652 
(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est System lands reserved or withdrawn from the public 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. 
SEC. 80312. LONG-TERM CONTRACTS FOR THE BUREAU OF 
LAND MANAGEMENT. 
(a) IN GENERAL.—For each of fiscal years 2025 
through 2034, the Director of the Bureau of Land 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 
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653 
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)). 
(c) 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. 
(d) COVERED PUBLIC LANDS DEFINED.—The term 
‘‘covered public lands’’ has the meaning given the term 
‘‘public lands’’ in section 103 of the Federal Land Policy 
and Management Act of 1976 (43 U.S.C. 1702), except 
that the term includes Coos Bay Wagon Road Grant lands 
and Oregon and California Railroad Grant lands. 
SEC. 80313. TIMBER PRODUCTION FOR THE FOREST 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— 
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(1) in total, equal or exceed the volume that is 
25 percent higher than the total volume harvested 
on such lands during fiscal year 2024; and 
(2) are in accordance with the applicable forest 
plan, including the allowable sale quantity or 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— 
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(I) the forest management activ-
ity to be carried out under such au-
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-
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pared by the Forest Service for a unit of the Na-
tional Forest System pursuant to section 6 of the 
Forest and Rangeland Renewable Resources Plan-
ning Act of 1974 (16 U.S.C. 1604). 
SEC. 80314. TIMBER PRODUCTION FOR THE BUREAU OF 
LAND MANAGEMENT. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this title, the Secretary of the 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 total volume harvested 
on such lands during fiscal year 2024; and 
(2) are in accordance with the applicable forest 
plan. 
(b) DEFINITIONS.—In this section: 
(1) COVERED PUBLIC LANDS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘covered public 
lands’’ has the meaning given the term ‘‘public 
lands’’ in section 103 of the Federal Land Pol-
icy and Management Act of 1976 (43 U.S.C. 
1702), except that the term includes Coos Bay 
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Wagon Road Grant lands and Oregon and Cali-
fornia Railroad Grant lands. 
(B) EXCLUSIONS.—The term ‘‘covered 
public lands’’ does not include lands— 
(i) that are included in the National 
Wilderness Preservation System; or 
(ii) on which timber harvesting for 
any purpose is prohibited by Federal 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). 
SEC. 80315. BUREAU OF LAND MANAGEMENT LAND IN NE-
VADA. 
(a) LYON COUNTY.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this title, the Secretary of 
the Interior (referred to in this section as the ‘‘Sec-
retary’’), in accordance with this section and the 
Federal Land Policy and Management Act of 1976 
(43 U.S.C. 1701), shall identify and offer for sale to 
the City of Fernley, Nevada, all right, title, and in-
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terest of the United States in and to the Federal 
land— 
(A) located in Lyon County, Nevada; and 
(B) identified as ‘‘Fernley Land Convey-
ance Boundary’’ on the map entitled ‘‘Fernley 
Economic Development Act’’ and dated October 
6, 2020. 
(2) COSTS.—As a condition of the conveyance 
of the Federal land under paragraph (1), the City 
of Fernley, Nevada, shall pay— 
(A) an amount equal to the appraised 
value determined in accordance with subsection 
(e)(2); and 
(B) all costs related to the conveyance of 
the Federal land to the City, including all sur-
veys, appraisals, and other associated adminis-
trative costs. 
(b) CLARK COUNTY.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this title, the Secretary, in 
accordance with this section and the Federal Land 
Policy and Management Act of 1976 (43 U.S.C. 
1701), shall identify and offer for sale all right, title, 
and interest of the United States in and to Federal 
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659 
land located in Clark County, Nevada that has been 
identified— 
(A) as suitable for disposal in the Las 
Vegas Resource Management Plan in existence 
on the date of enactment of this title; or 
(B) as ‘‘Modified Existing Disposal’’ on 
the map entitled ‘‘Southern Nevada Economic 
Development and Conservation Act Disposal 
Map’’ and dated February 6, 2025. 
(2) COMPLIANCE WITH LOCAL PLANNING AND 
ZONING LAWS.—Before carrying out a sale of Fed-
eral land under paragraph (1), Clark County shall 
submit to the Secretary a certification that any enti-
ty selected to purchase land through a competitive 
bidding 
process 
under 
subsection 
(e)(1)(A)has 
agreed to comply with— 
(A) zoning ordinances of the county; and 
(B) any master plan for the area approved 
by the county or region. 
(3) AFFORDABLE HOUSING.— 
(A) IN GENERAL.—Upon the request Clark 
County, the Secretary shall make the Federal 
land identified as ‘‘Modified Existing Disposal’’ 
on the map entitled ‘‘Southern Nevada Eco-
nomic Development and Conservation Act Dis-
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posal Map’’ and dated February 6, 2025 avail-
able at less than fair market value for afford-
able housing, in accordance with section 7(b) of 
the Southern Nevada Public Land Management 
Act of 1998 (Public Law 105–263; 112 Stat. 
2349). 
(B) EXEMPTION FROM NOTICE OF REALTY 
ACTION REQUIREMENT.—If any entity seeks to 
use covered land for affordable housing pur-
poses under subparagraph (A), the entity— 
(i) shall not be required to comply no-
tice of realty action requirements with re-
spect to the covered land; but 
(ii) before using the covered land for 
affordable housing purposes, shall provide 
for a period of not less than 14 days ade-
quate public notice of the use of the cov-
ered land. 
(4) SAVINGS CLAUSE.—Nothing in this section 
shall be construed to affect Federal lands previously 
identified for disposal under the Southern Nevada 
Public Land Management Act of 1998 (Public Law 
105–263; 112 Stat. 2343) nor the disposition of pro-
ceeds for such lands prior to the date of enactment 
of this title. 
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661 
(c) WASHOE COUNTY.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this title, the Secretary, in 
accordance with this section and the Federal Land 
Policy and Management Act of 1976 (43 U.S.C. 
1701), shall identify and offer for sale all right, title, 
and interest of the United States in and to Federal 
land located in Washoe County, Nevada, that has 
been identified— 
(A) as suitable for disposal in the Carson 
City Consolidated Resource Management Plan 
in existence on the date of enactment of this 
title; or 
(B) as ‘‘BLM Land for Disposal’’ on the 
map entitled ‘‘Washoe County Land Disposals’’ 
and dated February 7, 2025. 
(2) EVALUATION
OF
ADDITIONAL
LAND
FOR 
POTENTIAL DISPOSAL.— 
(A) IN
GENERAL.—The Secretary shall, 
not later than 1 year after the date of enact-
ment of this title, evaluate the parcels of Fed-
eral land depicted as ‘‘Additional BLM Land 
Potentially Available for Disposal’’ on the map 
entitled ‘‘Washoe County Land Disposals’’ and 
dated February 7, 2025, to assess the suit-
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662 
ability of the evaluated Federal land for dis-
posal in accordance with section 203(a) of the 
Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1713(a)). 
(B) SALE.—The parcels of Federal land 
identified by the Secretary as suitable for dis-
posal under subparagraph (A) may be offered 
for sale in accordance with this section. 
(3) JOINT SELECTION REQUIRED; DETERMINA-
TION
REGARDING
SUITABILITY
FOR
AFFORDABLE 
HOUSING.— 
(A) IN
GENERAL.—The Secretary and 
Washoe County shall jointly select which par-
cels of the Federal land described in paragraph 
(2)(A) and identified as suitable for disposal in 
subparagraph (B) to offer for sale under this 
subsection. 
(B) DETERMINATION.—During the selec-
tion process under subparagraph (A), the Sec-
retary and Washoe County shall evaluate 
whether any parcels of the Federal land de-
scribed in that subparagraph are suitable for 
affordable housing. 
(C) CONVEYANCE.—If a parcel of Federal 
land is determined to be suitable for affordable 
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663 
housing under subparagraph (B), on request of 
a State or local governmental entity, the appli-
cable parcel of Federal land shall be made 
available at less than fair market value to the 
governmental entity in accordance with section 
7(b) of the Southern Nevada Public Land Man-
agement Act of 1998 (Public Law 105–263; 
112 Stat. 2349). 
(D) SURVEY.—The exact acreage and legal 
description of a parcel of Federal land to be 
conveyed under subparagraph (C) shall be de-
termined by a survey satisfactory to the Sec-
retary. 
(4) COMPLIANCE WITH LOCAL PLANNING AND 
ZONING LAWS.—Before carrying out a sale of Fed-
eral land under paragraph (2), Washoe County shall 
submit to the Secretary a certification that any enti-
ty selected to purchase land through a competitive 
bidding process under subsection (e)(1)(A) has 
agreed to comply with— 
(A) Washoe County zoning ordinances; and 
(B) any master plan for the area approved 
by Washoe County or region. 
