[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1 Enrolled Bill (ENR)]
H.R.1
One Hundred Nineteenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and twenty-five
An Act
To provide for reconciliation pursuant to title II of H. Con. Res. 14.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. 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.
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.
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.
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.
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.
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.
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.
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.
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) 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.
``(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) 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) 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) 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) 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
``(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) 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
``(iv) any other criteria determined appropriate by the
Secretary.
``(D) Duration of exemption.--
``(i) In general.--An exemption granted under
subparagraph (B) shall expire not later than December 31,
2028, and may not be renewed beyond that date.
``(ii) 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) 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) 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.--
``(A) Definition of payment error rate.--In this paragraph,
the term `payment error rate' has the meaning given the term in
section 16(c)(2).
``(B) State cost share.--
``(i) In general.--Subject to clause (iii), beginning
in fiscal year 2028, if the payment error rate of a State
as determined under clause (ii) is--
``(I) less than 6 percent, the Federal share of the
cost of the allotment described in paragraph (1) for
that State in a fiscal year shall be 100 percent, and
the State share shall be 0 percent;
``(II) equal to or greater than 6 percent but less
than 8 percent, the Federal share of the cost of the
allotment described in paragraph (1) for that State in
a fiscal year shall be 95 percent, and the State share
shall be 5 percent;
``(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 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).
(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) 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.--
``(1) In general.--As soon as practicable after the date of
enactment of this subsection, and notwithstanding subsection (a),
the Secretary shall provide notice to owners of eligible farms
pursuant to paragraph (3) and allocate to those eligible farms a
total of not more than an additional 30,000,000 base acres in the
manner provided in this subsection. An owner of a farm that is
eligible to receive an allocation of base acres may elect to not
receive that allocation by notifying the Secretary not later than
90 days after receipt of the notice provided by the Secretary under
this paragraph.
``(2) Content of notice.--The notice under paragraph (1) shall
include the following:
``(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) 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) In general.--Subject to subparagraph (D), effective
beginning with the 2026 crop year, a farm is eligible to
receive an allocation of base acres if, with respect to the
farm, the amount described in subparagraph (B) exceeds the
amount described in subparagraph (C).
``(B) 5-year average sum.--The amount described in this
subparagraph, with respect to a farm, is the sum of--
``(i) the 5-year average of--
``(I) the acreage planted on the farm to all
covered commodities for harvest, grazing, haying,
silage or other similar purposes for the 2019 through
2023 crop years; and
``(II) any acreage on the farm that the producers
were prevented from planting during the 2019 through
2023 crop years to covered commodities because of
drought, flood, or other natural disaster, or other
condition beyond the control of the producers, as
determined by the Secretary; plus
``(ii) the lesser of--
``(I) 15 percent of the total acres on the farm;
and
``(II) the 5-year average of--
``(aa) the acreage planted on the farm to
eligible noncovered commodities for harvest,
grazing, haying, silage, or other similar purposes
for the 2019 through 2023 crop years; and
``(bb) any acreage on the farm that the
producers were prevented from planting during the
2019 through 2023 crop years to eligible noncovered
commodities because of drought, flood, or other
natural disaster, or other condition beyond the
control of the producers, as determined by the
Secretary.
``(C) Total number of base acres for covered commodities.--
The amount described in this subparagraph, with respect to a
farm, is the total number of base acres for covered commodities
on the farm (excluding unassigned crop base), as in effect on
September 30, 2024.
``(D) Effect of no recent plantings of covered
commodities.--In the case of a farm for which the amount
determined under clause (i) of subparagraph (B) is equal to
zero, that farm shall be ineligible to receive an allocation of
base acres under this subsection.
``(E) Acreage planted on the farm to eligible noncovered
commodities defined.--In this paragraph, the term `acreage
planted on the farm to eligible noncovered commodities' means
acreage planted on a farm to commodities other than covered
commodities, trees, bushes, vines, grass, or pasture (including
cropland that was idle or fallow), as determined by the
Secretary.
``(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) 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 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) Reduction by the secretary.--In carrying out this
subsection, if the total number of eligible acres allocated to base
acres across all farms in the United States under this subsection
would exceed 30,000,000 acres, the Secretary shall apply an across-
the-board, pro-rata reduction to the number of eligible acres to
ensure the number of allocated base acres under this subsection is
equal to 30,000,000 acres.
``(7) Payment yield.--Beginning with crop year 2026, for the
purpose of making price loss coverage payments under section 1116,
the Secretary shall establish payment yields to base acres
allocated under this subsection equal to--
``(A) 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) 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
(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.--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:
``(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) 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 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) 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 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.''.
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
(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) 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) 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) by striking paragraph (2) and inserting the following:
``(B)(i) in the case of long grain rice and medium grain
rice, the prevailing world market price for the commodity, as
determined and adjusted by the Secretary in accordance with
this section; or
``(ii) in the case of upland cotton, the prevailing world
market price for the commodity, as determined and adjusted by
the Secretary in accordance with this section.
``(2) Refund for upland cotton.--In the case of a repayment for
a marketing assistance loan for upland cotton at a rate described
in paragraph (1)(B)(ii), the Secretary shall provide to the
producer a refund (if any) in an amount equal to the difference
between the lowest prevailing world market price, as determined and
adjusted by the Secretary in accordance with this section, during
the 30-day period following the date on which the producer repays
the marketing assistance loan and the repayment rate.'';
(2) in subsection (c)--
(A) by striking the period at the end and inserting ``;
and'';
(B) by striking ``at the loan rate'' and inserting the
following: "at a rate that is the lesser of-- ``
``(1) the loan rate''; and
(C) by adding at the end the following:
``(2) the prevailing world market price for the commodity, as
determined and adjusted by the Secretary in accordance with this
section.'';
(3) in subsection (d)--
(A) in paragraph (1), by striking ``and medium grain rice''
and inserting ``medium grain rice, and extra long staple
cotton'';
(B) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indenting
appropriately;
(C) in the matter preceding subparagraph (A) (as so
redesignated), by striking ``For purposes'' and inserting the
following:
``(1) In general.--For purposes''; and
(D) by adding at the end the following:
``(2) Upland cotton.--In the case of upland cotton, for any
period when price quotations for Middling (M) 1\3/32\-inch cotton
are available, the formula under paragraph (1)(A) shall be based on
the average of the 3 lowest-priced growths that are quoted.''; and
(4) in subsection (e)--
(A) in the subsection heading, by inserting ``Extra Long
Staple Cotton,'' after ``Upland Cotton,'';
(B) in paragraph (2)--
(i) in the paragraph heading, by inserting ``Upland''
before ``Cotton''; and
(ii) in subparagraph (B), in the matter preceding
clause (i), by striking ``2024'' and inserting ``2032'';
(C) by redesignating paragraph (3) as paragraph (4); and
(D) by inserting after paragraph (2) the following:
``(3) Extra long staple cotton.--The prevailing world market
price for extra long staple cotton determined under subsection
(d)--
``(A) shall be adjusted to United States quality and
location, with the adjustment to include the average costs to
market the commodity, including average transportation costs,
as determined by the Secretary; and
``(B) may be further adjusted, during the period beginning
on the date of enactment of 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) for the period beginning on August 1, 2013, and
ending on July 31, 2025, 3 cents per pound; and
``(B) beginning on August 1, 2025, 5 cents per pound.''.
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) In General.--For the 2025 crop year and each subsequent crop
year, the Commodity Credit Corporation shall establish rates for the
storage of forfeited sugar in an amount that is not less than--
``(1) in the case of refined sugar, 34 cents per hundredweight
per month; and
``(2) in the case of raw cane sugar, 27 cents per hundredweight
per month.''; and
(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) 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) 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--
``(A) determine which countries do not intend to fulfill
their allocation for the quota year; and
``(B) reallocate any forecasted shortfall in the
fulfillment of the tariff-rate quotas as soon as practicable.
``(2) Subsequent reallocation.--Subject to paragraph (3), not
later than March 1 of a quota year, the Secretary shall reallocate
any additional forecasted shortfall in the fulfillment of the
tariff-rate quotas for raw cane sugar established under subsection
(a)(1) for that quota year.
``(3) Cessation of effectiveness.--Paragraphs (1) and (2) shall
cease to be in effect if--
``(A) the Agreement Suspending the Countervailing Duty
Investigation on Sugar from Mexico, signed December 19, 2014,
is terminated; and
``(B) no countervailing duty order under subtitle A of
title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) is
in effect with respect to sugar from Mexico.
``(d) Refined Sugar.--
``(1) Definition of domestic sugar industry.--In this
subsection, the term `domestic sugar industry' means domestic--
``(A) sugar beet producers and processors;
``(B) producers and processors of sugar cane; and
``(C) refiners of raw cane sugar.
``(2) Study required.--
``(A) In general.--Not later than 180 days after the date
of enactment of this subsection, the Secretary shall conduct a
study on whether the establishment of additional terms and
conditions with respect to refined sugar imports is necessary
and appropriate.
``(B) Elements.--In conducting the study under subparagraph
(A), the Secretary shall examine the following:
``(i) The need for--
``(I) defining `refined sugar' as having a minimum
polarization of 99.8 degrees or higher;
``(II) establishing a standard for color- or
reflectance-based units for refined sugar such as those
utilized by the International Commission of Uniform
Methods of Sugar Analysis;
``(III) prescribing specifications for packaging
type for refined sugar;
``(IV) prescribing specifications for
transportation modes for refined sugar;
``(V) requiring evidence that sugar imported as
refined sugar will not undergo further refining in the
United States;
``(VI) prescribing appropriate terms and conditions
to avoid unlawful sugar imports; and
``(VII) establishing other definitions, terms and
conditions, or other requirements.
``(ii) The potential impact of modifications described
in each of subclauses (I) through (VII) of clause (i) on
the domestic sugar industry.
``(iii) Whether, based on the needs described in clause
(i) and the impact described in clause (ii), the
establishment of additional terms and conditions is
appropriate.
``(C) Consultation.--In conducting the study under
subparagraph (A), the Secretary shall consult with
representatives of the domestic sugar industry and users of
refined sugar.
``(D) Report.--Not later than 1 year after the date of
enactment of this subsection, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that describes the findings of the study
conducted under subparagraph (A).
``(3) Establishment of additional terms and conditions
permitted.--
``(A) In general.--Based on the findings in the report
submitted under paragraph (2)(D), and after providing notice to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate, the Secretary may issue regulations in accordance
with subparagraph (B) to establish additional terms and
conditions with respect to refined sugar imports that are
necessary and appropriate.
``(B) Promulgation of regulations.--The Secretary may issue
regulations under subparagraph (A) if the regulations--
``(i) do not have an adverse impact on the domestic
sugar industry; and
``(ii) are consistent with the requirements of this
part, section 156 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7272), and obligations
under international trade agreements that have been
approved by Congress.''.
(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) Production History.--Except as provided in subsection (b),
the production history of a dairy operation for dairy margin coverage
is equal to the highest annual milk marketings of the participating
dairy operation during any 1 of the 2021, 2022, or 2023 calendar years.
``(b) Election by New Dairy Operations.--In the case of a
participating dairy operation that has been in operation for less than
a year, the participating dairy operation shall elect 1 of the
following methods for the Secretary to determine the production history
of the participating dairy operation:
``(1) The volume of the actual milk marketings for the months
the participating dairy operation has been in operation
extrapolated to a yearly amount.
``(2) An estimate of the actual milk marketings of the
participating dairy operation based on the herd size of the
participating dairy operation relative to the national rolling herd
average data published by the Secretary.''.
(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--
``(i) to carry out mandatory surveys of dairy
production cost and product yield information to be
reported by manufacturers required to report under section
273 of the Agricultural Marketing Act of 1946 (7 U.S.C.
1637b), for all products processed in the same facility or
facilities; and
``(ii) to publish the results of such surveys
biennially; and
``(E) $1,000,000 shall be used to conduct the study under
subsection (d) of section 359k of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359kk).''.
Subtitle D--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) In general.--In the case of unborn livestock death
losses incurred on or after January 1, 2024, the Secretary
shall make an additional payment to eligible producers on farms
that have incurred such losses in excess of the normal
mortality due to a condition specified in paragraph (1).
``(B) Payment rate.--Additional payments under subparagraph
(A) shall be made at a rate--
``(i) determined by the Secretary; and
``(ii) less than or equal to 85 percent of the payment
rate established with respect to the lowest weight class of
the livestock, as determined by the Secretary, acting
through the Administrator of the Farm Service Agency.
``(C) Payment amount.--The amount of a payment to an
eligible producer that has incurred unborn livestock death
losses shall be equal to the payment rate determined under
subparagraph (B) multiplied, in the case of livestock described
in--
``(i) subparagraph (A), (B), or (F) of subsection
(a)(4), by 1;
``(ii) subparagraph (D) of such subsection, by 2;
``(iii) subparagraph (E) of such subsection, by 12; and
``(iv) subparagraph (G) of such subsection, by the
average number of birthed animals (for one gestation cycle)
for the species of each such livestock, as determined by
the Secretary.
``(D) Unborn livestock death losses defined.--In this
paragraph, the term `unborn livestock death losses' means
losses of any livestock described in subparagraph (A), (B),
(D), (E), (F), or (G) of subsection (a)(4) that was gestating
on the date of the death of the livestock.''.
(b) Livestock Forage Disaster Program.--Section
1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014 (7 U.S.C.
9081(c)(3)(D)(ii)(I)) is amended--
(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;
``(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) 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 insurance, and coverage level
selected by the beginning farmer or rancher.
``(B) Percentage points adjustments.--The percentage points
referred to in subparagraph (A) are the following:
``(i) For each of the first and second reinsurance
years that a beginning farmer or rancher participates as a
beginning farmer or rancher in the applicable policy or
plan of insurance, 5 percentage points.
``(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. ADMINISTRATIVE AND OPERATING EXPENSE ADJUSTMENTS.
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k))
is amended by adding at the end the following:
``(10) Additional expenses.--
``(A) In general.--Beginning with the 2026 reinsurance
year, and for each reinsurance year thereafter, in addition to
the terms and conditions of the Standard Reinsurance Agreement,
to cover additional expenses for loss adjustment procedures,
the Corporation shall pay an additional administrative and
operating expense subsidy to approved insurance providers for
eligible contracts.
``(B) Payment amount.--In the case of an eligible contract,
the payment to an approved insurance provider required under
subparagraph (A) shall be the amount equal to 6 percent of the
net book premium.
``(C) Definitions.--In this paragraph:
``(i) Eligible 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.--Subject to subparagraph (B), beginning
with the 2026 reinsurance year, and for each reinsurance year
thereafter, the Corporation shall increase the total
administrative and operating expense reimbursements otherwise
required under the Standard Reinsurance Agreement in effect for
the reinsurance year in order to account for inflation, in a
manner consistent with the increases provided with respect to
the 2011 through 2015 reinsurance years under the enclosure
included in Risk Management Agency Bulletin numbered MGR-10-007
and dated June 30, 2010.
``(B) Special rule for 2026 reinsurance year.--The increase
under subparagraph (A) for the 2026 reinsurance year shall not
exceed the percentage change for the preceding reinsurance year
included in the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the Department
of Labor.
``(C) Administration.--An increase under subparagraph (A)--
``(i) shall apply with respect to all contracts
covering agricultural commodities that were subject to an
increase during the period of the 2011 through 2015
reinsurance years under the enclosure referred to in that
subparagraph; and
``(ii) shall not be considered 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) In general.--Notwithstanding subsection (a)(2), the
Corporation shall establish a pilot program under which contract
poultry growers, including growers of broilers and laying hens, may
elect to receive index-based insurance from extreme weather-related
risk resulting in increased utility costs (including costs of
natural gas, propane, electricity, water, and other appropriate
costs, as determined by the Corporation) associated with poultry
production.
``(2) Stakeholder engagement.--The Corporation shall engage
with poultry industry stakeholders in establishing the pilot
program under paragraph (1).
``(3) Location.--The pilot program established under paragraph
(1) shall be conducted in a sufficient number of counties to
provide a comprehensive evaluation of the feasibility,
effectiveness, and demand among producers in the top poultry
producing States, as determined by the Corporation.
``(4) Approval of policy or plan.--Notwithstanding section
508(l), the Board shall approve a policy or plan of insurance based
on the pilot program under paragraph (1)--
``(A) in accordance with section 508(h); and
``(B) not later than 2 years after the date of enactment of
this subsection.''.
Subtitle F--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--
``(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) $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. 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''.
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) 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''.
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--
(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''.
TITLE II--COMMITTEE ON ARMED SERVICES
SEC. 20001. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
IMPROVING THE QUALITY OF LIFE FOR MILITARY PERSONNEL.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary of Defense for fiscal year
2025, out of any money in the Treasury not otherwise appropriated, to
remain available until September 30, 2029--
(1) $230,480,000 for restoration and modernization costs under
the Marine Corps Barracks 2030 initiative;
(2) $119,000,000 for base operating support costs under the
Marine Corps;
(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) Temporary Increase in Percentage of Value of Authorized
Investment in Certain Privatized Military Housing Projects.--
(1) In general.--During the period beginning on the date of the
enactment of this section and ending on September 30, 2029, the
Secretary concerned shall apply--
(A) paragraph (1) of subsection (c) of section 2875 of
title 10, United States Code, by substituting ``60 percent''
for ``33 \1/3\ percent''; and
(B) paragraph (2) of such subsection by substituting ``60
percent'' for ``45 percent''.
(2) Secretary concerned defined.--In this subsection, the term
``Secretary concerned'' has the meaning given such term in section
101 of title 10, United States Code.
(c) Temporary Authority for Acquisition or Construction of
Privatized Military Unaccompanied Housing.--Section 2881a of title 10,
United States Code, is amended--
(1) by striking the heading and inserting ``Temporary authority
for acquisition or construction of privatized military
unaccompanied housing'';
(2) by striking ``Secretary of the Navy'' each place it appears
and inserting ``Secretary concerned'';
(3) by striking ``under the pilot projects'' each place it
appears and inserting ``pursuant to this section'';
(4) in subsection (a)--
(A) by striking the heading and inserting ``In General'';
and
(B) by striking ``carry out not more than three pilot
projects under the authority of this section or another
provision of this subchapter to use the private sector'' and
inserting ``use the authority under this subchapter to enter
into contracts with appropriate private sector entities'';
(5) in subsection (c), by striking ``privatized housing'' and
inserting ``privatized housing units'';
(6) by redesignating subsection (f) as subsection (e); and
(7) in subsection (e) (as so redesignated)--
(A) by striking ``under the pilot programs'' and inserting
``under this section''; and
(B) by striking ``September 30, 2009'' and inserting
``September 30, 2029''.
SEC. 20002. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR
SHIPBUILDING.
In addition to amounts otherwise available, there are appropriated
to the Secretary of Defense for fiscal year 2025, out of any money in
the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(1) $250,000,000 for the expansion of accelerated Training in
Defense Manufacturing program;
(2) $250,000,000 for United States production of turbine
generators for shipbuilding industrial base;
(3) $450,000,000 for United States additive manufacturing for
wire production and machining capacity for shipbuilding industrial
base;
(4) $492,000,000 for next-generation shipbuilding techniques;
(5) $85,000,000 for United States-made steel plate for
shipbuilding industrial base;
(6) $50,000,000 for machining capacity for naval propellers for
shipbuilding industrial base;
(7) $110,000,000 for rolled steel and fabrication facility for
shipbuilding industrial base;
(8) $400,000,000 for expansion of collaborative campus for
naval shipbuilding;
(9) $450,000,000 for application of autonomy and artificial
intelligence to naval shipbuilding;
(10) $500,000,000 for the adoption of advanced manufacturing
techniques in the shipbuilding industrial base;
(11) $500,000,000 for additional dry-dock capability;
(12) $50,000,000 for the expansion of cold spray repair
technologies;
(13) $450,000,000 for additional maritime industrial workforce
development programs;
(14) $750,000,000 for additional supplier development across
the naval shipbuilding industrial base;
(15) $250,000,000 for additional advanced manufacturing
processes across the naval shipbuilding industrial base;
(16) $4,600,000,000 for a second Virginia-class submarine in
fiscal year 2026;
(17) $5,400,000,000 for two additional Guided Missile Destroyer
(DDG) ships;
(18) $160,000,000 for advanced procurement for Landing Ship
Medium;
(19) $1,803,941,000 for procurement of Landing Ship Medium;
(20) $295,000,000 for development of a second Landing Craft
Utility shipyard and production of additional Landing Craft
Utility;
(21) $100,000,000 for 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;
(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;
(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;
(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;
(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.
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;
(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
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;
(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.
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;
(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;
(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) 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.
TITLE III--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) Transition Provision.--During the period beginning on the date
of enactment of this Act and ending on October 1, 2025, the Securities
and Exchange Commission may expend amounts in the Securities and
Exchange Commission Reserve Fund that were obligated before the date of
enactment of this Act for any program, project, or activity that is
ongoing (as of the day before the date of enactment of this Act) in
accordance with subsection (i) of section 4 of the Securities Exchange
Act of 1934 (15 U.S.C. 78d), as in effect on the day before the date of
enactment of this Act.
