tract.
(4) Additional information.--
(A) <<NOTE: Effective date.>> In general.--Beginning
with the report submitted under paragraph (2) for the
6th year after the date of the enactment of this Act,
the Secretary shall include in such report the impacts
and outcomes of a designation of a population census
tract as a qualified opportunity zone as measured by
economic indicators, such as job creation, poverty
reduction, new business starts, and other metrics as
determined by the Secretary.
(B) Semi-decennial information.--
(i) In general.--In the case of any report
submitted under paragraph (2) in the 6th year or
the 11th year after the date of the enactment of
this Act, the Secretary shall include the
following information:
(I) For population census tracts
designated as a qualified opportunity
zone, a comparison (based
[[Page 139 STAT. 233]]
on aggregate information) of the factors
listed in clause (iii) between the 5-
year period ending on the date of the
enactment of Public Law 115-97 and the
most recent 5-year period for which data
is available.
(II) For population census tracts
designated as a qualified opportunity
zone, a comparison (based on aggregate
information) of the factors listed in
clause (iii) for the most recent 5-year
period for which data is available
between such population census tracts
and similar population census tracts
that were not designated as a qualified
opportunity zone.
(ii) Control groups.--For purposes of clause
(i), the Secretary may combine population census
tracts into such groups as the Secretary
determines appropriate for purposes of making
comparisons.
(iii) Factors listed.--The factors listed in
this clause are the following:
(I) The unemployment rate.
(II) The number of persons working
in the population census tract,
including the percentage of such persons
who were not residents in the population
census tract in the preceding year.
(III) Individual, family, and
household poverty rates.
(IV) Median family income of
residents of the population census
tract.
(V) Demographic information on
residents of the population census
tract, including age, income, education,
race, and employment.
(VI) The average percentage of
income of residents of the population
census tract spent on rent annually.
(VII) The number of residences in
the population census tract.
(VIII) The rate of home ownership in
the population census tract.
(IX) The average value of
residential property in the population
census tract.
(X) The number of affordable housing
units in the population census tract.
(XI) The number of new business
starts in the population census tract.
(XII) The distribution of employees
in the population census tract by North
American Industry Classification System
(NAICS) code.
(5) Protection of identifiable return information.--In
making reports required under this subsection, the Secretary--
(A) <<NOTE: Procedures.>> shall establish
appropriate procedures to ensure that any amounts
reported do not disclose taxpayer return information
that can be associated with any particular taxpayer or
competitive or proprietary information, and
[[Page 139 STAT. 234]]
(B) if necessary to protect taxpayer return
information, may combine information required with
respect to individual population census tracts into
larger geographic areas.
(6) Definitions.--Any term used in this subsection which is
also used in subchapter Z of chapter 1 of the Internal Revenue
Code of 1986 shall have the meaning given such term under such
subchapter.
(7) Reports on qualified rural opportunity funds.--The
Secretary shall make publicly available, with respect to
qualified rural opportunity funds, separate reports as required
under this subsection, applied--
(A) by substituting ``qualified rural opportunity''
for ``qualified opportunity'' each place it appears,
(B) by substituting a reference to this Act for
``Public Law 115-97'', and
(C) by treating any reference (after the application
of subparagraph (A)) to qualified rural opportunity zone
stock, qualified rural opportunity zone partnership
interest, qualified rural opportunity zone business, or
qualified opportunity zone business property as stock,
interest, business, or property, respectively, described
in subclause (I) or (II), as the case may be, of section
1400Z-2(b)(2)(C)(i) of the Internal Revenue Code of
1986.
SEC. 70422. PERMANENT ENHANCEMENT OF LOW-INCOME HOUSING TAX
CREDIT.
(a) Permanent State Housing Credit Ceiling Increase for Low-income
Housing Credit.--
(1) In general.--Section 42(h)(3)(I) is amended--
(A) by striking ``2018, 2019, 2020, and 2021,'' and
inserting ``beginning after December 31, 2025,'',
(B) by striking ``1.125'' and inserting ``1.12'',
and
(C) by striking ``2018, 2019, 2020, and 2021'' in
the heading and inserting ``calendar years after 2025''.
(2) <<NOTE: 26 USC 42 note.>> Effective date.--The
amendments made by this subsection shall apply to calendar years
beginning after December 31, 2025.
(b) Tax-exempt Bond Financing Requirement.--
(1) In general.--Section 42(h)(4) is amended by striking
subparagraph (B) and inserting the following:
``(B) Special rule where minimum percent of
buildings is financed with tax-exempt bonds subject to
volume cap.--For purposes of subparagraph (A), paragraph
(1) shall not apply to any portion of the credit
allowable under subsection (a) with respect to a
building if--
``(i) 50 percent or more of the aggregate
basis of such building and the land on which the
building is located is financed by 1 or more
obligations described in subparagraph (A), or
``(ii)(I) 25 percent or more of the aggregate
basis of such building and the land on which the
building is located is financed by 1 or more
obligations described in subparagraph (A), and
``(II) 1 or more of such obligations--
``(aa) are part of an issue the
issue date of which is after December
31, 2025, and
[[Page 139 STAT. 235]]
``(bb) provide the financing for not
less than 5 percent of the aggregate
basis of such building and the land on
which the building is located.''.
(2) <<NOTE: 26 USC 42 note.>> Effective date.--
(A) In general.--The amendment made by this
subsection shall apply to buildings placed in service in
taxable years beginning after December 31, 2025.
(B) Rehabilitation expenditures treated as separate
new building.--In the case of any building with respect
to which any expenditures are treated as a separate new
building under section 42(e) of the Internal Revenue
Code of 1986, for purposes of subparagraph (A), both the
existing building and the separate new building shall be
treated as having been placed in service on the date
such expenditures are treated as placed in service under
section 42(e)(4) of such Code.
SEC. 70423. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.
(a) In General.--Section 45D(f)(1)(H) is amended by striking ``for
for each of calendar years 2020 through 2025'' and inserting `` for each
calendar year after 2019''.
(b) Carryover of Unused Limitation.--Section 45D(f)(3) is amended--
(1) by striking ``If the'' and inserting the following:
``(A) In general.--If the'', and
(2) by striking the second sentence and inserting the
following:
``(B) Limitation.--No amount may be carried under
subparagraph (A) to any calendar year afer the fifth
calendar year after the calendar year in which the
excess described in such subparagraph occurred. For
purposes of this subparagraph, any excess described in
subparagraph (A) with respect to any calendar year
before 2026 shall be treated as occurring in calendar
year 2025.''.
(c) <<NOTE: 26 USC 45D note.>> Effective Date.--The amendments made
by this section shall apply to calendar years beginning after December
31, 2025.
SEC. 70424. PERMANENT AND EXPANDED REINSTATEMENT OF PARTIAL
DEDUCTION FOR CHARITABLE CONTRIBUTIONS
OF INDIVIDUALS WHO DO NOT ELECT TO
ITEMIZE.
(a) In General.--Section 170(p) is amended--
(1) by striking ``$300 ($600'' and inserting ``$1,000
($2,000'', and
(2) by striking ``beginning in 2021''.
(b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70425. 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE
BY INDIVIDUALS.
(a) In General.--
(1) In general.--Paragraph (1) of section 170(b) is amended
by adding at the end the following new subparagraph:
``(I) 0.5-percent floor.--Any charitable
contribution otherwise allowable (without regard to this
subparagraph) as a deduction under this section shall be
allowed only to the extent that the aggregate of such
contributions exceeds 0.5 percent of the taxpayer's
contribution base
[[Page 139 STAT. 236]]
for the taxable year. <<NOTE: Applicability.>> The
preceding sentence shall be applied--
``(i) first, by taking into account charitable
contributions to which subparagraph (D) applies to
the extent thereof,
``(ii) second, by taking into account
charitable contributions to which subparagraph (C)
applies to the extent thereof,
``(iii) third, by taking into account
charitable contributions to which subparagraph (B)
applies to the extent thereof,
``(iv) fourth, by taking into account
charitable contributions to which subparagraph (E)
applies to the extent thereof,
``(v) fifth, by taking into account charitable
contributions to which subparagraph (A) applies to
the extent thereof, and
``(vi) sixth, by taking into account
charitable contributions to which subparagraph (G)
applies to the extent thereof.''.
(2) Application of carryforward.--Paragraph (1) of section
170(d) is amended by adding at the end the following new
subparagraph:
``(C) <<NOTE: Definitions.>> Contributions
disallowed by 0.5-percent floor carried forward only
from years in which limitation is exceeded.--
``(i) In general.--In the case of any taxable
year from which an excess is carried forward
(determined without regard to this subparagraph)
under any carryover rule, the applicable carryover
rule shall be applied by increasing the excess
determined under such applicable carryover rule
for the contribution year (before the application
of subparagraph (B)) by the amount attributable to
the charitable contributions to which such rule
applies which is not allowed as a deduction for
the contribution year by reason of subsection
(b)(1)(I).
``(ii) Carryover rule.--For purposes of this
subparagraph, the term `carryover rule' means--
``(I) subparagraph (A) of this
paragraph,
``(II) subparagraphs (C)(ii),
(D)(ii), (E)(ii), and (G)(ii) of
subsection (b)(1), and
``(III) the second sentence of
subsection (b)(1)(B).
``(iii) Applicable carryover rule.--For
purposes of this subparagraph, the term
`applicable carryover rule' means any carryover
rule applicable to charitable contributions which
were (in whole or in part) not allowed as a
deduction for the contribution year by reason of
subsection (b)(1)(I).''.
(3) Coordination with deduction for nonitemizers.--Section
170(p), as amended by this Act, is further amended by inserting
``, (b)(1)(I),'' after ``subsections (b)(1)(G)(ii)''.
(b) Modification of Limitation for Cash Contributions.--
(1) In general.--Clause (i) of section 170(b)(1)(G) is
amended to read as follows:
[[Page 139 STAT. 237]]
``(i) <<NOTE: Effective date.>> In general.--
For taxable years beginning after December 31,
2017, any contribution of cash to an organization
described in subparagraph (A) shall be allowed as
a deduction under subsection (a) to the extent
that the aggregate of such contributions does not
exceed the excess of--
``(I) 60 percent of the taxpayer's
contribution base for the taxable year,
over
``(II) the aggregate amount of
contributions taken into account under
subparagraph (A) for such taxable
year.''.
(2) Coordination with other limitations.--
(A) In general.--Clause (iii) of section
170(b)(1)(G) is amended--
(i) by striking ``subparagraphs (a) and (b)''
in the heading and inserting ``subparagraph (a)'',
and
(ii) in subclause (II), by striking ``, and
subparagraph (B)'' and all that follows through
``this subparagraph''.
(B) Other contributions.--Subparagraph (B) of
section 170(b)(1) is amended--
(i) by striking ``to which subparagraph (A)''
both places it appears and inserting ``to which
subparagraph (A) or (G)'', and
(ii) in clause (ii), by striking ``over the
amount'' and all that follows through
``subparagraph (C)).'' and inserting ``over--
``(I) the amount of charitable
contributions allowable under
subparagraph (A) (determined without
regard to subparagraph (C)) and
subparagraph (G), reduced by
``(II) so much of the contributions
taken into account under subparagraph
(G) as does not exceed 10 percent of the
taxpayer's contribution base.''.
(c) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70426. 1-PERCENT FLOOR ON DEDUCTION OF CHARITABLE
CONTRIBUTIONS MADE BY CORPORATIONS.
(a) In General.--Section 170(b)(2)(A) is amended to read as follows:
``(A) In general.--Any charitable contribution
otherwise allowable (without regard to this
subparagraph) as a deduction under this section for any
taxable year, other than any contribution to which
subparagraph (B) or (C) applies, shall be allowed only
to the extent that the aggregate of such contributions--
``(i) exceeds 1 percent of the taxpayer's
taxable income for the taxable year, and
``(ii) does not exceed 10 percent of the
taxpayer's taxable income for the taxable year.''.
(b) Application of Carryforward.--Section 170(d)(2) is amended to
read as follows:
``(2) Corporations.--
``(A) In general.--Any charitable contribution taken
into account under subsection (b)(2)(A) for any taxable
year which is not allowed as a deduction by reason of
[[Page 139 STAT. 238]]
clause (ii) thereof shall be taken into account as a
charitable contribution for the succeeding taxable year,
except that, for purposes of determining under this
subparagraph whether such contribution is allowed in
such succeeding taxable year, contributions in such
succeeding taxable year (determined without regard to
this paragraph) shall be taken into account under
subsection (b)(2)(A) before any contribution taken into
account by reason of this paragraph.
``(B) 5-year carryforward.--No charitable
contribution may be carried forward under subparagraph
(A) to any taxable year following the fifth taxable year
after the taxable year in which the charitable
contribution was first taken into account. For purposes
of the preceding sentence, contributions shall be
treated as allowed on a first-in first-out basis.
``(C) Contributions disallowed by 1-percent floor
carried forward only from years in which 10 percent
limitation is exceeded.--In the case of any taxable year
from which a charitable contribution is carried forward
under subparagraph (A) (determined without regard this
subparagraph), subparagraph (A) shall be applied by
substituting `clause (i) or (ii)' for `clause (ii)'.
``(D) Special rule for net operating loss
carryovers. <<NOTE: Reduction.>> --The amount of
charitable contributions carried forward under
subparagraph (A) shall be reduced to the extent that
such carryfoward would (but for this subparagraph)
reduce taxable income (as computed for purposes of the
second sentence of section 172(b)(2)) and increase a net
operating loss carryover under section 172 to a
succeeding taxable year.''.
(c) Conforming Amendments.--Subparagraphs (B)(ii) and (C)(ii) of
section 170(b)(2) are each amended by inserting ``other than
subparagraph (C) thereof'' after ``subsection (d)(2)''.
(d) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70427. PERMANENT INCREASE IN LIMITATION ON COVER OVER OF TAX
ON DISTILLED SPIRITS.
(a) In General.--Paragraph (1) of section 7652(f) is amended to read
as follows:
``(1) $13.25, or''.
(b) <<NOTE: 26 USC 7652 note.>> Effective Date.--The amendment made
by this section shall apply to distilled spirits brought into the United
States after December 31, 2025.
SEC. 70428. <<NOTE: Alaska. Fish and fishing. 26 USC 501
note.>> NONPROFIT COMMUNITY
DEVELOPMENT ACTIVITIES IN REMOTE
NATIVE VILLAGES.
(a) In General.--For purposes of subchapter F of chapter 1 of the
Internal Revenue Code of 1986, any activity substantially related to
participation or investment in fisheries in the Bering Sea and Aleutian
Islands statistical and reporting areas (as described in Figure 1 of
section 679 of title 50, Code of Federal Regulations) carried on by an
entity identified in section 305(i)(1)(D) of the Magnuson-Stevens
Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in
effect on the date of enactment of this section) shall be considered
substantially related to the exercise or performance of the purpose
constituting the basis of such entity's exemption under section 501(a)
of such Code if the
[[Page 139 STAT. 239]]
conduct of such activity is in furtherance of 1 or more of the purposes
specified in section 305(i)(1)(A) of such Act (as so in effect). For
purposes of this paragraph, activities substantially related to
participation or investment in fisheries include the harvesting,
processing, transportation, sales, and marketing of fish and fish
products of the Bering Sea and Aleutian Islands statistical and
reporting areas.
(b) Application to Certain Wholly Owned Subsidiaries.--If
the <<NOTE: Deadline.>> assets of a trade or business relating to an
activity described in subsection (a) of any subsidiary wholly owned by
an entity identified in section 305(i)(1)(D) of the Magnuson-Stevens
Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in
effect on the date of enactment of this section) are transferred to such
entity (including in liquidation of such subsidiary) not later than 18
months after the date of the enactment of this Act--
(1) no gain or income resulting from such transfer shall be
recognized to either such subsidiary or such entity under such
Code, and
(2) all income derived from such subsidiary from such
transferred trade or business shall be exempt from taxation
under such Code.
(c) Effective Date.--This section shall take effect on the date of
the enactment of this Act and shall remain effective during the
existence of the western Alaska community development quota program
established by Section 305(i)(1) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. 1855(i)(1)), as amended.
SEC. 70429. ADJUSTMENT OF CHARITABLE DEDUCTION FOR CERTAIN
EXPENSES INCURRED IN SUPPORT OF NATIVE
ALASKAN SUBSISTENCE WHALING.
(a) In General.--Section 170(n)(1) of the Internal Revenue Code of
1986 is amended by striking ``$10,000'' and inserting ``$50,000''.
(b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70430. EXCEPTION TO PERCENTAGE OF COMPLETION METHOD OF
ACCOUNTING FOR CERTAIN RESIDENTIAL
CONSTRUCTION CONTRACTS.
(a) In General.--Section 460(e) is amended--
(1) in paragraph (1)--
(A) by striking ``home construction contract'' both
places it appears and inserting ``residential
construction contract'', and
(B) by inserting ``(determined by substituting `3-
year' for `2-year' in subparagraph (B)(i) for any
residential construction contract which is not a home
construction contract)'' after ``the requirements of
clauses (i) and (ii) of subparagraph (B)'',
(2) by striking paragraph (4) and redesignating paragraph
(5) as paragraph (4), and
(3) in subparagraph (A) of paragraph (4), as so
redesignated, by striking ``paragraph (4)'' and inserting
``paragraph (3)''.
(b) Application of Exception for Purposes of Alternative Minimum
Tax.--Section 56(a)(3) is amended by striking ``any home construction
contract (as defined in section 460(e)(6))'' and inserting
[[Page 139 STAT. 240]]
``any residential construction contract (as defined in section
460(e)(4))''.
(c) <<NOTE: 26 USC 56 note.>> Effective Date.--The amendments made
by this section shall apply to contracts entered into in taxable years
beginning after the date of the enactment of this Act.
Subchapter D--Permanent Investments in Small Business and Rural America
SEC. 70431. EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN
EXCLUSION.
(a) Phased Increase in Exclusion for Gain From Qualified Small
Business Stock.--
(1) In general.--Section 1202(a)(1) is amended to read as
follows:
``(1) <<NOTE: Time periods.>> In general.-- In the case of a
taxpayer other than a corporation, gross income shall not
include--
``(A) except as provided in paragraphs (3) and (4),
50 percent of any gain from the sale or exchange of
qualified small business stock acquired on or before the
applicable date and held for more than 5 years, and
``(B) the applicable percentage of any gain from the
sale or exchange of qualified small business stock
acquired after the applicable date and held for at least
3 years.''.
(2) Applicable percentage.--Section 1202(a) is amended by
adding at the end the following new paragraph:
``(5) Applicable percentage.--The applicable percentage
under paragraph (1) shall be determined under the following
table:
Applicable
``Years stock held: percentage:
3 years................................................ 50%
4 years................................................ 75%
5 years or more........................................ 100%''.
''. (3) Applicable date; acquisition date.--Section 1202(a),
as amended by paragraph (2), is amended by adding at the end the
following new paragraph:
``(6) Applicable date; acquisition date.--For purposes of
this section--
``(A) <<NOTE: Definition.>> Applicable date.--The
term `applicable date' means the date of the enactment
of this paragraph.
``(B) Acquisition date.--In the case of any stock
which would (but for this paragraph) be treated as
having been acquired before, on, or after the applicable
date, whichever is applicable, the acquisition date for
purposes of this section shall be the first day on which
such stock was held by the taxpayer determined after the
application of section 1223.''.
(4) Continued treatment as not item of tax preference.--
(A) In general.--Section 57(a)(7) is amended by
striking ``An amount'' and inserting ``In the case of
stock
[[Page 139 STAT. 241]]
acquired on or before the date of the enactment of the
Creating Small Business Jobs Act of 2010, an amount''.
(B) Conforming amendment.--Section 1202(a)(4) is
amended--
(i) by striking ``, and'' at the end of
subparagraph (B) and inserting a period, and
(ii) by striking subparagraph (C).
(5) Other conforming amendments.--
(A) Paragraphs (3)(A) and (4)(A) of section 1202(a)
are each amended by striking ``paragraph (1)'' and
inserting ``paragraph (1)(A)''.
(B) Paragraph (4)(A) of section 1202(a) is amended
by inserting ``and on or before the applicable date''
after ``2010''.
(C) Sections 1202(b)(2), 1202(g)(2)(A), and
1202(j)(1)(A) are each amended by striking ``more than 5
years'' and inserting ``at least 3 years (more than 5
years in the case of stock acquired on or before the
applicable date)''.
(6) <<NOTE: 26 USC 57 note.>> Effective dates.--
(A) In general.--Except as provided in subparagraph
(B), the amendments made by this subsection shall apply
to taxable years beginning after the date of the
enactment of this Act.
(B) Continued treatment as not item of tax
preference.--The amendments made by paragraph (4) shall
take effect as if included in the enactment of section
2011 of the Creating Small Business Jobs Act of 2010.
(b) Increase in Per Issuer Limitation.--
(1) In general.--Subparagraph (A) of section 1202(b)(1) is
amended to read as follows:
``(A) the applicable dollar limit for the taxable
year, or''.
(2) Applicable dollar limit.--Section 1202 (b) is amended by
adding at the end the following:
``(4) Applicable dollar limit.--For purposes of paragraph
(1)(A), the applicable dollar limit for any taxable year with
respect to eligible gain from 1 or more dispositions by a
taxpayer of qualified business stock of a corporation is--
``(A) if such stock was acquired by the taxpayer on
or before the applicable date, $10,000,000, reduced by
the aggregate amount of eligible gain taken into account
by the taxpayer under subsection (a) for prior taxable
years and attributable to dispositions of stock issued
by such corporation and acquired by the taxpayer before,
on, or after the applicable date, and
``(B) if such stock was acquired by the taxpayer
after the applicable date, $15,000,000, reduced by the
sum of--
``(i) the aggregate amount of eligible gain
taken into account by the taxpayer under
subsection (a) for prior taxable years and
attributable to dispositions of stock issued by
such corporation and acquired by the taxpayer
before, on, or after the applicable date, plus
``(ii) the aggregate amount of eligible gain
taken into account by the taxpayer under
subsection (a) for the taxable year and
attributable to dispositions of
[[Page 139 STAT. 242]]
stock issued by such corporation and acquired by
the taxpayer on or before the applicable date.
``(5) Inflation adjustment.--
``(A) <<NOTE: Effective date.>> In general.--In the
case of any taxable year beginning after 2026, the
$15,000,000 amount in paragraph (4)(B) shall be
increased by an amount equal to --
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the calendar
year in which the taxable year begins, determined
by substituting `calendar year 2025' for `calendar
year 2016' in subparagraph (A)(ii) thereof.
If any increase under this subparagraph is not a
multiple of $10,000, such increase shall be rounded to
the nearest multiple of $10,000.
``(B) No increase once limit reached.--If, for any
taxable year, the eligible gain attributable to
dispositions of stock issued by a corporation and
acquired by the taxpayer after the applicable date
exceeds the applicable dollar limit, then
notwithstanding any increase under subparagraph (A) for
any subsequent taxable year, the applicable dollar limit
for such subsequent taxable year shall be zero.''.
(3) Separate returns.--Subparagraph (A) of section
1202(b)(3) is amended to read as follows:
``(A) <<NOTE: Applicability.>> Separate returns.--In
the case of a separate return by a married individual
for any taxable year--
``(i) paragraph (4)(A) shall be applied by
substituting `$5,000,000' for `$10,000,000', and
``(ii) paragraph (4)(B) shall be applied by
substituting one-half of the dollar amount in
effect under such paragraph for the taxable year
for the amount so in effect.''.
<<NOTE: 26 USC 1202 note.>> (4) Effective date.--The
amendments made by this subsection shall apply to taxable years
beginning after the date of the enactment of this Act.
(c) Increase in Limit in Aggregate Gross Assets.--
(1) In general.--Subparagraphs (A) and (B) of section
1202(d)(1) are each amended by striking ``$50,000,000'' and
inserting ``$75,000,000''.
(2) Inflation adjustment.--Section 1202(b) is amended by
adding at the end the following:
``(4) <<NOTE: Effective date.>> Inflation adjustment.--In
the case of any taxable year beginning after 2026, the
$75,000,000 amounts in paragraphs (1)(A) and (1)(B) shall each
be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the
taxable year begins, determined by substituting
`calendar year 2025' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
If any increase under this paragraph is not a multiple of
$10,000, such increase shall be rounded to the nearest multiple
of $10,000.''.
(3) <<NOTE: 26 USC 1202 note.>> Effective date.--The
amendments made by this subsection shall apply to stock issued
after the date of the enactment of this Act.
[[Page 139 STAT. 243]]
SEC. 70432. REPEAL OF REVISION TO DE MINIMIS RULES FOR THIRD PARTY
NETWORK TRANSACTIONS.
(a) Reinstatement of Exception for De Minimis Payments as in Effect
Prior to Enactment of American Rescue Plan Act of 2021.--
(1) In general.--Section 6050W(e) is amended to read as
follows:
``(e) Exception for De Minimis Payments by Third Party Settlement
Organizations.--A <<NOTE: Reports.>> third party settlement organization
shall be required to report any information under subsection (a) with
respect to third party network transactions of any participating payee
only if--
``(1) the amount which would otherwise be reported under
subsection (a)(2) with respect to such transactions exceeds
$20,000, and
``(2) the aggregate number of such transactions exceeds
200.''.
(2) <<NOTE: 26 USC 6050W note.>> Effective date.--The
amendment made by this subsection shall take effect as if
included in section 9674 of the American Rescue Plan Act.
(b) Application of De Minimis Rule for Third Party Network
Transactions to Backup Withholding.--
(1) In general.--Section 3406(b) is amended by adding at the
end the following new paragraph:
``(8) Other reportable payments include payments in
settlement of third party network transactions only where
aggregate transactions exceed reporting threshold for the
calendar year.--
``(A) In general.--Any payment in settlement of a
third party network transaction required to be shown on
a return required under section 6050W which is made
during any calendar year shall be treated as a
reportable payment only if--
``(i) the aggregate number of transactions
with respect to the participating payee during
such calendar year exceeds the number of
transactions specified in section 6050W(e)(2), and
``(ii) the aggregate amount of transactions
with respect to the participating payee during
such calendar year exceeds the dollar amount
specified in section 6050W(e)(1) at the time of
such payment.
``(B) Exception if third party network transactions
made in prior year were reportable.--Subparagraph (A)
shall not apply with respect to payments to any
participating payee during any calendar year if one or
more payments in settlement of third party network
transactions made by the payor to the participating
payee during the preceding calendar year were reportable
payments.''.
(2) <<NOTE: 26 USC 3406 note.>> Effective date.--The
amendment made by this subsection shall apply to calendar years
beginning after December 31, 2024.
SEC. 70433. INCREASE IN THRESHOLD FOR REQUIRING INFORMATION
REPORTING WITH RESPECT TO CERTAIN
PAYEES.
(a) In General.--Section 6041(a) is amended by striking ``$600'' and
inserting ``$2,000''.
[[Page 139 STAT. 244]]
(b) Inflation Adjustment.--Section 6041 is amended by adding at the
end the following new subsection:
``(h) Inflation Adjustment.--In the case of any calendar year after
2026, the dollar amount in subsection (a) shall be increased by an
amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under section
1(f)(3) for such calendar year, determined by substituting
`calendar year 2025' for `calendar year 2016' in subparagraph
(A)(ii) thereof.
If any increase under the preceding sentence is not a multiple of $100,
such increase shall be rounded to the nearest multiple of $100.''.
(c) Application to Reporting on Remuneration for Services.--Section
6041A(a)(2) is amended by striking ``is $600 or more'' and inserting
``equals or exceeds the dollar amount in effect for such calendar year
under section 6041(a)''.
(d) Application to Backup Withholding.--Section 3406(b)(6) is
amended--
(1) by striking ``$600'' in subparagraph (A) and inserting
``the dollar amount in effect for such calendar year under
section 6041(a)'', and
(2) by striking ``Only Where Aggregate for Calendar Year Is
$600 or More'' in the heading and inserting ``Only Where in
Excess of Threshold''.
(e) Conforming Amendments.--
(1) The heading of section 6041(a) is amended by striking
``of $600 or More'' and inserting ``Exceeding Threshold''.
(2) Section 6041(a) is amended by striking ``taxable year''
and inserting ``calendar year''.
(f) <<NOTE: 26 USC 3406 note.>> Effective Date.--The amendments made
by this section shall apply with respect to payments made after December
31, 2025.
SEC. 70434. TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING
PRODUCTIONS.
(a) Election to Treat Costs as Expenses.--Section 181(a)(1) is
amended by striking ``qualified film or television production, and any
qualified live theatrical production,'' and inserting ``qualified film
or television production, any qualified live theatrical production, and
any qualified sound recording production''.
(b) Dollar Limitation.--Section 181(a)(2) is amended by adding at
the end the following new subparagraph:
``(C) Qualified sound recording production.--
Paragraph (1) shall not apply to so much of the
aggregate cost of any qualified sound recording
production, or to so much of the aggregate, cumulative
cost of all such qualified sound recording productions
in the taxable year, as exceeds $150,000.''.
(c) No Other Deduction or Amortization Deduction Allowable.--Section
181(b) is amended by striking ``qualified film or television production
or any qualified live theatrical production'' and inserting ``qualified
film or television production, any qualified live theatrical production,
or any qualified sound recording production''.
(d) Election.--Section 181(c)(1) is amended by striking ``qualified
film or television production or any qualified live theatrical
[[Page 139 STAT. 245]]
production'' and inserting ``qualified film or television production,
any qualified live theatrical production, or any qualified sound
recording production''.
(e) Qualified Sound Recording Production Defined.--Section 181 is
amended by redesignating subsections (f) and (g) as subsections (g) and
(h), respectively, and by inserting after subsection (e) the following
new subsection:
``(f) Qualified Sound Recording Production.--For purposes of this
section, the term `qualified sound recording production' means a sound
recording (as defined in section 101 of title 17, United States Code)
produced and recorded in the United States.''.
(f) Application of Termination.--Section 181(h), as redesignated by
subsection (e), is amended by striking ``qualified film and television
productions or qualified live theatrical productions'' and inserting
``qualified film and television productions, qualified live theatrical
productions, or qualified sound recording productions''.
(g) Bonus Depreciation.--
(1) Qualified sound recording production as qualified
property.--Section 168(k)(2)(A)(i) is amended--
(A) by striking ``or'' at the end of subclause (IV),
by inserting ``or'' at the end of subclause (V), and by
inserting after subclause (V) the following:
``(VI) which is a qualified sound
recording production (as defined in
subsection (f) of section 181) for which
a deduction would have been allowable
under section 181 without regard to
subsections (a)(2) and (h) of such
section or this subsection, and'', and
(B) in subclauses (IV) and (V) (as so amended) by
striking ``without regard to subsections (a)(2) and
(g)'' both places it appears and inserting ``without
regard to subsections (a)(2) and (h)''.
(2) Production placed in service.--Section 168(k)(2)(H) is
amended by striking ``and'' at the end of clause (i), by
striking the period at the end of clause (ii) and inserting ``,
and'', and by adding after clause (ii) the following:
``(iii) a qualified sound recording production
shall be considered to be placed in service at the
time of initial release or broadcast.''.
(h) Conforming Amendments.--
(1) The heading for section 181 is amended to read as
follows: ``treatment of certain qualified productions.''.
(2) The table of sections for part VI of subchapter B of
chapter 1 is amended <<NOTE: 26 USC prec. 161.>> by striking the
item relating to section 181 and inserting the following new
item:
``Sec. 181. Treatment of certain qualified productions.''.
(i) <<NOTE: 26 USC 168 note.>> Effective Date.--The amendments made
by this section shall apply to productions commencing in taxable years
ending after the date of the enactment of this Act.
SEC. 70435. EXCLUSION OF INTEREST ON LOANS SECURED BY RURAL OR
AGRICULTURAL REAL PROPERTY.
(a) In General.--Part III of subchapter B of chapter 1, as amended
by the preceding provisions of this Act, is amended by inserting after
section 139K the following new section:
[[Page 139 STAT. 246]]
``SEC. 139L. <<NOTE: Definitions. 26 USC 139L.>> INTEREST ON LOANS
SECURED BY RURAL OR AGRICULTURAL REAL
PROPERTY.
``(a) In General.--Gross income shall not include 25 percent of the
interest received by a qualified lender on any qualified real estate
loan.
``(b) Qualified Lender.--For purposes of this section, the term
`qualified lender' means--
``(1) any bank or savings association the deposits of which
are insured under the Federal Deposit Insurance Act (12 U.S.C.
1811 et seq.),
``(2) any State- or federally-regulated insurance company,
``(3) any entity wholly owned, directly or indirectly, by a
company that is treated as a bank holding company for purposes
of section 8 of the International Banking Act of 1978 (12 U.S.C.
3106) if--
``(A) such entity is organized, incorporated, or
established under the laws of the United States or any
State, and
``(B) the principal place of business of such entity
is in the United States (including any territory of the
United States),
``(4) any entity wholly owned, directly or indirectly, by a
company that is considered an insurance holding company under
the laws of any State if such entity satisfies the requirements
described in subparagraphs (A) and (B) of paragraph (3), and
``(5) with respect to interest received on a qualified real
estate loan secured by real estate described in subsection
(c)(3)(A), any federally chartered instrumentality of the United
States established under section 8.1(a) of the Farm Credit Act
of 1971 (12 U.S.C. 2279aa-1(a)).
``(c) Qualified Real Estate Loan.--For purposes of this section--
``(1) In general.--The term `qualified real estate loan'
means any loan--
``(A) secured by--
``(i) rural or agricultural real estate, or
``(ii) a leasehold mortgage (with a status as
a lien) on rural or agricultural real estate,
``(B) made to a person other than a specified
foreign entity (as defined in section 7701(a)(51)), and
``(C) made after the date of the enactment of this
section.
For purposes of the preceding sentence, the determination of
whether property securing such loan is rural or agricultural
real estate shall be made as of the time the interest income on
such loan is accrued.
``(2) Refinancings.--For purposes of subparagraphs (A) and
(C) of paragraph (1), a loan shall not be treated as made after
the date of the enactment of this section to the extent that the
proceeds of such loan are used to refinance a loan which was
made on or before the date of the enactment of this section (or,
in the case of any series of refinancings, the original loan was
made on or before such date).
``(3) Rural or agricultural real estate.--The term `rural or
agricultural real estate' means--
[[Page 139 STAT. 247]]
``(A) any real property which is substantially used
for the production of one or more agricultural products,
``(B) any real property which is substantially used
in the trade or business of fishing or seafood
processing, and
``(C) any aquaculture facility.
Such term shall not include any property which is not located in
a State or a possession of the United States.
``(4) Aquaculture facility.--The term `aquaculture facility'
means any land, structure, or other appurtenance that is used
for aquaculture (including any hatchery, rearing pond, raceway,
pen, or incubator).
``(d) <<NOTE: Applicability.>> Coordination With Section 265.--In
the case of any qualified real estate loan, section 265 shall be
applied--
``(1) by treating any qualified real estate loan for
purposes of subsection (a)(2) thereof as an obligation the
interest on which is wholly exempt from the taxes imposed by
this subtitle,
``(2) by substituting `25 percent of the interest on
indebtedness' for `Interest on indebtedness' in such subsection
(a)(2),
``(3) by treating 25 percent of the adjusted basis of any
qualified real estate loan as adjusted basis of a tax-exempt
obligation described in subsection (b)(4)(B) thereof, and
``(4) by substituting `25 percent of the amount of such
indebtedness' for `the amount of such indebtedness' in
subsection (b)(6)(A)(a)(ii) thereof.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1, as amended by the preceding provisions of
this Act, is <<NOTE: 26 USC prec. 101>> amended by inserting after the
item relating to section 139K the following new item:
``Sec. 139L. Interest on loans secured by rural or agricultural real
property.''.
(c) Effective Date.-- <<NOTE: 26 USC 139L note.>> The amendments
made by this section shall apply to taxable years ending after the date
of the enactment of this Act.
SEC. 70436. REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR
CERTAIN DEVICES.
(a) Transfer Tax.--Section 5811(a) is amended to read as follows:
``(a) Rate.--There shall be levied, collected, and paid on firearms
transferred a tax at the rate of--
``(1) $200 for each firearm transferred in the case of a
machinegun or a destructive device, and
``(2) $0 for any firearm transferred which is not described
in paragraph (1).''.
(b) Making Tax.--Section 5821(a) is amended to read as follows:
``(a) Rate.--There shall be levied, collected, and paid upon the
making of a firearm a tax at the rate of--
``(1) $200 for each firearm made in the case of a machinegun
or a destructive device, and
``(2) $0 for any firearm made which is not described in
paragraph (1).''.
(c) Conforming Amendment.--Section 4182(a) is amended by adding at
the end the following: ``For purposes of the preceding sentence, any
firearm described in section 5811(a)(2) shall be deemed to be a firearm
on which the tax provided by section 5811 has been paid.''
[[Page 139 STAT. 248]]
(d) <<NOTE: 26 USC 4182 note.>> Effective Date.--The amendments
made by this section shall apply to calendar quarters beginning more
than 90 days after the date of the enactment of this Act.
SEC. 70437. TREATMENT OF CAPITAL GAINS FROM THE SALE OF CERTAIN
FARMLAND PROPERTY.
(a) In General.--Part IV of subchapter O of chapter 1 is amended by
redesignating section 1062 as section 1063 and by inserting after
section 1061 the following new section:
``SEC. 1062. <<NOTE: 26 USC 1062 note.>> GAIN FROM THE SALE OR
EXCHANGE OF QUALIFIED FARMLAND PROPERTY
TO QUALIFIED FARMERS.
``(a) Election to Pay Tax in Installments.--In the case of gain from
the sale or exchange of qualified farmland property to a qualified
farmer, at the election of the taxpayer, the portion of the net income
tax of such taxpayer for the taxable year of the sale or exchange which
is equal to the applicable net tax liability shall be paid in 4 equal
installments.
``(b) Rules Relating to Installment Payments.--
``(1) Date for payment of installments.--If an election is
made under subsection (a), the first installment shall be paid
on the due date (determined without regard to any extension of
time for filing the return) for the return of tax for the
taxable year in which the sale or exchange occurs and each
succeeding installment shall be paid on the due date (as so
determined) for the return of tax for the taxable year following
the taxable year with respect to which the preceding installment
was made.
``(2) Acceleration of payment.--
``(A) In general.--If there is an addition to tax
for failure to timely pay any installment required under
this section, then the unpaid portion of all remaining
installments shall be due on the date of such failure.
``(B) Individuals.--In the case of an individual, if
the individual dies, then the unpaid portion of all
remaining installment shall be paid on the due date for
the return of tax for the taxable year in which the
taxpayer dies.
``(C) C corporations.--In the case of a taxpayer
which is a C corporation, trust, or estate, if there is
a liquidation or sale of substantially all the assets of
the taxpayer (including in a title 11 or similar case),
a cessation of business by the taxpayer (in the case of
a C corporation), or any similar circumstance, then the
unpaid portion of all remaining installments shall be
due on the date of such event (or in the case of a title
11 or similar case, the day before the petition is
filed). <<NOTE: Contracts.>> The preceding sentence
shall not apply to the sale of substantially all the
assets of a taxpayer to a buyer if such buyer enters
into an agreement with the Secretary under which such
buyer is liable for the remaining installments due under
this subsection in the same manner as if such buyer were
the taxpayer.
``(3) Proration of deficiency to installments.--If an
election is made under subsection (a) to pay the applicable net
tax liability in installments and a deficiency has been assessed
with respect to such applicable net tax liability, the
deficiency shall be prorated to the installments payable under
subsection (a). The part of the deficiency so prorated to any
[[Page 139 STAT. 249]]
installment the date for payment of which has not arrived shall
be collected at the same time as, and as a part of, such
installment. <<NOTE: Notice.>> The part of the deficiency so
prorated to any installment the date for payment of which has
arrived shall be paid upon notice and demand from the Secretary.
This section shall not apply if the deficiency is due to
negligence, to intentional disregard of rules and regulations,
or to fraud with intent to evade tax.
``(c) Election.--
``(1) <<NOTE: Deadline.>> In general.--Any election under
subsection (a) shall be made not later than the due date for the
return of tax for the taxable year described in subsection (a).
``(2) Partnerships and s corporations.--In the case of a
sale or exchange described in subsection (a) by a partnership or
S corporation, the election under subsection (a) shall be made
at the partner or
shareholder <<NOTE: Regulations. Guidance.>> level. The
Secretary may prescribe such regulations or other guidance as
necessary to carry out the purposes of this paragraph.
``(d) Definitions.--For purposes of this section--
``(1) Applicable net tax liability.--
``(A) In general.--The applicable net tax liability
with respect to the sale or exchange of any property
described in subsection (a) is the excess (if any) of--
``(i) such taxpayer's net income tax for the
taxable year, over
``(ii) such taxpayer's net income tax for such
taxable year determined without regard to any gain
recognized from the sale or exchange of such
property.
``(B) Net income tax.--The term `net income tax'
means the regular tax liability reduced by the credits
allowed under subparts A, B, and D of part IV of
subchapter A.
``(2) Qualified farmland property.--
``(A) In general.--The term `qualified farmland
property' means real property located in the United
States--
``(i) which--
``(I) has been used by the taxpayer
as a farm for farming purposes, or
``(II) leased by the taxpayer to a
qualified farmer for farming purposes,
during substantially all of the 10-year period
ending on the date of the qualified sale or
exchange, and
``(ii) which is subject to a covenant or other
legally enforceable restriction which prohibits
the use of such property other than as a farm for
farming purposes for any period before the date
that is 10 years after the date of the sale or
exchange described in subsection (a).
For purposes of clause (i), property which is used or
leased by a partnership or S corporation in a manner
described in such clause shall be treated as used or
leased in such manner by each person who holds a direct
or indirect interest in such partnership or S
corporation.
``(B) Farm; farming purposes.--The terms `farm' and
`farming purposes' have the respective meanings given
such terms under section 2032A(e).
[[Page 139 STAT. 250]]
``(3) Qualified farmer.--The term `qualified farmer' means
any individual who is actively engaged in farming (within the
meaning of subsections (b) and (c) of section 1001 of the Food
Security Act of 1986 (7 U.S.C. 1308-1(b) and (c))).
``(e) Return Requirement.--A taxpayer making an election under
subsection (a) shall include with the return for the taxable year of the
sale or exchange described in subsection (a) a copy of the covenant or
other legally enforceable restriction described in subsection
(d)(2)(A)(ii).''.
(b) Clerical Amendment.--The table of sections for part IV of
subchapter O of chapter 1 is amended by redesignating the item relating
to section 1062 <<NOTE: 26 USC prec. 1051.>> as relating to section 1063
and by inserting after the item relating to section 1061 the following
new item:
``Sec. 1062. Gain from the sale or exchange of qualified farmland
property to qualified farmers.''.
(c) <<NOTE: 26 USC 1062 note.>> Effective Date.--The amendments made
by this section shall apply to sales or exchanges in taxable years
beginning after the date of the enactment of this Act.
SEC. 70438. <<NOTE: Applicability.>> EXTENSION OF RULES FOR
TREATMENT OF CERTAIN DISASTER-RELATED
PERSONAL CASUALTY LOSSES.
For purposes of applying section 304(b) of the Taxpayer Certainty
and Disaster Tax Relief Act of 2020 (division EE of Public Law 116-260),
section 301 of such Act shall be applied by substituting the date of the
enactment of this section for ``the date of the enactment of this Act''
each place it appears.
SEC. 70439. RESTORATION OF TAXABLE REIT SUBSIDIARY ASSET TEST.
(a) In General.--Section 856(c)(4)(B)(ii) is amended by striking
``20 percent'' and inserting ``25 percent''.
(b) <<NOTE: 26 USC 856 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2025.
CHAPTER 5--ENDING GREEN NEW DEAL SPENDING, PROMOTING AMERICA-FIRST
ENERGY, AND OTHER REFORMS
Subchapter A--Termination of Green New Deal Subsidies
SEC. 70501. TERMINATION OF PREVIOUSLY-OWNED CLEAN VEHICLE CREDIT.
Section 25E(g) is amended by striking ``December 31, 2032'' and
inserting ``September 30, 2025''.
SEC. 70502. TERMINATION OF CLEAN VEHICLE CREDIT.
(a) In General.--Section 30D(h) is amended by striking ``placed in
service after December 31, 2032'' and inserting ``acquired after
September 30, 2025''.
(b) Conforming Amendments.--Section 30D(e) is amended--
(1) in paragraph (1)(B)--
(A) in clause (iii), by inserting ``and'' after the
comma at the end,
(B) in clause (iv), by striking ``, and'' and
inserting a period, and
(C) by striking clause (v), and
(2) in paragraph (2)(B)--
[[Page 139 STAT. 251]]
(A) in clause (ii), by inserting ``and'' after the
comma at the end,
(B) in clause (iii), by striking the comma at the
end and inserting a period, and
(C) by striking clauses (iv) through (vi).
SEC. 70503. TERMINATION OF QUALIFIED COMMERCIAL CLEAN VEHICLES
CREDIT.
Section 45W(g) is amended by striking ``December 31, 2032'' and
inserting ``September 30, 2025''.
SEC. 70504. TERMINATION OF ALTERNATIVE FUEL VEHICLE REFUELING
PROPERTY CREDIT.
Section 30C(i) is amended by striking ``December 31, 2032'' and
inserting ``June 30, 2026''.
SEC. 70505. TERMINATION OF ENERGY EFFICIENT HOME IMPROVEMENT
CREDIT.
(a) In General.--Section 25C(h) is amended by striking ``placed in
service'' and all that follows through ``December 31, 2032'' and
inserting ``placed in service after December 31, 2025''.
(b) Conforming Amendment.--Section 25C(d)(2)(C) is amended to read
as follows:
``(C) Any oil furnace or hot water boiler which--
``(i) meets or exceeds 2021 Energy Star
efficiency criteria, and
``(ii) is rated by the manufacturer for use
with fuel blends at least 20 percent of the volume
of which consists of an eligible fuel.''.
SEC. 70506. TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT.
(a) In General.--Section 25D(h) is amended by striking ``to property
placed in service after December 31, 2034'' and inserting ``with respect
to any expenditures made after December 31, 2025''.
(b) Conforming Amendments.--Section 25D(g) is amended--
(1) in paragraph (2), by inserting ``and'' after the comma
at the end,
(2) in paragraph (3), by striking `` and before January 1,
2033, 30 percent,'' and inserting ``30 percent.'', and
(3) by striking paragraphs (4) and (5).
SEC. 70507. TERMINATION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
DEDUCTION.
Section 179D is amended by adding at the end the following new
subsection:
``(i) Termination.--This section shall not apply with respect to
property the construction of which begins after June 30, 2026.''.
SEC. 70508. TERMINATION OF NEW ENERGY EFFICIENT HOME CREDIT.
Section 45L(h) is amended by striking ``December 31, 2032'' and
inserting ``June 30, 2026''.
SEC. 70509. TERMINATION OF COST RECOVERY FOR ENERGY PROPERTY.
(a) Energy Property.--Section 168(e)(3)(B)(vi), as amended by
section 13703 of Public Law 117-169, is amended--
(1) by striking subclause (I), and
(2) by redesignating subclauses (II) and (III) as subclauses
(I) and (II), respectively.
[[Page 139 STAT. 252]]
(b) <<NOTE: 26 USC 168 note.>> Effective Date.--The amendments made
by subsection (a) shall apply to property the construction of which
begins after December 31, 2024.
SEC. 70510. MODIFICATIONS OF ZERO-EMISSION NUCLEAR POWER
PRODUCTION CREDIT.
(a) Restrictions Relating to Prohibited Foreign Entities.--Section
45U(c) is amended by adding at the end the following new paragraph:
``(3) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit shall be determined
under subsection (a) for any taxable year beginning
after the date of enactment of this paragraph if the
taxpayer is a specified foreign entity (as defined in
section 7701(a)(51)(B)).
``(B) Other prohibited foreign entities.--No credit
shall be determined under subsection (a) for any taxable
year beginning after the date which is 2 years after the
date of enactment of this paragraph if the taxpayer is a
foreign-influenced entity (as defined in section
7701(a)(51)(D), without regard to clause (i)(II)
thereof).''.
(b) <<NOTE: 26 USC 45U note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after the date of
enactment of this Act.
SEC. 70511. TERMINATION OF CLEAN HYDROGEN PRODUCTION CREDIT.
Section 45V(c)(3)(C) is amended by striking ``January 1, 2033'' and
inserting ``January 1, 2028''.
SEC. 70512. TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY
PRODUCTION CREDIT.
(a) <<NOTE: Definitions.>> Termination for Wind and Solar
Facilities.--Section 45Y(d) is amended--
(1) in paragraph (1), by striking ``The amount of'' and
inserting ``Subject to paragraph (4), the amount of'', and
(2) by striking paragraph (3) and inserting the following
new paragraphs:
``(3) Applicable year.--For purposes of this subsection, the
term `applicable year' means calendar year 2032.
``(4) Termination for wind and solar facilities.--
``(A) In general.--This section shall not apply with
respect to any applicable facility placed in service
after December 31, 2027.
``(B) Applicable facility.--For purposes of this
paragraph, the term `applicable facility' means a
qualified facility which--
``(i) uses wind to produce electricity (within
the meaning of such term as used in section
45(d)(1), as determined without regard to any
requirement under such section with respect to the
date on which construction of property begins), or
``(ii) uses solar energy to produce
electricity (within the meaning of such term as
used in section 45(d)(4), as determined without
regard to any requirement under such section with
respect to the date on which construction of
property begins).''.
[[Page 139 STAT. 253]]
(b) Restrictions Relating to Prohibited Foreign Entities.--Section
45Y is amended--
(1) in subsection (b)(1), by adding at the end the following
new subparagraph:
``(E) Material assistance from prohibited foreign
entities.--The term `qualified facility' shall not
include any facility for which construction begins after
December 31, 2025, if the construction of such facility
includes any material assistance from a prohibited
foreign entity (as defined in section 7701(a)(52)).'',
and
(2) in subsection (g), by adding at the end the following
new paragraph:
``(13) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit shall be determined
under subsection (a) for any taxable year if the
taxpayer is--
``(i) a specified foreign entity (as defined
in section 7701(a)(51)(B)), or
``(ii) a foreign-influenced entity (as defined
in section 7701(a)(51)(D), without regard to
clause (i)(II) thereof).
