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(1) issued under section 2 of the Mineral Leas-
ing Act (30 U.S.C. 201) before, on, or after the date 
of the enactment of this subtitle; and 
(2) that has not been terminated. 
(c) ADVANCE ROYALTIES.—
(1) IN
GENERAL.—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 ad-
vance 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 be-
tween the amount paid by the lessee in advance roy-
alties for the lease before the date of the enactment 
of this subtitle and the amount the lessee would 
have been required to pay if the amendment made 
by subsection (a) had been made before the lessee 
paid advance royalties for the lease. 
(2) REFUND OF EXCESS CREDITS.—If a credit 
owed to a lessee pursuant to this subsection for prior 
payment of advance royalties is in excess of royalties 
owed at the conclusion of the term of the lease, the 
Secretary shall reimburse the lessee an amount 
equal to the credit less any royalties owed during 
that term.
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SEC. 80144. AUTHORIZATION TO MINE FEDERAL MINERALS. 
(a) IN GENERAL.—All Federal coal reserves leased 
under Federal Coal Lease MTM 97988 located within the 
covered Federal land are authorized to be mined in accord-
ance with the Bull Mountains Mining Plan Modification. 
(b) DEFINITIONS.—In this section: 
(1) BULL MOUNTAINS MINING PLAN MODIFICA-
TION.—The term ‘‘Bull Mountains Mining Plan 
Modification’’ means the Mine No. 1, Amendment 3 
mining plan modification for Federal coal lease 
MTM 97988 described in the memorandum of the 
Department of the Interior titled ‘‘Recommendation 
regarding the previously approved mining plan modi-
fication for Federal Lease MTM–97988 at Signal 
Peak Energy, LLC’s Bull Mountains Mine No.1, lo-
cated in Musselshell and Yellowstone Counties, Mon-
tana’’ (November 18, 2020). 
(2) COVERED FEDERAL LAND.—The term ‘‘cov-
ered Federal land’’ means the following land com-
prising approximately 800 acres: 
(A) The NE 1⁄4 of sec. 8, T. 6 N., R. 27 
E., Montana Principal Meridian. 
(B) The SW 1⁄4 of sec. 10, T. 6 N., R. 27 
E., Montana Principal Meridian. 
(C) The W 1⁄2, SE 1⁄4 of sec. 22, T. 6 N., 
R. 27 E., Montana Principal Meridian.
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PART 5—NEPA 
SEC. 80151. PROJECT SPONSOR OPT-IN FEES FOR ENVIRON-
MENTAL REVIEWS. 
The National Environmental Policy Act of 1969 is 
amended by inserting after section 111 (42 U.S.C. 4336e) 
the following: 
‘‘SEC. 112. PROJECT SPONSOR OPT-IN FEES FOR ENVIRON-
MENTAL REVIEWS. 
‘‘(a) PROCESS.—
‘‘(1) PROJECT
SPONSOR.—A project sponsor 
who intends to pay a fee under this section for the 
preparation, or supervision of the preparation, of an 
environmental assessment or environmental impact 
statement with respect to the project of the project 
sponsor shall submit to the Council—
‘‘(A) a description of the project; and 
‘‘(B) a declaration of whether the project 
sponsor intends to prepare the environmental 
assessment or environmental impact statement 
under section 107(f) of this title. 
‘‘(2) NOTICE OF AMOUNT OF FEE.—Not later 
than 15 days after the receipt of the information de-
scribed in paragraph (1), the Council shall provide 
to the project sponsor that submitted such informa-
tion notice of the amount of the fee, as determined 
under subsection (b).
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•HR 1 EH1S 
‘‘(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 sec-
tion 107(g)(1)—
‘‘(A) an environmental assessment for 
which a fee was paid under this section shall be 
completed by not later than 6 months after the 
sooner of, as applicable, the dates described in 
clauses 
(i), 
(ii), 
and 
(iii) 
of 
section 
107(g)(1)(B); and 
‘‘(B) an environmental impact statement 
for which a fee was paid under this section shall 
be completed by not later than 1 year after the 
sooner of, as applicable, the dates described in 
clauses 
(i), 
(ii), 
and 
(iii) 
of 
section 
107(g)(1)(A). 
‘‘(b) FEE AMOUNT.—The amount of a fee under this 
section shall be—
‘‘(1) in the case of an environmental assessment 
or environmental impact statement to be prepared 
by the lead agency, 125 percent of the anticipated 
costs to prepare the environmental assessment or en-
vironmental impact statement; and
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•HR 1 EH1S 
‘‘(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 su-
pervise preparation of, and (as applicable) prepare, 
the environmental assessment or environmental im-
pact statement. 
‘‘(c) JUDICIAL REVIEW.—
‘‘(1) EA; EIS.—There shall be no judicial re-
view of an environmental assessment or environ-
mental impact statement for which a fee is paid 
under this section. 
‘‘(2) FONSI; ROD.—An action for judicial re-
view of a finding of no significant impact or record 
of decision that is associated with an environmental 
assessment or environmental impact statement de-
scribed in paragraph (1) may not challenge the find-
ing of no significant impact or record of decision 
based on an alleged issue with the environmental as-
sessment or environmental impact statement. 
‘‘(d) REVENUE ALLOCATION.—Fees received under 
this section shall be deposited into the Treasury as mis-
cellaneous receipts.’’.
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SEC. 80152. RESCISSION RELATING TO ENVIRONMENTAL 
AND CLIMATE DATA COLLECTION. 
The unobligated balance of any amounts made avail-
able under section 60401 of Public Law 117–169 is re-
scinded. 
PART 6—MISCELLANEOUS 
SEC. 80161. PROTEST FEES. 
Section 17 of the Mineral Leasing Act (30 U.S.C. 
226) is further amended by adding at the end the fol-
lowing: 
‘‘(t) PROTEST FILING FEE.—
‘‘(1) IN GENERAL.—Before processing any pro-
test under this Act, the Secretary shall collect a fil-
ing fee in the amount described in paragraph (2) 
from the protestor to recover the cost for processing 
documents filed for the protest. 
‘‘(2) AMOUNT.—The amount described in this 
paragraph is calculated as follows: 
‘‘(A) For each protest filed in a submission 
not exceeding 10 pages in length, the base filing 
fee shall be $150. 
‘‘(B) For each protest filed in a submission 
exceeding 10 pages in length, in addition to the 
base filing fee, an assessment of $5 per page in 
excess of 10 pages shall apply.
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•HR 1 EH1S 
‘‘(C) For each protest filed in a submission 
that includes more than one oil and gas lease 
parcel, right-of-way, or application for permit to 
drill, an additional assessment of $10 per addi-
tional lease parcel, right-of-way, or application 
for permit to drill shall apply. 
‘‘(3) ADJUSTMENT.—
‘‘(A) IN GENERAL.—Beginning on January 
1, 2026, and annually thereafter, the Secretary 
shall adjust the filing fees established in this 
subsection to whole dollar amounts to reflect 
changes in the Producer Price Index, as pub-
lished by the Bureau of Labor Statistics, for 
the previous 12 months. 
‘‘(B) PUBLICATION OF ADJUSTED FILING 
FEES.—At least 30 days before an adjustment 
to a filing fee under this paragraph takes effect, 
the Secretary shall publish notification of the 
adjustment in the Federal Register. 
‘‘(4) REVENUE ALLOCATION.—All revenues col-
lected under this paragraph shall be deposited in the 
Treasury as miscellaneous receipts.’’.
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PART 7—OFFSHORE OIL AND GAS LEASING 
SEC. 80171. MANDATORY OFFSHORE OIL AND GAS LEASE 
SALES. 
(a) IN GENERAL.—
(1) GULF OF AMERICA.—
(A) IN
GENERAL.—Notwithstanding the 
2024–2029 National Outer Continental Shelf 
Oil and Gas Leasing Program, the Secretary 
shall hold not fewer than 30 lease sales in the 
Gulf of America during the 15-year period be-
ginning on the date of the enactment of this 
section. 
(B) LOCATION REQUIREMENT.—For each 
lease sale held under this paragraph, the Sec-
retary may offer for lease only an area identi-
fied as the Proposed Final Program Area in 
Figure S–1 of the 2017–2022 Outer Conti-
nental Shelf Oil and Gas Leasing Proposed 
Final Program referenced in the notice of avail-
ability published by the Bureau of Ocean En-
ergy Management titled ‘‘Notice of Availability 
of the 2017–2022 Outer Continental Shelf Oil 
and Gas Leasing Proposed Final Program’’ (81 
Fed. Reg. 84612; published November 23, 
2016).
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•HR 1 EH1S 
(C) ACREAGE
REQUIREMENT.—For each 
lease sale held under this paragraph, the Sec-
retary shall offer for lease—
(i) not fewer than 80,000,000 acres; 
or 
(ii) if there are fewer than 80,000,000 
acres that are unleased, all such unleased 
acres. 
(D) TIMING
REQUIREMENT.—Of the not 
fewer than 30 lease sales required under this 
paragraph, the Secretary shall hold not fewer 
than 1 lease sale on or before each of the fol-
lowing dates: 
(i) December 15, 2025. 
(ii) March 15, 2026. 
(iii) August 15, 2026. 
(iv) March 15, 2027. 
(v) August 15, 2027. 
(vi) March 15, 2028. 
(vii) August 15, 2028. 
(viii) March 15, 2029. 
(ix) August 15, 2029. 
(x) March 15, 2030. 
(xi) August 15, 2030. 
(xii) March 15, 2031.
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(xiii) August 15, 2031. 
(xiv) March 15, 2032. 
(xv) August 15, 2032. 
(xvi) March 15, 2033. 
(xvii) August 15, 2033. 
(xviii) March 15, 2034. 
(xix) August 15, 2034. 
(xx) March 15, 2035. 
(xxi) August 15, 2035. 
(xxii) March 15, 2036. 
(xxiii) August 15, 2036. 
(xxiv) March 15, 2037. 
(xxv) August 15, 2037. 
(xxvi) March 15, 2038. 
(xxvii) August 15, 2038. 
(xxviii) March 15, 2039. 
(xxix) August 15, 2039. 
(xxx) March 15, 2040. 
(E) LEASE TERMS AND CONDITIONS.—
(i) IN GENERAL.—For each lease sale 
held under this paragraph, the Secretary 
shall, except as provided in clause (iii), 
offer the same lease form, lease terms, eco-
nomic 
conditions, 
and 
stipulations 
through 10 as contained in the Bureau of
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•HR 1 EH1S 
Ocean Energy Management final notice of 
sale titled ‘‘Gulf of Mexico Outer Conti-
nental Shelf Region-Wide Oil and Gas 
Lease Sale 254’’ (85 Fed. Reg. 8010; pub-
lished February 12, 2020). 
(ii) UPDATE.—The Secretary is au-
thorized to update stipulations 1 through 3 
of the final notice of sale titled ‘‘Gulf of 
Mexico Outer Continental Shelf Region-
Wide Oil and Gas Lease Sale 254’’ (85 
Fed. Reg. 8010; published February 12, 
2020) to reflect current conditions for 
lease sales held under this paragraph. 
(iii) DEEPWATER
TERM.—The pri-
mary term for a lease in water depths of 
800 meters or deeper issued as a result of 
a sale held under this paragraph shall be 
10 years. 
(2) COOK INLET PLANNING AREA.—
(A) IN
GENERAL.—Notwithstanding the 
2024–2029 National Outer Continental Shelf 
Oil and Gas Leasing Program, the Secretary 
shall hold not fewer than 6 lease sales in the 
Cook Inlet Planning Area during the 10-year
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•HR 1 EH1S 
period beginning on the date of the enactment 
of this section. 
(B) LOCATION REQUIREMENT.—For each 
lease sale held under this paragraph, the Sec-
retary may offer for lease only an area identi-
fied in Figure S–2 of the 2017–2022 Outer 
Continental Shelf Oil and Gas Leasing Pro-
posed Final Program referenced in the notice of 
availability published by the Bureau of Ocean 
Energy Management titled ‘‘Notice of Avail-
ability of the 2017–2022 Outer Continental 
Shelf Oil and Gas Leasing Proposed Final Pro-
gram’’ (81 Fed. Reg. 84612; published Novem-
ber 23, 2016). 
(C) ACREAGE
REQUIREMENT.—For each 
lease sale held under this paragraph, the Sec-
retary shall offer for lease—
(i) not fewer than 1,000,000 acres; or 
(ii) if there are fewer than 1,000,000 
acres that are unleased, all such unleased 
acres. 
(D) TIMING
REQUIREMENT.—Of the not 
fewer than 6 lease sales required under this 
paragraph, the Secretary shall hold not fewer
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•HR 1 EH1S 
than 1 lease sale on or before each of the fol-
lowing dates: 
(i) March 15, 2026. 
(ii) March 15, 2027. 
(iii) August 15, 2028. 
(iv) March 15, 2030. 
(v) August 15, 2031. 
(vi) March 15, 2032. 
(E) LEASE TERMS AND CONDITIONS.—For 
each lease sale held under this paragraph, the 
Secretary shall offer the same lease form, lease 
terms, economic conditions, and stipulations as 
contained in the final notice of sale titled 
‘‘Outer Continental Shelf Cook Inlet, Alaska, 
Oil and Gas Lease Sale 244’’ (82 Fed. Reg. 
23163; published May 22, 2017). 
(F) REVENUE SHARING.—Notwithstanding 
section 8(g) and 9 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(g) and 1338), 
and beginning in fiscal year 2035, of the bo-
nuses, rents, royalties, and other revenues de-
rived from leases issued pursuant to this para-
graph—
(i) 90 percent shall be paid to the 
State of Alaska; and
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•HR 1 EH1S 
(ii) 10 percent shall be deposited in 
the Treasury as miscellaneous receipts. 
(b) LEASE SALES HELD UNDER PROPOSED FINAL 
PROGRAM.—The lease sales held under this section shall 
be in addition to the lease sales held under the Proposed 
Final Program for the 2024–2029 National Outer Conti-
nental Shelf Oil and Gas Leasing Program referenced in 
the notice of availability published by the Bureau of Ocean 
Energy Management titled ‘‘Notice of Availability of the 
2024–2029 National Outer Continental Shelf Oil and Gas 
Leasing Proposed Final Program and Final Pro-
grammatic Environmental Impact Statement’’ (88 Fed. 
Reg. 67798; published October 2, 2023). 
(c) OTHER REQUIREMENTS.—During the period be-
ginning on the date of the enactment of this section and 
ending on the date that is 2 years after the date on which 
the last lease sale required to be held under this section 
is held, with respect to each lease sale held, lease issued, 
and any activity that requires a Federal authorization and 
is associated with a lease issued pursuant to this title, the 
Outer Continental Shelf Lands Act, or section 50264 of 
Public Law 117–169 in the Gulf of America—
(1) adherence with the Biological Opinion shall 
satisfy the Secretary’s obligations under the Endan-
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•HR 1 EH1S 
gered Species Act of 1973 and the Marine Mammal 
Protection Act of 1972; 
(2) the final programmatic environmental im-
pact statement referenced in the notice of avail-
ability titled ‘‘Final Programmatic Environmental 
Impact Statement for the 2017–2022 Outer Conti-
nental Shelf (OCS) Oil and Gas Leasing Program’’ 
(81 Fed. Reg. 83870; published November 22, 
2016), the Record of Decision related to such final 
programmatic environmental impact statement, and 
the final environmental impact statement referenced 
in the notice of availability titled ‘‘Final Environ-
mental Impact Statement for Outer Continental 
Shelf, Gulf of Mexico, 2017–2022 Oil and Gas Lease 
Sales 249, 250, 251, 252, 253, 254, 256, 257, 259, 
and 261’’ (82 Fed. Reg. 13363; published March 10, 
2017) shall satisfy the Secretary’s obligations under 
the National Environmental Policy Act of 1969 and 
division A of subtitle III of title 54, United States 
Code; and 
(3) the consistency determinations prepared by 
the Bureau of Ocean Energy Management under 
section 307 of the Coastal Zone Management Act of 
1972 (16 U.S.C. 1456) for Lease Sale 261 for the 
States of Texas, Louisiana, Mississippi, Alabama,
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•HR 1 EH1S 
and Florida shall satisfy the Secretary’s obligations 
under that section (16 U.S.C. 1456). 
(d) ISSUANCE OF LEASES.—If the Secretary receives 
an acceptable bid for an area offered in a lease sale held 
under this section, the Secretary shall—
(1) in accordance with section 8 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337), ac-
cept the highest acceptable bid for such area; and 
(2) not later than 90 days after the date on 
which the applicable lease sale ends, issue a lease of 
the area to the highest responsible qualified bidder. 
(e) NOMINATION
OF AREAS
FOR INCLUSION
IN 
LEASE SALE BY GOVERNOR.—
(1) IN GENERAL.—The Secretary shall establish 
a process through which the Governor of a State 
may nominate for leasing under a lease sale held 
under this section an area of the outer Continental 
Shelf that is—
(A) adjacent to the waters of the State; 
and 
(B) unleased and available for leasing. 
(2) INCLUSION OF NOMINATED AREA.—If under 
paragraph (1) the Governor of a State nominates an 
area described in that paragraph for leasing under 
a lease sale held under this section, the Secretary
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•HR 1 EH1S 
shall include the area in the next scheduled lease 
sale under subsection (a)(1)(D). 
(f) GEOLOGICAL AND GEOPHYSICAL SURVEYS.—Not 
later than 30 days after the date on which the Secretary 
receives a complete application pursuant to section 551.5 
of title 30, Code of Federal Regulations (as in effect on 
September 22, 2015), to conduct a geological or geo-
physical survey pursuant to oil and gas activities on the 
outer Continental Shelf, the Secretary shall approve such 
application. 
(g) LEASE
SALE
259 AND
LEASE
SALE
261 
LEASES.—
(1) LEASING
REVENUE
CERTAINTY.—A lease 
awarded under Lease Sale 259 or Lease Sale 261, 
which has been fully executed by the Secretary, shall 
not be set aside, vacated, enjoined, suspended, or 
cancelled except in accordance with section 5 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 
1334). 
(2) NO ADDITIONAL TERMS OR CONDITIONS.—
The Secretary shall not impose any additional terms 
or conditions on a lease awarded under Lease Sale 
259 or Lease Sale 261, which has been fully exe-
cuted by the Secretary, that were not included in the 
Bureau of Ocean Energy Management final notice of
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•HR 1 EH1S 
sale titled ‘‘Gulf of Mexico Outer Continental Shelf 
Oil and Gas Lease Sale 259’’ (88 Fed. Reg. 12404; 
published Feb. 27, 2023) or the final notice of sale 
titled ‘‘Gulf of Mexico Outer Continental Shelf Oil 
and Gas Lease Sale 261’’ (88 Fed. Reg. 80750; 
published on Nov. 20, 2023). 
(h) JUDICIAL REVIEW.—Section 23(c)(2) of the 
Outer 
Continental 
Shelf 
Lands 
Act 
(43 
U.S.C. 
1349(c)(2)) is amended to read as follows: 
‘‘(2) Any action of the Secretary to approve, require 
modification of, or disapprove any exploration plan, devel-
opment and production plan, bidding procedure, lease sale, 
lease issuance, or permit or authorization related to oil 
and gas exploration, development, or production under 
this Act, or any inaction by the Secretary resulting in the 
failure to hold a lease sale under any Federal law requir-
ing oil and gas lease sales on the outer Continental Shelf, 
shall be subject to judicial review only in a United States 
court of appeals for a circuit in which an affected State 
is located.’’. 
(i) DEFINITIONS.—In this section: 
(1) ACCEPTABLE BID.—The term ‘‘acceptable 
bid’’ means a bid that meets the requirements of the 
document published by the Bureau of Ocean Energy 
Management titled ‘‘Summary of Procedures for De-
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•HR 1 EH1S 
termining Bid Adequacy at Offshore Oil and Gas 
Lease Sales Effective March 2016, with Central 
Gulf of Mexico Sale 241 and Eastern Gulf of Mexico 
Sale 226’’. 
(2) BIOLOGICAL OPINION.—The term ‘‘Biologi-
cal Opinion’’—
(A) means the biological opinion issued by 
the National Marine Fisheries Service titled 
‘‘Biological Opinion on the Federally Regulated 
Oil and Gas Program Activities in the Gulf of 
Mexico’’ and the incidental take statement asso-
ciated with such biological opinion (published 
March 12, 2020, and updated April 26, 2021); 
and 
(B) does not include sections 3.3.1 through 
3.3.3 of such biological opinion. 
(3) LEASE.—The term ‘‘lease’’ means an oil 
and gas lease. 
(4) LEASE SALE 259.—The term ‘‘Lease Sale 
259’’ means the lease sale held by the Bureau of 
Ocean Energy Management on March 29, 2023. 
(5) LEASE SALE 261.—The term ‘‘Lease Sale 
261’’ means the lease sale held by the Bureau of 
Ocean Energy Management on December 20, 2023.
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•HR 1 EH1S 
(6) OUTER CONTINENTAL SHELF.—The term 
‘‘outer Continental Shelf’’ has the meaning given 
such term in section 2 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331). 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
SEC. 80172. OFFSHORE COMMINGLING. 
The Secretary of the Interior shall approve operator 
requests to commingle production from multiple reservoirs 
within a single wellbore completed on the Outer Conti-
nental Shelf of the Gulf of America unless conclusive evi-
dence establishes that such commingling—
(1) could not be conducted in a safe manner; or 
(2) would result in the ultimate recovery from 
such formations being reduced. 
SEC. 80173. LIMITATIONS ON AMOUNT OF DISTRIBUTED 
QUALIFIED 
OUTER 
CONTINENTAL 
SHELF 
REVENUES. 
Section 105(f)(1) of the Gulf of Mexico Energy Secu-
rity Act of 2006 (43 U.S.C. 1331 note) is amended—
(1) in subparagraph (B), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (C), by striking ‘‘2055.’’ 
and inserting ‘‘2024;’’; and 
(3) by adding at the end the following:
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•HR 1 EH1S 
‘‘(D) $650,000,000 for each of fiscal years 
2025 through 2034; and 
‘‘(E) $500,000,000 for each of fiscal years 
2035 through 2055.’’. 
PART 8—RENEWABLE ENERGY 
SEC. 80181. RENEWABLE ENERGY FEES ON FEDERAL 
LANDS. 
(a) ACREAGE RENT FOR WIND AND SOLAR RIGHTS-
OF-WAY.—
(1) IN GENERAL.—Under the second sentence 
of section 504(g) of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1764(g)), the 
Secretary shall, subject to paragraph (3) and not 
later than January 1 of each calendar year, collect 
from the holder of a right-of-way for a renewable en-
ergy project an acreage rent in an amount based on 
the equation described in paragraph (2). 
(2) CALCULATION OF ACREAGE RENT RATE.—
(A) EQUATION.—The amount of an acre-
age rent collected under paragraph (1) shall be 
determined using the following equation: Acre-
age rent = A × B × ((1 + C)D)). 