(d) Transfer of Remaining Amounts.--Effective on October 1, 2025,
the obligated and unobligated balances of amounts in the Securities and
Exchange Commission Reserve Fund shall be transferred to the general
fund of the Treasury.
(e) Closing of Account.--For the purposes of section 1555 of title
31, United States Code, the Securities and Exchange Commission Reserve
Fund shall be considered closed, and thereafter shall not be available
for obligation or expenditure for any purpose, upon execution of the
transfer required under subsection (d).
SEC. 30004. 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.).
TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
SEC. 40001. COAST GUARD MISSION READINESS.
(a) In General.--Chapter 11 of title 14, United States Code, is
amended by adding at the end the following:
``Subchapter V--Coast Guard Mission Readiness
``Sec. 1181. Special appropriations
``In addition to amounts otherwise available, there is appropriated
to the Coast Guard for fiscal year 2025, out of any money in the
Treasury not otherwise appropriated, $24,593,500,000, to remain
available until September 30, 2029, notwithstanding paragraphs (1) and
(2) of section 1105(a) and sections 1131, 1132, 1133, and 1156, to use
expedited processes to procure or acquire new operational assets and
systems, to maintain existing assets and systems, to design, construct,
plan, engineer, and improve necessary shore infrastructure, and to
enhance operational resilience for monitoring, search and rescue,
interdiction, hardening of maritime approaches, and navigational
safety, of which--
``(1) $1,142,500,000 is provided for procurement and
acquisition of fixed-wing aircraft, equipment related to such
aircraft and training simulators and program management for such
aircraft, to provide for security of the maritime border;
``(2) $2,283,000,000 is provided for procurement and
acquisition of rotary-wing aircraft, equipment related to such
aircraft and training simulators and program management for such
aircraft, to provide for security of the maritime border;
``(3) $266,000,000 is provided for procurement and acquisition
of long-range unmanned aircraft and base stations, equipment
related to such aircraft and base stations, and program management
for such aircraft and base stations, to provide for security of the
maritime border;
``(4) $4,300,000,000 is provided for procurement of Offshore
Patrol Cutters, equipment related to such cutters, and program
management for such cutters, to provide operational presence and
security of the maritime border and for interdiction of persons and
controlled substances;
``(5) $1,000,000,000 is provided for procurement of Fast
Response Cutters, equipment related to such cutters, and program
management for such cutters, to provide operational presence and
security of the maritime border and for interdiction of persons and
controlled substances;
``(6) $4,300,000,000 is provided for procurement of Polar
Security Cutters, equipment related to such cutters, and program
management for such cutters, to ensure timely presence of the Coast
Guard in the Arctic and Antarctic regions;
``(7) $3,500,000,000 is provided for procurement of Arctic
Security Cutters, equipment related to such cutters, and program
management for such cutters, to ensure timely presence of the Coast
Guard in the Arctic and Antarctic regions;
``(8) $816,000,000 is provided for procurement of light and
medium icebreaking cutters, and equipment relating to such cutters,
from shipyards that have demonstrated success in the cost-effective
application of design standards and in delivering, on schedule and
within budget, vessels of a size and tonnage that are not less than
the size and tonnage of the cutters described in this paragraph,
and for program management for such cutters, to expand domestic
icebreaking capacity;
``(9) $162,000,000 is provided for procurement of Waterways
Commerce Cutters, equipment related to such cutters, and program
management for such cutters, to support aids to navigation,
waterways and coastal security, and search and rescue in inland
waterways;
``(10) $4,379,000,000 is provided for design, planning,
engineering, recapitalization, construction, rebuilding, and
improvement of, and program management for, shore facilities, of
which--
``(A) $425,000,000 is provided for design, planning,
engineering, construction of, and program management for--
``(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 States Code, is amended by adding at the end the
following:
``subchapter v--coast guard mission readiness
``1181. Special appropriations.''.
SEC. 40002. 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
(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) 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 remaining
bandwidth required to be identified under paragraph (1).
(3) Required analysis.--
(A) In general.--In determining under paragraph (1) which
specific frequencies within the covered band to reallocate, the
Assistant Secretary shall determine the feasibility of the
reallocation of frequencies.
(B) Requirements.--In conducting the analysis under
subparagraph (A), the Assistant Secretary shall assess net
revenue potential, relocation or sharing costs, as applicable,
and the feasibility of reallocating specific frequencies, with
the goal of identifying the best approach to maximize net
proceeds of systems of competitive bidding for the Treasury,
consistent with section 309(j) of the Communications Act of
1934 (47 U.S.C. 309(j)).
(d) Auctions.--The Commission shall grant licenses for the
frequencies identified for reallocation under subsection (c) through
systems of competitive bidding in accordance with the following
schedule:
(1) Not later than 4 years after the date of enactment of this
Act, the Commission shall, after notifying the Assistant Secretary,
complete 1 or more systems of competitive bidding for not less than
200 megahertz of the frequencies.
(2) Not later than 8 years after the date of enactment of this
Act, the Commission shall, after notifying the Assistant Secretary,
complete 1 or more systems of competitive bidding for any
frequencies identified under subsection (c) that remain to be
auctioned after compliance with paragraph (1) of this subsection.
(e) Limitation.--The President shall modify or withdraw any
frequency proposed for reallocation under this section not later than
60 days before the commencement of a system of competitive bidding
scheduled by the Commission with respect to that frequency, if the
President determines that such modification or withdrawal is necessary
to protect the national security of the United States.
(f) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Department of Commerce for fiscal year
2025, out of any money in the Treasury not otherwise appropriated,
$50,000,000, to remain available through September 30, 2034, to provide
additional support to the Assistant Secretary to--
(1) 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) 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.
SEC. 40003. AIR TRAFFIC CONTROL IMPROVEMENTS.
(a) In General.--For the purpose of the acquisition, construction,
sustainment, and improvement of facilities and equipment necessary to
improve or maintain aviation safety, in addition to amounts otherwise
made available, there is appropriated to the Administrator of the
Federal Aviation Administration for fiscal year 2025, out of any money
in the Treasury not otherwise appropriated, to remain available until
September 30, 2029--
(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 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 launch and reentry licensing and permitting user
fees
``(a) Fees.--
``(1) In general.--The Secretary of Transportation shall impose
a fee, which shall be deposited in the account established under
subsection (b), on each launch or reentry carried out under a
license or permit issued under section 50904 during 2026 or a
subsequent year, in an amount equal to the lesser of--
``(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 the purposes of expenses of the Office of
Commercial Space Transportation of the Federal Aviation Administration
and to carry out section 630(b) of the FAA Reauthorization Act of 2024.
70 percent of the amounts deposited into the fund shall be available
for such purposes and shall be available without further appropriation
and without fiscal year limitation.''.
(b) Clerical Amendment.--The table of sections for chapter 509 of
title 51, United States Code, is amended by inserting after the item
relating to section 50923 the following:
``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. Special appropriations for Mars missions, Artemis
missions, and Moon to Mars program
``(a) In General.--In addition to amounts otherwise available,
there is appropriated to the Administration for fiscal year 2025, out
of any money in the Treasury not otherwise appropriated,
$9,995,000,000, to remain available until September 30, 2032, to use as
follows:
``(1) $700,000,000, to be obligated not later than fiscal year
2026, for the procurement, using a competitively bid, firm fixed-
price contract with a United States commercial provider (as defined
in section 50101(7)), of a high-performance Mars telecommunications
orbiter--
``(A) that--
``(i) is capable of providing robust, continuous
communications for--
``(I) a Mars sample return mission, as described in
section 432(3)(C) of the National Aeronautics and Space
Administration Transition Authorization Act of 2017 (51
U.S.C. 20302 note; Public Law 115-10); and
``(II) 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. 20302 note;
Public Law 117-167), of which not less than $750,000,000 shall be
obligated for each of fiscal years 2026, 2027, and 2028.
``(3) $4,100,000,000 for expenses related to meeting the
requirements of section 10812 of the National Aeronautics and Space
Administration Authorization Act of 2022 (51 U.S.C. 20301; Public
Law 117-167) for the procurement, transportation, integration,
operation, and other necessary expenses of the Space Launch System
for Artemis Missions IV and V, of which not less than
$1,025,000,000 shall be obligated for each of fiscal years 2026,
2027, 2028, and 2029.
``(4) $20,000,000 for expenses related to the continued
procurement of the multi-purpose crew vehicle described in section
303 of the National Aeronautics and Space Administration
Authorization Act of 2010 (42 U.S.C. 18323), known as the `Orion',
for use with the Space Launch System on the Artemis IV Mission and
reuse in subsequent Artemis Missions, of which not less than
$20,000,000 shall be obligated not later than fiscal year 2026.
``(5) $1,250,000,000 for expenses related to the operation of
the International Space Station and for the purpose of meeting the
requirement under section 503(a) of the National Aeronautics and
Space Administration Authorization Act of 2010 (42 U.S.C.
18353(a)), of which not less than $250,000,000 shall be obligated
for such expenses for each of fiscal years 2025, 2026, 2027, 2028,
and 2029.
``(6) $1,000,000,000 for infrastructure improvements at the
manned spaceflight centers of the Administration, of which not less
than--
``(A) $120,000,000 shall be obligated not later than fiscal
year 2026 for construction, revitalization, recapitalization,
or other infrastructure projects and improvements at the center
described in Executive Order 12641 (53 Fed. Reg. 18816;
relating to designating certain facilities of the National
Aeronautics and Space Administration in the State of
Mississippi as the John C. Stennis Space Center);
``(B) $250,000,000 shall be obligated not later than fiscal
year 2026 for construction, revitalization, recapitalization,
or other infrastructure projects and improvements at the center
described in Executive Order 11129 (28 Fed. Reg. 12787;
relating to designating certain facilities of the National
Aeronautics and Space Administration and of the Department of
Defense, in the State of Florida, as the John F. Kennedy Space
Center);
``(C) $300,000,000 shall be obligated not later than fiscal
year 2026 for construction, revitalization, recapitalization,
or other infrastructure projects and improvements at the center
described in the Joint Resolution entitled `Joint Resolution to
designate the Manned Spacecraft Center in Houston, Texas, as
the ``Lyndon B. Johnson Space Center'' in honor of the late
President', approved February 17, 1973 (Public Law 93-8; 87
Stat. 7);
``(D) $100,000,000 shall be obligated not later than fiscal
year 2026 for construction, revitalization, recapitalization,
or other infrastructure projects and improvements at the center
described in Executive Order 10870 (25 Fed. Reg. 2197; relating
to designating the facilities of the National Aeronautics and
Space Administration at Huntsville, Alabama, as the George C.
Marshall Space Flight Center);
``(E) $30,000,000 shall be obligated not later than fiscal
year 2026 for construction, revitalization, recapitalization,
or other infrastructure projects and improvements at the
Michoud Assembly Facility in New Orleans, Louisiana; and
``(F) $85,000,000 shall be obligated to carry out
subsection (b), of which not less than $5,000,000 shall be
obligated for the transportation of the space vehicle described
in that subsection, with the remainder transferred not later
than the date that is 18 months after the date of the enactment
of this section to the entity designated under that subsection,
for the purpose of construction of a facility to house the
space vehicle referred to in that subsection.
``(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.''.
(b) Clerical Amendment.--The table of sections for chapter 203 of
title 51, United States Code, is amended by adding at the end the
following:
``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) 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) 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''.
SEC. 40010. 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) Repeal of Inflation Reduction Act Provisions.--
(1) Onshore oil and gas royalty rates.--Subsection (a) of
section 50262 of Public Law 117-169 (136 Stat. 2056) is repealed,
and any provision of law amended or repealed by that subsection is
restored or revived as if that subsection had not been enacted into
law.
(2) Noncompetitive leasing.--Subsection (e) of section 50262 of
Public Law 117-169 (136 Stat. 2057) is repealed, and any provision
of law amended or repealed by that subsection is restored or
revived as if that subsection had not been enacted into law.
(b) Requirement to Immediately Resume Onshore Oil and Gas Lease
Sales.--
(1) In general.--The Secretary of the Interior shall
immediately resume quarterly onshore oil and gas lease sales in
compliance with the Mineral Leasing Act (30 U.S.C. 181 et seq.).
(2) Requirement.--The Secretary of the Interior shall ensure--
(A) that any oil and gas lease sale required under
paragraph (1) is conducted immediately on completion of all
applicable scoping, public comment, and environmental analysis
requirements under the Mineral Leasing Act (30 U.S.C. 181 et
seq.) and the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.); and
(B) that the processes described in subparagraph (A) are
conducted in a timely manner to ensure compliance with
subsection (b)(1).
(3) Lease of oil and gas lands.--Section 17(b)(1)(A) of the
Mineral Leasing Act (30 U.S.C. 226(b)(1)(A)), as amended by
subsection (a), is amended by inserting ``For purposes of the
previous sentence, the term `eligible lands' means all lands that
are subject to leasing under this Act and are not excluded from
leasing by a statutory prohibition, and the term `available', with
respect to eligible lands, means those lands that have been
designated as open for leasing under a land use plan developed
under section 202 of the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1712) and that have been nominated for leasing
through the submission of an expression of interest, are subject to
drainage in the absence of leasing, or are otherwise designated as
available pursuant to regulations adopted by the Secretary.'' after
``sales are necessary.''.
(c) Quarterly Lease Sales.--
(1) In general.--In accordance with the Mineral Leasing Act (30
U.S.C. 181 et seq.), each fiscal year, the Secretary of the
Interior shall conduct a minimum of 4 oil and gas lease sales of
available land in each of the following States:
(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) In general.--Any parcel of land subject to disposition
under this Act that is known or believed to contain oil or gas
deposits shall be made available for leasing, subject to paragraph
(2), by the Secretary of the Interior, not later than 18 months
after the date of receipt by the Secretary of an expression of
interest in leasing the applicable parcel of land available for
disposition under this section, if the Secretary determines that
the parcel of land is open to oil or gas leasing under the approved
resource management plan applicable to the planning area in which
the parcel of land is located that is in effect on the date on
which the expression of interest was submitted to the Secretary
(referred to in this subsection as the `approved resource
management plan').
``(2) Resource management plans.--
``(A) Lease terms and conditions.--A lease issued by the
Secretary under this section with respect to an applicable
parcel of land made available for leasing under paragraph (1)--
``(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) 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) 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) Lease Sales.--
(1) Gulf of america region.--
(A) In general.--Notwithstanding the 2024-2029 National
Outer Continental Shelf Oil and Gas Leasing Program (and any
successor leasing program that does not satisfy the
requirements of this section), in addition to lease sales which
may be held under that program, and except within areas subject
to existing oil and gas leasing moratoria, the Secretary of the
Interior shall conduct a minimum of 30 region-wide oil and gas
lease sales, in a manner consistent with the schedule described
in subparagraph (B), in the region identified in the map
depicting lease terms and economic conditions accompanying the
final notice of sale of the Bureau of Ocean Energy Management
entitled ``Gulf of Mexico Outer Continental Shelf Region-Wide
Oil and Gas Lease Sale 254'' (85 Fed. Reg. 8010 (February 12,
2020)).
(B) Timing requirement.--Of the not fewer than 30 region-
wide lease sales required under this paragraph, the Secretary
of the Interior shall--
(i) hold not fewer than 1 lease sale in the region
described in subparagraph (A) by December 15, 2025;
(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) Timing requirement.--Of the not fewer than 6 lease
sales required under this paragraph, the Secretary of the
Interior shall hold not fewer than 1 lease sale in the area
described in subparagraph (A) in each of calendar years 2026
through 2028, and in each of calendar years 2030 through 2032,
by March 15 of the applicable calendar year.
(b) Requirements.--
(1) Terms and stipulations for gulf of america sales.--In
conducting lease sales under subsection (a)(1), the Secretary of
the Interior--
(A) shall, subject to subparagraph (C), offer the same
lease form, lease terms, economic conditions, and lease
stipulations 4 through 9 as contained in the final notice of
sale of the Bureau of Ocean Energy Management entitled ``Gulf
of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease
Sale 254'' (85 Fed. Reg. 8010 (February 12, 2020));
(B) may update lease stipulations 1 through 3 and 10
described in that final notice of sale to reflect current
conditions for lease sales conducted under subsection (a)(1);
(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) 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) 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) Repeal.--Section 50261 of Public Law 117-169 (136 Stat.
2056) is repealed, and any provision of law amended or repealed by
that section is restored or revived as if that section had not been
enacted into law.
(2) Royalty rate.--Section 8(a)(1) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(1)) (as amended by paragraph
(1)) is amended--
(A) in subparagraph (A), by striking ``not less than 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. ROYALTIES ON EXTRACTED METHANE.
Section 50263 of Public Law 117-169 (30 U.S.C. 1727) is repealed.
SEC. 50104. 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) 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--
(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) 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) Rights-of-way.--Section 20001(c)(2) of Public Law 115-97
(16 U.S.C. 3143 note) shall apply to leases awarded under this
subsection.
(5) Surface development.--Section 20001(c)(3) of Public Law
115-97 (16 U.S.C. 3143 note) shall apply to leases awarded under
this subsection.
(c) Receipts.--Notwithstanding section 35 of the Mineral Leasing
Act (30 U.S.C. 191) and section 20001(b)(5) of Public Law 115-97 (16
U.S.C. 3143 note), of the amount of adjusted bonus, rental, and royalty
receipts derived from the oil and gas program and operations on the
Coastal Plain pursuant to this section--
(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) 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.
(b) Restoration of NPR-A Oil and Gas Leasing Program.--Effective
beginning on the date of enactment of this Act, the Secretary shall
expeditiously restore and resume oil and gas lease sales under the
Program for domestic energy production and Federal revenue in the areas
designated for oil and gas leasing as described in the NPR-A final
environmental impact statement and the NPR-A record of decision.
(c) Resumption of NPR-A Lease Sales.--
(1) In general.--Subject to paragraph (2), the Secretary shall
conduct not fewer than 5 lease sales under the Program by not later
than 10 years after the date of enactment of this Act.
(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 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).
(2) Qualified application.--The term ``qualified application''
means an application for a coal lease pending as of the date of
enactment of this Act or submitted within 90 days thereafter under
the lease by application program administered by the Bureau of Land
Management pursuant to the Mineral Leasing Act (30 U.S.C. 181 et
seq.) for which any required environmental review has commenced or
the Director of the Bureau of Land Management determines can
commence within 90 days after receiving the application.
(b) Coal Leasing Activities.--Not later than 90 days after the date
of enactment of this Act, the Secretary of the Interior--
(1) shall--
(A) with respect to each qualified application--
(i) 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.--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) 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) Advance Royalties.--With respect to a lease issued under
section 2 of the Mineral Leasing Act (30 U.S.C. 201) for which the
lessee has paid advance royalties under section 7(b) of that Act (30
U.S.C. 207(b)), the Secretary of the Interior shall provide to the
lessee a credit for the difference between the amount paid by the
lessee in advance royalties for the lease before the date of the
enactment of this Act and the amount the lessee would have been
required to pay if the amendment made by subsection (a) had been made
before the lessee paid advance royalties for the lease.
SEC. 50203. LEASES FOR KNOWN RECOVERABLE COAL RESOURCES.
Notwithstanding section 2(a)(3)(A) of the Mineral Leasing Act (30
U.S.C. 201(a)(3)(A)) and section 202(a) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1712(a)), not later than 90 days
after the date of enactment of this Act, the Secretary of the Interior
shall make available for lease known recoverable coal resources of not
less than 4,000,000 additional acres on Federal land 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. 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) 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. TIMBER SALES AND LONG-TERM CONTRACTING FOR THE FOREST
SERVICE AND THE BUREAU OF LAND MANAGEMENT.
(a) Forest Service.--
(1) Definitions.--In this subsection:
(A) Forest plan.--The term ``forest plan'' means a land and
resource management plan prepared by the Secretary for a unit
of the National Forest System pursuant to section 6 of the
Forest and Rangeland Renewable Resources Planning Act of 1974
(16 U.S.C. 1604).
(B) National forest system.--
(i) In general.--The term ``National Forest System''
means land of the National Forest System (as defined in
section 11(a) of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1609(a)))
administered by the Secretary.
(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) 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.
(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. 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.
(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) 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 <greek-e> B <greek-e> ((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.
(B) Approval.--The Secretary may approve an application
submitted under subparagraph (A) only if not less than 25
percent of the land within the area of the right-of-way is
authorized for use, occupancy, or development with respect to
an activity other than the generation of wind energy for the
entirety of the year in which the capacity fee is collected.
(C) Late determination.--
(i) In general.--If the Secretary approves an
application under subparagraph (B) for a wind energy
generation project after the date on which the holder of
the right-of-way for the project begins paying a capacity
fee, the Secretary shall apply the multiple-use reduction
factor described in subparagraph (A) to the capacity fee
for the first year beginning after the date of approval and
each year thereafter for the period during which the right-
of-way remains in effect.
(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) 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. 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--
(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) 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) 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).
SEC. 50305. 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) 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;
(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) 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. 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
(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. 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 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. 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.
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.
(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.
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) 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. 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) 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.
``(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) 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.--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) 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'',
(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) 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) Deduction for seniors.--
``(i) In general.--In the case of a taxable year
beginning before January 1, 2029, there shall be allowed a
deduction in an amount equal to $6,000 for each qualified
individual with respect to the taxpayer.