(5) POSTPONEMENT; EXCLUSION FROM SALE.— 
At the request of Washoe County, the Secretary 
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664 
shall postpone or exclude from sale all or a portion 
of the Federal land described in paragraph (2). 
(6) AFFORDABLE HOUSING.— 
(A) DETERMINATION
REGARDING
SUIT-
ABILITY
FOR
AFFORDABLE
HOUSING.—Not 
later than 90 days after the date of enactment 
of this title, the Secretary shall conduct a re-
view of the Federal land described in subpara-
graph (C) to determine the suitability of the 
Federal land for affordable housing. 
(B) AUTHORIZATION.—Upon the request 
of a State or local governmental entity, the Sec-
retary shall make the Federal land described in 
subparagraph (C) available at less than fair 
market value for affordable housing, in accord-
ance with section 7(b) of the Southern Nevada 
Public Land Management Act of 1998 (Public 
Law 105–263; 112 Stat. 2349). 
(C) DESCRIPTION
OF
FEDERAL
LAND.— 
The Federal land referred to in subparagraphs 
(A) and (B) is the land identified as ‘‘BLM 
Land for Disposal Only for Affordable Hous-
ing’’ on the map entitled ‘‘Washoe County Land 
Disposals’’ and dated February 7, 2025. 
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665 
(D) EXEMPTION FROM NOTICE OF REALTY 
ACTION REQUIREMENT.—If any entity seeks to 
use covered land for affordable housing pur-
poses under subparagraph (B), the entity— 
(i) shall not be required to comply no-
tice of realty action requirements with re-
spect to the covered land; but 
(ii) before using the covered land for 
affordable housing purposes, shall provide 
for a period of not less than 14 days ade-
quate public notice of the use of the cov-
ered land. 
(d) PERSHING COUNTY CHECKERBOARD RESOLU-
TION AND DISPOSAL.— 
(1) SALE OR EXCHANGE OF ELIGIBLE LAND.— 
(A) AUTHORIZATION
OF
CONVEYANCE.— 
Not later than 2 years after the date of the en-
actment of this title, the Secretary, in accord-
ance with this section and subject to valid exist-
ing rights, shall conduct sales or exchanges of 
all right, title, and interest of the United States 
in and to the eligible land. 
(B) JOINT SELECTION REQUIRED.—After 
providing public notice, the Secretary and the 
County shall jointly select parcels of eligible 
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land to be offered for sale or exchange under 
subparagraph (A). 
(C) LAND EXCHANGES.— 
(i) IN GENERAL.—An exchange of eli-
gible land under subparagraph (A) shall be 
consistent with section 206(a) of the Fed-
eral Land Policy and Management Act of 
1976 (43 U.S.C. 1716). 
(ii) EQUAL VALUE EXCHANGE.— 
(I) IN GENERAL.—The value of 
the eligible land and private land to 
be exchanged under subparagraph 
(A)— 
(aa) shall be equal; or 
(bb) shall be made equal in 
accordance with subclause (II). 
(II) EQUALIZATION.— 
(aa) SURPLUS OF ELIGIBLE 
LAND.—With respect to the eligi-
ble land and private land to be 
exchanged under subparagraph 
(A), if the value of the eligible 
land exceeds the value of the pri-
vate land, the value of the eligible 
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land and the private land shall be 
equalized by— 
(AA) the owner of the 
private land making a cash 
equalization payment to the 
Secretary; 
(BB) 
adding 
private 
land to the exchange; or 
(CC) removing eligible 
land from the exchange. 
(bb) SURPLUS
OF
PRIVATE 
LAND.—With respect to the eligi-
ble land and private land to be 
exchanged under subparagraph 
(A), if the value of the private 
land exceeds the value of the eli-
gible land, the value of the pri-
vate land and the eligible land 
shall be equalized by— 
(AA) 
the 
Secretary 
making a cash equalization 
payment to the owner of the 
private land, in accordance 
with section 206(b) of the 
Federal Land Policy and 
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668 
Management Act of 1976 
(43 U.S.C. 1716(b)); 
(BB) 
adding 
eligible 
land to the exchange; or 
(CC) removing private 
land from the exchange. 
(iii) ADJACENT LAND.—To the extent 
practicable, the Secretary shall seek to 
enter into agreements with one or more 
owners of private land adjacent to the eli-
gible land for the exchange of the private 
land for the eligible land, if the Secretary 
determines that the exchange would con-
solidate Federal land ownership and facili-
tate improved Federal land management. 
(D) DEADLINE FOR SALE OR EXCHANGE; 
EXCLUSIONS.— 
(i) DEADLINE.—Not later than 2 
years after the date on which the eligible 
land is jointly selected under subparagraph 
(B), the Secretary shall offer for sale or 
exchange the parcels of eligible land jointly 
selected under that subparagraph. 
(ii) 
POSTPONEMENT
OR
EXCLU-
SION.—The Secretary or the County may 
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669 
postpone or exclude from sale or exchange 
all or a portion of the eligible land jointly 
selected under subparagraph (B) for emer-
gency ecological or safety reasons. 
(2) SALE OF ENCUMBERED LAND.— 
(A) AUTHORIZATION
OF
CONVEYANCE.— 
Not later than 2 years after the date of the en-
actment of this title and subject to valid exist-
ing rights held by third parties, the Secretary 
shall offer to convey to qualified entities, for 
fair market value, the remaining right, title, 
and interest of the United States, in and to the 
encumbered land. 
(B) OFFER TO CONVEY.—Not later than 
180 days after the date on which the Secretary 
receives a fair market offer from a qualified en-
tity for the conveyance of encumbered land, the 
Secretary shall accept the fair market value 
offer. 
(C) CONVEYANCE.—Not later than 180 
days after the date of acceptance by the Sec-
retary of an offer from a qualified entity under 
subparagraph (B) and completion of a sale for 
all or part of the applicable portion of encum-
bered land to the highest qualified entity, the 
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670 
Secretary, by delivery of an appropriate deed, 
patent, or other valid instrument of conveyance, 
shall convey to the qualified entity all remaining 
right, title, and interest of the United States in 
and to the applicable portion of the encumbered 
land. 
(D) MERGER.—Subject to valid existing 
rights held by third parties, on delivery of the 
instrument of conveyance to the qualified entity 
under subparagraph (C), the prior interests in 
the locatable minerals and the right to use the 
surface for mineral purposes held by the quali-
fied entity under a mining claim, millsite, tun-
nel site, or any other Federal land use author-
ization applicable to the encumbered land in-
cluded in the instrument of conveyance, shall 
merge with all right, title, and interest conveyed 
to the qualified entity by the United States 
under this section to ensure that the qualified 
entity receives fee simple title to the purchased 
encumbered land. 
(3) DEFINITIONS.—In this subsection: 
(A) COUNTY.—The term ‘‘County’’ means 
Pershing County, Nevada. 
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671 
(B) ELIGIBLE LAND.—The term ‘‘eligible 
land’’ means any land administered by the Sec-
retary, acting through the Director of the Bu-
reau of Land Management— 
(i) that is within the area identified 
on the Map as ‘‘Checkerboard Lands Reso-
lution Area’’ that is designated for disposal 
by the Secretary through— 
(I) the Winnemucca Consolidated 
Resource Management Plan; or 
(II) any subsequent amendment 
or revision to the management plan 
that is undertaken with full public in-
volvement; 
(ii) that is the land identified on the 
Map as ‘‘Additional Lands Eligible for 
Disposal’’; and 
(iii) that is not encumbered land. 
(C) ENCUMBERED LAND.—The term ‘‘en-
cumbered land’’ means any land administered 
by the Secretary, acting through the Director of 
the Bureau of Land Management, within the 
area identified on the Map as ‘‘Checkerboard 
Resolution Area’’ that is encumbered by mining 
claims, millsites, or tunnel sites. 
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672 
(D) MAP.—The term ‘‘Map’’ means the 
map titled ‘‘Pershing County Checkerboard 
Lands Resolution’’ and dated July 8, 2024. 
(E) 
QUALIFIED
ENTITY.—The 
term 
‘‘qualified entity’’ means, with respect to a por-
tion of encumbered land— 
(i) the owner of a mining claim, mill-
site, or tunnel site located on a portion of 
the encumbered land on the date of the en-
actment of this title; and 
(ii) a successor in interest of an owner 
described in clause (i). 