``(B) <<NOTE: Determination. Applicability.>> Effective
control.--In the case of a taxpayer for which section
7701(a)(51)(D)(i)(II) is determined to apply for any
taxable year, no credit shall be determined under
subsection (a) for such taxable year if such
determination relates to a qualified facility described
in subsection (b)(1).''.
(c) Definitions Relating to Prohibited Foreign Entities.--Section
7701(a) is amended by adding at the end the following new paragraphs:
``(51) Prohibited foreign entity.--
``(A) In general.--
``(i) Definition.--The term `prohibited
foreign entity' means a specified foreign entity
or a foreign-influenced entity.
``(ii) Determination.--
``(I) In general.--Subject to
subclause (II), for any taxable year,
the determination as to whether an
entity is a specified foreign entity or
foreign-influenced entity shall be made
as of the last day of such taxable year.
``(II) Initial taxable year.--For
purposes of the first taxable year
beginning after the date of enactment of
this paragraph, the determination as to
whether an entity is a specified foreign
entity described in clauses (i) through
(iv) of subparagraph (B) shall be made
as of the first day of such taxable
year.
``(B) Specified foreign entity.--For purposes of
this paragraph, the term `specified foreign entity'
means--
``(i) a foreign entity of concern described in
subparagraph (A), (B), (D), or (E) of section
9901(8) of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year
2021 (Public Law 116-283; 15 U.S.C. 4651),
``(ii) an entity identified as a Chinese
military company operating in the United States in
accordance
[[Page 139 STAT. 254]]
with section 1260H of the William M. (Mac)
Thornberry National Defense Authorization Act for
Fiscal Year 2021 (Public Law 116-283; 10 U.S.C.
113 note),
``(iii) an entity included on a list required
by clause (i), (ii), (iv), or (v) of section
2(d)(2)(B) of Public Law 117-78 (135 Stat. 1527),
``(iv) an entity specified under section
154(b) of the National Defense Authorization Act
for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C.
note prec. 4651), or
``(v) a foreign-controlled entity.
``(C) Foreign-controlled entity.--For purposes of
subparagraph (B), the term `foreign-controlled entity'
means--
``(i) the government (including any level of
government below the national level) of a covered
nation,
``(ii) an agency or instrumentality of a
government described in clause (i),
``(iii) a person who is a citizen or national
of a covered nation, provided that such person is
not an individual who is a citizen, national, or
lawful permanent resident of the United States,
``(iv) an entity or a qualified business unit
(as defined in section 989(a)) incorporated or
organized under the laws of, or having its
principal place of business in, a covered nation,
or
``(v) an entity (including subsidiary
entities) controlled (as determined under
subparagraph (G)) by an entity described in clause
(i), (ii), (iii), or (iv).
``(D) Foreign-influenced entity.--
``(i) In general.--For purposes of
subparagraph (A), the term `foreign-influenced
entity' means an entity--
``(I) with respect to which, during
the taxable year--
``(aa) a specified foreign
entity has the direct authority
to appoint a covered officer of
such entity,
``(bb) a single specified
foreign entity owns at least 25
percent of such entity,
``(cc) one or more specified
foreign entities own in the
aggregate at least 40 percent of
such entity, or
``(dd) at least 15 percent
of the debt of such entity has
been issued, in the aggregate,
to 1 or more specified foreign
entities, or
``(II) which, during the previous
taxable year, made a payment to a
specified foreign entity pursuant to a
contract, agreement, or other
arrangement which entitles such
specified foreign entity (or an entity
related to such specified foreign
entity) to exercise effective control
over--
``(aa) any qualified
facility or energy storage
technology of the taxpayer (or
any person related to the
taxpayer), or
[[Page 139 STAT. 255]]
``(bb) with respect to any
eligible component produced by
the taxpayer (or any person
related to the taxpayer)--
``(AA) the extraction,
processing, or recycling of
any applicable critical
mineral, or
``(BB) the production of
an eligible component which
is not an applicable
critical mineral.
``(ii) Effective control.--
``(I) In general.--
``(aa) General rule.--
Subject to subclause (II), for
purposes of clause (i)(II), the
term `effective control' means 1
or more agreements or
arrangements similar to those
described in subclauses (II) and
(III) which provide 1 or more
contractual counterparties of a
taxpayer with specific authority
over key aspects of the
production of eligible
components, energy generation in
a qualified facility, or energy
storage which are not included
in the measures of control
through authority, ownership, or
debt held which are described in
clause (i)(I).
``(bb) <<NOTE: Regulations. Contr
acts.>> Guidance.--The Secretary
shall issue such guidance as is
necessary to carry out the
purposes of this clause,
including the establishment of
rules to prevent entities from
evading, circumventing, or
abusing the application of the
restrictions described
subparagraph (C) and subclauses
(II) and (III) of this clause
through a contract, agreement,
or other arrangement.
``(II) Application of rules prior to
issuance of guidance.--During any period
prior to the date that the guidance
described in subclause (I)(bb) is issued
by the Secretary, for purposes of clause
(i)(II), the term `effective control'
means the unrestricted contractual right
of a contractual counterparty to--
``(aa) determine the
quantity or timing of production
of an eligible component
produced by the taxpayer,
``(bb) determine the amount
or timing of activities related
to the production of electricity
undertaken at a qualified
facility of the taxpayer or the
storage of electrical energy in
energy storage technology of the
taxpayer,
``(cc) determine which
entity may purchase or use the
output of a production unit of
the taxpayer that produces
eligible components,
``(dd) determine which
entity may purchase or use the
output of a qualified facility
of the taxpayer,
``(ee) restrict access to
data critical to production or
storage of energy undertaken at
a qualified facility of the
taxpayer, or to
[[Page 139 STAT. 256]]
the site of production or any
part of a qualified facility or
energy storage technology of the
taxpayer, to the personnel or
agents of such contractual
counterparty, or
``(ff) on an exclusive
basis, maintain, repair, or
operate any plant or equipment
which is necessary to the
production by the taxpayer of
eligible components or
electricity.
``(III) <<NOTE: Intellectual
property.>> Licensing and other
agreements.--
``(aa) In general.--In
addition to subclause (II), for
purposes of clause (i)(II), the
term `effective control' means,
with respect to a licensing
agreement for the provision of
intellectual property (or any
other contract, agreement or
other arrangement entered into
with a contractual counterparty
related to such licensing
agreement) with respect to a
qualified facility, energy
storage technology, or the
production of an eligible
component, any of the following:
``(AA) A contractual
right retained by the
contractual counterparty to
specify or otherwise direct
1 or more sources of
components, subcomponents,
or applicable critical
minerals utilized in a
qualified facility, energy
storage technology, or in
the production of an
eligible component.
``(BB) A contractual
right retained by the
contractual counterparty to
direct the operation of any
qualified facility, any
energy storage technology,
or any production unit that
produces an eligible
component.
``(CC) A contractual
right retained by the
contractual counterparty to
limit the taxpayer's
utilization of intellectual
property related to the
operation of a qualified
facility or energy storage
technology, or in the
production of an eligible
component.
``(DD) A contractual
right retained by the
contractual counterparty to
receive royalties under the
licensing agreement or any
similar agreement (or
payments under any related
agreement) beyond the 10th
year of the agreement
(including modifications or
extensions thereof).
``(EE) A contractual
right retained by the
contractual counterparty to
direct or otherwise require
the taxpayer to enter into
an agreement for the
provision of services for a
duration longer than 2 years
(including any modifications
or extensions thereof).
``(FF) Such contract,
agreement, or other
arrangement does not provide
the licensee with all the
technical data, information,
and know-how necessary to
[[Page 139 STAT. 257]]
enable the licensee to
produce the eligible
component or components
subject to the contract,
agreement, or other
arrangement without further
involvement from the
contractual counterparty or
a specified foreign entity.
``(GG) Such contract,
agreement, or other
arrangement was entered into
(or modified) on or after
the date of enactment of
this paragraph.
``(bb) Exception.--
``(AA) In general.--Item
(aa) shall not apply in the
case of a bona fide purchase
or sale of intellectual
property.
``(BB) Bona fide
purchase or sale.--For
purposes of item (aa), any
purchase or sale of
intellectual property where
the agreement provides that
ownership of the
intellectual property
reverts to the contractual
counterparty after a period
of time shall not be
considered a bona-fide
purchase or sale.
``(IV) Persons related to the
taxpayer.--For purposes of subclauses
(I), (II), and (III), the term
`taxpayer' shall include any person
related to the taxpayer.
``(V) Contractual counterparty.--For
purposes of this clause, the term
`contractual counterparty' means an
entity with which the taxpayer has
entered into a contract, agreement, or
other arrangement.
``(iii) <<NOTE: Deadline. Regulations. Intellectual
property.>> Guidance.--Not later than December
31, 2026, the Secretary shall issue such guidance
as is necessary to carry out the purposes of this
subparagraph, including establishment of rules to
prevent entities from evading, circumventing, or
abusing the application of the restrictions
against impermissible technology licensing
arrangements with specified foreign entities, such
as through temporary transfers of intellectual
property, retention by a specified foreign entity
of a reversionary interest in transferred
intellectual property, or otherwise.
``(E) Publicly traded entities.--
``(i) In general.--
``(I) Nonapplication of certain
foreign-controlled entity rules.--
Subparagraph (C)(v) shall not apply in
the case of any entity the securities of
which are regularly traded on--
``(aa) a national securities
exchange which is registered
with the Securities and Exchange
Commission,
``(bb) the national market
system established pursuant to
section 11A of the Securities
and Exchange Act of 1934, or
``(cc) any other exchange or
other market which the Secretary
has determined in guidance
issued under section
1296(e)(1)(A)(ii) has
[[Page 139 STAT. 258]]
rules adequate to carry out the
purposes of part VI of
subchapter P of chapter 1 of
subtitle A.
``(II) Nonapplication of certain
foreign-influenced entity rules.--
Subparagraph (D)(i)(I) shall not apply
in the case of any entity--
``(aa) the securities of
which are regularly traded in a
manner described in subclause
(I), or
``(bb) for which not less
than 80 percent of the equity
securities of such entity are
owned directly or indirectly by
an entity which is described in
item (aa).
``(III) Exclusion of exchanges or
markets in covered nations.--Subclause
(I)(cc) shall not apply with respect to
any exchange or market which--
``(aa) is incorporated or
organized under the laws of a
covered nation, or
``(bb) has its principal
place of business in a covered
nation.
``(ii) Additional foreign-controlled entity
requirements for publicly traded companies.--In
the case of an entity described in clause (i)(I),
such entity shall be deemed to be a foreign-
controlled entity under subparagraph (C)(v) if
such entity is controlled (as determined under
subparagraph (G)) by--
``(I) 1 or more specified foreign
entities (as determined without regard
to subparagraph (B)(v)) that are each
required to report their beneficial
ownership pursuant to a rule described
in clause (iii)(I)(bb), or
``(II) 1 or more foreign-controlled
entities (as determined without regard
to subparagraph (C)(v)) that are each
required to report their beneficial
ownership pursuant to a rule described
in such clause.
``(iii) Additional foreign-influenced entity
requirements for publicly traded companies.--In
the case of an entity described in clause (i)(II),
such entity shall be deemed to be a foreign-
influenced entity under subparagraph (D)(i)(I)
if--
``(I) during the taxable year--
``(aa) a specified foreign
entity has the authority to
appoint a covered officer of
such entity,
``(bb) a single specified
foreign entity required to
report its beneficial ownership
under Rule 13d-3 of the
Securities and Exchange Act of
1934 (or, in the case of an
exchange or market described in
clause (i)(I)(cc), an equivalent
rule) owns not less than 25
percent of such entity, or
``(cc) 1 or more specified
foreign entities that are each
required to report their
beneficial ownership under Rule
13d-3 of the Securities and
Exchange Act of 1934 own, in the
[[Page 139 STAT. 259]]
aggregate, not less than 40
percent of such entity, or
``(II) such entity has issued debt,
as part of an original issuance, in
excess of 15 percent of its publicly-
traded debt to 1 or more specified
foreign entities.
``(F) Covered officer.--For purposes of this
paragraph, the term `covered officer' means, with
respect to an entity--
``(i) a member of the board of directors,
board of supervisors, or equivalent governing
body,
``(ii) an executive-level officer, including
the president, chief executive officer, chief
operating officer, chief financial officer,
general counsel, or senior vice president, or
``(iii) an individual having powers or
responsibilities similar to those of officers or
members described in clause (i) or (ii).
``(G) Determination of control.--For purposes of
subparagraph (C)(v), the term `control' means--
``(i) in the case of a corporation, ownership
(by vote or value) of more than 50 percent of the
stock in such corporation,
``(ii) in the case of a partnership, ownership
of more than 50 percent of the profits interests
or capital interests in such partnership, or
``(iii) in any other case, ownership of more
than 50 percent of the beneficial interests in the
entity.
``(H) <<NOTE: Applicability.>> Determination of
ownership.--For purposes of this paragraph, section
318(a)(2) shall apply for purposes of determining
ownership of stock in a corporation. Similar principles
shall apply for purposes of determining ownership of
interests in any other entity.
``(I) Other definitions.--For purposes of this
paragraph--
``(i) Applicable critical mineral.--The term
`applicable critical mineral' has the same meaning
given such term under section 45X(c)(6).
``(ii) Covered nation.--The term `covered
nation' has the same meaning given such term under
section 4872(f)(2) of title 10, United States
Code.
``(iii) Eligible component.--The term
`eligible component' has the same meaning given
such term under section 45X(c)(1).
``(iv) Energy storage technology.--The term
`energy storage technology' has the same meaning
given such term under section 48E(c)(2).
``(v) Qualified facility.--The term `qualified
facility' means--
``(I) a qualified facility, as
defined in section 45Y(b)(1), and
``(II) a qualified facility, as
defined in section 48E(b)(3).
``(vi) Related.--The term `related' shall have
the same meaning given such term under sections
267(b) and 707(b).
[[Page 139 STAT. 260]]
``(J) <<NOTE: Applicability. Effective
date.>> Beginning of construction.--For purposes of
applying any provision under this paragraph, the
beginning of construction with respect to any property
shall be determined pursuant to rules similar to the
rules under Internal Revenue Service Notice 2013-29 and
Internal Revenue Service Notice 2018-59 (as well as any
subsequently issued guidance clarifying, modifying, or
updating either such Notice), as in effect on January 1,
2025.
``(K) Regulations and guidance.--The Secretary may
prescribe such regulations and guidance as may be
necessary or appropriate to carry out the provisions of
this paragraph, including rules to prevent the
circumvention of any rules or restrictions with respect
to prohibited foreign entities.
``(52) Material assistance from a prohibited foreign
entity.--
``(A) <<NOTE: Definition.>> In general.--The term
`material assistance from a prohibited foreign entity'
means--
``(i) with respect to any qualified facility
or energy storage technology, a material
assistance cost ratio which is less than the
threshold percentage applicable under subparagraph
(B), or
``(ii) with respect to any facility which
produces eligible components, a material
assistance cost ratio which is less than the
threshold percentage applicable under subparagraph
(C).
``(B) Threshold percentage for qualified facilities
and energy storage technology. <<NOTE: Time
periods. Effective date.>> --For purposes of
subparagraph (A)(i), the threshold percentage shall be--
``(i) in the case of a qualified facility the
construction of which begins--
``(I) during calendar year 2026, 40
percent,
``(II) during calendar year 2027, 45
percent,
``(III) during calendar year 2028,
50 percent,
``(IV) during calendar year 2029, 55
percent, and
``(V) after December 31, 2029, 60
percent, and
``(ii) in the case of energy storage
technology the construction of which begins--
``(I) during calendar year 2026, 55
percent,
``(II) during calendar year 2027, 60
percent,
``(III) during calendar year 2028,
65 percent,
``(IV) during calendar year 2029, 70
percent, and
``(V) after December 31, 2029, 75
percent.
``(C) Threshold percentage for eligible
components.--
``(i) <<NOTE: Time periods. Effective
dates.>> In general.--For purposes of subparagraph
(A)(ii), the threshold percentage shall be--
``(I) in the case of any solar
energy component (as such term is
defined in section 45X(c)(3)(A)) which
is sold--
``(aa) during calendar year
2026, 50 percent,
``(bb) during calendar year
2027, 60 percent,
[[Page 139 STAT. 261]]
``(cc) during calendar year
2028, 70 percent,
``(dd) during calendar year
2029, 80 percent, and
``(ee) after December 31,
2029, 85 percent,
``(II) in the case of any wind
energy component (as such term is
defined in section 45X(c)(4)(A)) which
is sold--
``(aa) during calendar year
2026, 85 percent, and
``(bb) during calendar year
2027, 90 percent,
``(III) in the case of any inverter
described in subparagraphs (B) through
(G) of section 45X(c)(2) which is sold--
``(aa) during calendar year
2026, 50 percent,
``(bb) during calendar year
2027, 55 percent,
``(cc) during calendar year
2028, 60 percent,
``(dd) during calendar year
2029, 65 percent, and
``(ee) after December 31,
2029, 70 percent,
``(IV) in the case of any qualifying
battery component (as such term is
defined in section 45X(c)(5)(A)) which
is sold--
``(aa) during calendar year
2026, 60 percent,
``(bb) during calendar year
2027, 65 percent,
``(cc) during calendar year
2028, 70 percent,
``(dd) during calendar year
2029, 80 percent, and
``(ee) after December 31,
2029, 85 percent, and
``(V) subject to clause (ii), in the
case of any applicable critical mineral
(as such term is defined in section
45X(c)(6)) which is sold--
``(aa) after December 31,
2025, and before January 1,
2030, 0 percent,
``(bb) during calendar year
2030, 25 percent,
``(cc) during calendar year
2031, 30 percent,
``(dd) during calendar year
2032, 40 percent, and
``(ee) after December 31,
2032, 50 percent.
``(ii) Adjusted threshold percentage for
applicable critical
minerals. <<NOTE: Deadline.>> --Not later than
December 31, 2027, the Secretary shall issue
threshold percentages for each of the applicable
critical minerals described in section 45X(c)(6)),
which shall--
``(I) apply in lieu of the threshold
percentage determined under clause
(i)(V) for each calendar year, and
[[Page 139 STAT. 262]]
``(II) equal or exceed the threshold
percentage which would otherwise apply
with respect to such applicable critical
mineral under such clause for such
calendar year, taking into account--
``(aa) domestic geographic
availability,
``(bb) supply chain
constraints,
``(cc) domestic processing
capacity needs, and
``(dd) national security
concerns.
``(D) Material assistance cost ratio.--
``(i) Qualified facilities and energy storage
technology. <<NOTE: Definition.>> --For purposes
of subparagraph (A)(i), the term `material
assistance cost ratio' means the amount (expressed
as a percentage) equal to the quotient of--
``(I) an amount equal to--
``(aa) the total direct
costs to the taxpayer
attributable to all manufactured
products (including components)
which are incorporated into the
qualified facility or energy
storage technology upon
completion of construction,
minus
``(bb) the total direct
costs to the taxpayer
attributable to all manufactured
products (including components)
which are--
``(AA) incorporated into
the qualified facility or
energy storage technology
upon completion of
construction, and
``(BB) mined, produced,
or manufactured by a
prohibited foreign entity,
divided by
``(II) the amount described in
subclause (I)(aa).
``(ii) <<NOTE: Definition.>> Eligible
components.--For purposes of subparagraph (A)(ii),
the term `material assistance cost ratio' means
the amount (expressed as a percentage) equal to
the quotient of--
``(I) an amount equal to--
``(aa) with respect to an
eligible component, the total
direct material costs that are
paid or incurred (within the
meaning of section 461 and any
regulations issued under section
263A) by the taxpayer for
production of such eligible
component, minus
``(bb) with respect to an
eligible component, the total
direct material costs that are
paid or incurred (within the
meaning of section 461 and any
regulations issued under section
263A) by the taxpayer for
production of such eligible
component that are mined,
produced, or manufactured by a
prohibited foreign entity,
divided by
``(II) the amount described in
subclause (I)(aa).
``(iii) Safe harbor tables.--
``(I) <<NOTE: Deadline. Guidance.>> In
general.--Not later than December 31,
2026, the Secretary shall issue safe
harbor tables (and such other guidance
as deemed necessary) to--
[[Page 139 STAT. 263]]
``(aa) identify the
percentage of total direct costs
of any manufactured product
which is attributable to a
prohibited foreign entity,
``(bb) identify the
percentage of total direct
material costs of any eligible
component which is attributable
to a prohibited foreign entity,
and
``(cc) <<NOTE: Determination.>> p
rovide all rules necessary to
determine the amount of a
taxpayer's material assistance
from a prohibited foreign entity
within the meaning of this
paragraph.
``(II) <<NOTE: Effective
date.>> Safe harbors prior to
issuance.--For purposes of this
paragraph, prior to the date on which
the Secretary issues the safe harbor
tables described in subclause (I), and
for construction of a qualified facility
or energy storage technology which
begins on or before the date which is 60
days after the date of issuance of such
tables, a taxpayer may--
``(aa) use the tables
included in Internal Revenue
Service Notice 2025-08 to
establish the percentage of the
total direct costs of any listed
eligible component and any
manufactured product, and
``(bb) <<NOTE: Certification.>> r
ely on a certification by the
supplier of the manufactured
product, eligible component, or
constituent element, material,
or subcomponent of an eligible
component--
``(AA) of the total
direct costs or the total
direct material costs, as
applicable, of such product
or component that was not
produced or manufactured by
a prohibited foreign entity,
or
``(BB) that such product
or component was not
produced or manufactured by
a prohibited foreign entity.
``(III) Exception.--Notwithstanding
subclauses (I) and (II)--
``(aa) if the taxpayer knows
(or has reason to know) that a
manufactured product or eligible
component was produced or
manufactured by a prohibited
foreign entity, the taxpayer
shall treat all direct costs
with respect to such
manufactured product, or all
direct material costs with
respect to such eligible
component, as attributable to a
prohibited foreign entity, and
``(bb) if the taxpayer knows
(or has reason to know) that the
certification referred to in
subclause (II)(bb) pertaining to
a manufactured product or
eligible component is
inaccurate, the taxpayer may not
rely on such certification.
``(IV) Certification requirement.--
In a manner consistent with Treasury
Regulation section 1.45X-4(c)(4)(i) (as
in effect on the date of
[[Page 139 STAT. 264]]
enactment of this paragraph), the
certification referred to in subclause
(II)(bb) shall--
``(aa) include--
``(AA) the supplier's
employer identification
number, or
``(BB) any such similar
identification number issued
by a foreign government,
``(bb) be signed under
penalties of perjury,
``(cc) <<NOTE: Time
period.>> be retained by the
supplier and the taxpayer for a
period of not less than 6 years
and shall be provided to the
Secretary upon request, and
``(dd) be from the supplier
from which the taxpayer
purchased any manufactured
product, eligible component, or
constituent elements, materials,
or subcomponents of an eligible
component, stating--
``(AA) that such
property was not produced or
manufactured by a prohibited
foreign entity and that the
supplier does not know (or
have reason to know) that
any prior supplier in the
chain of production of that
property is a prohibited
foreign entity,
``(BB) for purposes of
section 45X, the total
direct material costs for
each component, constituent
element, material, or
subcomponent that were not
produced or manufactured by
a prohibited foreign entity,
or
``(CC) for purposes of
section 45Y or section 48E,
the total direct costs
attributable to all
manufactured products that
were not produced or
manufactured by a prohibited
foreign entity.
``(iv) <<NOTE: Designation. Effective
dates.>> Existing contract.--Upon the election of
the taxpayer (in such form and manner as the
Secretary shall designate), in the case of any
manufactured product, eligible component, or
constituent element, material, or subcomponent of
an eligible component which is--
``(I) acquired by the taxpayer, or
manufactured or assembled by or for the
taxpayer, pursuant to a binding written
contract which was entered into prior to
June 16, 2025, and
``(II)(aa) placed into service
before January 1, 2030 (or, in the case
of an applicable facility, as defined in
section 45Y(d)(4)(B), before January 1,
2028) in a facility the construction of
which began before August 1, 2025, or
``(bb) in the case of a constituent
element, material, or subcomponent, used
in a product sold before January 1,
2030,
the cost to the taxpayer with respect to such
product, component, element, material, or
subcomponent shall not be included for purposes of
determining the material assistance cost ratio
under this subparagraph.
[[Page 139 STAT. 265]]
``(v) <<NOTE: Guidance.>> Anti-circumvention
rules.--The Secretary shall prescribe such
regulations and guidance as may be necessary or
appropriate to prevent circumvention of the rules
under this subparagraph, including prevention of--
``(I) any abuse of the exception
provided under clause (iv) through the
stockpiling of any manufactured product,
eligible component, or constituent
element, material, or subcomponent of an
eligible component during any period
prior to the application of the
requirements under this paragraph, or
``(II) any evasion with respect to
the requirements of this subparagraph
where the facts and circumstances
demonstrate that the beginning of
construction of a qualified facility or
energy storage technology has not in
fact occurred.
``(E) Other definitions.--For purposes of this
paragraph--
``(i) Eligible component.--The term `eligible
component' means--
``(I) any property described in
section 45X(c)(1), or
``(II) any component which is
identified by the Secretary pursuant to
regulations or guidance issued under
subparagraph (G).
``(ii) Energy storage technology.--The term
`energy storage technology' has the same meaning
given such term under section 48E(c)(2).
``(iii) Manufactured product.--The term
`manufactured product' means--
``(I) a manufactured product which
is a component of a qualified facility,
as described in section 45Y(g)(11)(B)
and any guidance issued thereunder, or
``(II) any product which is
identified by the Secretary pursuant to
regulations or guidance issued under
subparagraph (G).
``(iv) Qualified facility.--The term
`qualified facility' means--
``(I) a qualified facility, as
defined in section 45Y(b)(1),
``(II) a qualified facility, as
defined in section 48E(b)(3), and
``(III) any qualified
interconnection property (as defined in
section 48E(b)(4)) which is part of the
qualified investment with respect to a
qualified facility (as described in
section 48E(b)(1)).
``(F) Determination of ownership; beginning of
construction. <<NOTE: Applicability.>> --Rules similar
to the rules under subparagraphs (H) and (J) of
paragraph (51) shall apply for purposes of this
paragraph.
``(G) Regulations and guidance.--The Secretary may
prescribe such regulations and guidance as may be
necessary or appropriate to carry out the provisions of
this paragraph, including--
[[Page 139 STAT. 266]]
``(i) identification of components or products
for purposes of clauses (i) and (iii) of
subparagraph (E), and
``(ii) for purposes of subparagraph (A)(ii),
rules to address facilities which produce more
than one eligible component.''.
(d) Denial of Credit for Certain Wind and Solar Leasing
Arrangements.--Section 45Y is amended by adding at the end the following
new subsection:
``(h) Denial of Credit for Wind and Solar Leasing Arrangements.--No
credit shall be determined under this section with respect to any
production of electricity during the taxable year with respect to
property described in paragraph (1) or (4) of section 25D(d) (as applied
by substituting `lessee' for `taxpayer') if the taxpayer rents or leases
such property to a third party during such taxable year.''.
(e) Emissions Rates Tables.--Section 45Y(b)(2)(C) is amended by
adding at the end the following new clause:
``(iii) <<NOTE: Determinations.>> Existing
studies.--For purposes of clause (i), in
determining greenhouse gas emissions rates for
types or categories of facilities for the purpose
of determining whether a facility satisfies the
requirements under paragraph (1), the Secretary
shall consider studies published on or before the
date of enactment of this clause which demonstrate
a net lifecycle greenhouse gas emissions rate
which is not greater than zero using widely
accepted lifecycle assessment concepts, such as
concepts described in standards developed by the
International Organization for Standardization.''.
(f) Nuclear Energy Communities.--
(1) In general.--Section 45(b)(11) is amended--
(A) in subparagraph (B)--
(i) in clause (ii)(II), by striking ``or'' at
the end,
(ii) in clause (iii)(II), by striking the
period at the end and inserting ``, or'', and
(iii) by adding at the end the following new
clause:
``(iv) <<NOTE: Time period.>> for purposes of
any qualified facility which is an advanced
nuclear facility, a metropolitan statistical area
which has (or, at any time during the period
beginning after December 31, 2009, had) 0.17
percent or greater direct employment related to
the advancement of nuclear power, including
employment related to--
``(I) an advanced nuclear facility,
``(II) advanced nuclear power
research and development,
``(III) nuclear fuel cycle research,
development, or production, including
mining, enrichment, manufacture,
storage, disposal, or recycling of
nuclear fuel, and
``(IV) the manufacturing or assembly
of components used in an advanced
nuclear facility.'', and
(B) by adding at the end the following new
subparagraph:
``(C) Advanced nuclear facilities.--
[[Page 139 STAT. 267]]
``(i) <<NOTE: Definition.>> In general.--
Subject to clause (ii), for purposes of
subparagraph (B)(iv), the term `advanced nuclear
facility' means any nuclear facility the reactor
design for which is approved in the manner
described in section 45J(d)(2).
``(ii) Special rule.--For purposes of clause
(i), a facility shall be deemed to have a reactor
design which is approved in the manner described
in section 45J(d)(2) if the Nuclear Regulatory
Commission has authorized construction and issued
a site-specific construction permit or combined
license with respect to such facility (without
regard to whether the reactor design was approved
after December 31, 1993).''.
(2) Nonapplication for clean electricity investment
credit.--Section 48E(a)(3)(A)(i) is amended by inserting ``, as
applied without regard to clause (iv) thereof'' after ``section
45(b)(11)(B)''.
(g) Conforming Amendments.--Section 45Y(b)(1) is amended--
(1) by redesignating subparagraph (D) as subparagraph (E),
and
(2) by inserting after subparagraph (C) the following new
subparagraph:
``(D) Determination of capacity.--For purposes of
subparagraph (C), additions of capacity of a facility
shall be determined in any reasonable manner, including
based on--
``(i) determinations by, or reports to, the
Federal Energy Regulatory Commission (including
interconnection agreements), the Nuclear
Regulatory Commission, or any similar entity,
reflecting additions of capacity,
``(ii) determinations or reports reflecting
additions of capacity made by an independent
professional engineer,
``(iii) reports to, or issued by, regional
transmission organizations or independent system
operators reflecting additions of capacity, or
``(iv) any other method or manner provided by
the Secretary.''.
(h) Prohibition on Transfer of Credits to Specified Foreign
Entities.--Section 6418(g) is amended by adding at the end the following
new paragraph:
``(5) Prohibition on transfer of credits to specified
foreign entities.--With respect to any eligible credit described
in clause (iii), (iv), (vi), (vii), (viii), or (xi) of
subsection (f)(1)(A), an eligible taxpayer may not elect to
transfer any portion of such credit to a taxpayer that is a
specified foreign entity (as defined in section
7701(a)(51)(B)).''.
(i) Extension of Period of Limitations for Errors Relating to
Determining of Material Assistance From a Prohibited Foreign Entity.--
Section 6501 is amended--
(1) by redesignating subsection (o) as subsection (p), and
(2) by inserting after subsection (n) the following new
subsection:
``(o) Material Assistance From a Prohibited Foreign Entity.--In the
case of a deficiency attributable to an error with
[[Page 139 STAT. 268]]
respect to the determination under section 7701(a)(52) for any taxable
year, such deficiency may be assessed at any time within 6 years after
the return for such year was filed.''.
(j) Imposition of Accuracy-related Penalties.--
(1) In general.--Section 6662 is amended by adding at the
end the following new subsection:
``(m) Substantial Understatement of Income Tax Due to Disallowance
of Applicable Energy Credits.--
``(1) In general.--In the case of a taxpayer for which there
is a disallowance of an applicable energy credit for any taxable
year, for purposes of determining whether there is a substantial
understatement of income tax for such taxable year, subsection
(d)(1) shall be applied--
``(A) in subparagraphs (A) and (B), by substituting
`1 percent' for `10 percent' each place it appears, and
``(B) without regard to subparagraph (C).
``(2) Disallowance of an applicable energy credit.--
For <<NOTE: Definition.>> purposes of this subsection, the term
`disallowance of an applicable energy credit' means the
disallowance of a credit under section 45X, 45Y, or 48E by
reason of overstating the material assistance cost ratio (as
determined under section 7701(a)(52)) with respect to any
qualified facility, energy storage technology, or facility which
produces eligible components.''.
(2) Conforming amendment.--Section 6417(d)(6) is amended by
adding at the end the following new subparagraph:
``(D) Disallowance of an applicable energy credit.--
In the case of an applicable entity which made an
election under subsection (a) with respect to an
applicable credit for which there is a disallowance
described in section 6662(m)(2), subparagraph (A) shall
apply with respect to any excessive payment resulting
from such disallowance.''.
(k) Penalty for Substantial Misstatements on Certification Provided
by Supplier.--
(1) In general.--Part I of subchapter B of chapter 68 is
amended by inserting after section 6695A the following new
section:
``SEC. 6695B. <<NOTE: 26 USC 6695B.>> PENALTY FOR SUBSTANTIAL
MISSTATEMENTS ON CERTIFICATION
PROVIDED BY SUPPLIER.
``(a) Imposition of Penalty.--If--
``(1) a person--
``(A) provides a certification described in clause
(iii)(II)(bb) of section 7701(a)(52)(D) with respect to
any manufactured product, eligible component, or
constituent element, material, or subcomponent of an
eligible component, and
``(B) knows, or reasonably should have known, that
the certification would be used in connection with a
determination under such section,
``(2) such person knows, or reasonably should have known,
that such certification is inaccurate or false with respect to--
``(A) whether such property was produced or
manufactured by a prohibited foreign entity, or
``(B) the total direct costs or total direct
material costs of such property that was not produced or
manufactured
[[Page 139 STAT. 269]]
by a prohibited foreign entity that were provided on
such certification, and
``(3) the inaccuracy or falsity described in paragraph (2)
resulted in the disallowance of an applicable energy credit (as
defined in section 6662(m)(2)) and an understatement of income
tax (within the meaning of section 6662(d)(2)) for the taxable
year in an amount which exceeds the lesser of--
``(A) 5 percent of the tax required to be shown on
the return for the taxable year, or
``(B) $100,000,
then such person shall pay a penalty in the amount determined
under subsection (b).
``(b) Amount of Penalty.--The amount of the penalty imposed under
subsection (a) on any person with respect to a certification shall be
equal to the greater of--
``(1) 10 percent of the amount of the underpayment (as
defined in section 6664(a)) solely attributable to the
inaccuracy or falsity described in subsection (a)(2), or
``(2) $5,000.
``(c) Exception.--No penalty shall be imposed under subsection (a)
if the person establishes to the satisfaction of the Secretary that any
inaccuracy or falsity described in subsection (a)(2) is due to a
reasonable cause and not willful neglect.
``(d) Definitions.--Any term used in this section which is also used
in section 7701(a)(52) shall have the meaning given such term in such
section.''.
(2) Clerical amendments.--
(A) Section 6696 is amended--
(i) in the heading, by striking ``and 6695a''
and inserting ``6695a, and 6695b'',
(ii) in subsections (a), (b), and (e), by
striking ``and 6695A'' each place it appears and
inserting ``6695A, and 6695B'',
(iii) in subsection (c), by striking ``or
6695A'' and inserting ``6695A, or 6695B'', and
(iv) in subsection (d)--
(I) in paragraph (1), by inserting
``(or, in the case of any penalty under
section 6695B, 6 years)'' after
``assessed within 3 years'', and
(II) in paragraph (2), by inserting
``(or, in the case of any claim for
refund of an overpayment of any penalty
assessed under section 6695B, 6 years)''
after ``filed within 3 years''.
(B) The table of sections for part I of subchapter B
of chapter 68 <<NOTE: 26 USC prec. 6671.>> is amended by
inserting after item relating to section 6695A the
following new item:
``Sec. 6695B. Penalty for substantial misstatements on certification
provided by supplier.''.
(l) <<NOTE: Applicability. 26 USC 45 note.>> Effective Dates.--
(1) In general.--Except as provided in paragraphs (2), (3),
and (4), the amendments made by this section shall apply to
taxable years beginning after the date of enactment of this Act.
(2) Material assistance from prohibited foreign entities.--
The amendments made by subsection (b)(1) shall apply to
facilities for which construction begins after December 31,
2025.
[[Page 139 STAT. 270]]
(3) Penalty for substantial misstatements on certification
provided by supplier.--The amendments made by subsection (k)
shall apply to certifications provided after December 31, 2025.
(4) Termination for wind and solar facilities.--The
amendments made by subsection (a) shall apply to facilities the
construction of which begins after the date which is 12 months
after the date of enactment of this Act.
SEC. 70513. TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY
INVESTMENT CREDIT.
(a) Termination for Wind and Solar Facilities.--Section 48E(e) is
amended--
(1) in paragraph (1), by striking ``The amount of'' and
inserting ``Subject to paragraph (4), the amount of'', and
(2) by adding at the end the following new paragraph:
``(4) Termination for wind and solar facilities.--
``(A) In general.--This section shall not apply to
any qualified property placed in service by the taxpayer
after December 31, 2027, which is part of an applicable
facility.
``(B) <<NOTE: Definition.>> Applicable facility.--
For purposes of this paragraph, the term `applicable
facility' means a qualified facility which--
``(i) uses wind to produce electricity (within
the meaning of such term as used in section
45(d)(1), as determined without regard to any
requirement under such section with respect to the
date on which construction of property begins), or
``(ii) uses solar energy to produce
electricity (within the meaning of such term as
used in section 45(d)(4), as determined without
regard to any requirement under such section with
respect to the date on which construction of
property begins).
``(C) Exception.--This paragraph shall not apply
with respect to any energy storage technology which is
placed in service at any applicable facility.''.
(b) Restrictions Relating to Prohibited Foreign Entities.--
(1) In general.--Section 48E is amended--
(A) in subsection (b)--
(i) by redesignating paragraph (6) as
paragraph (7), and
(ii) by inserting after paragraph (5) the
following new paragraph:
``(6) Material assistance from prohibited foreign
entities.--The terms `qualified facility' and `qualified
interconnection property' shall not include any facility or
property the construction, reconstruction, or erection of which
begins after December 31, 2025, if the construction,
reconstruction, or erection of such facility or property
includes any material assistance from a prohibited foreign
entity (as defined in section 7701(a)(52)).'', and
(B) in subsection (c), by adding at the end the
following new paragraph:
``(3) Material assistance from prohibited foreign
entities.--The term `energy storage technology' shall not
include any property the construction of which begins after
December
[[Page 139 STAT. 271]]
31, 2025, if the construction of such property includes any
material assistance from a prohibited foreign entity (as defined
in section 7701(a)(52)).''.
(2) Additional restrictions.--Section 48E(d) is amended by
adding at the end the following new paragraph:
``(6) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit shall be determined
under subsection (a) for any taxable year if the
taxpayer is--
``(i) a specified foreign entity (as defined
in section 7701(a)(51)(B)), or
``(ii) a foreign-influenced entity (as defined
in section 7701(a)(51)(D), without regard to
clause (i)(II) thereof).
``(B) <<NOTE: Determination. Applicability.>> Effective
control.--In the case of a taxpayer for which section
7701(a)(51)(D)(i)(II) is determined to apply for any
taxable year, no credit shall be determined under
subsection (a) for such taxable year if such
determination relates to a qualified facility described
in subsection (b)(3) or energy storage technology
described in subsection (c)(2).''.
(3) Recapture.--
(A) In general.--Section 50(a) is amended--
(i) by redesignating paragraphs (4) through
(6) as paragraphs (5) through (7), respectively,
(ii) by inserting after paragraph (3) the
following new paragraph:
``(4) <<NOTE: Definitions.>> Payments to prohibited foreign
entities.--
``(A) <<NOTE: Time period.>> In general.--If there
is an applicable payment made by a specified taxpayer
before the close of the 10-year period beginning on the
date such taxpayer placed in service investment credit
property which is eligible for the clean electricity
investment credit under section 48E(a), then the tax
under this chapter for the taxable year in which such
applicable payment occurs shall be increased by 100
percent of the aggregate decrease in the credits allowed
under section 38 for all prior taxable years which would
have resulted solely from reducing to zero any credit
determined under section 46 which is attributable to the
clean electricity investment credit under section 48E(a)
with respect to such property.
``(B) Applicable payment.--For purposes of this
paragraph, the term `applicable payment' means, with
respect to any taxable year, a payment or payments
described in section 7701(a)(51)(D)(i)(II).
``(C) Specified taxpayer.--For purposes of this
paragraph, the term `specified taxpayer' means any
taxpayer who has been allowed a credit under section
48E(a) for any taxable year beginning after the date
which is 2 years after the date of enactment of this
paragraph.'',
(iii) in paragraph (5), as redesignated by
clause (i), by striking ``or any applicable
transaction to which paragraph (3)(A) applies,''
and inserting ``any applicable transaction to
which paragraph (3)(A) applies, or any applicable
payment to which paragraph (4)(A) applies,'', and
[[Page 139 STAT. 272]]
(iv) in paragraph (7), as redesignated by
clause (i), by striking ``or (3)'' and inserting
``(3), or (4)''.
(B) Conforming amendments.--
(i) Section 1371(d)(1) is amended by striking
``section 50(a)(5)'' and inserting ``section
50(a)(6)''.
(ii) Section 6418(g)(3) is amended by striking
``subsection (a)(5)'' each place it appears and
inserting ``subsection (a)(7)''.
(c) Denial of Credit for Expenditures for Certain Wind and Solar
Leasing Arrangements.--
(1) In general.--Section 48E is amended--
(A) by redesignating subsection (i) as subsection
(j), and
(B) by inserting after subsection (h) the following
new subsection:
``(i) Denial of Credit for Expenditures for Wind and Solar Leasing
Arrangements.--No credit shall be determined under this section for any
qualified investment during the taxable year with respect to property
described in paragraph (1) or (4) of section 25D(d) (as applied by
substituting `lessee' for `taxpayer') if the taxpayer rents or leases
such property to a third party during such taxable year.''.
(2) Conforming rules.--Section 50 is amended by adding at
the end the following new subsection:
``(e) <<NOTE: Determination.>> Rules for Geothermal Heat Pumps.--
For purposes of this section and section 168, the ownership of energy
property described in section 48(a)(3)(A)(vii) shall be determined
without regard to whether such property is readily usable by a person
other than the lessee or service recipient.''.
(d) Domestic Content Rules.--Subparagraph (B) of section 48E(a)(3)
is amended to read as follows:
``(B) <<NOTE: Applicability. Determination. Time
periods.>> Domestic content.--Rules similar to the
rules of section 48(a)(12) shall apply, except that, for
purposes of subparagraph (B) of such section and the
application of rules similar to the rules of section
45(b)(9)(B), the adjusted percentage (as determined
under section 45(b)(9)(C)) shall be determined as
follows:
``(i) In the case of any qualified investment
with respect to any qualified facility or energy
storage technology the construction of which
begins before June 16, 2025, 40 percent (or, in
the case of a qualified facility which is an
offshore wind facility, 20 percent).
``(ii) In the case of any qualified investment
with respect to any qualified facility or energy
storage technology the construction of which
begins on or after June 16, 2025, and before
January 1, 2026, 45 percent (or, in the case of a
qualified facility which is an offshore wind
facility, 27.5 percent).
``(iii) In the case of any qualified
investment with respect to any qualified facility
or energy storage technology the construction of
which begins during calendar year 2026, 50 percent
(or, in the case of a qualified facility which is
an offshore wind facility, 35 percent).
[[Page 139 STAT. 273]]
``(iv) <<NOTE: Effective date.>> In the case
of any qualified investment with respect to any
qualified facility or energy storage technology
the construction of which begins after December
31, 2026, 55 percent.''.
(e) Elimination of Energy Credit for Certain Energy Property.--
Section 48(a)(2) is amended--
(1) in subparagraph (A)(ii), by striking ``2 percent'' and
inserting ``0 percent'', and
(2) by adding at the end the following new subparagraph:
``(C) Nonapplication of increases to energy
percentage.--For purposes of energy property described
in subparagraph (A)(ii), the energy percentage
applicable to such property pursuant to such
subparagraph shall not be increased or otherwise
adjusted by any provision of this section.''.
(f) Application of Clean Electricity Investment Credit to Qualified
Fuel Cell Property.--Section 48E, as amended by subsection (c), is
amended--
(1) by redesignating subsection (j) as subsection (k), and
(2) by inserting after subsection (i) the following new
subsection:
``(j) Application to Qualified Fuel Cell Property.--For purposes of
this section, in the case of any qualified fuel cell property (as
defined in section 48(c)(1), as applied without regard to subparagraph
(E) thereof)--
``(1) subsection (b)(3)(A) shall be applied without regard
to clause (iii) thereof,
``(2) for purposes of subsection (a)(1), the applicable
percentage shall be 30 percent and such percentage shall not be
increased or otherwise adjusted by any other provision of this
section, and
``(3) subsection (g) shall not apply.''.
(g) <<NOTE: Applicability. 26 USC 48 note.>> Effective Dates.--
(1) In general.--Except as provided in paragraphs (2), (3),
(4), and (5), the amendments made by this section shall apply to
taxable years beginning after the date of enactment of this Act.
(2) Domestic content rules.--The amendment made by
subsection (d) shall apply on or after June 16, 2025.
(3) Elimination of energy credit for certain energy
property.--The amendments made by subsection (e) shall apply to
property the construction of which begins on or after June 16,
2025.
(4) Application of clean electricity investment credit to
qualified fuel cell property.--The amendments made by subsection
(f) shall apply to property the construction of which begins
after December 31, 2025.
(5) <<NOTE: Time period.>> Termination for wind and solar
facilities.--The amendments made by subsection (a) shall apply
to facilities the construction of which begins after the date
which is 12 months after the date of enactment of this Act.
SEC. 70514. PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING
PRODUCTION CREDIT.
(a) Modification of Provision Relating to Sale of Integrated
Components.--Paragraph (4) of section 45X(d) is amended to read as
follows:
[[Page 139 STAT. 274]]
``(4) Sale of integrated components.--
``(A) In general.--For purposes of this section, a
person shall be treated as having sold an eligible
component to an unrelated person if--
``(i) such component (referred to in this
paragraph as the `primary component') is
integrated, incorporated, or assembled into
another eligible component (referred to in this
paragraph as the `secondary component') produced
within the same manufacturing facility as the
primary component, and
``(ii) the secondary component is sold to an
unrelated person.
``(B) <<NOTE: Applicability.>> Additional
requirements.--Subparagraph (A) shall only apply with
respect to a secondary component for which not less than
65 percent of the total direct material costs which are
paid or incurred (within the meaning of section 461 and
any regulations issued under section 263A) by the
taxpayer to produce such secondary component are
attributable to primary components which are mined,
produced, or manufactured in the United States.''.
(b) Phase Out and Termination.--Section 45X(b)(3) is amended--
(1) in the heading, by inserting ``and termination'' after
``Phase out'',
(2) in subparagraph (A), in the matter preceding clause (i),
by striking ``subparagraph (C)'' and inserting ``subparagraphs
(C) and (D)'', and
(3) <<NOTE: Effective dates.>> by striking subparagraph (C)
and inserting the following:
``(C) Phase out for applicable critical minerals
other than metallurgical coal.--
``(i) In general.--In the case of any
applicable critical mineral (other than
metallurgical coal) produced after December 31,
2030, the amount determined under this subsection
with respect to such mineral shall be equal to the
product of--
``(I) the amount determined under
paragraph (1) with respect to such
mineral, as determined without regard to
this subparagraph, multiplied by
``(II) the phase out percentage
under clause (ii).
``(ii) <<NOTE: Time periods.>> Phase out
percentage for applicable critical minerals other
than metallurgical coal.--The phase out percentage
under this clause is equal to--
``(I) in the case of any applicable
critical mineral produced during
calendar year 2031, 75 percent,
``(II) in the case of any applicable
critical mineral produced during
calendar year 2032, 50 percent,
``(III) in the case of any
applicable critical mineral produced
during calendar year 2033, 25 percent,
and
``(IV) in the case of any applicable
critical mineral produced after December
31, 2033, 0 percent.
[[Page 139 STAT. 275]]
``(D) Termination for wind energy components.--This
section shall not apply to any wind energy component
produced and sold after December 31, 2027.
``(E) Termination for metallurgical coal.--This
section shall not apply to any metallurgical coal
produced after December 31, 2029.''.
(c) Restrictions Relating to Prohibited Foreign Entities.--Section
45X is amended--
(1) in subsection (c)(1), by adding at the end the following
new subparagraph:
``(C) Material assistance from prohibited foreign
entities.--In the case of taxable years beginning after
the date of enactment of this subparagraph, the term
`eligible component' shall not include any property
which includes any material assistance from a prohibited
foreign entity (as defined in section 7701(a)(52), as
applied by substituting `used in a product sold before
January 1, 2027' for `used in a product sold before
January 1, 2030' in subparagraph (D)(iv)(II)(bb)
thereof).'', and
(2) in subsection (d), as amended by subsection (a) of this
section, by adding at the end the following new paragraph:
``(4) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit shall be determined
under subsection (a) for any taxable year if the
taxpayer is--
``(i) a specified foreign entity (as defined
in section 7701(a)(51)(B)), or
``(ii) a foreign-influenced entity (as defined
in section 7701(a)(51)(D), without regard to
clause (i)(II) thereof).
``(B) <<NOTE: Determination. Applicability.>>
Effective control.--In the case of a taxpayer for which
section 7701(a)(51)(D)(i)(II) is determined to apply for
any taxable year, no credit shall be determined under
subsection (a) for such taxable year if such
determination relates to an eligible component described
in subsection (c)(1).''.
(d) Modification of Definition of Battery Module.--Section
45X(c)(5)(B)(iii) is amended--
(1) in subclause (I)(bb), by striking ``and'' at the end,
(2) in subclause (II), by striking the period at the end and
inserting ``, and'', and
(3) by adding at the end the following new subclause:
``(III) which is comprised of all
other essential equipment needed for
battery functionality, such as current
collector assemblies and voltage sense
harnesses, or any other essential energy
collection equipment.''.