``(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) Married individuals.--If the taxpayer is a
married individual (within the meaning of section 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) 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) 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) Inflation Adjustments.--
``(1) Maximum amount of refundable credit.--In the case of a
taxable year beginning after 2024, the $1,400 amount in subsection
(h)(5) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable year
begins, determined by substituting `2017' for `2016' in
subparagraph (A)(ii) thereof.
``(2) Special rule for adjustment of credit amount.--In the
case of a taxable year beginning after 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) 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) 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) 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 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) 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) 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) 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--
``(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) 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) 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) State declared disaster.--For purposes of this
paragraph--
``(i) In general.--The term `State declared disaster'
means, with respect to any State, any natural catastrophe
(including any hurricane, tornado, storm, high water, wind-
driven water, tidal wave, tsunami, earthquake, volcanic
eruption, landslide, mudslide, snowstorm, or drought), or,
regardless of cause, any fire, flood, or explosion, in any
part of the State, which in the determination of the
Governor of such State (or the Mayor, in the case of the
District of Columbia) and the Secretary causes damage of
sufficient severity and magnitude to warrant the
application of the rules of this section.
``(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) 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) 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) 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 exceeds the
dollar amount at which the 37 percent rate bracket under section 1
begins with respect to the taxpayer.
``(b) Coordination With Other Limitations.--This section shall be
applied after the application of any other limitation on the allowance
of any itemized deduction.''.
(b) 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) 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) 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 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) 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) 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) 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) 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:
``(1) In general.--The term `qualified retirement savings
contributions' means, with respect to any taxable year, the sum
of--
``(A) the amount of contributions made by the eligible
individual during such taxable year to the ABLE account (within
the meaning of section 529A) of which such individual is the
designated beneficiary, and
``(B) in the case of any taxable year beginning before
January 1, 2027--
``(i) the amount of the qualified retirement
contributions (as defined in section 219(e)) made by the
eligible individual,
``(ii) the amount of--
``(I) any elective deferrals (as defined in section
402(g)(3)) of such individual, and
``(II) any elective deferral of compensation by
such individual under an eligible deferred compensation
plan (as defined in section 457(b)) of an eligible
employer described in section 457(e)(1)(A), and
``(iii) the amount of voluntary employee contributions
by such individual to any qualified retirement plan (as
defined in section 4974(c)).''.
(2) Coordination with secure 2.0 act of 2022 amendment.--
Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 is
repealed, and the Internal Revenue Code of 1986 shall be applied
and administered as though such paragraph were never enacted.
(3) 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) 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) 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 is amended by striking ``, with respect to the applicable period''.
(b) Kenya, Mali, Burkina Faso, and Chad Included as Hazardous Duty
Areas.--Section 11026(b) of Public Law 115-97 is amended to read as
follows:
``(b) Qualified Hazardous Duty Area.--For purposes of this section,
the term `qualified hazardous duty area' means each of the following
locations, but only during the period for which any member of the Armed
Forces of the United States is entitled to special pay under section
310 of title 37, United States Code (relating to special pay; duty
subject to hostile fire or imminent danger), for services performed in
such location:
``(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) 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) 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:
``(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) 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) 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 gross income'
means adjusted gross income increased by any amount
excluded from gross income under section 911, 931, or
933.''.
(c) 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. 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) 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) Qualified Tips.--For purposes of this section--
``(1) In general.--The term `qualified tips' means cash tips
received by an individual in an occupation which customarily and
regularly received tips on or before December 31, 2024, as provided
by the Secretary.
``(2) Exclusions.--Such term shall not include any amount
received by an individual unless--
``(A) such amount is paid voluntarily without any
consequence in the event of nonpayment, is not the subject of
negotiation, and is determined by the payor,
``(B) the trade or business in the course of which the
individual receives such amount is not a specified service
trade or business (as defined in section 199A(d)(2)), and
``(C) such other requirements as may be established by the
Secretary in regulations or other guidance are satisfied.
For purposes of subparagraph (B), in the case of an individual
receiving tips in the trade or business of performing services as
an employee, such individual shall be treated as receiving tips in
the course of a trade or business which is a specified service
trade or business if the trade or business of the employer is a
specified service trade or business.
``(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) 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) 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.--
(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
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 by redesignating the item relating
to section 224 as relating to section 225 and by inserting after the
item relating to section 223 the following new item:
``Sec. 224. Qualified tips.''.
(h) Published List of Occupations Traditionally Receiving Tips.--
Not later than 90 days after the date of the enactment of this Act, the
Secretary of the Treasury (or the Secretary's delegate) shall publish a
list of occupations which customarily and regularly received tips on or
before December 31, 2024, for purposes of section 224(d)(1) of the
Internal Revenue Code of 1986 (as added by subsection (a)).
(i) Withholding.--The Secretary of the Treasury (or the Secretary's
delegate) shall modify the procedures prescribed under section 3402(a)
of the Internal Revenue Code of 1986 for taxable years beginning after
December 31, 2025, to take into account the deduction allowed under
section 224 of such Code (as added by this Act).
(j) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
(k) Transition Rule.--In the case of any cash tips required to be
reported for periods before January 1, 2026, persons required to file
returns or statements under section 6041(a), 6041(d)(3), 6041A(a),
6041A(e)(3), 6050W(a), or 6050W(f)(2) of the Internal Revenue Code of
1986 (as amended by this section) may approximate a separate accounting
of amounts designated as cash tips by any reasonable method specified
by the Secretary.
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. QUALIFIED OVERTIME COMPENSATION.
``(a) In General.--There shall be allowed as a deduction an amount
equal to the qualified overtime compensation received during the
taxable year and included on statements furnished to the individual
pursuant to section 6041(d)(4) or 6051(a)(19).
``(b) Limitation.--
``(1) In general.--The amount allowed as a deduction under this
section for any taxable year shall not exceed $12,500 ($25,000 in
the case of a joint return).
``(2) Limitation based on adjusted gross income.--
``(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) 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) 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) 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) 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 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, is amended by redesignating the item relating to section 225
as an item relating to section 226 and by inserting after the item
relating to section 224 the following new item:
``Sec. 225. Qualified overtime compensation.''.
(f) Withholding.--The Secretary of the Treasury (or the Secretary's
delegate) shall modify the procedures prescribed under section 3402(a)
of the Internal Revenue Code of 1986 for taxable years beginning after
December 31, 2025, to take into account the deduction allowed under
section 225 of such Code (as added by this Act).
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
(h) Transition Rule.--In the case of qualified overtime
compensation required to be reported for periods before January 1,
2026, persons required to file returns or statements under section
6051(a)(19), 6041(a), or 6041(d)(4) of the Internal Revenue Code of
1986 (as amended by this section) may approximate a separate accounting
of amounts designated as qualified overtime compensation by any
reasonable method specified by the Secretary.
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) 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 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:
``SEC. 6050AA. RETURNS RELATING TO APPLICABLE PASSENGER VEHICLE LOAN
INTEREST RECEIVED IN TRADE OR BUSINESS FROM INDIVIDUALS.
``(a) In General.--Any person--
``(1) who is engaged in a trade or business, and
``(2) who, in the course of such trade or business, receives
from any individual interest aggregating $600 or more for any
calendar year on a specified passenger vehicle loan,
shall make the return described in subsection (b) with respect to each
individual from whom such interest was received at such time as the
Secretary may provide.
``(b) Form and Manner of Returns.--A return is described in this
subsection if such return--
``(1) is in such form as the Secretary may prescribe, and
``(2) contains--
``(A) the name and address of the individual from whom the
interest described in subsection (a)(2) was received,
``(B) the amount of such interest received for the calendar
year,
``(C) the amount of outstanding principal on the specified
passenger vehicle loan as of the beginning of such calendar
year,
``(D) the date of the origination of such loan,
``(E) the year, make, 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 written statement required under the preceding sentence shall be
furnished on or before January 31 of the year following the calendar
year for which the return under subsection (a) was required to be made.
``(d) Definitions.--For purposes of this section--
``(1) In general.--Terms used in this section which are also
used in paragraph (4) of section 163(h) shall have the same meaning
as when used in such paragraph.
``(2) Specified passenger vehicle loan.--The term `specified
passenger vehicle loan' means the indebtedness described in section
163(h)(4)(B) with respect to any applicable passenger vehicle.
``(e) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section, including regulations or other guidance to
prevent the duplicate reporting of information under this section.
``(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 is amended by adding at the end the
following new item:
``Sec. 6050AA. Returns relating to applicable passenger vehicle loan
interest received in trade or business from individuals.''.
(e) Effective Date.--The amendments made by this section shall
apply to indebtedness incurred after December 31, 2024.
SEC. 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--TRUMP ACCOUNTS
``Sec. 530A. Trump accounts.
``SEC. 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 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,
``(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.--
``(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--
``(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 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 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 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:
``SEC. 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) 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 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. 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 by inserting before the item relating to
section 140 the following new item:
``Sec. 139J. Certain contributions to Trump accounts.''.
(d) Trump Accounts Contribution Pilot Program.--
(1) In general.--Subchapter B of chapter 65 is amended by
adding at the end the following new section:
``SEC. 6434. TRUMP ACCOUNTS CONTRIBUTION PILOT PROGRAM.
``(a) In General.--In the case of an individual who makes an
election under this section with respect to an eligible child of the
individual, such eligible child shall be treated as making a payment
against the tax imposed by subtitle A (for the taxable year for which
the election was made) in an amount equal to $1,000.
``(b) Refund of Payment.--The amount treated as a payment under
subsection (a) shall be paid by the Secretary to the Trump account with
respect to which such eligible child is the account beneficiary.
``(c) Eligible Child.--For purposes of this section, the term
`eligible child' means a qualifying child (as defined in section
152(c))--
``(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) 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:
``SEC. 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 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 is amended by inserting after the item relating to
section 6658 the following new item:
``Sec. 6659. Improper claim for Trump account contribution pilot program
credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
(f) 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. 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).
(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) 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) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
property acquired after January 19, 2025.
(2) Specified plants.--Except as provided in paragraph (3), in
the case of any specified plant (as defined in section 168(k)(5)(B)
of the Internal Revenue Code of 1986, as amended by this section),
the amendments made by this section shall apply to such plants
which are planted or grafted after January 19, 2025.
(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. 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 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) 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) Time for and scope of election.--The election provided by
paragraph (1) may be made for any taxable year, but only if made
not later than the time prescribed by law for filing the return for
such taxable year (including extensions thereof). The method so
elected, and the period selected by the taxpayer, shall be adhered
to in computing taxable income for the taxable year for which the
election is made and for all subsequent taxable years unless, with
the approval of the Secretary, a change to a different method (or
to a different period) is authorized with respect to part or all of
such expenditures. The election shall not apply to any expenditure
paid or incurred during any taxable year before the taxable year
for which the taxpayer makes the election.
``(d) Special Rules.--
``(1) Land and other property.--This section shall not apply to
any expenditure for the acquisition or improvement of land, or for
the acquisition or improvement of property to be used in connection
with the research or experimentation and of a character which is
subject to the allowance under section 167 (relating to allowance
for depreciation, etc.) or section 611 (relating to allowance for
depletion); but for purposes of this section allowances under
section 167, and allowances under section 611, shall be considered
as expenditures.
``(2) Exploration expenditures.--This section shall not apply
to any expenditure paid or incurred for the purpose of ascertaining
the existence, location, extent, or quality of any deposit of ore
or other mineral (including oil and gas).
``(3) Software development.--For purposes of this section, any
amount paid or incurred in connection with the development of any
software shall be treated as a research or experimental
expenditure.''.
(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:
``(1) 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''.
(c) Change in Method of Accounting.--
(1) In general.--The amendments made by subsection (a) shall be
treated as a change in method of accounting for purposes of section
481 of the Internal Revenue Code of 1986 and--
(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 by inserting after the item
relating to section 174 the following new item:
``Sec. 174A. Domestic research or experimental expenditures.''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection or subsection (f)(1), the amendments made by this
section shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2024.
(2) Treatment of foreign research or experimental expenditures
upon disposition.--
(A) In general.--The amendment by subsection (b)(1)(C)(ii)
shall apply to property disposed, retired, or abandoned after
May 12, 2025.
(B) No inference.--The amendment made by subsection
(b)(1)(C)(ii) shall not be construed to create any inference
with respect to the proper application of section 174(d) of the
Internal Revenue Code of 1986 with respect to taxable years
beginning before May 13, 2025.
(3) Coordination with research credit.--The amendment made by
subsection (b)(2)(B) shall apply to taxable years beginning after
December 31, 2024.
(4) No inference with respect to coordination with research
credit for prior periods.--The amendment made by subsection
(b)(2)(B) shall not be construed to create any inference with
respect to the proper application of section 280C(c) of the
Internal Revenue Code of 1986 with respect to taxable years
beginning before January 1, 2025.
(f) Transition Rules.--
(1) Election for retroactive application by certain small
businesses.--
(A) In general.--At the election of an eligible taxpayer,
paragraphs (1) and (3) of subsection (e) shall each be applied
by substituting ``December 31, 2021'' for ``December 31,
2024''. An election made under this subparagraph shall be made
in such manner as the Secretary may provide and not later than
the date that is 1 year after the date of the enactment of this
Act. The taxpayer shall file an amended return for each taxable
year affected by such election.
(B) Eligible taxpayer.--For purposes of this paragraph, the
term ``eligible taxpayer'' means any taxpayer (other than a tax
shelter prohibited from using the cash receipts and
disbursements method of accounting under section 448(a)(3))
which meets the gross receipts test of section 448(c) for the
first taxable year beginning after December 31, 2024.
(C) Election treated as change in method of accounting.--In
the case of any taxpayer which elects the application of
subparagraph (A)--
(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.--
An election under section 280C(c)(2) of the Internal Revenue
Code of 1986 (or revocation of such election) for any taxable
year beginning after December 31, 2021, by an eligible taxpayer
making an election under subparagraph (A) shall not fail to be
treated as timely made (or as made on the return) if made
during the 1-year period beginning on the date of the enactment
of this Act on an amended return for such taxable year.
(2) Election to deduct certain unamortized amounts paid or
incurred in taxable years beginning before january 1, 2025.--
(A) In general.--In the case of any domestic research or
experimental expenditures (as defined in section 174A, as added
by subsection (a)) which are paid or incurred in taxable years
beginning after December 31, 2021, and before January 1, 2025,
and which was charged to capital account, a taxpayer may
elect--
(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.
(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) 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) 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) Effective Date and Special Rule.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
(2) Special rule for short taxable years.--The Secretary of the
Treasury (or the Secretary's delegate) may prescribe such rules as
are necessary or appropriate to provide for the application of the
amendments made by this section in the case of any taxable year of
less than 12 months that begins after December 31, 2024, and ends
before the date of the enactment of this Act.
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 which is in
force during the taxable year, the applicable percentage of the
total amount of premiums paid or incurred by such employer
during such taxable year with respect to such insurance
policy.'', and
(B) by adding at the end the following:
``(3) Rate of payment determined without regard to whether
leave is taken.--For purposes of determining the applicable
percentage with respect to paragraph (1)(B), the rate of payment
under the insurance policy shall be determined without regard to
whether any qualifying employees were on family and medical leave
during the taxable year.'',
(2) in subsection (b)(1), by striking ``credit allowed'' and
inserting ``wages taken into account'',
(3) in subsection (c), by striking paragraphs (3) and (4) and
inserting the following:
``(3) Aggregation rule.--
``(A) In general.--Except as provided in subparagraph (B),
all persons which are treated as a single employer under
subsections (b) and (c) of section 414 shall be treated as a
single employer.
``(B) Exception.--
``(i) In general.--Subparagraph (A) shall not apply to
any person who establishes to the satisfaction of the
Secretary that such person has a substantial and legitimate
business reason for failing to provide a written policy
described in paragraph (1) or (2).
``(ii) Substantial and legitimate business reason.--For
purposes of clause (i), the term `substantial and
legitimate business reason' shall not include the operation
of a separate line of business, the rate of wages or
category of jobs for employees (or any similar basis), or
the application of State or local laws relating to family
and medical leave, but may include the grouping of
employees of a common law employer.
``(4) Treatment of benefits mandated or paid for by state or
local governments.--For purposes of this section, any leave which
is paid by a State or local government or required by State or
local law--
``(A) except as provided in subparagraph (B), shall be
taken into account in determining the amount of paid family and
medical leave provided by the employer, and
``(B) shall not be taken into account in determining the
amount of the paid family and medical leave credit under
subsection (a).'',
(4) in subsection (d)--
(A) in paragraph (1), by inserting ``(or, at the election
of the employer, for not less than 6 months)'' after ``1 year
or more'',
(B) in paragraph (2)--
(i) by inserting ``, as determined on an annualized
basis (pro-rata for part-time employees),'' after
``compensation'', and
(ii) by striking the period at the end and inserting
``, and'', and
(C) by adding at the end the following:
``(3) is customarily employed for not less than 20 hours per
week.'', and
(5) by striking subsection (i).
(b) No Double Benefit.--Section 280C(a) is amended--
(1) by striking ``45S(a)'' and inserting ``45S(a)(1)(A)'', and
(2) by inserting after the first sentence the following: ``No
deduction shall be allowed for that portion of the premiums paid or
incurred for the taxable year which is equal to that portion of the
paid family and medical leave credit which is determined for the
taxable year under section 45S(a)(1)(B).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 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) 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
``(II) in the case of the amount in paragraph
(5)(A), `calendar year 2017' for `calendar year
2016'.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service in taxable years beginning after
December 31, 2024.
SEC. 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) the adjusted basis of the qualified production
property shall be reduced by the amount of such deduction
before computing the amount otherwise allowable as a
depreciation deduction under this chapter for such taxable year
and any subsequent taxable year.
``(2) Qualified production property.--For purposes of this
subsection--
``(A) In general.--The term `qualified production property'
means that portion of any nonresidential real property--
``(i) to which this section applies,
``(ii) which is used by the taxpayer as an integral
part of a qualified production activity,
``(iii) which is placed in service in the United States
or any possession of the United States,
``(iv) the original use of which commences with the
taxpayer,
``(v) the construction of which begins after January
19, 2025, and before January 1, 2029,
``(vi) 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) such property was not used in a qualified
production activity (determined without regard to the
second sentence of subparagraph (D)) by any person at
any time during the period beginning on January 1,
2021, and ending on May 12, 2025,
``(II) 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) Qualified production activity.--The term `qualified
production activity' means the manufacturing, production, or
refining of a qualified product. The activities of any taxpayer
do not constitute manufacturing, production, or refining of a
qualified product unless the activities of such taxpayer result
in a substantial transformation of the property comprising the
product.
``(E) Production.--The term `production' shall not include
activities other than agricultural production and chemical
production.
``(F) Qualified product.--The term `qualified product'
means any tangible personal property if such property is not a
food or beverage prepared in the same building as a retail
establishment in which such property is sold.
``(G) Syndication.--For purposes of subparagraph (A)(iv),
rules similar to the rules of subsection (k)(2)(E)(iii) shall
apply.
``(H) Extension of placed in service date under certain
circumstances.--The Secretary may extend the date under
subparagraph (A)(vii) with respect to any property that meets
the requirements of clauses (i) through (vi) of subparagraph
(A) if the Secretary determines that an act of God (as defined
in section 101(1) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980) prevents the taxpayer
from placing such property in service before such date.
``(3) Deduction allowed in computing minimum tax.--For purposes
of determining alternative minimum taxable income under section 55,
the deduction under section 167 for qualified production property
shall be determined under this section without regard to any
adjustment under section 56.
``(4) Coordination with certain other provisions.--
``(A) Other special depreciation allowances.--For purposes
of subsections (k)(7), (l)(3)(D), and (m)(2)(B)(iii)--
``(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. For purposes of subsection (g)(7)(A), qualified
production property to which this subsection applies shall be
treated as separate nonresidential real property.
``(5) Recapture.--If, at any time during the 10-year period
beginning on the date that any qualified production property is
placed in service by the taxpayer, such property ceases to be used
as described in paragraph (2)(A)(ii) and is used by the taxpayer in
a productive use not described in paragraph (2)(A)(ii)--
``(A) section 1245 shall be applied--
``(i) by treating such property as having been disposed
of by the taxpayer as of the first time such property is so
used in a productive use not described in paragraph
(2)(A)(ii), and
``(ii) by treating the amount described in subparagraph
(B) of section 1245(a)(1) with respect to such disposition
as being not less than the amount described in subparagraph
(A) of such section, and
``(B) the basis of the taxpayer in such property, and the
taxpayer's allowance for depreciation with respect to such
property, shall be appropriately adjusted to take into account
amounts recognized by reason of subparagraph (A).
``(6) 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) 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
``(B) providing for the application of paragraph (5) with
respect to a change in use described in such paragraph by a
transferee following a fully or partially tax free transfer of
qualified production property.''.
(b) Treatment of Qualified Production Property as Section 1245
Property.--Section 1245(a)(3) is amended by striking ``or'' at the end
of subparagraph (E), by striking the period at the end of subparagraph
(F) and inserting ``, or'', and by adding at the end the following new
subparagraph:
``(G) any qualified production property (as defined in
section 168(n)(2)).''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 70308. ENHANCEMENT OF ADVANCED MANUFACTURING INVESTMENT CREDIT.