(e) APPRAISALS AND METHODS OF SALE.— 
(1) METHOD OF SALE.—The sale or exchange 
of eligible lands under this section shall be— 
(A) through a competitive bidding process; 
(B) for not less than fair market value, in 
accordance with paragraphs (2) and (3); and 
(C) subject to valid existing rights. 
(2) APPRAISALS.—Any sales or exchanges car-
ried out under this section shall be for not less than 
fair market value, based on an appraisal that is con-
ducted in accordance with— 
(A) the Uniform Appraisal Standards for 
Federal Land Acquisitions; and 
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(B) the Uniform Standards of Professional 
Appraisal Practice. 
(3) MASS APPRAISALS.—Not later than 2 years 
after the date of the enactment of this title, and 
every 5 years thereafter, the Secretary shall— 
(A) conduct a mass appraisal of eligible 
land to be sold or exchanged under this section; 
(B) prepare an evaluation analysis for each 
land transaction under this section; and 
(C) make available to the public the results 
of the mass appraisals conducted under sub-
paragraph (A). 
(f) COSTS.—The qualified entity or entity selected 
through a competitive bidding process to purchase or ex-
change land, as appropriate, shall pay all costs associated 
with sales or exchanges carried out under this section. 
(g) DISPOSITION OF PROCEEDS.—Amounts received 
from the sale of land under this section shall be deposited 
in the general fund of the Treasury. 
(h) MAP AND LEGAL DESCRIPTION.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this title, the Secretary 
shall finalize the maps and legal descriptions of the 
land to be sold or exchanged under this section. 
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(2) CONTROLLING DOCUMENT.—In the case of 
a discrepancy between the maps and legal descrip-
tions finalized under paragraph (1), the map shall 
control. 
(3) CORRECTIONS.—The Secretary may correct 
minor errors in the maps or the legal descriptions fi-
nalized under paragraph (1). 
(4) MAP ON FILE.—The maps and legal de-
scriptions finalized under paragraph (1) shall be 
kept on file and available for public inspection in 
each appropriate office of the Bureau of Land Man-
agement. 
(i) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed as authorizing the conveyance of 
any lands administered by the National Park Service. 
SEC. 80316. FOREST SERVICE LAND IN NEVADA. 
(a) IN GENERAL.—Not later than 2 years after the 
date of enactment of this title, the Secretary of Agri-
culture (referred to in this section as the ‘‘Secretary’’), 
in accordance with this section, shall identify and offer 
for sale, subject to subsection (b), all right, title, and inter-
est of the United States in and to covered Federal land 
located in Washoe County, Nevada. 
(b) JOINT SELECTION REQUIRED; DETERMINATION 
REGARDING SUITABILITY FOR AFFORDABLE HOUSING.— 
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(1) IN GENERAL.—The Secretary and Washoe 
County shall jointly select which parcels of covered 
Federal land to offer for sale under subsection (a). 
(2) DETERMINATION.—During the selection 
process under paragraph (1), the Secretary and 
Washoe County shall evaluate whether any parcels 
of the Federal land described in that paragraph are 
suitable for affordable housing. 
(3) CONVEYANCE.—If a parcel of Federal land 
is determined to be suitable for affordable housing 
under paragraph (2), on request of a State or local 
governmental entity, the applicable parcel of Federal 
land shall be made available at less than fair market 
value to the governmental entity in accordance with 
section 7(b) of the Southern Nevada Public Land 
Management Act of 1998 (Public Law 105–263; 
112 Stat. 2349). 
(4) SURVEY.—The exact acreage and legal de-
scription of a parcel of Federal land to be conveyed 
under paragraph (3) shall be determined by a survey 
satisfactory to the Secretary. 
(5) COMPLIANCE WITH LOCAL PLANNING AND 
ZONING LAWS.—Before carrying out a sale of cov-
ered Federal land under subsection (a), Washoe 
County shall submit to the Secretary a certification 
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that any entity selected to purchase covered Federal 
land through a competitive bidding process under 
subsection (d)(1)(A) has agreed to comply with— 
(A) Washoe County zoning ordinances; and 
(B) any master plan for the area approved 
by Washoe County or region. 
(6) POSTPONEMENT; EXCLUSION FROM SALE.— 
At the request of Washoe County, the Secretary 
shall postpone or exclude from sale all or a portion 
of the Federal land described in subsection (a). 
(c) AFFORDABLE HOUSING.— 
(1) DETERMINATION REGARDING SUITABILITY 
FOR
AFFORDABLE
HOUSING.—Not later than 90 
days after the date of enactment of this title, the 
Secretary shall conduct a review of the additional 
Federal land to determine the suitability of the addi-
tional Federal land for affordable housing. 
(2) AUTHORIZATION.—Upon the request of a 
State or local governmental entity and subject to 
valid existing rights, the Secretary shall make the 
additional Federal land available at less than fair 
market value for affordable housing, in accordance 
with section 7(b) of the Southern Nevada Public 
Land Management Act of 1998 (Public Law 105– 
263; 112 Stat. 2349). 
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(d) APPRAISALS AND METHOD OF SALE.— 
(1) METHOD OF SALE.—The sale or exchange 
of any lands under this section shall be— 
(A) through a competitive bidding process; 
(B) except as provided in subsections 
(b)(3) and (c), for not less than fair market 
value, in accordance with paragraphs (2) and 
(3); and 
(C) subject to valid existing rights. 
(2) APPRAISALS.—Any sales or exchanges car-
ried out under this section shall be for not less than 
fair market value, based on an appraisal that is con-
ducted in accordance with— 
(A) the Uniform Appraisal Standards for 
Federal Land Acquisitions; and 
(B) the Uniform Standards of Professional 
Appraisal Practice. 
(3) MASS APPRAISALS.—Not later than 2 years 
after the date of the enactment of this title, and 
every 5 years thereafter, the Secretary shall— 
(A) conduct a mass appraisal of eligible 
land to be sold or exchanged under this section; 
(B) prepare an evaluation analysis for each 
land transaction under this section; and 
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(C) make available to the public the results 
of the mass appraisals conducted under sub-
paragraph (A). 
(e) COSTS OF CONVEYANCE.—Any entity selected to 
purchase covered Federal land or additional Federal land 
under this section shall pay all costs associated with the 
sale. 
(f) DISPOSITION OF PROCEEDS.—The proceeds from 
the sale of additional Federal land and covered Federal 
land required under this section shall be deposited in the 
general fund of the Treasury. 
(g) MAP AND LEGAL DESCRIPTION.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this title, the Secretary 
shall finalize the maps and legal descriptions of the 
additional Federal land and covered Federal land to 
be sold under this section. 
(2) CONTROLLING DOCUMENT.—In the case of 
a discrepancy between the maps and legal descrip-
tions finalized under paragraph (1), the map shall 
control. 
(3) CORRECTIONS.—The Secretary and Washoe 
County, by mutual agreement, may correct minor er-
rors in the maps or the legal descriptions finalized 
under paragraph (1). 
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679 
(4) MAP ON FILE.—The maps and legal de-
scriptions finalized under paragraph (1) shall be 
kept on file and available for public inspection in 
each appropriate office of the Bureau of Land Man-
agement. 
(h) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed as authorizing the conveyance of 
any lands administered by the National Park Service. 
(i) DEFINITIONS.—In this section: 
(1) ADDITIONAL
FEDERAL
LAND.—The term 
‘‘additional Federal land’’ means the Federal land 
identified as ‘‘USFS Land for Disposal Only for Af-
fordable Housing’’ on the map entitled ‘‘Washoe 
County Land Disposals’’ and dated February 7, 
2025. 
(2) COVERED FEDERAL LAND.—The term ‘‘cov-
ered Federal land’’ means ‘‘USFS Land for Dis-
posal’’ on the map entitled ‘‘Washoe County Land 
Disposal’’ and dated February 7, 2025. 
SEC. 80317. FEDERAL LAND IN UTAH. 
(a) CONVEYANCE OF BUREAU OF LAND MANAGE-
MENT LAND TO COVERED ENTITY.—Not later than 180 
days after the date of enactment of this title, the Secretary 
shall convey to the covered entity all right, title, and inter-
est of the United States in and to the covered land. 
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680 
(b) REQUIREMENTS.—The conveyance of covered 
land under this section shall be— 
(1) subject to valid existing rights; and 
(2) for not less than fair market value, based 
on an appraisal that is conducted in accordance 
with— 
(A) the Uniform Appraisal Standards for 
Federal Land Acquisitions; and 
(B) the Uniform Standards of Professional 
Appraisal Practice. 