(e) Inclusion of Metallurgical Coal as an Applicable Critical
Mineral for Purposes of the Advanced Manufacturing Production Credit.--
(1) In general.--Section 45X(c)(6) is amended--
(A) by redesignating subparagraphs (R) through (Z)
as subparagraphs (S) through (AA), respectively, and
(B) by inserting after subparagraph (Q) the
following new subparagraph:
``(R) Metallurgical coal.--Metallurgical coal which
is suitable for use in the production of steel (within
the
[[Page 139 STAT. 276]]
meaning of the notice published by the Department of
Energy entitled `Critical Material List; Addition of
Metallurgical Coal Used for Steelmaking' (90 Fed. Reg.
22711 (May 29, 2025))), regardless of whether such
production occurs inside or outside of the United
States.''.
(2) Credit amount.--Section 45X(b)(1)(M) is amended by
inserting ``(2.5 percent in the case of metallurgical coal)''
after ``10 percent''.
(f) <<NOTE: Applicability. 26 USC 45X note.>> Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after the date of enactment of this Act.
(2) Modification of provision relating to sale of integrated
components.--The amendment made by subsection (a) shall apply to
components sold during taxable years beginning after December
31, 2026.
SEC. 70515. RESTRICTION ON THE EXTENSION OF ADVANCED ENERGY
PROJECT CREDIT PROGRAM.
(a) In General.--Section 48C(e)(3)(C) is amended by striking ``shall
be increased'' and inserting ``shall not be increased''.
(b) <<NOTE: 26 USC 48C note.>> Effective Date.--The amendment made
by this section shall take effect on the date of enactment of this Act.
Subchapter B--Enhancement of America-first Energy Policy
SEC. 70521. EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION
CREDIT.
(a) Prohibition on Foreign Feedstocks.--
(1) In general.--Section 45Z(f)(1)(A) is amended--
(A) in clause (i)(II)(bb), by striking ``and'' at
the end,
(B) in clause (ii), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following new clause:
``(iii) such fuel is exclusively derived from
a feedstock which was produced or grown in the
United States, Mexico, or Canada.''.
(2) <<NOTE: 26 USC 45Z note.>> Effective date.--The
amendments made by this subsection shall apply to transportation
fuel produced after December 31, 2025.
(b) Prohibition on Negative Emission Rates.--
(1) In general.--Section 45Z(b)(1) is amended--
(A) by striking subparagraph (C) and inserting the
following:
``(C) Rounding of emissions rate.--The Secretary may
round the emissions rates under subparagraph (B) to the
nearest multiple of 5 kilograms of CO2e per mmBTU.'',
and
(B) by adding at the end the following new
subparagraph:
``(E) Prohibition on negative emission rates.--For
purposes of this section, the emissions rate for a
transportation fuel may not be less than zero.''.
(2) <<NOTE: 26 USC 45Z note.>> Effective date.--The
amendments made by this subsection shall apply to emissions
rates published for transportation fuel produced after December
31, 2025.
(c) Determination of Emissions Rate.--
[[Page 139 STAT. 277]]
(1) In general.--Section 45Z(b)(1)(B) is amended by adding
at the end the following new clauses:
``(iv) Exclusion of indirect land use
changes.--Notwithstanding
clauses <<NOTE: Determination.>> (i), (ii), and
(iii), the emissions rate shall be adjusted as
necessary to exclude any emissions attributed to
indirect land use change. Any such adjustment
shall be based on regulations or methodologies
determined by the Secretary.
``(v) Animal manures.--With respect to any
transportation fuel which is derived from animal
manure, the Secretary--
``(I) shall provide a distinct
emissions rate with respect to such fuel
based on the specific animal manure
feedstock, which may include dairy
manure, swine manure, poultry manure, or
any other sources as are determined
appropriate by the Secretary, and
``(II) notwithstanding subparagraph
(E), may provide an emissions rate that
is less than zero.''.
(2) Conforming amendment.--Section 45Z(b)(1)(B)(i) is
amended by striking ``clauses (ii) and (iii)'' and inserting
``clauses (ii), (iii), (iv), and (v)''.
(3) <<NOTE: 26 USC 45Z note.>> Effective date.--The
amendments made by this subsection shall apply to emissions
rates published for transportation fuel produced after December
31, 2025.
(d) Extension of Clean Fuel Production Credit.--Section 45Z(g) is
amended by striking ``December 31, 2027'' and inserting ``December 31,
2029''.
(e) Preventing Double Credit.--Section 45Z(d)(5) is amended--
(1) in subparagraph (A)--
(A) in clause (ii), by striking ``and'' at the end,
(B) in clause (iii), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following new clause:
``(iv) is not produced from a fuel for which a
credit under this section is allowable.'', and
(2) by adding at the end the following new subparagraph:
``(C) Regulations and guidance.--The Secretary shall
issue such regulations or other guidance as the
Secretary determines necessary to carry out the purposes
of subparagraph (A)(iv).''.
(f) Sales to Unrelated Persons.--Section 45Z(f)(3) is amended by
adding at the end the following: ``The Secretary may prescribe
additional related person rules similar to the rule described in the
preceding sentence for entities which are not described in such
sentence, including rules for related persons with respect to which the
taxpayer has reason to believe will sell fuel to an unrelated person in
a manner described in subsection (a)(4).''.
(g) Treatment of Sustainable Aviation Fuel.--
(1) Coordination of credits.--
(A) In general.--Section 6426(k) is amended by
adding at the end the following new paragraph:
``(4) Coordination of credits.--With respect to any gallon
of sustainable aviation fuel in a qualified mixture, this
subsection shall not apply to any such gallon for which a credit
[[Page 139 STAT. 278]]
under section 45Z is allowable (as determined without regard to
subsection (a)(1)(A) of such section).''.
(B) <<NOTE: Applicability. 26 USC 6426 note.>>
Effective date.--The amendment made by this paragraph
shall apply to--
(i) fuel sold or used on or after the date of
the enactment of this Act, and
(ii) fuel sold or used before the date of
enactment of this Act, but only to the extent that
claims for the credit under section 6426(k) of the
Internal Revenue Code of 1986 with respect to such
sale or use have not been paid or allowed as of
such date.
(2) Elimination of special rate.--
(A) In general.--Paragraph (3) of section 45Z(a) is
amended to read as follows:
``(3) Definition of sustainable aviation fuel.--For purposes
of this section, the term `sustainable aviation fuel' means
liquid fuel, the portion of which is not kerosene, which is sold
for use in an aircraft and which--
``(A) meets the requirements of--
``(i) ASTM International Standard D7566, or
``(ii) the Fischer Tropsch provisions of ASTM
International Standard D1655, Annex A1, and
``(B) is not derived from palm fatty acid
distillates or petroleum.''.
(B) Conforming amendment.--Section 45Z(c)(1) is
amended by striking ``, the $1.00 amount in subsection
(a)(2)(B), the 35 cent amount in subsection
(a)(3)(A)(i), and the $1.75 amount in subsection
(a)(3)(A)(ii)'' and inserting ``and the $1.00 amount in
subsection (a)(2)(B)''.
(C) <<NOTE: 26 USC 45Z note.>> Effective date.--The
amendments made by this paragraph shall apply to fuel
produced after December 31, 2025.
(h) Sustainable Aviation Fuel Credit.--Section 6426(k), as amended
by the preceding provisions of this Act, is amended by adding at the end
the following new paragraph:
``(5) Termination.--This subsection shall not apply to any
sale or use for any period after September 30, 2025.''.
(i) Registration of Producers of Fuel Eligible for Clean Fuel
Production Credit.--
(1) In general.--Section 13704(b)(5) of Public Law 117-169
is <<NOTE: 26 USC 4101.>> amended by striking ``after `section
6426(k)(3)),' '' and inserting ``after `section 40B),' ''.
(2) Effective date. <<NOTE: 26 USC 4101 note.>> --The
amendment made by this subsection shall apply to transportation
fuel produced after December 31, 2024.
(j) Extension and Modification of Small Agri-biodiesel Producer
Credit.--
(1) In general.--Section 40A is amended--
(A) in subsection (b)(4)--
(i) in subparagraph (A), by striking ``10
cents'' and inserting ``20 cents'',
(ii) in subparagraph (B), by inserting ``in a
manner which complies with the requirements under
section 45Z(f)(1)(A)(iii)'' after ``produced by an
eligible small agri-biodiesel producer'', and
(iii) by adding at the end the following new
subparagraph:
[[Page 139 STAT. 279]]
``(D) Coordination with clean fuel production
credit.--The credit determined under this paragraph with
respect to any gallon of fuel shall be in addition to
any credit determined under section 45Z with respect to
such gallon of fuel.'', and
(B) in subsection (g), by inserting ``(or, in the
case of the small agri-biodiesel producer credit, any
sale or use after December 31, 2026)'' after ``December
31, 2024''.
(2) Transfer of credit.--Section 6418(f)(1)(A) is amended by
adding at the end the following new clause:
``(xii) So much of the biodiesel fuels credit
determined under section 40A which consists of the
small agri-biodiesel producer credit determined
under subsection (b)(4) of such section.''.
(3) <<NOTE: 26 USC 40A note.>> Effective date.--The
amendments made by this subsection shall apply to fuel sold or
used after June 30, 2025.
(k) Restrictions Relating to Prohibited Foreign Entities.--
(1) In general.--Section 45Z(f) is amended by adding at the
end the following new paragraph:
``(8) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit shall be determined
under subsection (a) for any taxable year beginning
after the date of enactment of this paragraph if the
taxpayer is a specified foreign entity (as defined in
section 7701(a)(51)(B)).
``(B) <<NOTE: Effective date. Time period.>> Other
prohibited foreign entities.--No credit shall be
determined under subsection (a) for any taxable year
beginning after the date which is 2 years after the date
of enactment of this paragraph if the taxpayer is a
foreign-influenced entity (as defined in section
7701(a)(51)(D), without regard to clause (i)(II)
thereof).''.
(2) <<NOTE: 26 USC 45Z note.>> Effective date.--The
amendment made by this subsection shall apply to taxable years
beginning after the date of enactment of this Act.
SEC. 70522. RESTRICTIONS ON CARBON OXIDE SEQUESTRATION CREDIT.
(a) Restrictions Relating to Prohibited Foreign Entities.--Section
45Q(f) is amended by adding at the end the following new paragraph:
``(10) Restrictions relating to prohibited foreign
entities.--No credit shall be determined under subsection (a)
for any taxable year beginning after the date of enactment of
this paragraph if the taxpayer is--
``(A) a specified foreign entity (as defined in
section 7701(a)(51)(B)), or
``(B) a foreign-influenced entity (as defined in
section 7701(a)(51)(D), determined without regard to
clause (i)(II) thereof).''.
(b) Parity for Different Uses and Utilizations of Qualified Carbon
Oxide.--Section 45Q is amended--
(1) in subsection (a)--
(A) in paragraph (2)(B)(ii), by adding ``and'' at
the end,
[[Page 139 STAT. 280]]
(B) in paragraph (3), by striking subparagraph (B)
and inserting the following:
``(B)(i) disposed of by the taxpayer in secure
geological storage and not used by the taxpayer as
described in clause (ii) or (iii),
``(ii) used by the taxpayer as a tertiary injectant
in a qualified enhanced oil or natural gas recovery
project and disposed of by the taxpayer in secure
geological storage, or
``(iii) utilized by the taxpayer in a manner
described in subsection (f)(5).'', and
(C) by striking paragraph (4),
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking subparagraph (A) and inserting
the following:
``(A) In general.--Except as provided in
subparagraph (B) or (C), the applicable dollar amount
shall be an amount equal to--
``(i) <<NOTE: Time period.>> for any taxable
year beginning in a calendar year after 2024 and
before 2027, $17, and
``(ii) for any taxable year beginning in a
calendar year after 2026, an amount equal to the
product of $17 and the inflation adjustment factor
for such calendar year determined under section
43(b)(3)(B) for such calendar year, determined by
substituting `2025' for `1990'.'', and
(ii) in subparagraph (B), by striking ``shall
be applied'' and all that follows through the
period and inserting ``shall be applied by
substituting `$36' for `$17' each place it
appears.'',
(B) in paragraph (2)(B), by striking ``paragraphs
(3)(A) and (4)(A)'' and inserting ``paragraph (3)(A)'',
and
(C) in paragraph (3), by striking ``the dollar
amounts applicable under paragraph (3) or (4)'' and
inserting ``the dollar amount applicable under paragraph
(3)'',
(3) in subsection (f)--
(A) in paragraph (5)(B)(i), by striking
``(4)(B)(ii)'' and inserting ``(3)(B)(iii)'', and
(B) in paragraph (9), by striking ``paragraphs (3)
and (4) of subsection (a)'' and inserting ``subsection
(a)(3)'', and
(4) in subsection (h)(3)(A)(ii), by striking ``paragraph
(3)(A) or (4)(A) of subsection (a)'' and inserting ``subsection
(a)(3)(A)''.
(c) Conforming Amendment.--Section 6417(d)(3)(C)(i)(II)(bb) is
amended by striking ``paragraph (3)(A) or (4)(A) of section 45Q(a)'' and
inserting ``section 45Q(a)(3)(A)''.
(d) <<NOTE: Applicability. 26 USC 45Q note.>> Effective Dates.--
(1) Restrictions relating to prohibited foreign entities.--
The amendment made by subsection (a) shall apply to taxable
years beginning after the date of enactment of this Act.
(2) Parity for different uses and utilizations of qualified
carbon oxide.--The amendments made subsections (b) and (c) shall
apply to facilities or equipment placed in service after the
date of enactment of this Act.
[[Page 139 STAT. 281]]
SEC. 70523. INTANGIBLE DRILLING AND DEVELOPMENT COSTS TAKEN INTO
ACCOUNT FOR PURPOSES OF COMPUTING
ADJUSTED FINANCIAL STATEMENT INCOME.
(a) In General.--Section 56A(c)(13) is amended--
(1) by striking subparagraph (A) and inserting the
following:
``(A) reduced by--
``(i) depreciation deductions allowed under
section 167 with respect to property to which
section 168 applies to the extent of the amount
allowed as deductions in computing taxable income
for the year, and
``(ii) any deduction allowed for expenses
under section 263(c) (including any deduction for
such expenses under section 59(e) or 291(b)(2))
with respect to property described therein to the
extent of the amount allowed as deductions in
computing taxable income for the year, and'', and
(2) by striking subparagraph (B)(i) and inserting the
following:
``(i) to disregard any amount of--
``(I) depreciation expense that is
taken into account on the taxpayer's
applicable financial statement with
respect to such property, and
``(II) depletion expense that is
taken into account on the taxpayer's
applicable financial statement with
respect to the intangible drilling and
development costs of such property,
and''.
(b) <<NOTE: 26 USC 56A note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70524. INCOME FROM HYDROGEN STORAGE, CARBON CAPTURE, ADVANCED
NUCLEAR, HYDROPOWER, AND GEOTHERMAL
ENERGY ADDED TO QUALIFYING INCOME OF
CERTAIN PUBLICLY TRADED PARTNERSHIPS.
(a) In General.--Section 7704(d)(1)(E) is amended--
(1) by striking ``income and gains derived from the
exploration'' and inserting the following: ``income and gains
derived from--
``(i) the exploration''.
(2) by inserting ``or'' before ``industrial source'', and
(3) by striking ``or the transportation or storage'' and all
that follows and inserting the following:
``(ii) the transportation or storage of--
``(I) any fuel described in
subsection (b), (c), (d), (e), or (k) of
section 6426, or any alcohol fuel
defined in section 6426(b)(4)(A) or any
biodiesel fuel as defined in section
40A(d)(1) or sustainable aviation fuel
as defined in section 40B(d)(1), or
``(II) liquified hydrogen or
compressed hydrogen,
``(iii) in the case of a qualified facility
(as defined in section 45Q(d), without regard to
any date by which construction of the facility or
equipment is required to begin) not less than 50
percent of the total carbon oxide production of
which is qualified carbon oxide (as defined in
section 45Q(c))--
[[Page 139 STAT. 282]]
``(I) the generation, availability
for such generation, or storage of
electric power at such facility, or
``(II) the capture of carbon dioxide
by such facility,
``(iv) the production of electricity from any
advanced nuclear facility (as defined in section
45J(d)(2)),
``(v) the production of electricity or thermal
energy exclusively using a qualified energy
resource described in subparagraph (D) or (H) of
section 45(c)(1), or
``(vi) the operation of energy property
described in clause (iii) or (vii) of section
48(a)(3)(A) (determined without regard to any
requirement under such section with respect to the
date on which construction of property begins).''.
(b) <<NOTE: 26 USC 7704 note.>> Effective Date.--The amendments
made by this section shall apply to taxable years beginning after
December 31, 2025.
SEC. 70525. ALLOW FOR PAYMENTS TO CERTAIN INDIVIDUALS WHO DYE
FUEL.
(a) In General.--Subchapter B of chapter 65, as amended by the
preceding provisions of this Act, is amended by adding at the end the
following new section:
``SEC. 6435. <<NOTE: 26 USC 6435.>> DYED FUEL.
``(a) In General.--If a person establishes to the satisfaction of
the Secretary that such person meets the requirements of subsection (b)
with respect to diesel fuel or kerosene, then the Secretary shall pay to
such person an amount (without interest) equal to the tax described in
subsection (b)(2)(A) with respect to such diesel fuel or kerosene.
``(b) Requirements.--
``(1) In general.--A person meets the requirements of this
subsection with respect to diesel fuel or kerosene if such
person removes from a terminal eligible indelibly dyed diesel
fuel or kerosene.
``(2) Eligible indelibly dyed diesel fuel or kerosene
defined.--The term `eligible indelibly dyed diesel fuel or
kerosene' means diesel fuel or kerosene--
``(A) with respect to which a tax under section 4081
was previously paid (and not credited or refunded), and
``(B) which is exempt from taxation under section
4082(a).
``(c) Cross Reference.--For civil penalty for excessive claims under
this section, see section 6675.''.
(b) Conforming Amendments.--
(1) Section 6206 is amended--
(A) by striking ``or 6427'' each place it appears
and inserting ``6427, or 6435'', and
(B) by striking ``6420 and 6421'' and inserting
``6420, 6421, and 6435''.
(2) Section 6430 is amended--
(A) by striking ``or'' at the end of paragraph (2),
by striking the period at the end of paragraph (3) and
inserting ``, or'', and by adding at the end the
following new paragraph:
[[Page 139 STAT. 283]]
``(4) which are removed as eligible indelibly dyed diesel
fuel or kerosene under section 6435.''.
(3) Section 6675 is amended--
(A) in subsection (a), by striking ``or 6427
(relating to fuels not used for taxable purposes)'' and
inserting ``6427 (relating to fuels not used for taxable
purposes), or 6435 (relating to eligible indelibly dyed
fuel)'', and
(B) in subsection (b)(1), by striking ``6421, or
6427,'' and inserting ``6421, 6427, or 6435,''.
(4) The table of sections for subchapter B of chapter 65, as
amended by the preceding provisions of this Act, <<NOTE: 26
USC prec. 6411.>> is amended by adding at the end the following
new item:
``Sec. 6435. Dyed fuel.''.
(c) <<NOTE: 26 USC 6206 note.>> Effective Date.--The amendments
made by this section shall apply to eligible indelibly dyed diesel fuel
or kerosene removed on or after the date that is 180 days after the date
of the enactment of this section.
Subchapter C--Other Reforms
SEC. 70531. MODIFICATIONS TO DE MINIMIS ENTRY PRIVILEGE FOR
COMMERCIAL SHIPMENTS.
(a) Civil Penalty.--
(1) Additional penalty imposed.--Section 321 of the Tariff
Act of 1930 (19 U.S.C. 1321) is amended by adding at the end the
following new subsection:
``(c) Any person who enters, introduces, facilitates, or attempts to
introduce an article into the United States using the privilege of this
section, the importation of which violates any other provision of United
States customs law, shall be assessed, in addition to any other penalty
permitted by law, a civil penalty of up to $5,000 for the first
violation and up to $10,000 for each subsequent violation.''.
(2) <<NOTE: Time period. 19 USC 1321 note.>> Effective
date.--The amendment made by paragraph (1) shall take effect 30
days after the date of the enactment of this Act.
(b) Repeal of Commercial Shipment Exception.--
(1) Repeal.--Section 321(a)(2) of such Act (19 U.S.C.
1321(a)(2)) is amended by striking ``of this Act, or'' and all
that follows through ``subdivision (2); and'' and inserting ``of
this Act; and''.
(2) Conforming repeal.--Subsection (c) of such section 321,
as added by subsection (a) of this section, is repealed.
(3) <<NOTE: 19 USC 1321 note.>> Effective date.--The
amendments made by this subsection shall take effect on July 1,
2027.
CHAPTER 6--ENHANCING DEDUCTION AND INCOME TAX CREDIT GUARDRAILS, AND
OTHER REFORMS
SEC. 70601. MODIFICATION AND EXTENSION OF LIMITATION ON EXCESS
BUSINESS LOSSES OF NONCORPORATE
TAXPAYERS.
(a) Rule Made Permanent.--Section 461(l)(1) is amended by striking
``and before January 1, 2029,'' each place it appears.
(b) Adjustment of Amounts for Calculation of Excess Business Loss.--
Section 461(l)(3)(C) is amended--
[[Page 139 STAT. 284]]
(1) in the matter preceding clause (i), by striking
``December 31, 2018'' and inserting ``December 31, 2025'', and
(2) in clause (ii), by striking ``2017'' and inserting
``2024''.
(c) <<NOTE: Applicability. 26 USC 461 note.>> Effective Dates.--
(1) Rule made permanent.--The amendments made by subsection
(a) shall apply to taxable years beginning after December 31,
2026.
(2) Adjustment of amounts for calculation of excess business
loss.--The amendments made by subsection (b) shall apply to
taxable years beginning after December 31, 2025.
SEC. 70602. TREATMENT OF PAYMENTS FROM PARTNERSHIPS TO PARTNERS
FOR PROPERTY OR SERVICES.
(a) In General.--Section 707(a)(2) is amended by striking ``Under
regulations prescribed'' and inserting ``Except as provided''.
(b) <<NOTE: 26 USC 707 note.>> Effective Date.--The amendment made
by this section shall apply to services performed, and property
transferred, after the date of the enactment of this Act.
(c) <<NOTE: 26 USC 707 note.>> Rule of Construction.--Nothing in
this section, or the amendments made by this section, shall be construed
to create any inference with respect to the proper treatment under
section 707(a) of the Internal Revenue Code of 1986 with respect to
payments from a partnership to a partner for services performed, or
property transferred, on or before the date of the enactment of this
Act.
SEC. 70603. EXCESSIVE EMPLOYEE REMUNERATION FROM CONTROLLED GROUP
MEMBERS AND ALLOCATION OF DEDUCTION.
(a) Application of Aggregation Rules.--Section 162(m) is amended by
adding at the end the following new paragraph:
``(7) <<NOTE: Definitions.>> Remuneration from controlled
group members.--
``(A) In general.--In the case of any publicly held
corporation which is a member of a controlled group--
``(i) paragraph (1) shall be applied by
substituting `specified covered employee' for
`covered employee', and
``(ii) if any person which is a member of such
controlled group (other than such publicly held
corporation) provides applicable employee
remuneration to an individual who is a specified
covered employee of such controlled group and the
aggregate amount described in subparagraph (B)(ii)
with respect to such specified covered employee
exceeds $1,000,000--
``(I) paragraph (1) shall apply to
such person with respect to such
remuneration, and
``(II) paragraph (1) shall apply to
such publicly held corporation and to
each such related person by substituting
`the allocable limitation amount' for
`$1,000,000'.
``(B) Allocable limitation amount.--For purposes of
this paragraph, the term `allocable limitation amount'
means, with respect to any member of the controlled
group referred to in subparagraph (A) with respect to
any specified covered employee of such controlled group,
the amount which bears the same ratio to $1,000,000 as--
``(i) the amount of applicable employee
remuneration provided by such member with respect
to such specified covered employee, bears to
[[Page 139 STAT. 285]]
``(ii) the aggregate amount of applicable
employee remuneration provided by all such members
with respect to such specified covered employee.
``(C) Specified covered employee.--For purposes of
this paragraph, the term `specified covered employee'
means, with respect to any controlled group--
``(i) any employee described in subparagraph
(A), (B), or (D) of paragraph (3), with respect to
the publicly held corporation which is a member of
such controlled group, and
``(ii) any employee who would be described in
subparagraph (C) of paragraph (3) if such
subparagraph were applied by taking into account
the employees of all members of the controlled
group.
``(D) Controlled group.--For purposes of this
paragraph, the term `controlled group' means any group
treated as a single employer under subsection (b), (c),
(m), or (o) of section 414.''.
(b) <<NOTE: 26 USC 162 note.>> Effective Date.--The amendment made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70604. EXCISE TAX ON CERTAIN REMITTANCE TRANSFERS.
(a) In General.--Chapter 36 is amended by inserting after subchapter
B the following new subchapter:
``Subchapter C--Remittance Transfers <<NOTE: 26 USC prec. 4471.>>
``Sec. 4475. Imposition of tax.
``SEC. 4475. <<NOTE: 26 USC 4475.>> IMPOSITION OF TAX.
``(a) In General.--There is hereby imposed on any remittance
transfer a tax equal to 1 percent of the amount of such transfer.
``(b) Payment of Tax.--
``(1) In general.--The tax imposed by this section with
respect to any remittance transfer shall be paid by the sender
with respect to such transfer.
``(2) Collection of tax.--The remittance transfer provider
with respect to any remittance transfer shall collect the amount
of the tax imposed under subsection (a) with respect to such
transfer from the sender and remit such tax quarterly to the
Secretary at such time and in such manner as provided by the
Secretary,
``(3) Secondary liability.--Where any tax imposed by
subsection (a) is not paid at the time the transfer is made,
then to the extent that such tax is not collected, such tax
shall be paid by the remittance transfer provider.
``(c) Tax Limited to Cash and Similar Instruments.--The tax imposed
under subsection (a) shall apply only to any remittance transfer for
which the sender provides cash, a money order, a cashier's check, or any
other similar physical instrument (as determined by the Secretary) to
the remittance transfer provider.
``(d) Nonapplication to Certain Noncash Remittance Transfers.--
Subsection (a) shall not apply to any remittance transfer for which the
funds being transferred are--
``(1) withdrawn from an account held in or by a financial
institution--
[[Page 139 STAT. 286]]
``(A) which is described in subparagraphs (A)
through (H) of section 5312(a)(2) of title 31, United
States Code, and
``(B) that is subject to the requirements under
subchapter II of chapter 53 of such title, or
``(2) funded with a debit card or a credit card which is
issued in the United States.
``(e) Definitions.--For purposes of this section--
``(1) In general.--The terms `remittance transfer',
`remittance transfer provider', and `sender' shall each have the
respective meanings given such terms by section 919(g) of the
Electronic Fund Transfer Act (15 U.S.C. 1693o-1(g)).
``(2) Credit card.--The term `credit card' has the same
meaning given such term under section 920(c)(3) of the
Electronic Fund Transfer Act (15 U.S.C. 1693o-2(c)(3)).
``(3) Debit card.--The term `debit card' has the same
meaning given such term under section 920(c)(2) of the
Electronic Fund Transfer Act (15 U.S.C. 1693o-2(c)(2)), without
regard to subparagraph (B) of such section.
``(f) Application of Anti-conduit Rules.--For purposes of section
7701(l), with respect to any multiple-party arrangements involving the
sender, a remittance transfer shall be treated as a financing
transaction.''.
(b) Conforming Amendment.--The table of subchapters for chapter
36 <<NOTE: 26 USC prec. 4461.>> is amended by inserting after the item
relating to subchapter B the following new item:
``subchapter c--remittance transfers''.
(c) <<NOTE: 26 USC 4475.>> Effective Date.--The amendments made by
this section shall apply to transfers made after December 31, 2025.
SEC. 70605. <<NOTE: Definitions. 26 USC 3134 note.>> ENFORCEMENT
PROVISIONS WITH RESPECT TO COVID-
RELATED EMPLOYEE RETENTION CREDITS.
(a) Assessable Penalty for Failure to Comply With Due Diligence
Requirements.--
(1) In general.--Any COVID-ERTC promoter which provides aid,
assistance, or advice with respect to any COVID-ERTC document
and which fails to comply with due diligence requirements
imposed by the Secretary with respect to determining eligibility
for, or the amount of, any credit or advance payment of a credit
under section 3134 of the Internal Revenue Code of 1986, shall
pay a penalty of $1,000 for each such failure.
(2) Due diligence requirements.--The due diligence
requirements referred to in paragraph (1) shall be similar to
the due diligence requirements imposed under section 6695(g) of
the Internal Revenue Code of 1986.
(3) Restriction to documents used in connection with returns
or claims for refund.--Paragraph (1) shall not apply with
respect to any COVID-ERTC document unless such document
constitutes, or relates to, a return or claim for refund.
(4) Treatment as assessable penalty, etc.--For purposes of
the Internal Revenue Code of 1986, the penalty imposed under
paragraph (1) shall be treated as a penalty which is imposed
under section 6695(g) of such Code and assessed under section
6201 of such Code.
[[Page 139 STAT. 287]]
(5) <<NOTE: Definition.>> Secretary.--For purposes of this
subsection, the term ``Secretary'' means the Secretary of the
Treasury or the Secretary's delegate.
(b) COVID-ERTC Promoter.--For purposes of this section--
(1) <<NOTE: Definition.>> In general.--The term ``COVID-
ERTC promoter'' means, with respect to any COVID-ERTC document,
any person which provides aid, assistance, or advice with
respect to such document if--
(A) such person charges or receives a fee for such
aid, assistance, or advice which is based on the amount
of the refund or credit with respect to such document
and, with respect to such person's taxable year in which
such person provided such assistance or the preceding
taxable year, the aggregate of the gross receipts of
such person for aid, assistance, and advice with respect
to all COVID-ERTC documents exceeds 20 percent of the
gross receipts of such person for such taxable year, or
(B) with respect to such person's taxable year in
which such person provided such assistance or the
preceding taxable year--
(i) the aggregate of the gross receipts of
such person for aid, assistance, and advice with
respect to all COVID-ERTC documents exceeds 50
percent of the gross receipts of such person for
such taxable year, or
(ii) both--
(I) such aggregate gross receipts
exceed 20 percent of the gross receipts
of such person for such taxable year,
and
(II) the aggregate of the gross
receipts of such person for aid,
assistance, and advice with respect to
all COVID-ERTC documents (determined
after application of paragraph (3))
exceeds $500,000.
(2) Exception for certified professional employer
organizations.--The term ``COVID-ERTC promoter'' shall not
include a certified professional employer organization (as
defined in section 7705 of the Internal Revenue Code of 1986).
(3) Aggregation rule.--For purposes of paragraph (1), all
persons treated as a single employer under subsection (a) or (b)
of section 52 of the Internal Revenue Code of 1986, or
subsection (m) or (o) of section 414 of such Code, shall be
treated as 1 person.
(4) Short taxable years.--In the case of any taxable year of
less than 12 months, a person shall be treated as a COVID-ERTC
promoter if such person is described in paragraph (1) either
with respect to such taxable year or by treating any reference
to such taxable year as a reference to the calendar year in
which such taxable year begins.
(c) <<NOTE: Definition.>> COVID-ERTC Document.--For purposes of
this section, the term ``COVID-ERTC document'' means any return,
affidavit, claim, or other document related to any credit or advance
payment of a credit under section 3134 of the Internal Revenue Code of
1986, including any document related to eligibility for, or the
calculation or determination of any amount directly related to, any such
credit or advance payment.
(d) <<NOTE: Deadline.>> Limitation on Credits and Refunds.--
Notwithstanding section 6511 of the Internal Revenue Code of 1986, no
credit under
[[Page 139 STAT. 288]]
section 3134 of the Internal Revenue Code of 1986 shall be allowed, and
no refund with respect to any such credit shall be made, after the date
of the enactment of this Act, unless a claim for such credit or refund
was filed by the taxpayer on or before January 31, 2024.
(e) Extension of Limitation on Assessment.--Section 3134(l) is
amended to read as follows:
``(l) Extension of Limitation on Assessment.--
``(1) <<NOTE: Time period.>> In general.--Notwithstanding
section 6501, the limitation on the time period for the
assessment of any amount attributable to a credit claimed under
this section shall not expire before the date that is 6 years
after the latest of--
``(A) the date on which the original return which
includes the calendar quarter with respect to which such
credit is determined is filed,
``(B) the date on which such return is treated as
filed under section 6501(b)(2), or
``(C) the date on which the claim for credit or
refund with respect to such credit is made.
``(2) <<NOTE: Definition.>> Deduction for wages taken into
account in determining improperly claimed credit.--
``(A) In general.--Notwithstanding section 6511, in
the case of an assessment attributable to a credit
claimed under this section, the limitation on the time
period for credit or refund of any amount attributable
to a deduction for improperly claimed ERTC wages shall
not expire before the time period for such assessment
expires under paragraph (1).
``(B) Improperly claimed ertc wages.--For purposes
of this paragraph, the term `improperly claimed ERTC
wages' means, with respect to an assessment attributable
to a credit claimed under this section, the wages with
respect to which a deduction would not have been allowed
if the portion of the credit to which such assessment
relates had been properly claimed.''.
(f) Amendment to Penalty for Erroneous Claim for Refund or Credit.--
Section 6676(a) is amended by striking ``income tax'' and inserting
``income or employment tax''.
(g) <<NOTE: Applicability.>> Effective Dates.--
(1) In general.--The provisions of this section shall apply
to aid, assistance, and advice provided after the date of the
enactment of this Act.
(2) Limitation on credits and refunds.--Subsection (d) shall
apply to credits and refunds allowed or made after the date of
the enactment of this Act.
(3) Extension of limitation on assessment.--The amendment
made by subsection (e) shall apply to assessments made after the
date of the enactment of this Act.
(4) Amendment to penalty for erroneous claim for refund or
credit.--The amendment made by subsection (f) shall apply to
claims for credit or refund after the date of the enactment of
this Act.
(h) <<NOTE: Guidance.>> Regulations.--The Secretary (as defined in
subsection (a)(5)) shall issue such regulations or other guidance as may
be necessary or appropriate to carry out the purposes of this section
(and the amendments made by this section).
[[Page 139 STAT. 289]]
SEC. 70606. SOCIAL SECURITY NUMBER REQUIREMENT FOR AMERICAN
OPPORTUNITY AND LIFETIME LEARNING
CREDITS.
(a) Social Security Number of Taxpayer Required.--Section 25A(g)(1)
is amended to read as follows:
``(1) Identification requirement.--
``(A) Social security number requirement.--No credit
shall be allowed under subsection (a) to an individual
unless the individual includes on the return of tax for
the taxable year--
``(i) such individual's social security
number, and
``(ii) in the case of a credit with respect to
the qualified tuition and related expenses of an
individual other than the taxpayer or the
taxpayer's spouse, the name and social security
number of such individual.
``(B) Institution.--No American Opportunity Tax
Credit shall be allowed under this section unless the
taxpayer includes the employer identification number of
any institution to which the taxpayer paid qualified
tuition and related expenses taken into account under
this section on the return of tax for the taxable year.
``(C) Social security number defined.--For purposes
of this paragraph, the term `social security number'
shall have the meaning given such term in section
24(h)(7).''.
(b) Omission Treated as Mathematical or Clerical Error.--Section
6213(g)(2)(J) is amended by striking ``TIN'' and inserting ``social
security number or employer identification number''.
(c) <<NOTE: 26 USC 25A note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
SEC. 70607. <<NOTE: Appropriation authorization. Expiration
date. Reports.>> TASK FORCE ON THE
REPLACEMENT OF DIRECT FILE.
Out of any money in the Treasury not otherwise appropriated, there
is hereby appropriated for the fiscal year ending September 30, 2026,
$15,000,000, to remain available until September 30, 2026, for necessary
expenses of the Department of the Treasury to deliver to Congress,
within 90 days following the date of the enactment of this Act, a report
on--
(1) the cost of enhancing and establishing public-private
partnerships which provide for free tax filing for up to 70
percent of all taxpayers calculated by adjusted gross income,
and to replace any direct e-file programs run by the Internal
Revenue Service;
(2) taxpayer opinions and preferences regarding a taxpayer-
funded, government-run service or a free service provided by the
private sector;
(3) assessment of the feasibility of a new approach, how to
make the options consistent and simple for taxpayers across all
participating providers, and how to provide features to address
taxpayer needs; and
(4) the cost (including options for differential coverage
based on taxpayer adjusted gross income and return complexity)
of developing and running a free direct e-file tax return
system, including costs to build and administer each release.
[[Page 139 STAT. 290]]
Subtitle B--Health
CHAPTER 1--MEDICAID
Subchapter A--Reducing Fraud and Improving Enrollment Processes
SEC. 71101. <<NOTE: Time periods.>> MORATORIUM ON IMPLEMENTATION
OF RULE RELATING TO ELIGIBILITY AND
ENROLLMENT IN MEDICARE SAVINGS
PROGRAMS.
(a) In General.--The Secretary of Health and Human Services shall
not, during the period beginning on the date of the enactment of this
section and ending September 30, 2034, implement, administer, or enforce
the amendments made by the provisions of the final rule published by the
Centers for Medicare & Medicaid Services on September 21, 2023, and
titled ``Streamlining Medicaid; Medicare Savings Program Eligibility
Determination and Enrollment'' (88 Fed. Reg. 65230) to the following
sections of title 42, Code of Federal Regulations:
(1) Section 406.21(c).
(2) Section 435.4.
(3) Section 435.601.
(4) Section 435.911.
(5) Section 435.952.
(b) Implementation Funding.--For the purposes of carrying out the
provisions of this section and section 71102, there are appropriated,
out of any monies in the Treasury not otherwise appropriated, to the
Administrator of the Centers for Medicare & Medicaid Services,
$1,000,000 for fiscal year 2026, to remain available until expended.
SEC. 71102. <<NOTE: Time period.>> MORATORIUM ON IMPLEMENTATION
OF RULE RELATING TO ELIGIBILITY AND
ENROLLMENT FOR MEDICAID, CHIP, AND THE
BASIC HEALTH PROGRAM.
The Secretary of Health and Human Services shall not, during the
period beginning on the date of the enactment of this section and ending
September 30, 2034, implement, administer, or enforce the amendments
made by the provisions of the final rule published by the Centers for
Medicare & Medicaid Services on April 2, 2024, and titled ``Medicaid
Program; Streamlining the Medicaid, Children's Health Insurance Program,
and Basic Health Program Application, Eligibility Determination,
Enrollment, and Renewal Processes'' (89 Fed. Reg. 22780) to the
following sections of title 42, Code of Federal Regulations:
(1) Part 431.--
(A) Section 431.213(d).
(2) Part 435.--
(A) Section 435.222.
(B) Section 435.407.
(C) Section 435.907.
(D) Section 435.911(c).
(E) Section 435.912.
(F) Section 435.916.
(G) Section 435.919.
(H) Section 435.1200(b)(3)(i)-(v).
(I) Section 435.1200(e )(1)(ii).
(J) Section 435.1200(h)(1).
[[Page 139 STAT. 291]]
(3) Part 447.--Section 447.56(a)(1)(v).
(4) Part 457.--
(A) Section 457.344.
(B) Section 457.960.
(C) Section 457.1140(d)(4).
(D) Section 457.1170.
(E) Section 457.1180.
SEC. 71103. REDUCING DUPLICATE ENROLLMENT UNDER THE MEDICAID AND
CHIP PROGRAMS.
(a) Medicaid.--
(1) In general.--Section 1902 of the Social Security Act (42
U.S.C. 1396a) is amended--
(A) in subsection (a)--
(i) in paragraph (86), by striking ``and'' at
the end;
(ii) in paragraph (87), by striking the period
and inserting ``; and''; and
(iii) by inserting after paragraph (87) the
following new paragraph:
``(88) <<NOTE: Effective dates.>> provide--
``(A) beginning not later than January 1, 2027, in
the case of 1 of the 50 States and the District of
Columbia, for a process to regularly obtain address
information for individuals enrolled under such plan (or
a waiver of such plan) in accordance with subsection
(vv); and
``(B) beginning not later than October 1, 2029--
``(i) for the State to submit to the system
established by the Secretary under subsection
(uu), with respect to an individual enrolled or
seeking to enroll under such plan, not less
frequently than once each month and during each
determination or redetermination of the
eligibility of such individual for medical
assistance under such plan (or waiver of such
plan)--
``(I) the social security number of
such individual, if such individual has
a social security number and is required
to provide such number to enroll under
such plan (or waiver); and
``(II) such other information with
respect to such individual as determined
necessary by the Secretary for purposes
of preventing individuals from
simultaneously being enrolled under
State plans (or waivers of such plans)
of multiple States;
``(ii) for the use of such system to prevent
such simultaneous enrollment; and
``(iii) <<NOTE: Determination.>> in the case
that such system indicates that an individual
enrolled or seeking to enroll under such plan (or
waiver of such plan) is enrolled under a State
plan (or waiver of such a plan) of another State,
for the taking of appropriate action (as
determined by the Secretary) to identify whether
such an individual resides in the State and
disenroll an individual from the State plan of
such State if such individual does not reside in
such State (unless such individual meets such an
exception as the Secretary may specify).''; and
(B) by adding at the end the following new
subsections:
[[Page 139 STAT. 292]]
``(uu) Prevention of Enrollment Under Multiple State Plans.--
``(1) <<NOTE: Deadline.>> In general.--Not later than
October 1, 2029, the Secretary shall establish a system to be
utilized by the Secretary and States to prevent an individual
from being simultaneously enrolled under the State plans (or
waivers of such plans) of multiple States. Such system shall--
``(A) provide for the receipt of information
submitted by a State under subsection (a)(88)(B)(i); and
``(B) <<NOTE: Time period.>> not less than once
each month, transmit information to a State (or allow
the Secretary to transmit information to a State)
regarding whether an individual enrolled or seeking to
enroll under the State plan of such State (or waiver of
such plan) is enrolled under the State plan (or waiver
of such plan) of another State.
``(2) Standards.--The Secretary shall establish such
standards as determined necessary by the Secretary to limit and
protect information submitted under such system and ensure the
privacy of such information, consistent with subsection (a)(7).
``(3) <<NOTE: Time periods.>> Implementation funding.--
There are appropriated to the Administrator of the Centers for
Medicare & Medicaid Services, out of amounts in the Treasury not
otherwise appropriated, in addition to amounts otherwise
available--
``(A) for fiscal year 2026, $10,000,000 for purposes
of establishing the system and standards required under
this subsection, to remain available until expended; and
``(B) for fiscal year 2029, $20,000,000 for purposes
of maintaining such system, to remain available until
expended.
``(vv) Process to Obtain Enrollee Address Information.--
``(1) In general.--For purposes of subsection (a)(88)(A), a
process to regularly obtain address information for individuals
enrolled under a State plan (or a waiver of such plan) shall
obtain address information from reliable data sources described
in paragraph (2) and take such actions as the Secretary shall
specify with respect to any changes to such address based on
such information.
``(2) Reliable data sources described.--For purposes of
paragraph (1), the reliable data sources described in this
paragraph are the following:
``(A) Mail returned to the State by the United
States Postal Service with a forwarding address.
``(B) The National Change of Address Database
maintained by the United States Postal Service.
``(C) A managed care entity (as defined in section
1932(a)(1)(B)) or prepaid inpatient health plan or
prepaid ambulatory health plan (as such terms are
defined in section 1903(m)(9)(D)) that has a contract
under the State plan if the address information is
provided to such entity or plan directly from, or
verified by such entity or plan directly with, such
individual.
``(D) Other data sources as identified by the State
and approved by the Secretary.''.
(2) Conforming amendments.--
(A) PARIS.--Section 1903(r)(3) of the Social
Security Act (42 U.S.C. 1396b(r)(3)) is amended--
[[Page 139 STAT. 293]]
(i) by striking ``In order'' and inserting
``(A) In order'';
(ii) by striking ``through the Public'' and
inserting ``through--
``(i) the Public'';
(iii) by striking the period at the end and
inserting ``; and
``(ii) beginning October 1, 2029, the system
established by the Secretary under section 1902(uu).'';
and
(iv) by adding at the end the following new
subparagraph:
``(B) <<NOTE: Effective date. Determination.>> Beginning
October 1, 2029, the Secretary may determine that a State is not
required to have in operation an eligibility determination
system which provides for data matching (for purposes of address
verification under section 1902(vv)) through the system
described in subparagraph (A)(i) to meet the requirements of
this paragraph.''.
(B) Managed care.--Section 1932 of the Social
Security Act (42 U.S.C. 1396u-2) is amended by adding at
the end the following new subsection:
``(j) <<NOTE: Effective date. Contracts.>> Transmission of Address
Information.--Beginning January 1, 2027, each contract under a State
plan with a managed care entity (as defined in section 1932(a)(1)(B)) or
with a prepaid inpatient health plan or prepaid ambulatory health plan
(as such terms are defined in section 1903(m)(9)(D)), shall provide that
such entity or plan shall promptly transmit to the State any address
information for an individual enrolled with such entity or plan that is
provided to such entity or plan directly from, or verified by such
entity or plan directly with, such individual.''.
(b) CHIP.--
(1) In general.--Section 2107(e)(1) of the Social Security
Act (42 U.S.C. 1397gg(e)(1)) is amended--
(A) by redesignating subparagraphs (H) through (U)
as subparagraphs (I) through (V), respectively; and
(B) by inserting after subparagraph (G) the
following new subparagraph:
``(H) Section 1902(a)(88) (relating to address
information for enrollees and prevention of simultaneous
enrollments).''.
(2) Managed care.--Section 2103(f)(3) of the Social Security
Act (42 U.S.C. 1397cc(f)(3)) is amended by striking ``and (e)''
and inserting ``(e), and (j)''.
SEC. 71104. ENSURING DECEASED INDIVIDUALS DO NOT REMAIN ENROLLED.
Section 1902 of the Social Security Act (42 U.S.C. 1396a), as
amended by section 71103, is further amended--
(1) in subsection (a)--
(A) in paragraph (87), by striking ``; and'' and
inserting a semicolon;
(B) in paragraph (88), by striking the period at the
end and inserting ``; and''; and
(C) by inserting after paragraph (88) the following
new paragraph:
``(89) <<NOTE: Compliance. Applicability.>> provide that
the State shall comply with the eligibility verification
requirements under subsection (ww), except that
[[Page 139 STAT. 294]]
this paragraph shall apply only in the case of the 50 States and
the District of Columbia.''; and
(2) by adding at the end the following new subsection:
``(ww) Verification of Certain Eligibility Criteria.--
``(1) <<NOTE: Effective date. Determinations.>> In
general.--For purposes of subsection (a)(89), the eligibility
verification requirements, beginning January 1, 2027, are as
follows:
``(A) Quarterly screening to verify enrollee
status. <<NOTE: Reviews.>> --The State shall, not less
frequently than quarterly, review the Death Master File
(as such term is defined in section 203(d) of the
Bipartisan Budget Act of 2013) or a successor system
that provides such information needed to determine
whether any individuals enrolled for medical assistance
under the State plan (or waiver of such plan) are
deceased.
``(B) Disenrollment under state plan.--If the State
determines, based on information obtained from the Death
Master File, that an individual enrolled for medical
assistance under the State plan (or waiver of such plan)
is deceased, the State shall--
``(i) treat such information as factual
information confirming the death of a beneficiary;
``(ii) disenroll such individual from the
State plan (or waiver of such plan) in accordance
with subsection (a)(3); and
``(iii) discontinue any payments for medical
assistance under this title made on behalf of such
individual (other than payments for any items or
services furnished to such individual prior to the
death of such individual).
``(C) Reinstatement of coverage in the event of
error.--If a State determines that an individual was
misidentified as deceased based on information obtained
from the Death Master File and was erroneously
disenrolled from medical assistance under the State plan
(or waiver of such plan) based on such
misidentification, the State shall immediately re-enroll
such individual under the State plan (or waiver of such
plan), retroactive to the date of such disenrollment.
``(2) Rule of construction.--Nothing under this subsection
shall be construed to preclude the ability of a State to use
other electronic data sources to timely identify potentially
deceased beneficiaries, so long as the State is also in
compliance with the requirements of this subsection (and all
other requirements under this title relating to Medicaid
eligibility determination and redetermination).''.
SEC. 71105. ENSURING DECEASED PROVIDERS DO NOT REMAIN ENROLLED.
Section 1902(kk)(1) of the Social Security Act (42 U.S.C.
1396a(kk)(1)) is amended--
(1) by striking ``The State'' and inserting:
``(A) In general.--The State''; and
(2) by adding at the end the following new subparagraph:
``(B) Provider screening against death master
file. <<NOTE: Effective date. Time
period. Determination.>> --Beginning January 1, 2028, as
part of the enrollment (or reenrollment or revalidation
of enrollment) of a provider
[[Page 139 STAT. 295]]
or supplier under this title, and not less frequently
than quarterly during the period that such provider or
supplier is so enrolled, the State conducts a check of
the Death Master File (as such term is defined in
section 203(d) of the Bipartisan Budget Act of 2013) to
determine whether such provider or supplier is
deceased.''.
SEC. 71106. PAYMENT REDUCTION RELATED TO CERTAIN ERRONEOUS EXCESS
PAYMENTS UNDER MEDICAID.
(a) In General.--Section 1903(u)(1) of the Social Security Act (42
U.S.C. 1396b(u)(1)) is amended--
(1) in subparagraph (A)--
(A) by inserting ``for audits conducted by the
Secretary, or, at the option of the Secretary, audits
conducted by the State'' after ``exceeds 0.03''; and
(B) by inserting ``, to the extent practicable''
before the period at the end;
(2) in subparagraph (B)--
(A) by striking ``The Secretary'' and inserting
``(i) Subject to clause (ii), the Secretary''; and
(B) by adding at the end the following new clause:
``(ii) The amount waived under clause (i) for a fiscal year
may not exceed an amount equal to the erroneous excess payments
for medical assistance described in subparagraph (D)(i)(II) made
for such fiscal year that exceed the allowable error rate of
0.03.''.
(3) in subparagraph (C), by striking ``he'' in each place it
appears and inserting ``the Secretary'' in each such place; and
(4) in subparagraph (D)(i)--
(A) in subclause (I), by striking ``and'' at the
end;
(B) in subclause (II), by striking the period at the
end and inserting ``, or payments where insufficient
information is available to confirm eligibility, and'';
and
(C) by adding at the end the following new
subclause:
``(III) payments (other than payments described in subclause
(I)) for items and services furnished to an individual who is
not eligible for medical assistance under the State plan (or a
waiver of such plan) with respect to such items and services, or
payments where insufficient information is available to confirm
eligibility.''.