(a) In General.--Section 48D(a) is amended by striking ``25
percent'' and inserting ``35 percent''.
(b) 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',
`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) 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)''.
(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) 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) 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
``(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) 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) 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) Effective date.--The amendments made by this subsection
shall apply to sales or other dispositions (including pursuant to
deemed sales or other deemed dispositions or a transaction subject
to section 367(d) of the Internal Revenue Code of 1986) occurring
after June 16, 2025.
(b) Expense Apportionment Limited to Properly Allocable Expenses.--
(1) In general.--Section 250(b)(3)(A)(ii) is amended to read as
follows:
``(ii) expenses and deductions (including taxes), other
than interest expense and research or experimental
expenditures, properly allocable to such gross income.''.
(2) 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
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
is amended by striking ``Global intangible low-taxed income''
and inserting ``Net CFC tested income''.
(b) Deduction for Foreign-derived Deduction Eligible Income.--
(1) In general.--Section 250(a)(1)(A) is amended by striking
``foreign-derived intangible income'' and inserting ``foreign-
derived deduction eligible income''.
(2) Conforming amendments.--
(A) Section 250(a)(2) is amended by striking ``foreign-
derived intangible income'' each place it appears and inserting
``foreign-derived deduction eligible income''.
(B) Section 250(b), as amended by subsection (a), is
amended--
(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 is amended
by striking ``intangible'' and inserting ``deduction
eligible''.
(c) 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''.
(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) 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) 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) 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).''.
(c) Regulatory Authority.--Section 163(j), as amended by subsection
(a), is amended by redesignating paragraphs (11) and (12) as paragraphs
(12) and (13) and by inserting after paragraph (10) the following:
``(11) Regulatory authority.--The Secretary shall issue such
regulations or guidance as may be necessary or appropriate to carry
out the purposes of this subsection, including regulations or
guidance to determine which business interest is taken into account
under this subsection and section 59A(c)(3).''.
(d) 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) 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) 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) Effective Date.--The amendments made by this section shall
apply to taxable years of specified foreign corporations beginning
after November 30, 2025.
(c) Transition Rule.--
(1) In general.--In the case of a corporation that is a
specified foreign corporation as of November 30, 2025, such
corporation's first taxable year beginning after such date shall
end at the same time as the first required year (within the meaning
of section 898(c)(1) of the Internal Revenue Code of 1986) ending
after such date. If any specified foreign corporation is required
by the amendments made by this section to change its taxable year
for its first taxable year beginning after November 30, 2025--
(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) 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) 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. AMOUNTS INCLUDED IN GROSS INCOME OF FOREIGN CONTROLLED
UNITED STATES SHAREHOLDERS.
``(a) In General.--In the case of any foreign controlled United
States shareholder of a foreign controlled foreign corporation--
``(1) this subpart (other than sections 951A, 951(b), and 957)
shall be applied with respect to such shareholder (separately from,
and in addition to, the application of this subpart without regard
to this section)--
``(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--
``(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) 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 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) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after December
31, 2025.
(e) Special Rule.--
(1) In general.--Except to the extent provided by the Secretary
of the Treasury (or the Secretary's delegate), the effective date
of any amendment to the Internal Revenue Code of 1986 shall be
applied by treating references to United States shareholders as
including references to foreign controlled United States
shareholders, and by treating references to controlled foreign
corporations as including references to foreign controlled foreign
corporations.
(2) Definitions.--Any term used in paragraph (1) which is used
in subpart F of part III of subchapter N of chapter 1 of the
Internal Revenue Code of 1986 (as amended by this section) shall
have the meaning given such term in such subpart.
(f) 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.--
``(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) 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)''.
(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) 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.--
``(1) In general.--The credit allowable under subsection (a)
for any taxable year shall not exceed $500,000 ($600,000 in the
case of an eligible small business).
``(2) Inflation adjustment.--In the case of any taxable year
beginning after 2026, the $500,000 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) 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) 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) In general.--In the case of a taxable year beginning
after December 31, 2002, each of the dollar amounts in paragraphs
(3) and (4) of subsection (a) and paragraphs (1) and (2)(A)(i) of
subsection (b) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable year
begins, determined by substituting `calendar year 2001' for
`calendar year 2016' in subparagraph (A)(ii) thereof.
``(2) Rounding.--If any amount as increased under paragraph (1)
is not a multiple of $10, such amount shall be rounded to the
nearest multiple of $10.
``(3) Special rule for refundable portion.--In the case of the
dollar amount in subsection (a)(4), paragraph (1) shall be
applied--
``(A) by substituting `2025' for `2002' in the matter
preceding subparagraph (A), and
``(B) by substituting `calendar year 2024' for `calendar
year 2001' in subparagraph (B) thereof.''.
(c) Exclusion of Refundable Portion of Credit From Carryforward.--
Section 23(c)(1) is amended by striking ``credit allowable under
subsection (a)'' and inserting ``portion of the credit allowable under
subsection (a) which is allowed under this subpart''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 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) 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) 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 adjusted
gross income for the taxable year exceeds $75,000 ($150,000 in
the case of a joint return).''.
(b) 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. 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).
``(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.--
``(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) 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 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. SCHOLARSHIPS FOR QUALIFIED ELEMENTARY OR SECONDARY
EDUCATION EXPENSES OF ELIGIBLE STUDENTS.
``(a) In General.--In the case of an individual, gross income shall
not include any amounts provided to such individual or any dependent of
such individual pursuant to a scholarship for qualified elementary or
secondary education expenses of an eligible student which is provided
by a scholarship granting organization.
``(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 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) 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) 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) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable year
begins, determined by substituting `calendar year 2025' for
`calendar year 2016' in subparagraph (A)(ii) thereof.
``(2) Rounding.--If any increase under paragraph (1) is not a
multiple of $50, such increase shall be rounded to the nearest
multiple of $50.''.
(c) Effective Date.--The amendment made by this section shall apply
to payments made after December 31, 2025.
SEC. 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 to the term `qualified higher education
expense' shall include a reference to the following expenses in
connection with enrollment or attendance at, or for students
enrolled at or attending, an elementary or secondary public,
private, or religious school:
``(A) Tuition.
``(B) Curriculum and curricular materials.
``(C) Books or other instructional materials.
``(D) Online educational materials.
``(E) Tuition for tutoring or educational classes outside
of the home, including at a tutoring facility, but only if the
tutor or instructor is not related to the student and--
``(i) is licensed as a teacher in any State,
``(ii) has taught at an eligible educational
institution, or
``(iii) is a subject matter expert in the relevant
subject.
``(F) Fees for a nationally standardized norm-referenced
achievement test, an advanced placement examination, or any
examinations related to college or university admission.
``(G) Fees for dual enrollment in an institution of higher
education.
``(H) Educational therapies for students with disabilities
provided by a licensed or accredited practitioner or provider,
including occupational, behavioral, physical, and speech-
language therapies.''.
(2) 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) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after December 31, 2025.
SEC. 70414. CERTAIN POSTSECONDARY CREDENTIALING EXPENSES TREATED AS
QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 ACCOUNTS.
(a) In General.--Section 529(e)(3) is amended by adding at the end
the following new subparagraph:
``(C) Certain postsecondary credentialing expenses.--The
term `qualified higher education expenses' includes qualified
postsecondary credentialing expenses (as defined in subsection
(f)).''.
(b) Qualified Postsecondary Credentialing Expenses.--Section 529 is
amended by redesignating subsection (f) as subsection (g) and by
inserting after subsection (e) the following new subsection:
``(f) Qualified Postsecondary Credentialing Expenses.--For purposes
of this section--
``(1) In general.--The term `qualified postsecondary
credentialing expenses' means--
``(A) tuition, fees, books, supplies, and equipment
required for the enrollment or attendance of a designated
beneficiary in a recognized postsecondary credential program,
or any other expense incurred in connection with enrollment in
or attendance at a recognized postsecondary credential program
if such expense would, if incurred in connection with
enrollment or attendance at an eligible educational
institution, be covered under subsection (e)(3)(A),
``(B) fees for testing if such testing is required to
obtain or maintain a recognized postsecondary credential, and
``(C) fees for continuing education if such education is
required to maintain a recognized postsecondary credential.
``(2) Recognized postsecondary credential program.--The term
`recognized postsecondary credential program' means any program to
obtain a recognized postsecondary credential if--
``(A) such program is included on a State list prepared
under section 122(d) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3152(d)),
``(B) such program is listed in the 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).''.
(c) 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) 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.
``(B) Federally-subsidized royalty income.--
``(i) In general.--Net investment income shall be
determined by taking into account any Federally-subsidized
royalty income as gross investment income.
``(ii) Federally-subsidized royalty income.--For
purposes of this subparagraph--
``(I) In general.--The term `Federally-subsidized
royalty income' means any otherwise-regulatory-exempt
royalty income if any Federal funds were used in the
research, development, or creation of the patent,
copyright, or other intellectual or intangible property
from which such royalty income is derived.
``(II) Otherwise-regulatory-exempt royalty
income.--For purposes of this subparagraph, the term
`otherwise-regulatory-exempt royalty income' means
royalty income which (but for this subparagraph) would
not be taken into account as gross investment income by
reason of being derived from patents, copyrights, or
other intellectual or intangible property which
resulted from the work of students or faculty members
in their capacities as such with the applicable
educational institution.
``(III) Federal funds.--The term `Federal funds'
includes any grant made by, and any payment made under
any contract with, any Federal agency to the applicable
educational institution, any related organization, or
any student or faculty member referred to in subclause
(II).
``(g) Assets and Net Investment Income of Related Organizations.--
``(1) In general.--For purposes of subsections (d) and (f),
assets and net investment income of any related organization with
respect to an educational institution shall be treated as assets
and net investment income, respectively, of the educational
institution, except that--
``(A) no such amount shall be taken into account with
respect to more than 1 educational institution, and
``(B) unless such organization is controlled by such
institution or is described in section 509(a)(3) with respect
to such institution for the taxable year, assets and net
investment income which are not intended or available for the
use or benefit of the educational institution shall not be
taken into account.
``(2) Related organization.--For purposes of this subsection,
the term `related organization' means, with respect to an
educational institution, any organization which--
``(A) controls, or is controlled by, such institution,
``(B) is controlled by 1 or more persons which also control
such institution, or
``(C) is a supported organization (as defined in section
509(f)(3)), or an organization described in section 509(a)(3),
during the taxable year with respect to such institution.
``(h) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary to prevent avoidance of the tax
under this section, including regulations or other guidance to prevent
avoidance of such tax through the restructuring of endowment funds or
other arrangements designed to reduce or eliminate the value of net
investment income or assets subject to the tax imposed by this
section.''.
(b) Requirement to Report Certain Information With Respect to
Application of Excise Tax Based on Investment Income of Private
Colleges and Universities.--Section 6033 is amended by redesignating
subsection (o) as subsection (p) and by inserting after subsection (n)
the following new subsection:
``(o) Requirement to Report Certain Information With Respect to
Excise Tax Based on Investment Income of Private Colleges and
Universities.--Each applicable educational institution described in
section 4968(c) which is subject to the requirements of subsection (a)
shall include on the return required under subsection (a)--
``(1) the number of 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) 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) 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) 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) 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).
(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) 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) Applicable start date.--For purposes of this section, the
term `applicable start date' means, with respect to any qualified
opportunity zone designated under this section, the January 1
following the date on which such qualified opportunity zone was
certified and designated by the Secretary under subsection
(b)(1)(B).''.
(4) Effective date.--The amendments made by this subsection
shall apply to areas designated under section 1400Z-1 of the
Internal Revenue Code of 1986 after the date of the enactment of
this Act.
(c) Application of Special Rules for Capital Gains.--
(1) Repeal of sunset on election.--Section 1400Z-2(a)(2) is
amended to read as follows:
``(2) 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) 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) Qualified rural opportunity fund.--For purposes of
subparagraph (B)(iii)--
``(i) Qualified rural opportunity fund.--The term
`qualified rural opportunity fund' means a qualified
opportunity fund that holds at least 90 percent of its
assets in qualified opportunity zone property which--
``(I) is qualified opportunity zone business
property substantially all of the use of which, during
substantially all of the fund's holding period for such
property, was in a qualified opportunity zone comprised
entirely of a rural area, or
``(II) is qualified opportunity zone stock, or a
qualified opportunity zone partnership interest, in a
qualified opportunity zone business in which
substantially all of the tangible property owned or
leased is qualified opportunity zone business property
described in subsection (d)(3)(A)(i) and substantially
all the use of which is in a qualified opportunity zone
comprised entirely of a rural area.
For purposes of the preceding sentence, property held in
the fund shall be measured under rules similar to the rules
of subsection (d)(1).
``(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) Applicable date.--For purposes of this subparagraph,
the term `applicable date' means, with respect to any
corporation or partnership which is a qualified opportunity
zone business, the earliest date described in subparagraph
(D)(i)(I) with respect to the qualified opportunity zone
business property held by such qualified opportunity zone
business.''.
(C) Special rule for improvement of existing structures in
rural areas.--Section 1400Z-2(d)(2)(D)(ii) is amended by
inserting ``(50 percent of such adjusted basis in the case of
property in a qualified opportunity zone comprised entirely of
a rural area (as defined in subsection (b)(2)(C)(ii))'' after
``the adjusted basis of such property''.
(5) Effective dates.--
(A) In general.--Except as otherwise provided in this
paragraph, the amendments made by this subsection shall apply
to amounts invested in qualified opportunity funds after
December 31, 2026.
(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. RETURNS WITH RESPECT TO QUALIFIED OPPORTUNITY FUNDS AND
QUALIFIED RURAL OPPORTUNITY FUNDS.
``(a) In General.--Every qualified opportunity fund shall file an
annual return (at such time and in such manner as the Secretary may
prescribe) containing the information described in subsection (b).
``(b) Information From Qualified Opportunity Funds.--The
information described in this subsection is--
``(1) the name, address, and taxpayer identification number of
the qualified opportunity fund,
``(2) whether the qualified opportunity fund is organized as a
corporation or a partnership,
``(3) the value of the total assets held by the qualified
opportunity fund as of each date described in section 1400Z-
2(d)(1),
``(4) the value of all qualified opportunity zone property held
by the qualified opportunity fund on each such date,
``(5) with respect to each investment held by the qualified
opportunity fund in qualified opportunity zone stock or a qualified
opportunity zone partnership interest--
``(A) the name, address, and taxpayer identification number
of the corporation in which such stock is held or the
partnership in which such interest is held, as the case may be,
``(B) each North American Industry Classification System
(NAICS) code that applies to the trades or businesses conducted
by such corporation or partnership,
``(C) the population census 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--
``(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. INFORMATION REQUIRED FROM QUALIFIED OPPORTUNITY ZONE
BUSINESSES AND QUALIFIED RURAL OPPORTUNITY ZONE BUSINESSES.
``(a) In General.--Every applicable qualified opportunity zone
business shall furnish to the qualified opportunity fund described in
subsection (b) a written statement at such time, in such manner, and
setting forth such information as the Secretary may by regulations
prescribe for purposes of enabling such qualified opportunity fund to
meet the requirements of section 6039K(b)(5).
``(b) Applicable Qualified Opportunity Zone Business.--For purposes
of subsection (a), the term `applicable qualified opportunity zone
business' means any qualified opportunity zone business--
``(1) which is a trade or business of a qualified opportunity
fund,
``(2) in which a qualified opportunity fund holds qualified
opportunity zone stock, or
``(3) in which a qualified opportunity fund holds a qualified
opportunity zone partnership interest.
``(c) Other Terms.--Any term used in this section which is also
used in subchapter Z of chapter 1 shall have the meaning given such
term under such subchapter.
``(d) Application to Qualified Rural Opportunity Businesses.--Every
applicable qualified rural opportunity zone business (as defined in
subsection (b) determined after application of the substitutions
described in this sentence) shall furnish the written statement
required under subsection (a), applied--
``(1) by substituting `qualified rural opportunity' for
`qualified opportunity' each place it appears, and
``(2) by treating any reference (after the application of
paragraph (1)) to qualified rural opportunity zone stock, a
qualified rural opportunity zone partnership interest, or a
qualified rural opportunity zone business as stock, an interest, or
a business, respectively, described in subclause (I) or (II), as
the case may be, of section 1400Z-2(b)(2)(C)(i).''.
(2) Penalties.--
(A) In general.--Part II of subchapter B of chapter 68 is
amended by inserting after section 6725 the following new
section:
``SEC. 6726. FAILURE TO COMPLY WITH INFORMATION REPORTING REQUIREMENTS
RELATING TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY
FUNDS.
``(a) In General.--If any person required to file a return under
section 6039K fails to file a complete and correct return under such
section in the time and in the manner prescribed therefor, such person
shall pay a penalty of $500 for each day during which such failure
continues.
``(b) Limitation.--
``(1) In general.--The maximum penalty under this section on
failures with respect to any 1 return shall not exceed $10,000.
``(2) Large qualified opportunity funds.--In the case of any
failure described in subsection (a) with respect to a fund the
gross assets of which (determined on the last day of the taxable
year) are in excess of $10,000,000, paragraph (1) shall be applied
by substituting `$50,000' for `$10,000'.
``(c) Penalty in Cases of Intentional Disregard.--If a failure
described in subsection (a) is due to intentional disregard, then--
``(1) subsection (a) shall be applied by substituting `$2,500'
for `$500',
``(2) subsection (b)(1) shall be applied by substituting
`$50,000' for `$10,000', and
``(3) subsection (b)(2) shall be applied by substituting
`$250,000' for `$50,000'.
``(d) Inflation Adjustment.--
``(1) In general.--In the case of any failure relating to a
return required to be filed in a calendar year beginning after
2025, each of the dollar amounts in subsections (a), (b), and (c)
shall be increased by an amount equal to--
``(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 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 is amended by inserting after the
item relating to section 6039J the following new items:
``Sec. 6039K. Returns with respect to qualified opportunity funds and
qualified rural opportunity funds.
``Sec. 6039L. Information required from qualified opportunity zone
businesses and qualified rural opportunity zone businesses.''.
(B) The table of sections for part II of subchapter B of
chapter 68 is amended by inserting after the item relating to
section 6725 the following new item:
``Sec. 6726. Failure to comply with information reporting requirements
relating to qualified opportunity funds and qualified rural
opportunity funds.''.
(5) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
(e) Secretary Reporting of Data on Opportunity Zone and Rural
Opportunity Zone Tax Incentives.--
(1) In general.--In addition to amounts otherwise available,
there is appropriated, out of any money in the Treasury not
otherwise appropriated, $15,000,000, to remain available until
September 30, 2028, for necessary expenses of the Internal Revenue
Service to make the reports described in paragraph (2).
(2) Reports.--As soon as practical after the date of the
enactment of this Act, and annually thereafter, the Secretary of
the Treasury, or the Secretary's delegate (referred to in this
section as the ``Secretary'') shall make publicly available a
report on qualified opportunity funds.
(3) Information included.--The report required under paragraph
(2) shall include, to the extent available, the following
information:
(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) In general.--Beginning with the report submitted under
paragraph (2) for the 6th year after the date of the enactment
of this Act, the Secretary shall include in such report the
impacts and outcomes of a designation of a population census
tract as a qualified opportunity zone as measured by economic
indicators, such as job creation, poverty reduction, new
business starts, and other metrics as determined by the
Secretary.
(B) Semi-decennial information.--
(i) In general.--In the case of any report submitted
under paragraph (2) in the 6th year or the 11th year after
the date of the enactment of this Act, the Secretary shall
include the following information:
(I) For population census tracts designated as a
qualified opportunity zone, a comparison (based on
aggregate information) of the factors listed in clause
(iii) between the 5-year period ending on the date of
the enactment of Public Law 115-97 and the most recent
5-year period for which data is available.
(II) For population census tracts designated as a
qualified opportunity zone, a comparison (based on
aggregate information) of the factors listed in clause
(iii) for the most recent 5-year period for which data
is available between such population census tracts and
similar population census tracts that were not
designated as a qualified opportunity zone.
(ii) Control groups.--For purposes of clause (i), the
Secretary may combine population census tracts into such
groups as the Secretary determines appropriate for purposes
of making comparisons.
(iii) Factors listed.--The factors listed in this
clause are the following:
(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) shall establish appropriate procedures to ensure that
any amounts reported do not disclose taxpayer return
information that can be associated with any particular taxpayer
or competitive or proprietary information, and
(B) if necessary to protect taxpayer return information,
may combine information required with respect to individual
population census tracts into larger geographic areas.
(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) 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
``(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) 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) 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) 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 for the taxable
year. The preceding sentence shall be applied--
``(i) first, by taking into account charitable
contributions to which subparagraph (D) applies to the
extent thereof,
``(ii) second, by taking into account charitable
contributions to which subparagraph (C) applies to the
extent thereof,
``(iii) third, by taking into account charitable
contributions to which subparagraph (B) applies to the
extent thereof,
``(iv) fourth, by taking into account charitable
contributions to which subparagraph (E) applies to the
extent thereof,
``(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) 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:
``(i) 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) 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 clause (ii) thereof
shall be taken into account as a charitable contribution for
the succeeding taxable year, except that, for purposes of
determining under this subparagraph whether such contribution
is allowed in such succeeding taxable year, contributions in
such succeeding taxable year (determined without regard to this
paragraph) shall be taken into account under subsection
(b)(2)(A) before any contribution taken into account by reason
of this paragraph.