(c) COSTS
OF CONVEYANCE.—The covered entity 
shall pay all costs associated with the conveyances re-
quired under subsection (a). 
(d) PROCEEDS FROM CONVEYANCE.—The proceeds 
from the conveyances required under subsection (a) shall 
be deposited in the general fund of the Treasury. 
(e) MAP AND LEGAL DESCRIPTION.— 
(1) IN
GENERAL.—Not later than 120 days 
after the date of enactment of this title, the Sec-
retary shall finalize the maps and legal descriptions 
of the covered land to be conveyed under this sec-
tion. 
(2) CONTROLLING DOCUMENT.—In the case of 
a discrepancy between the maps and legal descrip-
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681 
tions finalized under paragraph (1), the map shall 
control. 
(3) CORRECTIONS.—The Secretary and the cov-
ered entity, by mutual agreement, may correct minor 
errors in the maps or the legal descriptions finalized 
under paragraph (1). 
(4) MAP ON FILE.—The maps and legal de-
scriptions finalized under paragraph (1) shall be 
kept on file and available for public inspection in 
each appropriate office of the Forest Service. 
(f) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed as authorizing the conveyance of 
any lands administered by the National Park Service. 
(g) DEFINITIONS.—In this section: 
(1) COVERED ENTITY.—The term ‘‘covered en-
tity’’ means the following: 
(A) Beaver County, Utah, with respect to 
covered land depicted on the map entitled 
‘‘Beaver County Land Conveyance’’ and dated 
March 8, 2025. 
(B) The City of St. George, Utah, with re-
spect to covered land depicted on the map enti-
tled ‘‘City of St. George, Utah, Land Convey-
ance’’ and dated March 28, 2025. 
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682 
(C) Washington County, Utah, with re-
spect to covered land depicted on— 
(i) the map entitled ‘‘Washington 
County Land Conveyance - East Half’’ and 
dated April 11, 2025; and 
(ii) the map entitled ‘‘Washington 
County Land Conveyance - West Half’’ 
and dated April 9, 2025. 
(D) Washington County Water Conser-
vancy District, with respect to covered land de-
picted on the map entitled ‘‘Washington County 
Water Conservancy District Land Conveyance’’ 
and dated March 27, 2025. 
(2) COVERED LAND.—The term ‘‘covered land’’ 
means the following: 
(A) On the map entitled ‘‘Beaver County 
Land Conveyance’’ and dated March 8, 2025, 
the following parcels: 
(i) The approximately 10.32 acres de-
picted as ‘‘Parcel 1’’. 
(ii) The approximately 10.81 acres de-
picted as ‘‘Parcel 2’’. 
(iii) The approximately 40.83 acres 
depicted as ‘‘Parcel 3’’. 
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683 
(B) On the map entitled ‘‘City of St. 
George, Utah, Land Conveyance’’ and dated 
March 28, 2025, the following parcels: 
(i) The approximately 203.37 acres 
depicted as ‘‘Airport’’. 
(ii) The approximately 16.48 acres de-
picted as ‘‘Brigham Road’’. 
(iii) The approximately 9.57 acres de-
picted as ‘‘Curly Hollow’’. 
(iv) The approximately 11.52 acres 
depicted as ‘‘Devario Site’’. 
(v) The approximately 105.55 acres 
depicted as ‘‘Graveyard Dam’’. 
(vi) The approximately 4.88 acres de-
picted as ‘‘Gunlock Arsenic Plant’’. 
(vii) The approximately 1.17 acres de-
picted as ‘‘Gunlock Filter Station’’. 
(viii) The approximately 0.92 acres 
depicted as ‘‘Gunlock#1’’. 
(ix) The approximately 0.92 acres de-
picted as ‘‘Gunlock#2’’. 
(x) The approximately 0.92 acres de-
picted as ‘‘Gunlock#3’’. 
(xi) The approximately 0.92 acres de-
picted as ‘‘Gunlock#4’’. 
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684 
(xii) The approximately 0.92 acres de-
picted as ‘‘Gunlock#5’’. 
(xiii) The approximately 0.92 acres 
depicted as ‘‘Gunlock#6’’. 
(xiv) The approximately 0.92 acres 
depicted as ‘‘Gunlock#7’’. 
(xv) The approximately 1.1 acres de-
picted as ‘‘Gunlock#8’’. 
(xvi) The approximately 0.92 acres 
depicted as ‘‘Gunlock#9’’. 
(xvii) The approximately 0.92 acres 
depicted as ‘‘Gunlock#10’’. 
(xviii) The approximately 4.34 acres 
depicted as ‘‘Man O War Connecter’’. 
(xix) The approximately 36.56 acres 
depicted as ‘‘Sun River’’. 
(xx) The approximately 31.22 acres 
depicted as ‘‘Treatment Plant’’. 
(xxi) The approximately 3.75 acres 
depicted as ‘‘Virgin River Site’’. 
(xxii) The approximately 82.27 acres 
depicted as ‘‘Western Corridor (100’ 
ROW)’’. 
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685 
(C) On the map entitled ‘‘Washington 
County Land Conveyance - East Half’’ and 
dated April 11, 2025, the following parcels: 
(i) The approximately 330.58 acres 
depicted as ‘‘Parcel 1’’. 
(ii) The approximately 287.02 acres 
depicted as ‘‘Parcel 2’’. 
(iii) The approximately 279.72 acres 
depicted as ‘‘Parcel 3’’. 
(iv) The approximately 10.67 acres 
depicted as ‘‘Parcel 4’’. 
(v) The approximately 213.56 acres 
depicted as ‘‘Parcel 6’’. 
(vi) The approximately 180.51 acres 
depicted as ‘‘Parcel 11’’. 
(vii) The approximately 186.14 acres 
depicted as ‘‘Parcel 12’’. 
(viii) The approximately 153.74 acres 
depicted as ‘‘Parcel 13’’. 
(ix) The approximately 711.56 acres 
depicted as ‘‘Parcel 15’’. 
(x) The approximately 52.28 acres de-
picted as ‘‘Parcel 16’’. 
(xi) The approximately 197.52 acres 
depicted as ‘‘Parcel 17’’. 
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686 
(xii) The approximately 311.5 acres 
depicted as ‘‘Parcel 19’’. 
(xiii) The approximately 628.76 acres 
depicted as ‘‘Parcel 20’’. 
(xiv) The approximately 364.31 acres 
depicted as ‘‘Parcel 21’’. 
(xv) The approximately 921.52 acres 
depicted as ‘‘Parcel 22’’. 
(xvi) The approximately 129.77 acres 
depicted as ‘‘Parcel 23’’. 
(D) On the map entitled ‘‘Washington 
County Land Conveyance-West Half’’ and 
dated April 9, 2025, the following parcels: 
(i) The approximately 338.6 acres de-
picted as ‘‘Parcel 5’’. 
(ii) The approximately 487.13 acres 
depicted as ‘‘Parcel 7’’. 
(iii) The approximately 121.08 acres 
depicted as ‘‘Parcel 8’’. 
(iv) The approximately 64.58 acres 
depicted as ‘‘Parcel 9’’. 
(v) The approximately 62.49 acres de-
picted as ‘‘Parcel 10’’. 
(vi) The approximately 404.63 acres 
depicted as ‘‘Parcel 14’’. 
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687 
(vii) The approximately 55.01 acres 
depicted as ‘‘Parcel 18’’. 
(E) On the map entitled ‘‘Washington 
County Water Conservancy District Land Con-
veyance’’ and dated March 27, 2025, the fol-
lowing parcels: 
(i) 
The 
approximately 
35.955036 
acres depicted as ‘‘Parcel 01’’. 
(ii) The approximately 22.836384 
acres depicted as ‘‘Parcel 02’’. 
(iii) The approximately 29.321031 
acres depicted as ‘‘Parcel 04’’. 
(iv) 
The 
approximately 
5.307719 
acres depicted as ‘‘Parcel 05’’. 
(v) The approximately 5.256227 acres 
depicted as ‘‘Parcel 06’’. 
(vi) The approximately 18.162944 
acres depicted as ‘‘Parcel 07’’. 
(vii) The approximately 10.199554 
acres depicted as ‘‘Parcel 08’’. 
(viii) The approximately 32.490829 
acres depicted as ‘‘Parcel 09’’. 
(ix) 
The 
approximately 
2.609287 
acres depicted as ‘‘Parcel 10’’. 
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688 
(x) The approximately 4.358646 acres 
depicted as ‘‘Parcel 11’’. 