(b) <<NOTE: 42 USC 1396b note.>> Effective Date.--The amendments
made by subsection (a) shall apply beginning with respect to fiscal year
2030.
SEC. 71107. ELIGIBILITY REDETERMINATIONS.
(a) In General.--Section 1902(e)(14) of the Social Security Act (42
U.S.C. 1396a(e)(14)) is amended by adding at the end the following new
subparagraph:
``(L) Frequency of eligibility redeterminations for
certain individuals.--
``(i) <<NOTE: Effective date. Time periods.>>
In general.--Subject to clause (ii), with respect
to redeterminations of eligibility for medical
assistance under a State plan (or waiver of such
plan) scheduled on or after the first day of the
first quarter that begins after December 31, 2026,
a State shall make such a redetermination once
every 6 months for the following individuals:
[[Page 139 STAT. 296]]
``(I) Individuals enrolled under
subsection (a)(10)(A)(i)(VIII).
``(II) <<NOTE: Determination. Standards.
Regulations.>> Individuals described in
such subsection who are otherwise
enrolled under a waiver of such plan
that provides coverage that is
equivalent to minimum essential coverage
(as described in section 5000A(f)(1)(A)
of the Internal Revenue Code of 1986 and
determined in accordance with standards
prescribed by the Secretary in
regulations) to all individuals
described in subsection
(a)(10)(A)(i)(VIII).
``(ii) Exemption.--The requirements described
in clause (i) shall not apply to any individual
described in subsection (xx)(9)(A)(ii)(II).
``(iii) State defined.--For purposes of this
subparagraph, the term `State' means 1 of the 50
States or the District of Columbia.''.
(b) <<NOTE: Deadline. 42 USC 1396a note.>> Guidance.--Not later
than 180 days after the date of enactment of this section, the Secretary
of Health and Human Services, acting through the Administrator of the
Centers for Medicare & Medicaid Services, shall issue guidance relating
to the implementation of the amendments made by this section.
(c) <<NOTE: Time period.>> Implementation Funding.--For the
purposes of carrying out the provisions of, and the amendments made by,
this section, there are appropriated, out of any monies in the Treasury
not otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $75,000,000 for fiscal year 2026, to
remain available until expended.
SEC. 71108. REVISING HOME EQUITY LIMIT FOR DETERMINING ELIGIBILITY
FOR LONG-TERM CARE SERVICES UNDER THE
MEDICAID PROGRAM.
(a) Revising Home Equity Limit.--Section 1917(f)(1) of the Social
Security Act (42 U.S.C. 1396p(f)(1)) is amended--
(1) in subparagraph (B)--
(A) by striking ``A State'' and inserting ``(i) A
State'';
(B) in clause (i), as inserted by subparagraph (A)--
(i) by striking `` `$500,000' '' and inserting
``the amount specified in subparagraph (A)''; and
(ii) by inserting ``, in the case of an
individual's home that is located on a lot that is
zoned for agricultural use,'' after ``apply
subparagraph (A)''; and
(C) by adding at the end the following new clause:
``(ii) <<NOTE: Applicability.>> A State may elect, without
regard to the requirements of section 1902(a)(1) (relating to
statewideness) and section 1902(a)(10)(B) (relating to
comparability), to apply subparagraph (A), in the case of an
individual's home that is not described in clause (i), by
substituting for the amount specified in such subparagraph, an
amount that exceeds such amount, but does not exceed
$1,000,000.''; and
(2) in subparagraph (C)--
(A) by inserting ``(other than the amount specified
in subparagraph (B)(ii) (relating to certain non-
agricultural homes))'' after ``specified in this
paragraph''; and
(B) by adding at the end the following new sentence:
``In the case that application of the preceding sentence
would result in a dollar amount (other than the amount
[[Page 139 STAT. 297]]
specified in subparagraph (B)(i) (relating to certain
agricultural homes)) exceeding $1,000,000, such amount
shall be deemed to be equal to $1,000,000.''.
(b) Clarification.--Section 1902 of the Social Security Act (42
U.S.C. 1396a) is amended--
(1) in subsection (r)(2), by adding at the end the following
new subparagraph:
``(C) This paragraph shall not be construed as permitting a State to
determine the eligibility of an individual for medical assistance with
respect to nursing facility services or other long-term care services
without application of the limit under section 1917(f)(1).''; and
(2) in subsection (e)(14)(D)(iv)--
(A) by striking ``Subparagraphs'' and inserting
``(I) In general.--Subparagraphs'';
and
(B) by adding at the end the following new
subclause:
``(II) Application of home equity
interest limit.--Section 1917(f) shall
apply for purposes of determining the
eligibility of an individual for medical
assistance with respect to nursing
facility services or other long-term
care services.''.
(c) <<NOTE: 42 USC 1396p note.>> Effective Date.--The amendments
made by subsection (a) shall apply beginning on January 1, 2028.
SEC. 71109. ALIEN MEDICAID ELIGIBILITY.
(a) Medicaid.--Section 1903(v) of the Social Security Act (42 U.S.C.
1396b(v)) is amended--
(1) in paragraph (1), by striking ``and (4)''and inserting
``, (4), and (5)''; and
(2) by adding at the end the following new paragraph:
``(5) <<NOTE: Effective date.>> Notwithstanding the preceding
paragraphs of this subsection, beginning on October 1, 2026, except as
provided in paragraphs (2) and (4), in no event shall payment be made to
a State under this section for medical assistance furnished to an
individual unless such individual is--
``(A) a resident of 1 of the 50 States, the District of
Columbia, or a territory of the United States; and
``(B) either--
``(i) a citizen or national of the United States;
``(ii) an alien lawfully admitted for permanent
residence as an immigrant as defined by sections
101(a)(15) and 101(a)(20) of the Immigration and
Nationality Act, excluding, among others, alien
visitors, tourists, diplomats, and students who enter
the United States temporarily with no intention of
abandoning their residence in a foreign country;
``(iii) an alien who has been granted the status of
Cuban and Haitian entrant, as defined in section 501(e)
of the Refugee Education Assistance Act of 1980 (Public
Law 96-422); or
``(iv) an individual who lawfully resides in the
United States in accordance with a Compact of Free
Association referred to in section 402(b)(2)(G) of the
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996.''.
(b) CHIP.--Section 2107(e)(1) of the Social Security Act, as amended
by section 71103(b), <<NOTE: 42 USC 1397gg.>> is further amended--
[[Page 139 STAT. 298]]
(1) by redesignating subparagraphs (R) through (V) as
paragraphs (S) through (W), respectively; and
(2) by inserting after paragraph (Q) the following:
``(R) Section 1903(v)(5) (relating to payments for
medical assistance furnished to aliens), except in
relation to payments for services provided under section
2105(a)(1)(D)(ii).''.
(c) <<NOTE: Time period.>> Implementation Funding.--For the
purposes of carrying out the provisions of, and the amendments made by,
this section, there are appropriated, out of any monies in the Treasury
not otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $15,000,000 for fiscal year 2026, to
remain available until expended.
SEC. 71110. EXPANSION FMAP FOR EMERGENCY MEDICAID.
(a) In General.--Section 1905 of the Social Security Act (42 U.S.C.
1396d) is amended by adding at the end the following new subsection:
``(kk) FMAP for Treatment of an Emergency Medical
Condition. <<NOTE: Effective date.>> --Notwithstanding subsection (y)
and (z), beginning on October 1, 2026, the Federal medical assistance
percentage for payments for care and services described in paragraph (2)
of subsection 1903(v) furnished to an alien described in paragraph (1)
of such subsection shall not exceed the Federal medical assistance
percentage determined under subsection (b) for such State.''.
(b) <<NOTE: Time period.>> Implementation Funding.--For the
purposes of carrying out the provisions of, and the amendments made by
this section, there are appropriated, out of any monies in the Treasury
not otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $1,000,000 for fiscal year 2026, to remain
available until expended.
Subchapter B--Preventing Wasteful Spending
SEC. 71111. <<NOTE: Time period.>> MORATORIUM ON IMPLEMENTATION
OF RULE RELATING TO STAFFING STANDARDS
FOR LONG-TERM CARE FACILITIES UNDER
THE MEDICARE AND MEDICAID PROGRAMS.
The Secretary of Health and Human Services shall not, during the
period beginning on the date of the enactment of this section and ending
September 30, 2034, implement, administer, or enforce the amendments
made by the provisions of the final rule published by the Centers for
Medicare & Medicaid Services on May 10, 2024, and titled ``Medicare and
Medicaid Programs; Minimum Staffing Standards for Long-Term Care
Facilities and Medicaid Institutional Payment Transparency Reporting''
(89 Fed. Reg. 40876) to the following sections of part 483 of title 42,
Code of Federal Regulations:
(1) Section 483.5.
(2) Section 483.35.
SEC. 71112. REDUCING STATE MEDICAID COSTS.
(a) In General.--Section 1902(a)(34) of the Social Security Act (42
U.S.C. 1396a(a)(34)) is amended to read as follows:
``(34) provide that in the case of any individual who has
been determined to be eligible for medical assistance under the
plan and--
[[Page 139 STAT. 299]]
``(A) is enrolled under paragraph (10)(A)(i)(VIII),
such assistance will be made available to the individual
for care and services included under the plan and
furnished in or after the month before the month in
which the individual made application (or application
was made on the individual's behalf in the case of a
deceased individual) for such assistance if such
individual was (or upon application would have been)
eligible for such assistance at the time such care and
services were furnished; or
``(B) is not described in subparagraph (A), such
assistance will be made available to the individual for
care and services included under the plan and furnished
in or after the second month before the month in which
the individual made application (or application was made
on the individual's behalf in the case of a deceased
individual) for such assistance if such individual was
(or upon application would have been) eligible for such
assistance at the time such care and services were
furnished;''.
(b) Definition of Medical Assistance.--Section 1905(a) of the Social
Security Act (42 U.S.C. 1396d(a)) is amended by striking ``in or after
the third month before the month in which the recipient makes
application for assistance'' and inserting ``, with respect to an
individual described in section 1902(a)(34)(A), in or after the month
before the month in which the recipient makes application for
assistance, and with respect to an individual described in section
1902(a)(34)(B), in or after the second month before the month in which
the recipient makes application for assistance''.
(c) CHIP.--Section 2102(b)(1)(B) of the Social Security Act (42
U.S.C. 1397bb(b)(1)(B)) is amended--
(1) in clause (iv), by striking ``and'' at the end;
(2) in clause (v), by striking the period and inserting ``;
and''; and
(3) by adding at the end the following new clause:
``(vi) shall, in the case that the State
elects to provide child health or pregnancy-
related assistance to an individual for any period
prior to the month in which the individual made
application for such assistance (or application
was made on behalf of the individual), provide
that such assistance is not made available to such
individual for items and services included under
the State child health plan (or waiver of such
plan) that are furnished before the second month
preceding the month in which such individual made
application (or application was made on behalf of
such individual) for assistance.''.
(d) <<NOTE: Applicability. 42 USC 1396a note.>> Effective Date.--
The amendments made by this section shall apply to medical assistance,
child health assistance, and pregnancy-related assistance with respect
to individuals whose eligibility for such medical assistance, child
health assistance, or pregnancy-related assistance is based on an
application made on or after the first day of the first quarter that
begins after December 31, 2026.
(e) <<NOTE: Time period.>> Implementation Funding.--For the
purposes of carrying out the provisions of, and the amendments made by,
this section, there are appropriated, out of any monies in the Treasury
not otherwise appropriated, to the Administrator of the Centers for
[[Page 139 STAT. 300]]
Medicare & Medicaid Services, $10,000,000 for fiscal year 2026, to
remain available until expended.
SEC. 71113. <<NOTE: Time periods.>> FEDERAL PAYMENTS TO PROHIBITED
ENTITIES.
(a) In General.--No Federal funds that are considered direct
spending and provided to carry out a State plan under title XIX of the
Social Security Act or a waiver of such a plan shall be used to make
payments to a prohibited entity for items and services furnished during
the 1-year period beginning on the date of the enactment of this Act,
including any payments made directly to the prohibited entity or under a
contract or other arrangement between a State and a covered
organization.
(b) Definitions.--In this section:
(1) Prohibited entity.--The term ``prohibited entity'' means
an entity, including its affiliates, subsidiaries, successors,
and clinics--
(A) that, as of the first day of the first quarter
beginning after the date of enactment of this Act--
(i) is an organization described in section
501(c)(3) of the Internal Revenue Code of 1986 and
exempt from tax under section 501(a) of such Code;
(ii) is an essential community provider
described in section 156.235 of title 45, Code of
Federal Regulations (as in effect on the date of
enactment of this Act), that is primarily engaged
in family planning services, reproductive health,
and related medical care; and
(iii) provides for abortions, other than an
abortion--
(I) if the pregnancy is the result
of an act of rape or incest; or
(II) in the case where a woman
suffers from a physical disorder,
physical injury, or physical illness,
including a life-endangering physical
condition caused by or arising from the
pregnancy itself, that would, as
certified by a physician, place the
woman in danger of death unless an
abortion is performed; and
(B) for which the total amount of Federal and State
expenditures under the Medicaid program under title XIX
of the Social Security Act for medical assistance
furnished in fiscal year 2023 made directly, or by a
covered organization, to the entity or to any
affiliates, subsidiaries, successors, or clinics of the
entity, or made to the entity or to any affiliates,
subsidiaries, successors, or clinics of the entity as
part of a nationwide health care provider network,
exceeded $800,000.
(2) Direct spending.--The term ``direct spending'' has the
meaning given that term under section 250(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
900(c)).
(3) Covered organization.--The term ``covered organization''
means a managed care entity (as defined in section 1932(a)(1)(B)
of the Social Security Act (42 U.S.C. 1396u-2(a)(1)(B))) or a
prepaid inpatient health plan or prepaid ambulatory health plan
(as such terms are defined in section 1903(m)(9)(D) of such Act
(42 U.S.C. 1396b(m)(9)(D))).
[[Page 139 STAT. 301]]
(4) State.--The term ``State'' has the meaning given such
term in section 1101 of the Social Security Act (42 U.S.C.
1301).
(c) Implementation Funding.--For the purposes of carrying out this
section, there are appropriated, out of any monies in the Treasury not
otherwise appropriated, to the Administrator of the Centers for Medicare
& Medicaid Services, $1,000,000 for fiscal year 2026, to remain
available until expended.
Subchapter C--Stopping Abusive Financing Practices
SEC. 71114. SUNSETTING INCREASED FMAP INCENTIVE.
Section 1905(ii)(3) of the Social Security Act (42 U.S.C.
1396d(ii)(3)) is amended--
(1) by striking ``which has not'' and inserting the
following: ``which--
``(A) has not'';
(2) in subparagraph (A), as so inserted, by striking the
period at the end and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(B) begins to expend amounts for all such
individuals prior to January 1, 2026.''.
SEC. 71115. <<NOTE: Time periods.>> PROVIDER TAXES.
(a) Change in Threshold for Hold Harmless Provision of Broad-based
Health Care Related Taxes.--Section 1903(w)(4) of the Social Security
Act (42 U.S.C. 1396b(w)(4)) is amended--
(1) in subparagraph (C)(ii), by inserting ``, and for fiscal
years beginning on or after October 1, 2026, the applicable
percent determined under subparagraph (D) shall be substituted
for `6 percent' each place it appears'' after ``each place it
appears''; and
(2) by inserting after subparagraph (C)(ii), the following
new subparagraph:
``(D)(i) <<NOTE: Applicability. Determinations. Effective
dates.>> For purposes of subparagraph (C)(ii), the applicable
percent determined under this subparagraph is--
``(I) in the case of a non-expansion State or unit
of local government in such State and a class of health
care items or services described in section 433.56(a) of
title 42, Code of Federal Regulations (as in effect on
May 1, 2025)--
``(aa) if, on the date of enactment of this
subparagraph, the non-expansion State or unit of
local government in such State has enacted a tax
and imposes such tax on such class and the
Secretary determines that the tax is within the
hold harmless threshold as of that date, the
applicable percent of net patient revenue
attributable to such class that has been so
determined; and
``(bb) if, on the date of enactment of this
subparagraph, the non-expansion State or unit of
local government in such State has not enacted or
does not impose a tax with respect to such class,
0 percent; and
``(II) in the case of an expansion State or unit of
local government in such State and a class of health
care items or services described in section 433.56(a) of
title 42, Code
[[Page 139 STAT. 302]]
of Federal Regulations (as in effect on May 1, 2025),
subject to clause (iv)--
``(aa) if, on the date of enactment of this
subparagraph, the expansion State or unit of local
government in such State has enacted a tax and
imposes such tax on such class and the Secretary
determines that the tax is within the hold
harmless threshold as of that date, the lower of--
``(AA) the applicable percent of net
patient revenue attributable to such
class that has been so determined; and
``(BB) the applicable percent
specified in clause (ii) for the fiscal
year; and
``(bb) if, on the date of enactment of this
subparagraph, the expansion State or unit of local
government in such State has not enacted or does
not impose a tax with respect to such class, 0
percent.
``(ii) For purposes of clause (i)(II)(aa)(BB), the
applicable percent is--
``(I) for fiscal year 2028, 5.5 percent;
``(II) for fiscal year 2029, 5 percent;
``(III) for fiscal year 2030, 4.5 percent;
``(IV) for fiscal year 2031, 4 percent; and
``(V) for fiscal year 2032 and each subsequent
fiscal year, 3.5 percent.
``(iii) <<NOTE: Definitions.>> For purposes of
clause (i):
``(I) Expansion state.--The term `expansion
State' means a State that, beginning on January 1,
2014, or on any date thereafter, elects to provide
medical assistance to all individuals described in
section 1902(a)(10)(A)(i)(VIII) under the State
plan under this title or under a waiver of such
plan.
``(II) Non-expansion state.--The term `non-
expansion State' means a State that is not an
expansion State.
``(iv) In the case of a tax of an expansion State or
unit of local government in such State in effect on the
date of enactment of this clause, that applies to a
class of health care items or services that is described
in paragraph (3) or (4) of section 433.56(a) of title
42, Code of Federal Regulations (as in effect on May 1,
2025), and for which, on such date of enactment, is
within the hold harmless threshold (as determined by the
Secretary), the applicable percent of net patient
revenue attributable to such class that has been so
determined shall apply for a fiscal year instead of the
applicable percent specified in clause (ii) for the
fiscal year.''.
(b) <<NOTE: 42 USC 1396b note.>> Non-application to Territories.--
The amendments made by this section shall only apply with respect to a
State that is 1 of the 50 States or the District of Columbia.
(c) Implementation Funding.--For the purposes of carrying out the
provisions of, and the amendments made by, this section, there are
appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Administrator of the Centers for Medicare &
Medicaid Services, $20,000,000 for fiscal year 2026, to remain available
until expended.
[[Page 139 STAT. 303]]
SEC. 71116. <<NOTE: 42 USC 1396a note.>> STATE DIRECTED PAYMENTS.
(a) In General.--Subject to subsection (b), the Secretary of Health
and Human Services (in this section referred to as the Secretary) shall
revise section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations
(or a successor regulation) such that, with respect to a payment
described in such section made for a service furnished during a rating
period beginning on or after the date of the enactment of this Act, the
total payment rate for such service is limited to--
(1) in the case of a State that provides coverage to all
individuals described in section 1902(a)(10)(A)(i)(VIII) of the
Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) that is
equivalent to minimum essential coverage (as described in
section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and
determined in accordance with standards prescribed by the
Secretary in regulations) under the State plan (or waiver of
such plan) of such State under title XIX of such Act, 100
percent of the specified total published Medicare payment rate
(or, in the absence of a specified total published Medicare
payment rate, the payment rate under a Medicaid State plan (or
under a waiver of such plan)); or
(2) in the case of a State other than a State described in
paragraph (1), 110 percent of the specified total published
Medicare payment rate (or, in the absence of a specified total
published Medicare payment rate, the payment rate under a
Medicaid State plan (or under a waiver of such plan)).
(b) <<NOTE: Determination. Effective dates. Time periods..>>
Grandfathering Certain Payments.--In the case of a payment described in
section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a
successor regulation) for which written prior approval (or a good faith
effort to receive such approval, as determined by the Secretary) was
made before May 1, 2025, or a payment described in such section for a
rural hospital (as defined in subsection (d)(2)) for which written prior
approval (or a good faith effort to receive such approval, as determined
by the Secretary) was made by the date of enactment of this Act, for the
rating period occurring within 180 days of the date of the enactment of
this Act, or a payment so described for such rating period for which a
completed preprint was submitted to the Secretary prior to the date of
enactment of this Act, beginning with the rating period on or after
January 1, 2028, the total amount of such payment shall be reduced by 10
percentage points each year until the total payment rate for such
service is equal to the rate for such service specified in subsection
(a).
(c) <<NOTE: Applicability.>> Treatment of Expansion States.--The
revisions described in subsection (a) shall provide that, with respect
to a State that begins providing the coverage described in paragraph (1)
of such subsection on or after the date of the enactment of this Act,
the limitation described in such paragraph shall apply to such State
with respect to a payment described in section 438.6(c)(2)(iii) of title
42, Code of Federal Regulations (or a successor regulation) for a
service furnished during a rating period beginning on or after the date
of enactment of this Act.
(d) Definitions.--In this section:
(1) Rating period.--The term ``rating period'' has the
meaning given such term in section 438.2 of title 42, Code of
Federal Regulations (or a successor regulation).
[[Page 139 STAT. 304]]
(2) Rural hospital.--The term ``rural hospital'' means the
following:
(A) A subsection (d) hospital (as defined in
paragraph (1)(B) of section 1886(d) of the Social
Security Act (42 U.S.C. 1395ww(d))) that--
(i) is located in a rural area (as defined in
paragraph (2)(D) of such section);
(ii) is treated as being located in a rural
area pursuant to paragraph (8)(E) of such section;
or
(iii) is located in a rural census tract of a
metropolitan statistical area (as determined under
the most recent modification of the Goldsmith
Modification, originally published in the Federal
Register on February 27, 1992 (57 Fed. Reg.
6725)).
(B) A critical access hospital (as defined in
section 1861(mm)(1) of such Act (42 U.S.C.
1395x(mm)(1))).
(C) A sole community hospital (as defined in section
1886(d)(5)(D)(iii) of such Act (42 U.S.C.
1395ww(d)(5)(D)(iii))).
(D) A Medicare-dependent, small rural hospital (as
defined in section 1886(d)(5)(G)(iv) of such Act (42
U.S.C. 1395ww(d)(5)(G)(iv))).
(E) A low-volume hospital (as defined in section
1886(d)(12)(C) of such Act (42 U.S.C.
1395ww(d)(12)(C))).
(F) A rural emergency hospital (as defined in
section 1861(kkk)(2) of such Act (42 U.S.C.
1395x(kkk)(2))).
(3) State.--The term ``State'' means 1 of the 50 States or
the District of Columbia.
(4) Total published medicare payment rate.--The term ``total
published Medicare payment rate'' has the meaning given to such
term in section 438.6(a) of title 42, Code of Federal
Regulations (or a successor regulation).
(5) Written prior approval.--The term ``written prior
approval'' has the meaning given to such term in section
438.6(c)(2)(i) of title 42, Code of Federal Regulations (or a
successor regulation).
(e) <<NOTE: Time periods.>> Funding.--There are appropriated out of
any monies in the Treasury not otherwise appropriated $7,000,000 for
each of fiscal years 2026 through 2033 for purposes of carrying out this
section, to remain available until expended.
SEC. 71117. REQUIREMENTS REGARDING WAIVER OF UNIFORM TAX
REQUIREMENT FOR MEDICAID PROVIDER TAX.
(a) In General.--Section 1903(w) of the Social Security Act (42
U.S.C. 1396b(w)) is amended--
(1) in paragraph (3)(E), by inserting after clause (ii)(II)
the following new clause:
``(iii) For purposes of clause (ii)(I), a tax is not considered to
be generally redistributive if any of the following conditions apply:
``(I) Within a permissible class, the tax rate imposed on
any taxpayer or tax rate group (as defined in paragraph (7)(J))
explicitly defined by its relatively lower volume or percentage
of Medicaid taxable units (as defined in paragraph (7)(H)) is
lower than the tax rate imposed on any other taxpayer or tax
rate group explicitly defined by its relatively higher volume or
percentage of Medicaid taxable units.
[[Page 139 STAT. 305]]
``(II) Within a permissible class, the tax rate imposed on
any taxpayer or tax rate group (as so defined) based upon its
Medicaid taxable units (as so defined) is higher than the tax
rate imposed on any taxpayer or tax rate group based upon its
non-Medicaid taxable unit (as defined in paragraph (7)(I)).
``(III) The tax excludes or imposes a lower tax rate on a
taxpayer or tax rate group (as so defined) based on or defined
by any description that results in the same effect as described
in subclause (I) or (II) for a taxpayer or tax rate group.
Characteristics that may indicate such type of exclusion include
the use of terminology to establish a tax rate group--
``(aa) based on payments or expenditures made under
the program under this title without mentioning the term
`Medicaid' (or any similar term) to accomplish the same
effect as described in subclause (I) or (II); or
``(bb) that closely approximates a taxpayer or tax
rate group under the program under this title, to the
same effect as described in subclause (I) or (II).'';
and
(2) <<NOTE: Definitions.>> in paragraph (7), by adding at
the end the following new subparagraphs:
``(H) The term `Medicaid taxable unit' means a unit that is
being taxed within a health care related tax that is applicable
to the program under this title. Such term includes a unit that
is used as the basis for--
``(i) payment under the program under this title
(such as Medicaid bed days);
``(ii) Medicaid revenue;
``(iii) costs associated with the program under this
title (such as Medicaid charges, claims, or
expenditures); and
``(iv) other units associated with the program under
this title, as determined by the Secretary.
``(I) The term `non-Medicaid taxable unit' means a unit that
is being taxed within a health care related tax that is not
applicable to the program under this title. Such term includes a
unit that is used as the basis for--
``(i) payment by non-Medicaid payers (such as non-
Medicaid bed days);
``(ii) non-Medicaid revenue;
``(iii) costs that are not associated with the
program under this title (such as non-Medicaid charges,
non-Medicaid claims, or non-Medicaid expenditures); and
``(iv) other units not associated with the program
under this title, as determined by the Secretary.
``(J) The term `tax rate group' means a group of entities
contained within a permissible class of a health care related
tax that are taxed at the same rate.''.
(b) <<NOTE: 42 USC 1396b note.>> Non-application to Territories.--
The amendments made by this section shall only apply with respect to a
State that is 1 of the 50 States or the District of Columbia.
(c) <<NOTE: Applicability. Determination. Time period. 42 USC 1396b
note.>> Effective Date.--The amendments made by this section shall take
effect upon the date of enactment of this Act, subject to any applicable
transition period determined appropriate by the Secretary of Health and
Human Services, not to exceed 3 fiscal years.
[[Page 139 STAT. 306]]
SEC. 71118. REQUIRING BUDGET NEUTRALITY FOR MEDICAID DEMONSTRATION
PROJECTS UNDER SECTION 1115.
(a) In General.--Section 1115 of the Social Security Act (42 U.S.C.
1315) is amended by adding at the end the following new subsection:
``(g) Requirement of Budget Neutrality for Medicaid Demonstration
Projects.--
``(1) <<NOTE: Effective date. Certification.>> In
general.--Beginning January 1 2027, the Secretary may not
approve an application for (or renewal or amendment of) an
experimental, pilot, or demonstration project undertaken under
subsection (a) to promote the objectives of title XIX in a State
(in this subsection referred to as a `Medicaid demonstration
project') unless the Chief Actuary for the Centers for Medicare
& Medicaid Services certifies that such project, or, in the case
of a renewal, the duration of the preceding waiver, is not
expected to result in an increase in the amount of Federal
expenditures compared to the amount that such expenditures would
otherwise be in the absence of such project. For purposes of
this subsection, expenditures for the coverage of populations
and services that the State could have otherwise provided
through its Medicaid State plan or other authority under title
XIX, including expenditures that could be made under such
authority but for the provision of such services at a different
site of service than authorized under such State plan or other
authority, shall be considered expenditures in the absence of
such a project.
``(2) Treatment of savings.--In the event that expenditures
with respect to a State under a Medicaid demonstration project
are, during an approval period for such project, less than the
amount of such expenditures that would have otherwise been made
in the absence of such project, the Secretary shall specify the
methodology to be used with respect to the subsequent approval
period for such project for purposes of taking the difference
between such expenditures into account.''.
(b) <<NOTE: Time periods.>> Implementation Funding.--For the
purposes of carrying out the provisions of, and the amendments made by,
this section, there are appropriated, out of any monies in the Treasury
not otherwise appropriated, to the Administrator of the Centers for
Medicare & Medicaid Services, $5,000,000 for each of fiscal years 2026
and 2027, to remain available until expended.
Subchapter D--Increasing Personal Accountability
SEC. 71119. <<NOTE: Time periods.>> REQUIREMENT FOR STATES TO
ESTABLISH MEDICAID COMMUNITY
ENGAGEMENT REQUIREMENTS FOR CERTAIN
INDIVIDUALS.
(a) In General.--Section 1902 of the Social Security Act (42 U.S.C.
1396a), as amended by sections 71103 and 71104, is further amended by
adding at the end the following new subsection:
``(xx) Community Engagement Requirement for Applicable
Individuals.--
``(1) <<NOTE: Deadline.>> In general.--Except as provided
in paragraph (11), beginning not later than the first day of the
first quarter that begins after December 31, 2026, or, at the
option of the State under a waiver or demonstration project
under section 1115 or the State plan, such earlier date as the
State may specify, subject to the succeeding provisions of this
subsection,
[[Page 139 STAT. 307]]
a State shall provide, as a condition of eligibility for medical
assistance for an applicable individual, that such individual is
required to demonstrate community engagement under paragraph
(2)--
``(A) in the case of an applicable individual who
has filed an application for medical assistance under a
State plan (or a waiver of such plan) under this title,
for 1 or more but not more than 3 (as specified by the
State) consecutive months immediately preceding the
month during which such individual applies for such
medical assistance; and
``(B) in the case of an applicable individual
enrolled and receiving medical assistance under a State
plan (or under a waiver of such plan) under this title,
for 1 or more (as specified by the State) months,
whether or not consecutive--
``(i) during the period between such
individual's most recent determination (or
redetermination, as applicable) of eligibility and
such individual's next regularly scheduled
redetermination of eligibility (as verified by the
State as part of such regularly scheduled
redetermination of eligibility); or
``(ii) in the case of a State that has elected
under paragraph (4) to conduct more frequent
verifications of compliance with the requirement
to demonstrate community engagement, during the
period between the most recent and next such
verification with respect to such individual.
``(2) Community engagement compliance described.--Subject to
paragraph <<NOTE: Determination. Criteria. Regulations.>> (3),
an applicable individual demonstrates community engagement under
this paragraph for a month if such individual meets 1 or more of
the following conditions with respect to such month, as
determined in accordance with criteria established by the
Secretary through regulation:
``(A) The individual works not less than 80 hours.
``(B) The individual completes not less than 80
hours of community service.
``(C) The individual participates in a work program
for not less than 80 hours.
``(D) The individual is enrolled in an educational
program at least half-time.
``(E) The individual engages in any combination of
the activities described in subparagraphs (A) through
(D), for a total of not less than 80 hours.
``(F) The individual has a monthly income that is
not less than the applicable minimum wage requirement
under section 6 of the Fair Labor Standards Act of 1938,
multiplied by 80 hours.
``(G) The individual had an average monthly income
over the preceding 6 months that is not less than the
applicable minimum wage requirement under section 6 of
the Fair Labor Standards Act of 1938 multiplied by 80
hours, and is a seasonal worker, as described in section
45R(d)(5)(B) of the Internal Revenue Code of 1986 .
``(3) Exceptions.--
``(A) Mandatory exception for certain individuals.--
The State shall deem an applicable individual to
[[Page 139 STAT. 308]]
have demonstrated community engagement under paragraph
(2) for a month, and may elect to not require an
individual to verify information resulting in such
deeming, if--
``(i) for part or all of such month, the
individual--
``(I) was a specified excluded
individual (as defined in paragraph
(9)(A)(ii)); or
``(II) was--
``(aa) under the age of 19;
``(bb) entitled to, or
enrolled for, benefits under
part A of title XVIII, or
enrolled for benefits under part
B of title XVIII; or
``(cc) described in any of
subclauses (I) through (VII) of
subsection (a)(10)(A)(i); or
``(ii) at any point during the 3-month period
ending on the first day of such month, the
individual was an inmate of a public institution.
``(B) Optional exception for short-term hardship
events.--
``(i) <<NOTE: Procedures.>> In general.--The
State plan (or waiver of such plan) may provide,
in the case of an applicable individual who
experiences a short-term hardship event during a
month, that the State shall, under procedures
established by the State (in accordance with
standards specified by the Secretary), in the case
of a short-term hardship event described in clause
(ii)(II) and, upon the request of such individual,
a short-term hardship event described in subclause
(I) or (III) of clause (ii), deem such individual
to have demonstrated community engagement under
paragraph (2) for such month.
``(ii) Short-term hardship event defined.--For
purposes of this subparagraph, an applicable
individual experiences a short-term hardship event
during a month if, for part or all of such month--
``(I) such individual receives
inpatient hospital services, nursing
facility services, services in an
intermediate care facility for
individuals with intellectual
disabilities, inpatient psychiatric
hospital services, or such other
services of similar acuity (including
outpatient care relating to other
services specified in this subclause) as
the Secretary determines appropriate;
``(II) such individual resides in a
county (or equivalent unit of local
government)--
``(aa) in which there exists
an emergency or disaster
declared by the President
pursuant to the National
Emergencies Act or the Robert T.
Stafford Disaster Relief and
Emergency Assistance Act; or
``(bb) that, subject to a
request from the State to the
Secretary, made in such form, at
such time, and containing such
information as the Secretary may
require, has an unemployment
rate that is at or above the
lesser of--
``(AA) 8 percent; or
[[Page 139 STAT. 309]]
``(BB) 1.5 times the
national unemployment rate;
or
``(III) such individual or their
dependent must travel outside of their
community for an extended period of time
to receive medical services necessary to
treat a serious or complex medical
condition (as described in paragraph
(9)(A)(ii)(V)(ee)) that are not
available within their community of
residence.
``(4) Option to conduct more frequent compliance
verifications.--With respect to an applicable individual
enrolled and receiving medical assistance under a State plan (or
a waiver of such plan) under this title, the State shall verify
(in accordance with procedures specified by the Secretary) that
each such individual has met the requirement to demonstrate
community engagement under paragraph (1) during each such
individual's regularly scheduled redetermination of eligibility,
except that a State may provide for such verifications more
frequently.
``(5) <<NOTE: Standards. Processes.>> Ex parte
verifications.--For purposes of verifying that an applicable
individual has met the requirement to demonstrate community
engagement under paragraph (1), or determining such individual
to be deemed to have demonstrated community engagement under
paragraph (3), or that an individual is a specified excluded
individual under paragraph (9)(A)(ii), the State shall, in
accordance with standards established by the Secretary,
establish processes and use reliable information available to
the State (such as payroll data or payments or encounter data
under this title for individuals and data on payments to such
individuals for the provision of services covered under this
title) without requiring, where possible, the applicable
individual to submit additional information.
``(6) Procedure in the case of noncompliance.--
``(A) <<NOTE: Notices.>> In general.--If a State is
unable to verify that an applicable individual has met
the requirement to demonstrate community engagement
under paragraph (1) (including, if applicable, by
verifying that such individual was deemed to have
demonstrated community engagement under paragraph (3))
the State shall (in accordance with standards specified
by the Secretary)--
``(i) provide such individual with the notice
of noncompliance described in subparagraph (B);
``(ii)(I) provide such individual with a
period of 30 calendar days, beginning on the date
on which such notice of noncompliance is received
by the individual, to--
``(aa) make a satisfactory showing
to the State of compliance with such
requirement (including, if applicable,
by showing that such individual was or
should be deemed to have demonstrated
community engagement under paragraph
(3)); or
``(bb) make a satisfactory showing
to the State that such requirement does
not apply to such individual on the
basis that such individual does not meet
the definition of applicable individual
under paragraph (9)(A); and
[[Page 139 STAT. 310]]
``(II) if such individual is enrolled under
the State plan (or a waiver of such plan) under
this title, continue to provide such individual
with medical assistance during such 30-calendar-
day period; and
``(iii) <<NOTE: Deadline. Determination.>> if
no such satisfactory showing is made and the
individual is not a specified excluded individual
described in paragraph (9)(A)(ii), deny such
individual's application for medical assistance
under the State plan (or waiver of such plan) or,
as applicable, disenroll such individual from the
plan (or waiver of such plan) not later than the
end of the month following the month in which such
30-calendar-day period ends, provided that--
``(I) the State first determines
whether, with respect to the individual,
there is any other basis for eligibility
for medical assistance under the State
plan (or waiver of such plan) or for
another insurance affordability program;
and
``(II) the individual is provided
written notice and granted an
opportunity for a fair hearing in
accordance with subsection (a)(3).
``(B) Notice.--The notice of noncompliance provided
to an applicable individual under subparagraph (A)(i)
shall include information (in accordance with standards
specified by the Secretary) on--
``(i) how such individual may make a
satisfactory showing of compliance with such
requirement (as described in subparagraph (A)(ii))
or make a satisfactory showing that such
requirement does not apply to such individual on
the basis that such individual does not meet the
definition of applicable individual under
paragraph (9)(A); and
``(ii) how such individual may reapply for
medical assistance under the State plan (or a
waiver of such plan) under this title in the case
that such individuals' application is denied or,
as applicable, in the case that such individual is
disenrolled from the plan (or waiver).
``(7) Treatment of noncompliant individuals in relation to
certain other provisions.--
``(A) Certain fmap increases.--A State shall not be
treated as not providing medical assistance to all
individuals described in section
1902(a)(10)(A)(i)(VIII), or as not expending amounts for
all such individuals under the State plan (or waiver of
such plan), solely because such an individual is
determined ineligible for medical assistance under the
State plan (or waiver) on the basis of a failure to meet
the requirement to demonstrate community engagement
under paragraph (1).
``(B) Other provisions.--For purposes of section
36B(c)(2)(B) of the Internal Revenue Code of 1986, an
individual shall be deemed to be eligible for minimum
essential coverage described in section
5000A(f)(1)(A)(ii) of such Code for a month if such
individual would have been eligible for medical
assistance under a State plan (or a waiver of such plan)
under this title but for a failure to meet
[[Page 139 STAT. 311]]
the requirement to demonstrate community engagement
under paragraph (1).
``(8) Outreach.--
``(A) <<NOTE: Effective date. Notification.>> In
general.--In accordance with standards specified by the
Secretary, beginning not later than the date that
precedes December 31, 2026 (or, if the State elects
under paragraph (1) to specify an earlier date, such
earlier date) by the number of months specified by the
State under paragraph (1)(A) plus 3 months, and
periodically thereafter, the State shall notify
applicable individuals enrolled under a State plan (or
waiver) under this title of the requirement to
demonstrate community engagement under this subsection.
Such notice shall include information on--
``(i) how to comply with such requirement,
including an explanation of the exceptions to such
requirement under paragraph (3) and the definition
of the term `applicable individual' under
paragraph (9)(A);
``(ii) the consequences of noncompliance with
such requirement; and
``(iii) how to report to the State any change
in the individual's status that could result in--
``(I) the applicability of an
exception under paragraph (3) (or the
end of the applicability of such an
exception); or
``(II) the individual qualifying as
a specified excluded individual under
paragraph (9)(A)(ii).
``(B) <<NOTE: Electronic formats.>> Form of
outreach notice.--A notice required under subparagraph
(A) shall be delivered--
``(i) <<NOTE: Mail.>> by regular mail (or, if
elected by the individual, in an electronic
format); and
``(ii) in 1 or more additional forms, which
may include telephone, text message, an internet
website, other commonly available electronic
means, and such other forms as the Secretary
determines appropriate.
``(9) Definitions.--In this subsection:
``(A) Applicable individual.--
``(i) In general.--The term `applicable
individual' means an individual (other than a
specified excluded individual (as defined in
clause (ii)))--
``(I) who is eligible to enroll (or
is enrolled) under the State plan under
subsection (a)(10)(A)(i)(VIII); or
``(II) who--
``(aa) is otherwise eligible
to enroll (or is enrolled) under
a waiver of such plan that
provides coverage that is
equivalent to minimum essential
coverage (as described in
section 5000A(f)(1)(A) of the
Internal Revenue Code of 1986
and as determined in accordance
with standards prescribed by the
Secretary in regulations); and
``(bb) has attained the age
of 19 and is under 65 years of
age, is not pregnant, is not
entitled to, or enrolled for,
benefits under part A of title
XVIII, or enrolled for benefits
[[Page 139 STAT. 312]]
under part B of title XVIII, and
is not otherwise eligible to
enroll under such plan.
``(ii) Specified excluded individual.--For
purposes of clause (i), the term `specified
excluded individual' means an individual, as
determined by the State (in accordance with
standards specified by the Secretary)--
``(I) who is described in subsection
(a)(10)(A)(i)(IX);
``(II) who--
``(aa) is an Indian or an
Urban Indian (as such terms are
defined in paragraphs (13) and
(28) of section 4 of the Indian
Health Care Improvement Act);
``(bb) is a California
Indian described in section
809(a) of such Act; or
``(cc) has otherwise been
determined eligible as an Indian
for the Indian Health Service
under regulations promulgated by
the Secretary;
``(III) who is the parent, guardian,
caretaker relative, or family caregiver
(as defined in section 2 of the RAISE
Family Caregivers Act) of a dependent
child 13 years of age and under or a
disabled individual;
``(IV) who is a veteran with a
disability rated as total under section
1155 of title 38, United States Code;
``(V) who is medically frail or
otherwise has special medical needs (as
defined by the Secretary), including an
individual--
``(aa) who is blind or
disabled (as defined in section
1614);
``(bb) with a substance use
disorder;
``(cc) with a disabling
mental disorder;
``(dd) with a physical,
intellectual or developmental
disability that significantly
impairs their ability to perform
1 or more activities of daily
living; or
``(ee) with a serious or
complex medical condition;
``(VI) who--
``(aa) is in compliance with
any requirements imposed by the
State pursuant to section 407;
or
``(bb) is a member of a
household that receives
supplemental nutrition
assistance program benefits
under the Food and Nutrition Act
of 2008 and is not exempt from a
work requirement under such Act;
``(VII) who is participating in a
drug addiction or alcoholic treatment
and rehabilitation program (as defined
in section 3(h) of the Food and
Nutrition Act of 2008);
``(VIII) who is an inmate of a
public institution; or
[[Page 139 STAT. 313]]
``(IX) who is pregnant or entitled
to postpartum medical assistance under
paragraph (5) or (16) of subsection (e).
``(B) Educational program.--The term `educational
program' includes--
``(i) an institution of higher education (as
defined in section 101 of the Higher Education Act
of 1965); and
``(ii) a program of career and technical
education (as defined in section 3 of the Carl D.
Perkins Career and Technical Education Act of
2006).
``(C) State.--The term `State' means 1 of the 50
States or the District of Columbia.
``(D) Work program.--The term `work program' has the
meaning given such term in section 6(o)(1) of the Food
and Nutrition Act of 2008.
``(10) Prohibiting waiver of community engagement
requirements.--Notwithstanding section 1115(a), the provisions
of this subsection may not be waived.
``(11) <<NOTE: Determinations.>> Special implementation
rule.--
``(A) In general.--Subject to subparagraph (C), the
Secretary may exempt a State from compliance with the
requirements of this subsection if--
``(i) the State submits to the Secretary a
request for such exemption, made in such form and
at such time as the Secretary may require, and
including the information specified in
subparagraph (B); and
``(ii) the Secretary determines that based on
such request, the State is demonstrating a good
faith effort to comply with the requirements of
this subsection.
``(B) Good faith effort determination.--In
determining whether a State is demonstrating a good
faith effort for purposes of subparagraph (A)(ii), the
Secretary shall consider--
``(i) any actions taken by the State toward
compliance with the requirements of this
subsection;
``(ii) any significant barriers to or
challenges in meeting such requirements, including
related to funding, design, development,
procurement, or installation of necessary systems
or resources;
``(iii) the State's detailed plan and timeline
for achieving full compliance with such
requirements, including any milestones of such
plan (as defined by the Secretary); and
``(iv) any other criteria determined
appropriate by the Secretary.
``(C) Duration of exemption.--
``(i) <<NOTE: Expiration date.>> In
general.--An exemption granted under subparagraph
(A) shall expire not later than December 31, 2028,
and may not be renewed beyond such date.
``(ii) Early termination.--The Secretary may
terminate an exemption granted under subparagraph
(A) prior to the expiration date of such exemption
if the Secretary determined that the State has--
``(I) failed to comply with the
reporting requirements described in
subparagraph (D); or
[[Page 139 STAT. 314]]
``(II) based on the information
provided pursuant to subparagraph (D),
failed to make continued good faith
efforts toward compliance with the
requirements of this subsection.
``(D) Reporting requirements.--A State granted an
exemption under subparagraph (A) shall submit to the
Secretary--
``(i) quarterly progress reports on the
State's status in achieving the milestones toward
full compliance described in subparagraph
(B)(iii); and
``(ii) information on specific risks or newly
identified barriers or challenges to full
compliance, including the State's plan to mitigate
such risks, barriers, or challenges.''.
(b) Conforming Amendment.--Section 1902(a)(10)(A)(i)(VIII) of the
Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) is amended by
striking ``subject to subsection (k)'' and inserting ``subject to
subsections (k) and (xx)''.
(c) <<NOTE: 42 USC 1396b note.>> Prohibiting Conflicts of
Interest.--A State shall not use a Medicaid managed care entity or other
specified entity (as such terms are defined in section 1903(m)(9)(D)),
or other contractor to determine beneficiary compliance under such
section unless the contractor has no direct or indirect financial
relationship with any Medicaid managed care entity or other specified
entity that is responsible for providing or arranging for coverage of
medical assistance for individuals enrolled with the entity pursuant to
a contract with such State.
(d) <<NOTE: Deadline. 42 USC 1396a note.>> Interim Final
Rulemaking.--Not later than June 1, 2026, the Secretary of Health and
Human Services shall promulgate an interim final rule for purposes of
implementing the provisions of, and the amendments made by, this
section. Any action taken to implement the provisions of, and the
amendments made by, this section shall not be subject to the provisions
of section 553 of title 5, United States Code.
(e) <<NOTE: 42 USC 1396a note.>> Development of Government
Efficiency Grants to States.--
(1) In general.--In order for States to establish systems
necessary to carry out the provisions of, and amendments made
by, this section or other sections of this chapter that pertain
to conducting eligibility determinations or redeterminations,
the Secretary of Health and Human Services shall--
(A) out of amounts appropriated under paragraph
(3)(A), award to each State a grant equal to the amount
specified in paragraph (2) for such State; and
(B) out of amounts appropriated under paragraph
(3)(B), distribute an equal amount among such States.
(2) <<NOTE: Effective date.>> Amount specified.--For
purposes of paragraph (1)(A), the amount specified in this
paragraph is an amount that bears the same ratio to the amount
appropriated under paragraph (3)(A) as the number of applicable
individuals (as defined in section 1902(xx) of the Social
Security Act, as added by subsection (a)) residing in such State
bears to the total number of such individuals residing in all
States, as of March 31, 2025.
(3) Funding.--There are appropriated, out of any monies in
the Treasury not otherwise appropriated--
[[Page 139 STAT. 315]]
(A) $100,000,000 for fiscal year 2026 for purposes
of awarding grants under paragraph (1)(A), to remain
available until expended; and
(B) $100,000,000 for fiscal year 2026 for purposes
of award grants under paragraph (1)(B), to remain
available until expended.
(4) Definition.--In this subsection, the term ``State''
means 1 of the 50 States and the District of Columbia.
(f) Implementation Funding.--For the purposes of carrying out the
provisions of, and the amendments made by, this section, there are
appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Administrator of the Centers for Medicare &
Medicaid Services, $200,000,000 for fiscal year 2026, to remain
available until expended.
SEC. 71120. <<NOTE: Time periods.>> MODIFYING COST SHARING
REQUIREMENTS FOR CERTAIN EXPANSION
INDIVIDUALS UNDER THE MEDICAID
PROGRAM.
(a) <<NOTE: Effective dates.>> In General.--Section 1916 of the
Social Security Act (42 U.S.C. 1396o) is amended--
(1) in subsection (a), in the matter preceding paragraph
(1), by inserting ``(other than, beginning October 1, 2028,
specified individuals (as defined in subsection (k)(3)))'' after
``individuals''; and
(2) by adding at the end the following new subsection:
``(k) Special Rules for Certain Expansion Individuals.--
``(1) Premiums.--Beginning October 1, 2028, the State plan
shall provide that in the case of a specified individual (as
defined in paragraph (3)) who is eligible under the plan, no
enrollment fee, premium, or similar charge will be imposed under
the plan.
``(2) Required imposition of cost sharing.--
``(A) <<NOTE: Determination.>> In general.--Subject
to subparagraph (B) and subsection (j), in the case of a
specified individual, the State plan shall, beginning
October 1, 2028, provide for the imposition of such
deductions, cost sharing, or similar charges determined
appropriate by the State (in an amount greater than $0)
with respect to certain care, items, or services
furnished to such an individual, as determined by the
State.
``(B) Limitations.--
``(i) Exclusion of certain services.--In no
case may a deduction, cost sharing, or similar
charge be imposed under the State plan with
respect to care, items, or services described in
any of subparagraphs (B) through (J) of subsection
(a)(2), or any primary care services, mental
health care services, substance use disorder
services, or services provided by a Federally
qualified health center (as defined in
1905(l)(2)), certified community behavioral health
clinic (as defined in section 1905(jj)(2)), or
rural health clinic (as defined in 1905(l)(1)),
furnished to a specified individual.
``(ii) Item and service limitation.--
``(I) In general.--Except as
provided in subclause (II), in no case
may a deduction, cost sharing, or
similar charge imposed under the State
[[Page 139 STAT. 316]]
plan with respect to care or an item or
service furnished to a specified
individual exceed $35.