``(B) 5-year carryforward.--No charitable contribution may
be carried forward under subparagraph (A) to any taxable year
following the fifth taxable year after the taxable year in
which the charitable contribution was first taken into account.
For purposes of the preceding sentence, contributions shall be
treated as allowed on a first-in first-out basis.
``(C) Contributions disallowed by 1-percent floor carried
forward only from years in which 10 percent limitation is
exceeded.--In the case of any taxable year from which a
charitable contribution is carried forward under subparagraph
(A) (determined without regard this subparagraph), subparagraph
(A) shall be applied by substituting `clause (i) or (ii)' for
`clause (ii)'.
``(D) Special rule for net operating loss carryovers.--The
amount of charitable contributions carried forward under
subparagraph (A) shall be reduced to the extent that such
carryfoward would (but for this subparagraph) reduce taxable
income (as computed for purposes of the second sentence of
section 172(b)(2)) and increase a net operating loss carryover
under section 172 to a succeeding taxable year.''.
(c) Conforming Amendments.--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) 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) Effective Date.--The amendment made by this section shall apply
to distilled spirits brought into the United States after December 31,
2025.
SEC. 70428. 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 conduct of such activity is in furtherance of 1 or
more of the purposes specified in section 305(i)(1)(A) of such Act (as
so in effect). For purposes of this paragraph, activities substantially
related to participation or investment in fisheries include the
harvesting, processing, transportation, sales, and marketing of fish
and fish products of the Bering Sea and Aleutian Islands statistical
and reporting areas.
(b) Application to Certain Wholly Owned Subsidiaries.--If the
assets of a trade or business relating to an activity described in
subsection (a) of any subsidiary wholly owned by an entity identified
in section 305(i)(1)(D) of the Magnuson-Stevens Fishery Conservation
and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in effect on the date
of enactment of this section) are transferred to such entity (including
in liquidation of such subsidiary) not later than 18 months after the
date of the enactment of this Act--
(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) 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 ``any
residential construction contract (as defined in section 460(e)(4))''.
(c) 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) 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) 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 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) 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 stock
issued by such corporation and acquired by the taxpayer on
or before the applicable date.
``(5) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2026, the $15,000,000 amount in paragraph
(4)(B) shall be increased by an amount equal to --
``(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) 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.''.
(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) 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) Effective date.--The amendments made by this subsection
shall apply to stock issued after the date of the enactment of this
Act.
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 third party settlement organization shall be required
to report any information under subsection (a) with respect to third
party network transactions of any participating payee only if--
``(1) the amount which would otherwise be reported under
subsection (a)(2) with respect to such transactions exceeds
$20,000, and
``(2) the aggregate number of such transactions exceeds 200.''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in section 9674 of the American
Rescue Plan Act.
(b) Application of De Minimis Rule for Third Party Network
Transactions to Backup Withholding.--
(1) In general.--Section 3406(b) is amended by adding at the
end the following new paragraph:
``(8) Other reportable payments include payments in settlement
of third party network transactions only where aggregate
transactions exceed reporting threshold for the calendar year.--
``(A) In general.--Any payment in settlement of a third
party network transaction required to be shown on a return
required under section 6050W which is made during any calendar
year shall be treated as a reportable payment only if--
``(i) the aggregate number of transactions with respect
to the participating payee during such calendar year
exceeds the number of transactions specified in section
6050W(e)(2), and
``(ii) the aggregate amount of transactions with
respect to the participating payee during such calendar
year exceeds the dollar amount specified in section
6050W(e)(1) at the time of such payment.
``(B) Exception if third party network transactions made in
prior year were reportable.--Subparagraph (A) shall not apply
with respect to payments to any participating payee during any
calendar year if one or more payments in settlement of third
party network transactions made by the payor to the
participating payee during the preceding calendar year were
reportable payments.''.
(2) Effective date.--The amendment made by this subsection
shall apply to calendar years beginning after December 31, 2024.
SEC. 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''.
(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) 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
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 by striking the item relating to section 181
and inserting the following new item:
``Sec. 181. Treatment of certain qualified productions.''.
(i) Effective Date.--The amendments made by this section shall
apply to productions commencing in taxable years ending after the date
of the enactment of this Act.
SEC. 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:
``SEC. 139L. INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL
PROPERTY.
``(a) In General.--Gross income shall not include 25 percent of the
interest received by a qualified lender on any qualified real estate
loan.
``(b) Qualified Lender.--For purposes of this section, the term
`qualified lender' means--
``(1) any bank or savings association the deposits of which are
insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et
seq.),
``(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--
``(A) any real property which is substantially used for the
production of one or more agricultural products,
``(B) any real property which is substantially used in the
trade or business of fishing or seafood processing, and
``(C) any aquaculture facility.
Such term shall not include any property which is not located in a
State or a possession of the United States.
``(4) Aquaculture facility.--The term `aquaculture facility'
means any land, structure, or other appurtenance that is used for
aquaculture (including any hatchery, rearing pond, raceway, pen, or
incubator).
``(d) Coordination With Section 265.--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 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.--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.''
(d) Effective Date.--The amendments made by this section shall
apply to calendar quarters beginning more than 90 days after the date
of the enactment of this Act.
SEC. 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. 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). The preceding sentence shall not apply to the sale
of substantially all the assets of a taxpayer to a buyer if
such buyer enters into an agreement with the Secretary under
which such buyer is liable for the remaining installments due
under this subsection in the same manner as if such buyer were
the taxpayer.
``(3) Proration of deficiency to installments.--If an election
is made under subsection (a) to pay the applicable net tax
liability in installments and a deficiency has been assessed with
respect to such applicable net tax liability, the deficiency shall
be prorated to the installments payable under subsection (a). The
part of the deficiency so prorated to any installment the date for
payment of which has not arrived shall be collected at the same
time as, and as a part of, such installment. The part of the
deficiency so prorated to any installment the date for payment of
which has arrived shall be paid upon notice and demand from the
Secretary. This section shall not apply if the deficiency is due to
negligence, to intentional disregard of rules and regulations, or
to fraud with intent to evade tax.
``(c) Election.--
``(1) In general.--Any election under subsection (a) shall be
made not later than the due date for the return of tax for the
taxable year described in subsection (a).
``(2) Partnerships and s corporations.--In the case of a sale
or exchange described in subsection (a) by a partnership or S
corporation, the election under subsection (a) shall be made at the
partner or shareholder level. The Secretary may prescribe such
regulations or other guidance as necessary to carry out the
purposes of this paragraph.
``(d) Definitions.--For purposes of this section--
``(1) Applicable net tax liability.--
``(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).
``(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 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) 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. 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) 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)--
(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.
(b) 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) 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) 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).''.
(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) 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 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
``(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) Guidance.--The Secretary shall issue
such guidance as is necessary to carry out the
purposes of this clause, including the
establishment of rules to prevent entities from
evading, circumventing, or abusing the application
of the restrictions described subparagraph (C) and
subclauses (II) and (III) of this clause through a
contract, agreement, or other arrangement.
``(II) Application of rules prior to issuance of
guidance.--During any period prior to the date that the
guidance described in subclause (I)(bb) is issued by
the Secretary, for purposes of clause (i)(II), the term
`effective control' means the unrestricted contractual
right of a contractual counterparty to--
``(aa) determine the quantity or timing of
production of an eligible component produced by the
taxpayer,
``(bb) determine the amount or timing of
activities related to the production of electricity
undertaken at a qualified facility of the taxpayer
or the storage of electrical energy in energy
storage technology of the taxpayer,
``(cc) determine which entity may purchase or
use the output of a production unit of the taxpayer
that produces eligible components,
``(dd) determine which entity may purchase or
use the output of a qualified facility of the
taxpayer,
``(ee) restrict access to data critical to
production or storage of energy undertaken at a
qualified facility of the taxpayer, or to the site
of production or any part of a qualified facility
or energy storage technology of the taxpayer, to
the personnel or agents of such contractual
counterparty, or
``(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) Licensing and other agreements.--
``(aa) In general.--In addition to subclause
(II), for purposes of clause (i)(II), the term
`effective control' means, with respect to a
licensing agreement for the provision of
intellectual property (or any other contract,
agreement or other arrangement entered into with a
contractual counterparty related to such licensing
agreement) with respect to a qualified facility,
energy storage technology, or the production of an
eligible component, any of the following:
``(AA) A contractual right retained by the
contractual counterparty to specify or
otherwise direct 1 or more sources of
components, subcomponents, or applicable
critical minerals utilized in a qualified
facility, energy storage technology, or in the
production of an eligible component.
``(BB) A contractual right retained by the
contractual counterparty to direct the
operation of any qualified facility, any energy
storage technology, or any production unit that
produces an eligible component.
``(CC) A contractual right retained by the
contractual counterparty to limit the
taxpayer's utilization of intellectual property
related to the operation of a qualified
facility or energy storage technology, or in
the production of an eligible component.
``(DD) A contractual right retained by the
contractual counterparty to receive royalties
under the licensing agreement or any similar
agreement (or payments under any related
agreement) beyond the 10th year of the
agreement (including modifications or
extensions thereof).
``(EE) A contractual right retained by the
contractual counterparty to direct or otherwise
require the taxpayer to enter into an agreement
for the provision of services for a duration
longer than 2 years (including any
modifications or extensions thereof).
``(FF) Such contract, agreement, or other
arrangement does not provide the licensee with
all the technical data, information, and know-
how necessary to enable the licensee to produce
the eligible component or components subject to
the contract, agreement, or other arrangement
without further involvement from the
contractual counterparty or a specified foreign
entity.
``(GG) Such contract, agreement, or other
arrangement was entered into (or modified) on
or after the date of enactment of this
paragraph.
``(bb) Exception.--
``(AA) In general.--Item (aa) shall not
apply in the case of a bona fide purchase or
sale of intellectual property.
``(BB) Bona fide purchase or sale.--For
purposes of item (aa), any purchase or sale of
intellectual property where the agreement
provides that ownership of the intellectual
property reverts to the contractual
counterparty after a period of time shall not
be considered a bona-fide purchase or sale.
``(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) 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 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 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) 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).
``(J) Beginning of construction.--For purposes of applying
any provision under this paragraph, the beginning of
construction with respect to any property shall be determined
pursuant to rules similar to the rules under Internal Revenue
Service Notice 2013-29 and Internal Revenue Service Notice
2018-59 (as well as any subsequently issued guidance
clarifying, modifying, or updating either such Notice), as in
effect on January 1, 2025.
``(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) 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.--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) 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,
``(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.--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
``(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.--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) 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) In general.--Not later than December 31,
2026, the Secretary shall issue safe harbor tables (and
such other guidance as deemed necessary) to--
``(aa) identify the percentage of total direct
costs of any manufactured product which is
attributable to a prohibited foreign entity,
``(bb) identify the percentage of total direct
material costs of any eligible component which is
attributable to a prohibited foreign entity, and
``(cc) provide 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) Safe harbors prior to issuance.--For
purposes of this paragraph, prior to the date on which
the Secretary issues the safe harbor tables described
in subclause (I), and for construction of a qualified
facility or energy storage technology which begins on
or before the date which is 60 days after the date of
issuance of such tables, a taxpayer may--
``(aa) use the tables included in Internal
Revenue Service Notice 2025-08 to establish the
percentage of the total direct costs of any listed
eligible component and any manufactured product,
and
``(bb) rely on a certification by the supplier
of the manufactured product, eligible component, or
constituent element, material, or subcomponent of
an eligible component--
``(AA) of the total direct costs or the
total direct material costs, as applicable, of
such product or component that was not produced
or manufactured by a prohibited foreign entity,
or
``(BB) that such product or component was
not produced or manufactured by a prohibited
foreign entity.
``(III) Exception.--Notwithstanding subclauses (I)
and (II)--
``(aa) if the taxpayer knows (or has reason to
know) that a manufactured product or eligible
component was produced or manufactured by a
prohibited foreign entity, the taxpayer shall treat
all direct costs with respect to such manufactured
product, or all direct material costs with respect
to such eligible component, as attributable to a
prohibited foreign entity, and
``(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 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) be retained by the supplier and the
taxpayer for a period of not less than 6 years and
shall be provided to the Secretary upon request,
and
``(dd) be from the supplier from which the
taxpayer purchased any manufactured product,
eligible component, or constituent elements,
materials, or subcomponents of an eligible
component, stating--
``(AA) that such property was not produced
or manufactured by a prohibited foreign entity
and that the supplier does not know (or have
reason to know) that any prior supplier in the
chain of production of that property is a
prohibited foreign entity,
``(BB) for purposes of section 45X, the
total direct material costs for each component,
constituent element, material, or subcomponent
that were not produced or manufactured by a
prohibited foreign entity, or
``(CC) for purposes of section 45Y or
section 48E, the total direct costs
attributable to all manufactured products that
were not produced or manufactured by a
prohibited foreign entity.
``(iv) Existing contract.--Upon the election of the
taxpayer (in such form and manner as the Secretary shall
designate), in the case of any manufactured product,
eligible component, or constituent element, material, or
subcomponent of an eligible component which is--
``(I) acquired by the taxpayer, or manufactured or
assembled by or for the taxpayer, pursuant to a binding
written contract which was entered into prior to June
16, 2025, and
``(II)(aa) placed into service before January 1,
2030 (or, in the case of an applicable facility, as
defined in section 45Y(d)(4)(B), before January 1,
2028) in a facility the construction of which began
before August 1, 2025, or
``(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.
``(v) Anti-circumvention rules.--The Secretary shall
prescribe such regulations and guidance as may be necessary
or appropriate to prevent circumvention of the rules under
this subparagraph, including prevention of--
``(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.--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--
``(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) 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) 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.--
``(i) In general.--Subject to clause (ii), for purposes
of subparagraph (B)(iv), the term `advanced nuclear
facility' means any nuclear facility the reactor design for
which is approved in the manner described in section
45J(d)(2).
``(ii) Special rule.--For purposes of clause (i), a
facility shall be deemed to have a reactor design which is
approved in the manner described in section 45J(d)(2) if
the Nuclear Regulatory Commission has authorized
construction and issued a site-specific construction permit
or combined license with respect to such facility (without
regard to whether the reactor design was approved after
December 31, 1993).''.
(2) Nonapplication for clean electricity investment credit.--
Section 48E(a)(3)(A)(i) is amended by inserting ``, as applied
without regard to clause (iv) thereof'' after ``section
45(b)(11)(B)''.
(g) Conforming Amendments.--Section 45Y(b)(1) is amended--
(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 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
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. 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 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 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) 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.
(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) 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 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) 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) Payments to prohibited foreign entities.--
``(A) In general.--If there is an applicable payment made
by a specified taxpayer before the close of the 10-year period
beginning on the date such taxpayer placed in service
investment credit property which is eligible for the clean
electricity investment credit under section 48E(a), then the
tax under this chapter for the taxable year in which such
applicable payment occurs shall be increased by 100 percent of
the aggregate decrease in the credits allowed under section 38
for all prior taxable years which would have resulted solely
from reducing to zero any credit determined under section 46
which is attributable to the clean electricity investment
credit under section 48E(a) with respect to such property.
``(B) Applicable payment.--For purposes of this paragraph,
the term `applicable payment' means, with respect to any
taxable year, a payment or payments described in 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
(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) 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) 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).
``(iv) 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) 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) 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:
``(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) 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) 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) 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.
``(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) 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 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) 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) 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) 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) 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.--
(1) In general.--Section 45Z(b)(1)(B) is amended by adding at
the end the following new clauses:
``(iv) Exclusion of indirect land use changes.--
Notwithstanding clauses (i), (ii), and (iii), the emissions
rate shall be adjusted as necessary to exclude any
emissions attributed to indirect land use change. Any such
adjustment shall be based on regulations or methodologies
determined by the Secretary.
``(v) Animal manures.--With respect to any
transportation fuel which is derived from animal manure,
the Secretary--
``(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) 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 under section
45Z is allowable (as determined without regard to subsection
(a)(1)(A) of such section).''.
(B) 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) 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
amended by striking ``after `section 6426(k)(3)),''' and inserting
``after `section 40B),'''.
(2) Effective date.--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:
``(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) 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) 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) 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,
(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) 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) 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.
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) 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))--
``(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) 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. 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:
``(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, is amended by
adding at the end the following new item:
``Sec. 6435. Dyed fuel.''.
(c) 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) 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) 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--
(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) 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) Effective Date.--The amendment made by this section shall apply
to services performed, and property transferred, after the date of the
enactment of this Act.
(c) Rule of Construction.--Nothing in this section, or the
amendments made by this section, shall be construed to create any
inference with respect to the proper treatment under section 707(a) of
the Internal Revenue Code of 1986 with respect to payments from a
partnership to a partner for services performed, or property
transferred, on or before the date of the enactment of this Act.
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) Remuneration from controlled group members.--
``(A) In general.--In the case of any publicly held
corporation which is a member of a controlled group--
``(i) paragraph (1) shall be applied by substituting
`specified covered employee' for `covered employee', and
``(ii) if any person which is a member of such
controlled group (other than such publicly held
corporation) provides applicable employee remuneration to
an individual who is a specified covered employee of such
controlled group and the aggregate amount described in
subparagraph (B)(ii) with respect to such specified covered
employee exceeds $1,000,000--
``(I) paragraph (1) shall apply to such person with
respect to such remuneration, and
``(II) paragraph (1) shall apply to such publicly
held corporation and to each such related person by
substituting `the allocable limitation amount' for
`$1,000,000'.
``(B) Allocable limitation amount.--For purposes of this
paragraph, the term `allocable limitation amount' means, with
respect to any member of the controlled group referred to in
subparagraph (A) with respect to any specified covered employee
of such controlled group, the amount which bears the same ratio
to $1,000,000 as--
``(i) the amount of applicable employee remuneration
provided by such member with respect to such specified
covered employee, bears to
``(ii) the aggregate amount of applicable employee
remuneration provided by all such members with respect to
such specified covered employee.
``(C) Specified covered employee.--For purposes of this
paragraph, the term `specified covered employee' means, with
respect to any controlled group--
``(i) any employee described in subparagraph (A), (B),
or (D) of paragraph (3), with respect to the publicly held
corporation which is a member of such controlled group, and
``(ii) any employee who would be described in
subparagraph (C) of paragraph (3) if such subparagraph were
applied by taking into account the employees of all members
of the controlled group.
``(D) Controlled group.--For purposes of this paragraph,
the term `controlled group' means any group treated as a single
employer under subsection (b), (c), (m), or (o) of section
414.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2025.
SEC. 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
``Sec. 4475. Imposition of tax.
``SEC. 4475. IMPOSITION OF TAX.
``(a) In General.--There is hereby imposed on any remittance
transfer a tax equal to 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--
``(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
is amended by inserting after the item relating to subchapter B the
following new item:
``subchapter c--remittance transfers''.
(c) Effective Date.--The amendments made by this section shall
apply to transfers made after December 31, 2025.
SEC. 70605. 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.
(5) 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) 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) COVID-ERTC Document.--For purposes of this section, the term
``COVID-ERTC document'' means any return, affidavit, claim, or other
document related to any credit or advance payment of a credit under
section 3134 of the Internal Revenue Code of 1986, including any
document related to eligibility for, or the calculation or
determination of any amount directly related to, any such credit or
advance payment.
(d) Limitation on Credits and Refunds.--Notwithstanding section
6511 of the Internal Revenue Code of 1986, no credit under section 3134
of the Internal Revenue Code of 1986 shall be allowed, and no refund
with respect to any such credit shall be made, after the date of the
enactment of this Act, unless a claim for such credit or refund was
filed by the taxpayer on or before January 31, 2024.
(e) Extension of Limitation on Assessment.--Section 3134(l) is
amended to read as follows:
``(l) Extension of Limitation on Assessment.--
``(1) In general.--Notwithstanding section 6501, the limitation
on the time period for the assessment of any amount attributable to
a credit claimed under this section shall not expire before the
date that is 6 years after the latest of--
``(A) the date on which the original return which includes
the calendar quarter with respect to which such credit is
determined is filed,
``(B) the date on which such return is treated as filed
under section 6501(b)(2), or
``(C) the date on which the claim for credit or refund with
respect to such credit is made.
``(2) Deduction for wages taken into account in determining
improperly claimed credit.--
``(A) In general.--Notwithstanding section 6511, in the
case of an assessment attributable to a credit claimed under
this section, the limitation on the time period for credit or
refund of any amount attributable to a deduction for improperly
claimed ERTC wages shall not expire before the time period for
such assessment expires under paragraph (1).
``(B) Improperly claimed ertc wages.--For purposes of this
paragraph, the term `improperly claimed ERTC wages' means, with
respect to an assessment attributable to a credit claimed under
this section, the wages with respect to which a deduction would
not have been allowed if the portion of the credit to which
such assessment relates had been properly claimed.''.
(f) Amendment to Penalty for Erroneous Claim for Refund or
Credit.--Section 6676(a) is amended by striking ``income tax'' and
inserting ``income or employment tax''.
(g) Effective Dates.--
(1) In general.--The provisions of this section shall apply to
aid, assistance, and advice provided after the date of the
enactment of this Act.