(xi) The approximately 534.961903 
acres depicted as ‘‘Parcel 12’’. 
(xii) The approximately 0.213103 
acres depicted as ‘‘Parcel 13’’. 
(xiii) The approximately 2.977254 
acres depicted as ‘‘Parcel 14’’. 
(xiv) The approximately 13.315086 
acres depicted as ‘‘Parcel 15’’. 
(xv) The approximately 418.173711 
acres depicted as ‘‘Parcel 16’’. 
(xvi) 
The 
approximately 
3.00085 
acres depicted as ‘‘Parcel 17’’. 
(xvii) The approximately 8.453333 
acres depicted as ‘‘Parcel 18’’. 
(xviii) The approximately 10.754291 
acres depicted as ‘‘Parcel 19’’. 
(xix) The approximately 3.067501 
acres depicted as ‘‘Parcel 20’’. 
(xx) The approximately 4.995197 
acres depicted as ‘‘Parcel 21’’. 
(xxi) The approximately 11.596129 
acres depicted as ‘‘Parcel 22’’. 
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689 
(xxii) 
The 
approximately 
3,197.320604 acres depicted as ‘‘Parcel 
23’’. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior, acting through the Di-
rector of the Bureau of Land Management. 
TITLE IX—COMMITTEE ON OVER-
SIGHT AND GOVERNMENT RE-
FORM 
SEC. 90001. INCREASE IN FERS EMPLOYEE CONTRIBUTION 
REQUIREMENTS. 
Section 8422(a)(3) of title 5, United States Code, is 
amended— 
(1) in subparagraph (A), by amending the table 
to read as follows: 
‘‘Employee 
January 1, 1987, to 
December 31, 1998. 
7.25 
January 1, 1999, to 
December 31, 1999. 
7.4 
January 1, 2000, to 
December 31, 2000. 
January 1, 2001, to 
December 31, 2025. 
8.8 
January 1, 2026, to 
December 31, 2026. 
10.6 
After December 31, 
2026. 
Congressional employee 
7.5 
January 1, 1987, to 
December 31, 1998. 
7.75 
January 1, 1999, to 
December 31, 1999. 
7.9 
January 1, 2000, to 
December 31, 2000. 
7.5 
January 1, 2001, to 
December 31, 2025. 
9.3 
January 1, 2026, to 
December 31, 2026. 
11.1 
After December 31, 
2026. 
Member 
7.5 
January 1, 1987, to 
December 31, 1998. 
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690 
7.75 
January 1, 1999, to 
December 31, 1999. 
7.9 
January 1, 2000, to 
December 31, 2000. 
January 1, 2001, to 
December 31, 2002. 
7.5 
January 1, 2003, to 
December 31, 2025. 
9.3 
January 1, 2026, to 
December 31, 2026. 
11.1 
After December 31, 
2026. 
Law enforcement officer, Firefighter, member 
of the Capitol Police, member of the Su-
preme Court Police, or air traffic controller 
7.5 
January 1, 1987, to 
December 31, 1998. 
7.75 
January 1, 1999, to 
December 31, 1999. 
7.9 
January 1, 2000, to 
December 31, 2000. 
7.5 
After December 31, 
2000. 
Nuclear materials courier 
7 January 1, 1987, to Oc-
tober 16, 1998. 
7.5 
October 17, 1998, to 
December 31, 1998. 
7.75 
January 1, 1999, to 
December 31, 1999. 
7.9 
January 1, 2000, to 
December 31, 2000. 
7.5 
After December 31, 
2000. 
Customs and border protection officer 
7.5 
After June 29, 2008.’’; 
and 
(2) in subparagraph (B), by amending the table 
to read as follows: 
‘‘Employee 
9.3 
January 1, 2013, to Decem-
ber 31, 2025. 
9.95 
January 1, 2026, to Decem-
ber 31, 2026. 
10.6 
After December 31, 2026. 
Congressional employee 
9.3 
January 1, 2013, to Decem-
ber 31, 2025. 
9.95 
January 1, 2026, to Decem-
ber 31, 2026. 
10.6 
After December 31, 2026. 
Member 
9.3 
January 1, 2013, to Decem-
ber 31, 2025. 
9.95 
January 1, 2026, to Decem-
ber 31, 2026. 
10.6 
After December 31, 2026. 
Law enforcement officer, Firefighter, 
member of the Capitol Police, mem-
ber of the Supreme Court Police, or 
air traffic controller 
9.8 
After December 31, 2012. 
Nuclear materials courier 
9.8 
After December 31, 2012. 
Customs and border protection officer 
9.8 
After December 31, 2012.’’. 
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691 
SEC. 90002. ELIMINATION OF FERS ANNUITY SUPPLEMENT. 
(a) IN GENERAL.—Section 8421(a) of title 5, United 
States Code, is amended— 
(1) in paragraph (1), by inserting ‘‘separated 
from service under section 8425’’ after ‘‘individual’’; 
and 
(2) in paragraph (2), by inserting ‘‘separated 
from service under section 8425’’ after ‘‘an indi-
vidual’’. 
(b) APPLICABILITY.—The amendments made by this 
section shall not apply with respect to any individual enti-
tled to an annuity supplement under section 8421 of title 
5, United States Code, prior to the date of the enactment 
of this Act. 
SEC. 90003. HIGH-5 AVERAGE PAY FOR CALCULATING CSRS 
AND FERS PENSION. 
(a) CSRS.—Section 8331(4) of title 5, United States 
Code, is amended to read as follows: 
‘‘(4) ‘average pay’ means— 
‘‘(A) except as provided under subpara-
graph (B), the largest annual rate resulting 
from averaging an employee’s or Member’s 
rates of basic pay in effect over any 3 consecu-
tive years of creditable service or, in the case of 
an annuity under subsection (d) or (e)(1) of 
section 8341 of this title based on service of 
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692 
less than 3 years, over the total service, with 
each rate weighted by the time it was in effect; 
and 
‘‘(B) with respect to an employee or Mem-
ber who retires on or after January 1, 2027, 
other than an individual entitled to an annuity 
under subsection (c) or (e) of section 8336, the 
largest annual rate resulting from averaging an 
employee’s or Member’s rates of basic pay in ef-
fect over any 5 consecutive years of creditable 
service or, in the case of an annuity under sub-
section (d) or (e)(1) of section 8341 of this title 
based on service of less than 5 years, over the 
total service, with each rate weighted by the 
time it was in effect;’’. 
(b) FERS.—Section 8401(3) of title 5, United States 
Code, is amended to read as follows: 
‘‘(3) the term ‘average pay’ means— 
‘‘(A) except as provided under subpara-
graph (B), the largest annual rate resulting 
from averaging an employee’s or Member’s 
rates of basic pay in effect over any 3 consecu-
tive years of service or, in the case of an annu-
ity under this chapter based on service of less 
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693 
than 3 years, over the total service, with each 
rate weighted by the period it was in effect; and 
‘‘(B) with respect to an employee or Mem-
ber who retires on or after January 1, 2027, 
other than an individual entitled to an annuity 
under subsection (d) or (e) of section 8412, the 
largest annual rate resulting from averaging the 
employee’s or Member’s rates of basic pay in ef-
fect over any 5 consecutive years of service or, 
in the case of an annuity under this chapter 
based on service of less than 5 years, over the 
total service, with each rate weighted by the pe-
riod it was in effect;’’. 
(c) CONFORMING AMENDMENT.—Section 302(a) of 
the Federal Employee’s Retirement System Act of 1986 
(5 U.S.C. 8331 note) is amended by striking paragraph 
(6) and inserting the following: 
‘‘(6)(A) For purposes of any computation under 
paragraph (4) or (5), the average pay to be used 
shall be— 
‘‘(i) except as provided under clause (ii), 
the largest annual rate resulting from averaging 
the individual’s rates of basic pay in effect over 
any 3 consecutive years of creditable service or, 
in the case of an annuity based on service of 
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694 
less than 3 years, over the total period of serv-
ice so creditable, with each rate weighted by the 
period it was in effect; and 
‘‘(ii) with respect to an individual who re-
tires on or after January 1, 2027, other than 
an individual entitled to an annuity under sub-
section (d) or (e) of section 8412 of title 5, 
United States Code, the largest annual rate re-
sulting from averaging the individual’s rates of 
basic pay in effect over any 5 consecutive years 
of creditable service or, in the case of an annu-
ity based on service of less than 5 years, over 
the total period of service so creditable, with 
each rate weighted by the period it was in ef-
fect. 