``(II) Special rules for
prescription drugs.--In no case may a
deduction, cost sharing, or similar
charge imposed under the State plan with
respect to a prescription drug furnished
to a specified individual exceed the
limit that would be applicable under
paragraph (2)(A)(i) or (2)(B) of section
1916A(c) with respect to such drug and
individual if such drug so furnished
were subject to cost sharing under such
section.
``(iii) <<NOTE: Applicability.>> Maximum
limit on cost sharing.--The total aggregate amount
of deductions, cost sharing, or similar charges
imposed under the State plan for all individuals
in the family may not exceed 5 percent of the
family income of the family involved, as applied
on a quarterly or monthly basis (as specified by
the State).
``(C) Cases of nonpayment.--Notwithstanding
subsection (e), a State may permit a provider
participating under the State plan to require, as a
condition for the provision of care, items, or services
to a specified individual entitled to medical assistance
under this title for such care, items, or services, the
payment of any deductions, cost sharing, or similar
charges authorized to be imposed with respect to such
care, items, or services. Nothing in this subparagraph
shall be construed as preventing a provider from
reducing or waiving the application of such deductions,
cost sharing, or similar charges on a case-by-case
basis.
``(3) Specified individual defined.--For purposes of this
subsection, the term `specified individual' means an individual
who has a family income (as determined in accordance with
section 1902(e)(14)) that exceeds the poverty line (as defined
in section 2110(c)(5)) applicable to a family of the size
involved and--
``(A) is enrolled under section
1902(a)(10)(A)(i)(VIII); or
``(B) is described in such subsection and otherwise
enrolled under a waiver of the State plan that provides
coverage that is equivalent to minimum essential
coverage (as described in section 5000A(f)(1)(A) of the
Internal Revenue Code of 1986 and determined in
accordance with standards prescribed by the Secretary in
regulations) to all individuals described in section
1902(a)(10)(A)(i)(VIII).
``(4) State defined.--For purposes of this subsection, the
term `State' means 1 of the 50 States or the District of
Columbia.''.
(b) Conforming Amendments.--
(1) Required application.--Section 1902(a)(14) of the Social
Security Act (42 U.S.C. 1396a(a)(14)) is amended by inserting
``and provide for imposition of such deductions, cost sharing,
or similar charges for care, items, or services furnished to
specified individuals (as defined in paragraph (3) of section
1916(k)) in accordance with paragraph (2) of such section''
after ``section 1916''.
[[Page 139 STAT. 317]]
(2) Nonapplicability of alternative cost sharing.--Section
1916A(a)(1) of the Social Security Act (42 U.S.C. 1396o-1(a)(1))
is amended, in the second sentence, by striking ``or (j)'' and
inserting ``(j), or (k)''.
(c) Implementation Funding.--For the purposes of carrying out the
provisions of, and the amendments made by, this section, there are
appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Administrator of the Centers for Medicare &
Medicaid Services, $15,000,000 for fiscal year 2026, to remain available
until expended.
Subchapter E--Expanding Access to Care
SEC. 71121. <<NOTE: Time periods.>> MAKING CERTAIN ADJUSTMENTS TO
COVERAGE OF HOME OR COMMUNITY-BASED
SERVICES UNDER MEDICAID.
(a) Expanding HCBS Coverage Under Section 1915(c) Waivers.--Section
1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) is amended--
(1) in paragraph (3), by inserting ``paragraph (11) or''
before ``subsection (h)(2)''; and
(2) by adding at the end the following new paragraph:
``(11) <<NOTE: Determinations.>> Expanding Coverage for Home or
Community-based Services.--
``(A) <<NOTE: Effective date.>> In general.--Beginning July
1, 2028, notwithstanding paragraph (1), the Secretary may
approve a waiver that is standalone from any other waiver
approved under this subsection to include as medical assistance
under the State plan of such State payment for part or all of
the cost of home or community-based services (other than room
and board (as described in paragraph (1))) approved by the
Secretary which are provided pursuant to a written plan of care
to individuals described in subparagraph (B)(iii). A waiver
approved under this paragraph shall be for an initial term of 3
years and, upon the request of the State, shall be extended for
additional 5-year periods unless the Secretary determines that
for the previous waiver period the requirements specified under
this subsection (excluding those excepted under subparagraph
(B)) have not been met.
``(B) State requirements.--In addition to the requirements
specified under this subsection (except for the requirements
described in subparagraphs (C) and (D) of paragraph (2) and any
other requirement specified under this subsection that the
Secretary determines to be inapplicable in the context of a
waiver that does not require individuals to have a determination
described in paragraph (1)), a State shall meet the following
requirements as a condition of waiver approval:
``(i) As of the date that such State requests a
waiver under this subsection to provide home or
community-based services to individuals described in
clause (iii), all other waivers (if any) granted under
this subsection to such State meet the requirements of
this subsection.
``(ii) The State demonstrates to the Secretary that
approval of a waiver under this subsection with respect
to individuals described in clause (iii) will not result
in a material increase of the average amount of time
that individuals with respect to whom a determination
described in paragraph (1) has been made will need to
wait to receive
[[Page 139 STAT. 318]]
home or community-based services under any other waiver
granted under this subsection, as determined by the
Secretary.
``(iii) <<NOTE: Criteria.>> The State establishes
needs-based criteria, subject to the approval of the
Secretary, regarding who will be eligible for home or
community-based services under a waiver approved under
this paragraph without requiring such individuals to
have a determination described in paragraph (1), and
specifies the home or community-based services such
individuals so eligible will receive.
``(iv) <<NOTE: Criteria.>> The State establishes
needs-based criteria for determining whether an
individual described in clause (iii) requires the level
of care provided in a hospital, nursing facility, or an
intermediate care facility for individuals with
developmental disabilities under the State plan or under
any waiver of such plan that are more stringent than the
needs-based criteria established under clause (iii) for
determining eligibility for home or community-based
services.
``(v) The State attests that the State's average per
capita expenditure for medical assistance under the
State plan (or waiver of such plan) provided with
respect to such individuals enrolled in a waiver under
this paragraph will not exceed the State's average per
capita expenditure for medical assistance for
individuals receiving institutional care under the State
plan (or waiver of such plan) for the duration that the
waiver under this paragraph is in effect.
``(vi) <<NOTE: Data.>> The State provides to the
Secretary data (in such form and manner as the Secretary
may specify) regarding the number of individuals
described in clause (iii) with respect to a State
seeking approval of a waiver under this subsection, to
whom the State will make such services available under
such waiver.
``(vii) <<NOTE: Data.>> The State agrees to provide
to the Secretary, not less frequently than annually,
data for purposes of paragraph (2)(E) (in such form and
manner as the Secretary may specify) regarding, with
respect to each preceding year in which a waiver under
this subsection to provide home or community-based
services to individuals described in clause (iii) was in
effect--
``(I) the cost (as such term is defined by the
Secretary) of such services furnished to
individuals described in clause (iii), broken down
by type of service;
``(II) with respect to each type of home or
community-based service provided under the waiver,
the length of time that such individuals have
received such service;
``(III) a comparison between the data
described in subclause (I) and any comparable data
available with respect to individuals with respect
to whom a determination described in paragraph (1)
has been made and with respect to individuals
receiving institutional care under this title; and
``(IV) the number of individuals who have
received home or community-based services under
the waiver during the preceding year.
[[Page 139 STAT. 319]]
``(C) Limitation on payments.--No payments made to carry out
this paragraph shall be used by a State to make payments to a
third party on behalf of an individual practitioner for benefits
such as health insurance, skills training, and other benefits
customary for employees, in the case of a class of practitioners
for which the program established under this title is the
primary source of revenue.''.
(b) Implementation Funding.--
(1) In general.--There are appropriated, out of any monies
in the Treasury not otherwise appropriated, to the Administrator
of the Centers for Medicare & Medicaid Services--
(A) for fiscal year 2026, $50,000,000 for purposes
of carrying out the provisions of, and the amendments
made by, this section, to remain available until
expended; and
(B) for fiscal year 2027, $100,000,000 for purposes
of making payments to States, subject to paragraph (2),
to support State systems to deliver home or community-
based services under section 1915(c) of the Social
Security Act (42 U.S.C. 1396n(c)) (as amended by this
section) or under section 1115 of such Act (42 U.S.C.
1315), to remain available until expended.
(2) Payments based on state hcbs eligible population.--
Payments to States from amounts made available by paragraph
(1)(B) shall be made, with respect to a State, on the basis of
the proportion of the population of the State that is receiving
home or community-based services under section1915(c) of the
Social Security Act (42 U.S.C. 1396n(c)) (as amended by this
section) or under section 1115 of such Act (42 U.S.C. 1315), as
compared to all States.
CHAPTER 2--MEDICARE
Subchapter A--Strengthening Eligibility Requirements
SEC. 71201. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVIDUALS.
Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is
amended by adding at the end the following new section:
``SEC. 1899C. <<NOTE: 42 USC 1395mmm.>> LIMITING MEDICARE
COVERAGE OF CERTAIN INDIVIDUALS.
``(a) In General.--Subject to subsection (b), an individual may be
entitled to, or enrolled for, benefits under this title only if the
individual is--
``(1) a citizen or national of the United States;
``(2) an alien who is lawfully admitted for permanent
residence under the Immigration and Nationality Act;
``(3) an alien who has been granted the status of Cuban and
Haitian entrant, as defined in section 501(e) of the Refugee
Education Assistance Act of 1980 (Public Law 96-422); or
``(4) an individual who lawfully resides in the United
States in accordance with a Compact of Free Association referred
to in section 402(b)(2)(G) of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996.
``(b) Application to Individuals Currently Entitled to or Enrolled
for Benefits.--
[[Page 139 STAT. 320]]
``(1) <<NOTE: Effective date. Time period.>> In general.--
In the case of an individual who is entitled to, or enrolled
for, benefits under this title as of the date of the enactment
of this section, subsection (a) shall apply beginning on the
date that is 18 months after such date of enactment.
``(2) Review by commissioner of social security.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than 1 year after the date of the enactment of this
section, the Commissioner of Social Security shall
complete a review of individuals entitled to, or
enrolled for, benefits under this title as of such date
of enactment for purposes of identifying individuals not
described in any of paragraphs (1) through (4) of
subsection (a).
``(B) <<NOTE: Termination date.>> Notice.--The
Commissioner of Social Security shall notify each
individual identified under the review conducted under
subparagraph (A) that such individual's entitlement to,
or enrollment for, benefits under this title will be
terminated as of the date that is 18 months after the
date of the enactment of this section. Such notification
shall be made as soon as practicable after such
identification and in a manner designed to ensure such
individual's comprehension of such notification.''.
Subchapter B--Improving Services for Seniors
SEC. 71202. TEMPORARY PAYMENT INCREASE UNDER THE MEDICARE
PHYSICIAN FEE SCHEDULE TO ACCOUNT FOR
EXCEPTIONAL CIRCUMSTANCES.
(a) In General.--Section 1848(t) of the Social Security Act (42
U.S.C. 1395w-4(t)) is amended--
(1) in the subsection heading, by striking ``During 2021
Through 2024'';
(2) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``and 2024'' and inserting ``2024, and 2026'';
(B) in subparagraph (D), by striking ``and'' at the
end;
(C) in subparagraph (E), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following new
subparagraph:
``(F) such services furnished on or after January 1,
2026, and before January 1, 2027, by 2.5 percent.''; and
(3) in paragraph (2)(C)--
(A) in the subparagraph heading, by inserting ``and
2026'' after ``2024''; and
(B) by striking ``or 2024'' each place it appears
and inserting ``2024, or 2026''.
(b) Conforming Amendment.--Section 1848(c)(2)(B)(iv)(V) of the
Social Security Act (42 U.S.C. 1395w-4(c)(2)(B)(iv)(V)) is amended by
striking ``or 2024'' and inserting ``2024, or 2026''.
SEC. 71203. EXPANDING AND CLARIFYING THE EXCLUSION FOR ORPHAN
DRUGS UNDER THE DRUG PRICE NEGOTIATION
PROGRAM.
(a) In General.--Section 1192(e) of the Social Security Act (42
U.S.C. 1320f-1(e)) is amended--
[[Page 139 STAT. 321]]
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``and (3)'' and inserting ``through (4)'';
(2) in paragraph (3)(A)--
(A) by striking ``only one rare disease or
condition'' and inserting ``one or more rare diseases or
conditions''; and
(B) by striking ``such disease or condition'' and
inserting ``one or more such rare diseases or conditions
(as such term is defined in section 526(a)(2) of the
Federal Food, Drug, and Cosmetic Act)''; and
(3) by adding at the end the following new paragraph:
``(4) <<NOTE: Applicability.>> Treatment of former orphan
drugs.--In the case of a drug or biological product that, as of
the date of the approval or licensure of such drug or biological
product, is a drug or biological product described in paragraph
(3)(A), paragraph (1)(A)(ii) or (1)(B)(ii) (as applicable) shall
apply as if the reference to `the date of such approval' or `the
date of such licensure', respectively, were instead a reference
to `the first day after the date of such approval for which such
drug is not a drug described in paragraph (3)(A)' or `the first
day after the date of such licensure for which such biological
product is not a biological product described in paragraph
(3)(A)', respectively.''.
(b) <<NOTE: 42 USC 1320f-1 note.>> Application.--The amendments
made by subsection (a) shall apply with respect to initial price
applicability years (as defined in section 1191(b) of the Social
Security Act (42 U.S.C. 1320f(b))) beginning on or after January 1,
2028.
CHAPTER 3--HEALTH TAX
Subchapter A--Improving Eligibility Criteria
SEC. 71301. PERMITTING PREMIUM TAX CREDIT ONLY FOR CERTAIN
INDIVIDUALS.
(a) In General.--Section 36B(e)(1) is amended by inserting ``or, in
the case of aliens who are lawfully present, are not eligible aliens''
after ``individuals who are not lawfully present''.
(b) Eligible Aliens.--Section 36B(e)(2) is amended--
(1) by striking ``For purposes of this section, an
individual'' and inserting ``For purposes of this section--
``(A) In general.--An individual'', and
(2) by adding at the end the following new subparagraph:
``(B) Eligible aliens.--An individual who is an
alien and lawfully present shall be treated as an
eligible alien if such individual is, and is reasonably
expected to be for the entire period of enrollment for
which the credit under this section is being claimed--
``(i) an alien who is lawfully admitted for
permanent residence under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.),
``(ii) an alien who has been granted the
status of Cuban and Haitian entrant, as defined in
section 501(e) of the Refugee Education Assistance
Act of 1980 (Public Law 96-422); or
``(iii) an individual who lawfully resides in
the United States in accordance with a Compact of
Free Association referred to in section
402(b)(2)(G) of the
[[Page 139 STAT. 322]]
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C.
1612(b)(2)(G)).''.
(c) Conforming Amendments.--
(1) Verification of information.--Section 1411 of the
Patient Protection and Affordable Care Act (42 U.S.C. 18081) is
amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``and
section 36B(e) of the Internal Revenue Code of
1986''; and
(ii) in paragraph (2)--
(I) in subparagraph (A), by striking
``and'' at the end;
(II) in subparagraph (B), by adding
``and'' at the end; and
(III) by adding at the end the
following new subparagraph:
``(C) in the case such individual is an alien
lawfully present in the United States, whether such
individual is an eligible alien (within the meaning of
section 36B(e)(2) of such Code);'';
(B) in subsection (b)(3), by adding at the end the
following new subparagraph:
``(D) Immigration status.--In the case the
individual's eligibility is based on an attestation of
the enrollee's immigration status, an attestation that
such individual is an eligible alien (within the meaning
of 36B(e)(2) of the Internal Revenue Code of 1986).'';
and
(C) in subsection (c)(2)(B)(ii), by adding at the
end the following new subclause:
``(III) In the case of an individual
described in clause (i)(I) with respect
to whom a premium tax credit under
section 36B of the Internal Revenue Code
of 1986 is being claimed, the
attestation that the individual is an
eligible alien (within the meaning of
section 36B(e)(2) of such Code).''.
(2) Advance determinations.--Section 1412(d) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18082(d)) is
amended by inserting before the period at the end the following:
``, or credits under section 36B of the Internal Revenue Code of
1986 for aliens who are not eligible aliens (within the meaning
of section 36B(e)(2) of such Code)''.
(3) <<NOTE: 42 USC 18081 note.>> Effective date.--The
amendments made by this subsection shall apply with respect to
plan years beginning on or after January 1, 2027.
(d) Requirement to Maintain Minimum Essential Coverage.--Section
5000A(d)(3) <<NOTE: 26 USC 5000A.>> is amended by striking ``an alien
lawfully present in the United States'' and inserting ``an eligible
alien (within the meaning of section 36B(e)(2))''.
(e) <<NOTE: 26 USC 36B note.>> Effective Date.--The amendments made
by this section (other than the amendments made by subsection (c)) shall
apply to taxable years beginning after December 31, 2026.
SEC. 71302. DISALLOWING PREMIUM TAX CREDIT DURING PERIODS OF
MEDICAID INELIGIBILITY DUE TO ALIEN
STATUS.
(a) In General.--Section 36B(c)(1) is amended by striking
subparagraph (B).
[[Page 139 STAT. 323]]
(b) <<NOTE: 26 USC 36B note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
Subchapter B--Preventing Waste, Fraud, and Abuse
SEC. 71303. REQUIRING VERIFICATION OF ELIGIBILITY FOR PREMIUM TAX
CREDIT.
(a) In General.--Section 36B(c) is amended by adding at the end the
following new paragraphs:
``(5) Exchange enrollment verification requirement.--
``(A) In general.--The term `coverage month' shall
not include, with respect to any individual covered by a
qualified health plan enrolled in through an Exchange,
any month beginning before the Exchange verifies, using
applicable enrollment information that shall be provided
or verified by the applicant, such individual's
eligibility--
``(i) to enroll in the plan through the
Exchange, and
``(ii) for any advance payment under section
1412 of the Patient Protection and Affordable Care
Act of the credit allowed under this section.
``(B) Applicable enrollment information.--For
purposes of subparagraph (A), applicable enrollment
information shall include affirmation of at least the
following information (to the extent relevant in
determining eligibility described in subparagraph (A)):
``(i) Household income and family size.
``(ii) Whether the individual is an eligible
alien.
``(iii) Any health coverage status or
eligibility for coverage.
``(iv) Place of residence.
``(v) Such other information as may be
determined by the Secretary (in consultation with
the Secretary of Health and Human Services) as
necessary to the verification prescribed under
subparagraph (A).
``(C) Verification of past months.--In the case of a
month that begins before verification prescribed by
subparagraph (A), such month shall be treated as a
coverage month if the Exchange verifies for such month
(using applicable enrollment information that shall be
provided or verified by the applicant) such individual's
eligibility to have so enrolled and for any such advance
payment.
``(D) Exchange participation; coordination with
other procedures for determining eligibility.--An
individual shall not, solely by reason of failing to
meet the requirements of this paragraph with respect to
a month, be treated for such month as ineligible to
enroll in a qualified health plan through an Exchange.
``(E) Waiver for certain special enrollment
periods.--The Secretary may waive the application of
subparagraph (A) in the case of an individual who
enrolls in a qualified health plan through an Exchange
for 1 or more months of the taxable year during a
special enrollment period provided by the Exchange on
the basis of a change in the family size of the
individual.
``(F) Information and reliance on third-party
sources.--An Exchange shall be permitted to use any
[[Page 139 STAT. 324]]
data available to the Exchange and any reliable third-
party sources in collecting information for verification
by the applicant.
``(6) Exchange compliance with filing requirements.--The
term <<NOTE: Applicability.>> `coverage month' shall not
include, with respect to any individual covered by a qualified
health plan enrolled in through an Exchange, any month for which
the Exchange does not meet the requirements of section
155.305(f)(4)(iii) of title 45, Code of Federal Regulations (as
published in the Federal Register on June 25, 2025 (90 Fed. Reg.
27074), applied as though it applied to all plan years after
2025), with respect to the individual.''.
(b) Pre-enrollment Verification Process Required.--Section
36B(c)(3)(A) is amended--
(1) by striking ``health plan.--The term'' and inserting
``health plan.-- ``
``(i) In general.--The term'', and
(2) by adding at the end the following new clause:
``(ii) Pre-enrollment verification process
required.--Such term shall not include any plan
enrolled in through an Exchange, unless such
Exchange provides a process for pre-enrollment
verification through which any applicant may,
beginning not later than August 1, verify with the
Exchange the applicant's household income and
eligibility for enrollment in such plan for plan
years beginning in the subsequent year.''.
(c) Effective Date. <<NOTE: 26 USC 36B note.>> --The amendments made
by this section shall apply to taxable years beginning after December
31, 2027.
SEC. 71304. DISALLOWING PREMIUM TAX CREDIT IN CASE OF CERTAIN
COVERAGE ENROLLED IN DURING SPECIAL
ENROLLMENT PERIOD.
(a) In General.--Section 36B(c)(3)(A), as amended by the preceding
provisions of this Act, is amended by adding at the end the following
new clause:
``(iii) Exception in case of certain special
enrollment periods.--Such term shall not include
any plan enrolled in during a special enrollment
period provided for by an Exchange--
``(I) on the basis of the
relationship of the individual's
expected household income to such a
percentage of the poverty line (or such
other amount) as is prescribed by the
Secretary of Health and Human Services
for purposes of such period, and
``(II) not in connection with the
occurrence of an event or change in
circumstances specified by the Secretary
of Health and Human Services for such
purposes.''.
(b) <<NOTE: 26 USC 36B note.>> Effective Date.--The amendments made
by this section shall apply with respect to plan years beginning after
December 31, 2025.
SEC. 71305. ELIMINATING LIMITATION ON RECAPTURE OF ADVANCE PAYMENT
OF PREMIUM TAX CREDIT.
(a) In General.--Section 36B(f)(2) is amended by striking
subparagraph (B).
[[Page 139 STAT. 325]]
(b) Conforming Amendments.--
(1) Section 36B(f)(2) is amended by striking ``advance
payments.--'' and all that follows through ``If the advance
payments'' and inserting the following: ``advance payments.--If
the advance payments''.
(2) Section 35(g)(12)(B)(ii) is amended by striking ``then
section 36B(f)(2)(B) shall be applied by substituting the amount
determined under clause (i) for the amount determined under
section 36B(f)(2)(A)'' and inserting ``then the amount
determined under clause (i) shall be substituted for the amount
determined under section 36B(f)(2)''.
(c) <<NOTE: 26 USC 35 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2025.
Subchapter C--Enhancing Choice for Patients
SEC. 71306. PERMANENT EXTENSION OF SAFE HARBOR FOR ABSENCE OF
DEDUCTIBLE FOR TELEHEALTH SERVICES.
(a) In General.--Subparagraph (E) of section 223(c)(2) is amended to
read as follows:
``(E) Safe harbor for absence of deductible for
telehealth.--A plan shall not fail to be treated as a
high deductible health plan by reason of failing to have
a deductible for telehealth and other remote care
services.''.
(b) Certain Coverage Disregarded.--Clause (ii) of section
223(c)(1)(B) is amended by striking ``(in the case of months or plan
years to which paragraph (2)(E) applies)''.
(c) <<NOTE: 26 USC 223 note.>> Effective Date.--The amendments made
by this section shall apply to plan years beginning after December 31,
2024.
SEC. 71307. ALLOWANCE OF BRONZE AND CATASTROPHIC PLANS IN
CONNECTION WITH HEALTH SAVINGS
ACCOUNTS.
(a) In General.--Section 223(c)(2) is amended by adding at the end
the following new subparagraph:
``(H) Bronze and catastrophic plans treated as high
deductible health plans.--The term `high deductible
health plan' shall include any plan which is--
``(i) available as individual coverage through
an Exchange established under section 1311 or 1321
of the Patient Protection and Affordable Care Act,
and
``(ii) described in subsection (d)(1)(A) or
(e) of section 1302 of such Act.''.
(b) <<NOTE: 26 USC 223 note.>> Effective Date.--The amendment made
by this section shall apply to months beginning after December 31, 2025.
SEC. 71308. TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENTS.
(a) In General.--Section 223(c)(1) is amended by adding at the end
the following new subparagraph:
``(E) Treatment of direct primary care service
arrangements.--
``(i) In general.--A direct primary care
service arrangement shall not be treated as a
health plan for purposes of subparagraph (A)(ii).
``(ii) Direct primary care service
arrangement.--For purposes of this subparagraph--
``(I) <<NOTE: Definition.>> In
general.--The term `direct primary care
service arrangement' means, with respect
to
[[Page 139 STAT. 326]]
any individual, an arrangement under
which such individual is provided
medical care (as defined in section
213(d)) consisting solely of primary
care services provided by primary care
practitioners (as defined in section
1833(x)(2)(A) of the Social Security
Act, determined without regard to clause
(ii) thereof), if the sole compensation
for such care is a fixed periodic fee.
``(II) Limitation.--With respect to
any individual for any month, such term
shall not include any arrangement if the
aggregate fees for all direct primary
care service arrangements (determined
without regard to this subclause) with
respect to such individual for such
month exceed $150 (twice such dollar
amount in the case of an individual with
any direct primary care service
arrangement (as so determined) that
covers more than one individual).
``(iii) Certain services specifically excluded
from treatment as primary care services.--For
purposes of this subparagraph, the term `primary
care services' shall not include--
``(I) procedures that require the
use of general anesthesia,
``(II) prescription drugs (other
than vaccines), and
``(III) laboratory services not
typically administered in an ambulatory
primary care setting.
The Secretary, <<NOTE: Regulations. Guidance.>>
after consultation with the Secretary of Health
and Human Services, shall issue regulations or
other guidance regarding the application of this
clause.''.
(b) Direct Primary Care Service Arrangement Fees Treated as Medical
Expenses.--Section 223(d)(2)(C) is amended by striking ``or'' at the end
of clause (iii), by striking the period at the end of clause (iv) and
inserting ``, or'', and by adding at the end the following new clause:
``(v) any direct primary care service
arrangement.''.
(c) Inflation Adjustment.--Section 223(g)(1) is amended--
(1) by striking ``in subsections (b)(2) and (c)(2)(A)'' and
inserting ``in subsections (b)(2), (c)(2)(A), and in the case of
taxable years beginning after 2026, (c)(1)(E)(ii)(II)'',
(2) in subparagraph (B), by striking ``clause (ii)'' in
clause (i) and inserting ``clauses (ii) and (iii)'', by striking
``and'' at the end of clause (i), by striking the period at the
end of clause (ii) and inserting ``, and'', and by inserting
after clause (ii) the following new clause:
``(iii) in the case of the dollar amount in
subsection (c)(1)(E)(ii)(II), `calendar year
2025'.'', and
(3) by inserting ``, (c)(1)(E)(ii)(II),'' after ``(b)(2)''
in the last sentence.
(d) <<NOTE: 26 USC 223 note.>> Effective Date.--The amendments made
by this section shall apply to months beginning after December 31, 2025.
[[Page 139 STAT. 327]]
CHAPTER 4--PROTECTING RURAL HOSPITALS AND PROVIDERS
SEC. 71401. <<NOTE: Time periods.>> RURAL HEALTH TRANSFORMATION
PROGRAM.
(a) In General.--Section 2105 of the Social Security Act (42 U.S.C.
1397ee) is amended by adding at the end the following new subsection:
``(h) Rural Health Transformation Program.--
``(1) Appropriation.--
``(A) In general.--There are appropriated, out of
any money in the Treasury not otherwise appropriated, to
the Administrator of the Centers for Medicare & Medicaid
Services (in this subsection referred to as the
`Administrator'), to provide allotments to States for
purposes of carrying out the activities described in
paragraph (6)--
``(i) $10,000,000,000 for fiscal year 2026;
``(ii) $10,000,000,000 for fiscal year 2027;
``(iii) $10,000,000,000 for fiscal year 2028;
``(iv) $10,000,000,000 for fiscal year 2029;
and
``(v) $10,000,000,000 for fiscal year 2030.
``(B) Unexpended or unobligated funds.--
``(i) <<NOTE: Effective date.>> In general.--
Any amounts appropriated under subparagraph (A)
that are unexpended or unobligated as of October
1, 2032, shall be returned to the Treasury of the
United States.
``(ii) Redistribution of unexpended or
unobligated
funds. <<NOTE: Deadline. Determination.>> --In
carrying out subparagraph (A), the Administrator
shall, not later than March 31, 2028, and annually
thereafter through March 31, 2032, determine the
amount of funds, if any, that are available under
such subparagraph for a previous fiscal year, are
unexpended or unobligated with respect to such
fiscal year, and will not be available to a State
in the current fiscal year, pursuant to clause
(iii).
``(iii) Availability of funds.--
``(I) In general.--Amounts allotted
to a State under this subsection for a
year shall be available for expenditure
by the State through the end of the
fiscal year following the fiscal year in
which such amounts are allotted.
``(II) Availability of amounts
redistributed.--Amounts redistributed to
a State under clause (ii) with respect
to a fiscal year shall be available for
expenditure by the State through the end
of the fiscal year following the fiscal
year in which such amounts are
redistributed (except in the case of
amounts redistributed in fiscal year
2032 which shall only be available for
expenditure through September 30, 2032).
``(iv) <<NOTE: Determination.>> Misuse of
funds.--If the Administrator determines that a
State is not using amounts allotted or
redistributed to the State under this subsection
in a manner consistent with the description
provided by the State in its application approved
under paragraph (2), the Administrator may
withhold payments to, or reduce payments to, or
recover previous payments from, the State under
this subsection as the
[[Page 139 STAT. 328]]
Administrator deems appropriate, and any amounts
so withheld, or that remain after any such
reduction, or so recovered, shall be returned to
the Treasury of the United States.
``(2) Application.--
``(A) <<NOTE: Deadline.>> In general.--To be
eligible for an allotment under this subsection, a State
shall submit to the Administrator during an application
submission period to be specified by the Administrator
(but that ends not later than December 31, 2025) an
application in such form and manner as the Administrator
may specify, that includes--
``(i) <<NOTE: Transformation plan.>> a
detailed rural health transformation plan--
``(I) to improve access to
hospitals, other health care providers,
and health care items and services
furnished to rural residents of the
State;
``(II) to improve health care
outcomes of rural residents of the
State;
``(III) to prioritize the use of new
and emerging technologies that emphasize
prevention and chronic disease
management;
``(IV) to initiate, foster, and
strengthen local and regional strategic
partnerships between rural hospitals and
other health care providers in order to
promote measurable quality improvement,
increase financial stability, maximize
economies of scale, and share best
practices in care delivery;
``(V) to enhance economic
opportunity for, and the supply of,
health care clinicians through enhanced
recruitment and training;
``(VI) to prioritize data and
technology driven solutions that help
rural hospitals and other rural health
care providers furnish high-quality
health care services as close to a
patient's home as is possible;
``(VII) that outlines strategies to
manage long-term financial solvency and
operating models of rural hospitals in
the State; and
``(VIII) that identifies specific
causes driving the accelerating rate of
stand-alone rural hospitals becoming at
risk of closure, conversion, or service
reduction;
``(ii) <<NOTE: Certification.>> a
certification that none of the amounts provided
under this subsection shall be used by the State
for an expenditure that is attributable to an
intergovernmental transfer, certified public
expenditure, or any other expenditure to finance
the non-Federal share of expenditures required
under any provision of law, including under the
State plan established under this title, the State
plan established under title XIX, or under a
waiver of such plans; and
``(iii) such other information as the
Administrator may require.
``(B) Deadline for approval.--Not later than
December 31, 2025, the Administrator shall approve or
deny all applications submitted for an allotment under
this subsection.
[[Page 139 STAT. 329]]
``(C) One-time application.--If an application of a
State for an allotment under this subsection is approved
by the Administrator, the State shall be eligible for an
allotment under this subsection for each of fiscal years
2026 through 2030, except as provided in paragraph
(1)(B)(iv).
``(D) Eligibility.--Only the 50 States shall be
eligible for an allotment under this subsection and all
references in this subsection to a State shall be
treated as only referring to the 50 States.
``(3) Allotments.--
``(A) <<NOTE: Determination.>> In general.--For
each of fiscal years 2026 through 2030, the
Administrator shall determine under subparagraph (B) the
amount of the allotment for such fiscal year for each
State with an approved application under this
subsection.
``(B) Amount determined.--Subject to subparagraph
(C), from the amounts appropriated under paragraph
(1)(A) for each of fiscal years 2026 through 2030, the
Administrator shall allot--
``(i) 50 percent of the amounts appropriated
for each such fiscal year equally among all States
with an approved application under this
subsection; and
``(ii) 50 percent of the amounts appropriated
for each such fiscal year among all such States in
an amount to be determined by the Administrator in
accordance with subparagraph (C).
``(C) <<NOTE: Determination.>> Requirements.--In
determining the amount to be allotted to a State under
clause (ii) of subparagraph (B) for a fiscal year, the
Administrator shall--
``(i) ensure that not less than \1/4\ of the
States with an approved application under this
subsection for a fiscal year are allotted funds
from amounts that are to be allotted under clause
(ii) of such subparagraph; and
``(ii) consider--
``(I) the percentage of the State
population that is located in a rural
census tract of a metropolitan
statistical area (as determined under
the most recent modification of the
Goldsmith Modification, originally
published in the Federal Register on
February 27, 1992 (57 Fed. Reg. 6725));
``(II) the proportion of rural
health facilities (as defined in
subparagraph (D)) in the State relative
to the number of rural health facilities
nationwide;
``(III) the situation of hospitals
in the State, as described in section
1902(a)(13)(A)(iv); and
``(IV) any other factors that the
Administrator determines appropriate.
``(D) Rural health facility defined.--For the
purposes of subparagraph (C)(ii), the term `rural health
facility' means the following:
``(i) A subsection (d) hospital (as defined in
paragraph (1)(B) of section 1886(d)) that--
``(I) is located in a rural area (as
defined in paragraph (2)(D) of such
section);
[[Page 139 STAT. 330]]
``(II) is treated as being located
in a rural area pursuant to paragraph
(8)(E) of such section; or
``(III) is located in a rural census
tract of a metropolitan statistical area
(as determined under the most recent
modification of the Goldsmith
Modification, originally published in
the Federal Register on February 27,
1992 (57 Fed. Reg. 6725)).
``(ii) A critical access hospital (as defined
in section 1861(mm)(1)).
``(iii) A sole community hospital (as defined
in section 1886(d)(5)(D)(iii)).
``(iv) A Medicare-dependent, small rural
hospital (as defined in section
1886(d)(5)(G)(iv)).
``(v) A low-volume hospital (as defined in
section 1886(d)(12)(C)).
``(vi) A rural emergency hospital (as defined
in section 1861(kkk)(2)).
``(vii) A rural health clinic (as defined in
section 1861(aa)(2)).
``(viii) A Federally qualified health center
(as defined in section 1861(aa)(4)).
``(ix) A community mental health center (as
defined in section 1861(ff)(3)(B)).
``(x) A health center that is receiving a
grant under section 330 of the Public Health
Service Act.
``(xi) An opioid treatment program (as defined
in section 1861(jjj)(2)) that is located in a
rural census tract of a metropolitan statistical
area (as determined under the most recent
modification of the Goldsmith Modification,
originally published in the Federal Register on
February 27, 1992 (57 Fed. Reg. 6725)).
``(xii) A certified community behavioral
health clinic (as defined in section 1905(jj)(2))
that is located in a rural census tract of a
metropolitan statistical area (as determined under
the most recent modification of the Goldsmith
Modification, originally published in the Federal
Register on February 27, 1992 (57 Fed. Reg.
6725)).
``(4) No matching payment.--A State approved for an
allotment under this subsection for a fiscal year shall not be
required to provide any matching funds as a condition for
receiving payments from the allotment.
``(5) Terms and conditions.--The Administrator shall specify
such terms and conditions for allotments to States provided
under this subsection as the Administrator deems appropriate,
including the following:
``(A) Each State shall submit to the Administrator
(at a time, and in a form and manner, specified by the
Administrator)--
``(i) <<NOTE: Plan.>> a plan for the State to
use its allotment to carry out 3 or more of the
activities described in paragraph (6); and
``(ii) <<NOTE: Reports.>> annual reports on
the use of allotments, including such additional
information as the Administrator determines
appropriate.
[[Page 139 STAT. 331]]
``(B) Not more than 10 percent of the amount
allotted to a State for a fiscal year may be used by the
State for administrative expenses.
``(6) Use of funds.--Amounts allotted to a State under this
subsection shall be used for 3 or more of the following health-
related activities:
``(A) Promoting evidence-based, measurable
interventions to improve prevention and chronic disease
management.
``(B) Providing payments to health care providers
for the provision of health care items or services, as
specified by the Administrator.
``(C) Promoting consumer-facing, technology-driven
solutions for the prevention and management of chronic
diseases.
``(D) Providing training and technical assistance
for the development and adoption of technology-enabled
solutions that improve care delivery in rural hospitals,
including remote monitoring, robotics, artificial
intelligence, and other advanced technologies.
``(E) Recruiting and retaining clinical workforce
talent to rural areas, with commitments to serve rural
communities for a minimum of 5 years.
``(F) Providing technical assistance, software, and
hardware for significant information technology advances
designed to improve efficiency, enhance cybersecurity
capability development, and improve patient health
outcomes.
``(G) Assisting rural communities to right size
their health care delivery systems by identifying needed
preventative, ambulatory, pre-hospital, emergency, acute
inpatient care, outpatient care, and post-acute care
service lines.
``(H) Supporting access to opioid use disorder
treatment services (as defined in section 1861(jjj)(1)),
other substance use disorder treatment services, and
mental health services.
``(I) Developing projects that support innovative
models of care that include value-based care
arrangements and alternative payment models, as
appropriate.
``(J) <<NOTE: Determination.>> Additional uses
designed to promote sustainable access to high quality
rural health care services, as determined by the
Administrator.
``(7) Exemptions.--Paragraphs (2), (3), (5), (6), (8), (10),
(11), and (12) of subsection (c) do not apply to payments under
this subsection.
``(8) Review.--There shall be no administrative or judicial
review under section 1116 or otherwise of amounts allotted or
redistributed to States under this subsection, payments to
States withheld or reduced under this subsection, or previous
payments recovered from States under this subsection.
``(9) Health care provider defined.--For purposes of this
subsection, the term `health care provider' means a provider of
services or supplier who is enrolled under this title, title
XVIII, or title XIX.''.
(b) Conforming Amendments.--Title XXI of the Social Security Act (42
U.S.C. 1397aa) is amended--
(1) in section 2101--
[[Page 139 STAT. 332]]
(A) in subsection (a), in the matter preceding
paragraph (1), by striking ``The purpose'' and inserting
``Except with respect to the rural health transformation
program established in section 2105(h), the purpose'';
and
(B) in subsection (b), in the matter preceding
paragraph (1), by inserting ``subsection (a) or (g) of''
before ``section 2105'';
(2) <<NOTE: 42 USC 1397ee.>> in section 2105(c)(1), by
striking ``and may not include'' and inserting ``or to carry out
the rural health transformation program established in
subsection (h) and, except in the case of amounts made available
under subsection (h), may not include''; and
(3) <<NOTE: 42 USC 1397ff.>> in section 2106(a)(1), by
inserting ``subsection (a) or (g) of'' before ``section 2105''.
(c) <<NOTE: 42 USC 1397aa note.>> Implementation.--The Administrator
of the Centers for Medicare & Medicaid Services shall implement this
section, including the amendments made by this section, by program
instruction or other forms of program guidance.
(d) Implementation Funding.--For the purposes of carrying out the
provisions of, and the amendments made by, this section, there are
appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Administrator of the Centers for Medicare &
Medicaid Services, $200,000,000 for fiscal year 2025, to remain
available until expended.
Subtitle C--Increase in Debt Limit
SEC. 72001. <<NOTE: 31 USC 3101 note.>> MODIFICATION OF
LIMITATION ON THE PUBLIC DEBT.
The limitation under section 3101(b) of title 31, United States
Code, as most recently increased by section 401(b) of Public Law 118-5
(31 U.S.C. 3101 note), is increased by $5,000,000,000,000.
Subtitle D--Unemployment
SEC. 73001. <<NOTE: 26 USC 3304 note.>> ENDING UNEMPLOYMENT
PAYMENTS TO JOBLESS MILLIONAIRES.
(a) Prohibition on Use of Federal Funds.--
(1) In general.--No Federal funds may be used--
(A) to make payments of unemployment compensation
benefits under an unemployment compensation program of
the United States in a year to an individual whose wages
during the individual's base period are equal to or
exceed $1,000,000; or
(B) for any administrative costs associated with
making payments described in subparagraph (A).
(2) Compliance.--
(A) <<NOTE: Procedure.>> Self-certification.--Any
application for unemployment compensation under an
unemployment compensation program of the United States
shall include a form or procedure for an individual
applicant to certify that such individual's wages during
the individual's base period do not equal or exceed
$1,000,000.
(B) Verification.--Each State agency that is
responsible for administering any unemployment
compensation program of the United States shall utilize
available systems
[[Page 139 STAT. 333]]
to verify wage eligibility by assessing claimant income
to the degree possible.
(3) Recovery of overpayments.--Each State agency that is
responsible for administering any unemployment compensation
program of the United States shall require individuals who have
received amounts of unemployment compensation under such a
program to which they were not entitled to repay such amounts.
(4) Effective date.--The prohibition under paragraph (1)
shall apply to weeks of unemployment beginning on or after the
date of the enactment of this Act.
(b) Unemployment Compensation Program of the United States
Defined.--In this section, the term ``unemployment compensation program
of the United States'' means--
(1) unemployment compensation for Federal civilian employees
under subchapter I of chapter 85 of title 5, United States Code;
(2) unemployment compensation for ex-servicemembers under
subchapter II of chapter 85 of title 5, United States Code;
(3) extended benefits under the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note);
(4) any Federal temporary extension of unemployment
compensation;
(5) any Federal program that increases the weekly amount of
unemployment compensation payable to individuals; and
(6) any other Federal program providing for the payment of
unemployment compensation, as determined by the Secretary of
Labor.
TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS
Subtitle A--Exemption of Certain Assets
SEC. 80001. EXEMPTION OF CERTAIN ASSETS.
(a) Exemption of Certain Assets.--Section 480(f)(2) of the Higher
Education Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended--
(1) by striking ``net value of the'' and inserting the
following: ``net value of--
``(A) the'';
(2) by striking the period at the end and inserting a
semicolon; and
(3) by adding at the end the following:
``(B) a family farm on which the family resides;
``(C) a small business with not more than 100 full-
time or full-time equivalent employees (or any part of
such a small business) that is owned and controlled by
the family; or
``(D) a commercial fishing business and related
expenses, including fishing vessels and permits owned
and controlled by the family.''.
(b) <<NOTE: Time period. 20 USC 1087vv note.>> Effective Date and
Application.--The amendments made by subsection (a) shall take effect on
July 1, 2026, and shall apply
[[Page 139 STAT. 334]]
with respect to award year 2026-2027 and each subsequent award year, as
determined under the Higher Education Act of 1965 (20 U.S.C. 1001 et
seq.).
Subtitle B--Loan Limits
SEC. 81001. <<NOTE: Effective dates.>> ESTABLISHMENT OF LOAN
LIMITS FOR GRADUATE AND PROFESSIONAL
STUDENTS AND PARENT BORROWERS;
TERMINATION OF GRADUATE AND
PROFESSIONAL PLUS LOANS.
Section 455(a) of the Higher Education Act of 1965 (20 U.S.C.
1087e(a)) is amended--
(1) in paragraph (3)--
(A) in the paragraph heading, by inserting ``and
federal direct plus loans'' after ``loans'';
(B) by striking subparagraph (A) and inserting the
following:
``(A) Termination of authority to make interest
subsidized loans to graduate and professional
students.--Subject to subparagraph (B), and
notwithstanding any provision of this part or part B--
``(i) for any period of instruction beginning
on or after July 1, 2012, a graduate or
professional student shall not be eligible to
receive a Federal Direct Stafford loan under this
part; and
``(ii) <<NOTE: Time period.>> for any period
of instruction beginning on July 1, 2012, and
ending on June 30, 2026, the maximum annual amount
of Federal Direct Unsubsidized Stafford loans such
a student may borrow in any academic year (as
defined in section 481(a)(2)) or its equivalent
shall be the maximum annual amount for such
student determined under section 428H, plus an
amount equal to the amount of Federal Direct
Stafford loans the student would have received in
the absence of this subparagraph.''; and
(C) by adding at the end the following:
``(C) Termination of authority to make federal
direct plus loans to graduate and professional
students.--Subject to paragraph (8) and notwithstanding
any provision of this part or part B, for any period of
instruction beginning on or after July 1, 2026, a
graduate or professional student shall not be eligible
to receive a Federal Direct PLUS Loan under this
part.''; and
(2) by adding at the end the following:
``(4) Graduate and professional annual and aggregate limits
for federal direct unsubsidized stafford loans beginning july 1,
2026.--
``(A) Annual limits beginning july 1, 2026.--Subject
to paragraphs (7)(A) and (8), beginning on July 1, 2026,
the maximum annual amount of Federal Direct Unsubsidized
Stafford loans--
``(i) a graduate student, who is not a
professional student, may borrow in any academic
year or its equivalent shall be $20,500; and
``(ii) a professional student may borrow in
any academic year or its equivalent shall be
$50,000.
[[Page 139 STAT. 335]]
``(B) Aggregate limits.--Subject to paragraphs (6),
(7)(A), and (8), beginning on July 1, 2026, the maximum
aggregate amount of Federal Direct Unsubsidized Stafford
loans, in addition to the amount borrowed for
undergraduate education, that--
``(i) a graduate student--
``(I) who is not (and has not been)
a professional student, may borrow for
programs of study described in
subparagraph (C)(i) shall be $100,000;
or
``(II) who is (or has been) a
professional student, may borrow for
programs of study described in
subparagraph (C)(i) shall be an amount
equal to--
``(aa) $200,000; minus
``(bb) the amount such
student borrowed for programs of
study described in subparagraph
(C)(ii); and
``(ii) a professional student--
``(I) who is not (and has not been)
a graduate student, may borrow for
programs of study described in
subparagraph (C)(ii) shall be $200,000;
or
``(II) who is (or has been) a
graduate student, may borrow for
programs of study described in
subparagraph (C)(ii) shall be an amount
equal to--
``(aa) $200,000; minus
``(bb) the amount such
student borrowed for programs of
study described in subparagraph
(C)(i).
``(C) Definitions.--
``(i) Graduate student.--The term `graduate
student' means a student enrolled in a program of
study that awards a graduate credential (other
than a professional degree) upon completion of the
program.
``(ii) Professional student.--In this
paragraph, the term `professional student' means a
student enrolled in a program of study that awards
a professional degree, as defined under section
668.2 of title 34, Code of Federal Regulations (as
in effect on the date of enactment of this
paragraph), upon completion of the program.
``(5) Parent borrower annual and aggregate limits for
federal direct plus loans beginning july 1, 2026.--
``(A) Annual limits.--Subject to paragraph (8) and
notwithstanding any provision of this part or part B,
beginning on July 1, 2026, for each dependent student,
the total maximum annual amount of Federal Direct PLUS
loans that may be borrowed on behalf of that dependent
student by all parents of that dependent student shall
be $20,000.
``(B) Aggregate limits.--Subject to paragraph (8)
and notwithstanding any provision of this part or part
B, beginning on July 1, 2026, for each dependent
student, the total maximum aggregate amount of Federal
Direct PLUS loans that may be borrowed on behalf of that
dependent student by all parents of that dependent
student shall
[[Page 139 STAT. 336]]
be $65,000, without regard to any amounts repaid,
forgiven, canceled, or otherwise discharged on any such
loan.
``(6) Lifetime maximum aggregate amount for all students.--
Subject to paragraph (8) and notwithstanding any provision of
this part or part B, beginning on July 1, 2026, the maximum
aggregate amount of loans made, insured, or guaranteed under
this title that a student may borrow (other than a Federal
Direct PLUS loan, or loan under section 428B, made to the
student as a parent borrower on behalf of a dependent student)
shall be $257,500, without regard to any amounts repaid,
forgiven, canceled, or otherwise discharged on any such loan.
``(7) Additional rules regarding annual loan limits.--
``(A) <<NOTE: Reduction. Publication.>> Less than
full-time enrollment.--Notwithstanding any provision of
this part or part B, in any case in which a student is
enrolled in a program of study of an institution of
higher education on less than a full-time basis during
any academic year, the amount of a loan that student may
borrow for an academic year or its equivalent shall be
reduced in direct proportion to the degree to which that
student is not so enrolled on a full-time basis, rounded
to the nearest whole percentage point, as provided in a
schedule of reductions published by the Secretary
computed for purposes of this subparagraph.
``(B) Institutionally determined limits.--
Notwithstanding the annual loan limits established under
this section and, for undergraduate students, under this
part and part B, beginning on July 1, 2026, an
institution of higher education (at the discretion of a
financial aid administrator at the institution) may
limit the total amount of loans made under this part for
a program of study for an academic year that a student
may borrow, and that a parent may borrow on behalf of
such student, as long as any such limit is applied
consistently to all students enrolled in such program of
study.
``(8) Interim exception for certain students.--
``(A) <<NOTE: Deadline.>> Application of prior
limits.--Paragraphs (3)(C), (4), (5), and (6) shall not
apply, and paragraph (3)(A)(ii) shall apply as such
paragraph was in effect for periods of instruction
ending before June 30, 2026, during the expected time to
credential described in subparagraph (B), with respect
to an individual who, as of June 30, 2026--
``(i) is enrolled in a program of study at an
institution of higher education; and
``(ii) has received a loan (or on whose behalf
a loan was made) under this part for such program
of study.
``(B) Expected time to credential.--For purposes of
this paragraph, the expected time to credential of an
individual shall be equal to the lesser of--
``(i) three academic years; or
``(ii) the period determined by calculating
the difference between--
``(I) the program length for the
program of study in which the individual
is enrolled; and
[[Page 139 STAT. 337]]
``(II) the period of such program of
study that such individual has completed
as of the date of the determination
under this subparagraph.
``(C) Definition of program length.--In this
paragraph, the term `program length' means the minimum
amount of time in weeks, months, or years that is
specified in the catalog, marketing materials, or other
official publications of an institution of higher
education for a full-time student to complete the
requirements for a specific program of study.''.