(2) Limitation on credits and refunds.--Subsection (d) shall
apply to credits and refunds allowed or made after the date of the
enactment of this Act.
(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) 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).
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) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 70607. 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.
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.
(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. 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).
(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) provide--
``(A) beginning not later than January 1, 2027, in the case
of 1 of the 50 States and the District of Columbia, for a
process to regularly obtain address information for individuals
enrolled under such plan (or a waiver of such plan) in
accordance with subsection (vv); and
``(B) beginning not later than October 1, 2029--
``(i) for the State to submit to the system established
by the Secretary under subsection (uu), with respect to an
individual enrolled or seeking to enroll under such plan,
not less frequently than once each month and during each
determination or redetermination of the eligibility of such
individual for medical assistance under such plan (or
waiver of such plan)--
``(I) the social security number of such
individual, if such individual has a social security
number and is required to provide such number to enroll
under such plan (or waiver); and
``(II) such other information with respect to such
individual as determined necessary by the Secretary for
purposes of preventing individuals from simultaneously
being enrolled under State plans (or waivers of such
plans) of multiple States;
``(ii) for the use of such system to prevent such
simultaneous enrollment; and
``(iii) in the case that such system indicates that an
individual enrolled or seeking to enroll under such plan
(or waiver of such plan) is enrolled under a State plan (or
waiver of such a plan) of another State, for the taking of
appropriate action (as determined by the Secretary) to
identify whether such an individual resides in the State
and disenroll an individual from the State plan of such
State if such individual does not reside in such State
(unless such individual meets such an exception as the
Secretary may specify).''; and
(B) by adding at the end the following new subsections:
``(uu) Prevention of Enrollment Under Multiple State Plans.--
``(1) In general.--Not later than October 1, 2029, the
Secretary shall establish a system to be utilized by the Secretary
and States to prevent an individual from being simultaneously
enrolled under the State plans (or waivers of such plans) of
multiple States. Such system shall--
``(A) provide for the receipt of information submitted by a
State under subsection (a)(88)(B)(i); and
``(B) not less than once each month, transmit information
to a State (or allow the Secretary to transmit information to a
State) regarding whether an individual enrolled or seeking to
enroll under the State plan of such State (or waiver of such
plan) is enrolled under the State plan (or waiver of such plan)
of another State.
``(2) Standards.--The Secretary shall establish such standards
as determined necessary by the Secretary to limit and protect
information submitted under such system and ensure the privacy of
such information, consistent with subsection (a)(7).
``(3) Implementation funding.--There are appropriated to the
Administrator of the Centers for Medicare & Medicaid Services, out
of amounts in the Treasury not otherwise appropriated, in addition
to amounts otherwise available--
``(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--
(i) by striking ``In order'' and inserting ``(A) In
order'';
(ii) by striking ``through the Public'' and inserting
``through--
``(i) the Public'';
(iii) by striking the period at the end and inserting
``; and
``(ii) beginning October 1, 2029, the system established by
the Secretary under section 1902(uu).''; and
(iv) by adding at the end the following new
subparagraph:
``(B) Beginning October 1, 2029, the Secretary may determine
that a State is not required to have in operation an eligibility
determination system which provides for data matching (for purposes
of address verification under section 1902(vv)) through the system
described in subparagraph (A)(i) to meet the requirements of this
paragraph.''.
(B) Managed care.--Section 1932 of the Social Security Act
(42 U.S.C. 1396u-2) is amended by adding at the end the
following new subsection:
``(j) Transmission of Address Information.--Beginning January 1,
2027, each contract under a State plan with a managed care entity (as
defined in section 1932(a)(1)(B)) or with a prepaid inpatient health
plan or prepaid ambulatory health plan (as such terms are defined in
section 1903(m)(9)(D)), shall provide that such entity or plan shall
promptly transmit to the State any address information for an
individual enrolled with such entity or plan that is provided to such
entity or plan directly from, or verified by such entity or plan
directly with, such individual.''.
(b) CHIP.--
(1) In general.--Section 2107(e)(1) of the Social Security Act
(42 U.S.C. 1397gg(e)(1)) is amended--
(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) provide that the State shall comply with the eligibility
verification requirements under subsection (ww), except that this
paragraph shall apply only in the case of the 50 States and the
District of Columbia.''; and
(2) by adding at the end the following new subsection:
``(ww) Verification of Certain Eligibility Criteria.--
``(1) In general.--For purposes of subsection (a)(89), the
eligibility verification requirements, beginning January 1, 2027,
are as follows:
``(A) Quarterly screening to verify enrollee status.--The
State shall, not less frequently than quarterly, review the
Death Master File (as such term is defined in section 203(d) of
the Bipartisan Budget Act of 2013) or a successor system that
provides such information needed to determine whether any
individuals enrolled for medical assistance under the State
plan (or waiver of such plan) are deceased.
``(B) Disenrollment under state plan.--If the State
determines, based on information obtained from the Death Master
File, that an individual enrolled for medical assistance under
the State plan (or waiver of such plan) is deceased, the State
shall--
``(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.--
Beginning January 1, 2028, as part of the enrollment (or
reenrollment or revalidation of enrollment) of a provider or
supplier under this title, and not less frequently than
quarterly during the period that such provider or supplier is
so enrolled, the State conducts a check of the Death Master
File (as such term is defined in section 203(d) of the
Bipartisan Budget Act of 2013) to determine whether such
provider or supplier is deceased.''.
SEC. 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) 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) 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:
``(I) Individuals enrolled under subsection
(a)(10)(A)(i)(VIII).
``(II) Individuals described in such subsection who
are otherwise enrolled under a waiver of such plan that
provides coverage that is equivalent to minimum
essential coverage (as described in section
5000A(f)(1)(A) of the Internal Revenue Code of 1986 and
determined in accordance with standards prescribed by
the Secretary in regulations) to all individuals
described in subsection (a)(10)(A)(i)(VIII).
``(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) Guidance.--Not later than 180 days after the date of enactment
of this section, the Secretary of Health and Human Services, acting
through the Administrator of the Centers for Medicare & Medicaid
Services, shall issue guidance relating to the implementation of the
amendments made by this section.
(c) Implementation Funding.--For the purposes of carrying out the
provisions of, and the amendments made by, this section, there are
appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Administrator of the Centers for Medicare &
Medicaid Services, $75,000,000 for fiscal year 2026, to remain
available until expended.
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) A State may elect, without regard to the requirements of
section 1902(a)(1) (relating to statewideness) and section
1902(a)(10)(B) (relating to comparability), to apply subparagraph
(A), in the case of an individual's home that is not described in
clause (i), by substituting for the amount specified in such
subparagraph, an amount that exceeds such amount, but does not
exceed $1,000,000.''; and
(2) in subparagraph (C)--
(A) by inserting ``(other than the amount specified in
subparagraph (B)(ii) (relating to certain non-agricultural
homes))'' after ``specified in this paragraph''; and
(B) by adding at the end the following new sentence: ``In
the case that application of the preceding sentence would
result in a dollar amount (other than the amount specified in
subparagraph (B)(i) (relating to certain agricultural homes))
exceeding $1,000,000, such amount shall be deemed to be equal
to $1,000,000.''.
(b) Clarification.--Section 1902 of the Social Security Act (42
U.S.C. 1396a) is amended--
(1) in subsection (r)(2), by adding at the end the following
new subparagraph:
``(C) This paragraph shall not be construed as permitting a State
to determine the eligibility of an individual for medical assistance
with respect to nursing facility services or other long-term care
services without application of the limit under section 1917(f)(1).'';
and
(2) in subsection (e)(14)(D)(iv)--
(A) by striking ``Subparagraphs'' and inserting
``(I) In general.--Subparagraphs''; and
(B) by adding at the end the following new subclause:
``(II) Application of home equity interest limit.--
Section 1917(f) shall apply for purposes of determining
the eligibility of an individual for medical assistance
with respect to nursing facility services or other
long-term care services.''.
(c) Effective Date.--The amendments made by subsection (a) shall
apply beginning on January 1, 2028.
SEC. 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) 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), is further amended--
(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) 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.--
Notwithstanding subsection (y) and (z), beginning on October 1, 2026,
the Federal medical assistance percentage for payments for care and
services described in paragraph (2) of subsection 1903(v) furnished to
an alien described in paragraph (1) of such subsection shall not exceed
the Federal medical assistance percentage determined under subsection
(b) for such State.''.
(b) Implementation Funding.--For the purposes of carrying out the
provisions of, and the amendments made by this section, there are
appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Administrator of the Centers for Medicare &
Medicaid Services, $1,000,000 for fiscal year 2026, to remain available
until expended.
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.
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--
``(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) Effective Date.--The amendments made by this section shall
apply to medical assistance, child health assistance, and pregnancy-
related assistance with respect to individuals whose eligibility for
such medical assistance, child health assistance, or pregnancy-related
assistance is based on an application made on or after the first day of
the first quarter that begins after December 31, 2026.
(e) Implementation Funding.--For the purposes of carrying out the
provisions of, and the amendments made by, this section, there are
appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Administrator of the Centers for Medicare &
Medicaid Services, $10,000,000 for fiscal year 2026, to remain
available until expended.
SEC. 71113. 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))).
(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. 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) 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 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) 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) 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.
SEC. 71116. 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) Grandfathering Certain Payments.--In the case of a payment
described in section 438.6(c)(2)(iii) of title 42, Code of Federal
Regulations (or a successor regulation) for which written prior
approval (or a good faith effort to receive such approval, as
determined by the Secretary) was made before May 1, 2025, or a payment
described in such section for a rural hospital (as defined in
subsection (d)(2)) for which written prior approval (or a good faith
effort to receive such approval, as determined by the Secretary) was
made by the date of enactment of this Act, for the rating period
occurring within 180 days of the date of the enactment of this Act, or
a payment so described for such rating period for which a completed
preprint was submitted to the Secretary prior to the date of enactment
of this Act, beginning with the rating period on or after January 1,
2028, the total amount of such payment shall be reduced by 10
percentage points each year until the total payment rate for such
service is equal to the rate for such service specified in subsection
(a).
(c) Treatment of Expansion States.--The revisions described in
subsection (a) shall provide that, with respect to a State that begins
providing the coverage described in paragraph (1) of such subsection on
or after the date of the enactment of this Act, the limitation
described in such paragraph shall apply to such State with respect to a
payment described in section 438.6(c)(2)(iii) of title 42, Code of
Federal Regulations (or a successor regulation) for a service furnished
during a rating period beginning on or after the date of enactment of
this Act.
(d) Definitions.--In this section:
(1) Rating period.--The term ``rating period'' has the meaning
given such term in section 438.2 of title 42, Code of Federal
Regulations (or a successor regulation).
(2) Rural hospital.--The term ``rural hospital'' means the
following:
(A) A subsection (d) hospital (as defined in paragraph
(1)(B) of section 1886(d) of the Social Security Act (42 U.S.C.
1395ww(d))) that--
(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) 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.
``(II) Within a permissible class, the tax rate imposed on any
taxpayer or tax rate group (as so defined) based upon its Medicaid
taxable units (as so defined) is higher than the tax rate imposed
on any taxpayer or tax rate group based upon its non-Medicaid
taxable unit (as defined in paragraph (7)(I)).
``(III) The tax excludes or imposes a lower tax rate on a
taxpayer or tax rate group (as so defined) based on or defined by
any description that results in the same effect as described in
subclause (I) or (II) for a taxpayer or tax rate group.
Characteristics that may indicate such type of exclusion include
the use of terminology to establish a tax rate group--
``(aa) based on payments or expenditures made under the
program under this title without mentioning the term `Medicaid'
(or any similar term) to accomplish the same effect as
described in subclause (I) or (II); or
``(bb) that closely approximates a taxpayer or tax rate
group under the program under this title, to the same effect as
described in subclause (I) or (II).''; and
(2) in paragraph (7), by adding at the end the following new
subparagraphs:
``(H) The term `Medicaid taxable unit' means a unit that is
being taxed within a health care related tax that is applicable to
the program under this title. Such term includes a unit that is
used as the basis for--
``(i) payment under the program under this title (such as
Medicaid bed days);
``(ii) Medicaid revenue;
``(iii) costs associated with the program under this title
(such as Medicaid charges, claims, or expenditures); and
``(iv) other units associated with the program under this
title, as determined by the Secretary.
``(I) The term `non-Medicaid taxable unit' means a unit that is
being taxed within a health care related tax that is not applicable
to the program under this title. Such term includes a unit that is
used as the basis for--
``(i) payment by non-Medicaid payers (such as non-Medicaid
bed days);
``(ii) non-Medicaid revenue;
``(iii) costs that are not associated with the program
under this title (such as non-Medicaid charges, non-Medicaid
claims, or non-Medicaid expenditures); and
``(iv) other units not associated with the program under
this title, as determined by the Secretary.
``(J) The term `tax rate group' means a group of entities
contained within a permissible class of a health care related tax
that are taxed at the same rate.''.
(b) 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) Effective Date.--The amendments made by this section shall take
effect upon the date of enactment of this Act, subject to any
applicable transition period determined appropriate by the Secretary of
Health and Human Services, not to exceed 3 fiscal years.
SEC. 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) In general.--Beginning January 1 2027, the Secretary may
not approve an application for (or renewal or amendment of) an
experimental, pilot, or demonstration project undertaken under
subsection (a) to promote the objectives of title XIX in a State
(in this subsection referred to as a `Medicaid demonstration
project') unless the Chief Actuary for the Centers for Medicare &
Medicaid Services certifies that such project, or, in the case of a
renewal, the duration of the preceding waiver, is not expected to
result in an increase in the amount of Federal expenditures
compared to the amount that such expenditures would otherwise be in
the absence of such project. For purposes of this subsection,
expenditures for the coverage of populations and services that the
State could have otherwise provided through its Medicaid State plan
or other authority under title XIX, including expenditures that
could be made under such authority but for the provision of such
services at a different site of service than authorized under such
State plan or other authority, shall be considered expenditures in
the absence of such a project.
``(2) Treatment of savings.--In the event that expenditures
with respect to a State under a Medicaid demonstration project are,
during an approval period for such project, less than the amount of
such expenditures that would have otherwise been made in the
absence of such project, the Secretary shall specify the
methodology to be used with respect to the subsequent approval
period for such project for purposes of taking the difference
between such expenditures into account.''.
(b) Implementation Funding.--For the purposes of carrying out the
provisions of, and the amendments made by, this section, there are
appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Administrator of the Centers for Medicare &
Medicaid Services, $5,000,000 for each of fiscal years 2026 and 2027,
to remain available until expended.
Subchapter D--Increasing Personal Accountability
SEC. 71119. 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) In general.--Except as provided in paragraph (11),
beginning not later than the first day of the first quarter that
begins after December 31, 2026, or, at the option of the State
under a waiver or demonstration project under section 1115 or the
State plan, such earlier date as the State may specify, subject to
the succeeding provisions of this subsection, a State shall
provide, as a condition of eligibility for medical assistance for
an applicable individual, that such individual is required to
demonstrate community engagement under paragraph (2)--
``(A) in the case of an applicable individual who has filed
an application for medical assistance under a State plan (or a
waiver of such plan) under this title, for 1 or more but not
more than 3 (as specified by the State) consecutive months
immediately preceding the month during which such individual
applies for such medical assistance; and
``(B) in the case of an applicable individual enrolled and
receiving medical assistance under a State plan (or under a
waiver of such plan) under this title, for 1 or more (as
specified by the State) months, whether or not consecutive--
``(i) during the period between such individual's most
recent determination (or redetermination, as applicable) of
eligibility and such individual's next regularly scheduled
redetermination of eligibility (as verified by the State as
part of such regularly scheduled redetermination of
eligibility); or
``(ii) in the case of a State that has elected under
paragraph (4) to conduct more frequent verifications of
compliance with the requirement to demonstrate community
engagement, during the period between the most recent and
next such verification with respect to such individual.
``(2) Community engagement compliance described.--Subject to
paragraph (3), an applicable individual demonstrates community
engagement under this paragraph for a month if such individual
meets 1 or more of the following conditions with respect to such
month, as determined in accordance with criteria established by the
Secretary through regulation:
``(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 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) 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
``(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) Ex parte verifications.--For purposes of verifying that
an applicable individual has met the requirement to demonstrate
community engagement under paragraph (1), or determining such
individual to be deemed to have demonstrated community engagement
under paragraph (3), or that an individual is a specified excluded
individual under paragraph (9)(A)(ii), the State shall, in
accordance with standards established by the Secretary, establish
processes and use reliable information available to the State (such
as payroll data or payments or encounter data under this title for
individuals and data on payments to such individuals for the
provision of services covered under this title) without requiring,
where possible, the applicable individual to submit additional
information.
``(6) Procedure in the case of noncompliance.--
``(A) In general.--If a State is unable to verify that an
applicable individual has met the requirement to demonstrate
community engagement under paragraph (1) (including, if
applicable, by verifying that such individual was deemed to
have demonstrated community engagement under paragraph (3)) the
State shall (in accordance with standards specified by the
Secretary)--
``(i) provide such individual with the notice of
noncompliance described in subparagraph (B);
``(ii)(I) provide such individual with a period of 30
calendar days, beginning on the date on which such notice
of noncompliance is received by the individual, to--
``(aa) make a satisfactory showing to the State of
compliance with such requirement (including, if
applicable, by showing that such individual was or
should be deemed to have demonstrated community
engagement under paragraph (3)); or
``(bb) make a satisfactory showing to the State
that such requirement does not apply to such individual
on the basis that such individual does not meet the
definition of applicable individual under paragraph
(9)(A); and
``(II) if such individual is enrolled under the State
plan (or a waiver of such plan) under this title, continue
to provide such individual with medical assistance during
such 30-calendar-day period; and
``(iii) if no such satisfactory showing is made and the
individual is not a specified excluded individual described
in paragraph (9)(A)(ii), deny such individual's application
for medical assistance under the State plan (or waiver of
such plan) or, as applicable, disenroll such individual
from the plan (or waiver of such plan) not later than the
end of the month following the month in which such 30-
calendar-day period ends, provided that--
``(I) the State first determines whether, with
respect to the individual, there is any other basis for
eligibility for medical assistance under the State plan
(or waiver of such plan) or for another insurance
affordability program; and
``(II) the individual is provided written notice
and granted an opportunity for a fair hearing in
accordance with subsection (a)(3).
``(B) Notice.--The notice of noncompliance provided to an
applicable individual under subparagraph (A)(i) shall include
information (in accordance with standards specified by the
Secretary) on--
``(i) how such individual may make a satisfactory
showing of compliance with such requirement (as described
in subparagraph (A)(ii)) or make a satisfactory showing
that such requirement does not apply to such individual on
the basis that such individual does not meet the definition
of applicable individual under paragraph (9)(A); and
``(ii) how such individual may reapply for medical
assistance under the State plan (or a waiver of such plan)
under this title in the case that such individuals'
application is denied or, as applicable, in the case that
such individual is disenrolled from the plan (or waiver).
``(7) Treatment of noncompliant individuals in relation to
certain other provisions.--
``(A) Certain fmap increases.--A State shall not be treated
as not providing medical assistance to all individuals
described in section 1902(a)(10)(A)(i)(VIII), or as not
expending amounts for all such individuals under the State plan
(or waiver of such plan), solely because such an individual is
determined ineligible for medical assistance under the State
plan (or waiver) on the basis of a failure to meet the
requirement to demonstrate community engagement under paragraph
(1).
``(B) Other provisions.--For purposes of section
36B(c)(2)(B) of the Internal Revenue Code of 1986, an
individual shall be deemed to be eligible for minimum essential
coverage described in section 5000A(f)(1)(A)(ii) of such Code
for a month if such individual would have been eligible for
medical assistance under a State plan (or a waiver of such
plan) under this title but for a failure to meet the
requirement to demonstrate community engagement under paragraph
(1).
``(8) Outreach.--
``(A) In general.--In accordance with standards specified
by the Secretary, beginning not later than the date that
precedes December 31, 2026 (or, if the State elects under
paragraph (1) to specify an earlier date, such earlier date) by
the number of months specified by the State under paragraph
(1)(A) plus 3 months, and periodically thereafter, the State
shall notify applicable individuals enrolled under a State plan
(or waiver) under this title of the requirement to demonstrate
community engagement under this subsection. Such notice shall
include information on--
``(i) how to comply with such requirement, including an
explanation of the exceptions to such requirement under
paragraph (3) and the definition of the term `applicable
individual' under paragraph (9)(A);
``(ii) the consequences of noncompliance with such
requirement; and
``(iii) how to report to the State any change in the
individual's status that could result in--
``(I) the applicability of an exception under
paragraph (3) (or the end of the applicability of such
an exception); or
``(II) the individual qualifying as a specified
excluded individual under paragraph (9)(A)(ii).
``(B) Form of outreach notice.--A notice required under
subparagraph (A) shall be delivered--
``(i) by regular mail (or, if elected by the
individual, in an electronic format); and
``(ii) in 1 or more additional forms, which may include
telephone, text message, an internet website, other
commonly available electronic means, and such other forms
as the Secretary determines appropriate.