‘‘(B) For purposes of subparagraph (A), service 
shall be considered creditable if it would be consid-
ered creditable for purposes of determining average 
pay under chapter 83 or 84 of title 5, United States 
Code.’’. 
SEC. 90004. ELECTION FOR AT-WILL EMPLOYMENT AND 
LOWER FERS CONTRIBUTIONS FOR NEW FED-
ERAL CIVIL SERVICE HIRES. 
(a) ELECTION.— 
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695 
(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. 
‘‘(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 any 
other provision of law, including chapters 43 and 75 of 
this title, any individual who makes an affirmative election 
under subsection (a)(1) shall— 
‘‘(1) be considered an at-will employee; and 
‘‘(2) may be subject to an adverse action up to 
and including removal, without notice or right to ap-
peal, by the head of the agency at which the indi-
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696 
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). 
‘‘(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 any position— 
‘‘(A) excepted from the competitive service 
because of its confidential, policy-determining, 
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697 
policy-making, or policy-advocating character; 
or 
‘‘(B) excluded from the coverage of section 
2302 (by operation of subsection (a)(2)(B) of 
such section) or chapter 75.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for such subchapter is amended by adding 
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. 
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698 
SEC. 90005. FILING FEE FOR MERIT SYSTEMS PROTECTION 
BOARD CLAIMS AND APPEALS. 
(a) IN GENERAL.—Section 7701 of title 5, United 
States Code, is amended— 
(1) in redesignating subsection (k) as sub-
section (l); and 
(2) by inserting after subsection (j) the fol-
lowing: 
‘‘(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— 
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699 
‘‘(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 
been appealed and is no longer appealable because the 
time for taking an appeal has expired, or which has been 
appealed under section 7703 and the appeals process for 
which is completed, the fee collected under paragraph (1) 
shall, except as provided in paragraph (2)(C), be deposited 
into the miscellaneous receipts of the Treasury.’’. 
(b) APPLICATION.—The fee required under the 
amendment made by subsection (a) shall apply to any 
claim or appeal filed with the Merit Systems Protection 
Board after the date that is 3 months after the date of 
the enactment of this section. 
SEC. 90006. FEHB PROTECTION. 
(a) FEHB IMPROVEMENTS.— 
(1) DEFINITIONS.—In this subsection: 
(A) DIRECTOR.—The term ‘‘Director’’ 
means the Director of the Office of Personnel 
Management. 
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700 
(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 
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 
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701 
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— 
(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 
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702 
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-
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, in coordina-
tion with the head of each employing office, 
shall conduct a comprehensive audit regarding 
members of family who are covered under an 
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703 
enrollment in a health benefits plan under the 
Program. 
(B) CONTENTS.—In conducting an audit 
required by subparagraph (A), the Director, in 
coordination with the head of each employing 
office, shall review marriage certificates, birth 
certificates, and other appropriate documents 
that are necessary to determine eligibility to en-
roll in a health benefits plan under the Pro-
gram. 
(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 or the head of the relevant employing office 
in the audit required by subparagraph (A) shall 
be retained by the Office of Personnel Manage-
ment until the expiration of a six-year period 
beginning after the date of such audit in which 
such individual is not enrolled in, or covered 
under, a health benefits plan under the Pro-
gram. 
(D) 
REFERRAL
TO
INSPECTOR
GEN-
ERAL.—The Director shall refer any instances 
of individuals enrolled in, or covered under, a 
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704 
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 
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-
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705 
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: 
‘‘(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. 
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706 
‘‘(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 
until expended, shall be available for the Office to 
conduct 
the 
audit 
required 
under 
section 
90006(a)(4) of the Act titled ‘An Act to provide for 
reconciliation pursuant to title II of H. Con. Res. 
14’. Of such amount, the Office may transfer funds 
as the Director of the Office determines necessary to 
an employing office (as that term is defined in sec-
tion 890.101(a) of title 5, Code of Federal Regula-
tions, or any successor regulation) in order to con-
duct the required audit. 
‘‘(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-
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707 
tion 8903c), including activities associated with en-
rollment and eligibility in these programs and any 
associated audit activities as required under section 
90006 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.’’. 
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 
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708 
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; 
(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; 
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709 
(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-
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-
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710 
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) 
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 
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711 
(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-
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 
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712 
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-
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 
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713 
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 
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— 
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(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. CHANGES TO MANDATORY BENEFITS PRO-
GRAMS TO ALLOW SELECTED RESERVE OR-
DERS FOR PREPLANNED MISSIONS TO SE-
CURE MARITIME BORDERS AND INTERDICT 
PERSONS AND DRUGS. 
(a) IN GENERAL.—Subchapter I of chapter 37 of title 
14, United States Code, is amended by adding at the end 
the following: 
‘‘§ 3715. Selected reserve: order to active duty for 
preplanned missions in support of the ac-
tive component 
‘‘(a) AUTHORITY.—When the Commandant deter-
mines that it is necessary to augment the active forces 
for a preplanned mission in support of Coast Guard re-
quirements, the Commandant may, subject to subsection 
(b), order any member of the Selected Reserve, without 
the consent of the member, to active duty for not more 
than 365 consecutive days. 
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‘‘(b) LIMITATIONS.—Members of the Selected Re-
serve may be ordered to active duty under this section only 
if— 
‘‘(1) the manpower and associated costs of such 
active duty are specifically included and identified in 
the materials submitted to Congress by the Sec-
retary of the department in which the Coast Guard 
is operating, in support of the budget for the fiscal 
year or years in which such members are anticipated 
to be ordered to active duty; and 
‘‘(2) the budget information on such costs in-
cludes a description of the mission for which such 
members are anticipated to be ordered to active duty 
and the anticipated length of time of the order of 
such members to active duty on an involuntary 
basis. 
‘‘(c) EXCLUSION FROM STRENGTH LIMITATIONS.— 
Members of the Selected Reserve ordered to active duty 
under this section shall not be counted in computing au-
thorized strength in members on active duty or the total 
number of members in grade under this title or any other 
law. 
‘‘(d) TERMINATION OF DUTY.—Whenever any mem-
ber of the Selected Reserve is ordered to active duty under 
subsection (a), such service may be terminated— 
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‘‘(1) by order of the Commandant; or 
‘‘(2) by law. 
‘‘(e) CONSIDERATIONS FOR INVOLUNTARY ORDER TO 
ACTIVE DUTY.—In determining which members of the Se-
lected Reserve will be ordered to duty without their con-
sent under subsection (a), appropriate consideration shall 
be given to— 
‘‘(1) the length and nature of previous service, 
to assure such sharing of exposure to hazards as na-
tional security and military requirements will reason-
ably allow; 
‘‘(2) the frequency of assignments during serv-
ice career; 
‘‘(3) family responsibilities; and 
‘‘(4) employment necessary to maintain the na-
tional health, safety, or interest. 
‘‘(f) POLICIES
AND
PROCEDURES.—The Com-
mandant may prescribe policies and procedures to carry 
out this section, including on determinations with respect 
to orders to active duty under subsection (e).’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 37 of title 14, United States Code, is amended by in-
serting after the item relating to section 3714 the fol-
lowing: 
‘‘3715. Selected reserve: order to active duty for preplanned missions in support 
of the active component’’. 
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(c) DEFINITIONS.—Section 3301(1)(B) of title 38, 
United States Code is amended by striking ‘‘section 712 
of title 14.’’ and inserting ‘‘section 3713 or 3715 of title 
14.’’. 
(d) REEMPLOYMENT RIGHTS
OF PERSONS WHO 
SERVE
IN
THE
UNIFORMED
SERVICES.—Section 
4312(c)(4)(A) of title 38, United States Code is amended 
by striking ‘‘712 of title 14;’’ and inserting ‘‘section 3713 
or 3715 of title 14;’’. 
(e) MEDICAL AND DENTAL CARE FOR MEMBERS AND 
CERTAIN FORMER MEMBERS.—Section 1074(d)(2) of 
title 10, United States Code is amended by inserting ‘‘, 
or section 3715 of title 14,’’ after ‘‘section 101(a)(13)(B) 
of this title’’. 
(f) HEALTH BENEFITS.—Section 1145(a)(2)(B) of 
title 10, United States Code is amended by inserting ‘‘, 
or section 3715 of title 14,’’ after ‘‘section 101(a)(13)(B) 
of this title’’. 
(g) AGE
AND SERVICE REQUIREMENTS.—Section 
12731(f)(2)(B)(i) of title 10, United States Code is 
amended by inserting ‘‘, or section 3715 of title 14,’’ after 
‘‘section 101(a)(13)(B) of this title’’. 