(B) DEFINITIONS.—For purposes of sub-
paragraph (A):
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•HR 1 EH1S 
(i) The letter ‘‘A’’ means the Per-Acre 
Rate. 
(ii) The letter ‘‘B’’ means the Encum-
brance Factor. 
(iii) The letter ‘‘C’’ means the Annual 
Adjustment Factor. 
(iv) The letter ‘‘D’’ means the year in 
the term of the right-of-way. 
(3) PAYMENT UNTIL PRODUCTION.—The holder 
of a right-of-way for a renewable energy project shall 
pay an acreage rent collected under paragraph (1) 
until the date on which energy generation begins. 
(b) CAPACITY FEES.—
(1) IN GENERAL.—The Secretary shall, subject 
to paragraph (2), annually collect a capacity fee 
from the holder of a right-of-way for a renewable en-
ergy project based on the amount described in para-
graph (2). 
(2) CALCULATION
OF
CAPACITY
FEE.—The 
amount of a capacity fee collected under paragraph 
(1) shall be equal to the greater of—
(A) an amount equal to the acreage rent 
described in subsection (a); and
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•HR 1 EH1S 
(B) 4.58 percent of the gross proceeds 
from the sale of electricity produced by the re-
newable energy project. 
(3) MULTIPLE-USE REDUCTION FACTOR.—
(A) APPLICATION.—The holder of a right-
of-way for a wind energy generation project 
may request that the Secretary apply a 10-per-
cent Multiple-Use Reduction Factor to the 
amount of a capacity fee determined under 
paragraph (2) by submitting to the Secretary 
an application for approval. 
(B) APPROVAL.—The Secretary may ap-
prove an application submitted under subpara-
graph (A) if not less than 25 percent of the 
land within the area of the right-of-way is au-
thorized for use, occupancy, or development 
with respect to an activity other than the gen-
eration of wind energy for the entirety of the 
year in which the capacity fee is collected. 
(C) LATE
DETERMINATION.—If the Sec-
retary approves an application under subpara-
graph (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
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•HR 1 EH1S 
Reduction Factor to the capacity fee in the fol-
lowing years. Under this subparagraph, the 
Secretary may not refund the holder of a right-
of-way for the difference in the amount of a ca-
pacity fee paid in a previous year. 
(c) LATE PAYMENT FEE; TERMINATION.—
(1) IN GENERAL.—The Secretary may charge 
the holder of a right-of-way for a renewable energy 
project a late payment fee if the Secretary does not 
receive payment for the acreage rent under sub-
section (a) or the capacity fee under subsection (b) 
by the date that is 15 days after the date on which 
the payment was due. 
(2) TERMINATION
OF
RIGHT-OF-WAY.—The 
Secretary may terminate a right-of-way for a renew-
able energy project if the Secretary does not receive 
payment for the acreage rent under subsection (a) 
or the capacity fee under subsection (b) by the date 
that is 90 days after the date on which the payment 
was due. 
(d) REVENUE ACCURACY, TRANSPARENCY, AND AC-
COUNTABILITY.—The Secretary shall document, verify, 
and make publicly available the respective amount of wind 
and solar energy revenues collected under this section on
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the Department of the Interior’s Natural Resources Rev-
enue Data website. 
(e) ENSURING FEE CERTAINTY.—Section 3103 of 
the Energy Act of 2020 (43 U.S.C. 3003) is repealed. 
(f) DEFINITIONS.—In this section: 
(1) ANNUAL ADJUSTMENT FACTOR.—The term 
‘‘Annual Adjustment Factor’’ means 3 percent. 
(2) ENCUMBRANCE FACTOR.—The term ‘‘En-
cumbrance Factor’’ means—
(A) 100 percent for solar energy genera-
tion facilities; and 
(B) an amount determined by the Sec-
retary not less than 10 percent for wind energy 
generation facilities. 
(3) PER-ACRE
RATE.—The term ‘‘Per-Acre 
Rate’’ means the average of per-acre pastureland 
rental rates published in the Cash Rents Survey by 
the National Agricultural Statistics Service for the 
State in which the right-of-way is located over the 
5 calendar-year period preceding the issuance or re-
newal of the right-of-way. 
(4) PROJECT.—The term ‘‘project’’ means a 
system described in section 2801.9(a)(4) of title 43, 
Code of Federal Regulations (as such section is in 
effect on the date of the enactment of this Act).
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(5) PUBLIC LANDS.—The term ‘‘public lands’’ 
means—
(A) public lands as such term is defined in 
section 103 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1702); 
and 
(B) the lands of the National Forest Sys-
tem as described in section 11(a) of the Forest 
and Rangeland Renewable Resources Planning 
Act of 1974 (16 U.S.C. 1609(a)). 
(6) RENEWABLE ENERGY PROJECT.—The term 
‘‘renewable energy project’’ means a project located 
on public lands that uses wind or solar energy to 
generate energy. 
(7) RIGHT-OF-WAY.—The term ‘‘right-of-way’’ 
has the meaning given such term in section 103 of 
the Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1702). 
(8) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means—
(A) the Secretary of the Interior with re-
spect to land controlled or administered by the 
Secretary of the Interior; or 
(B) the Secretary of Agriculture with re-
spect to the lands of the National Forest Sys-
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tem controlled or administered by the Secretary 
of Agriculture. 
SEC. 80182. RENEWABLE ENERGY REVENUE SHARING. 
(a) DISPOSITION OF REVENUE.—
(1) DISPOSITION OF REVENUES.—Beginning on 
January 1, 2026, the amounts collected from a re-
newable energy project as bonus bids, rentals, fees, 
or other payments under a right-of-way, permit, 
lease, or other authorization shall be—
(A) deposited in the general fund of the 
Treasury; and 
(B) without further appropriation or fiscal 
year limitation, allocated as follows: 
(i) 25 percent shall be paid from 
amounts in the general fund of the Treas-
ury 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 Treas-
ury to each county within the boundaries 
of which the revenue is derived, to be allo-
cated among each such county based on 
the percentage of land from which the rev-
enue is derived. 
(2) PAYMENTS TO STATES AND COUNTIES.—
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(A) IN GENERAL.—The amounts paid to 
States and counties under paragraph (1) shall 
be used consistent with section 35 of the Min-
eral 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 re-
ceived by the county under chapter 69 of title 
31, United States Code. 
(C) TIMING.—The amounts required to be 
paid under paragraph (1)(B) for an applicable 
fiscal year shall be made available not later 
than the fiscal year that immediately follows 
the fiscal year for which the amounts were col-
lected. 
(b) DEFINITIONS.—In this section: 
(1) COVERED LAND.—The term ‘‘covered land’’ 
means land that is—
(A) public lands administered by the Sec-
retary; and 
(B) not excluded from the development of 
solar or wind energy under—
(i) a land use plan; or 
(ii) other Federal law.
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(2) PUBLIC LANDS.—The term ‘‘public lands’’ 
means—
(A) public lands as such term is defined in 
section 103 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1702); 
and 
(B) lands of the National Forest System 
as described in section 11(a) of the Forest and 
Rangeland Renewable Resources Planning Act 
of 1974 (16 U.S.C. 1609(a)). 
(3) RENEWABLE ENERGY PROJECT.—The term 
‘‘renewable energy project’’ means a system de-
scribed in section 2801.9(a)(4) of title 43, Code of 
Federal Regulations (as such section is in effect on 
the date of the enactment of this Act), located on 
covered land that uses wind or solar energy to gen-
erate energy. 
(4) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means—
(A) the Secretary of the Interior with re-
spect to land controlled or administered by the 
Secretary of the Interior; or 
(B) the Secretary of Agriculture with re-
spect to the lands of the National Forest Sys-
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tem controlled or administered by the Secretary 
of Agriculture. 
Subtitle B—Water, Wildlife, and 
Fisheries 
SEC. 80201. RESCISSION OF FUNDS FOR INVESTING IN 
COASTAL COMMUNITIES AND CLIMATE RE-
SILIENCE. 
There is hereby rescinded the unobligated balance of 
funds made available by section 40001 of Public Law 
117–169. 
SEC. 80202. RESCISSION OF FUNDS FOR FACILITIES OF NA-
TIONAL OCEANIC AND ATMOSPHERIC ADMIN-
ISTRATION AND NATIONAL MARINE SANC-
TUARIES. 
There is hereby rescinded the unobligated balance of 
funds made available by section 40002 of Public Law 
117–169. 
SEC. 80203. SURFACE WATER STORAGE ENHANCEMENT. 
In addition to amounts otherwise available, there is 
appropriated to the Secretary of the Interior, acting 
through the Commissioner of Reclamation, for fiscal year 
2025, out of any money in the Treasury not otherwise ap-
propriated, $2,000,000,000, to remain available through 
September 30, 2034, for construction and associated ac-
tivities that increase the capacity of existing Bureau of
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Reclamation surface water storage facilities, in a manner 
as determined by the Secretary: Provided, That, for the 
purposes of section 203 of the Reclamation Reform Act 
of 1982 (43 U.S.C. 390cc) or section 3404(a) of the Rec-
lamation Projects Authorization and Adjustment Act of 
1992 (Public Law 102–575), a contract or agreement en-
tered into pursuant to this section shall not be treated as 
a new or amended contract. None of the funds provided 
under this section shall be reimbursable or subject to 
matching or cost-share requirements. 
SEC. 80204. WATER CONVEYANCE ENHANCEMENT. 
In addition to amounts otherwise available, there is 
appropriated to the Secretary of the Interior, acting 
through the Commissioner of Reclamation, for fiscal year 
2025, out of any money in the Treasury not otherwise ap-
propriated, $500,000,000, to remain available through 
September 30, 2034, for construction and associated ac-
tivities that restore or increase the capacity of existing Bu-
reau of Reclamation conveyance facilities, in a manner as 
determined by the Secretary. None of the funds provided 
under this section shall be reimbursable or subject to 
matching or cost-share requirements.
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Subtitle C—Federal Lands 
SEC. 80301. RESCISSION OF FOREST SERVICE FUNDS. 
Paragraph (4) of section 23001(a) of Public Law 
117–169 is repealed and all unobligated balances of 
amounts made available under such paragraph are hereby 
rescinded. 
SEC. 80302. RESCISSION OF NATIONAL PARK SERVICE AND 
BUREAU OF LAND MANAGEMENT FUNDS. 
There is hereby rescinded the unobligated balances 
of amounts made available by section 50221 of Public Law 
117–169. 
SEC. 80303. RESCISSION OF BUREAU OF LAND MANAGE-
MENT AND NATIONAL PARK SERVICE FUNDS. 
There is hereby rescinded the unobligated balances 
of amounts made available by section 50222 of Public Law 
117–169. 
SEC. 80304. RESCISSION OF NATIONAL PARK SERVICE 
FUNDS. 
There is hereby rescinded the unobligated balances 
of amounts made available by section 50223 of Public Law 
117–169. 
SEC. 80305. CELEBRATING AMERICA’S 250TH ANNIVERSARY. 
In addition to amounts otherwise available, there is 
appropriated to the Secretary of the Interior for fiscal year
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2025, out of any money in the Treasury not otherwise ap-
propriated, to remain available through fiscal year 2028—
(1) $150,000,000 for events, celebrations, and 
activities related to the observance and commemora-
tion of the 250th anniversary of the founding of the 
United States; and 
(2) $40,000,000 to carry out Executive Order 
13934 of July 3, 2020 (85 Fed. Reg. 41165), Exec-
utive Order 13978 of January 18, 2021 (86 Fed. 
Reg. 6809), and Executive Order 14189 of January 
29, 2025 (90 Fed. Reg. 8849) to establish and 
maintain a statuary park to be known as the Na-
tional Garden of American Heroes. 
SEC. 80306. LONG-TERM CONTRACTS FOR THE FOREST 
SERVICE. 
(a) IN GENERAL.—For each of fiscal years 2025 
through 2034, the Chief of the Forest Service (in this sec-
tion referred to as the ‘‘Chief’’) shall enter into not less 
than one long-term contract or agreement with private 
persons or other public or private entities under section 
14(a) of the National Forest Management Act (16 U.S.C. 
472a(a)) with respect to covered National Forest System 
lands in each region of the Forest Service that contains 
covered National Forest System lands. 
(b) TERMS.—
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(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the Chief shall enter into con-
tracts or agreements under subsection (a) in accord-
ance with section 3903 of title 41, United States 
Code, and section 14 of the National Forest Man-
agement Act (16 U.S.C. 472a). 
(2) CONTRACT LENGTH.—The period of a con-
tract or agreement under subsection (a) shall be for 
at least 20 years, with options for extensions and re-
newals as determined by the Chief. 
(3) CANCELLATION CEILINGS.—A contract or 
agreement entered into under subsection (a) shall in-
clude provisions for a cancellation ceiling consistent 
with section 604(d) of the Healthy Forests Restora-
tion Act of 2003 (16 U.S.C. 6591c(d)). 
(c) RECEIPTS.—Any monies derived from an agree-
ment or contract under this section by the Chief shall be 
deposited in the general fund of the Treasury. 
(d) COVERED NATIONAL FOREST SYSTEM LANDS 
DEFINED.—In this section, the term ‘‘covered National 
Forest System lands’’ means the proclaimed National For-
est System lands reserved or withdrawn from the public 
domain of the United States.
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SEC. 80307. LONG-TERM CONTRACTS FOR THE BUREAU OF 
LAND MANAGEMENT. 
(a) IN GENERAL.—For each of fiscal years 2025 
through 2034, the Director of the Bureau of Land Man-
agement (in this section referred to as the ‘‘Director’’) 
shall enter into not less than one long-term contract or 
agreement with private persons or other public or private 
entities under section 1 of the Materials Act of 1947 (30 
U.S.C. 601) with respect to vegetative materials on cov-
ered public lands. 
(b) TERMS.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the Director shall enter into con-
tracts or agreements under subsection (a) in accord-
ance with section 3903 of title 41, United States 
Code, and section 2(a) of the Materials Act of 1947 
(30 U.S.C. 602(a)). 
(2) CONTRACT LENGTH.—The period of a con-
tract or agreement under subsection (a) shall be for 
at least 20 years, with options for extensions and re-
newals as determined by the Director. 
(3) CANCELLATION CEILINGS.—A contract or 
agreement entered into under subsection (a) shall in-
clude provisions for a cancellation ceiling consistent 
with section 604(d) of the Healthy Forests Restora-
tion Act of 2003 (16 U.S.C. 6591c(d)).
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(c) LOCATION.—In selecting locations to enter into 
long-term contracts or agreements under subsection (a), 
the Director shall prioritize areas with no existing wood 
processing infrastructure. 
(d) RECEIPTS.—Any monies derived from an agree-
ment or contract under this section by the Director shall 
be deposited in the general fund of the Treasury. 
(e) COVERED PUBLIC LANDS DEFINED.—The term 
‘‘covered public lands’’ has the meaning given the term 
‘‘public lands’’ in section 103 of the Federal Land Policy 
and Management Act of 1976 (43 U.S.C. 1702), except 
that the term includes Coos Bay Wagon Road Grant lands 
and Oregon and California Railroad Grant lands. 
SEC. 80308. TIMBER PRODUCTION FOR THE FOREST SERV-
ICE. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this title, the Secretary of Agri-
culture, acting through the Chief of the Forest Service or 
their designee, shall direct timber harvest on covered Na-
tional Forest System lands in amounts that—
(1) in total, equal or exceed the volume that is 
25 percent higher than the average of the total vol-
ume sold on such lands between fiscal years 2020 
through 2024; and
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•HR 1 EH1S 
(2) are in accordance with the applicable forest 
plan, including the allowable sale quantity or prob-
able sale quantity, as applicable, of timber applicable 
to such lands on the date of enactment of this title. 
(b) DEFINITIONS.—In this section: 
(1) COVERED
NATIONAL
FOREST
SYSTEM 
LANDS.—
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘covered National 
Forest System lands’’ means the proclaimed 
National Forest System lands reserved or with-
drawn from the public domain of the United 
States. 
(B) EXCLUSIONS.—The term ‘‘covered Na-
tional Forest System lands’’ does not include 
lands—
(i) that are included in the National 
Wilderness Preservation System; 
(ii) that are located within a national 
or State-specific inventoried roadless area 
established by the Secretary of Agriculture 
through regulation, unless—
(I) the forest management activ-
ity to be carried out under such au-
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•HR 1 EH1S 
thority is consistent with the forest 
plan applicable to the area; or 
(II) the activity is allowed under 
the applicable roadless rule governing 
such lands, including—
(aa) the Idaho roadless rule 
under subpart C of part 294 of 
title 36, Code of Federal Regula-
tions; 
(bb) the Colorado roadless 
rule under subpart D of part 294 
of title 36, Code of Federal Reg-
ulations; or 
(cc) any other roadless rule 
developed after the date of the 
enactment of this section by the 
Secretary with respect to a spe-
cific State; or 
(iii) on which timber harvesting for 
any purpose is prohibited by Federal stat-
ute. 
(2) FOREST
PLAN.—The term ‘‘forest plan’’ 
means a land and resource management plan pre-
pared by the Forest Service for a unit of the Na-
tional Forest System pursuant to section 6 of the
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Forest and Rangeland Renewable Resources Plan-
ning Act of 1974 (16 U.S.C. 1604). 
SEC. 80309. TIMBER PRODUCTION FOR THE BUREAU OF 
LAND MANAGEMENT. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this title, the Secretary of the Inte-
rior, acting through the Director of the Bureau of Land 
Management or their designee, shall direct timber harvest 
on covered public lands in amounts that—
(1) in total, equal or exceed the volume that is 
25 percent higher than the average of the total vol-
ume sold on such lands between fiscal years 2020 
through 2024; and 
(2) are in accordance with the applicable forest 
plan. 
(b) DEFINITIONS.—In this section: 
(1) COVERED PUBLIC LANDS.—
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘covered public 
lands’’ has the meaning given the term ‘‘public 
lands’’ in section 103 of the Federal Land Pol-
icy and Management Act of 1976 (43 U.S.C. 
1702), except that the term includes Coos Bay 
Wagon Road Grant lands and Oregon and Cali-
fornia Railroad Grant lands.
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(B) EXCLUSIONS.—The term ‘‘covered 
public lands’’ does not include lands—
(i) that are included in the National 
Wilderness Preservation System; or 
(ii) on which timber harvesting for 
any purpose is prohibited by Federal stat-
ute. 
(2) FOREST
PLAN.—The term ‘‘forest plan’’ 
means a land use plan prepared by the Bureau of 
Land Management for public lands pursuant to sec-
tion 202 of the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1712). 
TITLE IX—COMMITTEE ON OVER-
SIGHT AND GOVERNMENT RE-
FORM 
SEC. 90001. ELIMINATION OF THE FERS ANNUITY SUPPLE-
MENT FOR CERTAIN EMPLOYEES. 
(a) IN GENERAL.—Section 8421(a) of title 5, United 
States Code, is amended—
(1) in paragraph (1), by inserting ‘‘separated 
from service under section 8425 or entitled to an an-
nuity under subsection (d) or (e) of section 8412 of 
this title’’ after ‘‘individual’’; and 
(2) in paragraph (2), by inserting ‘‘separated 
from service under section 8425 or entitled to an an-
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•HR 1 EH1S 
nuity under subsection (d) or (e) of section 8412 of 
this title’’ after ‘‘an individual’’. 
(b) APPLICABILITY.—The amendments made by this 
section shall begin to apply on January 1, 2028, and shall 
not apply with respect to any individual entitled to an an-
nuity supplement under section 8421 of title 5, United 
States Code, prior to such date. 
SEC. 90002. ELECTION FOR AT-WILL EMPLOYMENT AND 
LOWER FERS CONTRIBUTIONS FOR NEW FED-
ERAL CIVIL SERVICE HIRES. 
(a) ELECTION.—
(1) IN GENERAL.—Subchapter I of chapter 33 
of title 5, United States Code, is amended by adding 
at the end the following: 
‘‘§ 3330g. Election for at-will employment and lower 
FERS contributions 
‘‘(a) ELECTION.—
‘‘(1) IN GENERAL.—Not later than the last day 
of the probationary period (if any) for an individual 
initially appointed to a covered position after the 
date of the enactment of this section, such individual 
may make an irrevocable election to be employed on 
an at-will basis, subject to the requirements of this 
section.
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‘‘(2) FAILURE TO MAKE ELECTION.—An indi-
vidual who does not make the election under para-
graph (1) shall be subject to the requirements of 
section 8422(a)(3)(D). 
‘‘(b) 
AT-WILL
EMPLOYMENT.—Notwithstanding 
chapter 43, 71, or 75 of this title, any individual who 
makes an affirmative election under subsection (a)(1) 
shall—
‘‘(1) be considered an at-will employee; and 
‘‘(2) may be subject to an adverse action up to 
and including removal, without notice or right to ap-
peal, by the head of the agency at which the indi-
vidual is employed for good cause, bad cause, or no 
cause at all. 
‘‘(c) APPLICATION
OF
OTHER
LAWS.—Notwith-
standing any other requirement of this section, this section 
shall not be construed to reduce, extinguish, or otherwise 
effect any right or remedy available to any individual who 
elects to be an at-will employee under subsection (a)(1) 
under any of the following provisions of law: 
‘‘(1) The protections relating to prohibited per-
sonnel practices (as that term is defined in section 
2302).
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•HR 1 EH1S 
‘‘(2) The Congressional Accountability Act of 
1995, in the case of employees of the legislative 
branch who are subject to this section. 
‘‘(d) COVERED POSITION.—In this section, the term 
‘covered position’—
‘‘(1) means—
‘‘(A) any position in the competitive serv-
ice; 
‘‘(B) a career appointee position in the 
Senior Executive Service; 
‘‘(C) a position in the excepted service; and 
‘‘(2) does not include—
‘‘(A) any position excepted from the com-
petitive service because of its confidential, pol-
icy-determining, policy-making, or policy-advo-
cating character; 
‘‘(B) any position excluded from the cov-
erage of section 2302 (by operation of sub-
section (a)(2)(B) of such section) or chapter 75; 
or 
‘‘(C) any position subject to mandatory 
separation under section 8335 or 8425.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for such subchapter is amended by adding
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after the item relating to section 3330f the fol-
lowing:
‘‘3330g. Election for at-will employment and lower FERS contributions.’’.
(b) INCREASE IN FERS CONTRIBUTIONS.—Section 
8422(a) of title 5, United States Code, is amended by add-
ing at the end the following: 
‘‘(D) The applicable percentage under this 
paragraph for civilian service by any individual 
who elects not to be employed on an at-will 
basis under section 3330g shall be equal to the 
percentage required under subparagraph (C), 
increased by 5 percentage points.’’. 
(c) APPLICATION.—This section and the amendments 
made by this section shall apply to individuals initially ap-
pointed to positions in the civil service subject to such sec-
tion and amendments appointed on or after the date of 
the enactment of this Act. 
SEC. 90003. FILING FEE FOR MERIT SYSTEMS PROTECTION 
BOARD CLAIMS AND APPEALS. 