Subtitle C--Loan Repayment
SEC. 82001. LOAN REPAYMENT.
(a) <<NOTE: 20 USC 1087e note.>> Transition to Income-based
Repayment Plans.--
(1) <<NOTE: Deadline.>> Selection.--The Secretary of
Education shall take such steps as may be necessary to ensure
that before July 1, 2028, each borrower who has one or more
loans that are in a repayment status in accordance with, or an
administrative forbearance associated with, an income contingent
repayment plan authorized under section 455(e) of the Higher
Education Act of 1965 (referred to in this subsection as
``covered income contingent loans'') selects one of the
following income-based repayment plans that is otherwise
applicable, and for which that borrower is otherwise eligible,
for the repayment of the covered income contingent loans of the
borrower:
(A) The Repayment Assistance Plan under section
455(q) of the Higher Education Act of 1965.
(B) The income-based repayment plan under section
493C of the Higher Education Act of 1965.
(C) Any other repayment plan as authorized under
section 455(d)(1) of the Higher Education Act of 1965.
(2) Commencement of new repayment plan.--Beginning on July
1, 2028, a borrower described in paragraph (1) shall begin
repaying the covered income contingent loans of the borrower in
accordance with the repayment plan selected under paragraph (1),
unless the borrower chooses to begin repaying in accordance with
the repayment plan selected under paragraph (1) before such
date.
(3) Failure to select.--In the case of a borrower described
in paragraph (1) who fails to select a repayment plan in
accordance with such paragraph, the Secretary of Education
shall--
(A) enroll the covered income contingent loans of
such borrower in--
(i) the Repayment Assistance Plan under
section 455(q) of the Higher Education Act of 1965
with respect to loans that are eligible for the
Repayment Assistance Plan under such subsection;
or
(ii) the income-based repayment plan under
section 493C of such Act, with respect to loans
that are not eligible for the Repayment Assistance
Plan; and
(B) <<NOTE: Effective date.>> require the borrower
to begin repaying covered income contingent loans
according to the plans under subparagraph (A) on July 1,
2028.
(b) Repayment Plans.--Section 455(d) of the Higher Education Act of
1965 (20 U.S.C. 1087e(d)) is amended--
[[Page 139 STAT. 338]]
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
inserting ``before July 1, 2026, who has not received a
loan made under this part on or after July 1, 2026,''
after ``made under this part'';
(B) in subparagraph (D)--
(i) by inserting ``before June 30, 2028,''
before ``an income contingent repayment plan'';
and
(ii) by striking ``and'' after the semicolon;
(C) in subparagraph (E)--
(i) by striking ``that enables borrowers who
have a partial financial hardship to make a lower
monthly payment'';
(ii) by striking ``a Federal Direct
Consolidation Loan, if the proceeds of such loan
were used to discharge the liability on such
Federal Direct PLUS Loan or a loan under section
428B made on behalf of a dependent student'' and
inserting ``an excepted Consolidation Loan (as
defined in section 493C(a)(2))''; and
(iii) by striking the period at the end and
inserting ``; and''; and
(D) by adding at the end the following:
``(F) <<NOTE: Effective date.>> beginning on July
1, 2026, the income-based Repayment Assistance Plan
under subsection (q), provided that--
``(i) such Plan shall not be available for the
repayment of excepted loans (as defined in
paragraph (7)(E)); and
``(ii) the borrower is required to pay each
outstanding loan of the borrower made under this
part under such Repayment Assistance Plan, except
that a borrower of an excepted loan (as defined in
paragraph (7)(E)) may repay the excepted loan
separately from other loans under this part
obtained by the borrower.'';
(2) in paragraph (5), by amending subparagraph (B) to read
as follows:
``(B) repay the loan pursuant to an income-based
repayment plan under subsection (q) or section 493C, as
applicable.''; and
(3) by adding at the end the following:
``(6) Termination and limitation of repayment authority.--
``(A) Sunset of repayment plans available before
july 1, 2026. <<NOTE: Applicability.>> --Paragraphs (1)
through (4) of this subsection shall only apply to loans
made under this part before July 1, 2026.
``(B) Prohibitions.--The Secretary may not, for any
loan made under this part on or after July 1, 2026--
``(i) authorize a borrower of such a loan to
repay such loan pursuant to a repayment plan that
is not described in paragraph (7)(A); or
``(ii) carry out or modify a repayment plan
that is not described in such paragraph.
``(7) <<NOTE: Effective date.>> Repayment plans for loans
made on or after july 1, 2026.--
``(A) Design and selection.--Beginning on July 1,
2026, the Secretary shall offer a borrower of a loan
made
[[Page 139 STAT. 339]]
under this part on or after such date (including such a
borrower who also has a loan made under this part before
such date) two plans for repayment of the borrower's
loans under this part, including principal and interest
on such loans. The borrower shall be entitled to
accelerate, without penalty, repayment on such loans.
The borrower may choose--
``(i) a standard repayment plan--
``(I) with a fixed monthly repayment
amount paid over a fixed period of time
equal to the applicable period
determined under subclause (II); and
``(II) <<NOTE: Time periods.>> with
the applicable period of time for
repayment determined based on the total
outstanding principal of all loans of
the borrower made under this part
before, on, or after July 1, 2026, at
the time the borrower is entering
repayment under such plan, as follows--
``(aa) for a borrower with
total outstanding principal of
less than $25,000, a period of
10 years;
``(bb) for a borrower with
total outstanding principal of
not less than $25,000 and less
than $50,000, a period of 15
years;
``(cc) for a borrower with
total outstanding principal of
not less than $50,000 and less
than $100,000, a period of 20
years; and
``(dd) for a borrower with
total outstanding principal of
$100,000 or more, a period of 25
years; or
``(ii) the income-based Repayment Assistance
Plan under subsection (q).
``(B) Selection by secretary.--If a borrower of a
loan made under this part on or after July 1, 2026, does
not select a repayment plan described in subparagraph
(A), the Secretary shall provide the borrower with the
standard repayment plan described in subparagraph
(A)(i).
``(C) Selection applies to all outstanding loans.--A
borrower is required to pay each outstanding loan of the
borrower made under this part under the same selected
repayment plan, except that a borrower who selects the
Repayment Assistance Plan and also has an excepted loan
that is not eligible for repayment under such Repayment
Assistance Plan shall repay the excepted loan separately
from other loans under this part obtained by the
borrower.
``(D) Changes of repayment plan.--A borrower may
change the borrower's selection of--
``(i) the standard repayment plan under
subparagraph (A)(i), or the Secretary's selection
of such plan for the borrower under subparagraph
(B), as the case may be, to the Repayment
Assistance Plan under subparagraph (A)(ii) at any
time; and
``(ii) the Repayment Assistance Plan under
subparagraph (A)(ii) to the standard repayment
plan under subparagraph (A)(i) at any time.
``(E) Repayment for borrowers with excepted loans
made on or after july 1, 2026.--
[[Page 139 STAT. 340]]
``(i) Standard repayment plan required.--
Notwithstanding subparagraphs (A) through (D),
beginning on July 1, 2026, the Secretary shall
require a borrower who has received an excepted
loan made on or after such date (including such a
borrower who also has an excepted loan made before
such date) to repay each excepted loan, including
principal and interest on those excepted loans,
under the standard repayment plan under
subparagraph (A)(i). The borrower shall be
entitled to accelerate, without penalty, repayment
on such loans.
``(ii) Excepted loan defined.--For the
purposes of this paragraph, the term `excepted
loan' means a loan with an outstanding balance
that is--
``(I) a Federal Direct PLUS Loan
that is made on behalf of a dependent
student; or
``(II) a Federal Direct
Consolidation Loan, if the proceeds of
such loan were used to discharge the
liability on--
``(aa) an excepted PLUS
loan, as defined in section
493C(a)(1); or
``(bb) an excepted
consolidation loan (as such term
is defined in section
493C(a)(2)(A), notwithstanding
subparagraph (B) of such
section).''.
(c) Elimination of Authority to Provide Income Contingent Repayment
Plans.--
(1) Repeal.--Subsection (e) of section 455 of the Higher
Education Act of 1965 (20 U.S.C. 1087e(e)) is repealed.
(2) Further amendments to eliminate income contingent
repayment.--
(A) Section 428 of the Higher Education Act of 1965
(20 U.S.C. 1078) is amended--
(i) in subsection (b)(1)(D), by striking ``be
subject to income contingent repayment in
accordance with subsection (m)'' and inserting
``be subject to income-based repayment in
accordance with subsection (m)''; and
(ii) in subsection (m)--
(I) in the subsection heading, by
striking ``Income Contingent and'';
(II) by amending paragraph (1) to
read as follows:
``(1) Authority of secretary to require.--The Secretary may
require borrowers who have defaulted on loans made under this
part that are assigned to the Secretary under subsection (c)(8)
to repay those loans pursuant to an income-based repayment plan
under section 493C.''; and
(III) in the heading of paragraph
(2), by striking ``income contingent
or''.
(B) Section 428C of the Higher Education Act of 1965
(20 U.S.C. 1078-3) is amended--
(i) in subsection (a)(3)(B)(i)(V)(aa), by
striking ``for the purposes of obtaining income
contingent repayment or income-based repayment''
and inserting ``for the purposes of qualifying for
an income-based repayment plan under section
455(q) or section 493C, as applicable'';
[[Page 139 STAT. 341]]
(ii) in subsection (b)(5), by striking ``be
repaid either pursuant to income contingent
repayment under part D of this title, pursuant to
income-based repayment under section 493C, or
pursuant to any other repayment provision under
this section'' and inserting ``be repaid pursuant
to an income-based repayment plan under section
493C or any other repayment provision under this
section''; and
(iii) in subsection (c)--
(I) in paragraph (2)(A), by striking
``or by the terms of repayment pursuant
to income contingent repayment offered
by the Secretary under subsection
(b)(5)'' and inserting ``or by the terms
of repayment pursuant to an income-based
repayment plan under section 493C''; and
(II) in paragraph (3)(B), by
striking ``except as required by the
terms of repayment pursuant to income
contingent repayment offered by the
Secretary under subsection (b)(5)'' and
inserting ``except as required by the
terms of repayment pursuant to an
income-based repayment plan under
section 493C''.
(C) Section 485(d)(1) of the Higher Education Act of
1965 (20 U.S.C. 1092(d)(1)) is amended by striking
``income-contingent and''.
(D) Section 494(a)(2) of the Higher Education Act of
1965 (20 U.S.C. 1098h(a)(2)) is amended--
(i) in the paragraph heading, by striking
``Income-contingent and income-based'' and
inserting ``Income-based''; and
(ii) in subparagraph (A)--
(I) in the matter preceding clause
(i), by striking ``income-contingent
or''; and
(II) in clause (ii)(I), by striking
``section 455(e)(8) or the equivalent
procedures established under section
493C(c)(2)(B), as applicable'' and
inserting ``section 493C(c)(2)''.
(3) <<NOTE: 20 USC 1078 note.>> Effective date.--The
amendments made by this subsection shall take effect on July 1,
2028.
(d) Repayment Assistance Plan.--Section 455 of the Higher Education
Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the
following new subsection:
``(q) Repayment Assistance Plan.--
``(1) <<NOTE: Effective date.>> In general.--
Notwithstanding any other provision of this Act, beginning on
July 1, 2026, the Secretary shall carry out an income-based
repayment plan (to be known as the `Repayment Assistance Plan'),
that shall have the following terms and conditions:
``(A) The total monthly repayment amount owed by a
borrower for all of the loans of the borrower that are
repaid pursuant to the Repayment Assistance Plan shall
be equal to the applicable monthly payment of a borrower
calculated under paragraph (4)(B), except that the
borrower may not be precluded from repaying an amount
that exceeds such amount for any month.
``(B) <<NOTE: Applicability.>> The Secretary shall
apply the borrower's applicable monthly payment under
this paragraph first toward
[[Page 139 STAT. 342]]
interest due on each such loan, next toward any fees due
on each loan, and then toward the principal of each
loan.
``(C) <<NOTE: Deferment.>> Any principal due and
not paid under subparagraph (B) or paragraph (2)(B)
shall be deferred.
``(D) <<NOTE: Applicability. Time period.>> A
borrower who is not in a period of deferment or
forbearance shall make an applicable monthly payment for
each month until the earlier of--
``(i) the date on which the outstanding
balance of principal and interest due on all of
the loans of the borrower that are repaid pursuant
to the Repayment Assistance Plan is $0; or
``(ii) the date on which the borrower has made
360 qualifying monthly payments.
``(E) <<NOTE: Cancellation.>> The Secretary shall
cancel any outstanding balance of principal and interest
due on a loan made under this part to a borrower--
``(i) who, for any period of time,
participated in the Repayment Assistance Plan
under this subsection;
``(ii) whose most recent payment for such loan
prior to the loan cancellation under this
subparagraph was made under such Repayment
Assistance Plan; and
``(iii) <<NOTE: Time period.>> who has made
360 qualifying monthly payments on such loan.
``(F) <<NOTE: Definition.>> For the purposes of
this subsection, the term `qualifying monthly payment'
means any of the following:
``(i) An on-time applicable monthly payment
under this subsection.
``(ii) An on-time monthly payment under the
standard repayment plan under subsection
(d)(7)(A)(i) of not less than the monthly payment
required under such plan.
``(iii) A monthly payment under any repayment
plan (excluding the Repayment Assistance Plan
under this subsection) of not less than the
monthly payment that would be required under a
standard repayment plan under section 455(d)(1)(A)
with a repayment period of 10 years.
``(iv) A monthly payment under section 493C of
not less than the monthly payment required under
such section, including a monthly payment equal to
the minimum payment amount permitted under such
section.
``(v) A monthly payment made before July 1,
2028, under an income contingent repayment plan
carried out under section 455(d)(1)(D) (or under
an alternative repayment plan in lieu of repayment
under such an income contingent repayment plan, if
placed in such an alternative repayment plan by
the Secretary) of not less than the monthly
payment required under such a plan, including a
monthly payment equal to the minimum payment
amount permitted under such a plan.
``(vi) A month when the borrower did not make
a payment because the borrower was in deferment
under subsection (f)(2)(B) or due to an economic
hardship described in subsection (f)(2)(D).
[[Page 139 STAT. 343]]
``(vii) A month that ended before the date of
enactment of this subsection when the borrower did
not make a payment because the borrower was in a
period of deferment or forbearance described in
section 685.209(k)(4)(iv) of title 34, Code of
Federal Regulations (as in effect on the date of
enactment of this subsection).
``(G) <<NOTE: Applicability. Time
period. Determination.>> The procedures established by
the Secretary under section 493C(c) shall apply for
annually determining the borrower's eligibility for the
Repayment Assistance Plan, including verification of a
borrower's annual income and the annual amount due on
the total amount of loans eligible to be repaid under
this subsection, and such other procedures as are
necessary to effectively implement income-based
repayment under this subsection. With respect to
carrying out section 494(a)(2) for the Repayment
Assistance Plan, an individual may elect to opt out of
the disclosures required under section 494(a)(2)(A)(ii)
in accordance with the procedures established under
section 493C(c)(2).
``(2) Balance assistance for distressed borrowers.--
``(A) Interest subsidy.--With respect to a borrower
of a loan made under this part, for each month for which
such a borrower makes an on-time applicable monthly
payment required under paragraph (1)(A) and such monthly
payment is insufficient to pay the total amount of
interest that accrues for the month on all loans of the
borrower repaid pursuant to the Repayment Assistance
Plan under this subsection, the amount of interest
accrued and not paid for the month shall not be charged
to the borrower.
``(B) <<NOTE: Reduction.>> Matching principal
payment.--With respect to a borrower of a loan made
under this part and not in a period of deferment or
forbearance, for each month for which a borrower makes
an on-time applicable monthly payment required under
paragraph (1)(A) and such monthly payment reduces the
total outstanding principal balance of all loans of the
borrower repaid pursuant to the Repayment Assistance
Plan under this subsection by less than $50, the
Secretary shall reduce such total outstanding principal
balance of the borrower by an amount that is equal to--
``(i) the amount that is the lesser of--
``(I) $50; or
``(II) the total amount paid by the
borrower for such month pursuant to
paragraph (1)(A); minus
``(ii) <<NOTE: Applicability.>> the total
amount paid by the borrower for such month
pursuant to paragraph (1)(A) that is applied to
such total outstanding principal balance.
``(3) Additional documents.--A borrower who chooses, or is
required, to repay a loan under this subsection, and for whom
adjusted gross income is unavailable or does not reasonably
reflect the borrower's current income, shall provide to the
Secretary other documentation of income satisfactory to the
Secretary, which documentation the Secretary may use to
determine repayment under this subsection.
``(4) Definitions.--In this subsection:
[[Page 139 STAT. 344]]
``(A) Adjusted gross income.--The term `adjusted
gross income', when used with respect to a borrower,
means the adjusted gross income (as such term is defined
in section 62 of the Internal Revenue Code of 1986) of
the borrower (and the borrower's spouse, as applicable)
for the most recent taxable year, except that, in the
case of a married borrower who files a separate Federal
income tax return, the term does not include the
adjusted gross income of the borrower's spouse.
``(B) Applicable monthly payment.--
``(i) In general.--Except as provided in
clause (ii), (iii), or (vi), the term `applicable
monthly payment' means, when used with respect to
a borrower, the amount equal to--
``(I) the applicable base payment of
the borrower, divided by 12; minus
``(II) $50 for each dependent of the
borrower (which, in the case of a
married borrower filing a separate
Federal income tax return, shall include
only each dependent that the borrower
claims on that return).
``(ii) Minimum amount.--In the case of a
borrower with an applicable monthly payment amount
calculated under clause (i) that is less than $10,
the applicable monthly payment of the borrower
shall be $10.
``(iii) Final payment.--In the case of a
borrower whose total outstanding balance of
principal and interest on all of the loans of the
borrower that are repaid pursuant to the Repayment
Assistance Plan is less than the applicable
monthly payment calculated pursuant to clause (i)
or (ii), as applicable, then the applicable
monthly payment of the borrower shall be the total
outstanding balance of principal and interest on
all such loans.
``(iv) Base payment.--The amount of the
applicable base payment for a borrower with an
adjusted gross income of--
``(I) not more than $10,000, is
$120;
``(II) more than $10,000 and not
more than $20,000, is 1 percent of such
adjusted gross income;
``(III) more than $20,000 and not
more than $30,000, is 2 percent of such
adjusted gross income;
``(IV) more than $30,000 and not
more than $40,000, is 3 percent of such
adjusted gross income;
``(V) more than $40,000 and not more
than $50,000, is 4 percent of such
adjusted gross income;
``(VI) more than $50,000 and not
more than $60,000, is 5 percent of such
adjusted gross income;
``(VII) more than $60,000 and not
more than $70,000, is 6 percent of such
adjusted gross income;
``(VIII) more than $70,000 and not
more than $80,000, is 7 percent of such
adjusted gross income;
``(IX) more than $80,000 and not
more than $90,000, is 8 percent of such
adjusted gross income;
``(X) more than $90,000 and not more
than $100,000, is 9 percent of such
adjusted gross income; and
[[Page 139 STAT. 345]]
``(XI) more than $100,000, is 10
percent of such adjusted gross income.
``(v) Dependent.--For the purposes of this
paragraph, the term `dependent' means an
individual who is a dependent under section 152 of
the Internal Revenue Code of 1986.
``(vi) Special rule.--In the case of a
borrower who is required by the Secretary to
provide information to the Secretary to determine
the applicable monthly payment of the borrower
under this subparagraph, and who does not comply
with such requirement, the applicable monthly
payment of the borrower shall be--
``(I) <<NOTE: Time period.>> the
sum of the monthly payment amounts the
borrower would have paid for each of the
borrower's loans made under this part
under a standard repayment plan with a
fixed monthly repayment amount, paid
over a period of 10 years, based on the
outstanding principal due on such loan
when such loan entered repayment; and
``(II) determined pursuant to this
clause until the date on which the
borrower provides such information to
the Secretary.''.
(e) Federal Consolidation Loans.--Section 455(g) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(g)) is amended by adding at the
end the following new paragraph:
``(3) <<NOTE: Effective date.>> Consolidation loans made on
or after july 1, 2026.-- <<NOTE: Determination.>> A Federal
Direct Consolidation Loan offered to a borrower under this part
on or after July 1, 2026, may only be repaid pursuant to a
repayment plan described in clause (i) or (ii) of subsection
(d)(7)(A) of this section, as applicable, and the repayment
schedule of such a Consolidation Loan shall be determined in
accordance with such repayment plan.''.
(f) Income-Based Repayment.--
(1) Amendments.--
(A) Excepted consolidation loan defined.--Section
493C(a)(2) of the Higher Education Act of 1965 (20
U.S.C. 1098e(a)(2)) is amended to read as follows:
``(2) Excepted consolidation loan.--
``(A) In general.--The term `excepted consolidation
loan' means--
``(i) a consolidation loan under section 428C,
or a Federal Direct Consolidation Loan, if the
proceeds of such loan were used to discharge the
liability on an excepted PLUS loan; or
``(ii) a consolidation loan under section
428C, or a Federal Direct Consolidation Loan, if
the proceeds of such loan were used to discharge
the liability on a consolidation loan under
section 428C, or a Federal Direct Consolidation
Loan described in clause (i).
``(B) <<NOTE: Time period.>> Exclusion.--The term
`excepted consolidation loan' does not include a Federal
Direct Consolidation Loan described in subparagraph (A)
that, on any date during the period beginning on the
date of enactment of this subparagraph and ending on
June 30, 2028, was being repaid--
``(i) pursuant to the Income Contingent
Repayment (ICR) plan in accordance with section
685.209(b) of
[[Page 139 STAT. 346]]
title 34, Code of Federal Regulations (as in
effect on June 30, 2023); or
``(ii) pursuant to another income driven
repayment plan.''.
(B) Termination of partial financial hardship
eligibility.--Section 493C(a)(3) of the Higher Education
Act of 1965 (20 U.S.C. 1098e(a)(3)) is amended to read
as follows:
``(3) <<NOTE: Definition.>> Applicable amount.--The term
`applicable amount' means 15 percent of the result obtained by
calculating, on at least an annual basis, the amount by which--
``(A) the borrower's, and the borrower's spouse's
(if applicable), adjusted gross income; exceeds
``(B) 150 percent of the poverty line applicable to
the borrower's family size as determined under section
673(2) of the Community Services Block Grant Act (42
U.S.C. 9902(2)).''.
(C) Terms of income-based repayment.--Section
493C(b) of the Higher Education Act of 1965 (20 U.S.C.
1098e(b)) is amended--
(i) by amending paragraph (1) to read as
follows:
``(1) a borrower of any loan made, insured, or guaranteed
under part B or D (other than an excepted PLUS loan or excepted
consolidation loan), may elect to have the borrower's aggregate
monthly payment for all such loans not exceed the applicable
amount divided by 12;'';
(ii) by striking paragraph (6) and inserting
the following:
``(6) <<NOTE: Time period.>> if the monthly payment amount
calculated under this section for all loans made to the borrower
under part B or D (other than an excepted PLUS loan or excepted
consolidation loan) exceeds the monthly amount calculated under
section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year
repayment period, when the borrower first made the election
described in this subsection (referred to in this paragraph as
the `standard monthly repayment amount'), or if the borrower no
longer wishes to continue the election under this subsection,
then--
``(A) the maximum monthly payment required to be
paid for all loans made to the borrower under part B or
D (other than an excepted PLUS loan or excepted
consolidation loan) shall be the standard monthly
repayment amount; and
``(B) the amount of time the borrower is permitted
to repay such loans may exceed 10 years;'';
(iii) in paragraph (7)(B)(iv), by inserting
``(as such section was in effect on the day before
the date of the repeal of section 455(e)'' after
``section 455(d)(1)(D)''; and
(iv) in paragraph (8), by inserting ``or the
Repayment Assistance Program under section
455(q)'' after ``standard repayment plan''.
(D) Eligibility determinations.--Section 493C(c) of
the Higher Education Act of 1965 (20 U.S.C. 1098e(c)) is
amended to read as follows:
``(c) <<NOTE: Procedures.>> Eligibility Determinations; Automatic
Recertification.--
[[Page 139 STAT. 347]]
``(1) <<NOTE: Time period.>> In general.--The Secretary
shall establish procedures for annually determining, in
accordance with paragraph (2), the borrower's eligibility for
income-based repayment, including the verification of a
borrower's annual income and the annual amount due on the total
amount of loans made, insured, or guaranteed under part B or D
(other than an excepted PLUS loan or excepted consolidation
loan), and such other procedures as are necessary to effectively
implement income-based repayment under this section. The
Secretary shall consider, but is not limited to, the procedures
established in accordance with section 455(e)(1) (as in effect
on the day before the date of repeal of subsection (e) of
section 455) or in connection with income sensitive repayment
schedules under section 428(b)(9)(A)(iii) or 428C(b)(1)(E).
``(2) Automatic recertification.--
``(A) In general.--The Secretary shall establish and
implement, with respect to any borrower enrolled in an
income-based repayment program under this section or
under section 455(q), procedures to--
``(i) use return information disclosed under
section 6103(l)(13) of the Internal Revenue Code
of 1986, pursuant to approval provided under
section 494, to determine the repayment obligation
of the borrower without further action by the
borrower;
``(ii) allow the borrower (or the spouse of
the borrower), at any time, to opt out of
disclosure under such section 6103(l)(13) and
instead provide such information as the Secretary
may require to determine the repayment obligation
of the borrower (or withdraw from the repayment
plan under this section or under section 455(q),
as the case may be); and
``(iii) provide the borrower with an
opportunity to update the return information so
disclosed before the determination of the
repayment obligation of the borrower.
``(B) Applicability.--Subparagraph (A) shall apply
to each borrower of a loan eligible to be repaid under
this section or under section 455(q), who, on or after
the date on which the Secretary establishes procedures
under such subparagraph (A)--
``(i) selects, or is required to repay such
loan pursuant to, an income-based repayment plan
under this section or under section 455(q); or
``(ii) recertifies income or family size under
such plan.''.
(E) <<NOTE: Effective date.>> Special terms for new
borrowers on and after july 1, 2014.--Section 493C(e) of
the Higher Education Act of 1965 (20 U.S.C. 1098e(e)) is
amended--
(i) in the subsection heading, by inserting
``and Before July 1, 2026'' after ``After July 1,
2014''; and
(ii) by inserting ``and before July 1, 2026''
after ``after July 1, 2014''.
(2) <<NOTE: 20 USC 1098e note.>> Effective date and
application.--The amendments made by this subsection shall take
effect on the date of enactment of this title, and shall apply
with respect to any borrower
[[Page 139 STAT. 348]]
who is in repayment before, on, or after the date of enactment
of this title.
(g) FFEL Adjustment.--Section 428(b)(9)(A)(v) of the Higher
Education Act of 1965 (20 U.S.C. 1078(b)(9)(A)(v)) is amended by
striking ``who has a partial financial hardship''.
SEC. 82002. DEFERMENT; FORBEARANCE.
(a) Sunset of Economic Hardship and Unemployment Deferments.--
Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f))
is amended--
(1) by striking the subsection heading and inserting the
following: ``Deferment; Forbearance'';
(2) in paragraph (2)--
(A) in subparagraph (B), by striking ``not in'' and
inserting ``subject to paragraph (7), not in''; and
(B) in subparagraph (D), by striking ``not in'' and
inserting ``subject to paragraph (7), not in''; and
(3) by adding at the end the following:
``(7) Sunset of unemployment and economic hardship
deferments.--A borrower who receives a loan made under this part
on or after July 1, 2027, shall not be eligible to defer such
loan under subparagraph (B) or (D) of paragraph (2).''.
(b) <<NOTE: Effective date.>> Forbearance on Loans Made Under This
Part on or After July 1, 2027.--Section 455(f) of the Higher Education
Act of 1965 (20 U.S.C. 1087e(f)) is amended by adding at the end the
following:
``(8) <<NOTE: Time periods.>> Forbearance on loans made
under this part on or after july 1, 2027.--A borrower who
receives a loan made under this part on or after July 1, 2027,
may only be eligible for a forbearance on such loan pursuant to
section 428(c)(3)(B) that does not exceed 9 months during any
24-month period.''.
SEC. 82003. LOAN REHABILITATION.
(a) Updating Loan Rehabilitation Limits.--
(1) FFEL and direct loans.--Section 428F(a)(5) of the Higher
Education Act of 1965 (20 U.S.C. 1078-6(a)(5)) is amended by
striking ``one time'' and inserting ``two times''.
(2) Perkins loans.--Section 464(h)(1)(D) of the Higher
Education Act of 1965 (20 U.S.C. 1087dd(h)(1)(D)) is amended by
striking ``once'' and inserting ``twice''.
(3) <<NOTE: Applicability. 20 USC 1078-6 note.>> Effective
date.--The amendments made by this subsection shall take effect
beginning on July 1, 2027, and shall apply with respect to any
loan made, insured, or guaranteed under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070 et seq.).
(b) <<NOTE: Effective date.>> Minimum Monthly Payment Amount.--
Section 428F(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C.
1078-6(a)(1)(B)) is amended by adding at the end the following: ``With
respect to a borrower who has 1 or more loans made under part D on or
after July 1, 2027 that are described in subparagraph (A), the total
monthly payment of the borrower for all such loans shall not be less
than $10.''.
SEC. 82004. PUBLIC SERVICE LOAN FORGIVENESS.
Section 455(m)(1)(A) of the Higher Education Act of 1965 (20 U.S.C.
1087e(m)(1)(A)) is amended--
[[Page 139 STAT. 349]]
(1) in clause (iii), by striking ``; or'' and inserting a
semicolon;
(2) in clause (iv), by striking ``; and'' and inserting
``(as in effect on the day before the date of the repeal of
subsection (e) of this section); or''; and
(3) by adding at the end the following new clause:
``(v) on-time payments under the Repayment
Assistance Plan under subsection (q); and''.
SEC. 82005. STUDENT LOAN SERVICING.
Paragraph (1) of section 458(a) of the Higher Education Act of 1965
(20 U.S.C. 1087h(a)(1)) is amended to read as follows:
``(1) Additional mandatory funds for servicing.--There shall
be available to the Secretary (in addition to any other amounts
appropriated under any appropriations Act for administrative
costs under this part and part B and out of any money in the
Treasury not otherwise appropriated) $1,000,000,000 to be
obligated for administrative costs under this part and part B,
including the costs of servicing the direct student loan
programs under this part, which shall remain available until
expended.''.
Subtitle D--Pell Grants
SEC. 83001. ELIGIBILITY.
(a) Foreign Income and Federal Pell Grant Eligibility.--
(1) Adjusted gross income defined.--Section 401(a)(2)(A) of
the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A)) is
amended to read as follows:
``(A) <<NOTE: Definition.>> the term `adjusted
gross income' means--
``(i) in the case of a dependent student, for
the second tax year preceding the academic year--
``(I) the adjusted gross income (as
defined in section 62 of the Internal
Revenue Code of 1986) of the student's
parents; plus
``(II) for Federal Pell Grant
determinations made for academic years
beginning on or after July 1, 2026, the
foreign income (as described in section
480(b)(5)) of the student's parents; and
``(ii) in the case of an independent student,
for the second tax year preceding the academic
year--
``(I) the adjusted gross income (as
defined in section 62 of the Internal
Revenue Code of 1986) of the student
(and the student's spouse, if
applicable); plus
``(II) for Federal Pell Grant
determinations made for academic years
beginning on or after July 1, 2026, the
foreign income (as described in section
480(b)(5)) of the student (and the
student's spouse, if applicable);''.
(2) Sunset.--Section 401(b)(1)(D) of the Higher Education
Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended--
(A) by striking ``A student'' and inserting ``For
each academic year beginning before July 1, 2026, a
student''; and
[[Page 139 STAT. 350]]
(B) by inserting ``, as in effect for such academic
year,'' after ``section 479A(b)(1)(B)(v)''.
(3) Conforming amendments.--
(A) In general.--Section 479A(b)(1)(B) of the Higher
Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is
amended--
(i) by striking clause (v); and
(ii) by redesignating clauses (vi) and (vii)
as clauses (v) and (vi), respectively.
(B) <<NOTE: 20 USC 1087tt note.>> Effective date.--
The amendment made by subparagraph (A) shall take effect
on July 1, 2026.
(b) Federal Pell Grant Ineligibility Due to a High Student Aid
Index.--
(1) In general.--Section 401(b)(1) of the Higher Education
Act of 1965 (20 U.S.C. 1070a(b)(1)) is amended by adding at the
end the following:
``(F) Ineligibility of students with a high student
aid index.--Notwithstanding subparagraphs (A) through
(E), a student shall not be eligible for a Federal Pell
Grant under this subsection for an academic year in
which the student has a student aid index that equals or
exceeds twice the amount of the total maximum Federal
Pell Grant for such academic year.''.
(2) <<NOTE: 20 USC 1070a note.>> Effective date.--The
amendment made by paragraph (1) shall take effect on July 1,
2026.
SEC. 83002. <<NOTE: Time periods.>> WORKFORCE PELL GRANTS.
(a) In General.--Section 401 of the Higher Education Act of 1965 (20
U.S.C. 1070a) is amended by adding at the end the following:
``(k) Workforce Pell Grant Program.--
``(1) <<NOTE: Effective date.>> In general.--For the award
year beginning on July 1, 2026, and each subsequent award year,
the Secretary shall award grants (to be known as `Workforce Pell
Grants') to eligible students under paragraph (2) in accordance
with this subsection.
``(2) Eligible students.--To be eligible to receive a
Workforce Pell Grant under this subsection for any period of
enrollment, a student shall meet the eligibility requirements
for a Federal Pell Grant under this section, except that the
student--
``(A) shall be enrolled, or accepted for enrollment,
in an eligible program under section 481(b)(3)
(hereinafter referred to as an `eligible workforce
program'); and
``(B) may not--
``(i) be enrolled, or accepted for enrollment,
in a program of study that leads to a graduate
credential; or
``(ii) have attained such a credential.
``(3) Terms and conditions of awards.--The Secretary shall
award Workforce Pell Grants under this subsection in the same
manner and with the same terms and conditions as the Secretary
awards Federal Pell Grants under this section, except that--
``(A) each use of the term `eligible program'
(except in subsection (b)(9)(A)) shall be substituted by
`eligible workforce program under section 481(b)(3)';
[[Page 139 STAT. 351]]
``(B) the provisions of subsection (d)(2) shall not
be applicable to eligible workforce programs; and
``(C) a student who is eligible for a grant equal to
less than the amount of the minimum Federal Pell Grant
because the eligible workforce program in which the
student is enrolled or accepted for enrollment is less
than an academic year (in hours of instruction or weeks
of duration) may still be eligible for a Workforce Pell
Grant in an amount that is prorated based on the length
of the program.
``(4) Prevention of double benefits.--No eligible student
described in paragraph (2) may concurrently receive a grant
under both this subsection and--
``(A) subsection (b); or
``(B) subsection (c).
``(5) <<NOTE: Determination.>> Duration limit.--Any period
of study covered by a Workforce Pell Grant awarded under this
subsection shall be included in determining a student's duration
limit under subsection (d)(5).''.
(b) Program Eligibility for Workforce Pell Grants.--Section 481(b)
of the Higher Education Act of 1965 (20 U.S.C. 1088(b)) is amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by inserting after paragraph (2) the following:
``(3)(A) A program is an eligible program for purposes of
the Workforce Pell Grant program under section 401(k) only if--
``(i) it is a program of at least 150 clock hours of
instruction, but less than 600 clock hours of
instruction, or an equivalent number of credit hours,
offered by an eligible institution during a minimum of 8
weeks, but less than 15 weeks;
``(ii) it is not offered as a correspondence course,
as defined in 600.2 of title 34, Code of Federal
Regulations (as in effect on July 1, 2021);
``(iii) <<NOTE: State and local
governments. Determination.>> the Governor of a State,
after consultation with the State board, determines that
the program--
``(I) provides an education aligned with the
requirements of high-skill, high-wage (as
identified by the State pursuant to section 122 of
the Carl D. Perkins Career and Technical Education
Act (20 U.S.C. 2342)), or in-demand industry
sectors or occupations;
``(II) meets the hiring requirements of
potential employers in the sectors or occupations
described in subclause (I);
``(III) either--
``(aa) leads to a recognized
postsecondary credential that is
stackable and portable across more than
one employer; or
``(bb) with respect to students
enrolled in the program--
``(AA) prepares such
students for employment in an
occupation for which there is
only one recognized
postsecondary credential; and
[[Page 139 STAT. 352]]
``(BB) provides such
students with such a credential
upon completion of such program;
and
``(IV) prepares students to pursue 1 or more
certificate or degree programs at 1 or more
institutions of higher education (which may
include the eligible institution providing the
program), including by ensuring--
``(aa) that a student, upon
completion of the program and enrollment
in such a related certificate or degree
program, will receive academic credit
for the Workforce Pell program that will
be accepted toward meeting such
certificate or degree program
requirements; and
``(bb) the acceptability of such
credit toward meeting such certificate
or degree program requirements; and
``(iv) <<NOTE: State and local
governments. Determination.>> after the Governor of
such State makes the determination that the program
meets the requirements under clause (iii), the Secretary
determines that--
``(I) the program has been offered by the
eligible institution for not less than 1 year
prior to the date on which the Secretary makes a
determination under this clause;
``(II) for each award year, the program has a
verified completion rate of at least 70 percent,
within 150 percent of the normal time for
completion;
``(III) for each award year, the program has a
verified job placement rate of at least 70
percent, measured 180 days after completion; and
``(IV) for each award year, the total amount
of the published tuition and fees of the program
for such year is an amount that does not exceed
the value-added earnings of students who received
Federal financial aid under this title and who
completed the program 3 years prior to the award
year, as such earnings are determined by
calculating the difference between--
``(aa) the median earnings of such
students, as adjusted by the State and
metropolitan area regional price
parities of the Bureau of Economic
Analysis based on the location of such
program; and
``(bb) 150 percent of the poverty
line applicable to a single individual
as determined under section 673(2) of
the Community Services Block Grant Act
(42 U.S.C. 9902(2)) for such year.
``(B) <<NOTE: Definitions.>> In this paragraph:
``(i) The term `eligible institution' means an
eligible institution for purposes of section 401.
``(ii) The term `Governor' means the chief executive
of a State.
``(iii) The terms `in-demand industry sector or
occupation', `recognized postsecondary credential', and
`State board' have the meanings given such terms in
section 3 of the Workforce Innovation and Opportunity
Act.''.
(c) <<NOTE: 20 USC 1070a note.>> Effective Date; Applicability.--
The amendments made by this section shall take effect on July 1, 2026,
and shall apply
[[Page 139 STAT. 353]]
with respect to award year 2026-2027 and each succeeding award year.
SEC. 83003. PELL SHORTFALL.
Section 401(b)(7)(A)(iii) of the Higher Education Act of 1965 (20
U.S.C. 1070a(b)(7)(A)(iii)) is amended by striking ``$2,170,000,000''
and inserting ``$12,670,000,000''.
SEC. 83004. FEDERAL PELL GRANT EXCLUSION RELATING TO OTHER GRANT
AID.
Section 401(d) of the Higher Education Act of 1965 (20 U.S.C.
1070a(d)) is amended by adding at the end the following:
``(6) <<NOTE: Effective date.>> Exclusion.--Beginning on
July 1, 2026, and notwithstanding this subsection or subsection
(b), a student shall not be eligible for a Federal Pell Grant
under subsection (b) during any period for which the student
receives grant aid from non-Federal sources, including States,
institutions of higher education, or private sources, in an
amount that equals or exceeds the student's cost of attendance
for such period.''.
Subtitle E--Accountability
SEC. 84001. INELIGIBILITY BASED ON LOW EARNING OUTCOMES.
Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d) is
amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``and'' after the
semicolon;
(B) by redesignating paragraph (6) as paragraph (7);
and
(C) by inserting after paragraph (5) the following:
``(6) provide assurances that, beginning July 1, 2026, the
institution will comply with all requirements of subsection (c);
and'';
(2) in subsection (b)(2), by striking ``and (6)'' and
inserting ``(6), and (7)'';
(3) by redesignating subsection (c) as subsection (d); and
(4) by inserting after subsection (b) the following:
``(c) <<NOTE: Time periods.>> Ineligibility for Certain Programs
Based on Low Earning Outcomes.--
``(1) In general.--Notwithstanding section 481(b), an
institution of higher education subject to this subsection shall
not use funds under this part for student enrollment in an
educational program offered by the institution that is described
in paragraph (2).
``(2) <<NOTE: Determination.>> Low-earning outcome programs
described.--An educational program at an institution is
described in this paragraph if the program awards an
undergraduate degree, graduate or professional degree, or
graduate certificate, for which the median earnings (as
determined by the Secretary) of the programmatic cohort of
students who received funds under this title for enrollment in
such program, who completed such program during the academic
year that is 4 years before the year of the determination, who
are not enrolled in any institution of higher education, and who
are working, are, for not less than 2 of the 3 years immediately
preceding the date of the determination, less than the median
earnings of a
[[Page 139 STAT. 354]]
working adult described in paragraph (3) for the corresponding
year.
``(3) Calculation of median earnings.--
``(A) Working adult.--For purposes of applying
paragraph (2) to an educational program at an
institution, a working adult described in this paragraph
is a working adult who, for the corresponding year--
``(i) is aged 25 to 34;
``(ii) is not enrolled in an institution of
higher education; and
``(iii)(I) in the case of a determination made
for an educational program that awards a
baccalaureate or lesser degree, has only a high
school diploma or its recognized equivalent; or
``(II) in the case of a determination made for
a graduate or professional program, has only a
baccalaureate degree.
``(B) <<NOTE: Applicability.>> Source of data.--For
purposes of applying paragraph (2) to an educational
program at an institution, the median earnings of a
working adult, as described in subparagraph (A), shall
be based on data from the Bureau of the Census--
``(i) with respect to an educational program
that awards a baccalaureate or lesser degree--
``(I) for the State in which the
institution is located; or
``(II) if fewer than 50 percent of
the students enrolled in the institution
reside in the State where the
institution is located, for the entire
United States; and
``(ii) with respect to an educational program
that is a graduate or professional program--
``(I) for the lowest median earnings
of--
``(aa) a working adult in
the State in which the
institution is located;
``(bb) a working adult in
the same field of study (as
determined by the Secretary,
such as by using the 2-digit CIP
code) in the State in which the
institution is located; and
``(cc) a working adult in
the same field of study (as so
determined) in the entire United
States; or
``(II) if fewer than 50 percent of
the students enrolled in the institution
reside in the State where the
institution is located, for the lower
median earnings of--
``(aa) a working adult in
the entire United States; or
``(bb) a working adult in
the same field of study (as so
determined) in the entire United
States.
``(4) Small programmatic cohorts.--For any year for which
the programmatic cohort described in paragraph (2) for an
educational program of an institution is fewer than 30
individuals, the Secretary shall--
[[Page 139 STAT. 355]]
``(A) first, aggregate additional years of
programmatic data in order to achieve a cohort of at
least 30 individuals; and
``(B) second, in cases in which the cohort
(including the individuals added under subparagraph (A))
is still fewer than 30 individuals, aggregate additional
cohort years of programmatic data for educational
programs of equivalent length in order to achieve a
cohort of at least 30 individuals.
``(5) Appeals process.--An educational program shall not
lose eligibility under this subsection unless the institution
has had the opportunity to appeal the programmatic median
earnings of students working and not enrolled determination
under paragraph (2), through a process established by the
Secretary. During such appeal, the Secretary may permit the
educational program to continue to participate in the program
under this part.
``(6) Notice to students.--
``(A) In general.--If an educational program of an
institution of higher education subject to this
subsection does not meet the cohort median earning
requirements, as described in paragraph (2), for one
year during the applicable covered period but has not
yet failed to meet such requirements for 2 years during
such covered period, the institution shall promptly
inform each student enrolled in the educational program
of the eligible program's low cohort median earnings and
that the educational program is at risk of losing its
eligibility for funds under this part.
``(B) <<NOTE: Definition.>> Covered period.--In
this paragraph, the term `covered period' means the
period of the 3 years immediately preceding the date of
a determination made under paragraph (2).
``(7) <<NOTE: Process.>> Regaining programmatic
eligibility.--The Secretary shall establish a process by which
an institution of higher education that has an educational
program that has lost eligibility under this subsection may,
after a period of not less than 2 years of such program's
ineligibility, apply to regain such eligibility, subject to the
requirements established by the Secretary that further the
purpose of this subsection.''.
Subtitle F--Regulatory Relief
SEC. 85001. <<NOTE: Effective dates.>> DELAY OF RULE RELATING TO
BORROWER DEFENSE TO REPAYMENT.
(a) Delay.--Beginning on the date of enactment of this section, for
loans that first originate before July 1, 2035, the provisions of
subpart D of part 685 of title 34, Code of Federal Regulations (relating
to borrower defense to repayment), as added or amended by the final
regulations published by the Department of Education on November 1,
2022, and titled ``Institutional Eligibility Under the Higher Education
Act of 1965, as Amended; Student Assistance General Provisions; Federal
Perkins Loan Program; Federal Family Education Loan Program; and William
D. Ford Federal Direct Loan Program'' (87 Fed. Reg. 65904) shall not be
in effect.
(b) Effect.--Beginning on the date of enactment of this section,
with respect to loans that first originate before July 1, 2035, any
regulations relating to borrower defense to repayment that took
[[Page 139 STAT. 356]]
effect on July 1, 2020, are restored and revived as such regulations
were in effect on such date.
SEC. 85002. <<NOTE: Effective dates.>> DELAY OF RULE RELATING TO
CLOSED SCHOOL DISCHARGES.
(a) Delay.--Beginning on the date of enactment of this section, for
loans that first originate before July 1, 2035, the provisions of
sections 674.33(g), 682.402(d), and 685.214 of title 34, Code of Federal
Regulations (relating to closed school discharges), as added or amended
by the final regulations published by the Department of Education on
November 1, 2022, and titled ``Institutional Eligibility Under the
Higher Education Act of 1965, as Amended; Student Assistance General
Provisions; Federal Perkins Loan Program; Federal Family Education Loan
Program; and William D. Ford Federal Direct Loan Program'' (87 Fed. Reg.
65904), shall not be in effect.
(b) Effect.--Beginning on the date of enactment of this section,
with respect to loans that first originate before July 1, 2035, the
portions of the Code of Federal Regulations described in subsection (a)
and amended by the final regulations described in subsection (a) shall
be in effect as if the amendments made by such final regulations had not
been made.
Subtitle G--Garden of Heroes
SEC. 86001. <<NOTE: Appropriations authorization. Time period.>>
GARDEN OF HEROES.
In addition to amounts otherwise available, there are appropriated
to the National Endowment for the Humanities for fiscal year 2025, out
of any money in the Treasury not otherwise appropriated, to remain
available through fiscal year 2028, $40,000,000 for the procurement of
statues as described in Executive Order 13934 (85 Fed. Reg. 41165;
relating to building and rebuilding monuments to American heroes),
Executive Order 13978 (86 Fed. Reg. 6809; relating to building the
National Garden of American Heroes), and Executive Order 14189 (90 Fed.
Reg. 8849; relating to celebrating America's birthday).
Subtitle H--Office of Refugee Resettlement
SEC. 87001. POTENTIAL SPONSOR VETTING FOR UNACCOMPANIED ALIEN
CHILDREN APPROPRIATION.
(a) <<NOTE: Time period.>> Appropriation.--In addition to amounts
otherwise available, there is appropriated to the Office of Refugee
Resettlement for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, $300,000,000, to remain available until
September 30, 2028, for the purposes described in subsection (b).
(b) Use of Funds.--The funds made available under subsection (a) may
only be used for the Office of Refugee Resettlement to support costs
associated with--
(1) background checks on potential sponsors, which shall
include--
(A) the name of the potential sponsor and of all
adult residents of the potential sponsor's household;
(B) the social security number or tax payer
identification number of the potential sponsor and of
all adult residents of the potential sponsor's
household;
[[Page 139 STAT. 357]]
(C) the date of birth of the potential sponsor and
of all adult residents of the potential sponsor's
household;
(D) the validated location of the residence at which
the unaccompanied alien child will be placed;
(E) an in-person or virtual interview with, and
suitability study concerning, the potential sponsor and
all adult residents of the potential sponsor's
household;
(F) contact information for the potential sponsor
and for all adult residents of the potential sponsor's
household; and
(G) the results of all background and criminal
records checks for the potential sponsor and for all
adult residents of the potential sponsor's household,
which shall include, at a minimum, an investigation of
the public records sex offender registry, a public
records background check, and a national criminal
history check based on fingerprints;
(2) home studies of potential sponsors of unaccompanied
alien children;
(3) <<NOTE: Determination.>> determining whether an
unaccompanied alien child poses a danger to self or others by
conducting an examination of the unaccompanied alien child for
gang-related tattoos and other gang-related markings and
covering such tattoos or markings while the child is in the care
of the Office of Refugee Resettlement;
(4) data systems improvement and sharing that supports the
health, safety, and well being of unaccompanied alien children
by determining the appropriateness of potential sponsors of
unaccompanied alien children and of adults residing in the
household of the potential sponsor and by assisting with the
identification and investigation of child labor exploitation and
child trafficking; and
(5) coordinating and communicating with State child welfare
agencies regarding the placement of unaccompanied alien children
in such States by the Office of Refugee Resettlement.
(c) Definitions.--In this section:
(1) Potential sponsor.--The term ``potential sponsor'' means
an individual or entity who applies for the custody of an
unaccompanied alien child.
(2) Unaccompanied alien child.--The term ``unaccompanied
alien child'' has the meaning given such term in section 462(g)
of the Homeland Security Act of 2002 (6 U.S.C. 279(g)).
TITLE IX-- <<NOTE: Appropriations authorization. Time
periods.>> COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
Subtitle A--Homeland Security Provisions
SEC. 90001. BORDER INFRASTRUCTURE AND WALL SYSTEM.
In addition to amounts otherwise available, there is appropriated to
the Commissioner of U.S. Customs and Border Protection for fiscal year
2025, out of any money in the Treasury not otherwise appropriated, to
remain available until September 30, 2029, $46,550,000,000 for necessary
expenses relating to the following elements of the border infrastructure
and wall system:
[[Page 139 STAT. 358]]
(1) Construction, installation, or improvement of new or
replacement primary, waterborne, and secondary barriers.