``(9) Definitions.--In this subsection:
``(A) Applicable individual.--
``(i) In general.--The term `applicable individual'
means an individual (other than a specified excluded
individual (as defined in clause (ii)))--
``(I) who is eligible to enroll (or is enrolled)
under the State plan under subsection
(a)(10)(A)(i)(VIII); or
``(II) who--
``(aa) is otherwise eligible to enroll (or is
enrolled) under a waiver of such plan that provides
coverage that is equivalent to minimum essential
coverage (as described in section 5000A(f)(1)(A) of
the Internal Revenue Code of 1986 and as determined
in accordance with standards prescribed by the
Secretary in regulations); and
``(bb) has attained the age of 19 and is under
65 years of age, is not pregnant, is not entitled
to, or enrolled for, benefits under part A of title
XVIII, or enrolled for benefits under part B of
title XVIII, and is not otherwise eligible to
enroll under such plan.
``(ii) Specified excluded individual.--For purposes of
clause (i), the term `specified excluded individual' means
an individual, as determined by the State (in accordance
with standards specified by the Secretary)--
``(I) who is described in subsection
(a)(10)(A)(i)(IX);
``(II) who--
``(aa) is an Indian or an Urban Indian (as such
terms are defined in paragraphs (13) and (28) of
section 4 of the Indian Health Care Improvement
Act);
``(bb) is a California Indian described in
section 809(a) of such Act; or
``(cc) has otherwise been determined eligible
as an Indian for the Indian Health Service under
regulations promulgated by the Secretary;
``(III) who is the parent, guardian, 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
``(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) 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) 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
``(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) Prohibiting Conflicts of Interest.--A State shall not use a
Medicaid managed care entity or other specified entity (as such terms
are defined in section 1903(m)(9)(D)), or other contractor to determine
beneficiary compliance under such section unless the contractor has no
direct or indirect financial relationship with any Medicaid managed
care entity or other specified entity that is responsible for providing
or arranging for coverage of medical assistance for individuals
enrolled with the entity pursuant to a contract with such State.
(d) Interim Final Rulemaking.--Not later than June 1, 2026, the
Secretary of Health and Human Services shall promulgate an interim
final rule for purposes of implementing the provisions of, and the
amendments made by, this section. Any action taken to implement the
provisions of, and the amendments made by, this section shall not be
subject to the provisions of section 553 of title 5, United States
Code.
(e) Development of Government Efficiency Grants to States.--
(1) In general.--In order for States to establish systems
necessary to carry out the provisions of, and amendments made by,
this section or other sections of this chapter that pertain to
conducting eligibility determinations or redeterminations, the
Secretary of Health and Human Services shall--
(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) 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--
(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. MODIFYING COST SHARING REQUIREMENTS FOR CERTAIN EXPANSION
INDIVIDUALS UNDER THE MEDICAID PROGRAM.
(a) In General.--Section 1916 of the Social Security Act (42 U.S.C.
1396o) is amended--
(1) in subsection (a), in the matter preceding paragraph (1),
by inserting ``(other than, beginning October 1, 2028, specified
individuals (as defined in subsection (k)(3)))'' after
``individuals''; and
(2) by adding at the end the following new subsection:
``(k) Special Rules for Certain Expansion Individuals.--
``(1) Premiums.--Beginning October 1, 2028, the State plan
shall provide that in the case of a specified individual (as
defined in paragraph (3)) who is eligible under the plan, no
enrollment fee, premium, or similar charge will be imposed under
the plan.
``(2) Required imposition of cost sharing.--
``(A) In general.--Subject to subparagraph (B) and
subsection (j), in the case of a specified individual, the
State plan shall, beginning October 1, 2028, provide for the
imposition of such deductions, cost sharing, or similar charges
determined appropriate by the State (in an amount greater than
$0) with respect to certain care, items, or services furnished
to such an individual, as determined by the State.
``(B) Limitations.--
``(i) Exclusion of certain services.--In no case may a
deduction, cost sharing, or similar charge be imposed under
the State plan with respect to care, items, or services
described in any of subparagraphs (B) through (J) of
subsection (a)(2), or any primary care services, mental
health care services, substance use disorder services, or
services provided by a Federally qualified health center
(as defined in 1905(l)(2)), certified community behavioral
health clinic (as defined in section 1905(jj)(2)), or rural
health clinic (as defined in 1905(l)(1)), furnished to a
specified individual.
``(ii) Item and service limitation.--
``(I) In general.--Except as provided in subclause
(II), in no case may a deduction, cost sharing, or
similar charge imposed under the State plan with
respect to care or an item or service furnished to a
specified individual exceed $35.
``(II) Special rules for prescription drugs.--In no
case may a deduction, cost sharing, or similar charge
imposed under the State plan with respect to a
prescription drug furnished to a specified individual
exceed the limit that would be applicable under
paragraph (2)(A)(i) or (2)(B) of section 1916A(c) with
respect to such drug and individual if such drug so
furnished were subject to cost sharing under such
section.
``(iii) Maximum limit on cost sharing.--The total
aggregate amount of deductions, cost sharing, or similar
charges imposed under the State plan for all individuals in
the family may not exceed 5 percent of the family income of
the family involved, as applied on a quarterly or monthly
basis (as specified by the State).
``(C) Cases of nonpayment.--Notwithstanding subsection (e),
a State may permit a provider participating under the State
plan to require, as a condition for the provision of care,
items, or services to a specified individual entitled to
medical assistance under this title for such care, items, or
services, the payment of any deductions, cost sharing, or
similar charges authorized to be imposed with respect to such
care, items, or services. Nothing in this subparagraph shall be
construed as preventing a provider from reducing or waiving the
application of such deductions, cost sharing, or similar
charges on a case-by-case basis.
``(3) Specified individual defined.--For purposes of this
subsection, the term `specified individual' means an individual who
has a family income (as determined in accordance with section
1902(e)(14)) that exceeds the poverty line (as defined in section
2110(c)(5)) applicable to a family of the size involved and--
``(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''.
(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. 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) Expanding Coverage for Home or Community-based Services.--
``(A) In general.--Beginning July 1, 2028, notwithstanding
paragraph (1), the Secretary may approve a waiver that is
standalone from any other waiver approved under this subsection to
include as medical assistance under the State plan of such State
payment for part or all of the cost of home or community-based
services (other than room and board (as described in paragraph
(1))) approved by the Secretary which are provided pursuant to a
written plan of care to individuals described in subparagraph
(B)(iii). A waiver approved under this paragraph shall be for an
initial term of 3 years and, upon the request of the State, shall
be extended for additional 5-year periods unless the Secretary
determines that for the previous waiver period the requirements
specified under this subsection (excluding those excepted under
subparagraph (B)) have not been met.
``(B) State requirements.--In addition to the requirements
specified under this subsection (except for the requirements
described in subparagraphs (C) and (D) of paragraph (2) and any
other requirement specified under this subsection that the
Secretary determines to be inapplicable in the context of a waiver
that does not require individuals to have a determination described
in paragraph (1)), a State shall meet the following requirements as
a condition of waiver approval:
``(i) As of the date that such State requests a waiver
under this subsection to provide home or community-based
services to individuals described in clause (iii), all other
waivers (if any) granted under this subsection to such State
meet the requirements of this subsection.
``(ii) The State demonstrates to the Secretary that
approval of a waiver under this subsection with respect to
individuals described in clause (iii) will not result in a
material increase of the average amount of time that
individuals with respect to whom a determination described in
paragraph (1) has been made will need to wait to receive home
or community-based services under any other waiver granted
under this subsection, as determined by the Secretary.
``(iii) The State establishes needs-based criteria, subject
to the approval of the Secretary, regarding who will be
eligible for home or community-based services under a waiver
approved under this paragraph without requiring such
individuals to have a determination described in paragraph (1),
and specifies the home or community-based services such
individuals so eligible will receive.
``(iv) The State establishes needs-based criteria for
determining whether an individual described in clause (iii)
requires the level of care provided in a hospital, nursing
facility, or an intermediate care facility for individuals with
developmental disabilities under the State plan or under any
waiver of such plan that are more stringent than the needs-
based criteria established under clause (iii) for determining
eligibility for home or community-based services.
``(v) The State attests that the State's average per capita
expenditure for medical assistance under the State plan (or
waiver of such plan) provided with respect to such individuals
enrolled in a waiver under this paragraph will not exceed the
State's average per capita expenditure for medical assistance
for individuals receiving institutional care under the State
plan (or waiver of such plan) for the duration that the waiver
under this paragraph is in effect.
``(vi) The State provides to the Secretary data (in such
form and manner as the Secretary may specify) regarding the
number of individuals described in clause (iii) with respect to
a State seeking approval of a waiver under this subsection, to
whom the State will make such services available under such
waiver.
``(vii) The State agrees to provide to the Secretary, not
less frequently than annually, data for purposes of paragraph
(2)(E) (in such form and manner as the Secretary may specify)
regarding, with respect to each preceding year in which a
waiver under this subsection to provide home or community-based
services to individuals described in clause (iii) was in
effect--
``(I) the cost (as such term is defined by the
Secretary) of such services furnished to individuals
described in clause (iii), broken down by type of service;
``(II) with respect to each type of home or community-
based service provided under the waiver, the length of time
that such individuals have received such service;
``(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.
``(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. 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.--
``(1) In general.--In the case of an individual who is entitled
to, or enrolled for, benefits under this title as of the date of
the enactment of this section, subsection (a) shall apply beginning
on the date that is 18 months after such date of enactment.
``(2) Review by commissioner of social security.--
``(A) In general.--Not later than 1 year after the date of
the enactment of this section, the Commissioner of Social
Security shall complete a review of individuals entitled to, or
enrolled for, benefits under this title as of such date of
enactment for purposes of identifying individuals not described
in any of paragraphs (1) through (4) of subsection (a).
``(B) Notice.--The Commissioner of Social Security shall
notify each individual identified under the review conducted
under subparagraph (A) that such individual's entitlement to,
or enrollment for, benefits under this title will be terminated
as of the date that is 18 months after the date of the
enactment of this section. Such notification shall be made as
soon as practicable after such identification and in a manner
designed to ensure such individual's comprehension of such
notification.''.
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--
(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) Treatment of former orphan drugs.--In the case of a drug
or biological product that, as of the date of the approval or
licensure of such drug or biological product, is a drug or
biological product described in paragraph (3)(A), paragraph
(1)(A)(ii) or (1)(B)(ii) (as applicable) shall apply as if the
reference to `the date of such approval' or `the date of such
licensure', respectively, were instead a reference to `the first
day after the date of such approval for which such drug is not a
drug described in paragraph (3)(A)' or `the first day after the
date of such licensure for which such biological product is not a
biological product described in paragraph (3)(A)', respectively.''.
(b) Application.--The amendments made by subsection (a) shall apply
with respect to initial price applicability years (as defined in
section 1191(b) of the Social Security Act (42 U.S.C. 1320f(b)))
beginning on or after January 1, 2028.
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
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) 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) 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) 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).
(b) 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 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
`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.--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) 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).
(b) Conforming Amendments.--
(1) Section 36B(f)(2) is amended by striking ``advance
payments.--'' and all that follows through ``If the advance
payments'' and inserting the following: ``advance payments.--If the
advance payments''.
(2) Section 35(g)(12)(B)(ii) is amended by striking ``then
section 36B(f)(2)(B) shall be applied by substituting the amount
determined under clause (i) for the amount determined under section
36B(f)(2)(A)'' and inserting ``then the amount determined under
clause (i) shall be substituted for the amount determined under
section 36B(f)(2)''.
(c) Effective Date.--The 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) 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) 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) In general.--The term `direct primary care
service arrangement' means, with respect to any
individual, an arrangement under which such individual
is provided medical care (as defined in section 213(d))
consisting solely of primary care services provided by
primary care practitioners (as defined in section
1833(x)(2)(A) of the Social Security Act, determined
without regard to clause (ii) thereof), if the sole
compensation for such care is a fixed periodic fee.
``(II) Limitation.--With respect to any individual
for any month, such term shall not include any
arrangement if the aggregate fees for all direct
primary care service arrangements (determined without
regard to this subclause) with respect to such
individual for such month exceed $150 (twice such
dollar amount in the case of an individual with any
direct primary care service arrangement (as so
determined) that covers more than one individual).
``(iii) Certain services specifically excluded from
treatment as primary care services.--For purposes of this
subparagraph, the term `primary care services' shall not
include--
``(I) procedures that require the use of general
anesthesia,
``(II) prescription drugs (other than vaccines),
and
``(III) laboratory services not typically
administered in an ambulatory primary care setting.
The Secretary, after consultation with the Secretary of
Health and Human Services, shall issue regulations or other
guidance regarding the application of this clause.''.
(b) Direct Primary Care Service Arrangement Fees Treated as Medical
Expenses.--Section 223(d)(2)(C) is amended by striking ``or'' at the
end of clause (iii), by striking the period at the end of clause (iv)
and inserting ``, or'', and by adding at the end the following new
clause:
``(v) any direct primary care service arrangement.''.
(c) Inflation Adjustment.--Section 223(g)(1) is amended--
(1) by 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) Effective Date.--The amendments made by this section shall
apply to months beginning after December 31, 2025.
CHAPTER 4--PROTECTING RURAL HOSPITALS AND PROVIDERS
SEC. 71401. 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) In general.--Any amounts appropriated under
subparagraph (A) that are unexpended or unobligated as of
October 1, 2032, shall be returned to the Treasury of the
United States.
``(ii) Redistribution of unexpended or unobligated
funds.--In carrying out subparagraph (A), the Administrator
shall, not later than March 31, 2028, and annually
thereafter through March 31, 2032, determine the amount of
funds, if any, that are available under such subparagraph
for a previous fiscal year, are unexpended or unobligated
with respect to such fiscal year, and will not be available
to a State in the current fiscal year, pursuant to clause
(iii).
``(iii) Availability of funds.--
``(I) In general.--Amounts allotted to a State
under this subsection for a year shall be available for
expenditure by the State through the end of the fiscal
year following the fiscal year in which such amounts
are allotted.
``(II) Availability of amounts redistributed.--
Amounts redistributed to a State under clause (ii) with
respect to a fiscal year shall be available for
expenditure by the State through the end of the fiscal
year following the fiscal year in which such amounts
are redistributed (except in the case of amounts
redistributed in fiscal year 2032 which shall only be
available for expenditure through September 30, 2032).
``(iv) Misuse of funds.--If the Administrator
determines that a State is not using amounts allotted or
redistributed to the State under this subsection in a
manner consistent with the description provided by the
State in its application approved under paragraph (2), the
Administrator may withhold payments to, or reduce payments
to, or recover previous payments from, the State under this
subsection as the Administrator deems appropriate, and any
amounts so withheld, or that remain after any such
reduction, or so recovered, shall be returned to the
Treasury of the United States.
``(2) Application.--
``(A) In general.--To be eligible for an allotment under
this subsection, a State shall submit to the Administrator
during an application submission period to be specified by the
Administrator (but that ends not later than December 31, 2025)
an application in such form and manner as the Administrator may
specify, that includes--
``(i) a detailed rural health transformation plan--
``(I) to improve access to hospitals, other health
care providers, and health care items and services
furnished to rural residents of the State;
``(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) 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.
``(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) 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) 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);
``(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) a plan for the State to use its allotment to
carry out 3 or more of the activities described in
paragraph (6); and
``(ii) annual reports on the use of allotments,
including such additional information as the Administrator
determines appropriate.
``(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) 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--
(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) 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) in section 2106(a)(1), by inserting ``subsection (a) or (g)
of'' before ``section 2105''.
(c) Implementation.--The Administrator of the Centers for Medicare
& Medicaid Services shall implement this section, including the
amendments made by this section, by program instruction or other forms
of program guidance.
(d) Implementation Funding.--For the purposes of carrying out the
provisions of, and the amendments made by, this section, there are
appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Administrator of the Centers for Medicare &
Medicaid Services, $200,000,000 for fiscal year 2025, to remain
available until expended.
Subtitle C--Increase in Debt Limit
SEC. 72001. 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. 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) 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 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) Effective Date and Application.--The amendments made by
subsection (a) shall take effect on July 1, 2026, and shall apply with
respect to award year 2026-2027 and each subsequent award year, as
determined under the Higher Education Act of 1965 (20 U.S.C. 1001 et
seq.).
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.
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) 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.
``(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 be $65,000, without regard to any
amounts repaid, forgiven, canceled, or otherwise discharged on
any such loan.
``(6) Lifetime maximum aggregate amount for all students.--
Subject to paragraph (8) and notwithstanding any provision of this
part or part B, beginning on July 1, 2026, the maximum aggregate
amount of loans made, insured, or guaranteed under this title that
a student may borrow (other than a Federal Direct PLUS loan, or
loan under section 428B, made to the student as a parent borrower
on behalf of a dependent student) shall be $257,500, without regard
to any amounts repaid, forgiven, canceled, or otherwise discharged
on any such loan.
``(7) Additional rules regarding annual loan limits.--
``(A) Less than full-time enrollment.--Notwithstanding any
provision of this part or part B, in any case in which a
student is enrolled in a program of study of an institution of
higher education on less than a full-time basis during any
academic year, the amount of a loan that student may borrow for
an academic year or its equivalent shall be reduced in direct
proportion to the degree to which that student is not so
enrolled on a full-time basis, rounded to the nearest whole
percentage point, as provided in a schedule of reductions
published by the Secretary computed for purposes of this
subparagraph.
``(B) Institutionally determined limits.--Notwithstanding
the annual loan limits established under this section and, for
undergraduate students, under this part and part B, beginning
on July 1, 2026, an institution of higher education (at the
discretion of a financial aid administrator at the institution)
may limit the total amount of loans made under this part for a
program of study for an academic year that a student may
borrow, and that a parent may borrow on behalf of such student,
as long as any such limit is applied consistently to all
students enrolled in such program of study.
``(8) Interim exception for certain students.--
``(A) Application of prior limits.--Paragraphs (3)(C), (4),
(5), and (6) shall not apply, and paragraph (3)(A)(ii) shall
apply as such paragraph was in effect for periods of
instruction ending before June 30, 2026, during the expected
time to credential described in subparagraph (B), with respect
to an individual who, as of June 30, 2026--
``(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
``(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) Transition to Income-based Repayment Plans.--
(1) Selection.--The Secretary of Education shall take such
steps as may be necessary to ensure that before July 1, 2028, each
borrower who has one or more loans that are in a repayment status
in accordance with, or an administrative forbearance associated
with, an income contingent repayment plan authorized under section
455(e) of the Higher Education Act of 1965 (referred to in this
subsection as ``covered income contingent loans'') selects one of
the following income-based repayment plans that is otherwise
applicable, and for which that borrower is otherwise eligible, for
the repayment of the covered income contingent loans of the
borrower:
(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) 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--
(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) 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.--Paragraphs (1) through (4) of this subsection shall only
apply to loans made under this part before July 1, 2026.
``(B) Prohibitions.--The Secretary may not, for any loan
made under this part on or after July 1, 2026--
``(i) authorize a borrower of such a loan to repay such
loan pursuant to a repayment plan that is not described in
paragraph (7)(A); or
``(ii) carry out or modify a repayment plan that is not
described in such paragraph.
``(7) Repayment plans for loans made on or after july 1,
2026.--
``(A) Design and selection.--Beginning on July 1, 2026, the
Secretary shall offer a borrower of a loan made under this part
on or after such date (including such a borrower who also has a
loan made under this part before such date) two plans for
repayment of the borrower's loans under this part, including
principal and interest on such loans. The borrower shall be
entitled to accelerate, without penalty, repayment on such
loans. The borrower may choose--
``(i) a standard repayment plan--
``(I) with a fixed monthly repayment amount paid
over a fixed period of time equal to the applicable
period determined under subclause (II); and
``(II) with the applicable period of time for
repayment determined based on the total outstanding
principal of all loans of the borrower made under this
part before, on, or after July 1, 2026, at the time the
borrower is entering repayment under such plan, as
follows--
``(aa) for a borrower with total outstanding
principal of less than $25,000, a period of 10
years;
``(bb) for a borrower with total outstanding
principal of not less than $25,000 and less than
$50,000, a period of 15 years;
``(cc) for a borrower with total outstanding
principal of not less than $50,000 and less than
$100,000, a period of 20 years; and
``(dd) for a borrower with total outstanding
principal of $100,000 or more, a period of 25
years; or
``(ii) the income-based Repayment Assistance Plan under
subsection (q).
``(B) Selection by secretary.--If a borrower of a loan made
under this part on or after July 1, 2026, does not select a
repayment plan described in subparagraph (A), the Secretary
shall provide the borrower with the standard repayment plan
described in subparagraph (A)(i).
``(C) Selection 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.--
``(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'';
(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) 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) In general.--Notwithstanding any other provision of this
Act, beginning on July 1, 2026, the Secretary shall carry out an
income-based repayment plan (to be known as the `Repayment
Assistance Plan'), that shall have the following terms and
conditions:
``(A) The total monthly repayment amount owed by a borrower
for all of the loans of the borrower that are repaid pursuant
to the Repayment Assistance Plan shall be equal to the
applicable monthly payment of a borrower calculated under
paragraph (4)(B), except that the borrower may not be precluded
from repaying an amount that exceeds such amount for any month.
``(B) The Secretary shall apply the borrower's applicable
monthly payment under this paragraph first toward interest due
on each such loan, next toward any fees due on each loan, and
then toward the principal of each loan.
``(C) Any principal due and not paid under subparagraph (B)
or paragraph (2)(B) shall be deferred.
``(D) A borrower who is not in a period of deferment or
forbearance shall make an applicable monthly payment for each
month until the earlier of--
``(i) the date on which the outstanding balance of
principal and interest due on all of the loans of the
borrower that are repaid pursuant to the Repayment
Assistance Plan is $0; or
``(ii) the date on which the borrower has made 360
qualifying monthly payments.
``(E) The Secretary shall cancel any outstanding balance of
principal and interest due on a loan made under this part to a
borrower--
``(i) who, for any period of time, participated in the
Repayment Assistance Plan under this subsection;
``(ii) whose most recent payment for such loan prior to
the loan cancellation under this subparagraph was made
under such Repayment Assistance Plan; and
``(iii) who has made 360 qualifying monthly payments on
such loan.
``(F) For the purposes of this subsection, the term
`qualifying monthly payment' means any of the following:
``(i) An on-time applicable monthly payment under this
subsection.
``(ii) An on-time monthly payment under the standard
repayment plan under subsection (d)(7)(A)(i) of not less
than the monthly payment required under such plan.
``(iii) A monthly payment under any repayment plan
(excluding the Repayment Assistance Plan under this
subsection) of not less than the monthly payment that would
be required under a standard repayment plan under section
455(d)(1)(A) with a repayment period of 10 years.
``(iv) A monthly payment under section 493C of not less
than the monthly payment required under such section,
including a monthly payment equal to the minimum payment
amount permitted under such section.
``(v) A monthly payment made before July 1, 2028, under
an income contingent repayment plan carried out under
section 455(d)(1)(D) (or under an alternative repayment
plan in lieu of repayment under such an income contingent
repayment plan, if placed in such an alternative repayment
plan by the Secretary) of not less than the monthly payment
required under such a plan, including a monthly payment
equal to the minimum payment amount permitted under such a
plan.
``(vi) A month when the borrower did not make a payment
because the borrower was in deferment under subsection
(f)(2)(B) or due to an economic hardship described in
subsection (f)(2)(D).
``(vii) A month that ended before the date of enactment
of this subsection when the borrower did not make a payment
because the borrower was in a period of deferment or
forbearance described in section 685.209(k)(4)(iv) of title
34, Code of Federal Regulations (as in effect on the date
of enactment of this subsection).
``(G) The procedures established by the Secretary under
section 493C(c) shall apply for annually determining the
borrower's eligibility for the Repayment Assistance Plan,
including verification of a borrower's annual income and the
annual amount due on the total amount of loans eligible to be
repaid under this subsection, and such other procedures as are
necessary to effectively implement income-based repayment under
this subsection. With respect to carrying out section 494(a)(2)
for the Repayment Assistance Plan, an individual may elect to
opt out of the disclosures required under section
494(a)(2)(A)(ii) in accordance with the procedures established
under section 493C(c)(2).
``(2) Balance assistance for distressed borrowers.--
``(A) Interest subsidy.--With respect to a borrower of a
loan made under this part, for each month for which such a
borrower makes an on-time applicable monthly payment required
under paragraph (1)(A) and such monthly payment is insufficient
to pay the total amount of interest that accrues for the month
on all loans of the borrower repaid pursuant to the Repayment
Assistance Plan under this subsection, the amount of interest
accrued and not paid for the month shall not be charged to the
borrower.
``(B) Matching principal payment.--With respect to a
borrower of a loan made under this part and not in a period of
deferment or forbearance, for each month for which a borrower
makes an on-time applicable monthly payment required under
paragraph (1)(A) and such monthly payment reduces the total
outstanding principal balance of all loans of the borrower
repaid pursuant to the Repayment Assistance Plan under this
subsection by less than $50, the Secretary shall reduce such
total outstanding principal balance of the borrower by an
amount that is equal to--
``(i) the amount that is the lesser of--
``(I) $50; or
``(II) the total amount paid by the borrower for
such month pursuant to paragraph (1)(A); minus
``(ii) the total amount paid by the borrower for such
month pursuant to paragraph (1)(A) that is applied to such
total outstanding principal balance.
``(3) Additional documents.--A borrower who chooses, or is
required, to repay a loan under this subsection, and for whom
adjusted gross income is unavailable or does not reasonably reflect
the borrower's current income, shall provide to the Secretary other
documentation of income satisfactory to the Secretary, which
documentation the Secretary may use to determine repayment under
this subsection.
``(4) Definitions.--In this subsection:
``(A) Adjusted gross income.--The term `adjusted gross
income', when used with respect to a borrower, means the
adjusted gross income (as such term is defined in section 62 of
the Internal Revenue Code of 1986) of the borrower (and the
borrower's spouse, as applicable) for the most recent taxable
year, except that, in the case of a married borrower who files
a separate Federal income tax return, the term does not include
the adjusted gross income of the borrower's spouse.
``(B) Applicable monthly payment.--
``(i) In general.--Except as provided in clause (ii),
(iii), or (vi), the term `applicable monthly payment'
means, when used with respect to a borrower, the amount
equal to--
``(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
``(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) the sum of the monthly payment amounts the
borrower would have paid for each of the borrower's
loans made under this part under a standard repayment
plan with a fixed monthly repayment amount, paid over a
period of 10 years, based on the outstanding principal
due on such loan when such loan entered repayment; and
``(II) determined pursuant to this clause until the
date on which the borrower provides such information to
the Secretary.''.
(e) Federal Consolidation Loans.--Section 455(g) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(g)) is amended by adding at the
end the following new paragraph:
``(3) Consolidation loans made on or after july 1, 2026.--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) 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 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) 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) 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) Eligibility Determinations; Automatic Recertification.--
``(1) In general.--The Secretary shall establish procedures for
annually determining, in accordance with paragraph (2), the
borrower's eligibility for income-based repayment, including the
verification of a borrower's annual income and the annual amount
due on the total amount of loans made, insured, or guaranteed under
part B or D (other than an excepted PLUS loan or excepted
consolidation loan), and such other procedures as are necessary to
effectively implement income-based repayment under this section.
The Secretary shall consider, but is not limited to, the procedures
established in accordance with section 455(e)(1) (as in effect on
the day before the date of repeal of subsection (e) of section 455)
or in connection with income sensitive repayment schedules under
section 428(b)(9)(A)(iii) or 428C(b)(1)(E).
``(2) Automatic recertification.--
``(A) In general.--The Secretary shall establish and
implement, with respect to any borrower enrolled in an income-
based repayment program under this section or under section
455(q), procedures to--
``(i) use return information disclosed under section
6103(l)(13) of the Internal Revenue Code of 1986, pursuant
to approval provided under section 494, to determine the
repayment obligation of the borrower without further action
by the borrower;
``(ii) allow the borrower (or the spouse of the
borrower), at any time, to opt out of disclosure under such
section 6103(l)(13) and instead provide such information as
the Secretary may require to determine the repayment
obligation of the borrower (or withdraw from the repayment
plan under this section or under section 455(q), as the
case may be); and
``(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) 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) Effective date and application.--The amendments made by
this subsection shall take effect on the date of enactment of this
title, and shall apply with respect to any borrower who is in
repayment before, on, or after the date of enactment of this title.
(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) 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) 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) Effective date.--The amendments made by this subsection
shall take effect beginning on July 1, 2027, and shall apply with
respect to any loan made, insured, or guaranteed under title IV of
the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
(b) Minimum Monthly Payment Amount.--Section 428F(a)(1)(B) of the
Higher Education Act of 1965 (20 U.S.C. 1078-6(a)(1)(B)) is amended by
adding at the end the following: ``With respect to a borrower who has 1
or more loans made under part D on or after July 1, 2027 that are
described in subparagraph (A), the total monthly payment of the
borrower for all such loans shall not be less than $10.''.
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--
(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) 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
(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) 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) Effective date.--The amendment made by paragraph (1) shall
take effect on July 1, 2026.
SEC. 83002. WORKFORCE PELL GRANTS.
(a) In General.--Section 401 of the Higher Education Act of 1965
(20 U.S.C. 1070a) is amended by adding at the end the following:
``(k) Workforce Pell Grant Program.--
``(1) In general.--For the award year beginning on July 1,
2026, and each subsequent award year, the Secretary shall award
grants (to be known as `Workforce Pell Grants') to eligible
students under paragraph (2) in accordance with this subsection.
``(2) Eligible students.--To be eligible to receive a Workforce
Pell Grant under this subsection for any period of enrollment, a
student shall meet the eligibility requirements for a Federal Pell
Grant under this section, except that the student--
``(A) shall be enrolled, or accepted for enrollment, in an
eligible program under section 481(b)(3) (hereinafter referred
to as an `eligible workforce program'); and
``(B) may not--
``(i) be enrolled, or accepted for enrollment, in a
program of study that leads to a graduate credential; or
``(ii) have attained such a credential.
``(3) Terms and conditions of awards.--The Secretary shall
award Workforce Pell Grants under this subsection in the same
manner and with the same terms and conditions as the Secretary
awards Federal Pell Grants under this section, except that--
``(A) each use of the term `eligible program' (except in
subsection (b)(9)(A)) shall be substituted by `eligible
workforce program under section 481(b)(3)';
``(B) the provisions of subsection (d)(2) shall not be
applicable to eligible workforce programs; and
``(C) a student who is eligible for a grant equal to less
than the amount of the minimum Federal Pell Grant because the
eligible workforce program in which the student is enrolled or
accepted for enrollment is less than an academic year (in hours
of instruction or weeks of duration) may still be eligible for
a Workforce Pell Grant in an amount that is prorated based on
the length of the program.
``(4) Prevention of double benefits.--No eligible student
described in paragraph (2) may concurrently receive a grant under
both this subsection and--
``(A) subsection (b); or
``(B) subsection (c).
``(5) Duration limit.--Any period of study covered by a
Workforce Pell Grant awarded under this subsection shall be
included in determining a student's duration limit under subsection
(d)(5).''.
(b) Program Eligibility for Workforce Pell Grants.--Section 481(b)
of the Higher Education Act of 1965 (20 U.S.C. 1088(b)) is amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs (4)
and (5), respectively; and
(2) by inserting after paragraph (2) the following:
``(3)(A) A program is an eligible program for purposes of the
Workforce Pell Grant program under section 401(k) only if--
``(i) it is a program of at least 150 clock hours of
instruction, but less than 600 clock hours of instruction, or
an equivalent number of credit hours, offered by an eligible
institution during a minimum of 8 weeks, but less than 15
weeks;
``(ii) it is not offered as a correspondence course, as
defined in 600.2 of title 34, Code of Federal Regulations (as
in effect on July 1, 2021);
``(iii) the Governor of a State, after consultation with
the State board, determines that the program--
``(I) provides an education aligned with the
requirements of high-skill, high-wage (as identified by the
State pursuant to section 122 of the Carl D. Perkins Career
and Technical Education Act (20 U.S.C. 2342)), or in-demand
industry sectors or occupations;
``(II) meets the hiring requirements of potential
employers in the sectors or occupations described in
subclause (I);
``(III) either--
``(aa) leads to a recognized postsecondary
credential that is stackable and portable across more
than one employer; or
``(bb) with respect to students enrolled in the
program--
``(AA) prepares such students for employment in
an occupation for which there is only one
recognized postsecondary credential; and
``(BB) provides such students with such a
credential upon completion of such program; and
``(IV) prepares students to pursue 1 or more
certificate or degree programs at 1 or more institutions of
higher education (which may include the eligible
institution providing the program), including by ensuring--
``(aa) that a student, upon completion of the
program and enrollment in such a related certificate or
degree program, will receive academic credit for the
Workforce Pell program that will be accepted toward
meeting such certificate or degree program
requirements; and
``(bb) the acceptability of such credit toward
meeting such certificate or degree program
requirements; and
``(iv) after the Governor of such State makes the
determination that the program meets the requirements under
clause (iii), the Secretary determines that--
``(I) the program has been offered by the eligible
institution for not less than 1 year prior to the date on
which the Secretary makes a determination under this
clause;
``(II) for each award year, the program has a verified
completion rate of at least 70 percent, within 150 percent
of the normal time for completion;
``(III) for each award year, the program has a verified
job placement rate of at least 70 percent, measured 180
days after completion; and
``(IV) for each award year, the 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) 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) Effective Date; Applicability.--The amendments made by this
section shall take effect on July 1, 2026, and shall apply with respect
to award year 2026-2027 and each succeeding award year.
SEC. 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) 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) Ineligibility for Certain Programs Based on Low Earning
Outcomes.--
``(1) In general.--Notwithstanding section 481(b), an
institution of higher education subject to this subsection shall
not use funds under this part for student enrollment in an
educational program offered by the institution that is described in
paragraph (2).
``(2) Low-earning outcome programs described.--An educational
program at an institution is described in this paragraph if the
program awards an undergraduate degree, graduate or professional
degree, or graduate certificate, for which the median earnings (as
determined by the Secretary) of the programmatic cohort of students
who received funds under this title for enrollment in such program,
who completed such program during the academic year that is 4 years
before the year of the determination, who are not enrolled in any
institution of higher education, and who are working, are, for not
less than 2 of the 3 years immediately preceding the date of the
determination, less than the median earnings of a working adult
described in paragraph (3) for the corresponding year.
``(3) Calculation of median earnings.--
``(A) Working adult.--For purposes of applying paragraph
(2) to an educational program at an institution, a working
adult described in this paragraph is a working adult who, for
the corresponding year--
``(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) 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--
``(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) 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) 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. 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 effect
on July 1, 2020, are restored and revived as such regulations were in
effect on such date.
SEC. 85002. 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. 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) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Office of Refugee Resettlement for fiscal
year 2025, out of any money in the Treasury not otherwise appropriated,
$300,000,000, to remain available until September 30, 2028, for the
purposes described in subsection (b).
(b) Use of Funds.--The funds made available under subsection (a)
may only be used for the Office of Refugee Resettlement to support
costs associated with--
(1) background checks on potential sponsors, which shall
include--
(A) the name of the potential sponsor and of all adult
residents of the potential sponsor's household;
(B) the social security number or tax payer identification
number of the potential sponsor and of all adult residents of
the potential sponsor's household;
(C) the date of birth of the potential sponsor and of all
adult residents of the potential sponsor's household;
(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) 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--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:
(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) 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 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--
(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) 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) Eligibility.--The Secretary of Homeland Security may
provide grants from the fund established by paragraph (1) to State
agencies and units of local governments for expenditures made for
completed, ongoing, or new activities, in accordance with law, that
occurred on or after January 20, 2021.
(5) Application.--Each State desiring to apply for a grant
under this subsection shall submit an application to the Secretary
containing such information in support of the application as the
Secretary may require. The Secretary shall require that each State
include in its application the purposes for which the State seeks
the funds and a description of how the State plans to allocate the
funds. The Secretary shall begin to accept applications not later
than 90 days after the date of the enactment of this Act.
(6) Terms and conditions.--Nothing in this subsection shall
authorize any State or local government to exercise immigration or
border security authorities reserved exclusively to the Federal
Government under the Immigration and Nationality Act (8 U.S.C. 1101
et seq.) or the Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.). The Federal Emergency Management Agency may use not more
than 1 percent of the funds made available under this subsection
for the purpose of administering grants provided for in this
section.
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) 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) 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. 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.
Subtitle B--Governmental Affairs Provisions
SEC. 90101. FEHB IMPROVEMENTS.
(a) 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) 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) 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) Disenrollment or Removal.--Not later than 180 days after the
date of enactment of this Act, the Director shall develop a process by
which any individual enrolled in, or covered under, a health benefits
plan under the Program who is not eligible to be so enrolled or covered
shall be disenrolled or removed from enrollment in, or coverage under,
that health benefits plan.
(g) Earned Benefits and Health Care Administrative Services
Associated Oversight and Audit Funding.--Section 8909 of title 5,
United States Code, is amended--
(1) in subsection (a)(2), by inserting before the period at the
end the following: ``, except that the amounts required to be set
aside under subsection (b)(2) shall not be subject to the
limitations that may be specified annually by Congress''; and
(2) in subsection (b)--
(A) by redesignating paragraph (2) as paragraph (3); and
(B) by inserting after paragraph (1) the following:
``(2) 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) 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.
TITLE X--COMMITTEE ON THE JUDICIARY
Subtitle A--Immigration and Law Enforcement Matters
PART I--IMMIGRATION FEES
SEC. 100001. 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. 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--
(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. 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) 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
(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) 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 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. 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;
(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) 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) 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. 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 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) 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.''.
SEC. 100007. 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) 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) 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. 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--
(A) $24; or
(B) 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. 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) 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 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. 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) 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. 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 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. 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) 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 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. FEES RELATING TO APPLICATIONS FOR ADJUSTMENT OF STATUS.
(a) Fee for Filing an Application to Adjust Status to That of a
Lawful Permanent Resident.--
(1) In general.--In addition to any other fees authorized by
law, the Attorney General shall require the payment of a fee, equal
to the amount specified in paragraph (2), by any alien who files an
application with an immigration court to adjust the alien's status
to that of a lawful permanent resident, or whose application to
adjust his or her status to that of a lawful permanent resident is
adjudicated in immigration court. Such fee shall be paid at the
time such application is filed or before such application is
adjudicated by the immigration court.
(2) Amount specified.--
(A) Initial amount.--For fiscal year 2025, the amount
specified in this paragraph shall be the greater of--
(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 (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) 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--
(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) 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
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--
(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--
(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) 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) 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
(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) In general.--In addition to any other fees authorized by
law, the Attorney General shall require the payment of a fee, equal
to the amount specified in paragraph (2), by any alien at the time
such alien files an application with an immigration court an
application for cancellation of removal for an alien who is a
lawful permanent resident.
(2) Amount specified.--
(A) Initial amount.--For fiscal year 2025, the amount
specified in this paragraph shall be the greater of--
(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 (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. 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 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) 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.
SEC. 100016. FEE FOR ALIENS ORDERED REMOVED IN ABSENTIA.
(a) In General.--As partial reimbursement for the cost of arresting
an alien described in this section, the Secretary of Homeland Security,
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) 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. 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.--
(1) Initial amount.--For fiscal year 2025, the amount specified
in this section shall be the greater of--
(A) $5,000; or
(B) 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--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:
(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
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.
(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) 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) 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.
(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.--
(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) 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) 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) Eligibility.--To be eligible to receive funds made
available under this subsection, a State or local government
shall be in full compliance, as determined by the Attorney
General, with section 642 of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1373).
(6) Fiscally responsible lawsuit settlements.--Hiring
additional attorneys and necessary support staff for the purpose of
maximizing lawsuit settlements that require the payment of fines
and penalties to the Treasury of the United States in lieu of
providing for the payment to any person or entity other than the
United States, other than a payment that provides restitution or
otherwise directly remedies actual harm directly and proximately
caused by the party making the payment, or constitutes payment for
services rendered in connection with the case.
(7) Compensation for incarceration of criminal aliens.--
(A) In general.--Providing compensation to a State or
political subdivision of a State for the incarceration of
criminal aliens.
(B) Use of funds.--The amounts made available under
subparagraph (A) shall only be used to compensate a State or
political subdivision of a State, as appropriate, with respect
to the incarceration of an alien who--
(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.
SEC. 100055. 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.--
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).
(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) 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
(ii) the effect of a termination described in clause
(i).
Subtitle B--Judiciary Matters
SEC. 100101. 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 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;
(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) `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) 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''.
(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.--An individual meets the requirements of this paragraph if
the individual, during the period described in paragraph
(1)(A)(i)(I), worked as a miner and was exposed to such number of
working level months that the Attorney General determines, when
combined with the exposure of such individual to radiation through
work as a miller, core driller, or ore transporter during the
period described in paragraph (1)(A)(i)(I), results in such
individual being exposed to a total level of radiation that is
greater or equal to the level of exposure of an individual
described in paragraph (4).''.
(f) Definition of Core Driller.--Section 5(b) of the Radiation
Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is
amended--
(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) 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) 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) 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) Losses due to medical expenses.--A claimant described in
paragraph (1) shall be eligible to receive, upon submission of
contemporaneous written medical records, reports, or billing
statements created by or at the direction of a licensed medical
professional who provided contemporaneous medical care to the
claimant, additional compensation in the amount of all documented
out-of-pocket medical expenses incurred as a result of the
specified disease suffered by that claimant, such as any medical
expenses not covered, paid for, or reimbursed through--
``(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) 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) in the event that there is no surviving spouse, the
surviving children, minor or otherwise, of the deceased individual
may, upon submission of a claim and records sufficient to satisfy
the requirements of subsection (a) with respect to the deceased
individual, receive compensation in the total amount of $25,000,
paid in equal shares to each surviving child.
``(d) Affected Areas.--For purposes of this section, the term
`affected area' means--
``(1) in the State of Missouri, the ZIP Codes of 63031, 63033,
63034, 63042, 63045, 63074, 63114, 63135, 63138, 63044, 63121,
63140, 63145, 63147, 63102, 63304, 63134, 63043, 63341, 63368, and
63367;
``(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) 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;
``(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) 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) 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) 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.''.
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''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