(a) IN GENERAL.—Section 7701 of title 5, United 
States Code, is amended—
(1) in redesignating subsection (k) as sub-
section (l); and 
(2) by inserting after subsection (j) the fol-
lowing:
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•HR 1 EH1S 
‘‘(k)(1) The Board shall establish and collect a filing 
fee to be paid by any employee, former employee, or appli-
cant for employment filing a claim or appeal with the 
Board under this title, or under any other law, rule, or 
regulation, consistent with the requirements of this sub-
section. 
‘‘(2) The filing fee under paragraph (1) shall—
‘‘(A) be in an amount equal to the filing fee for 
a civil action, suit, or proceeding under section 
1914(a) of title 28; 
‘‘(B) be paid on the date the individual submits 
a claim or appeal to the Board; and 
‘‘(C) if the individual is the prevailing party 
under such claim or appeal, be returned to such in-
dividual. 
‘‘(3) The filing fee under this subsection shall not be 
required for any—
‘‘(A) action brought by the Special Counsel 
under section 1214, 1215, or 1216; or 
‘‘(B) any claim or appeal of a prohibited per-
sonnel practice described in section 2302(b)(8) or 
2302(b)(9)(A)(i), (B), (C), or (D) or in section 
1221. 
‘‘(4) On the date that a claim or appeal with respect 
to which the individual is not the prevailing party has not
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•HR 1 EH1S 
been appealed and is no longer appealable because the 
time for taking an appeal has expired, or which has been 
appealed under section 7703 and the appeals process for 
which is completed, the fee collected under paragraph (1) 
shall, except as provided in paragraph (2)(C), be deposited 
into the miscellaneous receipts of the Treasury.’’. 
(b) APPLICATION.—The fee required under the 
amendment made by subsection (a) shall apply to any 
claim or appeal filed with the Merit Systems Protection 
Board after the date that is 3 months after the date of 
the enactment of this section. 
SEC. 90004. FEHB PROTECTION. 
(a) FEHB IMPROVEMENTS.—
(1) DEFINITIONS.—In this subsection: 
(A) DIRECTOR.—The term ‘‘Director’’ 
means the Director of the Office of Personnel 
Management. 
(B) EMPLOYING OFFICE.—The term ‘‘em-
ploying office’’ has the meaning given the term 
in section 890.101(a) of title 5, Code of Federal 
Regulations, or any successor regulation. 
(C) HEALTH BENEFITS PLAN; MEMBER OF 
FAMILY.—The terms ‘‘health benefits plan’’ and 
‘‘member of family’’ have the meanings given
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•HR 1 EH1S 
those terms in section 8901 of title 5, United 
States Code. 
(D) INSPECTOR GENERAL.—The term ‘‘In-
spector General’’ means the Inspector General 
of the Office of Personnel Management. 
(E) OPEN SEASON.—The term ‘‘open sea-
son’’ means an open season described in section 
890.301(f) of title 5, Code of Federal Regula-
tions, or any successor regulation. 
(F) PROGRAM.—The term ‘‘Program’’ 
means the health insurance programs carried 
out under chapter 89 of title 5, United States 
Code, including the program carried out under 
section 8903c of that title. 
(G) QUALIFYING LIFE EVENT.—The term 
‘‘qualifying life event’’ has the meaning given 
the term in section 892.101 of title 5, Code of 
Federal Regulations, or any successor regula-
tion. 
(2) VERIFICATION REQUIREMENTS.—
(A) IN GENERAL.—Not later than 1 year 
after the date of the enactment of this Act, the 
Director shall issue regulations and implement 
a process to verify—
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•HR 1 EH1S 
(i) the veracity of any qualifying life 
event through which an enrollee in the 
Program seeks to add a member of family 
with respect to the enrollee to a health 
benefits plan under the Program; and 
(ii) that, when an enrollee in the Pro-
gram seeks to add a member of family 
with respect to the enrollee to the health 
benefits plan of the enrollee under the Pro-
gram, including during any open season, 
the individual so added is a qualifying 
member of family with respect to the en-
rollee. 
(B) RECORD
RETENTION.—The process 
implemented under subparagraph (A) shall re-
quire the records used for a verification de-
scribed in such subparagraph under such proc-
ess with respect to an individual enrolled in a 
health benefits plan under the Program to be 
provided to the Office of Personnel Manage-
ment and retained by the Office of Personnel 
Management until the expiration of a six-year 
period beginning after the date of such 
verification in which such individual is not en-
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•HR 1 EH1S 
rolled in a health benefits plan under the Pro-
gram. 
(3) FRAUD RISK ASSESSMENT.—In any fraud 
risk assessment conducted with respect to the Pro-
gram on or after the date of the enactment of this 
Act, the Director shall include an assessment of in-
dividuals who are enrolled in, or covered under, a 
health benefits plan under the Program even though 
those individuals are not eligible to be so enrolled or 
covered. 
(4) 
FAMILY
MEMBER
ELIGIBILITY 
VERIFICATION AUDIT.—
(A) IN GENERAL.—During the 5-year pe-
riod beginning 1 year after the date of the en-
actment of this Act, the Director shall conduct 
a comprehensive audit regarding members of 
family who are covered under an enrollment in 
a health benefits plan under the Program. 
(B) CONTENTS.—In conducting an audit 
required by subparagraph (A), the Director 
shall review marriage certificates, birth certifi-
cates, and other appropriate documents that 
are necessary to determine eligibility to enroll in 
a health benefits plan under the Program.
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•HR 1 EH1S 
(C) RECORD RETENTION.—All records per-
taining to the eligibility of an individual to be 
enrolled in, or covered under, a health benefits 
plan under the Program obtained by the Direc-
tor in the audit required by subparagraph (A) 
shall be retained by the Office of Personnel 
Management until the expiration of a six-year 
period beginning after the date of such audit in 
which such individual is not enrolled in, or cov-
ered under, a health benefits plan under the 
Program. 
(D) 
REFERRAL
TO
INSPECTOR
GEN-
ERAL.—The Director shall refer any instances 
of individuals enrolled in, or covered under, a 
health benefits plan under the Program who are 
not eligible to be so enrolled or covered that are 
identified in the audit required by subparagraph 
(A) to the Inspector General. 
(5) DISENROLLMENT OR REMOVAL.—
(A) IN
GENERAL.—Not later than 6 
months after the date of the enactment of this 
Act, the Director shall develop a process by 
which any individual enrolled in, or covered 
under, a health benefits plan under the Pro-
gram who is not eligible to be so enrolled or
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•HR 1 EH1S 
covered shall be disenrolled or removed from en-
rollment in a health benefits plan under the 
Program. 
(B) NOTIFY
INSPECTOR
GENERAL.—The 
Director shall notify the Inspector General of 
each individual disenrolled or removed from en-
rollment in a health benefits plan under the 
Program under the process developed under 
subparagraph (A). 
(b) EARNED BENEFITS AND HEALTHCARE ADMINIS-
TRATIVE SERVICES ASSOCIATED OVERSIGHT AND AUDIT 
FUNDING.—
(1) IN GENERAL.—Section 8909(a)(2) of title 
5, United States Code, is amended by striking ‘‘Con-
gress.’’ and inserting ‘‘Congress, except that the 
amounts authorized under subsection (b)(2) for the 
Office shall not be subject to the limitations that 
may be specified annually by Congress.’’. 
(2) OVERSIGHT.—Section 8909(b) of title 5, 
United States Code, is amended—
(A) by redesignating paragraph (2) as 
paragraph (5); and 
(B) by inserting after paragraph (1) the 
following:
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‘‘(2) In addition to the funds provided under 
paragraph (1), amounts of all contributions shall be 
available for the Office to develop, maintain, and 
conduct ongoing eligibility verification and oversight 
over the enrollment and eligibility systems with re-
spect to benefits under this chapter, including the 
Postal Service Health Benefits Program under sec-
tion 8903c. Amounts for the Office under this para-
graph shall not be available in excess of the fol-
lowing amounts in the following fiscal years: 
‘‘(A) In fiscal year 2026, $36,792,000. 
‘‘(B) In fiscal year 2027, $44,733,161. 
‘‘(C) In fiscal year 2028, $50,930,778. 
‘‘(D) In fiscal year 2029, $54,198,238. 
‘‘(E) In fiscal year 2030, $54,855,425. 
‘‘(F) In fiscal year 2031, $56,062,244. 
‘‘(G) In fiscal year 2032, $57,295,613. 
‘‘(H) In fiscal year 2033, $58,556,117. 
‘‘(I) In fiscal year 2034, $59,844,351. 
‘‘(J) In fiscal year 2035 and each fiscal 
year thereafter, the amount equal to the dollar 
limit for the immediately preceding fiscal year, 
increased by 2.2. percent. 
‘‘(3) In fiscal year 2026, $80,000,000, to be de-
rived from all contributions and to remain available
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until expended, shall be available for the Office to 
conduct 
the 
audit 
required 
under 
section 
90004(a)(4) of the Act titled ‘An Act to provide for 
reconciliation pursuant to title II of H. Con. Res. 
14’. 
‘‘(4) Amounts of all contributions shall be avail-
able for the Office of Personnel Management Office 
of the Inspector General to conduct oversight associ-
ated with activities under this chapter (including the 
Postal Service Health Benefits Program under sec-
tion 8903c), including activities associated with en-
rollment and eligibility in these programs and any 
associated audit activities as required under section 
90004 of the Act titled ‘An Act to provide for rec-
onciliation pursuant to title II of H. Con. Res. 14’. 
Amounts for the Office of the Inspector General 
under this paragraph shall not be available in excess 
of the following amounts in the following fiscal 
years: 
‘‘(A) In fiscal year 2026, $5,090,278. 
‘‘(B) In fiscal year 2027 and each fiscal 
year thereafter, the amount equal to the dollar 
limit for the immediately preceding fiscal year, 
increased by 2.2 percent.’’.
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TITLE 
X—COMMITTEE 
ON 
TRANSPORTATION 
AND 
IN-
FRASTRUCTURE 
SEC. 100001. COAST GUARD ASSETS NECESSARY TO SECURE 
THE MARITIME BORDER AND INTERDICT MI-
GRANTS AND DRUGS. 
(a) IN GENERAL.—For the purpose of the acquisi-
tion, sustainment, improvement, and operation of United 
States Coast Guard assets, in addition to amounts other-
wise made available, there is appropriated to the Com-
mandant of the Coast Guard for fiscal year 2025, out of 
any money in the Treasury not otherwise appropriated, 
to remain available until September 30, 2029—
(1) $571,500,000 for fixed wing aircraft and 
spare parts, training simulators, support equipment, 
and program management for such aircraft; 
(2) $1,283,000,000 for rotary wing aircraft and 
spare parts, training simulators, support equipment, 
and program management for such aircraft; 
(3) $140,000,000 for long-range unmanned air-
craft systems and base stations, support equipment, 
and program management for such systems; 
(4) $4,300,000,000 for Offshore Patrol Cutters 
and spare parts and program management for such 
Cutters;
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•HR 1 EH1S 
(5) $1,000,000,000 for Fast Response Cutters 
and spare parts and program management for such 
Cutters; 
(6) $4,300,000,000 for Polar Security Cutters 
and spare parts and program management for such 
Cutters; 
(7) $4,978,000,000 for Arctic Security Cutters 
and domestic icebreakers and spare parts and pro-
gram management for such Cutters and icebreakers; 
(8) $3,154,500,000 for design, planning, engi-
neering, construction of, and program management 
for shoreside infrastructure, of which—
(A) $400,000,000 is provided for hangers 
and maintenance and crew facilities for the 
fixed wing aircraft for which funds are appro-
priated under paragraph (1) and rotary wing 
aircraft for which funds are appropriated under 
paragraph (2); 
(B) 
$2,329,500,000 
is 
provided 
for 
homeports for the Cutters for which funds are 
appropriated under paragraphs (4), (5), (6), 
and (7), National Security Cutters, and other 
Fast Response Cutters; and 
(C) $425,000,000 is provided for design, 
planning, engineering, construction of, and pro-
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•HR 1 EH1S 
gram management for enlisted boot camp bar-
racks, multi-use training centers, and other re-
lated facilities; 
(9) $1,300,000,000 for aviation, cutter, shore-
side facility depot maintenance, and C5I service 
maintenance, of which $500,000,000 is provided to 
acquire, procure, or construct a floating dry dock 
under subsection (b) and conduct channel dredging 
necessary to allow Cutters for which funds are ap-
propriated under paragraph (4) and National Secu-
rity Cutters to be maintained and repaired in such 
dry dock; and 
(10) $180,000,000 for equipment and services 
for 
maritime 
domain 
awareness, 
of 
which 
$75,000,000 is provided to contract the services of, 
acquire, or procure autonomous maritime systems. 
(b) REQUIREMENTS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the Commandant may not acquire, pro-
cure, or construct a floating dry dock for the Coast 
Guard Yard with amounts appropriated under sub-
section (a). 
(2) PERMISSIBLE ACQUISITION, PROCUREMENT, 
OR
CONSTRUCTION
METHODS.—Notwithstanding 
paragraph (1) of this subsection and section 1105(a)
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of title 14, United States Code, the Commandant 
may, through September 30, 2030—
(A) provide for an entity other than the 
Coast Guard to contract for the acquisition, 
procurement, or construction of a floating dry 
dock by contract, purchase, or other agreement; 
(B) construct a floating dry dock at the 
Coast Guard Yard; or 
(C) acquire or procure a commercially 
available floating dry dock. 
(3) FLOATING
DRY
DOCK
DEFINED.—In this 
section, the term ‘‘floating dry dock’’ means equip-
ment that is—
(A) documented under chapter 121 of title 
46, United States Code; and 
(B) capable of meeting the lifting and 
maintenance requirements of an Offshore Pa-
trol Cutter or a National Security Cutter. 
(c) LIMITATION.—Not more than 15 percent of the 
amounts provided in paragraph (9) of subsection (a) shall 
be available for design, planning, and engineering of the 
facilities described in such paragraph. 
(d) APPLICATION.—In carrying out acquisitions or 
procurements for which funds are appropriated under sub-
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section (a), sections 1131, 1132, and 1133 of title 14, 
United States Code, shall not apply. 
(e) ENTITY OTHER THAN THE COAST GUARD.—Not-
withstanding section 1105(a) of title 14, United States 
Code, in carrying out acquisition, procurement, or con-
struction of Arctic Security Cutters or domestic ice-
breakers for which funds are appropriated under sub-
section (a)(7), the Commandant may provide for an entity 
other than the Coast Guard to contract for such acquisi-
tion, procurement, or construction. 
(f) COMPLIANCE WITH APPLICABLE REPORTING RE-
QUIREMENTS.—None of the amounts provided in—
(1) this section may be obligated or expended 
during any fiscal year in which the Commandant is 
not compliant with sections 5102 and 5103 (exclud-
ing section 5103(e)) of title 14, United States Code; 
and 
(2) paragraphs (1) and (2) of subsection (a) 
may be obligated or expended until the Commandant 
provides the report required under section 11217 of 
the James M. Inhofe National Defense Authoriza-
tion Act for Fiscal Year 2023 (Public Law 117-263) 
to the Committee on Transportation and Infrastruc-
ture of the House of Representatives and the Com-
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mittee on Commerce, Science, and Transportation of 
the Senate. 
(g) 
NOTIFICATION
REQUIREMENT.—The 
Com-
mandant shall notify the Committee on Transportation 
and Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Transportation 
of the Senate not less than 1 week prior to taking any 
procurement actions impacting estimated costs or 
timelines for acquisitions or procurements funded with 
amounts appropriated under this section. 
(h) EXPENDITURE PLAN.—Not later than 90 days 
after the date of enactment of this Act, the Commandant 
shall submit to the Committee on Transportation and In-
frastructure of the House of Representatives and the Com-
mittee on Commerce, Science, and Transportation of the 
Senate a detailed expenditure plan, including projected 
project timelines for each acquisition and procurement 
funded under this section and a list of project locations 
to be funded under paragraphs (8) and (9) of subsection 
(a). 
(i) EXCEPTION.—If the President authorizes an ex-
ception under section 1151(b) of title 14, United States 
Code, for any Coast Guard vessel, or the hull or super-
structure of such vessel for which funds are appropriated 
under paragraphs (4) through (7) of subsection (a), no
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•HR 1 EH1S 
such funds shall be obligated until the President submits 
to the Committee on Transportation and Infrastructure 
of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate a 
written explanation of the circumstances requiring such 
an exception in the national security interest, including—
(1) a confirmation that there are insufficient 
qualified United States shipyards to meet the na-
tional security interest without such exception; and 
(2) actions taken by the President to enable 
qualified United States shipyards to meet national 
security requirements prior to the issuance of such 
an exception. 
SEC. 100002. VESSEL TONNAGE DUTIES. 
Section 60301 of title 46, United States Code, is 
amended—
(1) in subsection (a) by striking ‘‘, for fiscal 
years 2006 through 2010, and 2 cents per ton, not 
to exceed a total of 10 cents per ton per year, for 
each fiscal year thereafter,’’; and 
(2) in subsection (b) by striking ‘‘, for fiscal 
years 2006 through 2010, and 6 cents per ton, not 
to exceed a total of 30 cents per ton per year, for 
each fiscal year thereafter,’’.
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SEC. 100003. REGISTRATION FEE ON MOTOR VEHICLES. 
(a) IN GENERAL.—Chapter 1 of title 23, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 180. Registration fee on motor vehicles. 
‘‘(a) IN GENERAL.—The Administrator of the Fed-
eral Highway Administration shall impose for each year 
the following registration fee amounts on the owner of a 
vehicle registered for operation by a State motor vehicle 
department: 
‘‘(1) $250 for a covered electric vehicle. 
‘‘(2) $100 for a covered hybrid vehicle. 
‘‘(b) WITHHOLDING
OF FUNDS
FOR NONCOMPLI-
ANCE.—The Administrator shall withhold, from amounts 
required to be apportioned to any State under section 
104(b), an amount equal to 125 percent to the amount 
required to be remitted under subsection (c)(2). The Ad-
ministrator shall withhold the amount on the first day of 
each fiscal year beginning after September 30, 2026, in 
which the State does not meet the requirements of sub-
section (c). 
‘‘(c) COLLECTION AND REMITTANCE OF FEE.—
‘‘(1) COLLECTION OF FEE.—A State motor ve-
hicle department shall—
‘‘(A) incorporate the collection of the fees 
established under subsection (a) into the vehicle
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•HR 1 EH1S 
registration and renewal processes administered 
by such department, so long as such fees are 
imposed for each year in which the fees are re-
quired; or 
‘‘(B) obtain approval from the Adminis-
trator to establish an alternate means of com-
pliance for the collection of such fees that is ac-
ceptable to the Administrator. 
‘‘(2) REMITTANCE OF FEE.—Not later than 30 
days after the last day of each month, a State motor 
vehicle department shall remit to the Administrator 
the balance of the total fee amounts collected under 
this section in the preceding month less the portion 
reserved for administrative expenses under sub-
section (e). 
‘‘(d) FEE ASSESSMENT.—The amounts specified in 
subsection (a) shall be increased on an annual basis to 
account for the rate of inflation each fiscal year in accord-
ance with the Consumer Price Index for All Urban Con-
sumers of the Bureau of Labor Statistics. 
‘‘(e) ADMINISTRATIVE EXPENSES.—In any fiscal 
year in which a State is in compliance with this section, 
such State may retain an amount not to exceed 1 percent 
of the total fees collected under this section for adminis-
trative expenses.
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•HR 1 EH1S 
‘‘(f) APPLICABILITY OF FEES.—The fees imposed 
under paragraphs (1) and (2) of subsection (a) shall ter-
minate on October 1, 2035. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) COVERED ELECTRIC VEHICLE.—The term 
‘covered electric vehicle’ means a covered motor vehi-
cle with an electric motor as the sole means of pro-
pulsion of such vehicle. 
‘‘(2) COVERED
MOTOR
VEHICLE.—The term 
‘covered motor vehicle’ has the meaning given the 
term ‘motor vehicle’ under section 154(a) but ex-
cludes a motor vehicle that is a covered farm vehicle 
or commercial motor vehicle (as such terms are de-
fined in section 390.5 of title 49, Code of Federal 
Regulations). 
‘‘(3) COVERED
HYBRID
VEHICLE.—The term 
‘covered hybrid vehicle’ means a covered motor vehi-
cle propelled by a combination of an electric motor 
and an internal combustion engine or other power 
source and components thereof.’’. 
(b) IMPLEMENTATION OF CERTAIN PROCESSES.—
(1) IMPLEMENTATION.—The Administrator of 
the Federal Highway Administration shall provide 
grants to State motor vehicle departments to imple-
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•HR 1 EH1S 
ment a process to carry out section 180 of title 23, 
United States Code. 
(2) FUNDING.—Out of any money in the Treas-
ury not otherwise appropriated, $104,000,000 is to 
remain available until September 30, 2029, begin-
ning in the first fiscal year following the date of en-
actment of this Act, for grants under paragraph (1). 
(3) ELIGIBLE AMOUNTS.—Each State motor ve-
hicle department may receive not more than 
$2,000,000 under this subsection. 
(c) REGULATIONS.—The Administrator shall issue 
such regulations and guidance as are necessary to—
(1) carry out section 180 of title 23, United 
States Code (as added by this Act); and 
(2) establish a process for the timely and accu-
rate remittance of fees collected under such section 
through an electronic method. 
(d) REPORT.—Not later than 2 years after the date 
of enactment of this Act, the Administrator shall submit 
to the Committee on Transportation and Infrastructure 
of the House of Representatives and the Committee on 
Environment and Public Works of the Senate a report on 
the status of the implementation of section 180 of title 
23, United States Code (as added by this Act).
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(e) CLERICAL AMENDMENT.—The analysis for chap-
ter 1 of title 23, United States Code, is amended by add-
ing at the end the following:
‘‘180. Registration fee on motor vehicles.’’.
SEC. 100004. DEPOSIT OF REGISTRATION FEE ON MOTOR 
VEHICLES. 
Any amounts accrued pursuant to section 180 of title 
23, United States Code (as added by this Act), shall be 
deposited into the Highway Trust Fund. 
SEC. 100005. MOTOR CARRIER DATA. 
(a) PUBLIC CONFIRMATION OF AUTHORIZED MOTOR 
CARRIERS.—There is appropriated $5,000,000 to the Ad-
ministrator of the Federal Motor Carrier Safety Adminis-
tration to establish a public website to present data on 
motor carriers, as such term is defined in section 13102 
of title 49, United States Code, in a manner that indicates 
whether each motor carrier meets or does not meet all Ad-
ministration operating requirements, including by dis-
playing 1 of the following statements for each motor car-
rier: 
(1) ‘‘This motor carrier meets Federal Motor 
Carrier Safety Administration operating require-
ments and is authorized to operate on the nation’s 
roadways.’’. 
(2) ‘‘This motor carrier does not meet Federal 
Motor Carrier Safety Administration operating re-
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•HR 1 EH1S 
quirements and is not authorized to operate on the 
nation’s roadways.’’. 