SEC. 100003. VESSEL TONNAGE DUTIES. 
Section 60301 of title 46, United States Code, is 
amended— 
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(1) in subsection (a) by striking ‘‘, for fiscal 
years 2006 through 2010, and 2 cents per ton, not 
to exceed a total of 10 cents per ton per year, for 
each fiscal year thereafter,’’; and 
(2) in subsection (b) by striking ‘‘, for fiscal 
years 2006 through 2010, and 6 cents per ton, not 
to exceed a total of 30 cents per ton per year, for 
each fiscal year thereafter,’’. 
SEC. 100004. REGISTRATION FEE ON MOTOR VEHICLES. 
(a) IN GENERAL.—Chapter 1 of title 23, United 
States Code, is amended by adding at the end the 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-
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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 
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). 
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‘‘(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. 
‘‘(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). 
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‘‘(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-
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 
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(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). 
(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. 100005. DEPOSIT OF REGISTRATION FEE ON MOTOR 
VEHICLES. 
Any amounts accrued pursuant to section 180 of title 
23, United States Code (as added by this Act), shall be 
deposited into the Highway Trust Fund. 
SEC. 100006. MOTOR CARRIER DATA. 
(a) PUBLIC CONFIRMATION OF AUTHORIZED MOTOR 
CARRIERS.—There is appropriated $5,000,000 to the 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 
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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-
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 
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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. 
SEC. 100007. IRA RESCISSIONS. 
(a) REPEAL OF FUNDING FOR ALTERNATIVE FUEL 
AND LOW-EMISSION AVIATION TECHNOLOGY PROGRAM.— 
The unobligated balances of amounts made available to 
carry out section 40007 of Public Law 117–169 (49 
U.S.C. 44504 note) (as in effect on the day before the 
date of enactment of this Act) are permanently rescinded. 
(b) REPEAL OF FUNDING FOR NEIGHBORHOOD 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– 
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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-
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 
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before the date of enactment of this Act) are permanently 
rescinded. 
SEC. 100008. 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-
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; 
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(4) $500,000,000 for runway safety projects, 
airport surface surveillance projects, and to carry 
out section 347 of the FAA Reauthorization Act of 
2024; 
(5) $550,000,000 for unstaffed infrastructure 
sustainment and replacement; 
(6) $300,000,000 to carry out section 619 of 
the FAA Reauthorization Act of 2024; 
(7) $260,000,000 to carry out section 44745 of 
title 49, United States Code; and 
(8) $1,000,000,000 for air traffic controller 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. 100009. JOHN F. KENNEDY CENTER FOR THE PER-
FORMING ARTS APPROPRIATIONS. 
In addition to amounts otherwise made available, 
there is appropriated for fiscal year 2025, out of any 
money in the Treasury not otherwise appropriated— 
(1) $241,750,000 for necessary expenses for 
capital repair and restoration of the building and 
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site of the John F. Kennedy Center for the Per-
forming Arts, to remain available until September 
30, 2029; 
(2) $7,707,000 for necessary expenses for the 
operation, maintenance, and security of the John F. 
Kennedy Center for the Performing Arts, to remain 
available until September 30, 2027; and 
(3) $7,200,000 for administrative expenses of 
the John F. Kennedy Center for the Performing 
Arts to carry out the purposes of this section, to re-
main available until September 30, 2029. 
TITLE XI—COMMITTEE ON WAYS 
AND MEANS, ‘‘THE ONE, BIG, 
BEAUTIFUL BILL’’ 
SEC. 110000. REFERENCES TO THE INTERNAL REVENUE 
CODE OF 1986, ETC. 
(a) REFERENCES.—Except as otherwise expressly 
provided, whenever in this title, an amendment or repeal 
is expressed in terms of an amendment to, or repeal of, 
a section or other provision, the reference shall be 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 
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rate of tax by reason of any provision of, or amendment 
made by, this title. 
Subtitle A—Make American 
Families and Workers Thrive Again 
PART 1—PERMANENTLY PREVENTING TAX HIKES 
ON AMERICAN FAMILIES AND WORKERS 
SEC. 110001. EXTENSION OF MODIFICATION OF RATES. 
(a) IN GENERAL.—Section 1(j) is amended— 
(1) in paragraph (1), by striking ‘‘, and before 
January 1, 2026’’, and 
(2) by striking ‘‘2018 THROUGH 2025’’ in the 
heading and inserting ‘‘BEGINNING AFTER 2017’’. 
(b) INFLATION ADJUSTMENT.—Section 1(j)(3)(B)(i) 
is amended by inserting ‘‘in the case of any taxable year 
beginning after December 31, 2025, solely for purposes 
of determining the dollar amounts at which the 35-percent 
rate bracket ends and the 37-percent rate bracket begins,’’ 
before ‘‘subsection (f)(3)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110002. EXTENSION OF INCREASED STANDARD DEDUC-
TION AND TEMPORARY ENHANCEMENT. 
(a) IN GENERAL.—Section 63(c)(7) is amended— 
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(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— 
‘‘(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. 
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(2) TEMPORARY
ADDITIONAL
INCREASE
IN 
STANDARD DEDUCTION.—The amendment made by 
subsection (b) shall apply to taxable years beginning 
after December 31, 2024. 
SEC. 110003. TERMINATION OF DEDUCTION FOR PERSONAL 
EXEMPTIONS. 
(a) IN GENERAL.—Section 151(d)(5) is amended— 
(1) by striking ‘‘and before January 1, 2026’’, 
and 
(2) by striking ‘‘2018 THROUGH 2025’’ in the 
heading and inserting ‘‘BEGINNING AFTER 2017’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110004. EXTENSION OF INCREASED CHILD TAX CREDIT 
AND TEMPORARY ENHANCEMENT. 
(a) EXTENSION OF EXPANDED CHILD TAX 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: 
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‘‘(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-
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 
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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. 
‘‘(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-
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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 
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.’’. 
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(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) 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: 
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‘‘(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— 
‘‘(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. 
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‘‘(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.’’. 
(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 
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738 
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-
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— 
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(1) 
in 
subparagraph 
(A) 
by 
striking 
‘‘$5,000,000’’ and inserting ‘‘$15,000,000’’, 
(2) in subparagraph (B)— 
(A) in the matter preceding clause (i), by 
striking ‘‘2011’’ and inserting ‘‘2026’’, and 
(B) in clause (ii), by striking ‘‘calendar 
year 2010’’ and inserting ‘‘calendar year 
2025’’, and 
(3) by striking subparagraph (C). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110007. EXTENSION OF INCREASED ALTERNATIVE 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 ‘‘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. 
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740 
SEC. 110008. EXTENSION OF LIMITATION ON DEDUCTION 
FOR QUALIFIED RESIDENCE INTEREST. 
(a) IN GENERAL.—Section 163(h)(3)(F) is amend-
ed— 
(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. 
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744 
(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. 
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— 
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745 
‘‘(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 
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. 
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SEC. 110017. EXTENSION OF ROLLOVERS FROM QUALIFIED 
TUITION PROGRAMS TO ABLE ACCOUNTS 
PERMITTED. 
(a) IN GENERAL.—Section 529(c)(3)(C)(i)(III) is 
amended by striking ‘‘before January 1, 2026,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 110018. EXTENSION OF TREATMENT OF CERTAIN 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 
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747 
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. 
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 
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748 
amount which (but for this subsection) would 
be includible in gross income for such taxable 
year by reason of the discharge (in whole or in 
part) of any loan described in subparagraph 
(B), if such discharge was— 
‘‘(i) pursuant to subsection (a) or (d) 
of section 437 of the Higher Education 
Act of 1965 or the parallel benefit under 
part D of title IV of such Act (relating to 
the repayment of loan liability), 
‘‘(ii) pursuant to section 464(c)(1)(F) 
of such Act, or 
‘‘(iii) otherwise discharged on account 
of death or total and permanent disability 
of the student. 
‘‘(B) LOANS DISCHARGED.—A loan is 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.— 
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749 
‘‘(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 
‘‘(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: 
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750 
‘‘(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. 
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 
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751 
taken into account under subsection (a) only to the extent 
that the gross receipts of the taxpayer from such trade 
or business for such taxable year (including such qualified 
tips) exceeds the sum of— 
‘‘(1) cost of goods sold that are allocable to 
such receipts, plus 
‘‘(2) other expenses, losses, or deductions (other 
than the deduction allowed under this section), 
which are properly allocable to such receipts. 