(2) Access roads.
(3) Barrier system attributes, including cameras, lights,
sensors, and other detection technology.
(4) Any work necessary to prepare the ground at or near the
border to allow U.S. Customs and Border Protection to conduct
its operations, including the construction and maintenance of
the barrier system.
SEC. 90002. U.S. CUSTOMS AND BORDER PROTECTION PERSONNEL, FLEET
VEHICLES, AND FACILITIES.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Commissioner of U.S. Customs and Border
Protection for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, the following:
(1) Personnel.--$4,100,000,000, to remain available until
September 30, 2029, to hire and train additional Border Patrol
agents, Office of Field Operations officers, Air and Marine
agents, rehired annuitants, and U.S. Customs and Border
Protection field support personnel.
(2) Retention, hiring, and performance bonuses.--
$2,052,630,000, to remain available until September 30, 2029, to
provide recruitment bonuses, performance awards, or annual
retention bonuses to eligible Border Patrol agents, Office of
Field Operations officers, and Air and Marine agents.
(3) Vehicles.--$855,000,000, to remain available until
September 30, 2029, for the repair of existing patrol units and
the lease or acquisition of additional patrol units.
(4) Facilities.--$5,000,000,000 for necessary expenses
relating to lease, acquisition, construction, design, or
improvement of facilities and checkpoints owned, leased, or
operated by U.S. Customs and Border Protection.
(b) <<NOTE: Expiration date.>> Restriction.--None of the funds made
available by subsection (a) may be used to recruit, hire, or train
personnel for the duties of processing coordinators after October 31,
2028.
SEC. 90003. DETENTION CAPACITY.
(a) In General.--In addition to any amounts otherwise appropriated,
there is appropriated to U.S. Immigration and Customs Enforcement for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, to remain available until September 30, 2029,
$45,000,000,000, for single adult alien detention capacity and family
residential center capacity.
(b) Duration and Standards.--Aliens may be detained at family
residential centers, as described in subsection (a), pending a decision,
under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), on
whether the aliens are to be removed from the United States and, if such
aliens are ordered removed from the United States, until such aliens are
removed. The detention standards for the single adult detention capacity
described in subsection (a) shall be set in the discretion of the
Secretary of Homeland Security, consistent with applicable law.
(c) Definition of Family Residential Center.--In this section, the
term ``family residential center'' means a facility used by the
Department of Homeland Security to detain family units of aliens
(including alien children who are not unaccompanied alien children (as
defined in section 462(g) of the Homeland Security
[[Page 139 STAT. 359]]
Act of 2002 (6 U.S.C. 279(g)))) who are encountered or apprehended by
the Department of Homeland Security.
SEC. 90004. BORDER SECURITY, TECHNOLOGY, AND SCREENING.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Commissioner of U.S. Customs and Border
Protection for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, to remain available until September 30, 2029,
$6,168,000,000 for the following:
(1) Procurement and integration of new nonintrusive
inspection equipment and associated civil works, including
artificial intelligence, machine learning, and other innovative
technologies, as well as other mission support, to combat the
entry or exit of illicit narcotics at ports of entry and along
the southwest, northern, and maritime borders.
(2) Air and Marine operations' upgrading and procurement of
new platforms for rapid air and marine response capabilities.
(3) Upgrades and procurement of border surveillance
technologies along the southwest, northern, and maritime
borders.
(4) Necessary expenses, including the deployment of
technology, relating to the biometric entry and exit system
under section 7208 of the Intelligence Reform and Terrorism
Prevention Act of 2004 (8 U.S.C. 1365b).
(5) Screening persons entering or exiting the United States.
(6) Initial screenings of unaccompanied alien children (as
defined in section 462(g) of the Homeland Security Act of 2002
(6 U.S.C. 279(g))), consistent with the William Wilberforce
Trafficking Victims Protection Reauthorization Act of 2008
(Public Law 110-457; 122 Stat. 5044).
(7) Enhancing border security by combating drug trafficking,
including fentanyl and its precursor chemicals, at the
southwest, northern, and maritime borders.
(8) Commemorating efforts and events related to border
security.
(b) Restrictions.--None of the funds made available under subsection
(a) may be used for the procurement or deployment of surveillance towers
along the southwest border and northern border that have not been tested
and accepted by U.S. Customs and Border Protection to deliver autonomous
capabilities.
(c) Definition of Autonomous.--In this section, with respect to
capabilities, the term ``autonomous'' means a system designed to apply
artificial intelligence, machine learning, computer vision, or other
algorithms to accurately detect, identify, classify, and track items of
interest in real time such that the system can make operational
adjustments without the active engagement of personnel or continuous
human command or control.
SEC. 90005. STATE AND LOCAL ASSISTANCE.
(a) State Homeland Security Grant Programs.--
(1) In general.--In addition to amounts otherwise available,
there is appropriated to the Administrator of the Federal
Emergency Management Agency for fiscal year 2025, out of any
money in the Treasury not otherwise appropriated, to remain
available until September 30, 2029, to be administered under the
State Homeland Security Grant Program authorized under section
2004 of the Homeland Security Act of 2002 (6 U.S.C. 605), to
enhance State, local, and Tribal security through grants,
contracts, cooperative agreements, and other activities--
[[Page 139 STAT. 360]]
(A) $500,000,000 for State and local capabilities to
detect, identify, track, or monitor threats from
unmanned aircraft systems (as such term is defined in
section 44801 of title 49, United States Code),
consistent with titles 18 and 49 of the United States
Code;
(B) $625,000,000 for security and other costs
related to the 2026 FIFA World Cup;
(C) $1,000,000,000 for security, planning, and other
costs related to the 2028 Olympics; and
(D) $450,000,000 for the Operation Stonegarden Grant
Program.
(2) Terms and conditions.--None of the funds made available
under subparagraph (B) or (C) of paragraph (1) shall be subject
to the requirements of section 2004(e)(1) or section 2008(a)(12)
of the Homeland Security Act of 2002 (6 U.S.C. 605(e)(1),
609(a)(12)).
(b) <<NOTE: 8 USC 1716.>> State Border Security Reinforcement
Fund.--
(1) Establishment.--There is established, in the Department
of Homeland Security, a fund to be known as the ``State Border
Security Reinforcement Fund.''
(2) Purposes.--The Secretary of Homeland Security shall use
amounts appropriated or otherwise made available for the Fund
for grants to eligible States and units of local government for
any of the following purposes:
(A) Construction or installation of a border wall,
border fencing or other barrier, or buoys along the
southern border of the United States, which may include
planning, procurement of materials, and personnel costs
related to such construction or installation.
(B) Any work necessary to prepare the ground at or
near land borders to allow construction and maintenance
of a border wall or other barrier fencing.
(C) Detection and interdiction of illicit substances
and aliens who have unlawfully entered the United States
and have committed a crime under Federal, State, or
local law, and transfer or referral of such aliens to
the Department of Homeland Security as provided by law.
(D) Relocation of aliens who are unlawfully present
in the United States from small population centers to
other domestic locations.
(3) Appropriation.--In addition to amounts otherwise
available for the purposes described in paragraph (2), there is
appropriated for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, to the Department of
Homeland Security for the State Border Security Reinforcement
Fund established by paragraph (1), $10,000,000,000, to remain
available until September 30, 2034, for qualified expenses for
such purposes.
(4) <<NOTE: Effective date.>> Eligibility.--The Secretary
of Homeland Security may provide grants from the fund
established by paragraph (1) to State agencies and units of
local governments for expenditures made for completed, ongoing,
or new activities, in accordance with law, that occurred on or
after January 20, 2021.
(5) Application.--Each State desiring to apply for a grant
under this subsection shall submit an application to the
Secretary containing such information in support of the
application as the Secretary may require. The Secretary shall
require that
[[Page 139 STAT. 361]]
each State include in its application the purposes for which the
State seeks the funds and a description of how the State plans
to allocate the funds. <<NOTE: Deadline.>> The Secretary shall
begin to accept applications not later than 90 days after the
date of the enactment of this Act.
(6) Terms and conditions.--Nothing in this subsection shall
authorize any State or local government to exercise immigration
or border security authorities reserved exclusively to the
Federal Government under the Immigration and Nationality Act (8
U.S.C. 1101 et seq.) or the Homeland Security Act of 2002 (6
U.S.C. 101 et seq.). The Federal Emergency Management Agency may
use not more than 1 percent of the funds made available under
this subsection for the purpose of administering grants provided
for in this section.
SEC. 90006. PRESIDENTIAL RESIDENCE PROTECTION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Federal Emergency Management
Agency for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, $300,000,000, to remain available until
September 30, 2029, for the reimbursement of extraordinary law
enforcement personnel costs for protection activities directly and
demonstrably associated with any residence of the President designated
pursuant to section 3 or 4 of the Presidential Protection Assistance Act
of 1976 (Public Law 94-524; 18 U.S.C. 3056 note) to be secured by the
United States Secret Service.
(b) Availability.--Funds appropriated under this section shall be
available only for costs that a State or local agency--
(1) <<NOTE: Effective date.>> incurred or incurs on or
after July 1, 2024;
(2) demonstrates to the Administrator of the Federal
Emergency Management Agency as being--
(A) in excess of typical law enforcement operation
costs;
(B) directly attributable to the provision of
protection described in this section; and
(C) associated with a nongovernmental property
designated pursuant to section 3 or 4 of the
Presidential Protection Assistance Act of 1976 (Public
Law 94-524; 18 U.S.C. 3056 note) to be secured by the
United States Secret Service; and
(3) <<NOTE: Certification.>> certifies to the Administrator
as compensating protection activities requested by the United
States Secret Service.
(c) Terms and Conditions.--The Federal Emergency Management Agency
may use not more than 3 percent of the funds made available under this
section for the purpose of administering grants provided for in this
section.
SEC. 90007. <<NOTE: Reimbursement.>> DEPARTMENT OF HOMELAND
SECURITY APPROPRIATIONS FOR BORDER
SUPPORT.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Homeland Security for fiscal year 2025, out of any
money in the Treasury not otherwise appropriated, $10,000,000,000, to
remain available until September 30, 2029, for reimbursement of costs
incurred in undertaking activities in support of the Department of
Homeland Security's mission to safeguard the borders of the United
States.
[[Page 139 STAT. 362]]
Subtitle B--Governmental Affairs Provisions
SEC. 90101. <<NOTE: FEHB Protection Act of 2025.>> FEHB
IMPROVEMENTS.
(a) <<NOTE: 5 USC 8905 note.>> Short Title.--This section may be
cited as the ``FEHB Protection Act of 2025''.
(b) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
the Office of Personnel Management.
(2) Health benefits plan; member of family.--The terms
``health benefits plan'' and ``member of family'' have the
meanings given those terms in section 8901 of title 5, United
States Code.
(3) Open season.--The term ``open season'' means an open
season described in section 890.301(f) of title 5, Code of
Federal Regulations, or any successor regulation.
(4) Program.--The term ``Program'' means the health
insurance programs carried out under chapter 89 of title 5,
United States Code, including the program carried out under
section 8903c of that title.
(5) Qualifying life event.--The term ``qualifying life
event'' has the meaning given the term in section 892.101 of
title 5, Code of Federal Regulations, or any successor
regulation.
(c) <<NOTE: Deadline. Regulations. Process.>> Verification
Requirements.--Not later than 1 year after the date of enactment of this
Act, the Director shall issue regulations and implement a process to
verify--
(1) the veracity of any qualifying life event through which
an enrollee in the Program seeks to add a member of family with
respect to the enrollee to a health benefits plan under the
Program; and
(2) that, when an enrollee in the Program seeks to add a
member of family with respect to the enrollee to the health
benefits plan of the enrollee under the Program, including
during any open season, the individual so added is a qualifying
member of family with respect to the enrollee.
(d) Fraud Risk Assessment.--In any fraud risk assessment conducted
with respect to the Program on or after the date of enactment of this
Act, the Director shall include an assessment of individuals who are
enrolled in, or covered under, a health benefits plan under the Program
even though those individuals are not eligible to be so enrolled or
covered.
(e) Family Member Eligibility Verification Audit.--
(1) <<NOTE: Time period. Effective date.>> In general.--
During the 3-year period beginning on the date that is 1 year
after the date of enactment of this Act, the Director shall
carry out a comprehensive audit regarding members of family who
are covered under an enrollment in a health benefits plan under
the Program.
(2) Contents.--With respect to the audit carried out under
paragraph (1), the Director shall review marriage certificates,
birth certificates, and other appropriate documents that are
necessary to determine eligibility to enroll in a health
benefits plan under the Program.
(f) <<NOTE: Deadline. Process.>> Disenrollment or Removal.--Not
later than 180 days after the date of enactment of this Act, the
Director shall develop a process by which any individual enrolled in, or
covered under,
[[Page 139 STAT. 363]]
a health benefits plan under the Program who is not eligible to be so
enrolled or covered shall be disenrolled or removed from enrollment in,
or coverage under, that health benefits plan.
(g) Earned Benefits and Health Care Administrative Services
Associated Oversight and Audit Funding.--Section 8909 of title 5, United
States Code, is amended--
(1) in subsection (a)(2), by inserting before the period at
the end the following: ``, except that the amounts required to
be set aside under subsection (b)(2) shall not be subject to the
limitations that may be specified annually by Congress''; and
(2) in subsection (b)--
(A) by redesignating paragraph (2) as paragraph (3);
and
(B) by inserting after paragraph (1) the following:
``(2) <<NOTE: Time periods.>> In fiscal year 2026,
$66,000,000, to be derived from all contributions, and to remain
available until the end of fiscal year 2035, for the Director of
the Office to carry out subsections (c) through (f) of the FEHB
Protection Act of 2025.''.
SEC. 90102. PANDEMIC RESPONSE ACCOUNTABILITY COMMITTEE.
(a) Pandemic Response Accountability Committee Funding
Availability.--In addition to amounts otherwise available, there is
appropriated for fiscal year 2026, out of any money in the Treasury not
otherwise appropriated, $88,000,000, to remain available until expended,
for the Pandemic Response Accountability Committee to support oversight
of the Coronavirus response and of funds provided in this Act or any
other Act pertaining to the Coronavirus pandemic.
(b) <<NOTE: 5 USC 424 note.>> CARES Act.--Section 15010 of the
CARES Act (Public Law 116-136; 134 Stat. 533) is amended--
(1) in subsection (a)(6)--
(A) in subparagraph (E), by striking ``or'' at the
end;
(B) in subparagraph (F), by striking ``and'' at the
end and inserting ``or''; and
(C) by adding at the end the following:
``(G) the Act titled `An Act to provide for
reconciliation pursuant to title II of H. Con. Res. 14';
and''; and
(2) in subsection (k), by striking ``2025'' and inserting
``2034''.
SEC. 90103. APPROPRIATION FOR THE OFFICE OF MANAGEMENT AND BUDGET.
In addition to amounts otherwise available, there is appropriated to
the Office of Management and Budget for fiscal year 2025, out of any
money in the Treasury not otherwise appropriated, $100,000,000, to
remain available until September 30, 2029, for purposes of finding
budget and accounting efficiencies in the executive branch.
[[Page 139 STAT. 364]]
TITLE X-- <<NOTE: Time periods.>> COMMITTEE ON THE JUDICIARY
Subtitle A--Immigration and Law Enforcement Matters
PART I-- <<NOTE: 8 USC 18013et seq.>> IMMIGRATION FEES
SEC. 100001. <<NOTE: 8 USC 1801.>> APPLICABILITY OF THE
IMMIGRATION LAWS.
(a) Applicability.--The fees under this subtitle shall apply to
aliens in the circumstances described in this subtitle.
(b) Terms.--The terms used under this subtitle shall have the
meanings given such terms in section 101 of the Immigration and
Nationality Act (8 U.S.C. 1101).
(c) References to Immigration and Nationality Act.--Except as
otherwise expressly provided, any reference in this subtitle to a
section or other provision shall be considered to be to a section or
other provision of the Immigration and Nationality Act (8 U.S.C. 1101 et
seq.).
SEC. 100002. <<NOTE: 8 USC 1802.>> ASYLUM FEE.
(a) In General.--In addition to any other fee authorized by law, the
Secretary of Homeland Security or the Attorney General, as applicable,
shall require the payment of a fee, equal to the amount specified in
this section, by any alien who files an application for asylum under
section 208 (8 U.S.C. 1158) at the time such application is filed.
(b) Initial Amount.--During fiscal year 2025, the amount specified
in this section shall be the greater of--
(1) $100; or
(2) such amount as the Secretary or the Attorney General, as
applicable, may establish, by rule.
(c) Annual Adjustments for Inflation.--During fiscal year 2026, and
during each subsequent fiscal year, the amount specified in this section
shall be equal to the sum of--
(1) the amount of the fee required under this section for
the most recently concluded fiscal year; and
(2) the product resulting from the multiplication of the
amount referred to in paragraph (1) by the percentage (if any)
by which the Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such adjustment
takes effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar year,
rounded to the next lowest multiple of $10.
(d) Disposition of Asylum Fee Proceeds.--During each fiscal year--
(1) 50 percent of the fees received from aliens filing
applications with the Attorney General--
(A) shall be credited to the Executive Office for
Immigration Review; and
(B) may be retained and expended without further
appropriation;
(2) 50 percent of fees received from aliens filing
applications with the Secretary of Homeland Security--
[[Page 139 STAT. 365]]
(A) shall be credited to U.S. Citizenship and
Immigration Services;
(B) shall be deposited into the Immigration
Examinations Fee Account established under section
286(m) (8 U.S.C. 1356(m)); and
(C) may be retained and expended without further
appropriation; and
(3) any amounts received in fees required under this section
that were not credited to the Executive Office for Immigration
Review pursuant to paragraph (1) or to U.S. Citizenship and
Immigration Services pursuant to paragraph (2) shall be
deposited into the general fund of the Treasury.
(e) No Fee Waiver.--Fees required to be paid under this section
shall not be waived or reduced.
SEC. 100003. <<NOTE: 8 USC 1803.>> EMPLOYMENT AUTHORIZATION
DOCUMENT FEES.
(a) Asylum Applicants.--
(1) In general.--In addition to any other fee authorized by
law, the Secretary of Homeland Security shall require the
payment of a fee, equal to the amount specified in this
subsection, by any alien who files an initial application for
employment authorization under section 208(d)(2) (8 U.S.C.
1158(d)(2)) at the time such initial employment authorization
application is filed.
(2) Initial amount.--During fiscal year 2025, the amount
specified in this subsection shall be the greater of--
(A) $550; or
(B) <<NOTE: Regulations.>> such amount as the
Secretary of Homeland Security may establish, by rule.
(3) Annual adjustments for inflation.--During fiscal year
2026, and during each subsequent fiscal year, the amount
specified in this section shall be equal to the sum of--
(A) the amount of the fee required under this
section for the most recently concluded fiscal year; and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the
percentage (if any) by which the Consumer Price Index
for All Urban Consumers for the month of July preceding
the date on which such adjustment takes effect exceeds
the Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded to
the next lowest multiple of $10.
(4) Disposition of employment authorization document fees.--
During each fiscal year--
(A) 25 percent of the fees collected pursuant to
this subsection--
(i) shall be credited to U.S. Citizenship and
Immigration Services;
(ii) shall be deposited into the Immigration
Examinations Fee Account established under section
286(m) (8 U.S.C. 1356(m)); and
(iii) may be retained and expended by U.S.
Citizenship and Immigration Services without
further appropriation, provided that not less than
50 percent is used to detect and prevent
immigration benefit fraud; and
[[Page 139 STAT. 366]]
(B) any amounts collected pursuant to this
subsection that are not credited to U.S. Citizenship and
Immigration Services pursuant to subparagraph (A) shall
be deposited into the general fund of the Treasury.
(5) No fee waiver.--Fees required to be paid under this
subsection shall not be waived or reduced.
(b) Parolees.--
(1) In general.--In addition to any other fee authorized by
law, the Secretary of Homeland Security shall require the
payment of a fee, equal to the amount specified in this
subsection, by any alien paroled into the United States for any
initial application for employment authorization at the time
such initial application is filed. Each initial employment
authorization shall be valid for a period of 1 year or for the
duration of the alien's parole, whichever is shorter.
(2) Initial amount.--During fiscal year 2025, the amount
specified in this subsection shall be the greater of--
(A) $550; or
(B) such amount as the Secretary of Homeland
Security may establish, by rule.
(3) Annual adjustments for inflation.--During fiscal year
2026, and during each subsequent fiscal year, the amount
specified in this subsection shall be equal to the sum of--
(A) the amount of the fee required under this
subsection for the most recently concluded fiscal year;
and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the
percentage (if any) by which the Consumer Price Index
for All Urban Consumers for the month of July preceding
the date on which such adjustment takes effect exceeds
the Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded to
the next lowest multiple of $10.
(4) Disposition of parolee employment authorization
application fees.--All of the fees collected pursuant to this
subsection shall be deposited into the general fund of the
Treasury.
(5) No fee waiver.--Fees required to be paid under this
subsection shall not be waived or reduced.
(c) Temporary Protected Status.--
(1) In general.--In addition to any other fee authorized by
law, the Secretary of Homeland Security shall require the
payment of a fee, equal to the amount specified in this
subsection, by any alien who files an initial application for
employment authorization under section 244(a)(1)(B) (8 U.S.C.
1254a(a)(1)(B)) at the time such initial application is filed.
Each initial employment authorization shall be valid for a
period of 1 year, or for the duration of the alien's temporary
protected status, whichever is shorter.
(2) Initial amount.--During fiscal year 2025, the amount
specified in this subsection shall be the greater of--
(A) $550; or
(B) <<NOTE: Regulations.>> such amount as the
Secretary of Homeland Security may establish, by rule.
(3) Annual adjustments for inflation.--During fiscal year
2026, and during each subsequent fiscal year, the amount
specified in this subsection shall be equal to the sum of--
[[Page 139 STAT. 367]]
(A) the amount of the fee required under this
subsection for the most recently concluded fiscal year;
and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the
percentage (if any) by which the Consumer Price Index
for All Urban Consumers for the month of July preceding
the date on which such adjustment takes effect exceeds
the Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded to
the next lowest multiple of $10.
(4) Disposition of employment authorization application fees
collected from aliens granted temporary protected status.--All
of the fees collected pursuant to this subsection shall be
deposited into the general fund of the Treasury.
(5) No fee waiver.--Fees required to be paid under this
subsection shall not be waived or reduced.
SEC. 100004. <<NOTE: 8 USC 1804.>> IMMIGRATION PAROLE FEE.
(a) In General.--Except as provided under subsection (b), the
Secretary of Homeland Security shall require the payment of a fee, equal
to the amount specified in this section and in addition to any other fee
authorized by law, by any alien who is paroled into the United States.
(b) Exceptions.--An alien shall not be subject to the fee otherwise
required under subsection (a) if the alien establishes, to the
satisfaction of the Secretary of Homeland Security, on an individual,
case-by-case basis, that the alien is being paroled because--
(1)(A) the alien has a medical emergency; and
(B)(i) the alien cannot obtain necessary treatment in the
foreign state in which the alien is residing; or
(ii) the medical emergency is life-threatening and there is
insufficient time for the alien to be admitted to the United
States through the normal visa process;
(2)(A) the alien is the parent or legal guardian of an alien
described in paragraph (1); and
(B) the alien described in paragraph (1) is a minor;
(3)(A) the alien is needed in the United States to donate an
organ or other tissue for transplant; and
(B) there is insufficient time for the alien to be admitted
to the United States through the normal visa process;
(4)(A) the alien has a close family member in the United
States whose death is imminent; and
(B) the alien could not arrive in the United States in time
to see such family member alive if the alien were to be admitted
to the United States through the normal visa process;
(5)(A) the alien is seeking to attend the funeral of a close
family member; and
(B) the alien could not arrive in the United States in time
to attend such funeral if the alien were to be admitted to the
United States through the normal visa process;
(6) the alien is an adopted child--
(A) who has an urgent medical condition;
(B) who is in the legal custody of the petitioner
for a final adoption-related visa; and
(C) whose medical treatment is required before the
expected award of a final adoption-related visa;
[[Page 139 STAT. 368]]
(7) the alien--
(A) is a lawful applicant for adjustment of status
under section 245 (8 U.S.C. 1255); and
(B) is returning to the United States after
temporary travel abroad;
(8) the alien--
(A) has been returned to a contiguous country
pursuant to section 235(b)(2)(C) (8 U.S.C.
1225(b)(2)(C)); and
(B) is being paroled into the United States to allow
the alien to attend the alien's immigration hearing;
(9) the alien has been granted the status of Cuban and
Haitian entrant (as defined in section 501(e) of the Refugee
Education Assistance Act of 1980 (Public Law 96-422; 8 U.S.C.
1522 note); or
(10) <<NOTE: Determination.>> the Secretary of Homeland
Security determines that a significant public benefit has
resulted or will result from the parole of an alien--
(A) who has assisted or will assist the United
States Government in a law enforcement matter;
(B) whose presence is required by the United States
Government in furtherance of such law enforcement
matter; and
(C)(i) who is inadmissible or does not satisfy the
eligibility requirements for admission as a
nonimmigrant; or
(ii) for which there is insufficient time for the
alien to be admitted to the United States through the
normal visa process.
(c) Initial Amount.--For fiscal year 2025, the amount specified in
this section shall be the greater of--
(1) $1,000; or
(2) <<NOTE: Regulations.>> such amount as the Secretary of
Homeland Security may establish, by rule.
(d) Annual Adjustments for Inflation.--During fiscal year 2026, and
during each subsequent fiscal year, the amount specified in this section
shall be equal to the sum of--
(1) the amount of the fee required under this subsection for
the most recently concluded fiscal year; and
(2) the product resulting from the multiplication of the
amount referred to in paragraph (1) by the percentage (if any)
by which the Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such adjustment
takes effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar year,
rounded to the next lowest multiple of $10.
(e) Disposition of Fees Collected From Aliens Granted Parole.--All
of the fees collected pursuant to this section shall be deposited into
the general fund of the Treasury.
(f) No Fee Waiver.--Except as provided in subsection (b), fees
required to be paid under this section shall not be waived or reduced.
SEC. 100005. <<NOTE: 8 USC 1805.>> SPECIAL IMMIGRANT JUVENILE
FEE.
(a) In General.--In addition to any other fee authorized by law, the
Secretary of Homeland Security shall require the payment of a fee, equal
to the amount specified in this section, by any alien, parent, or legal
guardian of an alien applying for special
[[Page 139 STAT. 369]]
immigrant juvenile status under section 101(a)(27)(J) (8 U.S.C.
1101(a)(27)(J)).
(b) Initial Amount.--For fiscal year 2025, the amount specified in
this section shall be the greater of--
(1) $250; or
(2) <<NOTE: Regulations.>> such amount as the Secretary of
Homeland Security may establish, by rule.
(c) Annual Adjustments for Inflation.--During fiscal year 2026, and
during each subsequent fiscal year, the amount specified in this section
shall be equal to the sum of--
(1) the amount of the fee required under this subsection for
the most recently concluded fiscal year; and
(2) the product resulting from the multiplication of the
amount referred to in paragraph (1) by the percentage (if any)
by which the Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such adjustment
takes effect exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding calendar year,
rounded to the next lowest multiple of $10.
(d) Disposition of Special Immigrant Juvenile Fees.--All of the fees
collected pursuant to this section shall be deposited into the general
fund of the Treasury.
SEC. 100006. TEMPORARY PROTECTED STATUS FEE.
Section 244(c)(1)(B) of the Immigration and Nationality Act (8
U.S.C. 1254a(c)(1)(B)) is amended--
(1) by striking ``The Attorney General'' and inserting the
following:
``(i) In general.--The Attorney General'';
(2) in clause (i), as redesignated, by striking ``$50'' and
inserting ``$500, subject to the adjustments required under
clause (ii)''; and
(3) by adding at the end the following:
``(ii) Annual adjustments for inflation.--
During fiscal year 2026, and during each
subsequent fiscal year, the maximum amount of the
fee authorized under clause (i) shall be equal to
the sum of--
``(I) the maximum amount of the fee
authorized under this subparagraph for
the most recently concluded fiscal year;
and
``(II) the product resulting from
the multiplication of the amount
referred to in subclause (I) by the
percentage (if any) by which the
Consumer Price Index for All Urban
Consumers for the month of July
preceding the date on which such
adjustment takes effect exceeds the
Consumer Price Index for All Urban
Consumers for the same month of the
preceding calendar year, rounded to the
next lowest multiple of $10.
``(iii) Disposition of temporary protected
status fees.--All of the fees collected pursuant
to this subparagraph shall be deposited into the
general fund of the Treasury.
``(iv) No fee waiver.--Fees required to be
paid under this subparagraph shall not be waived
or reduced.''.
[[Page 139 STAT. 370]]
SEC. 100007. <<NOTE: 8 USC 1806.>> VISA INTEGRITY FEE.
(a) Visa Integrity Fee.--
(1) In general.--In addition to any other fee authorized by
law, the Secretary of Homeland Security shall require the
payment of a fee, equal to the amount specified in this
subsection, by any alien issued a nonimmigrant visa at the time
of such issuance.
(2) Initial amount.--For fiscal year 2025, the amount
specified in this section shall be the greater of--
(A) $250; or
(B) <<NOTE: Regulations.>> such amount as the
Secretary of Homeland Security may establish, by rule.
(3) Annual adjustments for inflation.--During fiscal year
2026, and during each subsequent fiscal year, the amount
specified in this section shall be equal to the sum of--
(A) the amount of the fee required under this
subsection for the most recently concluded fiscal year;
and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the
percentage (if any) by which the Consumer Price Index
for All Urban Consumers for the month of July preceding
the date on which such adjustment takes effect exceeds
the Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded down
to the nearest dollar.
(4) Disposition of visa integrity fees.--All of the fees
collected pursuant to this section that are not reimbursed
pursuant to subsection (b) shall be deposited into the general
fund of the Treasury.
(5) No fee waiver.--Fees required to be paid under this
subsection shall not be waived or reduced.
(b) Fee Reimbursement.--The Secretary of Homeland Security may
provide a reimbursement to an alien of the fee required under subsection
(a) for the issuance of a nonimmigrant visa after the expiration of such
nonimmigrant visa's period of validity if such alien demonstrates that
he or she--
(1) after admission to the United States pursuant to such
nonimmigrant visa, complied with all conditions of such
nonimmigrant visa, including the condition that an alien shall
not accept unauthorized employment; and
(2)(A) <<NOTE: Deadline.>> has not sought to extend his or
her period of admission during such period of validity and
departed the United States not later than 5 days after the last
day of such period; or
(B) during such period of validity, was granted an extension
of such nonimmigrant status or an adjustment to the status of a
lawful permanent resident.
SEC. 100008. <<NOTE: 8 USC 1807.>> FORM I-94 FEE.
(a) Fee Authorized.--In addition to any other fee authorized by law,
the Secretary of Homeland Security shall require the payment of a fee,
equal to the amount specified in subsection (b), by any alien who
submits an application for a Form I-94 Arrival/Departure Record.
(b) Amount Specified.--
(1) Initial amount.--For fiscal year 2025, the amount
specified in this section shall be the greater of--
[[Page 139 STAT. 371]]
(A) $24; or
(B) <<NOTE: Regulations.>> such amount as the
Secretary of Homeland Security may establish, by rule.
(2) Annual adjustments for inflation.--During fiscal year
2026, and during each subsequent fiscal year, the amount
specified in this section shall be equal to the sum of--
(A) the amount of the fee required under this
subsection for the most recently concluded fiscal year;
and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the
percentage (if any) by which the Consumer Price Index
for All Urban Consumers for the month of July preceding
the date on which such adjustment takes effect exceeds
the Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded down
to the nearest dollar.
(c) Disposition of Form I-94 Fees.--During each fiscal year--
(1) 20 percent of the fees collected pursuant to this
section--
(A) shall be deposited into the Land Border
Inspection Fee Account in accordance with section
286(q)(2) (8 U.S.C. 1356(q)(2)); and
(B) shall be made available to U.S. Customs and
Border Protection to retain and spend without further
appropriation for the purpose of processing Form I-94;
and
(2) any amounts not deposited into the Land Border
Inspection Fee Account pursuant to paragraph (1)(A) shall be
deposited in the general fund of the Treasury.
(d) No Fee Waiver.--Fees required to be paid under this section
shall not be waived or reduced.
SEC. 100009. <<NOTE: 8 USC 1808.>> ANNUAL ASYLUM FEE.
(a) Fee Authorized.--In addition to any other fee authorized by law,
for each calendar year that an alien's application for asylum remains
pending, the Secretary of Homeland Security or the Attorney General, as
applicable, shall require the payment of a fee, equal to the amount
specified in subsection (b), by such alien.
(b) Amount Specified.--
(1) Initial amount.--For fiscal year 2025, the amount
specified in this section shall be the greater of--
(A) $100; or
(B) <<NOTE: Regulations.>> such amount as the
Secretary of Homeland Security may establish, by rule.
(2) Annual adjustments for inflation.--During fiscal year
2026, and during each subsequent fiscal year, the amount
specified in this section shall be equal to the sum of--
(A) the amount of the fee required under this
subsection for the most recently concluded fiscal year;
and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the
percentage (if any) by which the Consumer Price Index
for All Urban Consumers for the month of July preceding
the date on which such adjustment takes effect exceeds
the Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded down
to the nearest dollar.
[[Page 139 STAT. 372]]
(c) Disposition of Annual Asylum Fees.--All of the fees collected
pursuant to this section shall be deposited into the general fund of the
Treasury.
(d) No Fee Waiver.--Fees required to be paid under this section
shall not be waived or reduced.
SEC. 100010. <<NOTE: 8 USC 1809.>> FEE RELATING TO RENEWAL AND
EXTENSION OF EMPLOYMENT
AUTHORIZATION FOR PAROLEES.
(a) In General.--In addition to any other fee authorized by law, the
Secretary of Homeland Security shall require the payment of a fee, equal
to the amount specified in subsection (b), for any parolee who seeks a
renewal or extension of employment authorization based on a grant of
parole. The employment authorization for each alien paroled into the
United States, or any renewal or extension of such parole, shall be
valid for a period of 1 year or for the duration of the alien's parole,
whichever is shorter.
(b) Amount Specified.--
(1) Initial amount.--For fiscal year 2025, the amount
specified in this subsection shall be the greater of--
(A) $275; or
(B) <<NOTE: Regulations.>> such amount as the
Secretary of Homeland Security may establish, by rule.
(2) Annual adjustments for inflation.--During fiscal year
2026, and during each subsequent fiscal year, the amount
specified in this section shall be equal to the sum of--
(A) the amount of the fee required under this
subsection for the most recently concluded fiscal year;
and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the
percentage (if any) by which the Consumer Price Index
for All Urban Consumers for the month of July preceding
the date on which such adjustment takes effect exceeds
the Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded to
the next lowest multiple of $10.
(c) Disposition of Fees Relating to Renewal and Extension of
Employment Authorization for Parolees.--During each fiscal year--
(1) 25 percent of the fees collected pursuant to this
section--
(A) shall be credited to U.S. Citizenship and
Immigration Services;
(B) shall be deposited into the Immigration
Examinations Fee Account established under section
286(m) (8 U.S.C. 1356(m)); and
(C) may be retained and expended by U.S. Citizenship
and Immigration Services without further appropriation;
and
(2) any amounts collected pursuant to this section that are
not credited to U.S. Citizenship and Immigration Services
pursuant to subparagraph (A) shall be deposited into the general
fund of the Treasury.
(d) No Fee Waiver.--Fees required to be paid under this section
shall not be waived or reduced.
SEC. 100011. <<NOTE: 8 USC 1810.>> FEE RELATING TO RENEWAL OR
EXTENSION OF EMPLOYMENT
AUTHORIZATION FOR ASYLUM APPLICANTS.
(a) In General.--In addition to any other fee authorized by law, the
Secretary of Homeland Security shall require the payment
[[Page 139 STAT. 373]]
of a fee of not less than $275 by any alien who has applied for asylum
for each renewal or extension of employment authorization based on such
application.
(b) Termination.--Each initial employment authorization, or renewal
or extension of such authorization, shall terminate--
(1) immediately following the denial of an asylum
application by an asylum officer, unless the case is referred to
an immigration judge;
(2) on the date that is 30 days after the date on which an
immigration judge denies an asylum application, unless the alien
makes a timely appeal to the Board of Immigration Appeals; or
(3) immediately following the denial by the Board of
Immigration Appeals of an appeal of a denial of an asylum
application.
(c) Disposition of Fees Relating to Renewal and Extension of
Employment Authorization for Asylum Applicants.--During each fiscal
year--
(1) 25 percent of the fees collected pursuant to this
section--
(A) shall be credited to U.S. Citizenship and
Immigration Services;
(B) shall be deposited into the Immigration
Examinations Fee Account established under section
286(m) (8 U.S.C. 1356(m)); and
(C) may be retained and expended by U.S. Citizenship
and Immigration Services without further appropriation;
and
(2) any amounts collected pursuant to this section that are
not credited to U.S. Citizenship and Immigration Services
pursuant to subparagraph (A) shall be deposited into the general
fund of the Treasury.
(d) No Fee Waiver.--Fees required to be paid under this section
shall not be waived or reduced.
SEC. 100012. <<NOTE: 8 USC 1811.>> FEE RELATING TO RENEWAL AND
EXTENSION OF EMPLOYMENT
AUTHORIZATION FOR ALIENS GRANTED
TEMPORARY PROTECTED STATUS.
(a) In General.--In addition to any other fee authorized by law, the
Secretary of Homeland Security shall require the payment of a fee, equal
to the amount specified in subsection (b), by any alien at the time such
alien seeks a renewal or extension of employment authorization based on
a grant of temporary protected status. Any employment authorization for
an alien granted temporary protected status, or any renewal or extension
of such employment authorization, shall be valid for a period of 1 year
or for the duration of the designation of temporary protected status,
whichever is shorter.
(b) Amount Specified.--
(1) Initial amount.--For fiscal year 2025, the amount
specified in this subsection shall be the greater of--
(A) $275; or
(B) <<NOTE: Regulations.>> such amount as the
Secretary of Homeland Security may establish, by rule.
(2) Annual adjustments for inflation.--During fiscal year
2026, and during each subsequent fiscal year, the amount
specified in this section shall be equal to the sum of--
[[Page 139 STAT. 374]]
(A) the amount of the fee required under this
subsection for the most recently concluded fiscal year;
and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the
percentage (if any) by which the Consumer Price Index
for All Urban Consumers for the month of July preceding
the date on which such adjustment takes effect exceeds
the Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded to
the next lowest multiple of $10.
(c) Disposition of Fees Relating to Renewal and Extension of
Employment Authorization for Temporary Protected Status Applicants.--
During each fiscal year--
(1) 25 percent of the fees collected pursuant to this
section--
(A) shall be credited to U.S. Citizenship and
Immigration Services;
(B) shall be deposited into the Immigration
Examinations Fee Account established under section
286(m) (8 U.S.C. 1356(m)); and
(C) may be retained and expended by U.S. Citizenship
and Immigration Services without further appropriation;
and
(2) any amounts collected pursuant to this section that are
not credited to U.S. Citizenship and Immigration Services
pursuant to subparagraph (A) shall be deposited into the general
fund of the Treasury.
(d) No Fee Waiver.--Fees required to be paid under this section
shall not be waived or reduced.
SEC. 100013. <<NOTE: Regulations. 8 USC 1812.>> FEES RELATING TO
APPLICATIONS FOR ADJUSTMENT OF
STATUS.
8 USC
1812.
(a) Fee for Filing an Application to Adjust Status to That of a
Lawful Permanent Resident.--
(1) <<NOTE: Courts.>> In general.--In addition to any other
fees authorized by law, the Attorney General shall require the
payment of a fee, equal to the amount specified in paragraph
(2), by any alien who files an application with an immigration
court to adjust the alien's status to that of a lawful permanent
resident, or whose application to adjust his or her status to
that of a lawful permanent resident is adjudicated in
immigration court. Such fee shall be paid at the time such
application is filed or before such application is adjudicated
by the immigration court.
(2) Amount specified.--
(A) Initial amount.--For fiscal year 2025, the
amount specified in this paragraph shall be the greater
of--
(i) $1,500; or
(ii) such amount as the Attorney General may
establish, by rule.
(B) Annual adjustments for inflation.--During fiscal
year 2026, and during each subsequent fiscal year, the
amount specified in this paragraph shall be equal to the
sum of--
(i) the amount of the fee required under this
subsection for the most recently concluded fiscal
year; and
[[Page 139 STAT. 375]]
(ii) the product resulting from the
multiplication of the amount referred to in clause
(i) by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month
of the preceding calendar year, rounded to the
next lowest multiple of $10.
(3) Disposition of adjustment of status application fees.--
During each fiscal year--
(A) not more than 25 percent of the fees collected
pursuant to this subsection--
(i) shall be derived by transfer from the
Immigration Examinations Fee Account under section
286(n) (8 U.S.C. 1356(n)); and
(ii) shall be credited to the Executive Office
for Immigration Review to retain and spend without
further appropriation; and
(B) any amounts not derived by transfer and credited
pursuant to subparagraph (A) shall be deposited into the
general fund of the Treasury.
(b) Fee for Filing Application for Waiver of Grounds of
Inadmissibility.--
(1) <<NOTE: Courts.>> In general.--In addition to any other
fees authorized by law, the Attorney General shall require the
payment of a fee, equal to the amount specified in paragraph
(2), by any alien at the time such alien files an application
with an immigration court for a waiver of a ground of
inadmissibility, or before such application is adjudicated by
the immigration court.
(2) Amount specified.--
(A) Initial amount.--For fiscal year 2025, the
amount specified in this paragraph shall be the greater
of--
(i) $1,050; or
(ii) such amount as the Attorney General may
establish, by rule.
(B) Annual adjustments for inflation.--During fiscal
year 2026, and during each subsequent fiscal year, the
amount specified in this paragraph shall be equal to the
sum of--
(i) the amount of the fee required under this
subsection for the most recently concluded fiscal
year; and
(ii) the product resulting from the
multiplication of the amount referred to in clause
(i) by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month
of the preceding calendar year, rounded to the
next lowest multiple of $10.
(3) Disposition of waiver of ground of admissibility
application fees.--During each fiscal year--
(A) not more than 25 percent of the fees collected
pursuant to this subsection--
[[Page 139 STAT. 376]]
(i) shall be derived by transfer from the
Immigration Examinations Fee Account under section
286(n) (8 U.S.C. 1356(n)); and
(ii) shall be credited to the Executive Office
for Immigration Review to retain and spend without
further appropriation; and
(B) any amounts not derived by transfer and credited
pursuant to subparagraph (A) shall be deposited into the
general fund of the Treasury.
(c) Fee for Filing an Application for Temporary Protected Status.--
(1) <<NOTE: Courts.>> In general.--In addition to any other
fees authorized by law, the Attorney General shall require the
payment of a fee, equal to the amount specified in paragraph
(2), by any alien at the time such alien files an application
with an immigration court for temporary protected status, or
before such application is adjudicated by the immigration court.
(2) Amount specified.--
(A) Initial amount.--For fiscal year 2025, the
amount specified in this paragraph shall be the greater
of--
(i) $500; or
(ii) such amount as the Attorney General may
establish, by rule.
(B) Annual adjustments for inflation.--During fiscal
year 2026, and during each subsequent fiscal year, the
amount specified in this paragraph shall be equal to the
sum of--
(i) the amount of the fee required under this
subsection for the most recently concluded fiscal
year; and
(ii) the product resulting from the
multiplication of the amount referred to in clause
(i) by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month
of the preceding calendar year, rounded to the
next lowest multiple of $10.
(3) Disposition of temporary protected status application
fees.--During each fiscal year--
(A) not more than 25 percent of the fees collected
pursuant to this subsection--
(i) shall be derived by transfer from the
Immigration Examinations Fee Account under section
286(n) (8 U.S.C. 1356(n)); and
(ii) shall be credited to the Executive Office
for Immigration Review to retain and spend without
further appropriation; and
(B) any amounts not derived by transfer and credited
pursuant to subparagraph (A) shall be deposited into the
general fund of the Treasury.
(d) Fee for Filing an Appeal of a Decision of an Immigration
Judge.--
(1) In general.--Except as provided in paragraph (3), the
Attorney General shall require, in addition to any other fees
authorized by law, the payment of a fee, equal to the amount
[[Page 139 STAT. 377]]
specified in paragraph (2), by any alien at the time such alien
files an appeal from a decision of an immigration judge.
(2) Amount specified.--
(A) Initial amount.--For fiscal year 2025, the
amount specified in this paragraph shall be the greater
of--
(i) $900; or
(ii) such amount as the Attorney General may
establish, by rule.
(B) Annual adjustments for inflation.--During fiscal
year 2026, and during each subsequent fiscal year, the
amount specified in this paragraph shall be equal to the
sum of--
(i) the amount of the fee required under this
subsection for the most recently concluded fiscal
year; and
(ii) the product resulting from the
multiplication of the amount referred to in clause
(i) by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month
of the preceding calendar year, rounded to the
next lowest multiple of $10.
(3) Exception.--The fee required under paragraph (1) shall
not apply to the appeal of a bond decision.
(4) Disposition of fees for appealing immigration judge
decisions.--During each fiscal year--
(A) not more than 25 percent of the fees collected
pursuant to this subsection--
(i) shall be derived by transfer from the
Immigration Examinations Fee Account under section
286(n) (8 U.S.C. 1356(n)); and
(ii) shall be credited to the Executive Office
for Immigration Review to retain and spend without
further appropriation; and
(B) any amounts not derived by transfer and credited
pursuant to subparagraph (A) shall be deposited into the
general fund of the Treasury.
(e) Fee for Filing an Appeal From a Decision of an Officer of the
Department of Homeland Security.--
(1) In general.--In addition to any other fees authorized by
law, the Attorney General shall require the payment of a fee,
equal to the amount specified in paragraph (2), by any alien at
the time such alien files an appeal of a decision of an officer
of the Department of Homeland Security.
(2) Amount specified.--
(A) Initial amount.--For fiscal year 2025, the
amount specified in this paragraph shall be the greater
of--
(i) $900; or
(ii) such amount as the Attorney General may
establish, by rule.
(B) Annual adjustments for inflation.--During fiscal
year 2026, and during each subsequent fiscal year, the
amount specified in this paragraph shall be equal to the
sum of--
[[Page 139 STAT. 378]]
(i) the amount of the fee required under this
subsection for the most recently concluded fiscal
year; and
(ii) the product resulting from the
multiplication of the amount referred to in clause
(i) by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month
of the preceding calendar year, rounded to the
next lowest multiple of $10.
(3) Disposition of fees for appealing department of homeland
security officer decisions.--During each fiscal year--
(A) not more than 25 percent of the fees collected
pursuant to this subsection--
(i) shall be derived by transfer from the
Immigration Examinations Fee Account under section
286(n) (8 U.S.C. 1356(n)); and
(ii) shall be credited to the Executive Office
for Immigration Review to retain and spend without
further appropriation; and
(B) any amounts not derived by transfer and credited
pursuant to subparagraph (A) shall be deposited into the
general fund of the Treasury.
(f) Fee for Filing an Appeal From a Decision of an Adjudicating
Official in a Practitioner Disciplinary Case.--
(1) In general.--In addition to any other fees authorized by
law, the Attorney General shall require the payment of a fee,
equal to the amount specified in paragraph (2), by any
practitioner at the time such practitioner files an appeal from
a decision of an adjudicating official in a practitioner
disciplinary case.
(2) Amount specified.--
(A) Initial amount.--For fiscal year 2025, the
amount specified in this paragraph shall be the greater
of--
(i) $1,325; or
(ii) such amount as the Attorney General may
establish, by rule.
(B) Annual adjustments for inflation.--During fiscal
year 2026, and during each subsequent fiscal year, the
amount specified in this paragraph shall be equal to the
sum of--
(i) the amount of the fee required under this
subsection for the most recently concluded fiscal
year; and
(ii) the product resulting from the
multiplication of the amount referred to in clause
(i) by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month
of the preceding calendar year, rounded to the
next lowest multiple of $10.
(3) Disposition of fees for appealing department of homeland
security officer decisions.--During each fiscal year--
[[Page 139 STAT. 379]]
(A) not more than 25 percent of the fees collected
pursuant to this subsection--
(i) shall be derived by transfer from the
Immigration Examinations Fee Account under section
286(n) (8 U.S.C. 1356(n)); and
(ii) shall be credited to the Executive Office
for Immigration Review to retain and spend without
further appropriation; and
(B) any amounts not derived by transfer and credited
pursuant to subparagraph (A) shall be deposited into the
general fund of the Treasury.
(g) Fee for Filing a Motion to Reopen or a Motion to Reconsider.--
(1) <<NOTE: Courts.>> In general.--Except as provided in
paragraph (3), in addition to any other fees authorized by law,
the Attorney General shall require the payment of a fee, equal
to the amount specified in paragraph (2), by any alien at the
time such alien files a motion to reopen or motion to reconsider
a decision of an immigration judge or the Board of Immigration
Appeals.
(2) Amount specified.--
(A) Initial amount.--For fiscal year 2025, the
amount specified in this paragraph shall be the greater
of--
(i) $900; or
(ii) such amount as the Attorney General may
establish, by rule.
(B) Annual adjustments for inflation.--During fiscal
year 2026, and during each subsequent fiscal year, the
amount specified in this paragraph shall be equal to the
sum of--
(i) the amount of the fee required under this
subsection for the most recently concluded fiscal
year; and
(ii) the product resulting from the
multiplication of the amount referred to in clause
(i) by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month
of the preceding calendar year, rounded to the
next lowest multiple of $10.
(3) Exceptions.--The fee required under paragraph (1) shall
not apply to--
(A) a motion to reopen a removal order entered in
absentia if such motion is filed in accordance with
section 240(b)(5)(C)(ii) (8 U.S.C. 1229a(b)(5)(C)(ii));
or
(B) <<NOTE: Effective date.>> a motion to reopen a
deportation order entered in absentia if such motion is
filed in accordance with section 242B(c)(3)(B) prior to
April 1, 1997.