(b) USAGE FEE.—The Administrator shall assess an 
annual fee of $100 on each person seeking access to the 
website established under subsection (a). In each fiscal 
year through fiscal year 2033, monies collected under this 
subsection shall be—
(1) credited to the account in the Treasury 
from which the Administrator incurs expenses for 
establishing, maintaining, and updating the website 
required to be established under subsection (a); and 
(2) available for establishing, maintaining, and 
updating such website without further appropriation. 
(c) DETERMINATION.—A broker, freight forwarder, 
or household goods freight forwarder, as such terms are 
defined in section 13102 of title 49, United States Code, 
that uses the website established under subsection (a) to 
ensure that a motor carrier engaged by such broker, 
freight forwarder, or household goods freight forwarder 
meets Federal Motor Carrier Safety Administration oper-
ating requirements shall be considered to have taken rea-
sonable and prudent determinations in engaging such 
motor carrier.
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SEC. 100006. IRA RESCISSIONS. 
(a) REPEAL OF FUNDING FOR ALTERNATIVE FUEL 
AND LOW-EMISSION AVIATION TECHNOLOGY PROGRAM.—
The unobligated balances of amounts made available to 
carry out section 40007 of Public Law 117–169 (49 
U.S.C. 44504 note) (as in effect on the day before the 
date of enactment of this Act) are permanently rescinded. 
(b) REPEAL OF FUNDING FOR NEIGHBORHOOD AC-
CESS AND EQUITY GRANT PROGRAM.—The unobligated 
balances of amounts made available to carry out section 
177 of title 23, United States Code, (as in effect on the 
day before the date of enactment of this Act) are perma-
nently rescinded. 
(c) REPEAL OF FUNDING FOR FEDERAL BUILDING 
ASSISTANCE.—The unobligated balances of amounts made 
available to carry out section 60502 of Public Law 117–
169 (136 Stat. 2083) (as in effect on the day before the 
date of enactment of this Act) are permanently rescinded. 
(d) REPEAL OF FUNDING FOR USE OF LOW-CARBON 
MATERIALS FOR FEDERAL BUILDING ASSISTANCE.— The 
unobligated balances of amounts made available to carry 
out section 60503 of Public Law 117–169 (136 Stat. 
2083) (as in effect on the day before the date of enactment 
of this Act) are permanently rescinded. 
(e) REPEAL OF FUNDING FOR GENERAL SERVICES 
ADMINISTRATION EMERGING TECHNOLOGIES.—The un-
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•HR 1 EH1S 
obligated balances of amounts made available to carry out 
section 60504 of Public Law 117–169 (136 Stat. 2083) 
(as in effect on the day before the date of enactment of 
this Act) are permanently rescinded. 
(f) REPEAL OF ENVIRONMENTAL REVIEW IMPLE-
MENTATION
FUNDS.—The 
unobligated 
balances 
of 
amounts made available to carry out section 178 of title 
23, United States Code, (as in effect on the day before 
the date of enactment of this Act) are permanently re-
scinded. 
(g) REPEAL OF FUNDING FOR LOW-CARBON TRANS-
PORTATION MATERIALS GRANTS.— The unobligated bal-
ances of amounts made available to carry out section 179 
of title 23, United States Code, (as in effect on the day 
before the date of enactment of this Act) are permanently 
rescinded. 
SEC. 100007. AIR TRAFFIC CONTROL STAFFING AND MOD-
ERNIZATION. 
(a) IN GENERAL.—For the purpose of the acquisi-
tion, construction, sustainment, improvement, and oper-
ation of facilities and equipment necessary to improve or 
maintain aviation safety, and for personnel expenses re-
lated to such facilities and equipment, in addition to 
amounts otherwise made available, there is appropriated 
to the Administrator of the Federal Aviation Administra-
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•HR 1 EH1S 
tion for fiscal year 2025, out of any money in the Treasury 
not otherwise appropriated, to remain available until Sep-
tember 30, 2029—
(1) $2,160,000,000 for air traffic control tower 
and terminal radar approach control facility replace-
ment, of which not less than $240,000,000 shall be 
available for Contract Tower Program air traffic 
control tower replacement and airport sponsor-
owned air traffic control tower replacement; 
(2) $3,000,000,000 for radar systems replace-
ment; 
(3) $4,750,000,000 for telecommunications in-
frastructure and systems replacement; 
(4) $500,000,000 for runway safety projects, 
airport surface surveillance projects, and to carry 
out section 347 of the FAA Reauthorization Act of 
2024; 
(5) $550,000,000 for unstaffed infrastructure 
sustainment and replacement; 
(6) $300,000,000 to carry out section 619 of 
the FAA Reauthorization Act of 2024; 
(7) $260,000,000 to carry out section 44745 of 
title 49, United States Code; and
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•HR 1 EH1S 
(8) $1,000,000,000 for air traffic controller re-
cruitment, retention, training, and advanced training 
technologies. 
(b) QUARTERLY REPORTING.—Not later than 180 
days after the date of enactment of this Act, and every 
90 days thereafter, the Administrator shall submit to Con-
gress a report that describes any expenditures under this 
section. 
SEC. 100008. JOHN F. KENNEDY CENTER FOR THE PER-
FORMING 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, restora-
tion, 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.
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TITLE XI—COMMITTEE ON WAYS 
AND MEANS, ‘‘THE ONE, BIG, 
BEAUTIFUL BILL’’
SEC. 110000. REFERENCES TO THE INTERNAL REVENUE 
CODE OF 1986, ETC. 
(a) REFERENCES.—Except as otherwise expressly 
provided, whenever in this title, an amendment or repeal 
is expressed in terms of an amendment to, or repeal of, 
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the In-
ternal Revenue Code of 1986. 
(b) CERTAIN RULES REGARDING EFFECT OF RATE 
CHANGES NOT APPLICABLE.—Section 15 of the Internal 
Revenue Code of 1986 shall not apply to any change in 
rate of tax by reason of any provision of, or amendment 
made by, this title. 
Subtitle A—Make American 
Families and Workers Thrive Again 
PART 1—PERMANENTLY PREVENTING TAX HIKES 
ON AMERICAN FAMILIES AND WORKERS 
SEC. 110001. EXTENSION OF MODIFICATION OF RATES. 
(a) IN GENERAL.—Section 1(j) is amended—
(1) in paragraph (1), by striking ‘‘, and before 
January 1, 2026’’, and
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•HR 1 EH1S 
(2) by striking ‘‘2018 THROUGH 2025’’ in the 
heading and inserting ‘‘BEGINNING AFTER 2017’’. 
(b) INFLATION ADJUSTMENT.—Section 1(j)(3)(B)(i) 
is amended by inserting ‘‘in the case of any taxable year 
beginning after December 31, 2025, solely for purposes 
of determining the dollar amounts at which the 35-percent 
rate bracket ends and the 37-percent rate bracket begins,’’ 
before ‘‘subsection (f)(3)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110002. EXTENSION OF INCREASED STANDARD DEDUC-
TION AND TEMPORARY ENHANCEMENT. 
(a) IN GENERAL.—Section 63(c)(7) is amended—
(1) by striking ‘‘, and before January 1, 2026’’ 
in the matter preceding subparagraph (A), and 
(2) by striking ‘‘2018 THROUGH 2025’’ in the 
heading and inserting ‘‘BEGINNING AFTER 2017’’. 
(b) TEMPORARY ADDITIONAL INCREASE IN STAND-
ARD DEDUCTION.—Section 63(c)(7) is amended by adding 
at the end the following new subparagraph: 
‘‘(C) TEMPORARY
ADDITIONAL
INCREASE 
IN STANDARD DEDUCTION.—In the case of any 
taxable year beginning after December 31, 
2024, and before January 1, 2029—
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•HR 1 EH1S 
‘‘(i) the dollar amount otherwise in ef-
fect under paragraph (2)(B) shall be in-
creased by $1,500, and 
‘‘(ii) the dollar amount otherwise in 
effect under paragraph (2)(C) shall be in-
creased by $1,000.’’. 
(c) RECALCULATION OF INFLATION ADJUSTMENT.—
Section 63(c)(7)(B)(ii)(II) is amended by striking ‘‘, de-
termined by substituting ‘2017’ for ‘2016’ in subpara-
graph (A)(ii) thereof’’. 
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by 
subsection (a) shall apply to taxable years beginning 
after December 31, 2025. 
(2) TEMPORARY
ADDITIONAL
INCREASE
IN 
STANDARD DEDUCTION.—The amendment made by 
subsection (b) shall apply to taxable years beginning 
after December 31, 2024. 
SEC. 110003. TERMINATION OF DEDUCTION FOR PERSONAL 
EXEMPTIONS. 
(a) IN GENERAL.—Section 151(d)(5) is amended—
(1) by striking ‘‘and before January 1, 2026’’, 
and 
(2) by striking ‘‘2018 THROUGH 2025’’ in the 
heading and inserting ‘‘BEGINNING AFTER 2017’’.
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110004. EXTENSION OF INCREASED CHILD TAX CREDIT 
AND TEMPORARY ENHANCEMENT. 
(a) EXTENSION OF EXPANDED CHILD TAX CRED-
IT.—Section 24(h) is amended—
(1) in paragraph (1), by striking ‘‘and before 
January 1, 2026,’’, and 
(2) by striking ‘‘2018 THROUGH 2025’’ in the 
heading and inserting ‘‘BEGINNING AFTER 2017’’. 
(b) INCREASE
IN CHILD TAX CREDIT.—Section 
24(h)(2) is amended to read as follows: 
‘‘(2) CREDIT AMOUNT.—Subsection (a) shall be 
applied by substituting—
‘‘(A) in the case of taxable years beginning 
after December 31, 2024, and before December 
31, 2028, ‘$2,500’ for ‘$1,000’, or 
‘‘(B) in the case of any subsequent taxable 
year, ‘$2,000’ for ‘$1,000’.’’. 
(c) SOCIAL SECURITY NUMBER REQUIRED.—Section 
24(h)(7) is amended to read as follows: 
‘‘(7) SOCIAL SECURITY NUMBER REQUIRED.—
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under this section to a taxpayer with re-
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•HR 1 EH1S 
spect to any qualifying child unless the taxpayer 
includes on the return of tax for the taxable 
year—
‘‘(i) such individual’s social security 
number, 
‘‘(ii) the social security number of 
such qualifying child, and 
‘‘(iii) if the individual is married, the 
social security number of such individual’s 
spouse. 
‘‘(B) SOCIAL
SECURITY
NUMBER.—For 
purposes of this paragraph, the term ‘social se-
curity 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 por-
tion of subclause (III) that relates to sub-
clause (I)) of section 205(c)(2)(B)(i) of the 
Social Security Act, and 
‘‘(ii) before the due date for such re-
turn.
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‘‘(C) MARRIED INDIVIDUALS.—Rules simi-
lar to the rules of section 32(d) shall apply to 
this section.’’. 
(d) INFLATION ADJUSTMENTS.—
(1) IN GENERAL.—Section 24(i) is amended to 
read as follows: 
‘‘(i) INFLATION ADJUSTMENTS.—
‘‘(1) MAXIMUM
AMOUNT
OF
REFUNDABLE 
CREDIT.—In the case of a taxable year beginning 
after 2024, the $1,400 amount in subsection (h)(5) 
shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘2017’ for ‘2016’ in sub-
paragraph (A)(ii) thereof. 
‘‘(2) SPECIAL
RULE
FOR
ADJUSTMENT
OF 
CREDIT AMOUNT.—In the case of a taxable year be-
ginning after 2028, the $2,000 amount in subsection 
(h)(2)(B), shall be increased by an amount equal 
to—
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar
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•HR 1 EH1S 
year in which the taxable year begins, deter-
mined by substituting ‘2024’ for ‘2016’ in sub-
paragraph (A)(ii) thereof. 
‘‘(3) ROUNDING.—If any increase under this 
subsection is not a multiple of $100, such increase 
shall be rounded to the next lowest multiple of 
$100.’’. 
(e) CONFORMING AMENDMENT.—Section 24(h)(5) is 
amended to read as follows: 
‘‘(5) MAXIMUM
AMOUNT
OF
REFUNDABLE 
CREDIT.—The amount determined under subsection 
(d)(1)(A) with respect to any qualifying child shall 
not exceed $1,400, and such subsection shall be ap-
plied without regard to paragraph (4) of this sub-
section.’’. 
(f) TREATMENT OF CERTAIN BENEFITS OF MEM-
BERS OF RELIGIOUS AND APOSTOLIC ASSOCIATIONS AS 
EARNED INCOME.—Section 24(d)(1) is amended by add-
ing at the end the following: ‘‘For purposes of subpara-
graph (B), any amount treated as a dividend received 
under the last sentence of section 501(d) shall be treated 
as earned income which is taken into account in com-
puting taxable income for the taxable year.’’. 
(g) OMISSION OF CORRECT SOCIAL SECURITY NUM-
BER
TREATED
AS
MATHEMATICAL
OR
CLERICAL
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ERROR.—Section 6213(g)(2)(I) is amended by striking 
‘‘section 24(e)’’ and inserting ‘‘section 24’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 110005. EXTENSION OF DEDUCTION FOR QUALIFIED 
BUSINESS INCOME AND PERMANENT EN-
HANCEMENT. 
(a) MADE PERMANENT.—Section 199A is amended 
by striking subsection (i). 
(b) INCREASE IN DEDUCTION.—Subsections (a)(2), 
(b)(1)(B), and (b)(2)(A) of section 199A are each amend-
ed by striking ‘‘20 percent’’ and inserting ‘‘23 percent’’. 
(c) MODIFICATION OF LIMITATIONS BASED ON TAX-
ABLE INCOME.—
(1) 
IN
GENERAL.—Section 
199A(b)(3) 
is 
amended to read as follows: 
‘‘(3) MODIFICATION
OF
DETERMINATION
OF 
COMBINED QUALIFIED BUSINESS INCOME AMOUNT 
BASED ON TAXABLE INCOME.—
‘‘(A) EXCEPTION FROM LIMITATIONS.—In 
the case of any taxpayer whose taxable income 
for the taxable year does not exceed the thresh-
old amount—
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•HR 1 EH1S 
‘‘(i) paragraph (2) shall be applied 
without regard to subparagraph (B), and 
‘‘(ii) a specified service trade or busi-
ness shall not fail to be treated as a quali-
fied trade or business solely by reason of 
subsection (d)(1)(A). 
‘‘(B) PHASE-IN OF LIMITATIONS.—In the 
case of any taxpayer whose taxable income for 
the taxable year exceeds the threshold amount, 
the sum described in paragraph (1)(A) (deter-
mined without regard to this subparagraph) 
shall instead be an amount (if greater) equal to 
the excess (if any) of—
‘‘(i) the sum described in paragraph 
(1)(A) (determined by applying the rules of 
clauses (i) and (ii) of subparagraph (A)), 
over 
‘‘(ii) the limitation phase-in amount. 
‘‘(C) LIMITATION
PHASE-IN
AMOUNT.—
For purposes of subparagraph (B), the limita-
tion phase-in amount shall be an amount equal 
to 75 percent of the excess (if any) of—
‘‘(i) the taxable income of the tax-
payer for the taxable year, over 
‘‘(ii) the threshold amount.’’.
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•HR 1 EH1S 
(2) 
CONFORMING
AMENDMENT.—Section 
199A(d) is amended by striking paragraph (3). 
(d) DEDUCTION FOR QUALIFIED BUSINESS INCOME 
TO APPLY TO CERTAIN INTEREST DIVIDENDS OF QUALI-
FIED BUSINESS DEVELOPMENT COMPANIES.—
(1) IN GENERAL.—Subsections (b)(1)(B) and 
(c)(1) of section 199A are each amended by insert-
ing ‘‘, qualified BDC interest dividends,’’ after 
‘‘qualified REIT dividends’’. 
(2) QUALIFIED BDC INTEREST DIVIDEND DE-
FINED.—Section 199A(e) is amended by adding at 
the end the following new paragraph: 
‘‘(5) QUALIFIED BDC INTEREST DIVIDEND.—
‘‘(A) IN
GENERAL.—The term ‘qualified 
BDC interest dividend’ means any dividend 
from an electing business development company 
received during the taxable year which is attrib-
utable to net interest income of such company 
which is properly allocable to a qualified trade 
or business of such company. 
‘‘(B) ELECTING BUSINESS DEVELOPMENT 
COMPANY.—For purposes of this paragraph, the 
term ‘electing business development company’ 
means a business development company (as de-
fined in section 2(a) of the Investment Com-
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•HR 1 EH1S 
pany Act of 1940) which has an election in ef-
fect under section 851 to be treated as a regu-
lated investment company.’’. 
(e) MODIFIED INFLATION ADJUSTMENT.—Section 
199A(e)(2)(B) is amended—
(1) by striking ‘‘2018’’ and inserting ‘‘2025’’, 
and 
(2) in clause (ii), by striking ‘‘, determined by 
substituting ‘calendar year 2017’ for ‘calendar year 
2016’ in subparagraph (A)(ii) thereof’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110006. EXTENSION OF INCREASED ESTATE AND GIFT 
TAX EXEMPTION AMOUNTS AND PERMANENT 
ENHANCEMENT. 
(a) IN GENERAL.—Section 2010(c)(3) is amended—
(1) 
in 
subparagraph 
(A) 
by 
striking 
‘‘$5,000,000’’ and inserting ‘‘$15,000,000’’, 
(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by 
striking ‘‘2011’’ and inserting ‘‘2026’’, and 
(B) in clause (ii), by striking ‘‘calendar 
year 2010’’ and inserting ‘‘calendar year 
2025’’, and
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•HR 1 EH1S 
(3) by striking subparagraph (C). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110007. EXTENSION OF INCREASED ALTERNATIVE MIN-
IMUM 
TAX 
EXEMPTION 
AND 
PHASE-OUT 
THRESHOLDS. 
(a) IN GENERAL.—Section 55(d)(4) is amended—
(1) in subparagraph (A), by striking ‘‘, and be-
fore 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’’ in clause (i) and insert-
ing ‘‘2026’’, and 
(2) by striking ‘‘2017’’ in clause (i)(II) and in-
serting ‘‘2025’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110008. EXTENSION OF LIMITATION ON DEDUCTION 
FOR QUALIFIED RESIDENCE INTEREST. 
(a) IN GENERAL.—Section 163(h)(3)(F) is amend-
ed—
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•HR 1 EH1S 
(1) in clause (i), by striking ‘‘, and before Jan-
uary 1, 2026’’, 
(2) by striking clause (ii) and redesignating 
clauses (iii) and (iv) as clauses (ii) and (iii), respec-
tively, and 
(3) by striking ‘‘2018 THROUGH 2025’’ in the 
heading and inserting ‘‘BEGINNING AFTER 2017’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110009. EXTENSION OF LIMITATION ON CASUALTY 
LOSS DEDUCTION. 
(a) IN GENERAL.—Section 165(h)(5) is amended—
(1) in subparagraph (A), by striking ‘‘and be-
fore January 1, 2026,’’, and 
(2) by striking ‘‘2018 THROUGH 2025’’ in the 
heading and inserting ‘‘BEGINNING AFTER 2017’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110010. TERMINATION OF MISCELLANEOUS ITEMIZED 
DEDUCTION. 
(a) IN GENERAL.—Section 67(g) is amended—
(1) by striking ‘‘, and before January 1, 2026’’, 
and
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(2) by striking ‘‘2018 THROUGH 2025’’ in the 
heading and inserting ‘‘BEGINNING AFTER 2017’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110011. 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 taxpayer’s itemized deductions shall be re-
duced by the sum of—
‘‘(1) 5⁄37 of the lesser of—
‘‘(A) the amount of the deduction allowable 
to the taxpayer under section 164 for such tax-
able year (determined without regard to this 
section), or 
‘‘(B) the excess (if any) of—
‘‘(i) the taxpayer’s taxable income for 
such taxable year (determined without re-
gard to this section and increased by the 
amount of the taxpayer’s itemized deduc-
tions), over
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•HR 1 EH1S 
‘‘(ii) the dollar amount at which the 
37 percent rate bracket under section 1 be-
gins with respect to the taxpayer, plus 
‘‘(2) 2⁄37 of the lesser of—
‘‘(A) so much (if any) of the taxpayer’s 
itemized deductions as exceed the amount de-
scribed in paragraph (1)(A), or 
‘‘(B) the excess (if any) of—
‘‘(i) the amount described in subpara-
graph (1)(B)(i), over 
‘‘(ii) the sum of the amounts de-
scribed 
in 
paragraphs 
(1)(A) 
and 
(1)(B)(ii). 
‘‘(b) ITEMIZED DEDUCTIONS.—For purposes of sub-
section (a), any reference to the taxpayer’s itemized de-
ductions shall be treated as reference to such deductions 
determined without regard to this section. 
‘‘(c) COORDINATION WITH OTHER LIMITATIONS.—
This section shall be applied after the application of any 
other limitation on the allowance of any itemized deduc-
tion.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2025.
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SEC. 110012. TERMINATION OF QUALIFIED BICYCLE COM-
MUTING REIMBURSEMENT EXCLUSION. 
(a) IN GENERAL.—Section 132(f)(8) is amended by 
striking ‘‘, and before January 1, 2026’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110013. EXTENSION OF LIMITATION ON EXCLUSION 
AND DEDUCTION FOR MOVING EXPENSES. 
(a) TERMINATION OF DEDUCTION.—Section 217(k) 
is amended—
(1) by striking ‘‘, and before January 1, 2026’’, 
and 
(2) by striking ‘‘2018 THROUGH 2025’’ in the 
heading and inserting ‘‘BEGINNING AFTER 2017’’. 
(b) TERMINATION
OF REIMBURSEMENT.—Section 
132(g)(2) is amended—
(1) by striking ‘‘, and before January 1, 2026’’, 
and 
(2) by striking ‘‘2018 THROUGH 2025’’ in the 
heading and inserting ‘‘BEGINNING AFTER 2017’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025.
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SEC. 110014. EXTENSION OF LIMITATION ON WAGERING 
LOSSES. 
(a) IN GENERAL.—Section 165(d) is amended by 
striking ‘‘and before January 1, 2026,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110015. EXTENSION OF INCREASED LIMITATION ON 
CONTRIBUTIONS TO ABLE ACCOUNTS AND 
PERMANENT ENHANCEMENT. 
(a) IN GENERAL.—Section 529A(b)(2)(B) is amend-
ed—
(1) in clause (i), by inserting ‘‘(determined by 
substituting ‘1996’ for ‘1997’ in paragraph (2)(B) 
thereof)’’ after ‘‘section 2503(b)’’, and 
(2) in clause (ii), by striking ‘‘before January 
1, 2026’’. 
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—Except as otherwise pro-
vided 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.
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•HR 1 EH1S 
SEC. 110016. EXTENSION OF SAVERS CREDIT ALLOWED FOR 
ABLE CONTRIBUTIONS. 