‘‘(c) QUALIFIED TIPS.—For purposes of this 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 
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752 
not a specified service trade or business (as de-
fined in section 199A(d)(2)), 
‘‘(C) such individual is not a highly com-
pensated employee (as defined in section 
414(q)(1)) of any employer for the calendar 
year in which the taxable year begins, and does 
not receive earned income in excess of the dollar 
amount in effect under section 414(q)(1)(B)(i) 
for such calendar year, and 
‘‘(D) such other requirements as may be 
established by the Secretary in regulations or 
other guidance are satisfied. 
‘‘(d) SOCIAL SECURITY NUMBER REQUIRED.— 
‘‘(1) IN GENERAL.—No deduction shall be 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 (as defined in section 24(h)(7)), and 
‘‘(B) if the individual is married, the social 
security number of such individual’s spouse. 
‘‘(2) MARRIED INDIVIDUALS.—Rules similar to 
the rules of section 32(d) shall apply to this section. 
‘‘(e) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
to prevent reclassification of income as qualified tips, in-
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753 
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.’’. 
(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 
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754 
at the end of subparagraph (C) and inserting ‘‘, and’’, and 
by adding at the end the following new subparagraph: 
‘‘(D) any amount with respect to which a 
deduction is allowable to the taxpayer under 
section 224(a) for the taxable year.’’. 
(e) EXTENSION OF TIP CREDIT TO BEAUTY SERVICE 
BUSINESS.—Section 45B(b)(2) is amended to read as fol-
lows: 
(1) IN GENERAL.— 
‘‘(2) APPLICATION ONLY TO CERTAIN LINES OF 
BUSINESS.—In applying paragraph (1) there shall 
be taken into account only tips received from 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.’’. 
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(2) CREDIT DETERMINED WITH RESPECT TO 
MINIMUM WAGE IN EFFECT.—Section 45B(b)(1)(B) 
is amended— 
(A) by striking ‘‘as in effect on January 1, 
2007, and’’, and 
(B) by inserting ‘‘, and in the case of food 
or beverage establishments, as in effect on 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: 
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‘‘(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).’’. 
(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).’’. 
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757 
(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) 
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-
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758 
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 
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. 
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759 
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: 
‘‘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-
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760 
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.— 
‘‘(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 (as defined in section 24(h)(7)), and 
‘‘(B) if the individual is married, the social 
security number of such individual’s spouse. 
‘‘(2) MARRIED INDIVIDUALS.—Rules similar to 
the rules of section 32(d) shall apply to this section. 
‘‘(d) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or 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 
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761 
(5) and inserting ‘‘and’’, and by adding at the end the 
following new paragraph: 
‘‘(6) the deduction provided in section 225.’’. 
(c) REQUIREMENT
TO INCLUDE OVERTIME 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 
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762 
by the preceding provisions of this Act, is amended by re-
designating the item relating to section 225 as an item 
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 
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763 
amount in subparagraph(A) shall be reduced 
(but not below zero) by 4 percent of so much 
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 (as defined in section 
24(h)(7)), and 
‘‘(II) if the individual is married, 
the social security number of such in-
dividual’s spouse. 
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764 
‘‘(ii) MARRIED
INDIVIDUALS.—Rules 
similar to the rules of section 32(d) shall 
apply to this section. 
‘‘(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 
‘‘and’’ at the end of subparagraph (X), by striking the 
period at the end of subparagraph (Y) and inserting ‘‘, 
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765 
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 
2024 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.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘qualified pas-
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766 
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. 
‘‘(C) LIMITATIONS.— 
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767 
‘‘(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 
taxable year increased by any amount 
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768 
excluded from gross income under sec-
tion 911, 931, or 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. 
Such term shall not include any vehicle the 
final assembly of which did not occur within the 
United States. 
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769 
‘‘(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 
that results from refinancing any indebted-
ness described in such subparagraph, and 
that is secured by a first lien on the appli-
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770 
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.—Subpart B of part III of sub-
chapter A of chapter 61 is amended by adding at the end 
the following new section: 
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771 
‘‘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, 
‘‘(C) the amount of outstanding principal 
on the specified passenger vehicle loan as of the 
beginning of such calendar year, 
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772 
‘‘(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-
spect to such individual as the Secretary may pro-
vide for purpoeses of this subsection). 
The written statement required under the preceding sen-
tence shall be furnished on or before January 31 of the 
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773 
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.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 56(e)(1)(B) is amended by striking 
‘‘section 
163(h)(4)’’ 
and 
inserting 
‘‘section 
163(h)(5)’’. 
(2) The table of sections for subpart B of part 
III of subchapter A of chapter 61 is amended by 
adding at the end the following new item: 
‘‘Sec. 6050AA. Returns relating to applicable passenger vehicle loan interest re-
ceived in trade or business from individuals.’’. 
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774 
(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.— 
‘‘(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-
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775 
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 
‘‘(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: 
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‘‘(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-
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 
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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 
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’’, 
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(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 
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 
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the grouping of employees of a common 
law employer. 
‘‘(4) TREATMENT OF BENEFITS MANDATED OR 
PAID FOR BY STATE OR LOCAL GOVERNMENTS.—For 
purposes of this section, any leave which is paid by 
a State or local government or required by State or 
local law— 
‘‘(A) except as provided in subparagraph 
(B), shall be taken into account in determining 
the amount of paid family and medical leave 
provided by the employer, and 
‘‘(B) shall not be taken into account in 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: 
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780 
‘‘(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 
family and medical leave credit which is determined 
for the taxable year under section 45S(a)(1)(B).’’ 
(c) OUTREACH.— 
(1) SBA AND
RESOURCE
PARTNERS.—Each 
district office of the Small Business Administration 
and each resource partner of the Small Business Ad-
ministration, including small business development 
centers described in section 21 of the Small Busi-
ness Act (15 U.S.C. 648)), women’s business centers 
described in section 29 of such Act (15 U.S.C. 656), 
each chapter of the Service Corps of Retired Execu-
tives described in section 8(b)(1)(B) of such Act (15 
U.S.C. 637(b)(1)(B)), and Veteran Business Out-
reach Centers described in section 32 of such Act 
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781 
(15 U.S.C. 657b), shall conduct outreach to relevant 
parties regarding the paid family and medical leave 
credit under section 45S of the Internal Revenue 
Code of 1986, including through— 
(A) targeted communications, education, 
training, and technical assistance; and 
(B) the development of a written paid fam-
ily leave policy, as described in paragraphs (1) 
and (2) of section 45S(c) of the Internal Rev-
enue Code of 1986. 
(2) INTERNAL
REVENUE
SERVICE.—The Sec-
retary of the Treasury (or the Secretary’s delegate) 
shall perform targeted outreach to employers and 
other relevant entities regarding the availability and 
requirements of the paid family and medical leave 
credit under section 45S of the Internal Revenue 
Code of 1986, including providing relevant informa-
tion as part of Internal Revenue Service communica-
tions that are regularly issued to entities that pro-
vide payroll services, tax professionals, and small 
businesses. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
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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 
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 
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783 
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. 
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 
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784 
(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. TAX CREDIT FOR CONTRIBUTIONS OF INDIVID-
UALS TO SCHOLARSHIP GRANTING ORGANI-
ZATIONS. 
(a) ALLOWANCE OF CREDIT.— 
(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. 
‘‘(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 
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785 
‘‘(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 
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-
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786 
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— 
‘‘(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. 
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‘‘(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-
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-
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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— 
‘‘(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-
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789 
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 
‘‘(ii) after application of clause (i), 
any such students who have a sibling who 
was awarded a scholarship from such orga-
nization, 
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790 
‘‘(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. 
‘‘(2) INCOME VERIFICATION.—For purposes of 
paragraph (1)(E), review of all of the following (as 
applicable) shall be treated as satisfying the require-
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791 
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 
section 465(b)(3)(A) with respect to such organiza-
tion or any employee of such organization. 
‘‘(4) PROHIBITION ON SELF-DEALING.— 
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792 
‘‘(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 
following the fifth taxable year after the taxable year 
in which the credit arose. For purposes of the pre-
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793 
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. 
‘‘(3) REAL-TIME INFORMATION.—For purposes 
of this section, the Secretary shall develop a system 
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794 
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. 
‘‘(D) PUBLICATION OF ANNUAL VOLUME 
CAP.—The Secretary shall make publicly avail-
able the dollar amount of the volume cap in ef-
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795 
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) 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: 
‘‘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-
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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-
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. 
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‘‘(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. 
‘‘(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.’’. 
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