(4) Disposition of fees for filing certain motions.--During
each fiscal year--
(A) not more than 25 percent of the fees collected
pursuant to this subsection--
(i) shall be derived by transfer from the
Immigration Examinations Fee Account under section
286(n) (8 U.S.C. 1356(n)); and
[[Page 139 STAT. 380]]
(ii) shall be credited to the Executive Office
for Immigration Review to retain and spend without
further appropriation; and
(B) any amounts not derived by transfer and credited
pursuant to subparagraph (A) shall be deposited into the
general fund of the Treasury.
(h) Fee for Filing Application for Suspension of Deportation.--
(1) In general.--In addition to any other fees authorized by
law, the Attorney General shall require the payment of a fee,
equal to the amount specified in paragraph (2), by any alien at
the time such alien files an application with an immigration
court for suspension of deportation.
(2) Amount specified.--
(A) Initial amount.--For fiscal year 2025, the
amount specified in this paragraph shall be the greater
of--
(i) $600; or
(ii) such amount as the Attorney General may
establish, by rule.
(B) Annual adjustments for inflation.--During fiscal
year 2026, and during each subsequent fiscal year, the
amount specified in this paragraph shall be equal to the
sum of--
(i) the amount of the fee required under this
subsection for the most recently concluded fiscal
year; and
(ii) the product resulting from the
multiplication of the amount referred to in clause
(i) by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month
of the preceding calendar year, rounded to the
next lowest multiple of $10.
(3) Disposition of fees for filing application for
suspension of deportation.--During each fiscal year--
(A) not more than 25 percent of the fees collected
pursuant to this subsection--
(i) shall be derived by transfer from the
Immigration Examinations Fee Account under section
286(n) (8 U.S.C. 1356(n)); and
(ii) shall be credited to the Executive Office
for Immigration Review to retain and spend without
further appropriation; and
(B) any amounts not derived by transfer and credited
pursuant to subparagraph (A) shall be deposited into the
general fund of the Treasury.
(i) Fee for Filing Application for Cancellation of Removal for
Certain Permanent Residents.--
(1) <<NOTE: Courts.>> In general.--In addition to any other
fees authorized by law, the Attorney General shall require the
payment of a fee, equal to the amount specified in paragraph
(2), by any alien at the time such alien files an application
with an immigration court an application for cancellation of
removal for an alien who is a lawful permanent resident.
(2) Amount specified.--
[[Page 139 STAT. 381]]
(A) Initial amount.--For fiscal year 2025, the
amount specified in this paragraph shall be the greater
of--
(i) $600; or
(ii) such amount as the Attorney General may
establish, by rule.
(B) Annual adjustments for inflation.--During fiscal
year 2026, and during each subsequent fiscal year, the
amount specified in this paragraph shall be equal to the
sum of--
(i) the amount of the fee required under this
subsection for the most recently concluded fiscal
year; and
(ii) the product resulting from the
multiplication of the amount referred to in clause
(i) by the percentage (if any) by which the
Consumer Price Index for All Urban Consumers for
the month of July preceding the date on which such
adjustment takes effect exceeds the Consumer Price
Index for All Urban Consumers for the same month
of the preceding calendar year, rounded to the
next lowest multiple of $10.
(3) Disposition of fees for filing application for
cancellation of removal.--During each fiscal year--
(A) not more than 25 percent of the fees collected
pursuant to this subsection--
(i) shall be derived by transfer from the
Immigration Examinations Fee Account under section
286(n) (8 U.S.C. 1356(n)); and
(ii) shall be credited to the Executive Office
for Immigration Review to retain and spend without
further appropriation; and
(B) any amounts not derived by transfer and credited
pursuant to subparagraph (A) shall be deposited into the
general fund of the Treasury.
(j) Fee for Filing an Application for Cancellation of Removal and
Adjustment of Status for Certain Nonpermanent Residents.--
(1) In general.--In addition to any other fees authorized by
law, the Attorney General shall require the payment of a fee,
equal to the amount specified in paragraph (2), by any alien who
is not a lawful permanent resident at the time such alien files
an application with an immigration court for cancellation of
removal and adjustment of status for any alien.
(2) Amount specified.--
(A) Initial amount.--For fiscal year 2025, the
amount specified in this paragraph shall be the greater
of--
(i) $1,500; or
(ii) such amount as the Attorney General may
establish, by rule.
(B) Annual adjustments for inflation.--During fiscal
year 2026, and during each subsequent fiscal year, the
amount specified in this paragraph shall be equal to the
sum of--
(i) the amount of the fee required under this
subsection for the most recently concluded fiscal
year; and
(ii) the product resulting from the
multiplication of the amount referred to in clause
(i) by the percentage
[[Page 139 STAT. 382]]
(if any) by which the Consumer Price Index for All
Urban Consumers for the month of July preceding
the date on which such adjustment takes effect
exceeds the Consumer Price Index for All Urban
Consumers for the same month of the preceding
calendar year, rounded to the next lowest multiple
of $10.
(3) Disposition of fees for filing application for
cancellation of removal.--During each fiscal year--
(A) not more than 25 percent of the fees collected
pursuant to this subsection--
(i) shall be derived by transfer from the
Immigration Examinations Fee Account under section
286(n) (8 U.S.C. 1356(n)); and
(ii) shall be credited to the Executive Office
for Immigration Review to retain and spend without
further appropriation; and
(B) any amounts not derived by transfer and credited
pursuant to subparagraph (A) shall be deposited into the
general fund of the Treasury.
(k) Limitation on Use of Funds.--No fees collected pursuant to this
section may be expended by the Executive Office for Immigration Review
for the Legal Orientation Program, or for any successor program.
SEC. 100014. ELECTRONIC SYSTEM FOR TRAVEL AUTHORIZATION FEE.
Section 217(h)(3)(B) (8 U.S.C. 1187(h)(3)(B)) is amended--
(1) in clause (i)--
(A) in subclause (I), by striking ``and'' at the
end;
(B) in subclause (II)--
(i) by inserting ``of not less than $10''
after ``an amount''; and
(ii) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(III) not less than $13 per travel
authorization.'';
(2) in clause (iii), by striking ``October 31, 2028'' and
inserting ``October 31, 2034''; and
(3) by adding at the end the following:
``(iv) Subsequent adjustment.--During fiscal
year 2026 and each subsequent fiscal year, the
amount specified in clause (i)(II) for a fiscal
year shall be equal to the sum of--
``(I) the amount of the fee required
under this subparagraph during the most
recently concluded fiscal year; and
``(II) the product of the amount
referred to in subclause (I) multiplied
by the percentage (if any) by which the
Consumer Price Index for All Urban
Consumers for the month of July
preceding the date on which such
adjustment takes effect exceeds the
Consumer Price Index for All Urban
Consumers for the same month of the
preceding calendar year.''.
SEC. 100015. <<NOTE: 8 USC 1813.>> ELECTRONIC VISA UPDATE SYSTEM
FEE.
(a) In General.--In addition to any other fee authorized by law, the
Secretary of Homeland Security shall require the payment
[[Page 139 STAT. 383]]
of a fee, in the amount specified in subsection (b), by any alien
subject to the Electronic Visa Update System at the time of such alien's
enrollment in such system.
(b) Amount Specified.--
(1) In general.--For fiscal year 2025, the amount specified
in this subsection shall be the greater of--
(A) $30; or
(B) <<NOTE: Regulations.>> such amount as the
Secretary of Homeland Security may establish, by rule.
(2) Annual adjustments for inflation.--During fiscal year
2026 and each subsequent fiscal year, the amount specified in
this subsection shall be equal to the sum of--
(A) the amount of the fee required under this
subsection during the most recently concluded fiscal
year; and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the
percentage (if any) by which the Consumer Price Index
for All Urban Consumers for the month of July preceding
the date on which such adjustment takes effect exceeds
the Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded to
the next lowest multiple of $0.25.
(c) Disposition of Electronic Visa Update System Fees.--
(1) In general.--Section 286 (8 U.S.C. 1356) is amended by
adding at the end the following:
``(w) CBP Electronic Visa Update System Account.--
``(1) Establishment.--There is established in the general
fund of the Treasury a separate account, which shall be known as
the `CBP Electronic Visa Update System Account' (referred to in
this subsection as the `Account').
``(2) Deposits.--There shall be deposited into the Account
an amount equal to the difference between--
``(A) all of the fees received pursuant to section
100015 of the Act entitled `An Act to provide for
reconciliation pursuant to title II of H. Con. Res. 14'
(119th Congress); and
``(B) an amount equal to $5 multiplied by the number
of payments collected pursuant to such section.
``(3) Appropriation.--Amounts deposited in the Account--
``(A) are hereby appropriated to make payments and
offset program costs in accordance with section 100015
of the Act entitled `An Act to provide for
reconciliation pursuant to title II of H. Con. Res. 14'
(119th Congress), without further appropriation; and
``(B) shall remain available until expended for any
U.S. Customs and Border Protection costs associated with
administering the CBP Electronic Visa Update System.''.
(2) Remaining fees.--Of the fees collected pursuant to this
section, an amount equal to $5 multiplied by the number of
payments collected pursuant to this section shall be deposited
to the general fund of the Treasury.
(d) No Fee Waiver.--Fees required to be paid under this section
shall not be waived or reduced.
[[Page 139 STAT. 384]]
SEC. 100016. <<NOTE: 8 USC 1814.>> FEE FOR ALIENS ORDERED REMOVED
IN ABSENTIA.
(a) <<NOTE: Reimbursement.>> In General.--As partial reimbursement
for the cost of arresting an alien described in this section, the
Secretary of Homeland Security, except as provided in subsection (c),
shall require the payment of a fee, equal to the amount specified in
subsection (b) on any alien who--
(1) is ordered removed in absentia pursuant to section
240(b)(5) (8 U.S.C. 1229a(b)(5)); and
(2) is subsequently arrested by U.S. Immigration and Customs
Enforcement.
(b) Amount Specified.--
(1) Initial amount.--For fiscal year 2025, the amount
specified in this section shall be the greater of--
(A) $5,000; or
(B) <<NOTE: Regulations.>> such amount as the
Secretary of Homeland Security may establish, by rule.
(2) Annual adjustments for inflation.--During fiscal year
2026, and during each subsequent fiscal year, the amount
specified in this section shall be equal to the sum of--
(A) the amount of the fee required under this
subsection for the most recently concluded fiscal year;
and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the
percentage (if any) by which the Consumer Price Index
for All Urban Consumers for the month of July preceding
the date on which such adjustment takes effect exceeds
the Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded to
the next lowest multiple of $10.
(c) Exception.--The fee described in this section shall not apply to
any alien who was ordered removed in absentia if such order was
rescinded pursuant to section 240(b)(5)(C) (8 U.S.C. 1229a(b)(5)(C)).
(d) Disposition of Removal in Absentia Fees.--During each fiscal
year--
(1) 50 percent of the fees collected pursuant to this
section--
(A) shall be credited to U.S. Immigration and
Customs Enforcement;
(B) shall be deposited into the Detention and
Removal Office Fee Account; and
(C) may be retained and expended by U.S. Immigration
and Customs Enforcement without further appropriation;
and
(2) any amounts collected pursuant to this section that are
not credited to U.S. Immigration and Customs Enforcement
pursuant to paragraph (1) shall be deposited into the general
fund of the Treasury.
(e) No Fee Waiver.--Fees required to be paid under this section
shall not be waived or reduced.
SEC. 100017. <<NOTE: 8 USC 1815.>> INADMISSIBLE ALIEN
APPREHENSION FEE.
(a) In General.--In addition to any other fee authorized by law, the
Secretary of Homeland Security shall require the payment of a fee, equal
to the amount specified in subsection (b), by any inadmissible alien at
the time such alien is apprehended between ports of entry.
(b) Amount Specified.--
[[Page 139 STAT. 385]]
(1) Initial amount.--For fiscal year 2025, the amount
specified in this section shall be the greater of--
(A) $5,000; or
(B) <<NOTE: Regulations.>> such amount as the
Secretary of Homeland Security may establish, by rule.
(2) Annual adjustments for inflation.--During fiscal year
2026, and during each subsequent fiscal year, the amount
specified in this section shall be equal to the sum of--
(A) the amount of the fee required under this
subsection for the most recently concluded fiscal year;
and
(B) the product resulting from the multiplication of
the amount referred to in subparagraph (A) by the
percentage (if any) by which the Consumer Price Index
for All Urban Consumers for the month of July preceding
the date on which such adjustment takes effect exceeds
the Consumer Price Index for All Urban Consumers for the
same month of the preceding calendar year, rounded to
the next lowest multiple of $10.
(c) Disposition of Inadmissible Alien Apprehension Fees.--During
each fiscal year--
(1) 50 percent of the fees collected pursuant to this
section--
(A) shall be credited to U.S. Immigration and
Customs Enforcement;
(B) shall be deposited into the Detention and
Removal Office Fee Account; and
(C) may be retained and expended by U.S. Immigration
and Customs Enforcement without further appropriation;
and
(2) any amounts collected pursuant to this section that are
not credited to U.S. Immigration and Customs Enforcement
pursuant to paragraph (1) shall be deposited into the general
fund of the Treasury.
(d) Disposition of Inadmissible Alien Apprehension Fees.--All of the
fees collected pursuant to this section shall be deposited into the
general fund of the Treasury.
SEC. 100018. AMENDMENT TO AUTHORITY TO APPLY FOR ASYLUM.
Section 208(d)(3) (8 U.S.C. 1158(d)(3)) is amended--
(1) in the first sentence, by striking ``may'' and inserting
``shall'';
(2) by striking ``Such fees shall not exceed'' and all that
follows and inserting the following: ``Nothing in this paragraph
may be construed to limit the authority of the Attorney General
to set additional adjudication and naturalization fees in
accordance with section 286(m).''.
PART II <<NOTE: Appropriations authorizations. Time periods.>> --
IMMIGRATION AND LAW ENFORCEMENT FUNDING
SEC. 100051. APPROPRIATION FOR THE DEPARTMENT OF HOMELAND
SECURITY.
In addition to amounts otherwise available, there is appropriated to
the Secretary of Homeland Security for fiscal year 2025, out of any
money in the Treasury not otherwise appropriated, $2,055,000,000, to
remain available through September 30, 2029, for the following purposes:
[[Page 139 STAT. 386]]
(1) Immigration and enforcement activities.--Hiring and
training of additional U.S. Customs and Border Protection
agents, and the necessary support staff, to carry out
immigration enforcement activities.
(2) Departures and removals.--Funding for transportation
costs and related costs associated with the departure or removal
of aliens.
(3) Personnel assignments.--Funding for the assignment of
Department of Homeland Security employees and State officers to
carry out immigration enforcement activities pursuant to
sections 103(a) and 287(g) of the Immigration and Nationality
Act (8 U.S.C. 1103(a) and 1357(g)).
(4) Background checks.--Hiring additional staff and
investing the necessary resources to enhance screening and
vetting of all aliens seeking entry into United States,
consistent with section 212 of such Act (8 U.S.C. 1182), or
intending to remain in the United States, consistent with
section 237 of such Act (8 U.S.C. 1227).
(5) Protecting alien children from exploitation.--In
instances of aliens and alien children entering the United
States without a valid visa, funding is provided for the
purposes of--
(A) collecting fingerprints, in accordance with
section 262 of the Immigration and Nationality Act (8
U.S.C. 1302) and subsections (a)(3) and (b) of section
235 of such Act (8 U.S.C. 1225); and
(B) collecting DNA, in accordance with sections
235(d) and 287(b) of the Immigration and Nationality Act
(8 U.S.C. 1225(d) and 1357(b)).
(6) Transporting and return of aliens from contiguous
territory.--Transporting and facilitating the return, pursuant
to section 235(b)(2)(C) of the Immigration and Nationality Act
(8 U.S.C. 1225(b)(2)(C)), of aliens arriving from contiguous
territory.
(7) State and local participation.--Funding for State and
local participation in homeland security efforts for purposes
of--
(A) ending the presence of criminal gangs and
criminal organizations throughout the United States;
(B) addressing crime and public safety threats;
(C) combating human smuggling and trafficking
networks throughout the United States;
(D) supporting immigration enforcement activities;
and
(E) providing reimbursement for State and local
participation in such efforts.
(8) Removal of specified unaccompanied alien children.--
(A) In general.--Funding removal operations for
specified unaccompanied alien children.
(B) Use of funds.--Amounts made available under this
paragraph shall only be used for permitting a specified
unaccompanied alien child to withdraw the application
for admission of the child pursuant to section 235(a)(4)
of the Immigration and Nationality Act (8 U.S.C.
1225(a)(4)).
(C) Definitions.--In this paragraph:
(i) Specified unaccompanied alien child.--The
term ``specified unaccompanied alien child'' means
an
[[Page 139 STAT. 387]]
unaccompanied alien child (as defined in section
462(g) of the Homeland Security Act of 2002 (6
U.S.C. 279(g))) who the Secretary of Homeland
Security determines on a case-by-case basis--
(I) has been found by an immigration
officer at a land border or port of
entry of the United States and is
inadmissible under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.);
(II) has not been a victim of severe
forms of trafficking in persons, and
there is no credible evidence that such
child is at risk of being trafficked
upon return of the child to the child's
country of nationality or country of
last habitual residence; and
(III) does not have a fear of
returning to the child's country of
nationality or country of last habitual
residence owing to a credible fear of
persecution.
(ii) Severe forms of trafficking in persons.--
The term ``severe forms of trafficking in
persons'' has the meaning given such term in
section 103 of the Trafficking Victims Protection
Act of 2000 (22 U.S.C. 7102).
(9) Expedited removal of criminal aliens.--Funding for the
expedited removal of criminal aliens, in accordance with the
provisions of section 235(b)(1) of the Immigration and
Nationality Act (8 U.S.C. 1225(b)(1)).
(10) Removal of certain criminal aliens without further
hearings.--Funding for the removal of certain criminal aliens
without further hearings, in accordance with the provisions of
section 235(c) of the Immigration and Nationality Act (8 U.S.C.
1225(c)).
(11) Criminal and gang checks for unaccompanied alien
children.--Funding for criminal and gang checks of unaccompanied
alien children (as defined in section 462(g) of the Homeland
Security Act of 2002 (6 U.S.C. 279(g))) who are 12 years of age
and older, including the examination of such unaccompanied alien
children for gang-related tattoos and other gang-related
markings.
(12) Information technology.--Information technology
investments to support immigration purposes, including
improvements to fee and revenue collections.
SEC. 100052. APPROPRIATION FOR U.S. IMMIGRATION AND CUSTOMS
ENFORCEMENT.
In addition to amounts otherwise available, there is appropriated to
the Secretary of Homeland Security for U.S. Immigration and Customs
Enforcement for fiscal year 2025, out of any money in the Treasury not
otherwise appropriated, $29,850,000,000, to remain available through
September 30, 2029, for the following purposes:
(1) Hiring and training.--Hiring and training additional
U.S. Immigration and Customs Enforcement personnel, including
officers, agents, investigators, and support staff, to carry out
immigration enforcement activities and prioritizing and
streamlining the hiring of retired U.S. Immigration and Customs
Enforcement personnel.
[[Page 139 STAT. 388]]
(2) Performance, retention, and signing bonuses.--
(A) In general.--Providing performance, retention,
and signing bonuses for qualified U.S. Immigration and
Customs Enforcement personnel in accordance with this
subsection.
(B) Performance bonuses.--The Director of U.S.
Immigration and Customs Enforcement, at the Director's
discretion, may provide performance bonuses to any U.S.
Immigration and Customs Enforcement agent, officer, or
attorney who demonstrates exemplary service.
(C) Retention bonuses.--The Director of U.S.
Immigration and Customs Enforcement may provide
retention bonuses to any U.S. Immigration and Customs
Enforcement agent, officer, or attorney who commits to 2
years of additional service with U.S. Immigration and
Customs Enforcement to carry out immigration enforcement
activities.
(D) Signing bonuses.--The Director of U.S.
Immigration and Customs Enforcement may provide a
signing bonus to any U.S. Immigration and Customs
Enforcement agent, officer, or attorney who--
(i) <<NOTE: Effective date.>> is hired on or
after the date of the enactment of this Act; and
(ii) who commits to 5 years of service with
U.S. Immigration and Customs Enforcement to carry
out immigration enforcement activities.
(E) <<NOTE: Contracts.>> Service agreement.--In
providing a retention or signing bonus under this
paragraph, the Director of U.S. Immigration and Customs
Enforcement shall provide each qualifying individual
with a written service agreement that includes--
(i) the commencement and termination dates of
the required service period (or provisions for the
determination of such dates);
(ii) the amount of the bonus; and
(iii) any other term or condition under which
the bonus is payable, subject to the requirements
of this paragraph, including--
(I) the conditions under which the
agreement may be terminated before the
agreed-upon service period has been
completed; and
(II) the effect of a termination
described in subclause (I).
(3) Recruitment, hiring, and onboarding.--Facilitating the
recruitment, hiring, and onboarding of additional U.S.
Immigration and Customs Enforcement personnel to carry out
immigration enforcement activities, including by--
(A) investing in information technology,
recruitment, and marketing; and
(B) hiring staff necessary to carry out information
technology, recruitment, and marketing activities.
(4) Transportation.--Funding for transportation costs and
related costs associated with alien departure or removal
operations.
(5) Information technology.--Funding for information
technology investments to support enforcement and removal
operations, including improvements to fee collections.
[[Page 139 STAT. 389]]
(6) Facility upgrades.--Funding for facility upgrades to
support enforcement and removal operations.
(7) Fleet modernization.--Funding for fleet modernization to
support enforcement and removal operations.
(8) Family unity.--Promoting family unity by--
(A) maintaining the care and custody, during the
period in which a charge described in clause (i) is
pending, in accordance with applicable laws, of an alien
who--
(i) is charged only with a misdemeanor offense
under section 275(a) of the Immigration and
Nationality Act (8 U.S.C. 1325(a)); and
(ii) entered the United States with the
alien's child who has not attained 18 years of
age; and
(B) detaining such an alien with the alien's child.
(9) 287(g) agreements.--Expanding, facilitating, and
implementing agreements under section 287(g) of the Immigration
and Nationality Act (8 U.S.C. 1357(g)).
(10) Victims of immigration crime engagement office.--Hiring
and training additional staff to carry out the mission of the
Victims of Immigration Crime Engagement Office and for providing
nonfinancial assistance to the victims of crimes perpetrated by
aliens who are present in the United States without
authorization.
(11) Office of the principal legal advisor.--Hiring
additional attorneys and the necessary support staff within the
Office of the Principal Legal Advisor to represent the
Department of Homeland Security in immigration enforcement and
removal proceedings.
SEC. 100053. APPROPRIATION FOR FEDERAL LAW ENFORCEMENT TRAINING
CENTERS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Homeland Security for the
Federal Law Enforcement Training Centers for fiscal year 2025, out of
any money in the Treasury not otherwise appropriated, $750,000,000, to
remain available until September 30, 2029, for the purposes described in
subsections (b) and (c).
(b) Training.--Not less than $285,000,000 of the amounts available
under subsection (a) shall be for supporting the training of newly hired
Federal law enforcement personnel employed by the Department of Homeland
Security and State and local law enforcement agencies operating in
support of the Department of Homeland Security.
(c) Facilities.--Not more than $465,000,000 of the amounts available
under subsection (a) shall be for procurement, construction and
maintenance of, improvements to, training equipment for, and related
expenses, of facilities of the Federal Law Enforcement Training Centers.
SEC. 100054. APPROPRIATION FOR THE DEPARTMENT OF JUSTICE.
In addition to amounts otherwise available, there is appropriated to
the Attorney General for the Department of Justice for fiscal year 2025,
out of any money in the Treasury not otherwise appropriated,
$3,330,000,000, to remain available through September 30, 2029, for the
following purposes:
(1) Executive office for immigration review.--
[[Page 139 STAT. 390]]
(A) In general.--Hiring immigration judges and
necessary support staff for the Executive Office for
Immigration Review to address the backlog of petitions,
cases, and removals.
(B) <<NOTE: Effective date.>> Staffing level.--
Effective November 1, 2028, the Executive Office for
Immigration Review shall be comprised of not more than
800 immigration judges, along with the necessary support
staff.
(2) Combating drug trafficking.--Funding efforts to combat
drug trafficking (including trafficking of fentanyl and its
precursor chemicals) and illegal drug use.
(3) Prosecution of immigration matters.--Funding efforts to
investigate and prosecute immigration matters, gang-related
crimes involving aliens, child trafficking and smuggling
involving aliens within the United States, unlawful voting by
aliens, violations of the Alien Registration Act, 1940 (54
Stat., chapter 439), and violations of or fraud relating to
title IV of the Personal Responsibility and Work Opportunity Act
of 1996 (Public Law 104-193; 110 Stat. 2277), including hiring
additional Department of Justice personnel to investigate and
prosecute such matters.
(4) <<NOTE: Courts.>> Nonparty or other injunctive
relief.--Hiring additional attorneys and necessary support staff
for the purpose of continuing implementation of assignments by
the Attorney General pursuant to sections 516, 517, and 518 of
title 28, United States Code, to conduct litigation and attend
to the interests of the United States in suits pending in a
court of the United States or in a court of a State in suits
seeking nonparty or other injunctive relief against the Federal
Government.
(5) Edward byrne memorial justice assistance grant program
and office of community oriented policing.--
(A) In general.--Increasing funding for the Edward
Byrne Memorial Justice Assistance Grant Program and the
Office of Community Oriented Policing for initiatives
associated with--
(i) investigating and prosecuting violent
crime;
(ii) criminal enforcement initiatives; and
(iii) immigration enforcement and removal
efforts.
(B) Limitations.--No funds made available under this
subsection shall be made available to community violence
intervention and prevention initiative programs.
(C) <<NOTE: Determination.>> Eligibility.--To be
eligible to receive funds made available under this
subsection, a State or local government shall be in full
compliance, as determined by the Attorney General, with
section 642 of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1373).
(6) Fiscally responsible lawsuit settlements.--Hiring
additional attorneys and necessary support staff for the purpose
of maximizing lawsuit settlements that require the payment of
fines and penalties to the Treasury of the United States in lieu
of providing for the payment to any person or entity other than
the United States, other than a payment that provides
restitution or otherwise directly remedies actual harm directly
and proximately caused by the party making the payment, or
constitutes payment for services rendered in connection with the
case.
[[Page 139 STAT. 391]]
(7) Compensation for incarceration of criminal aliens.--
(A) In general.--Providing compensation to a State
or political subdivision of a State for the
incarceration of criminal aliens.
(B) Use of funds.--The amounts made available under
subparagraph (A) shall only be used to compensate a
State or political subdivision of a State, as
appropriate, with respect to the incarceration of an
alien who--
(i) has been convicted of a felony or 2 or
more misdemeanors; and
(ii)(I) entered the United States without
inspection or at any time or place other than as
designated by the Secretary of Homeland Security;
(II) was the subject of removal proceedings at
the time the alien was taken into custody by the
State or a political subdivision of the State; or
(III) was admitted as a nonimmigrant and, at
the time the alien was taken into custody by the
State or a political subdivision of the State, has
failed to maintain the nonimmigrant status in
which the alien was admitted, or to which it was
changed, or to comply with the conditions of any
such status.
(C) Limitation.--Amounts made available under this
subsection shall be distributed to more than 1 State.
The amounts made available under subparagraph (A) may
not be used to compensate any State or political
subdivision of a State if the State or political
subdivision of the State prohibits or in any way
restricts a Federal, State, or local government entity,
official, or other personnel from doing any of the
following:
(i) Complying with the immigration laws (as
defined in section 101(a)(17) of the Immigration
and Nationality Act (8 U.S.C. 1101(a)(17))).
(ii) Assisting or cooperating with Federal law
enforcement entities, officials, or other
personnel regarding the enforcement of the
immigration laws.
(iii) Undertaking any of the following law
enforcement activities as such activities relate
to information regarding the citizenship or
immigration status, lawful or unlawful, the
inadmissibility or deportability, and the custody
status, of any individual:
(I) Making inquiries to any
individual to obtain such information
regarding such individual or any other
individuals.
(II) Notifying the Federal
Government regarding the presence of
individuals who are encountered by law
enforcement officials or other personnel
of a State or political subdivision of a
State.
(III) Complying with requests for
such information from Federal law
enforcement entities, officials, or
other personnel.
[[Page 139 STAT. 392]]
SEC. 100055. <<NOTE: 34 USC 61101.>> BRIDGING IMMIGRATION-RELATED
DEFICITS EXPERIENCED NATIONWIDE
REIMBURSEMENT FUND.
(a) Establishment.--There is established within the Department of
Justice a fund, to be known as the ``Bridging Immigration-related
Deficits Experienced Nationwide (BIDEN) Reimbursement Fund'' (referred
to in this section as the ``Fund'').
(b) Use of Funds.--The Attorney General shall use amounts
appropriated or otherwise made available for the Fund for grants to
eligible States, State agencies, and units of local government, pursuant
to their existing statutory authorities, for any of the following
purposes:
(1) Locating and apprehending aliens who have committed a
crime under Federal, State, or local law, in addition to being
unlawfully present in the United States.
(2) Collection and analysis of law enforcement investigative
information within the United States to counter gang or other
criminal activity.
(3) Investigating and prosecuting--
(A) crimes committed by aliens within the United
States; and
(B) drug and human trafficking crimes committed
within the United States.
(4) Court operations related to the prosecution of--
(A) crimes committed by aliens; and
(B) drug and human trafficking crimes.
(5) Temporary criminal detention of aliens.
(6) Transporting aliens described in paragraph (1) within
the United States to locations related to the apprehension,
detention, and prosecution of such aliens.
(7) Vehicle maintenance, logistics, transportation, and
other support provided to law enforcement agencies by a State
agency to enhance the ability to locate and apprehend aliens who
have committed crimes under Federal, State, or local law, in
addition to being unlawfully present in the United States.
(c) Appropriation.--In addition to amounts otherwise available for
the purposes described in subsection (b), there is appropriated to the
Attorney General for fiscal year 2025, out of any money in the Treasury
not otherwise appropriated, not to exceed $3,500,000,000, to remain
available until September 30, 2028, for the Fund for qualified and
documented expenses that achieve any such purpose.
(d) Grant Eligibility of Completed, Ongoing, or New
Activities. <<NOTE: Determination. Effective date.>> --The Attorney
General may provide grants under this section to State agencies and
units of local government for expenditures made by State agencies or
units of local government for completed, ongoing, or new activities
determined to be eligible for such grant funding that occurred on or
after January 20, 2021. Amounts made available under this section shall
be distributed to more than 1 State.
SEC. 100056. APPROPRIATION FOR THE BUREAU OF PRISONS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Director of the Bureau of Prisons for
fiscal year 2025, out of any money in the Treasury not otherwise
appropriated, $5,000,000,000, to remain available through September 30,
2029, for the purposes described in subsections (b) and (c).
[[Page 139 STAT. 393]]
(b) Salaries and Benefits.--Not less than $3,000,000,000 of the
amounts made available under subsection (a) shall be for hiring and
training of new employees, including correctional officers, medical
professionals, and facilities and maintenance employees, the necessary
support staff, and for additional funding for salaries and benefits for
the current workforce of the Bureau of Prisons.
(c) Facilities.--Not more than $2,000,000,000 of the amounts made
available under subsection (a) shall be for addressing maintenance and
repairs to facilities maintained or operated by the Bureau of Prisons.
SEC. 100057. APPROPRIATION FOR THE UNITED STATES SECRET SERVICE.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Director of the United States Secret
Service (referred to in this section as the ``Director'') for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$1,170,000,000, to remain available through September 30, 2029, for the
purposes described in subsection (b).
(b) Use of Funds.--Amounts made available under subsection (a) may
only be used for--
(1) additional United States Secret Service resources,
including personnel, training facilities, programming, and
technology; and
(2) performance, retention, and signing bonuses for
qualified United States Secret Service personnel in accordance
with subsection (c).
(c) Performance, Retention, and Signing Bonuses.--
(1) Performance bonuses.--The Director, at the Director's
discretion, may provide performance bonuses to any Secret
Service agent, officer, or analyst who demonstrates exemplary
service.
(2) Retention bonuses.--The Director may provide retention
bonuses to any Secret Service agent, officer, or analyst who
commits to 2 years of additional service with the Secret
Service.
(3) Signing bonuses.--The Director may provide a signing
bonus to any Secret Service agent, officer, or analyst who--
(A) is hired on or after the date of the enactment
of this Act; and
(B) commits to 5 years of service with the United
States Secret Service.
(4) <<NOTE: Contracts.>> Service agreement.--In providing a
retention or signing bonus under this subsection, the Director
shall provide each qualifying individual with a written service
agreement that includes--
(A) the commencement and termination dates of the
required service period (or provisions for the
determination of such dates);
(B) the amount of the bonus; and
(C) any other term or condition under which the
bonus is payable, subject to the requirements under this
subsection, including--
(i) the conditions under which the agreement
may be terminated before the agreed-upon service
period has been completed; and
[[Page 139 STAT. 394]]
(ii) the effect of a termination described in
clause (i).
Subtitle B--Judiciary Matters
SEC.
100101. <<NOTE: Analysis. Reports. Examination. Data. Assessmen
t. Determination.>> APPROPRIATION
TO THE ADMINISTRATIVE OFFICE OF THE
UNITED STATES COURTS.
In addition to amounts otherwise available, there is appropriated to
the Director of the Administrative Office of the United States Courts,
out of amounts in the Treasury not otherwise appropriated, $1,250,000
for each of fiscal years 2025 through 2028, for the purpose of
continuing analyses and reporting pursuant to section 604(a)(2) of title
28, United States Code, to examine the state of the dockets of the
courts and to prepare and transmit statistical data and reports as to
the business of the courts, including an assessment of the number,
frequency, and related metrics of judicial orders issuing non-party
relief against the Federal Government and their aggregate cost impact on
the taxpayers of the United States, as determined by each court when
imposing securities for the issuance of preliminary injunctions or
temporary restraining orders against the Federal Government pursuant to
rule 65(c) of the Federal Rules of Civil Procedure.
SEC. 100102. APPROPRIATION TO THE FEDERAL JUDICIAL CENTER.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Director of the Federal Judicial Center,
out of amounts in the Treasury not otherwise appropriated, $1,000,000
for each of fiscal years 2025 through 2028, for the purpose described in
subsection (b).
(b) Use of Funds.--The Federal Judicial Center shall use the amounts
appropriated under subsection (a) for the continued implementation of
programs pursuant to section 620(b)(3) of title 28, United States Code,
to stimulate, create, develop, and conduct programs of continuing
education and training for personnel of the judicial branch, including
training on the absence of constitutional and statutory authority
supporting legal claims that seek non-party relief against the Federal
Government, and strategic approaches for mitigating the aggregate cost
impact of such legal claims on the taxpayers of the United States.
Subtitle C--Radiation Exposure Compensation Matters
SEC. 100201. EXTENSION OF FUND.
Section 3(d) of the Radiation Exposure Compensation Act (Public Law
101-426; 42 U.S.C. 2210 note) is amended--
(1) by striking the first sentence and inserting ``The Fund
shall terminate on December 31, 2028.''; and
(2) by striking ``the end of that 2-year period'' and
inserting ``such date''.
SEC. 100202. CLAIMS RELATING TO ATMOSPHERIC TESTING.
(a) Leukemia Claims Relating to Trinity Test in New Mexico and Tests
at the Nevada Site.--Section 4(a)(1)(A) of
[[Page 139 STAT. 395]]
the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C.
2210 note) is amended--
(1) in clause (i)--
(A) in subclause (I), by striking ``October 31,
1958'' and inserting ``November 6, 1962'';
(B) in subclause (II)--
(i) by striking ``in the affected area'' and
inserting ``in an affected area''; and
(ii) by striking ``or'' after the semicolon;
(C) by redesignating subclause (III) as subclause
(IV); and
(D) by inserting after subclause (II) the following:
``(III) was physically present in an
affected area for a period of at least 1
year during the period beginning on
September 24, 1944, and ending on
November 6, 1962; or''; and
(2) in clause (ii)(I), by striking ``physical presence
described in subclause (I) or (II) of clause (i) or onsite
participation described in clause (i)(III)'' and inserting
``physical presence described in subclause (I), (II), or (III)
of clause (i) or onsite participation described in clause
(i)(IV)''.
(b) Amounts for Claims Related to Leukemia.--Section 4(a)(1) of the
Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210
note) is amended--
(1) in subparagraph (A), by striking ``an amount'' and
inserting ``the amount'';
(2) by striking subparagraph (B) and inserting the
following:
``(B) Amount.--If the conditions described in
subparagraph (C) are met, an individual who is described
in subparagraph (A) shall receive $100,000.''; and
(3) in subparagraph (C), by adding at the end the following:
``(iv) No payment under this paragraph
previously has been made to the individual, on
behalf of the individual, or to a survivor of the
individual.''.
(c) Conditions for Claims Related to Leukemia.--Section 4(a)(1)(C)
of the Radiation Exposure Compensation Act (Public Law 101-426; 42
U.S.C. 2210 note) is amended--
(1) by striking clause (i); and
(2) by redesignating clauses (ii) and (iii) as clauses (i)
and (ii), respectively.
(d) Specified Diseases Claims Relating to Trinity Test in New Mexico
and Tests at the Nevada Site.--Section 4(a)(2) of the Radiation Exposure
Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended--
(1) in subparagraph (A)--
(A) by striking ``in the affected area'' and
inserting ``in an affected area'';
(B) by striking ``2 years'' and inserting ``1
year''; and
(C) by striking ``October 31, 1958,'' and inserting
``November 6, 1962;'';
(2) in subparagraph (B)--
(A) by striking ``in the affected area'' and
inserting ``in an affected area''; and
(B) by striking ``, or'' at the end and inserting a
semicolon;
[[Page 139 STAT. 396]]
(3) by redesignating subparagraph (C) as subparagraph (D);
and
(4) by inserting after subparagraph (B) the following:
``(C) was physically present in an affected area for
a period of at least 1 year during the period beginning
on September 24, 1944, and ending on November 6, 1962;
or''.
(e) Amounts for Claims Related to Specified Diseases.--Section
4(a)(2) of the Radiation Exposure Compensation Act (Public Law 101-426;
42 U.S.C. 2210 note) is amended in the matter following subparagraph (D)
(as redesignated by subsection (d) of this section)--
(1) by striking ``$50,000 (in the case of an individual
described in subparagraph (A) or (B)) or $75,000 (in the case of
an individual described in subparagraph (C)),'' and inserting
``$100,000'';
(2) in clause (i), by striking ``, and'' and inserting a
semicolon;
(3) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(iii) no payment under this paragraph
previously has been made to the individual, on
behalf of the individual, or to a survivor of the
individual.''.
(f) Downwind States.--Section 4(b)(1) of the Radiation Exposure
Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended to
read as follows:
``(1) <<NOTE: Definition.>> `affected area' means--
``(A) except as provided under subparagraph (B)--
``(i) the States of New Mexico, Utah, and
Idaho;
``(ii) in the State of Nevada, the counties of
White Pine, Nye, Lander, Lincoln, Eureka, and that
portion of Clark County that consists of townships
13 through 16 at ranges 63 through 71; and
``(iii) in the State of Arizona, the counties
of Coconino, Yavapai, Navajo, Apache, and Gila,
and Mohave; and
``(B) with respect to a claim by an individual under
subsection (a)(1)(A)(i)(III) or subsection (a)(2)(C),
only New Mexico; and''.
SEC. 100203. CLAIMS RELATING TO URANIUM MINING.
(a) Employees of Mines and Mills.--Section 5(a)(1)(A)(i) of the
Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210
note) is amended to read as follows:
``(i)(I) <<NOTE: State listing.>> was
employed in a uranium mine or uranium mill
(including any individual who was employed in the
transport of uranium ore or vanadium-uranium ore
from such mine or mill) located in Colorado, New
Mexico, Arizona, Wyoming, South Dakota,
Washington, Utah, Idaho, North Dakota, Oregon, or
Texas at any time during the period beginning on
January 1, 1942, and ending on December 31, 1990;
or
``(II) was employed as a core driller in a
State referred to in subclause (I) during the
period described in such subclause; and''.
[[Page 139 STAT. 397]]
(b) Miners.--Section 5(a)(1)(A)(ii)(I) of the Radiation Exposure
Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended by
inserting ``or renal cancer or any other chronic renal disease,
including nephritis and kidney tubal tissue injury'' after
``nonmalignant respiratory disease''.
(c) Millers, Core Drillers, and Ore Transporters.--Section
5(a)(1)(A)(ii)(II) of the Radiation Exposure Compensation Act (Public
Law 101-426; 42 U.S.C. 2210 note) is amended--
(1) by inserting ``, core driller,'' after ``was a miller'';
(2) by inserting ``, or was involved in remediation efforts
at such a uranium mine or uranium mill,'' after ``ore
transporter'';
(3) by inserting ``(I)'' after ``clause (i)''; and
(4) by striking ``or renal cancers'' and all that follows
and inserting ``or renal cancer or any other chronic renal
disease, including nephritis and kidney tubal tissue injury;
or''.
(d) Combined Work Histories.--Section 5(a)(1)(A)(ii) of the
Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210
note), as amended by subsection (c), is further amended--
(1) in subclause (I), by striking ``or'' at the end; and
(2) by adding at the end the following:
``(III)(aa) does not meet the
conditions of subclause (I) or (II);
``(bb) worked, during the period
described in clause (i)(I), in 2 or more
of the following positions: miner,
miller, core driller, and ore
transporter;
``(cc) meets the requirements under
paragraph (4) or (5); and
``(dd) submits written medical
documentation that the individual
developed lung cancer, a nonmalignant
respiratory disease, renal cancer, or
any other chronic renal disease,
including nephritis and kidney tubal
tissue injury after exposure to
radiation through work in one or more of
the positions referred to in item
(bb);''.
(e) Special Rules Relating to Combined Work Histories.--Section 5(a)
of the Radiation Exposure Compensation Act (Public Law 101-426; 42
U.S.C. 2210 note) is amended by adding at the end the following:
``(4) Special rule relating to combined work histories for
individuals with at least one year of experience.--An individual
meets the requirements under this paragraph if the individual
worked in one or more of the positions referred to in paragraph
(1)(A)(ii)(III)(bb) for a period of at least one year during the
period described in paragraph (1)(A)(i)(I).
``(5) Special rule relating to combined work histories for
miners. <<NOTE: Determination.>> --An individual meets the
requirements of this paragraph if the individual, during the
period described in paragraph (1)(A)(i)(I), worked as a miner
and was exposed to such number of working level months that the
Attorney General determines, when combined with the exposure of
such individual to radiation through work as a miller, core
driller, or ore transporter during the period described in
paragraph (1)(A)(i)(I), results in such individual being exposed
to a total level of radiation that is greater or equal to the
level of exposure of an individual described in paragraph
(4).''.
[[Page 139 STAT. 398]]
(f) Definition of Core Driller.--Section 5(b) of the Radiation
Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is
amended--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(9) the term `core driller' means any individual employed
to engage in the act or process of obtaining cylindrical rock
samples of uranium or vanadium by means of a borehole drilling
machine for the purpose of mining uranium or vanadium.''.
SEC. 100204. CLAIMS RELATING TO MANHATTAN PROJECT WASTE.
The Radiation Exposure Compensation Act (Public Law 101-426; 42
U.S.C. 2210 note) is amended by inserting after section 5 the following:
``SEC. 5A. CLAIMS RELATING TO MANHATTAN PROJECT WASTE.
``(a) In General.--A claimant shall receive compensation for a claim
made under this Act, as described in subsection (b) or (c), if--
``(1) a claim for compensation is filed with the Attorney
General--
``(A) by an individual described in paragraph (2);
or
``(B) on behalf of that individual by an authorized
agent of that individual, if the individual is deceased
or incapacitated, such as--
``(i) an executor of estate of that
individual; or
``(ii) a legal guardian or conservator of that
individual;
``(2) that individual, or if applicable, an authorized agent
of that individual, demonstrates that such individual--
``(A) <<NOTE: Effective date.>> was physically
present in an affected area for a period of at least 2
years after January 1, 1949; and
``(B) contracted a specified disease after such
period of physical presence;
``(3) <<NOTE: Certification.>> the Attorney General
certifies that the identity of that individual, and if
applicable, the authorized agent of that individual, is not
fraudulent or otherwise misrepresented; and
``(4) <<NOTE: Determination.>> the Attorney General
determines that the claimant has satisfied the applicable
requirements of this Act.
``(b) Losses Available to Living Affected Individuals.--
``(1) In general.--In the event of a claim qualifying for
compensation under subsection (a) that is submitted to the
Attorney General to be eligible for compensation under this
section at a time when the individual described in subsection
(a)(2) is living, the amount of compensation under this section
shall be in an amount that is the greater of $50,000 or the
total amount of compensation for which the individual is
eligible under paragraph (2).
``(2) <<NOTE: Records.>> Losses due to medical expenses.--A
claimant described in paragraph (1) shall be eligible to
receive, upon submission of contemporaneous written medical
records, reports, or billing statements created by or at the
direction of a licensed medical professional who provided
contemporaneous medical care to the claimant, additional
compensation in the amount of all documented out-of-pocket
medical expenses
[[Page 139 STAT. 399]]
incurred as a result of the specified disease suffered by that
claimant, such as any medical expenses not covered, paid for, or
reimbursed through--
``(A) any public or private health insurance;
``(B) any employee health insurance;
``(C) any workers' compensation program; or
``(D) any other public, private, or employee health
program or benefit.
``(3) <<NOTE: Deadline.>> Limitation.--No claimant is
eligible to receive compensation under this subsection with
respect to medical expenses unless the submissions described in
paragraph (2) with respect to such expenses are submitted on or
before December 31, 2028.
``(c) Payments to Beneficiaries of Deceased Individuals.--In the
event that an individual described in subsection (a)(2) who qualifies
for compensation under subsection (a) is deceased at the time of
submission of the claim--
``(1) a surviving spouse may, upon submission of a claim and
records sufficient to satisfy the requirements of subsection (a)
with respect to the deceased individual, receive compensation in
the amount of $25,000; or
``(2) <<NOTE: Records.>> in the event that there is no
surviving spouse, the surviving children, minor or otherwise, of
the deceased individual may, upon submission of a claim and
records sufficient to satisfy the requirements of subsection (a)
with respect to the deceased individual, receive compensation in
the total amount of $25,000, paid in equal shares to each
surviving child.
``(d) <<NOTE: Definition.>> Affected Areas.--For purposes of this
section, the term `affected area' means--
``(1) in the State of Missouri, the ZIP Codes of 63031,
63033, 63034, 63042, 63045, 63074, 63114, 63135, 63138, 63044,
63121, 63140, 63145, 63147, 63102, 63304, 63134, 63043, 63341,
63368, and 63367;
``(2) in the State of Tennessee, the ZIP Codes of 37716,
37840, 37719, 37748, 37763, 37828, 37769, 37710, 37845, 37887,
37829, 37854, 37830, and 37831;
``(3) in the State of Alaska, the ZIP Codes of 99546 and
99547; and
``(4) in the State of Kentucky, the ZIP Codes of 42001,
42003, and 42086.
``(e) <<NOTE: Definition.>> Specified Disease.--For purposes of
this section, the term `specified disease' means any of the following:
``(1) Any leukemia, provided that the initial exposure
occurred after 20 years of age and the onset of the disease was
at least 2 years after first exposure.
``(2) Any of the following diseases, provided that the onset
was at least 2 years after the initial exposure:
``(A) Multiple myeloma.
``(B) Lymphoma, other than Hodgkin's disease.
``(C) Primary cancer of the--
``(i) thyroid;
``(ii) male or female breast;
``(iii) esophagus;
``(iv) stomach;
``(v) pharynx;
``(vi) small intestine;
[[Page 139 STAT. 400]]
``(vii) pancreas;
``(viii) bile ducts;
``(ix) gall bladder;
``(x) salivary gland;
``(xi) urinary bladder;
``(xii) brain;
``(xiii) colon;
``(xiv) ovary;
``(xv) bone;
``(xvi) renal;
``(xvii) liver, except if cirrhosis or
hepatitis B is indicated; or
``(xviii) lung.
``(f) Physical Presence.--
``(1) <<NOTE: Records. Effective date. Determinations.>> In
general.--For purposes of this section, the Attorney General may
not determine that a claimant has satisfied the requirements
under subsection (a) unless demonstrated by submission of--
``(A) contemporaneous written residential
documentation or at least 1 additional employer-issued
or government-issued document or record that the
claimant, for at least 2 years after January 1, 1949,
was physically present in an affected area; or
``(B) other documentation determined by the Attorney
General to demonstrate that the claimant, for at least 2
years after January 1, 1949, was physically present in
an affected area.
``(2) Types of physical presence.--For purposes of
determining physical presence under this section, a claimant
shall be considered to have been physically present in an
affected area if--
``(A) the claimant's primary residence was in the
affected area;
``(B) the claimant's place of employment was in the
affected area; or
``(C) the claimant attended school in the affected
area.
``(g) <<NOTE: Records.>> Disease Contraction in Affected Areas.--
For purposes of this section, the Attorney General may not determine
that a claimant has satisfied the requirements under subsection (a)
unless the claimant submits--
``(1) written medical records or reports created by or at
the direction of a licensed medical professional, created
contemporaneously with the provision of medical care to the
claimant, that the claimant, after a period of physical presence
in an affected area, contracted a specified disease; or
``(2) <<NOTE: Determination.>> other documentation
determined by the Attorney General to demonstrate that the
claimant contracted a specified disease after a period of
physical presence in an affected area.''.
[[Page 139 STAT. 401]]
SEC. 100205. LIMITATIONS ON CLAIMS.
Section 8(a) of the Radiation Exposure Compensation Act (Public Law
101-426; 42 U.S.C. 2210 note) is amended by striking ``2 years after the
date of enactment of the RECA Extension Act of 2022'' and inserting
``December 31, 2027''.
Approved July 4, 2025.
LEGISLATIVE HISTORY--H.R. 1:
---------------------------------------------------------------------------
HOUSE REPORTS: No. 119-106 (Comm. on the Budget).
CONGRESSIONAL RECORD, Vol. 171 (2025):
May 21, considered and passed House.
June 28, 30, considered and passed Senate, amended.
July 2, House concurred in Senate amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2025):
July 4, Presidential remarks.
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