(a) IN GENERAL.—Section 25B(d)(1) is amended to 
read as follows: 
‘‘(1) IN GENERAL.—The term ‘qualified retire-
ment 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 begin-
ning before January 1, 2027—
‘‘(i) the amount of the qualified retire-
ment contributions (as defined in section 
219(e)) made by the eligible individual, 
‘‘(ii) the amount of—
‘‘(I) any elective deferrals (as de-
fined in section 402(g)(3)) of such in-
dividual, and 
‘‘(II) any elective deferral of com-
pensation by such individual under an 
eligible deferred compensation plan 
(as defined in section 457(b)) of an
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•HR 1 EH1S 
eligible employer described in section 
457(e)(1)(A), and 
‘‘(iii) the amount of voluntary em-
ployee contributions by such individual to 
any qualified retirement plan (as defined 
in section 4974(c)).’’. 
(b) COORDINATION WITH SECURE 2.0 ACT
OF 
2022 AMENDMENT.—Paragraph (1) of section 103(e) of 
the SECURE 2.0 Act of 2022 is repealed, and the Inter-
nal Revenue Code of 1986 shall be applied and adminis-
tered as though such paragraph were never enacted. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2025. 
SEC. 110017. EXTENSION OF ROLLOVERS FROM QUALIFIED 
TUITION PROGRAMS TO ABLE ACCOUNTS 
PERMITTED. 
(a) IN GENERAL.—Section 529(c)(3)(C)(i)(III) is 
amended by striking ‘‘before January 1, 2026,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2025.
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SEC. 110018. EXTENSION OF TREATMENT OF CERTAIN INDI-
VIDUALS PERFORMING SERVICES IN THE 
SINAI PENINSULA AND ENHANCEMENT TO IN-
CLUDE 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 IN-
CLUDED
AS
HAZARDOUS
DUTY
AREAS.—Section 
11026(b) of Public Law 115–97 is amended to read as 
follows: 
‘‘(b) QUALIFIED HAZARDOUS DUTY AREA.—For 
purposes of this section, the term ’qualified hazardous 
duty area’ means—
‘‘(1) the Sinai Peninsula of Egypt, if as of De-
cember, 22, 2017, any member of the Armed Forces 
of the United States is entitled to special pay under 
section 310 of title 37, United States Code (relating 
to special pay; duty subject to hostile fire or immi-
nent danger), for services performed in such loca-
tion, and 
‘‘(2) Kenya, Mali, Burkina Faso, and Chad if, 
as of the date of the enactment of this paragraph, 
any member of the Armed Forces of the United 
States is entitled to special pay under such section, 
for services performed in such location.
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•HR 1 EH1S 
Such term includes any such location only during the pe-
riod such entitlement is in effect with respect to such loca-
tion.’’. 
(c) CONFORMING AMENDMENT.—Section 11026 of 
Public Law 115–97 is amended by striking subsections (c) 
and (d). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2026. 
SEC. 110019. EXTENSION OF EXCLUSION FROM GROSS IN-
COME 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 indi-
vidual, 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
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•HR 1 EH1S 
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 de-
scribed in this subparagraph if such loan is—
‘‘(i) a student loan (as defined in 
paragraph (2)), or 
‘‘(ii) a private education loan (as de-
fined in section 140(a) of the Consumer 
Credit Protection Act (15 U.S.C. 1650(a)). 
‘‘(C) SOCIAL SECURITY NUMBER REQUIRE-
MENT.—
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall not apply with respect to any dis-
charge during any taxable year unless the 
taxpayer includes on the return of tax for 
such taxable year—
‘‘(I) the taxpayer’s social security 
number, and
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•HR 1 EH1S 
‘‘(II) if the taxpayer is married, 
the social security number of such 
taxpayers’s spouse. 
‘‘(ii) SOCIAL
SECURITY
NUMBER.—
For purposes of this subparagraph, the 
term ‘social security number’ has the 
meaning given such term in section 
24(h)(7). 
‘‘(iii) MARRIED INDIVIDUALS.—Rules 
similar to the rules of section 32(d) shall 
apply to this subparagraph.’’. 
(b) OMISSION OF CORRECT SOCIAL SECURITY NUM-
BER
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 fol-
lowing new subparagraph: 
‘‘(W) an omission of a correct social secu-
rity 
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.
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PART 2—ADDITIONAL TAX RELIEF FOR 
AMERICAN FAMILIES AND WORKERS 
SEC. 110101. NO TAX ON TIPS. 
(a) DEDUCTION ALLOWED.—Part VII of subchapter 
B of chapter 1 is amended by redesignating section 224 
as section 225 and by inserting after section 223 the fol-
lowing new section: 
‘‘SEC. 224. QUALIFIED TIPS. 
‘‘(a) IN GENERAL.—There shall be allowed as a de-
duction an amount equal to the qualified tips received dur-
ing the taxable year that are included on statements fur-
nished to the individual pursuant to section 6041(d)(3), 
6041A(e)(3), 6050W(f)(2), 6051(a)(18), or reported by 
the taxpayer on Form 4137 (or successor). 
‘‘(b) TIPS RECEIVED IN COURSE OF TRADE OR BUSI-
NESS.—In the case of qualified tips received by an indi-
vidual during any taxable year in the course of any trade 
or business of such individual, such qualified tips shall be 
taken into account under subsection (a) only to the extent 
that the gross receipts of the taxpayer from such trade 
or business for such taxable year (including such qualified 
tips) exceeds the sum of—
‘‘(1) cost of goods sold that are allocable to 
such receipts, plus
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‘‘(2) other expenses, losses, or deductions (other 
than the deduction allowed under this section), 
which are properly allocable to such receipts. 
‘‘(c) QUALIFIED TIPS.—For purposes of this sec-
tion—
‘‘(1) IN
GENERAL.—The term ‘qualified tip’ 
means any cash tip received by an individual in an 
occupation which traditionally and customarily re-
ceived tips on or before December 31, 2024, as pro-
vided by the Secretary. 
‘‘(2) EXCLUSIONS.—Such term shall not in-
clude any amount received by an individual unless—
‘‘(A) such amount is paid voluntarily with-
out any consequence in the event of non-
payment, 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 de-
fined in section 199A(d)(2)), 
‘‘(C) such individual does not receive 
earned income (within the meaning of section 
32) in excess of the dollar amount in effect 
under section 414(q)(1)(B)(i) for the calendar 
year in which the taxable year begins, and
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‘‘(D) such other requirements as may be 
established by the Secretary in regulations or 
other guidance are satisfied. 
‘‘(d) SOCIAL SECURITY NUMBER REQUIRED.—
‘‘(1) IN GENERAL.—No deduction shall be al-
lowed under this section unless the taxpayer includes 
on the return of tax for the taxable year—
‘‘(A) such individual’s social security num-
ber, and 
‘‘(B) if the individual is married, the social 
security number of such individual’s spouse. 
‘‘(2) MARRIED INDIVIDUALS.—Rules similar to 
the rules of section 32(d) shall apply to this section. 
‘‘(3) SOCIAL
SECURITY
NUMBER
DEFINED.—
For purposes of paragraph (1), the term ‘social se-
curity number’ shall have the meaning given such 
term in section 24(h)(7). 
‘‘(e) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
to prevent reclassification of income as qualified tips, in-
cluding regulations or other guidance to prevent abuse of 
the deduction allowed by this section. 
‘‘(f) TERMINATION.—No deduction shall be allowed 
under this section for any taxable year beginning after De-
cember 31, 2028.’’.
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(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 para-
graph (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 NUM-
BER
TREATED
AS
MATHEMATICAL
OR
CLERICAL 
ERROR.—Section 6213(g)(2), as amended by the pre-
ceding provisions of this Act, is amended by striking 
‘‘and’’ at the end of subparagraph (V), by striking the 
period at the end of subparagraph (W) and inserting ‘‘, 
and’’, and by inserting after subparagraph (W) the fol-
lowing new subparagraph: 
‘‘(X) an omission of a correct social secu-
rity number required under section 224(d) (re-
lating to deduction for qualified tips).’’. 
(d) EXCLUSION FROM QUALIFIED BUSINESS IN-
COME.—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.’’.
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(e) EXTENSION OF TIP CREDIT TO BEAUTY SERVICE 
BUSINESS.—
(1) IN GENERAL.—Section 45B(b)(2) is amend-
ed 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 cus-
tomers or clients in connection with the following 
services: 
‘‘(A) The providing, delivering, or serving 
of food or beverages for consumption, if the tip-
ping 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
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(B) by inserting ‘‘, and in the case of food 
or beverage establishments, as in effect on Jan-
uary 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
SEC-
RETARY.— Section 6041(a) is amended by in-
serting ‘‘(including a separate accounting of 
any such amounts properly designated as tips 
and whether such tips are received in an occu-
pation described in section 224(c)(1))’’ after 
‘‘such gains, profits, and income’’. 
(B) STATEMENT FURNISHED TO PAYEE.—
Section 6041(d) is amended by striking ‘‘and’’ 
at the end of paragraph (1), by striking the pe-
riod 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-employ-
ees, the portion of payments that have been properly 
designated as tips and whether such tips are re-
ceived in an occupation described in section 
224(c)(1).’’.
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(2) RETURNS FOR PAYMENTS MADE FOR SERV-
ICES AND DIRECT SALES.—
(A) STATEMENT
FURNISHED
TO
SEC-
RETARY.— Section 6041A(a) is amended by in-
serting ‘‘(including a separate accounting of 
any such amounts properly designated as tips 
and whether such tips are received in an occu-
pation described in section 224(c)(1))’’ after 
‘‘amount of such payments’’. 
(B) STATEMENT FURNISHED TO PAYEE.—
Section 6041A(e) is amended by striking ‘‘and’’ 
at the end of paragraph (1), by striking the pe-
riod at the end of paragraph (2) and inserting 
‘‘, and’’, and by inserting after paragraph (2) 
the following new paragraph: 
‘‘(3) the portion of payments that have been 
properly designated as tips and whether such tips 
are received in an occupation described in section 
224(c)(1).’’. 
(3) RETURNS RELATING TO THIRD PARTY SET-
TLEMENT ORGANIZATIONS.—
(A) STATEMENT
FURNISHED
TO
SEC-
RETARY.—Section 6050W(a) is amended by 
striking ‘‘and’’ at the end of paragraph (1), by 
striking the period at the end of paragraph (2)
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and inserting ‘‘and’’, and by adding at the end 
the following new paragraph: 
‘‘(3) in the case of a third party settlement or-
ganization, the portion of reportable payment trans-
actions that have been properly designated by payors 
as tips and whether such tips are received in an oc-
cupation described in section 224(c)(1).’’. 
(B) STATEMENT FURNISHED TO PAYEE.—
Section 6050W(f)(2) is amended by inserting 
‘‘(including a separate accounting of any such 
amounts that have been properly designated by 
payors as tips and whether such tips are re-
ceived in an occupation described in section 
224(c)(1))’’ after ‘‘reportable payment trans-
actions’’. 
(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 insert-
ing after paragraph (17) the following new para-
graph: 
‘‘(18) the total amount of tips reported by the 
employee under section 6053(a).’’. 
(g) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter B of chapter 1 is amended by
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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 TRADITION-
ALLY RECEIVING TIPS.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of the 
Treasury (or the Secretary’s delegate) shall publish a list 
of occupations which traditionally and customarily re-
ceived tips on or before December 31, 2024, for purposes 
of section 224(c)(1) (as added by subsection (a)). 
(i) WITHHOLDING.—The Secretary of the Treasury 
(or the Secretary’s delegate) shall modify the tables and 
procedures prescribed under section 3402(a) to take into 
account the deduction allowed under section 224 (as added 
by this Act). 
(j) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 110102. NO TAX ON OVERTIME. 
(a) DEDUCTION ALLOWED.—Part VII of subchapter 
B of chapter 1, as amended by the preceding provisions 
of this Act, is amended by redesignating section 225 as 
section 226 and by inserting after section 224 the fol-
lowing new section:
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‘‘SEC. 225. QUALIFIED OVERTIME COMPENSATION. 
‘‘(a) IN GENERAL.—There shall be allowed as a de-
duction an amount equal to the qualified overtime com-
pensation received during the taxable year. 
‘‘(b) QUALIFIED OVERTIME COMPENSATION.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified overtime compensation’ 
means overtime compensation paid to an individual 
required under section 7 of the Fair Labor Stand-
ards 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 in-
clude—
‘‘(A) any qualified tip (as defined in sec-
tion 224(c)), or 
‘‘(B) any amount received by an individual 
during a taxable year if such individual is a 
highly compensated employee (as defined in sec-
tion 414(q)(1)) of any employer for the cal-
endar year in which the taxable year begins, or 
receives earned income in excess of the dollar 
amount in effect under section 414(q)(1)(B)(i) 
for such calendar year. 
‘‘(c) SOCIAL SECURITY NUMBER REQUIRED.—
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‘‘(1) IN GENERAL.—No deduction shall be al-
lowed under this section unless the taxpayer includes 
on the return of tax for the taxable year—
‘‘(A) such individual’s social security num-
ber, and 
‘‘(B) if the individual is married, the social 
security number of such individual’s spouse. 
‘‘(2) MARRIED INDIVIDUALS.—Rules similar to 
the rules of section 32(d) shall apply to this section. 
‘‘(3) SOCIAL
SECURITY
NUMBER
DEFINED.—
For purposes of paragraph (1), the term ‘social se-
curity number’ shall have the meaning given such 
term in section 24(h)(7). 
‘‘(d) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or ap-
propriate to carry out the purposes of this section. 
‘‘(e) TERMINATION.—No deduction shall be allowed 
under this section for any taxable year beginning after De-
cember 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 para-
graph (4), by striking the period at the end of paragraph 
(5) and inserting ‘‘and’’, and by adding at the end the 
following new paragraph:
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‘‘(6) the deduction provided in section 225.’’. 
(c) REQUIREMENT
TO INCLUDE OVERTIME COM-
PENSATION 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 para-
graph: 
‘‘(19) the total amount of qualified overtime 
compensation (as defined in section 225(b)).’’. 
(d) OMISSION OF CORRECT SOCIAL SECURITY NUM-
BER
TREATED
AS
MATHEMATICAL
OR
CLERICAL 
ERROR.—Section 6213(g)(2), as amended by the pre-
ceding 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 fol-
lowing new subparagraph: 
‘‘(Y) an omission of a correct social secu-
rity number required under section 225(c) (re-
lating 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 re-
designating the item relating to section 225 as an item
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relating to section 226 and by inserting after the item re-
lating to section 224 the following new item:
‘‘Sec. 225. Qualified overtime compensation.’’.
(f) WITHHOLDING.—The Secretary of the Treasury 
(or the Secretary’s delegate) shall modify the tables and 
procedures prescribed under section 3402(a) to take into 
account the deduction allowed under section 225 (as added 
by this Act). 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 110103. ENHANCED DEDUCTION FOR SENIORS. 
(a) IN GENERAL.—Section 63(f) is amended by add-
ing at the end the following new paragraph: 
‘‘(5) BONUS
ADDITIONAL
AMOUNT
FOR
SEN-
IORS.—
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning after December 31, 
2024, and before January 1, 2029, the dollar 
amount in effect under paragraph (1) shall be 
increased by $4,000. 
‘‘(B) LIMITATION
BASED
ON
MODIFIED 
ADJUSTED GROSS INCOME.—In the case of any 
taxpayer for any taxable year, the $4,000 
amount in subparagraph(A) shall be reduced 
(but not below zero) by 4 percent of so much
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of the taxpayer’s modified adjusted gross in-
come as exceeds $75,000 ($150,000 in the case 
of a joint return). 
‘‘(C) MODIFIED
ADJUSTED
GROSS
IN-
COME.—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 ex-
cluded from gross income under section 911, 
931, or 933. 
‘‘(D) SOCIAL
SECURITY
NUMBER
RE-
QUIRED.—
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall not apply unless the taxpayer in-
cludes on the return of tax for the taxable 
year—
‘‘(I) such individual’s social secu-
rity number, and 
‘‘(II) if the individual is married, 
the social security number of such in-
dividual’s spouse. 
‘‘(ii) MARRIED
INDIVIDUALS.—Rules 
similar to the rules of section 32(d) shall 
apply to this section.
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‘‘(iii) SOCIAL SECURITY NUMBER DE-
FINED.—For purposes of clause (i), the 
term ‘social security number’ shall have 
the meaning given such term in section 
24(h)(7). 
‘‘(E) COORDINATION WITH INFLATION AD-
JUSTMENT.—Subsection (c)(4) shall not apply 
to any dollar amount contained in this para-
graph. 
‘‘(F) ALLOWANCE TO SENIORS WHO ELECT 
TO ITEMIZE.—In the case of a taxpayer who 
elects to itemize deductions for any taxable year 
beginning after December 31, 2024, and before 
January 1, 2029, there shall be allowed as a de-
duction the aggregate increase which would be 
determined under subparagraph (A) (deter-
mined after the application of subparagraphs 
(B), (D), and (E)) with respect to such tax-
payer for such taxable year if such taxpayer did 
not so elect to itemize deductions for such tax-
able year.’’. 
(b) OMISSION OF CORRECT SOCIAL SECURITY NUM-
BER
TREATED
AS
MATHEMATICAL
OR
CLERICAL 
ERROR.—Section 6213(g)(2), as amended by the pre-
ceding provisions of this Act, is amended by striking
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‘‘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 fol-
lowing new subparagraph: 
‘‘(Z) an omission of a correct social secu-
rity number required under section 63(f)(5)(D) 
(relating to bonus additional amount for sen-
iors).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 110104. NO TAX ON CAR LOAN INTEREST. 
(a) IN GENERAL.—Section 163(h) is amended by re-
designating paragraph (4) as paragraph (5) and by insert-
ing after paragraph (3) the following new paragraph: 
‘‘(4) SPECIAL
RULES
FOR
TAXABLE
YEARS 
2025 THROUGH 2028 RELATING TO QUALIFIED PAS-
SENGER 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.—
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‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘qualified pas-
senger vehicle loan interest’ means any in-
terest 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 vehi-
cle for personal use. 
‘‘(ii) EXCEPTIONS.—Such term shall 
not include any amount paid or incurred 
on any of the following: 
‘‘(I) A loan to finance fleet sales. 
‘‘(II) A personal cash loan se-
cured by a vehicle previously pur-
chased by the taxpayer. 
‘‘(III) A loan incurred for the 
purchase of a commercial vehicle that 
is not used for personal purposes. 
‘‘(IV) Any lease financing. 
‘‘(V) A loan to finance the pur-
chase of a vehicle with a salvage title. 
‘‘(VI) A loan to finance the pur-
chase of a vehicle intended to be used 
for scrap or parts.
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‘‘(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
MODI-
FIED ADJUSTED GROSS INCOME.—
‘‘(I) IN GENERAL.—The amount 
which is otherwise allowable as a de-
duction under subsection (a) as quali-
fied 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
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taxable year determined after applica-
tion of sections 86, 135, 137, 219, 
221, and 469, and without regard to 
this paragraph and sections 911, 931, 
and 933. 
‘‘(D) APPLICABLE PASSENGER VEHICLE.—
The term ‘applicable passenger vehicle’ means 
any vehicle—
‘‘(i)(I) which is manufactured pri-
marily for use on public streets, roads, and 
highways, 
‘‘(II) which has at least 2 wheels, and 
‘‘(III) which is a car, minivan, van, 
sport utility vehicle, pickup truck, or mo-
torcycle, 
‘‘(ii) which is an all-terrain vehicle 
(designed for use on land), or 
‘‘(iii) any trailer, camper, or vehicle 
(designed for use on land) which—
‘‘(I) is designed to provide tem-
porary living quarters for recreational, 
camping, or seasonal use, and 
‘‘(II) is a motor vehicle or is de-
signed to be towed by, or affixed to, 
a motor vehicle.
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Such term shall not include any vehicle the 
final assembly of which did not occur within the 
United States. 
‘‘(E) OTHER
DEFINITIONS
AND
SPECIAL 
RULES.—For purposes of this paragraph—
‘‘(i) 
ALL-TERRAIN
VEHICLE.—The 
term ‘all-terrain vehicle’ means any motor-
ized vehicle which has 3 or 4 wheels, a seat 
designed to be straddled by the operator, 
and handlebars for steering control. 
‘‘(ii) FINAL
ASSEMBLY.—For pur-
poses 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 deliv-
ered to a dealer or importer with all com-
ponent parts necessary for the mechanical 
operation of the vehicle included with the 
vehicle, whether or not the component 
parts are permanently installed in or on 
the vehicle. 
‘‘(iii) 
TREATMENT
OF
REFI-
NANCING.—Indebtedness described in sub-
paragraph (B) shall include indebtedness
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•HR 1 EH1S 
that results from refinancing any indebted-
ness described in such subparagraph, and 
that is secured by a first lien on the appli-
cable passenger vehicle with respect to 
which the refinanced indebtedness was in-
curred, but only to the extent the amount 
of such resulting indebtedness does not ex-
ceed the amount of such refinanced indebt-
edness. 
‘‘(iv) RELATED
PARTIES.—Indebted-
ness 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 tax-
payer.’’. 
(b) DEDUCTION ALLOWED WHETHER OR NOT TAX-
PAYER ITEMIZES.—Section 62(a) is amended by inserting 
after paragraph (21) the following new paragraph: 
‘‘(22) QUALIFIED PASSENGER VEHICLE LOAN 
INTEREST.—So much of the deduction allowed by 
section 163(a) as is attributable to the exception 
under section 163(h)(4)(A).’’. 
(c) REPORTING.—
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(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 PAS-
SENGER 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 busi-
ness, receives from any individual interest aggre-
gating $600 or more for any calendar year on a 
specified passenger vehicle loan, 
shall make the return described in subsection (b) with re-
spect to each individual from whom such interest was re-
ceived 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 pre-
scribe, and 
‘‘(2) contains—
‘‘(A) the name and address of the indi-
vidual from whom the interest described in sub-
section (a)(2) was received, 
‘‘(B) the amount of such interest received 
for the calendar year,
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•HR 1 EH1S 
‘‘(C) the amount of outstanding principal 
on the specified passenger vehicle loan as of the 
beginning of such calendar year, 
‘‘(D) the date of the origination of such 
loan, 
‘‘(E) the year, make, and model of the ap-
plicable 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 Sec-
retary may prescribe. 
‘‘(c) STATEMENTS TO BE FURNISHED TO INDIVID-
UALS WITH RESPECT TO WHOM INFORMATION IS RE-
QUIRED.—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 state-
ment 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 subpara-
graphs (B), (C), (D), and (E) of subsection (b)(2) 
with respect to such individual (and such informa-
tion as is described in subsection (b)(2)(F) with re-
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•HR 1 EH1S 
spect to such individual as the Secretary may pro-
vide for purposes of this subsection). 
The written statement required under the preceding sen-
tence 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 ap-
propriate to carry out the purposes of this section, includ-
ing regulations or other guidance to prevent the duplicate 
reporting of information under this section.’’. 
(2) PENALTIES.—Section 6724(d) is amend-
ed—
(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’’,
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•HR 1 EH1S 
and by adding at the end the following new 
clause: 
‘‘(xxix) section 6050AA(a) (relating to 
returns relating to applicable passenger ve-
hicle loan interest received in trade or 
business from individuals), and’’, 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 in-
serting ‘‘, or’’, and by inserting after subpara-
graph (LL) the following new subparagraph: 
‘‘(MM) section 6050AA(b) (relating to 
statements relating to applicable passenger ve-
hicle 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) Section 85 is amended by striking sub-
section (c). 
(3) Section 86(b)(2)(A) is amended by inserting 
‘‘163(h)(4),’’ after ‘‘137,’’. 
(4) Section 135(c)(4)(A) is amended by insert-
ing ‘‘163(h)(4),’’ after ‘‘137,’’.
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•HR 1 EH1S 
(5) Section 137(b)(3)(A) is amended by insert-
ing ‘‘, 163(h)(4),’’ after ‘‘85(c)’’. 
(6) Section 219(g)(3)(A)(ii) is amended by in-
serting ‘‘163(h)(4),’’ after ‘‘137,’’. 
(7) Section 221(b)(1)(C)(i) is amended by in-
serting ‘‘, 163(h)(4),’’ after ‘‘85(c)’’. 
(8) Section 469(i)(3)(E)(iii) is amended by in-
serting ‘‘163(h)(4),’’ after ‘‘sections’’. 
(9) 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 re-
ceived in trade or business from individuals.’’.
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to indebtedness incurred after De-
cember 31, 2024. 
SEC. 110105. ENHANCEMENT OF EMPLOYER-PROVIDED 
CHILD CARE CREDIT. 
(a) INCREASE OF AMOUNT OF QUALIFIED CHILD 
CARE EXPENDITURES TAKEN INTO ACCOUNT.—Section 
45F(a)(1) is amended by striking ‘‘25 percent’’ and in-
serting ‘‘40 percent (50 percent in the case of an eligible 
small business)’’. 
(b) INCREASE OF MAXIMUM CREDIT AMOUNT.—Sub-
section (b) of section 45F is amended to read as follows: 
‘‘(b) DOLLAR LIMITATION.—
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‘‘(1) IN GENERAL.—The credit allowable under 
subsection (a) for any taxable year shall not exceed 
$500,000 ($600,000 in the case of an eligible small 
business). 
‘‘(2) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning after 2026, the 
$500,0000 and $600,000 amounts in paragraph (1) 
shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined 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 para-
graph: 
‘‘(4) ELIGIBLE
SMALL
BUSINESS.—The term 
‘eligible small business’ means a business that meets 
the gross receipts test of section 448(c), deter-
mined—
‘‘(A) by substituting ‘5-taxable-year’ for ‘3-
taxable-year’ in paragraph (1) thereof, and
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•HR 1 EH1S 
‘‘(B) by substituting ‘5-year’ for ‘3-year’ 
each place such term appears in paragraph 
(3)(A) thereof.’’. 
(d) CREDIT ALLOWED
FOR THIRD-PARTY INTER-
MEDIARIES.—Section 45F(c)(1)(A)(iii) is amended by in-
serting ‘‘, or under a contract with an intermediate entity 
that contracts with one or more qualified child care facili-
ties 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 sub-
section: 
‘‘(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, includ-
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•HR 1 EH1S 
ing guidance to carry out the purposes of paragraphs 
(1)(A)(iii) and (2)(C) of subsection (c).’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2025. 
SEC. 110106. EXTENSION AND ENHANCEMENT OF PAID FAM-
ILY AND MEDICAL LEAVE CREDIT. 
(a) IN GENERAL.—Section 45S is amended—
(1) in subsection (a)—
(A) by striking paragraph (1) and insert-
ing 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 ei-
ther 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 em-
ployees 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 dur-
ing the taxable year, the applicable percentage 
of the total amount of premiums paid or in-
curred by such employer during such taxable
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•HR 1 EH1S 
year with respect to such insurance policy.’’, 
and 
(B) by adding at the end the following: 
‘‘(3) RATE OF PAYMENT DETERMINED WITH-
OUT REGARD TO WHETHER LEAVE IS TAKEN.—For 
purposes of determining the applicable percentage 
with respect to paragraph (1)(B), the rate of pay-
ment 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 al-
lowed’’ 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 estab-
lishes to the satisfaction of the Secretary
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•HR 1 EH1S 
that such person has a substantial and le-
gitimate business reason for failing to pro-
vide a written policy described in para-
graph (1) or (2). 
‘‘(ii) SUBSTANTIAL AND LEGITIMATE 
BUSINESS
REASON.—For 
purposes 
of 
clause (i), the term ‘substantial and legiti-
mate 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 ap-
plication 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
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•HR 1 EH1S 
‘‘(B) shall not be taken into account in de-
termining the amount of the paid family and 
medical leave credit under subsection (a).’’, 
(4) in subsection (d)—
(A) in paragraph (1), by inserting ‘‘(or, at 
the election of the employer, for not less than 
6 months)’’ after ‘‘1 year or more’’, and 
(B) in paragraph (2)—
(i) by inserting ‘‘, as determined on 
an annualized basis (pro-rata for part-time 
employees),’’ after ‘‘compensation’’, and 
(ii) by striking the period at the end 
and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(3) is customarily employed for not less than 
20 hours per week.’’, and 
(5) by striking subsection (i). 
(b) NO DOUBLE BENEFIT.—Section 280C(a) is 
amended—
(1) 
by 
striking 
‘‘45S(a)’’ 
and 
inserting 
‘‘45S(a)(1)(A)’’, and 
(2) by inserting after the first sentence the fol-
lowing: ‘‘No deduction shall be allowed for that por-
tion of the premiums paid or incurred for the tax-
able year which is equal to that portion of the paid
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•HR 1 EH1S 
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. 110107. ENHANCEMENT OF ADOPTION CREDIT. 
(a) IN GENERAL.—Section 23(a) is amended by add-
ing 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 sub-
section (a) and paragraphs (1) and (2)(A)(i) of sub-
section (b) shall be increased by an amount equal 
to—
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar
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•HR 1 EH1S 
year in which the taxable year begins, deter-
mined 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
POR-
TION.—In the case of the dollar amount in sub-
section (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 CRED-
IT FROM CARRYFORWARD.—Section 23(c)(1) is amended 
by striking ‘‘credit allowable under subsection (a)’’ and in-
serting ‘‘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.
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SEC. 110108. RECOGNIZING INDIAN TRIBAL GOVERNMENTS 
FOR PURPOSES OF DETERMINING WHETHER 
A CHILD HAS SPECIAL NEEDS FOR PURPOSES 
OF THE ADOPTION CREDIT. 
(a) IN GENERAL.—Section 23(d)(3) is amended—
(1) in subparagraph (A), by inserting ‘‘or In-
dian tribal government’’ after ‘‘a State’’, and 
(2) in subparagraph (B), by inserting ‘‘or In-
dian tribal government’’ after ‘‘such State’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 110109. SCHOLARSHIP GRANTING ORGANIZATIONS. 
(a) ALLOWANCE OF CREDIT FOR CONTRIBUTIONS OF 
INDIVIDUALS
TO SCHOLARSHIP GRANTING ORGANIZA-
TIONS.—
(1) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 is amended by inserting after 
section 25E the following new section: 
‘‘SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDU-
CATION SCHOLARSHIPS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, 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.
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‘‘(b) LIMITATIONS.—
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) to any taxpayer for any taxable year 
shall not exceed an amount equal to the greater of—
‘‘(A) 10 percent of the adjusted gross in-
come of the taxpayer for the taxable year, or 
‘‘(B) $5,000. 
‘‘(2) ALLOCATION OF VOLUME CAP.—The credit 
allowed under subsection (a) to any taxpayer for any 
taxable year shall not exceed the amount of the vol-
ume cap allocated by the Secretary to such taxpayer 
under subsection (g) with respect to qualified con-
tributions made by the taxpayer during the taxable 
year. 
‘‘(3) REDUCTION BASED ON STATE CREDIT.—
The amount allowed as a credit under subsection (a) 
for a taxable year shall be reduced by the amount 
allowed as a credit on any State tax return of the 
taxpayer for qualified contributions made by the tax-
payer during the taxable year. 
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) ELIGIBLE STUDENT.—The term ‘eligible 
student’ means an individual who—
‘‘(A) is a member of a household with an 
income which is not greater than 300 percent
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•HR 1 EH1S 
of the area median gross income (as such term 
is used in section 42), and 
‘‘(B) is eligible to enroll in a public ele-
mentary or secondary school. 
‘‘(2) QUALIFIED
CONTRIBUTION.—The term 
‘qualified contribution’ means a charitable contribu-
tion (as defined by section 170(c)) to a scholarship 
granting organization in the form of cash or market-
able securities. 
‘‘(3) QUALIFIED ELEMENTARY OR SECONDARY 
EDUCATION EXPENSE.—The term ‘qualified elemen-
tary or secondary education expense’ means the fol-
lowing expenses in connection with enrollment or at-
tendance at, or for students enrolled at or attending, 
an elementary or secondary public, private, or reli-
gious school: 
‘‘(A) Tuition. 
‘‘(B) Curriculum and curricular materials. 
‘‘(C) Books or other instructional mate-
rials. 
‘‘(D) Online educational materials. 
‘‘(E) Tuition for tutoring or educational 
classes outside of the home, including at a tu-
toring facility, but only if the tutor or instruc-
tor is not related to the student and—
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•HR 1 EH1S 
‘‘(i) is licensed as a teacher in any 
State, 
‘‘(ii) has taught at an eligible edu-
cational 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 re-
lated to college or university admission. 
‘‘(G) Fees for dual enrollment in an insti-
tution of higher education. 
‘‘(H) Educational therapies for students 
with disabilities provided by a licensed or ac-
credited practitioner or provider, including oc-
cupational, behavioral, physical, and speech-lan-
guage therapies. 
Such term shall include expenses for the purposes 
described in subparagraphs (A) through (H) in con-
nection with a homeschool (whether treated as a 
homeschool or a private school for purposes of appli-
cable State law). No amount paid to an elementary 
or secondary school shall be considered a qualified 
elementary or secondary education expense for the 
purposes of this section unless such school dem-
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•HR 1 EH1S 
onstrates that it maintains a policy whereby its ad-
missions standards do not take into account whether 
the student seeking enrollment has a current individ-
ualized education plan, nor takes into account that 
the student requires equitable services for a learning 
disability, and if a student does have such an indi-
vidualized education plan, the school abides by the 
plan’s terms and provides services outlined therein. 
‘‘(4) 
SCHOLARSHIP
GRANTING
ORGANIZA-
TION.—The term ‘scholarship granting organization’ 
means any organization—
‘‘(A) which—
‘‘(i) is described in section 501(c)(3) 
and exempt from tax under section 501(a), 
and 
‘‘(ii) is not a private foundation, 
‘‘(B) substantially all of the activities of 
which are providing scholarships for qualified 
elementary or secondary education expenses of 
eligible students, 
‘‘(C) which prevents the co-mingling of 
qualified contributions with other amounts by 
maintaining one or more separate accounts ex-
clusively for qualified contributions, and 
‘‘(D) which either—
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•HR 1 EH1S 
‘‘(i) meets the requirements of sub-
section (d), or 
‘‘(ii) pursuant to State law, was able 
(as of the date of the enactment of this 
section) to receive contributions that are 
eligible for a State tax credit if such con-
tributions are used by the organization to 
provide scholarships to individual elemen-
tary and secondary students, including 
scholarships for attending private schools. 
‘‘(d) REQUIREMENTS FOR SCHOLARSHIP GRANTING 
ORGANIZATIONS.—
‘‘(1) IN GENERAL.—An organization meets the 
requirements of this subsection if—
‘‘(A) such organization provides scholar-
ships to 2 or more students, provided that not 
all such students attend the same school, 
‘‘(B) such organization does not provide 
scholarships for any expenses other than quali-
fied elementary or secondary education ex-
penses, 
‘‘(C) such organization provides a scholar-
ship to eligible students with a priority for—
‘‘(i) students awarded a scholarship 
the previous school year, and
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•HR 1 EH1S 
‘‘(ii) after application of clause (i), 
any such students who have a sibling who 
was awarded a scholarship from such orga-
nization, 
‘‘(D) such organization does not earmark 
or set aside contributions for scholarships on 
behalf of any particular student, 
‘‘(E) such organization takes appropriate 
steps to verify the annual household income and 
family size of eligible students to whom it 
awards scholarships, and limits them to a mem-
ber of a household for which the income does 
not exceed the amount established under sub-
section (c)(1)(A), 
‘‘(F) such organization—
‘‘(i) obtains from an independent cer-
tified public accountant annual financial 
and compliance audits, and 
‘‘(ii) certifies to the Secretary (at such 
time, and in such form and manner, as the 
Secretary may prescribe) that the audit de-
scribed in clause (i) has been completed, 
and 
‘‘(G) no officer or board member of such 
organization has been convicted of a felony.
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‘‘(2) INCOME VERIFICATION.—For purposes of 
paragraph (1)(E), review of all of the following (as 
applicable) shall be treated as satisfying the require-
ment to take appropriate steps to verify annual 
household income: 
‘‘(A) Federal and State income tax returns 
or tax return transcripts with applicable sched-
ules for the taxable year prior to application. 
‘‘(B) Income reporting statements for tax 
purposes or wage and income transcripts from 
the Internal Revenue Service. 
‘‘(C) Notarized income verification letter 
from employers. 
‘‘(D) Unemployment or workers compensa-
tion statements. 
‘‘(E) Budget letters regarding public as-
sistance payments and Supplemental Nutrition 
Assistance Program (SNAP) payments includ-
ing a list of household members. 
‘‘(3) INDEPENDENT
CERTIFIED
PUBLIC
AC-
COUNTANT.—For purposes of paragraph (1)(F), the 
term 
‘independent 
certified 
public 
accountant’ 
means, with respect to an organization, a certified 
public accountant who is not a person described in
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•HR 1 EH1S 
section 465(b)(3)(A) with respect to such organiza-
tion or any employee of such organization. 
‘‘(4) PROHIBITION ON SELF-DEALING.—
‘‘(A) IN GENERAL.—A scholarship grant-
ing organization may not award a scholarship 
to any disqualified person. 
‘‘(B) DISQUALIFIED
PERSON.—For pur-
poses 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 sec-
tion shall not be taken into account as a charitable con-
tribution 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 tax-
able 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
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•HR 1 EH1S 
following the fifth taxable year after the taxable year 
in which the credit arose. For purposes of the pre-
ceding sentence, credits shall be treated as used on 
a first-in first-out basis. 
‘‘(g) VOLUME CAP.—
‘‘(1) IN GENERAL.—The volume cap applicable 
under this section shall be $5,000,000,000 for each 
of calendar years 2026 through 2029, and zero for 
calendar years thereafter. Such amount shall be allo-
cated by the Secretary as provided in paragraph (2) 
to taxpayers with respect to qualified contributions 
made by such taxpayers, except that 10 percent of 
such amount shall be divided evenly among the 
States, and shall be available with respect to individ-
uals residing in such States. 
‘‘(2) FIRST-COME, FIRST-SERVE.—For purposes 
of applying the volume cap under this section, such 
volume cap for any calendar year shall be allocated 
by the Secretary on a first-come, first-serve basis, as 
determined based on the time (during such calendar 
year) at which the taxpayer made the qualified con-
tribution with respect to which the allocation is 
made. The Secretary shall not make any allocation 
of volume cap for any calendar year after December 
31 of such calendar year.
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•HR 1 EH1S 
‘‘(3) REAL-TIME INFORMATION.—For purposes 
of this section, the Secretary shall develop a system 
to track the amount of qualified contributions made 
during the calendar year for which a credit may be 
claimed under this section, with such information to 
be updated in real time. 
‘‘(4) ANNUAL INCREASES.—
‘‘(A) IN GENERAL.—In the case of the cal-
endar year after a high-use calendar year, the 
dollar amount otherwise in effect under para-
graph (1) for such calendar year shall be equal 
to 105 percent of the dollar amount in effect 
for such high-use calendar year. 
‘‘(B) HIGH-USE
CALENDAR
YEAR.—For 
purposes of this subsection, the term ‘high-use 
calendar year’ means any calendar year for 
which 90 percent or more of the volume cap in 
effect for such calendar year under paragraph 
(1) is allocated to taxpayers. 
‘‘(C) PREVENTION OF DECREASES IN AN-
NUAL VOLUME CAP.—The volume cap in effect 
under paragraph (1) for any calendar year shall 
not be less than the volume cap in effect under 
such paragraph for the preceding calendar year.
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•HR 1 EH1S 
‘‘(D) PUBLICATION OF ANNUAL VOLUME 
CAP.—The Secretary shall make publicly avail-
able the dollar amount of the volume cap in ef-
fect under paragraph (1) for each calendar 
year. 
‘‘(5) STATES.—For purposes of this subsection, 
the term ‘State’ includes the District of Columbia.’’. 
(2) CONFORMING AMENDMENTS.—
(A) Section 25(e)(1)(C) is amended by 
striking ‘‘and 25D’’ and inserting ‘‘25D, and 
25F’’. 
(B) The table of sections for subpart A of 
part IV of subchapter A of chapter 1 is amend-
ed by inserting after the item relating to section 
25E the following new item:
‘‘Sec. 25F. Qualified elementary and secondary education scholarships.’’.
(b) EXEMPTION FROM GROSS INCOME FOR SCHOL-
ARSHIPS 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:
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•HR 1 EH1S 
‘‘SEC. 139J. 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 
any dependent of such individual pursuant to a scholar-
ship for qualified elementary or secondary education ex-
penses of an eligible student which is provided by a schol-
arship granting organization. 
‘‘(b) DEFINITIONS.—In this section, the terms ‘quali-
fied elementary or secondary education expense’, ‘eligible 
student’, and ‘scholarship granting organization’ have the 
same meaning given such terms under section 25F(c). 
‘‘(c) TERMINATION.—Subsection (a) shall not apply 
to amounts received after December 31, 2029.’’. 
(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. 139J. Scholarships for qualified elementary or secondary education ex-
penses of eligible students.’’.
(c) FAILURE OF SCHOLARSHIP GRANTING ORGANI-
ZATIONS TO MAKE DISTRIBUTIONS.—
(1) IN GENERAL.—Chapter 42 is amended by 
adding at the end the following new subchapter:
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•HR 1 EH1S 
‘‘Subchapter I—Scholarship Granting 
Organizations
‘‘Sec. 4969. Failure to distribute receipts.
‘‘SEC. 4969. FAILURE TO DISTRIBUTE RECEIPTS. 
‘‘(a) IN GENERAL.—In the case of any scholarship 
granting organization (as defined in section 25F) which 
has been determined by the Secretary to have failed to 
satisfy the requirement under subsection (b) for any tax-
able year, any contribution made to such organization dur-
ing the first taxable year beginning after the date of such 
determination shall not be treated as a qualified contribu-
tion (as defined in section 25F(c)(2)) for purposes of sec-
tion 25F. 
‘‘(b) REQUIREMENT.—The requirement described in 
this subsection is that the amount of receipts of the schol-
arship granting organization for the taxable year which 
are distributed before the distribution deadline with re-
spect to such receipts shall not be less than the required 
distribution amount with respect to such taxable year. 
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) REQUIRED DISTRIBUTION AMOUNT.—
‘‘(A) IN GENERAL.—The required distribu-
tion amount with respect to a taxable year is 
the amount equal to 100 percent of the total re-
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•HR 1 EH1S 
ceipts of the scholarship granting organization 
for such taxable year—
‘‘(i) reduced by the sum of such re-
ceipts that are retained for reasonable ad-
ministrative expenses for the taxable year 
or are carried to the succeeding taxable 
year under subparagraph (C), and 
‘‘(ii) increased by the amount of the 
carryover under subparagraph (C) from 
the preceding taxable year. 
‘‘(B) SAFE HARBOR FOR REASONABLE AD-
MINISTRATIVE
EXPENSES.—For purposes of 
subparagraph (A)(i), if the percentage of total 
receipts of a scholarship granting organization 
for a taxable year which are used for adminis-
trative purposes is equal to or less than 10 per-
cent, such expenses shall be deemed to be rea-
sonable for purposes of such subparagraph. 
‘‘(C) CARRYOVER.—With respect to the 
amount of the total receipts of a scholarship 
granting organization with respect to any tax-
able year, an amount not greater than 15 per-
cent of such amount may, at the election of 
such organization, be carried to the succeeding 
taxable year.
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•HR 1 EH1S 
‘‘(2) DISTRIBUTIONS.—The term ‘distribution’ 
includes amounts which are formally committed but 
not distributed. A formal commitment described in 
the preceding sentence may include contributions set 
aside for eligible students for more than one year. 
‘‘(3) DISTRIBUTION DEADLINE.—The distribu-
tion deadline with respect to receipts for a taxable 
year is the first day of the third taxable year fol-
lowing the taxable year in which such receipts are 
received by the scholarship granting organization.’’. 
(2) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 42 is amended by adding at the 
end the following new item:
‘‘SUBCHAPTER I—SCHOLARSHIP GRANTING ORGANIZATIONS’’.
(d) EFFECTIVE DATE.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to taxable years ending after 
December 31, 2025. 
(2) EXEMPTION
FROM
GROSS
INCOME.—The 
amendments made by subsection (b) shall apply to 
amounts received after December 31, 2025, in tax-
able years ending after such date. 
(e) ORGANIZATIONAL AND PARENTAL AUTONOMY.—
(1) PROHIBITION OF CONTROL OVER SCHOLAR-
SHIP ORGANIZATIONS.—
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•HR 1 EH1S 
(A) IN GENERAL.—
(i) 
TREATMENT.—A 
scholarship 
granting organization shall not, by virtue 
of participation under any provision of this 
section or any amendment made by this 
section, be regarded as acting on behalf of 
any governmental entity. 
(ii) NO GOVERNMENTAL CONTROL.—
Nothing in this section, or any amendment 
made by this section, shall be construed to 
permit, allow, encourage, or authorize any 
Federal, State, or local government entity, 
or officer or employee thereof, to mandate, 
direct, or control any aspect of any schol-
arship granting organization. 
(iii) MAXIMUM FREEDOM.—To the ex-
tent permissible by law, this section, and 
any amendment made by this section, shall 
be construed to allow scholarship granting 
organizations maximum freedom to provide 
for the needs of the participants without 
governmental control. 
(B) PROHIBITION OF CONTROL OVER NON-
PUBLIC SCHOOLS.—
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•HR 1 EH1S 
(i) NO
GOVERNMENTAL
CONTROL.—
Nothing in this section, or any amendment 
made by this section, shall be construed to 
permit, allow, encourage, or authorize any 
Federal, State, or local government entity, 
or officer or employee thereof, to mandate, 
direct, or control any aspect of any private 
or religious elementary or secondary edu-
cation institution. 
(ii) NO EXCLUSION OF PRIVATE OR 
RELIGIOUS SCHOOLS.—No Federal, State, 
or local government entity, or officer or 
employee thereof, shall impose or permit 
the imposition of any conditions or require-
ments that would exclude or operate to ex-
clude educational expenses at private or re-
ligious elementary and secondary education 
institutions from being considered qualified 
elementary or secondary education ex-
penses. 
(iii) NO
EXCLUSION
OF
QUALIFIED 
EXPENSES
DUE
TO
INSTITUTION’S
RELI-
GIOUS CHARACTER OR AFFILIATION.—No 
Federal, State, or local government entity, 
or officer or employee thereof, shall ex-
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•HR 1 EH1S 
clude, discriminate against, or otherwise 
disadvantage any elementary or secondary 
education institution with respect to quali-
fied elementary or secondary education ex-
penses at that institution based in whole or 
in part on the institution’s religious char-
acter or affiliation, including religiously 
based or mission-based policies or prac-
tices. 
(C) PARENTAL RIGHTS TO USE SCHOLAR-
SHIPS.—No Federal, State, or local government 
entity, or officer or employee thereof, shall dis-
favor or discourage the use of scholarships 
granted by participating scholarship granting 
organizations for qualified elementary or sec-
ondary education expenses at private or non-
profit elementary and secondary education in-
stitutions, including faith-based schools. 
(D) PARENTAL RIGHT TO INTERVENE.—In 
any action filed in any State or Federal court 
which challenges the constitutionality (under 
the constitution of such State or the Constitu-
tion of the United States) of any provision of 
this section (or any amendment made by this 
section), any parent of an eligible student who
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•HR 1 EH1S 
has received a scholarship from a scholarship 
granting organization shall have the right to in-
tervene in support of the constitutionality of 
such provision or amendment. To avoid duplica-
tion of efforts and reduce the burdens placed on 
the parties to the action, the court in any such 
action may require interveners taking similar 
positions to file joint papers or to be rep-
resented by a single attorney at oral argument, 
provided that the court does not require such 
interveners to join any brief filed on behalf of 
any State which is a defendant in such action. 
(2) DEFINITIONS.—For purposes of this sub-
section, the terms ‘‘eligible student’’, ‘‘scholarship 
granting organization’’, and ‘‘qualified elementary or 
secondary education expense’’ shall have the same 
meanings given such terms under section 25F(c) of 
the Internal Revenue Code of 1986 (as added by 
this Act). 
SEC. 110110. ADDITIONAL ELEMENTARY, SECONDARY, AND 
HOME 
SCHOOL 
EXPENSES 
TREATED 
AS 
QUALIFIED HIGHER EDUCATION EXPENSES 
FOR PURPOSES OF 529 ACCOUNTS. 
(a) IN GENERAL.—Section 529(c)(7) is amended to 
read as follows:
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•HR 1 EH1S 
‘‘(7) TREATMENT OF ELEMENTARY AND SEC-
ONDARY TUITION.—Any reference in this section to 
the term ‘qualified higher education expense’ shall 
include a reference to the following expenses in con-
nection with enrollment or attendance at, or for stu-
dents enrolled at or attending, an elementary or sec-
ondary public, private, or religious school: 
‘‘(A) Tuition. 
‘‘(B) Curriculum and curricular materials. 
‘‘(C) Books or other instructional mate-
rials. 
‘‘(D) Online educational materials. 
‘‘(E) Tuition for tutoring or educational 
classes outside of the home, including at a tu-
toring facility, but only if the tutor or instruc-
tor is not related to the student and—
‘‘(i) is licensed as a teacher in any 
State, 
‘‘(ii) has taught at an eligible edu-
cational institution, or 
‘‘(iii) is a subject matter expert in the 
relevant subject. 
‘‘(F) Fees for a nationally standardized 
norm-referenced achievement test, an advanced
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•HR 1 EH1S 
placement examination, or any examinations re-
lated to college or university admission. 
‘‘(G) Fees for dual enrollment in an insti-
tution of higher education. 
‘‘(H) Educational therapies for students 
with disabilities provided by a licensed or ac-
credited practitioner or provider, including oc-
cupational, behavioral, physical, and speech-lan-
guage therapies. 
Such term shall include expenses for the purposes 
described in subparagraphs (A) through (H) in con-
nection with a homeschool (whether treated as a 
homeschool or a private school for purposes of appli-
cable State law).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions made after the 
date of the enactment of this Act. 
SEC. 110111. CERTAIN POSTSECONDARY CREDENTIALING 
EXPENSES TREATED AS QUALIFIED HIGHER 
EDUCATION EXPENSES FOR PURPOSES OF 
529 ACCOUNTS. 
(a) IN GENERAL.—Section 529(e)(3) is amended by 
adding at the end the following new subparagraph: 
‘‘(C) 
CERTAIN
POSTSECONDARY 
CREDENTIALING EXPENSES.—The term ‘quali-
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•HR 1 EH1S 
fied higher education expenses’ includes quali-
fied 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 sub-
section (e) the following new subsection: 
‘‘(f) QUALIFIED POSTSECONDARY CREDENTIALING 
EXPENSES.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified post-
secondary credentialing expenses’ means—
‘‘(A) tuition, fees, books, supplies, and 
equipment required for the enrollment or at-
tendance of a designated beneficiary in a recog-
nized postsecondary credential program, or any 
other expense incurred in connection with en-
rollment in or attendance at a recognized post-
secondary credential program if such expense 
would, if incurred in connection with enrollment 
or attendance at an eligible educational institu-
tion, be covered under subsection (e)(3)(A), 
‘‘(B) fees for testing if such testing is re-
quired to obtain or maintain a recognized post-
secondary credential, and
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•HR 1 EH1S 
‘‘(C) fees for continuing education if such 
education is required to maintain a recognized 
postsecondary credential. 
‘‘(2) RECOGNIZED
POSTSECONDARY
CREDEN-
TIAL
PROGRAM.—The term ‘recognized postsec-
ondary 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 Work-
force Innovation and Opportunity Act (29 
U.S.C. 3152(d)), 
‘‘(B) such program is listed in the 
WEAMS Public directory (or successor direc-
tory) maintained by the Department of Vet-
erans Affairs, 
‘‘(C) an examination (developed or admin-
istered by an organization widely recognized as 
providing reputable credentials in the occupa-
tion) is required to obtain or maintain such cre-
dential and such organization recognizes such 
program as providing training or education 
which prepares individuals to take such exam-
ination, or 
‘‘(D) such program is identified by the 
Secretary, after consultation with the Secretary
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•HR 1 EH1S 
of Labor, as being a reputable program for ob-
taining a recognized postsecondary credential 
for purposes of this subsection. 
‘‘(3) RECOGNIZED
POSTSECONDARY
CREDEN-
TIAL.—The term ‘recognized postsecondary creden-
tial’ means—
‘‘(A) any postsecondary employment cre-
dential that is industry recognized, including—
‘‘(i) any postsecondary employment 
credential issued by a program that is ac-
credited by the Institute for Credentialing 
Excellence, the National Commission on 
Certifying Agencies, or the American Na-
tional Standards Institute, 
‘‘(ii) any postsecondary employment 
credential 
that 
is 
included 
in 
the 
Credentialing 
Opportunities 
On-Line 
(COOL) directory of credentialing pro-
grams (or successor directory) maintained 
by the Department of Defense or by any 
branch of the Armed Services, and 
‘‘(iii) any postsecondary employment 
credential identified for purposes of this 
clause by the Secretary, after consultation
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•HR 1 EH1S 
with the Secretary of Labor, as being in-
dustry recognized, 
‘‘(B) any certificate of completion of an 
apprenticeship that is registered and certified 
with the Secretary of Labor under the National 
Apprenticeship Act (29 U.S.C. 50), 
‘‘(C) any occupational or professional li-
cense issued or recognized by a State or the 
Federal Government (and any certification that 
satisfies a condition for obtaining such a li-
cense), and 
‘‘(D) any recognized postsecondary creden-
tial as defined in section 3 of the Workforce In-
novation and Opportunity Act (29 U.S.C. 
3102).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after the 
date of the enactment of this Act. 
SEC. 110112. REINSTATEMENT OF PARTIAL DEDUCTION 
FOR CHARITABLE CONTRIBUTIONS OF INDI-
VIDUALS WHO DO NOT ELECT TO ITEMIZE. 
(a) IN GENERAL.—Section 170(p) is amended—
(1) by striking ‘‘$300 ($600’’ and inserting 
‘‘$150 ($300’’, and
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(2) by striking ‘‘in 2021’’ and inserting ‘‘after 
December 31, 2024, and before January 1, 2029’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 110113. EXCLUSION FOR CERTAIN EMPLOYER PAY-
MENTS OF STUDENT LOANS UNDER EDU-
CATIONAL 
ASSISTANCE 
PROGRAMS 
MADE 
PERMANENT AND ADJUSTED FOR INFLATION. 
(a) IN GENERAL.—Section 127(c)(1)(B) is amended 
by striking ‘‘in the case of payments made before January 
1, 2026,’’. 
(b) INFLATION
ADJUSTMENT.—Section 127 is 
amended—
(1) by redesignating subsection (d) as sub-
section (e), and 
(2) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d) INFLATION ADJUSTMENT.—
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning after 2026, both of the $5,250 
amounts in subsection (a)(2) shall be increased by 
an amount equal to—
‘‘(A) such dollar amount, multiplied by
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•HR 1 EH1S 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2025’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
‘‘(2) ROUNDING.—If any increase under para-
graph (1) is not a multiple of $50, such increase 
shall be rounded to the nearest multiple of $50.’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to payments made after December 
31, 2025. 
SEC. 110114. EXTENSION OF RULES FOR TREATMENT OF 
CERTAIN 
DISASTER-RELATED 
PERSONAL 
CASUALTY LOSSES. 
For purposes of applying section 304(b) of the Tax-
payer Certainty and Disaster Tax Relief Act of 2020 (divi-
sion EE of Public Law 116–260), section 301 of such Act 
shall be applied by substituting the date of the enactment 
of this section for ‘‘the date of the enactment of this Act’’ 
each place it appears. 
SEC. 110115. TRUMP ACCOUNTS. 
(a) IN GENERAL.—Subchapter F of chapter 1 is 
amended by adding at the end the following new part:
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‘‘PART IX—TRUMP ACCOUNTS 
‘‘SEC. 530A. TRUMP ACCOUNTS. 
‘‘(a) GENERAL RULE.—A Trump account shall be ex-
empt from taxation under this subtitle. Notwithstanding 
the preceding sentence, such account shall be subject to 
the taxes imposed by section 511 (relating to imposition 
of tax on unrelated business income of charitable organiza-
tions). 
‘‘(b) TRUMP ACCOUNT.—For purposes of this sec-
tion—
‘‘(1) IN GENERAL.—The term ‘Trump account’ 
means a trust created or organized in the United 
States for the exclusive benefit of an individual and 
which is designated (in such manner as the Sec-
retary shall prescribe) at the time of the establish-
ment of the trust as a Trump account, but only if 
the written governing instrument creating the trust 
meets the following requirements: 
‘‘(A) The individual establishing the ac-
count shall provide to the trustee the social se-
curity number of such individual and of the ac-
count beneficiary. 
‘‘(B) Except in the case of a qualified roll-
over contribution described in subsection (e), no 
contribution will be accepted—
‘‘(i) before January 1, 2026,
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•HR 1 EH1S 
‘‘(ii) unless it is in cash, 
‘‘(iii) unless the account beneficiary 
has not attained age 18, and 
‘‘(iv) if such contribution would result 
in aggregate contributions for the taxable 
year exceeding the contribution limit speci-
fied in subsection (c)(1). 
‘‘(C) No distribution (other than a dis-
tribution of a qualified rollover contribution) 
will be allowed—
‘‘(i) before the date on which the ac-
count beneficiary attains age 18, or 
‘‘(ii) in the case of such an account 
the account beneficiary of which has not 
attained age 25, if the aggregate distribu-
tions from such account exceeds the 
amount that is 1⁄2 the cash equivalent 
value of the account on the date on which 
the account beneficiary attains age 18. 
‘‘(D) The account beneficiary has not at-
tained age 8 on the date of the establishment 
of the account. 
‘‘(E) The trustee is a bank (as defined in 
section 408(n)) or another person who dem-
onstrates to the satisfaction of the Secretary
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•HR 1 EH1S 
that the manner in which that person will ad-
minister the trust will be consistent with the re-
quirements of this section or who has so dem-
onstrated with respect to any individual retire-
ment plan. 
‘‘(F) The interest of an individual in the 
balance of his account is nonforfeitable. 
‘‘(G) The assets of the trust shall not be 
commingled with other property except in a 
common trust fund or common investment 
fund. 
‘‘(H) No part of the trust funds will be in-
vested in any asset other than eligible invest-
ments. 
‘‘(2) ELIGIBLE INVESTMENTS.—The term ‘eligi-
ble investments’ means stock of a regulated invest-
ment company (within the meaning of section 851) 
which—
‘‘(A) tracks a well-established index of 
United States equities (or which invests in an 
equivalent diversified portfolio of United States 
equities), 
‘‘(B) does not use leverage, 
‘‘(C) minimizes fees and expenses, and
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•HR 1 EH1S 
‘‘(D) meets such other criteria as the Sec-
retary determines appropriate for purposes of 
this section. 
‘‘(3) ACCOUNT
BENEFICIARY.—The term ‘ac-
count beneficiary’ means the individual on whose be-
half the Trump account was established. 
‘‘(c) TREATMENT OF CONTRIBUTIONS.—
‘‘(1) CONTRIBUTION LIMIT.—The contribution 
limit for any taxable year is $5,000. 
‘‘(2) CONTRIBUTIONS
FROM
TAX
EXEMPT 
SOURCES
AND
ROLLOVER
CONTRIBUTIONS.—The 
amount contributed to a Trump account for pur-
poses of paragraph (1) shall be determined without 
regard to—
‘‘(A) a qualified rollover contribution, 
‘‘(B) any contribution from the Federal 
Government or any State, local, or tribal gov-
ernment, or 
‘‘(C) any contribution made through the 
program established under subsection (l). 
‘‘(3) COST-OF-LIVING ADJUSTMENT.—
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2026, the $5,000 amount under paragraph (1) 
shall be increased by an amount equal to—
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•HR 1 EH1S 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year, determined by substituting 
‘calendar year 2025’ for ‘calendar year 
2016’ in subparagraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—If any increase under 
subparagraph (A) is not a multiple of $100, 
such amount shall be rounded to the next lower 
multiple of $100. 
‘‘(d) DISTRIBUTIONS.—
‘‘(1) AMOUNTS ALLOCABLE TO INVESTMENT IN 
THE CONTRACT.—A distribution from a Trump ac-
count of an amount allocable to the investment in 
the contract shall not be includible in the gross in-
come of the distributee. 
‘‘(2) AMOUNTS ALLOCABLE TO INCOME ON THE 
CONTRACT
USED
FOR
QUALIFIED
EXPENSES.—A 
distribution from a Trump account of an amount al-
locable to income on the contract and which is used 
exclusively to pay for qualified expenses shall be in-
cludible in net capital gain of the distributee under 
section 1(h)(12). 
‘‘(3) AMOUNTS
INCLUDIBLE
IN
GROSS
IN-
COME.—Any distribution from a Trump account
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•HR 1 EH1S 
which is not described in paragraph (1) or (2) shall 
be includible in the gross income of the distributee. 
‘‘(4) QUALIFIED EXPENSES.—For purposes of 
this subsection, the term ‘qualified expenses’ means 
any of the following expenses paid or incurred for 
the benefit of the account beneficiary: 
‘‘(A) Qualified higher education expenses 
(as defined in section 529(e)(3)) determined 
without regard to section 529(c)(7). 
‘‘(B) Qualified post-secondary credentialing 
expenses (as defined in section 529(f)). 
‘‘(C) Under regulations provided by the 
Secretary, amounts paid or incurred with re-
spect to any small businesses for which the ben-
eficiary has obtained any small business loan, 
small farm loan, or similar loan. 
‘‘(D) Any amount used for the purchase 
(as defined in section 36(c)(3)) of the principal 
residence (as used in section 121) of the ac-
count beneficiary if such account beneficiary is 
a first-time homebuyer (as defined in section 
36(c)(1)) with respect to such purchase. 
‘‘(5) EXCEPTIONS.—Paragraphs (2) and (3) 
shall not apply to any distribution which is a quali-
fied rollover contribution.
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•HR 1 EH1S 
‘‘(6) ADDITIONAL TAX ON CERTAIN DISTRIBU-
TIONS.—In the case of a distributee who has not at-
tained age 30, the tax imposed by this chapter on 
the account beneficiary for any taxable year in which 
there is a distribution from a Trump account of 
such beneficiary which is includible in gross income 
under paragraph (3) shall be increased by 10 per-
cent of the amount which is so includible. 
‘‘(e) QUALIFIED ROLLOVER CONTRIBUTION.—For 
purposes of this section, the term ‘qualified rollover con-
tribution’ means an amount which is paid in a direct trust-
ee-to-trustee transfer from a Trump account maintained 
for the benefit of the account beneficiary to a Trump ac-
count maintained for such beneficiary. 
‘‘(f) TREATMENT AFTER DEATH OF ACCOUNT BENE-
FICIARY.—Rules similar to the rules of section 223(f)(8) 
shall apply for purposes of this section. 
‘‘(g) DETERMINATIONS OF AGGREGATE DISTRIBU-
TIONS AND INVESTMENT IN CONTRACT IN THE CASE OF 
CERTAIN ROLLOVER CONTRIBUTIONS.—In the case of a 
qualified rollover contribution which is described in sub-
section (e)(2), any determination required under this sec-
tion of the amount of the investment of the contract or 
of aggregate distributions from the Trump account shall 
be determined with respect to the aggregate of such
739
•HR 1 EH1S 
amounts for all Trump accounts of the same account bene-
ficiary. 
‘‘(h) CUSTODIAL ACCOUNTS.—For purposes of this 
section, a custodial account shall be treated as a trust 
under this section if—
‘‘(1) the custodial account would, except for the 
fact that it is not a trust, constitute a trust which 
meets the requirements of subsection (b)(1), and 
‘‘(2) the assets of such account are held by a 
bank (as defined in section 408(n)) or another per-
son who demonstrates, to the satisfaction of the Sec-
retary, that the manner in which he will administer 
the account will be consistent with the requirements 
of this section. 
For purposes of this title, in the case of a custodial ac-
count treated as a trust by reason of the preceding sen-
tence, the person holding the assets of such account shall 
be treated as the trustee thereof. 
‘‘(i) TERMINATION.—
‘‘(1) AGE 31.—Upon the date on which the ac-
count beneficiary attains age 31, a Trump account 
shall cease to be a Trump account and the amount 
in such account shall be treated as distributed for 
purposes of subsection (d).
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•HR 1 EH1S 
‘‘(2) MULTIPLE
ACCOUNTS
OF
ONE
BENE-
FICIARY.—
‘‘(A) IN GENERAL.—In the case of any du-
plicate Trump account of any account bene-
ficiary other than a Trump account which is es-
tablished by the deposit through a qualified roll-
over contribution of the entire amount of an-
other Trump account of the account bene-
ficiary—
‘‘(i) such duplicate Trump account 
shall cease to be a Trump account and the 
amount in such account shall be treated as 
distributed for purposes of subsection (d), 
and 
‘‘(ii) there is imposed an excise tax on 
the account beneficiary in an amount equal 
to so much of cash value of the account as 
is allocable to income on the contract. 
‘‘(B) WITHHOLDING
REQUIREMENT.—In 
the case of an account terminated under sub-
paragraph (A), the trustee shall deduct and 
withhold upon the amount to be distributed the 
amount in excess described in subparagraph 
(A)(ii).
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•HR 1 EH1S 
‘‘(C) NOTIFICATION.—The Secretary, upon 
determining that a duplicate account exists, 
shall provide a notice to the account beneficiary 
of such duplicate account (and the account cus-
todian, in the case of a custodial account) and 
to each trustee of any Trump account of the ac-
count beneficiary of such duplicate account 
which identifies each Trump account of such 
beneficiary and the trustee of each such ac-
count. 
‘‘(D) DUPLICATE ACCOUNT.—For purposes 
of this paragraph, the term ‘duplicate account’ 
means—
‘‘(i) in the case of an account bene-
ficiary for the benefit of whom an account 
was established by the Secretary under 
section 6434, any other Trump account of 
such account beneficiary, or 
‘‘(ii) in the case of any other account 
beneficiary, any Trump account established 
after the first Trump account established 
for the benefit of such account beneficiary. 
‘‘(j) INVESTMENT IN THE CONTRACT.—For purposes 
of this section, rules similar to the rules applied to a quali-
fied tuition program (as defined in section 529(b)) under
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•HR 1 EH1S 
section 72(e)(9) shall apply for purposes of determining 
the investment in the contract, except that such amount 
shall be determined without regard to any contribution 
which is described in subsection (c)(2). 
‘‘(k) REPORTS.—The trustee of a Trump account 
shall make such reports regarding such account to the 
Secretary and to the beneficiary of the account with re-
spect to contributions, distributions, the amount of invest-
ment in the contract, and such other matters as the Sec-
retary may require. The reports required by this sub-
section shall be filed at such time and in such manner 
and furnished to such individuals at such time and in such 
manner as may be required. 
‘‘(l) CONTRIBUTIONS
TO PREDOMINATELY UNRE-
LATED CHILDREN.—The Secretary shall establish a pro-
gram through which contributions may be made to the 
Trump accounts of a large group of account beneficiaries 
if—
‘‘(1) the contribution is made by any person de-
scribed in any paragraph of section 501(c) and ex-
empt from taxation under section 501(a), 
‘‘(2) such accounts are selected on the basis of 
the location of the residence of the account bene-
ficiaries, the school district in which such bene-
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•HR 1 EH1S 
ficiaries attend school, or another basis the Sec-
retary determines appropriate, and 
‘‘(3) all individuals who are account bene-
ficiaries of such an account who meet the selected 
criteria receive an equal portion of the contribu-
tion.’’. 
(b) DISTRIBUTION TAXED AT SAME RATE AS NET 
CAPITAL GAINS.—Section 1(h) is amended by adding at 
the end the following new paragraph: 
‘‘(12) DISTRIBUTIONS FROM TRUMP ACCOUNT 
TAXED AS NET CAPITAL GAIN.—For purposes of this 
subsection, the term ‘net capital gain’ means the net 
capital gain (determined without regard to this para-
graph) increased by the amount includible in net 
capital gain under this paragraph by reason of sec-
tion 530A(d)(2).’’. 
(c) TAX ON EXCESS CONTRIBUTIONS.—
(1) IN GENERAL.—Section 4973(a) is amended 
by striking ‘‘or’’ at the end of paragraph (5), by in-
serting ‘‘or’’ at the end of paragraph (6), and by in-
serting after paragraph (6) the following new para-
graph: 
‘‘(7) a Trump account (as defined in section 
530A(b)),’’.
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(2) EXCESS CONTRIBUTION.—Section 4973 is 
amended by adding at the end the following new 
subsection: 
‘‘(i) EXCESS CONTRIBUTIONS
TO
A TRUMP AC-
COUNT.—For purposes of this section, in the case of 
Trump accounts (within the meaning of section 530A), the 
term ‘excess contributions’ means the sum of—
‘‘(1) the amount by which the amount contrib-
uted for the calendar year to such account (other 
than qualified rollover contributions (as defined in 
section 530A(e))) exceeds the contribution limit 
under section 530A(c)(1) (determined without re-
gard 
to 
contributions 
described 
in 
section 
530A(c)(2)), and 
‘‘(2) the amount determined under this sub-
section for the preceding calendar year, reduced by 
the excess (if any) of the maximum amount allow-
able as a contribution under section 530A(c)(1) (as 
so determined) for the calendar year over the 
amount contributed to the account for the calendar 
year (other than qualified rollover contributions (as 
so defined)).’’. 
(d) DISCLOSURE OF RETURN INFORMATION TO FA-
CILITATE CERTAIN CONTRIBUTIONS.—Section 6103(l) is
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•HR 1 EH1S 
amended by adding at the end the following new para-
graph: 
‘‘(23) DISCLOSURE OF RETURN INFORMATION 
TO ENABLE CERTAIN CONTRIBUTIONS TO TRUMP AC-
COUNTS.—Upon written request signed by the head 
of the bureau or office of the Department of the 
Treasury requesting the inspection or disclosure, the 
Secretary may disclose the following return informa-
tion with respect to a Trump account (as defined in 
section 503A(b)) to officers and employees of such 
bureau or office to the extent that such disclosure is 
necessary to carry out section 530A(l): 
‘‘(A) Information necessary to identify the 
account holders in a particular class of bene-
ficiaries identified by a donor as the intended 
recipients. 
‘‘(B) The name, address, and social secu-
rity number of a beneficiary. 
‘‘(C) The account custodian and the ad-
dress of such custodian. 
‘‘(D) The account number. 
‘‘(E) The routing number. 
‘‘(F) To the extent determined by the Sec-
retary in regulations, such other return infor-
746
•HR 1 EH1S 
mation as the Secretary determines necessary 
to ensure proper routing of funds 
Return information disclosed under this paragraph 
may only be used to identify account holders in a 
particular class of beneficiaries or for the proper 
routing of funds and may not be redisclosed by the 
Secretary.’’. 
(e) FAILURE TO PROVIDE REPORTS ON TRUMP AC-
COUNTS.—Section 6693(a)(2) is amended by striking 
‘‘and’’ at the end of subparagraph (E), by striking the 
period at the end of subparagraph (F) and inserting ‘‘, 
and’’, and by adding at the end the following new subpara-
graph: 
‘‘(G) section 530A(h) (relating to Trump 
accounts).’’. 
(f) CONFORMING AMENDMENT.—The table of parts 
for subchapter F of chapter 1 is amended by adding at 
the end the following new item:
‘‘PART IX. TRUMP ACCOUNTS’’.
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 110116. TRUMP ACCOUNTS CONTRIBUTION PILOT PRO-
GRAM. 
(a) IN GENERAL.—Subchapter B of chapter 65 is 
amended by adding at the end the following new section:
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•HR 1 EH1S 
‘‘SEC. 6434. TRUMP ACCOUNTS CONTRIBUTION PILOT PRO-
GRAM. 
‘‘(a) IN GENERAL.—In the case of any taxpayer with 
respect to whom an eligible individual is a qualifying child, 
there shall be allowed a one-time credit of $1,000 with 
respect to each such eligible individual who is a qualifying 
child of such taxpayer which shall be payable by the Sec-
retary only to the Trump account with respect to which 
such eligible individual is the account beneficiary. 
‘‘(b) ACCOUNT ESTABLISHED BY SECRETARY.—
‘‘(1) IN GENERAL.—In the case of any eligible 
individual that the Secretary determines is not the 
account beneficiary of any Trump account as of the 
qualifying date of such eligible individual, the Sec-
retary shall establish an account for the benefit of 
such eligible individual. 
‘‘(2) QUALIFYING
DATE.—For purposes of 
paragraph (1), the term ‘qualifying date’ means, 
with respect to an eligible individual, the first date 
on which a return of tax is filed by an individual 
with respect to whom such eligible individual is a 
qualifying child with respect to the taxable year to 
which such return relates. 
‘‘(3) NOTIFICATION.—In the case of any eligible 
individual for the benefit of whom the Secretary es-
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•HR 1 EH1S 
tablishes an account under paragraph (1), the Sec-
retary shall—
‘‘(A) notify any individual with respect to 
whom such eligible individual is a qualifying 
child for the taxable year described in para-
graph (2) of the establishment of such account, 
and 
‘‘(B) shall provide an opportunity to such 
individual to elect to decline the application of 
this subsection to such qualifying child. 
‘‘(4) DETERMINATION
OF
DEFAULT
TRUST-
EE.—For purposes of selecting a trustee for an ac-
count established under paragraph (1), the Sec-
retary shall take into account—
‘‘(A) the history of reliability and regu-
latory compliance of such trustee, 
‘‘(B) the customer service experience of 
such trustee, 
‘‘(C) the costs imposed by such trustee on 
the account or account beneficiary, and 
‘‘(D) to the extent practicable, the pref-
erences of any individual described in para-
graph (3)(A) with respect to such eligible indi-
vidual.
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•HR 1 EH1S 
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of sub-
section (a), the term eligible individual means an indi-
vidual—
‘‘(1) who is born after December 31, 2024, and 
before January 1, 2029, and 
‘‘(2) who is a United States citizen at birth. 
‘‘(d) SOCIAL SECURITY NUMBER REQUIRED.—
‘‘(1) IN GENERAL.—No credit shall be allowed 
under subsection (a) to a taxpayer unless such tax-
payer includes on the return of tax for the taxable 
year—
‘‘(A) such individual’s social security num-
ber, 
‘‘(B) if such individual is married, the so-
cial security number of such individual’s spouse, 
and 
‘‘(C) the social security number of the eli-
gible individual with respect to whom such cred-
it is allowed. 
‘‘(2) SOCIAL
SECURITY
NUMBER
DEFINED.—
For purposes of paragraph (1), the term ‘social se-
curity number’ shall have the meaning given such 
term in section 24(h)(7). 
‘‘(e) DEFINITIONS.—For purposes of this section—
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•HR 1 EH1S 
‘‘(1) QUALIFYING CHILD.—The term qualifying 
child has the meaning given such term in section 
152(c). 
‘‘(2) 
TRUMP
ACCOUNT; 
ACCOUNT
BENE-
FICIARY.—The terms ‘Trump account’ and ‘account 
beneficiary’ have the meaning given such terms in 
section 530A(b).’’. 
(b) PENALTY FOR NEGLIGENT CLAIM OR FRAUDU-
LENT CLAIM.—Part I of subchapter A of chapter 68 of 
subtitle F is amended by adding at the end the following 
new section: 
‘‘SEC. 6659. IMPROPER CLAIM FOR TRUMP ACCOUNT CON-
TRIBUTION PILOT PROGRAM CREDIT. 
‘‘(a) IN GENERAL.—In the case of any taxpayer that 
makes an excessive claim for a credit under section 
6434—
‘‘(1) if such excess is a result of negligence or 
disregard of the rules or regulations, there shall be 
imposed a penalty of $500, or 
‘‘(2) if such excess is a result of fraud, there 
shall be imposed a penalty of $1,000. 
‘‘(b) DEFINITIONS.—The terms ‘negligence’ and ‘dis-
regard’ have the same meaning as when such terms are 
used in section 6662.’’.
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(c) OMISSION OF CORRECT SOCIAL SECURITY NUM-
BER TREATED MATHEMATICAL OR CLERICAL ERROR.—
Section 6213(g)(2), as amended by the preceding provi-
sions 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 sub-
paragraph: 
‘‘(AA) an omission of a correct social secu-
rity number required under section 6434(d)(1) 
(relating to the Trump accounts contribution 
pilot program).’’. 
(d) CLERICAL AMENDMENTS.—
(1) The table of sections for subchapter B of 
chapter 65 is amended by adding at the end the fol-
lowing new item:
‘‘Sec. 6434. Trump accounts contribution pilot program.’’.
(2) The table of sections for part I of sub-
chapter A of chapter 68 of subtitle F is amended by 
inserting after the item relating to section 6658 the 
following new item:
‘‘Sec. 6659. Improper claim for Trump account contribution pilot program 
credit.’’.
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024.
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PART 3—INVESTING IN HEALTH OF AMERICAN 
FAMILIES AND WORKERS 
SEC. 110201. TREATMENT OF HEALTH REIMBURSEMENT AR-
RANGEMENTS 
INTEGRATED 
WITH 
INDI-
VIDUAL MARKET COVERAGE. 
(a) IN GENERAL.—Section 9815(b) is amended—
(1) by striking ‘‘EXCEPTION.—Notwithstanding 
subsection (a)’’ and inserting the following: ‘‘EXCEP-
TIONS.— 
‘‘(1) SELF-INSURED GROUP HEALTH PLANS.—
Notwithstanding subsection (a)’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) CUSTOM HEALTH OPTION AND INDIVIDUAL 
CARE EXPENSE ARRANGEMENTS.—
‘‘(A) IN GENERAL.—For purposes of this 
subchapter, a custom health option and indi-
vidual care expense arrangement shall be treat-
ed as meeting the requirements of section 9802 
and sections 2705, 2711, 2713, and 2715 of 
title XXVII of the Public Health Service Act. 
‘‘(B) CUSTOM HEALTH OPTION AND INDI-
VIDUAL
CARE
EXPENSE
ARRANGEMENTS
DE-
FINED.—For purposes of this section, the term 
‘custom health option and individual care ex-
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•HR 1 EH1S 
pense arrangement’ means a health reimburse-
ment arrangement—
‘‘(i) which is an employer-provided 
group health plan funded solely by em-
ployer contributions to provide payments 
or reimbursements for medical care subject 
to a maximum fixed dollar amount for a 
period, 
‘‘(ii) under which such payments or 
reimbursements may only be made for 
medical care provided during periods dur-
ing which the individual is covered—
‘‘(I) under individual health in-
surance coverage (other than coverage 
that consists solely of excepted bene-
fits), or 
‘‘(II) under part A and B of title 
XVIII of the Social Security Act or 
part C of such title, 
‘‘(iii) which meets the nondiscrimina-
tion requirements of subparagraph (C), 
‘‘(iv) which meets the substantiation 
requirements of subparagraph (D), and 
‘‘(v) which meets the notice require-
ments of subparagraph (E).
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‘‘(C) NONDISCRIMINATION.—
‘‘(i) IN
GENERAL.—An arrangement 
meets the requirements of this subpara-
graph if an employer offering such ar-
rangement to an employee within a speci-
fied class of employee—
‘‘(I) offers such arrangement to 
all employees within such specified 
class on the same terms, and 
‘‘(II) does not offer any other 
group health plan (other than an ac-
count-based group health plan or a 
group health plan that consists solely 
of excepted benefits) to any employees 
within such specified class. 
In the case of an employer who offers a 
group health plan provided through health 
insurance coverage in the small group mar-
ket (that is subject to section 2701 of the 
Public Health Service Act) to all employees 
within such specified class, subclause (II) 
shall not apply to such group health plan. 
‘‘(ii) 
SPECIFIED
CLASS
OF
EM-
PLOYEE.—For purposes of this subpara-
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graph, any of the following may be des-
ignated as a specified class of employee: 
‘‘(I) Full-time employees. 
‘‘(II) Part-time employees. 
‘‘(III) Salaried employees. 
‘‘(IV) Non-salaried employees. 
‘‘(V) Employees whose primary 
site of employment is in the same rat-
ing area. 
‘‘(VI) Employees who are in-
cluded in a unit of employees covered 
under a collective bargaining agree-
ment to which the employer is subject 
(determined under rules similar to the 
rules of section 105(h)). 
‘‘(VII) Employees who have not 
met a group health plan, or health in-
surance issuer offering group health 
insurance coverage, waiting period re-
quirement that satisfies section 2708 
of the Public Health Service Act. 
‘‘(VIII) Seasonal employees. 
‘‘(IX) Employees who are non-
resident aliens and who receive no 
earned income (within the meaning of
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•HR 1 EH1S 
section 911(d)(2)) from the employer 
which constitutes income from sources 
within the United States (within the 
meaning of section 861(a)(3)). 
‘‘(X) Such other classes of em-
ployees as the Secretary may des-
ignate. 
An employer may designate (in such man-
ner as is prescribed by the Secretary) two 
or more of the classes described in the pre-
ceding subclauses as the specified class of 
employees to which the arrangement is of-
fered for purposes of applying this sub-
paragraph. 
‘‘(iii) 
SPECIAL
RULE
FOR
NEW 
HIRES.—An employer may designate pro-
spectively so much of a specified class of 
employees as are hired after a date set by 
the employer. Such subclass of employees 
shall be treated as the specified class for 
purposes of applying clause (i). 
‘‘(iv) RULES FOR DETERMINING TYPE 
OF EMPLOYEE.—For purposes for clause 
(ii), any determination of full-time, part-
time, or seasonal employment status shall
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•HR 1 EH1S 
be made under rules similar to the rules of 
section 105(h) or 4980H, whichever the 
employer elects for the plan year. Such 
election shall apply with respect to all em-
ployees of the employer for the plan year. 
‘‘(v) 
PERMITTED
VARIATION.—For 
purposes of clause (i)(I), an arrangement 
shall not fail to be treated as provided on 
the same terms within a specified class 
merely 
because 
the 
maximum 
dollar 
amount of payments and reimbursements 
which may be made under the terms of the 
arrangement for the year with respect to 
each employee within such class—
‘‘(I) increases as additional de-
pendents of the employee are covered 
under the arrangement, and 
‘‘(II) increases with respect to a 
participant as the age of the partici-
pant increases, but not in excess of an 
amount equal to 300 percent of the 
lowest maximum dollar amount with 
respect to such a participant deter-
mined without regard to age.
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‘‘(D) SUBSTANTIATION REQUIREMENTS.—
An arrangement meets the requirements of this 
subparagraph if the arrangement has reason-
able procedures to substantiate—
‘‘(i) that the participant and any de-
pendents are, or will be, enrolled in cov-
erage described in subparagraph (B)(ii) as 
of the beginning of the plan year of the ar-
rangement (or as of the beginning of cov-
erage under the arrangement in the case of 
an employee who first becomes eligible to 
participate in the arrangement after the 
date notice is given with respect to the 
plan under subparagraph (E) (determined 
without regard to clause (iii) thereof), and 
‘‘(ii) any requests made for payment 
or reimbursement of medical care under 
the arrangement and that the participant 
and any dependents remain so enrolled. 
‘‘(E) NOTICE.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (iii), an arrangement meets 
the requirements of this subparagraph if, 
under the arrangement, each employee eli-
gible to participate is, not later than 60
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•HR 1 EH1S 
days before the beginning of the plan year, 
given written notice of the employee’s 
rights and obligations under the arrange-
ment which—
‘‘(I) is sufficiently accurate and 
comprehensive to apprise the employee 
of such rights and obligations, and 
‘‘(II) is written in a manner cal-
culated to be understood by the aver-
age employee eligible to participate. 
‘‘(ii) NOTICE
REQUIREMENTS.—Such 
notice shall include such information as the 
Secretary may by regulation prescribe. 
‘‘(iii) NOTICE
DEADLINE
FOR
CER-
TAIN EMPLOYEES.—In the case of an em-
ployee—
‘‘(I) who first becomes eligible to 
participate in the arrangement after 
the date notice is given with respect 
to the plan under clause (i) (deter-
mined without regard to this clause), 
or 
‘‘(II) whose employer is first es-
tablished fewer than 120 days before
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•HR 1 EH1S 
the beginning of the first plan year of 
the arrangement, 
the requirements of this subparagraph 
shall be treated as met if the notice re-
quired under clause (i) is provided not 
later than the date the arrangement may 
take effect with respect to such em-
ployee.’’. 
(b) INCLUSION OF CHOICE ARRANGEMENT PER-
MITTED BENEFITS ON W–2.—
(1) IN GENERAL.—Section 6051(a), as amend-
ed by the preceding provisions of this Act, is amend-
ed by striking ‘‘and’’ at the end of paragraph (18), 
by striking the period at the end of paragraph (19) 
and inserting ‘‘, and’’, and by inserting after para-
graph (19) the following new paragraph: 
‘‘(20) the total amount of permitted benefits for 
enrolled individuals under a custom health option 
and individual care expense arrangement (as defined 
in section 9815(b)(2)) with respect to such em-
ployee.’’. 
(c) TREATMENT OF CURRENT RULES RELATING TO 
CERTAIN ARRANGEMENTS.—
(1) NO INFERENCE.—To the extent not incon-
sistent with the amendments made by this section—
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•HR 1 EH1S 
(A) no inference shall be made from such 
amendments with respect to the rules pre-
scribed in the Federal Register on June 20, 
2019, (84 Fed. Reg. 28888) relating to health 
reimbursement arrangements and other ac-
count-based group health plans, and 
(B) any reference to custom health option 
and individual care expense arrangements shall 
for purposes of such rules be treated as includ-
ing a reference to individual coverage health re-
imbursement arrangements. 
(2) OTHER CONFORMING OF RULES.—The Sec-
retary of the Treasury, the Secretary of Health and 
Human Services, and the Secretary of Labor shall 
modify such rules as may be necessary to conform 
to the amendments made by this section. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2025. 
SEC. 110202. PARTICIPANTS IN CHOICE ARRANGEMENT ELI-
GIBLE FOR PURCHASE OF EXCHANGE INSUR-
ANCE UNDER CAFETERIA PLAN. 
(a) IN GENERAL.—Section 125(f)(3) is amended by 
adding at the end the following new subparagraph:
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•HR 1 EH1S 
‘‘(C) EXCEPTION
FOR
PARTICIPANTS
IN 
CHOICE ARRANGEMENT.—Subparagraph (A) 
shall not apply in the case of an employee par-
ticipating in a custom health option and indi-
vidual care expense arrangement (within the 
meaning of section 9815(b)(2)) offered by the 
employee’s employer.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110203. EMPLOYER CREDIT FOR CHOICE ARRANGE-
MENT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 is amended by adding at the end 
the following new section: 
‘‘SEC. 45BB. EMPLOYER CREDIT FOR CHOICE ARRANGE-
MENT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible employer, the CHOICE arrange-
ment credit determined under this section for any taxable 
year is an amount, with respect to each employee enrolled 
during the credit period in a CHOICE arrangement main-
tained by the employer, equal to—
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•HR 1 EH1S 
‘‘(1) $100 multiplied by the number of months 
for which the employee is so enrolled during the first 
year in the credit period, and 
‘‘(2) one-half of the dollar amount in effect 
under paragraph (1) for the taxable year, multiplied 
by the number of months for which the employee is 
so enrolled during the second year of the credit pe-
riod. 
‘‘(b) ARRANGEMENT MUST CONSTITUTE MINIMUM 
ESSENTIAL COVERAGE.—An employee shall not be taken 
into account under subsection (a) unless such employee’s 
eligibility for the CHOICE arrangement (determined with-
out regard to the employee being enrolled) would cause 
the employee to be treated under section 36B(c)(2) as 
being eligible for minimum essential coverage consisting 
of an eligible employer-sponsored plan (as defined in sec-
tion 5000A(f)(2)). 
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) 
CHOICE 
ARRANGEMENT.—The 
term 
‘CHOICE arrangement’ means a custom health op-
tion and individual care expense arrangement (as de-
fined in section 9815(b)(2)(B)). 
‘‘(2) CREDIT PERIOD.—The credit period with 
respect to an eligible employer is the first 2 one-year 
periods beginning with the month during which the
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•HR 1 EH1S 
employer first establishes a CHOICE arrangement 
on behalf of employees of the employer. 
‘‘(3) ELIGIBLE EMPLOYER.—The term ‘eligible 
employer’ means, with respect to any taxable year 
beginning in a calendar year, an employer who is not 
an applicable large employer for the calendar year 
under section 4980H. 
‘‘(d) INFLATION ADJUSTMENT.—
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning in a calendar year after 2026, the 
dollar amount in subsection (a) shall be increased by 
an amount equal to—
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which such taxable year begins by sub-
stituting ‘calendar year 2025’ for ‘calendar year 
2016’ in subparagraph (A)(ii) thereof. 
‘‘(2) ROUNDING.—If any amount after adjust-
ment under paragraph (1) is not a multiple of $10, 
such amount shall be rounded to the next lower mul-
tiple of $10.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) is amended by striking ‘‘plus’’ at 
the end of paragraph (40), by striking the period at the
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•HR 1 EH1S 
end of paragraph (41) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(42) the CHOICE arrangement credit deter-
mined under section 45BB(a).’’. 
(c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM TAX.—Section 38(c)(4)(B) is amended—
(1) by redesignating clauses (x), (xi), and (xii) 
as clauses (xi), (xii), and (xiii), respectively, and 
(2) by inserting after clause (ix) the following 
new clause: 
‘‘(x) the credit determined under sec-
tion 45BB,’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new item:
‘‘Sec. 45BB. Employer credit for CHOICE arrangement.’’.
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110204. INDIVIDUALS ENTITLED TO PART A OF MEDI-
CARE BY REASON OF AGE ALLOWED TO CON-
TRIBUTE TO HEALTH SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Section 223(c)(1)(B) is amended 
by striking ‘‘and’’ at the end of clause (ii), by striking 
the period at the end of clause (iii) and inserting ‘‘, and’’, 
and by adding at the end the following new clause:
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•HR 1 EH1S 
‘‘(iv) entitlement to hospital insurance 
benefits under part A of title XVIII of the 
Social Security Act by reason of section 
226(a) of such Act.’’. 
(b) TREATMENT
OF
HEALTH
INSURANCE
PUR-
CHASED FROM ACCOUNT.—Section 223(d)(2)(C)(iv) is 
amended by inserting ‘‘and who is not an eligible indi-
vidual’’ after ‘‘who has attained the age specified in sec-
tion 1811 of the Social Security Act’’. 
(c) COORDINATION WITH PENALTY ON DISTRIBU-
TIONS
NOT
USED
FOR
QUALIFIED
MEDICAL
EX-
PENSES.—Section 223(f)(4)(C) is amended by striking 
‘‘Subparagraph (A)’’ and inserting ‘‘Except in the case of 
an eligible individual, subparagraph (A)’’
(d) CONFORMING AMENDMENT.—Section 223(b)(7) 
is amended by inserting ‘‘(other than an entitlement to 
benefits described in subsection (c)(1)(B)(iv))’’ after ‘‘So-
cial Security Act’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to months beginning after Decem-
ber 31, 2025. 
SEC. 110205. TREATMENT OF DIRECT PRIMARY CARE SERV-
ICE ARRANGEMENTS. 
(a) IN GENERAL.—Section 223(c)(1) is amended by 
adding at the end the following new subparagraph: