One Big Beautiful Bill Act

Bill: 119-hr-1
Sponsor: Rep. Arrington, Jodey C. [R-TX-19]
Introduced: 2025-05-20 in the House
Policy area: Economics and Public Finance
Subjects: Abortion
Accounting and auditing
Administrative law and regulatory procedures
Advanced technology and technological innovations
Advisory bodies
Afghanistan
Agricultural conservation and pollution
Agricultural education
Agricultural equipment and machinery
Agricultural insurance
Agricultural marketing and promotion
Agricultural practices and innovations
Agricultural prices, subsidies, credit
Agricultural research
Agricultural trade
Air quality
Alabama
Alaska
Alternative and renewable resources
Animal and plant health
Appropriations
Arctic Ocean
Arizona
Arkansas
Armed Forces Retirement Home
Asia
Aviation and airports
Bank accounts, deposits, capital
Birds
Border security and unlawful immigration
Budget deficits and national debt
Building construction
Business investment and capital
California
Canada
Charitable contributions
Child care and development
Child health
Civil actions and liability
Climate change and greenhouse gases
Coal
Coast guard
Colorado
Commemorative events and holidays
Commodity Credit Corporation
Computer security and identity theft
Computers and information technology
Congressional oversight
Consumer Financial Protection Bureau
Consumer affairs
Correctional facilities and imprisonment
Cosmetics and personal care
Criminal justice information and records
Criminal procedure and sentencing
Cuba
Department of Agriculture
Department of Commerce
Department of Defense
Department of Education
Department of Energy
Department of Health and Human Services
Department of Homeland Security
Department of Housing and Urban Development
Department of Justice
Disaster relief and insurance
District of Columbia
Drug therapy
Drug trafficking and controlled substances
Economic development
Economic performance and conditions
Education programs funding
Educational technology and distance education
Electric power generation and transmission
Elementary and secondary education
Employee benefits and pensions
Employment and training programs
Endangered and threatened species
Energy assistance for the poor and aged
Energy efficiency and conservation
Energy revenues and royalties
Environmental Protection Agency (EPA)
Environmental assessment, monitoring, research
Environmental regulatory procedures
Europe
Executive Office of the President
Executive agency funding and structure
Farmland
Federal Communications Commission (FCC)
Federal Energy Regulatory Commission (FERC)
Federal preemption
Firearms and explosives
Fishes
Florida
Food assistance and relief
Foreign and international corporations
Forests, forestry, trees
Fraud offenses and financial crimes
Fruit and vegetables
Government buildings, facilities, and property
Government employee pay, benefits, personnel management
Government information and archives
Government lending and loan guarantees
Government studies and investigations
Government trust funds
Grain
Guam
Hawaii
Hazardous wastes and toxic substances
Health care costs and insurance
Health care coverage and access
Health facilities and institutions
Health personnel
Higher education
Horticulture and plants
Hospital care
Human trafficking
Hybrid, electric, and advanced technology vehicles
Immigrant health and welfare
Immigration status and procedures
Income tax credits
Income tax deductions
Income tax rates
Indian social and development programs
Industrial facilities
Inflation and prices
Infrastructure development
Intelligence activities, surveillance, classified information
Intergovernmental relations
Internet, web applications, social media
Judicial procedure and administration
Judicial review and appeals
Juvenile crime and gang violence
Labor market
Land transfers
Land use and conservation
Latin America
Law enforcement administration and funding
Law enforcement officers
Legal fees and court costs
Licensing and registrations
Lighting, heating, cooling
Livestock
Louisiana
Mammals
Manufacturing
Marine and coastal resources, fisheries
Marine and inland water transportation
Meat
Medicaid
Medical education
Medicare
Merit Systems Protection Board
Mexico
Military facilities and property
Military operations and strategy
Military personnel and dependents
Military procurement, research, weapons development
Military readiness
Mining
Minnesota
Mississippi
Montana
Motor carriers
Motor vehicles
Museums, exhibitions, cultural centers
National Guard and reserves
Natural disasters
Navigation, waterways, harbors
Nevada
New Mexico
North America
North Dakota
Nuclear power
Nuclear weapons
Nutrition and diet
Office of Management and Budget (OMB)
Office of Personnel Management (OPM)
Oil and gas
Oklahoma
Olympic games
Oregon
Parks, recreation areas, trails
Performing arts
Pest management
Pipelines
Poverty and welfare assistance
Prescription drugs
Public contracts and procurement
Radio spectrum allocation
Radioactive wastes and releases
Refugees, asylum, displaced persons
Residential rehabilitation and home repair
Retail and wholesale trades
Rural conditions and development
Sales and excise taxes
Seashores and lakeshores
Securities
Securities and Exchange Commission (SEC)
Sex and reproductive health
Sex, gender, sexual orientation discrimination
Small business
Smuggling and trafficking
Social work, volunteer service, charitable organizations
Spacecraft and satellites
Specialized courts
Sports and recreation facilities
State and local finance
State and local government operations
State and local taxation
Strategic materials and reserves
Student aid and college costs
Surgery and anesthesia
Taiwan
Tariffs
Tax administration and collection, taxpayers
Tax reform and tax simplification
Tax treatment of families
Tax-exempt organizations
Taxation of foreign income
Technology transfer and commercialization
Telephone and wireless communication
Terrorism
Texas
Trade restrictions
Transfer and inheritance taxes
Transportation safety and security
U.S. and foreign investments
Ukraine
Unemployment
User charges and fees
Utah
Veterans' education, employment, rehabilitation
Veterinary medicine and animal diseases
Virgin Islands
Visas and passports
Wilderness and natural areas, wildlife refuges, wild rivers, habitats
Wyoming

Summary:
action_date: 2025-05-20
text: 

One Big Beautiful Bill Act

This bill reduces taxes, reduces or increases spending for various federal programs, increases the statutory debt limit, and otherwise addresses agencies and programs throughout the federal government. 

It is known as a reconciliation bill and includes legislation submitted by 11 House committees pursuant to provisions in the FY2025 congressional budget resolution (H Con. Res. 14) that directed the committees to submit legislation to the House Budget Committee that will increase or decrease the deficit and increase the statutory debt limit by specified amounts. (Reconciliation bills are considered by Congress using expedited legislative procedures that prevent a filibuster and restrict amendments in the Senate.)

TITLE I--COMMITTEE ON AGRICULTURE 

This title addresses a wide range of Department of Agriculture (USDA) programs, including by changing the Supplemental Nutrition Assistance Program (SNAP) and extending programs authorized by the Agriculture Improvement Act of 2018 (commonly known as the 2018 farm bill).

Subtitle A--Nutrition

(Sec. 10001) This section prohibits USDA from increasing the cost of the Thrifty Food Plan (TFP) based on a reevaluation or update of the contents of the TFP (i.e., the market basket of goods). Further, any annual adjustment to the cost of the plan must be based on the Consumer Price Index for All Urban Consumers.

As background, USDA created the TFP (the cost of purchasing a nutritionally adequate low-cost diet), which is used to determine maximum monthly benefits under the Supplemental Nutrition Assistance Program (SNAP). USDA calculates the cost of the TFP each year to account for food price inflation. Maximum allotments are set at the monthly cost of the TFP for a four-person family, adjusted for family size. Under a provision of the 2018 farm bill, USDA must reevaluate the market basket of goods every five years based on current food prices, food composition data, consumption patterns, and dietary guidance. 

(Sec. 10002) This section expands the applicability of work requirements for SNAP recipients who are able-bodied adults without dependents (ABAWDs). As background, these SNAP recipients have work-related requirements in addition to the general SNAP work registration and employment and training requirements.

Specifically, the section amends the exemptions to this requirement.

First, the section applies the work requirements for ABAWDs to adults who are not over 65 years old, whereas these requirements currently apply to adults who are not over 55 years old.

Second, the ABAWD exemption for a parent or household member with responsibility for a dependent child is restricted to a dependent child under the age of seven. Currently, the child must be under the age of 18. 

This section includes an exception for a person who is (1) responsible for a dependent child who is seven years of age or older, and (2) married to and resides with an individual who complies with the SNAP work requirements.

In addition, the section specifies that current ABAWD exemptions set to sunset on October 1, 2030 will sunset. These exemptions from the ABAWD work requirements are for homeless individuals, veterans, and certain foster care individuals (those who are 24 years old or younger and were in foster care on the date of attaining 18 years of age or a higher age).

(Sec. 10003) This section modifies the ABAWD waiver program's allowable state exemptions. Under current law, an ABAWD waiver program allows state exemptions based on an area having an unemployment rate of over 10% or an insufficient number of jobs. The section amends the exemption to require the unemployment rate to be based on the rate for the county, instead of the area. Further, the section repeals the provision that allows a state exemption if that area does not have a sufficient number of jobs.

Under current law, a state agency may exempt up to 8% of SNAP recipients from the ABAWD work requirements for each fiscal year. This section reduces the percentage of exemptions a state agency may provide each year so that the average monthly number of exemptions does not exceed 1% of covered individuals (i.e., SNAP recipients and certain individuals who were denied SNAP benefits due to the work requirements). 

(Sec. 10004) This section limits the availability of the Standard Utility Allowance (SUA) for determining SNAP income eligibility. Specifically, only households that include an elderly or disabled member may be considered automatically eligible for the SUA based on participation in the Low Income Home Energy Assistance Program (LIHEAP) or a similar energy assistance program. 

As background, when determining a household’s eligibility for SNAP, states consider the total shelter costs for a household, including the cost of utilities. States can use SUAs, which are standard amounts that represent low-income household utility costs in the state or local area. Currently, all LIHEAP participants who receive a minimum benefit are eligible for the SUA for determining SNAP income eligibility.

(Sec. 10005) This section prohibits household internet costs (e.g., monthly subscriber fees) from being used in computing the excess shelter expense deduction for the purposes of determining the size of household SNAP benefits.

(Sec. 10006) This section establishes state-matching fund requirements for the cost of SNAP program allotments. Currently, the state match is 0%. Beginning in FY2028, any state that has a payment error rate that is less than 6% must contribute a 5% match for the cost of SNAP program allotments. 

A state with a payment error rate that is

at least 6% but less than 8% must contribute 15%;

at least 8% but less than 10% must contribute 20%; and

10% or greater must contribute 25%.

(Sec. 10007) This section reduces the amount that USDA may pay a state agency for administrative costs for the operation of SNAP to 25% of all administrative costs, from the current 50%, thereby increasing the state share of administrative costs from 50% to 75%.

(Sec. 10008) This section modifies the general work requirements of the SNAP program to cover individuals who are over the age of 17 and under the age of 65. Currently, the general work requirements apply to individuals who are over the age of 15 and under the age of 60. It also exempts parents or members of a household with responsibility for the care of a child who is under the age of seven (under the age of six under current law) from the requirements. 

(Sec. 10009) This section requires state agencies (under the SNAP National Accuracy Clearinghouse) to use each indication of a multiple issuance of SNAP benefits to prevent multiple issuances of other federal and state assistance program benefits.

(Sec. 10010) This section reduces the tolerance level to $0 for a state to exclude small SNAP payment errors in the calculation of payment error rates. 

As background, the SNAP quality control system measures how accurately SNAP state agencies determine a household’s eligibility and benefit amount and determines overpayments of benefits and underpayments. Under current law, the Food and Nutrition Service must set a tolerance level for excluding small payment errors in the calculation of payment error rates (e.g., $56 or less in FY2024). This section requires that the calculation of payment error rates include all SNAP payment errors.

(Sec. 10011) This section eliminates the SNAP Nutrition Education and Obesity Prevention Grant Program (SNAP-ED).

(Sec. 10012) This section limits SNAP benefits to individuals who reside in the United States and are (1) a citizen, or (2) an alien lawfully admitted for permanent residence as an immigrant, with exceptions. Currently, SNAP eligibility extends to additional individuals who are classified as an alien under federal law, including an alien who has qualified for conditional entry under the asylum and refugee laws.

This section also extends funding for the Emergency Food Assistance Program (TEFAP) through FY2031. TEFAP provides food commodities (and cash support for storage and distribution costs) through states to local emergency feeding organizations (e.g., food banks).

Subtitle B--Investment in Rural America

(Sec. 10101) This section amends and extends commodity support programs.

For example, the section extends the Price Loss Coverage Program, the Agricultural Risk Coverage Program, and Dairy Margin Coverage through crop year 2031. It also modifies various requirements for the programs.

The section also extends the suspension of permanent price authority through crop year 2031 for commodities other than dairy and through December 31, 2031, for dairy.

Further, the section addresses programs and issues such as marketing loans, disaster assistance, the sugar program, federal crop insurance, the Livestock Indemnity Program, and the establishment of a Poultry Insurance Pilot Program.

For example, this section provides for a number of changes to Dairy Margin Coverage (DMC), which include

changing the definition of production history to remove the consideration of production at the time the dairy operation first registered to participate in the DMC program;

setting production history for the DMC program as the highest annual milk marketings for participating dairies during calendar year 2021, 2022, or 2023;

raising the coverage limit to the first six million pounds for both Tier I and Tier II premiums, from the first five million pounds; and

allowing producers to receive a 25% premium discount for a one-time premium election covering calendar years 2026-2031.

(Sec. 10102) This section reauthorizes, and extends funding for, the following programs through FY2031:

the Grassroots Source Water Protection Program,

the Voluntary Public Access and Habitat Incentive Program,

the Feral Swine Eradication and Control Pilot Program,

the Agriculture Conservation Easement Program (ACEP),

the Environmental Quality Incentives Program (EQIP),

the Conservation Stewardship Program (CSP),

the Rural Conservation Partnership Program (RCPP), and

the Watershed and Flood Prevention Operations Program.

This section also rescinds the unobligated funds that were provided for ACEP, EQIP, CSP, and RCPP conservation programs as part of the Inflation Reduction Act of 2022. 

(Sec. 10103) This section extends and provides increased funding for agricultural trade promotion and facilitation through FY2031. Specified funds are provided for the Market Access Program, Foreign Market Development Program, E (Kika) de la Garza Emerging Marketing Program, Technical Assistance for Specialty Crops program, and the Priority Trade Fund.

(Sec. 10104) This section reauthorizes and provides funding for a number of USDA research initiatives. 

For example, this section provides specified funds to the 1890 National Scholars Program for FY2026 for student scholarships. This National Institute of Food and Agriculture program provides grants to 1890 Institutions (i.e., historically Black colleges and universities that belong to the U.S. land-grant university system) for students who intend to pursue a career in the food and agricultural sciences.

This section provides the Specialty Crop Research Initiative with $175 million in mandatory funding for FY2026. Currently, the program is funded at $80 million for each fiscal year.

This section also provides funding for competitive grants to assist in the construction, alteration, acquisition, modernization, renovation, or remodeling of Agricultural Research Facilities.

(Sec. 10105) This section extends and modifies the Secure Rural Schools (SRS) program. 

Under the existing SRS program, states and counties containing federal land may receive payments from the U.S. Forest Service or the Department of the Interior respectively. This section extends the authority of the Forest Service and Interior to (1) calculate and provide payments to states and counties under the SRS program through FY2026, and (2) initiate projects using funds provided by the program through FY2028. It also extends the deadline to obligate those funds until the end of FY2029.

This section rescinds specified unobligated funds that were provided by the Inflation Reduction Act of 2022 for (1) competitive grants to nonfederal forest landowners, and (2) state and private forestry conservation programs. 

(Sec. 10106) This section reauthorizes, and extends funding for, the biobased markets program (i.e., BioPreferred Program) through FY2031 to promote biobased products through (1) mandatory purchasing requirements for federal agencies and their contractors, and (2) a voluntary labeling initiative for biobased products.

This section reauthorizes, and extends funding for, the bioenergy program for advanced biofuels (i.e., Advanced Biofuel Payment Program) through FY2031. The program provides payments to fuel producers to support and expand production of advanced biofuels (i.e., not derived from corn starch).

(Sec. 10107) This section provides additional funding for the Plant Pest and Disease Management Disaster Prevention Program for FY2026 and each fiscal year thereafter.

This section provides additional funding for the Specialty Crop Block Grant Program for FY2026 and each fiscal year thereafter. Under the block grant program, USDA provides grants to the state departments of agriculture to enhance the competitiveness of specialty crops (i.e., fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops, including floriculture).

The section also reauthorizes, and extends funding for, organic production and market data initiatives through FY2031. 

This section reauthorizes, and extends funding through FY2026, for USDA to carry out the modernization and improvement of international trade technology systems and data collection on imports of organically produced agricultural products accepted into the United States.

The section also reauthorizes the Organic Certification Cost Share Program, which provides cost share assistance to producers and handlers of agricultural products who are obtaining or renewing their certification under the National Organic Program.

This section reauthorizes, and extends funding through FY2026 for the multiple crop and pesticide use survey of farmers. The USDA Office of Pest Management Policy conducts this survey to collect data for risk assessment modeling and mitigation for an active ingredient.

(Sec. 10108) This section increases funding for the National Animal Health Laboratory Network. Specific increases in funding are also provided for the National Animal Disease Preparedness and Response Program and the National Animal Vaccine and Veterinary Countermeasures Bank.

This section extends and increases funding for the Sheep Production & Marketing Grant Program through FY2026. This program seeks to strengthen and enhance the production and marketing of sheep and sheep products in the United States.

This section also extends the

Pima Agriculture Cotton Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on cotton fabric that are higher than tariffs on certain apparel articles made of cotton fabric;

Agriculture Wool Apparel Manufacturers Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on wool fabric that are higher than tariffs on certain apparel articles made of wool fabric;

Wool Research and Promotion Program through FY2031, which provides grants to assist U.S. wool producers with improving the quality of wool and with developing and promoting the wool market; and

Emergency Citrus Disease Research and Development Trust Fund through FY2031, which funds a program that aims to bring together scientists to find scientifically sound and financially sustainable solutions to Huanglongbing (i.e., citrus greening, a bacterial disease spread by an insect that feeds on citrus).

TITLE II--COMMITTEE ON ARMED SERVICES

(Sec. 20001) This section provides additional funding for FY2025 to the Department of Defense (DOD) for

the Marine Corps Barracks 2030 initiative,

the Defense Health Program,

supplemental payments of Basic Allowance for Housing to military personnel, and

tuition assistance and child care assistance for members of the Armed Forces.

The section also provides statutory authority to extend from 14 to 21 days eligibility for Temporary Lodging Expense (TLE) for certain servicemembers undergoing a permanent change of station.

Additionally, the section temporarily increases authorized investment amounts and provides additional authorization for the acquisition or construction of certain military housing through private contracts.

(Sec. 20002) This section provides additional funding for FY2025 for the shipbuilding industrial base and various naval shipbuilding activities. 

(Sec. 20003) This section provides additional funding for FY2025 for the development of (1) space-based missile intercept capabilities, (2) military space-based sensors, and (3) the continued development of ground-based missile defense systems and related infrastructure.

(Sec. 20004) This section provides additional funding for FY2025 for various military weapon systems, including hypersonic, air-to-air, cruise, and anti-ship missiles.

(Sec. 20005) This section provides additional funding for FY2025 to expand the small, unmanned aerial system (UAS) industrial base, to advance the use of artificial intelligence in these and other systems, and to support the integration of commercial developments in military technology.

The section also provides additional funding to finance loans and loan guarantees by the DOD Office of Strategic Capital.

(Sec. 20006) This section provides additional funding for FY2025 to replace current business systems, deploy automation, and deploy artificial intelligence to accelerate audits of DOD financial statements.

(Sec. 20007) This section provides additional funding for FY2025 to (1) modernize the capabilities of fighter, transport, and other military aircraft; (2) prevent the retirement of certain fighter aircraft (e.g., F-22); and (3) produce next-generation manned and unmanned aircraft.

(Sec. 20008) This section provides additional funding for FY2025 for nuclear defense resources and nuclear forces development and production.

(Sec. 20009) This section provides additional funding for FY2025 for (1) various military exercises and infrastructure in the Indo-Pacific region, (2) classified military space-superiority programs, and (3) military support to the government of Taiwan.

(Sec. 20010) This section provides additional funding for FY2025 to enhance and modernize (1) military depots and shipyards, and (2) Special Operations Command (SOCOM) equipment. 

(Sec. 20011) This section provides additional funding for FY2025 to support border operations, including deployment of military personnel.

(Sec. 20012) This section provides additional funding for FY2025 to enhance military intelligence programs.

(Sec. 20013) This section provides additional funding for FY2025 for the DOD Office of Inspector General to monitor the activities for which funding is provided under this title.

(Sec. 20014) This section authorizes each military department to use funding under this title for military construction, land acquisition, and military family housing. Each military department must submit a detailed spending plan to Congress.

(Sec. 20015) This section requires DOD to submit a spending plan and subsequent expenditure reports to Congress for funding provided under this title.

(Sec. 20016) This section prohibits any agreements that would require the payment of any funds provided under this title after September 30, 2034.

TITLE III--COMMITTEE ON EDUCATION AND WORKFORCE

This title makes various changes to higher education, particularly to the federal student loan system.

Subtitle A--Student Eligibility

This subtitle revises eligibility for federal student aid and the amount of aid students may receive.

(Sec. 30001) This section revises the citizenship categories that qualify a student for federal student aid. The section specifies eligibility for certain nationals of Cuba, Ukraine, or Afghanistan, and individuals who lawfully reside in the United States in accordance with a Compact of Free Association (i.e., the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau).

(Sec. 30002) This section changes the way student eligibility for need-based federal aid is calculated by basing the calculation on the median cost of attendance by program of study from all institutions of higher education (IHEs) that offer such program of study rather than the cost of attendance of a student’s specific program as determined by their IHE.

The section also restores an exemption for certain family farms and small businesses on the Free Application for Federal Student Aid (FAFSA) form. This section applies to the net worth of (1) a family farm on which the family resides, or (2) a small business with not more than 100 full-time or full-time equivalent employees that is owned and controlled by the family.

Subtitle B--Loan Limits

This subtitle makes various changes to federal student loans. 

(Sec. 30011) This section terminates the ability of undergraduate students to receive subsidized loans and terminates the ability of graduate or professional students to receive Direct PLUS Loans beginning on July 1, 2026. It provides an exception (of up to three academic years) for a student who is already enrolled in a program of study and received a loan for the program. 

The section also places certain restrictions on Parent PLUS Loans. In particular, parents may only borrow a Parent Plus Loan if the dependent student has already taken out their maximum annual unsubsidized loan amount. 

The section also establishes new annual and aggregate loan limits for borrowers. For example, the section sets an overall aggregate lifetime borrowing limit of $200,000 for any single borrower across all federal loan types.

The section allows IHEs to set lower loan limits.

Subtitle C--Loan Repayment

This subtitle revises loan repayment options for federal student loans.

(Sec. 30021) This section terminates all current student loan repayment plans for loans disbursed on or after July 1, 2026.

The Department of Education (ED) may only offer borrowers two options for repayment of federal student loans: a standard repayment plan (with the length of the repayment term determined by the total amount borrowed) and an income-based repayment plan (to be known as the Repayment Assistance Plan).

(Sec. 30022) This section eliminates economic hardship and unemployment deferments beginning on July 1, 2025. It also reduces the total period a borrower may be in forbearance.

A borrower who is serving in a medical or dental internship or residency program may be eligible for a forbearance in which no interest accrues for the first four 12-month intervals. However, interest begins to accrue for any subsequent 12-month interval. 

(Sec. 30023) This section allows borrowers to rehabilitate a defaulted loan twice (currently, only once). However, beginning on July 1, 2025, the borrower must pay a minimum payment amount of $10.

(Sec. 30024) This section allows payments under the new Repayment Assistance Plan to count as qualifying payments for purposes of the Public Service Loan Forgiveness (PSLF) program.

The section also specifies that a public service job, for purposes of the PSLF program, does not include time served in a medical or dental internship or residency program by an individual who, as of June 30, 2025, has not borrowed a Federal Direct PLUS Loan or a Federal Direct Unsubsidized Stafford Loan. 

(Sec. 30025) This section provides FY2025 and FY2026 funding to ED for administrative costs.

Subtitle D--Pell Grants

This subtitle makes changes to Pell Grants.

(Sec. 30031) This section requires foreign income that is exempt from taxation or foreign income for which an individual receives a foreign tax credit to be included in the adjusted gross income calculation for purposes of calculating eligibility for Pell Grants.

Students with a student aid index that equals or exceeds twice the amount of the total maximum Pell Grant are ineligible for Pell Grants, regardless of their adjusted gross income. 

The section also increases the number of credits needed to qualify for full-time enrollment in order to receive Pell Grants.

The section prohibits a student who is enrolled less than half time from receiving a Pell Grant.

The section’s changes take effect beginning on July 1, 2025.

(Sec. 30032) This section requires ED to award Workforce Pell Grants to students enrolled in eligible workforce programs. Eligible programs are those that provide at least 150 clock hours (but less than 600 clock hours) of instruction during a minimum of 8 weeks (but less than 15 weeks).

The section’s changes take effect beginning on July 1, 2026.

(Sec. 30033) This section increases funding for Pell Grants for FY2026-FY2028.

Subtitle E--Accountability

This subtitle creates a new risk-sharing framework for IHEs.

(Sec. 30041) This section requires IHEs participating in federal student loan programs to make annual risk-sharing payments based on the nonrepayment balance of student loan cohorts. 

The section also outlines penalties for late or missing payments. For example, the section prohibits an IHE from offering Direct Loans to students if the IHE has not made a payment within 12 months of receiving a notification from ED. The section also prohibits an IHE from offering Direct Loans or awarding Pell Grants if the IHE has not made a risk-sharing payment in 18 months. If an IHE fails to make a payment within two years, the IHE may not participate in federal student loan programs for a minimum of 10 years.

The section’s changes take effect beginning with award year 2028-2029.

(Sec. 30042) This section establishes the Promoting Real Opportunities to Maximize Investments and Savings in Education (PROMISE) grant program. To receive a PROMISE grant, an IHE must meet maximum total price guarantee requirements (as outlined in the section). These grants may be used to carry out activities related to postsecondary affordability, access, and student success.

Subtitle F--Regulatory Relief

This subtitle repeals several rules and regulations related to higher education.

(Sec. 30051) This section repeals the 90/10 rule, which requires proprietary (i.e., for profit) IHEs participating in federal student aid programs to derive at least 10% of their tuition and fee revenue from nonfederal funds.

The section also removes references to gainful employment within the Higher Education Act of 1965.

The section repeals ED regulations pertaining to closed school discharges of qualifying federal student loans and borrower defense to repayment.

Regulations repealed by this section are replaced with those regulations that were in effect on June 30, 2023.

The section also prohibits ED from implementing any rule, regulation, policy, or executive action regarding these regulations unless explicitly authorized by an act of Congress.

Subtitle G--Limitation on Authority

This subtitle limits the authority of ED to propose or issue regulations and executive actions related to federal student aid programs.

(Sec. 30061) This section prohibits ED from issuing a proposed rule, final regulation, or executive action if ED determines that the rule, regulation, or action (1) is economically significant, and (2) would result in an increase in a subsidy cost. Economically significant refers to a regulation or executive action that is likely to (1) have an annual effect on the economy of $100 million or more; or (2) adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or state, local, or tribal governments or communities.

TITLE IV--ENERGY AND COMMERCE

Subtitle A--Energy

(Sec. 41001) This section rescinds the unobligated funds that were provided by the Inflation Reduction Act for various energy programs, such as State-Based Home Energy Efficiency Contractor Training Grants, the Advanced Technology Vehicles Manufacturing Loan Program, and the Tribal Energy Loan Guarantee Program. 

(Sec. 41002) This section directs the Federal Energy Regulatory Commission (FERC) to issue certificates of crossing for certain energy infrastructure at international boundaries of the United States and establishes a fee for the certificate. Under this section, no person may construct, connect, operate, or maintain a cross-border segment (i.e., located at an international boundary between the United States and Mexico or Canada) for the import or export of certain energy-related products, or for the transmission of electricity, without first obtaining the certificate of crossing from FERC. The section includes an exception for cross-border segments that were previously authorized by a Presidential permit. 

(Sec. 41003) This section establishes fees for certain natural gas exports and imports.

(Sec. 41004) This section provides funding to the Department of Energy (DOE) for administrative expenses for carrying out loan guarantees related to liquefied natural gas pipeline projects from Alaska. 

(Sec. 41005) This section allows for expedited permitting for certain natural gas projects. 

(Sec. 41006) This section allows certain carbon dioxide, hydrogen, and petroleum pipeline projects to be permitted under the same procedures as certain natural gas projects. 

(Sec. 41007) This section establishes and provides funding for a De-risking Compensation Program that provides compensation for unrecoverable losses associated with energy projects that, for example, have had federal approval revoked.

(Sec. 41008) This section provides funding for the Strategic Petroleum Reserve (SPR). It also repeals a provision that requires DOE to draw down and sell a specified quantity of crude oil from the SPR during FY2026-FY2027. 

(Sec. 41009) This section rescinds unobligated funds that were provided to DOE for the Office of the Inspector General, Office of Clean Energy Demonstrations, State and Community Energy Programs, Office of Indian Energy Policy and Programs, Office of Energy Efficiency and Renewable Energy, and other offices and programs.

Subtitle B--Environment

Part 1--Repeals and Rescissions

This part repeals certain programs established under the Inflation Reduction Act of 2022 and rescinds certain funds provided under the act.

(Sec. 42101) This section repeals a program under which the Environmental Protection Agency (EPA) provides (1) grants and rebates to replace certain medium-duty vehicles (e.g., school buses) and heavy-duty vehicles (e.g., garbage trucks) with zero-emission vehicles, and (2) awards to replace such vehicles in communities located in areas designated as nonattainment areas under the Clean Air Act (e.g., areas that do not meet national air quality standards). 

(Sec. 42102) This section repeals a program under which the EPA provides incentives to reduce air pollution at certain ports. Under the program, the EPA awards rebates and grants to port authorities and other eligible entities to (1) purchase or install equipment and technology to reduce pollution at ports, (2) conduct any relevant planning or permitting in connection with those purchases, and (3) develop climate action plans. The program also provides additional funding for rebates and grants for carrying out such activities in ports located in areas designated as nonattainment areas under the Clean Air Act. 

(Sec. 42103) This section repeals the Greenhouse Gas Reduction Fund, which provides financial and technical assistance to states and other eligible recipients to help enable low-income and disadvantaged communities carry out activities to reduce greenhouse gas emissions.

(Sec. 42104) This section repeals an EPA program that gives grants, rebates, and loans under the Energy Policy Act of 2005 to identify and reduce diesel emissions resulting from goods movement (e.g., distribution of raw materials and consumer products) facilities as well as vehicles servicing those facilities in low-income and disadvantaged communities. 

(Sec. 42105) This section repeals funding for a variety of programs that provide incentives to monitor and reduce air pollution and greenhouse gases, including funding for grants and other activities to

deploy, integrate, support, and maintain stations, technology, and other methods to monitor air toxins;

expand the national ambient air quality monitoring network with new multi-pollutant monitoring stations;

replace, repair, operate, and maintain existing monitors;

deploy, integrate, and operate air quality sensors in low-income and disadvantaged communities;

address emissions from wood heaters;

monitor emissions of methane;

conduct research and development related to the prevention and control of air pollution; and

encourage states to adopt and implement greenhouse gas and zero-emission standards for mobile sources.

(Sec. 42106) This section rescinds specified funds for grants and other activities to monitor and reduce greenhouse gas emissions and other air pollutants at schools in low-income and disadvantaged communities. Further, it rescinds funding for technical assistance to schools in low-income and disadvantaged communities to (1) address environmental issues; (2) develop school environmental quality plans that include standards for school building, design, construction, and renovation; and (3) identify and mitigate ongoing air pollution hazards. 

(Sec. 42107) This section rescinds funding for a low emissions electricity program that provides education, technical assistance, and outreach to reduce greenhouse gas emissions that result from domestic electricity generation and use. 

(Sec. 42108) This section rescinds funding provided under the EPA’s Renewable Fuel Standard Program for

the development and establishment of tests and protocols regarding the environmental and public health effects of a fuel or fuel additive;

the collection and analysis of data to update applicable regulations, guidance, and procedures for determining the amount of greenhouse gas emissions from a fuel over the fuel's life cycle (e.g., production, processing, transport);

the review, analysis, and evaluation of the impacts of all transportation fuels on the public as well as on low-income and disadvantaged communities; and

supporting investments in advanced biofuels.

(Sec. 42109) This section rescinds funding to implement the American Innovation and Manufacturing Act of 2020, which directs the EPA to address hydrofluorocarbons (HFC). HFCs are greenhouse gases that are used in applications such as air conditioning, refrigeration, fire suppression, and aerosols. 

(Sec. 42110) This section rescinds funding to update the EPA's Integrated Compliance Information System and any associated systems, necessary information technology infrastructure, or public access software tools to ensure access to compliance data and related information. Further, it also rescinds funding for grants to states, Indian tribes, and air pollution control agencies to update their systems to ensure communication with EPA’s system. Finally, it rescinds funding to the EPA for updating inspection software or acquiring such software or devices on which to run the software. 

(Sec. 42111) This section rescinds funding for the EPA to support (1) enhanced standardization and transparency of corporate climate action commitments and plans to reduce greenhouse gas emissions; (2) enhanced transparency regarding progress toward meeting such commitments and implementing such plans; and (3) progress toward meeting such commitments and implementing such plans.

(Sec. 42112) This section repeals the EPA’s program that supports the development, enhanced standardization and transparency, and reporting criteria for environmental product declarations for construction materials and products. The declarations must include measurements of the greenhouse gases associated with all the relevant stages of production, use, and disposal of the construction materials and products.

(Sec. 42113) This section repeals the methane emissions reduction program under which the EPA provides financial incentives to encourage the reporting of greenhouse gases, the monitoring of methane, and the reduction of methane emissions from petroleum and natural gas systems. 

(Sec. 42114) This section repeals the EPA’s program that awards grants to states, air pollution control agencies, municipalities, and Indian tribes for developing and implementing plans to reduce greenhouse gas air pollution. 

(Sec. 42115) This section rescinds certain funding relating to the EPA providing efficient, accurate, and timely reviews, including

developing efficient, accurate, and timely reviews for permitting and approval processes through the hiring and training of personnel;

developing programmatic documents;

procuring technical or scientific services for reviews;

developing environmental data or information systems;

engaging stakeholders;

purchasing new equipment for environmental analysis; and

developing geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement.

(Sec. 42116) This section repeals a program under which the EPA identifies and labels construction materials and products that have substantially lower levels of greenhouse gas emissions associated with all the relevant stages of production, use, and disposal of the materials and products. 

(Sec. 42117) This section repeals funding to the EPA for environmental and climate justice block grants that benefit disadvantaged communities. 

Part 2--Repeal of EPA Rule Relating to Multi-Pollutant Emissions Standards

This part nullifies the final rule issued by the EPA titled Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles and published on April 18, 2024. The rule established and modified requirements for certain light-duty or medium-duty vehicles (e.g., cars, trucks, and sports utility vehicles that are under a certain weight), including requirements related to (1) emission standards, such as a greenhouse gas emission standard; (2) the durability of batteries for certain electric and hybrid vehicles; and (3) measuring fuel economy.

Part 3--Repeal of NHTSA Rule Relating to CAFE Standards

This part nullifies the final rule issued by the National Highway Traffic Safety Administration titled Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027 and Beyond and Fuel Efficiency Standards for Heavy-Duty Pickup Trucks and Vans for Model Years 2030 and Beyond and published on June 24, 2024.

Subtitle C--Communications 

Part 1--Spectrum Auctions

(Sec. 43101) This section renews the authority of the Federal Communications Commission (FCC) to auction licenses for the use of radio frequency spectrum and requires certain frequencies to be reallocated and auctioned on an exclusive, licensed basis for fixed and mobile broadband.

Specifically, this section reauthorizes the FCC’s use of competitive bidding (i.e., auctions) to grant licenses for the use of specific frequencies through September 30, 2034. (The FCC’s auction authority must be renewed by Congress periodically. It expired on March 9, 2023, and has not been renewed.)

Further, within two years of this title’s enactment, the National Telecommunications and Information Administration (NTIA) must identify at least 600 megahertz of spectrum at frequencies between 1.3 and 10 gigahertz for reallocation to nonfederal use on an exclusive, licensed basis. (Certain frequencies used primarily by the Department of Defense and unlicensed devices, including Wi-Fi, are excluded from auction eligibility.) To the extent that the identified spectrum is currently assigned to federal users, the NTIA must withdraw or modify such assignments. 

The FCC must conduct one or more auctions of the identified spectrum for use on an exclusive, licensed basis for mobile broadband, fixed broadband, or a combination thereof. The FCC must complete auctioning at least 200 megahertz of the identified spectrum within three years of this title’s enactment, and must complete auctioning any remaining spectrum within six years of enactment.

Part 2--Artificial Intelligence and Information Technology Modernization

(Sec. 43201) This section prohibits states and localities from regulating artificial intelligence (AI) models, AI systems, or automated decision systems for 10 years. This prohibition does not apply to any state law or regulation

the primary purpose and effect of which is to remove legal impediments to, facilitate the deployment or operation of, or consolidate administrative procedures in a manner that facilitates the adoption of AI models, AI systems, or automated decision systems;

that does not impose substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirements on AI models, AI systems, or automated decision systems, unless such requirements are imposed under federal law or are generally applicable to other models and systems that perform similar functions; or

that imposes only fees and bonds that are reasonable and cost-based and treat other models and systems that perform similar functions in the same manner as AI models, AI systems, and automated decision systems. 

This section also provides specified funds to the Department of Commerce to modernize and secure federal information technology systems through the replacement of some existing systems and the deployment of commercial AI and automation technologies. Specifically, Commerce must use funds appropriated under this section to (1) replace or modernize legacy business systems with commercial AI and automated decision systems; (2) facilitate the adoption of AI models that increase efficiency and service delivery; and (3) improve the cybersecurity of federal information technology systems through modernized architecture, automated threat detection, and integrated AI solutions. 

Under this section, AI is defined as a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. An AI model is a software component of an information system that implements AI technology and uses computational, statistical, or machine-learning techniques to produce outputs from a defined set of inputs. An AI system is any data system, software, hardware, application, tool, or utility that operates in whole or in part using AI. An automated decision system is any computational process derived from machine learning, statistical modeling, data analytics, or AI that issues a simplified output (e.g., a score, classification, or recommendation) to materially influence or replace human decision making.

Subtitle D--Health

Part 1--Medicaid

Subpart A--Reducing Fraud and Improving Enrollment Processes

(Sec. 44103) This section requires the Centers for Medicare & Medicaid Services (CMS) to establish a centralized system for states to check whether enrollees are simultaneously enrolled in Medicaid or the Children’s Health Insurance Program (CHIP) in multiple states. 

Beginning no later than 2027, states must regularly obtain the addresses of Medicaid and CHIP enrollees from specified authorized sources. Beginning no later than FY2030, states must report on at least a monthly basis the Social Security numbers of enrollees to the CMS' newly established system. The CMS must notify states on at least a monthly basis of individuals who are enrolled in multiple states so that states may take appropriate action. 

The section provides funds for FY2026 and FY2029 for the CMS to establish and maintain the new system, respectively.

(Sec. 44104) This section requires state Medicaid programs to check, beginning in 2028, the Social Security Administration's Death Master File on at least a quarterly basis to determine whether Medicaid enrollees are deceased.

(Sec. 44105) This section requires state Medicaid programs to check, beginning in 2028, as part of the provider enrollment and reenrollment process, whether providers were terminated from participating in the Medicare program, any other state Medicaid program, or CHIP using certain databases (e.g., the Data EXchange system). The section requires states to continue to check these databases on at least a monthly basis after providers are enrolled.

(Sec. 44106) This section provides statutory authority for the requirement that state Medicaid programs check, as part of the provider enrollment and reenrollment process, whether providers are deceased through the Social Security Administration's Death Master File. Beginning in 2028, the section requires states to continue to check this database on at least a quarterly basis after providers are enrolled.

(Sec. 44108) This section requires state Medicaid programs to redetermine every six months, beginning in FY2028, the eligibility of individuals who are enrolled in Medicaid as part of the Medicaid expansion population under the Patient Protection and Affordable Care Act. (The act allows states to extend Medicaid coverage to all adults under the age of 65 with incomes of up to 138% of the federal poverty level, including able-bodied adults without dependent children.)

(Sec. 44111) This section reduces by 10%, beginning in FY2028, the enhanced federal matching rate for the Medicaid expansion population in states that provide comprehensive health benefits or financial assistance for purchasing health benefits to individuals who are not lawfully residing in the United States, regardless of the source of the benefits or financial assistance.

Subpart B--Preventing Wasteful Spending

(Sec. 44123) This section provides funds through FY2033 for the CMS to survey retail and non-retail pharmacies (e.g., mail-order pharmacies) to determine average prices of covered outpatient drugs under Medicaid. Pharmacies that fail to participate in the surveys are subject to civil penalties.

The section additionally provides funds for FY2026 for the Office of the Inspector General of the Department of Health and Human Services (OIG) to study the results of the survey and report accordingly to Congress.

(Sec. 44124) This section requires pass-through pricing models, and prohibits spread-pricing, for payment arrangements with pharmacy benefit managers (PBMs) under Medicaid.

(Sec. 44125) This section prohibits federal payment under Medicaid or CHIP for specified gender transition procedures for individuals under the age of 18. The section defines these procedures to mean those that are intended to change the body of an individual to no longer correspond to the individual's biological sex (male or female), including specified surgeries, implants, and medications (e.g., hormones).

The section excludes procedures that are provided to an individual under the age of 18 with the consent of a parent or legal guardian and that are intended to (1) rectify early puberty, genetic disorders, or chromosomal abnormalities; (2) reverse prior gender transition procedures; or (3) prevent imminent death or impairment of a major bodily function.

(Sec. 44126) This section prohibits federal Medicaid payment for 10 years to nonprofit health care providers that serve predominantly low-income, medically underserved individuals (i.e., essential community providers) if the provider (1) primarily furnishes family planning services, reproductive health, and related care; (2) offers abortions in cases other than that of rape, incest, or life-threatening conditions for the woman; and (3) in FY2024, received federal and state Medicaid payments totaling more than $1 million.

Subpart C--Stopping Abusive Financing Practices

(Sec. 44131) This section requires states that had not chosen to expand Medicaid pursuant to the Patient Protection and Affordable Care Act prior to March 11, 2021, to do so by January 1, 2026, in order to receive the corresponding enhanced federal matching rate.

(Sec. 44132) This section generally precludes states from instituting new or otherwise increasing Medicaid provider taxes. Specifically, the section precludes the revenue from any Medicaid provider tax that is newly imposed or increased by a state from qualifying for federal matching payments. 

(Sec. 44133) This section provides funds through FY2033 for the CMS to revise regulations so as to limit state-directed payments for inpatient hospital services, outpatient hospital services, nursing facility services, or qualified practitioner services at an academic medical center under Medicaid managed care contracts to the payment rate for services under Medicare, rather than the average commercial rate.

Subpart D--Increasing Personal Accountability

(Sec. 44141) This section requires, beginning in 2029, individuals who are eligible for Medicaid as part of the Medicaid expansion population to engage in community service, work, or other activities in order to qualify for Medicaid.

Specifically, the section requires these individuals to, on a monthly basis, (1) work at least 80 hours, (2) complete at least 80 hours of community service, (3) participate in a work program for at least 80 hours, (4) be enrolled at least half-time in an educational program, or (5) engage in any combination thereof for a total of at least 80 hours. Individuals may also qualify if they have a monthly income that is at least as much as the equivalent of minimum wage multiplied by 80 hours.

Individuals who are applying for Medicaid must demonstrate compliance with these requirements for one month or more (as determined by the state) consecutively and immediately prior to filing an application; individuals who are already enrolled in Medicaid must demonstrate compliance for one month or more (as determined by the state), whether or not consecutive, during the period between the individual’s last eligibility determination and the next scheduled eligibility determination. 

States must verify an individual’s compliance upon a determination or redetermination of eligibility but may also choose to verify compliance more frequently. States may not waive the new requirements. However, states may choose to provide an exception for individuals experiencing short-term hardships (e.g., hospitalization).

The section excludes certain individuals from these requirements, including those with serious medical conditions or dependent children. 

The section provides funds for FY2026 for states and the CMS to implement these requirements.

(Sec. 44142) This section requires, beginning in FY2029, states to institute cost-sharing requirements for individuals who are eligible for Medicaid as part of the Medicaid expansion population and whose family income exceeds the federal poverty line. Cost sharing may not exceed $35 for an item or service; total cost sharing for all individuals in a family may not exceed 5% of the family’s income. 

The requirements do not apply to services for which cost sharing is already prohibited (e.g., emergency services). States may allow providers to condition the provision of services upon the payment of any required cost sharing.

Part 2--Affordable Care Act

(Sec. 44201) This section modifies enrollment, coverage, and other aspects of health insurance exchanges beginning in 2026, including prohibiting the mandate of special enrollment periods based on income, requiring verification of income and other eligibility requirements prior to certain enrollments, and prohibiting coverage of gender transition procedures as an essential health benefit.

Part 3--Improving Americans’ Access to Care

(Sec. 44301) This section modifies certain provisions under the Medicare Drug Price Negotiation Program with respect to orphan drugs.

The Medicare Drug Price Negotiation Program requires the CMS to negotiate the prices of certain prescription drugs under Medicare beginning in 2026. Among other requirements, drugs must have had market approval for at least 7 years (for drug products) or 11 years (for biologics) to qualify for negotiation. The program does not apply to orphan drugs that are approved to treat only one rare disease or condition.

The bill modifies these provisions so as to exclude any period in which a drug was an orphan drug from market approval calculations. It also excludes orphan drugs that are approved to treat more than one rare disease or condition from the program. The changes take effect in 2028.

(Sec. 44302) This section requires states to establish a process through which qualifying out-of-state providers may temporarily treat children under Medicaid and CHIP without undergoing additional screening requirements. 

Specifically, states must establish a process through which qualifying out-of-state providers may enroll for five years as participating providers to treat individuals under the age of 21 without undergoing additional screening requirements.

A qualifying out-of-state provider (1) must not have been excluded or terminated from participating in a federal health care program or state Medicaid program; and (2) must have been successfully enrolled in Medicare or a state Medicaid program based on a determination that the provider posed a limited risk of fraud, waste, or abuse.

The section’s changes take effect four years after enactment.

(Sec. 44305) This section prohibits PBMs under the Medicare prescription drug benefit or Medicare Advantage from receiving any income for their services other than bona fide service fees. It also establishes reporting requirements for PBMs relating to the prices of prescription drugs.

Specifically, beginning in 2028, PBMs may not receive any income other than flat, bona fide service fees. PBMs must turn over any excess amounts they receive to prescription drug plan (PDP) sponsors; PDP sponsors must turn over these amounts to the CMS. In addition, PBMs must report to PDP sponsors and to the CMS an itemized list of prescription drugs that were dispensed during the previous year and related data about costs, claims, affiliated pharmacies, and other specified information. The section provides funds for FY2025 for the CMS and the OIG to implement these requirements.

TITLE V--COMMITTEE ON FINANCIAL SERVICES

(Sec. 50001) This section rescinds unobligated funds from the Green and Resilient Retrofit Program under the Department of Housing and Urban Development (HUD). The program provides funding for energy efficiency improvements in multifamily properties receiving HUD assistance. 

(Sec. 50002) This section transfers the duties of the Public Company Accounting Oversight Board to the Securities and Exchange Commission. The board is a nonprofit corporation that regulates the audits of publicly traded companies.

(Sec. 50003) This section reduces funding for the Consumer Financial Protection Bureau (CFPB) and makes such funding subject to review by Congress.

(Sec. 50004) This section requires the CFPB to transfer excess funds in the Civil Penalty Fund to the general fund of the Treasury after paying direct victims of consumer financial law violations. Currently, the CFPB uses such funds for consumer education and financial literacy programs. 

(Sec. 50005) This section limits the amounts collected by the Office of Financial Research for the Financial Research Fund.

TITLE VI--COMMITTEE ON HOMELAND SECURITY

(Sec. 60001) This section provides funding to U.S. Customs and Border Protection (CBP) for construction, installation, or improvement to barriers; access roads; detection technology; invasive plant species eradication; and expenses for facilities and checkpoints along U.S. borders. 

(Sec. 60002) This section provides funding for CBP personnel, bonuses, facilities, and fleet vehicles.

(Sec. 60003) This section provides funding for CBP inspection and surveillance equipment, rapid air and marine response capabilities, the vetting of foreign nationals, and activities to prevent drug trafficking.

(Sec. 60004) This section provides funding to the Federal Emergency Management Agency (FEMA) for reimbursing state and local law enforcement for extraordinary costs associated with protecting a residence of the President. 

(Sec. 60005) This section provides funding to FEMA (1) to assist state and local authorities to detect, identify, track, or monitor unmanned aircraft systems; (2) for security, planning, and other costs related to the 2026 FIFA World Cup; (3) for security, planning, and other costs related to the 2028 Olympics; and (4) for the Operation Stonegarden grant program.

TITLE VII--COMMITTEE ON THE JUDICIARY

Subtitle A--Immigration Matters

Part 1--Immigration Fees

This part establishes additional or increased fees for various immigration programs and procedures.

These fees include those required for

applications for asylum,

employment authorizations for asylees, parolees, and individuals granted temporary protected status,

individuals paroled into the United States,

individuals applying for special immigrant juvenile status,

individuals applying for Temporary Protected Status, and

sponsoring the placement of an unaccompanied child.

This part also establishes various fees for specified judicial and adjudicative filings, including

filing in immigration court an application for waiver of grounds of inadmissibility,

filing an appeal of a decision of an immigration judge or a DHS officer, and

a practitioner filing an appeal in a disciplinary case. 

Part 2--Use of Funds

This part provides funding for various immigration agencies and offices for purposes of immigration enforcement, removal, maintenance of facilities, and program operations. This includes the Executive Office for Immigration Review, U.S. Immigration and Customs Enforcement, U.S. Customs and Border Protection, the Office of Refugee Resettlement, and the performance of immigration officer functions by state officers and employees.

(Sec. 70120) This section provides funding for the U.S. Secret Service.

(Sec. 70121) This section provides funding for the Department of Justice to combat drug trafficking. 

Subtitle B--Regulatory Matters

(Sec. 70200) This section requires congressional approval for the enactment of certain major rules by a federal agency. 

Specifically, the section establishes a congressional approval process for major rules that increase revenues. Such a major rule may only take effect if Congress approves of the rule.

In addition, the section establishes a procedure for disapproving rules that increased revenues submitted during the final year of a president’s term.

Over the next five years, agencies must annually submit for review rules currently in effect. Any rule not approved by Congress at the end of this review period is discontinued. 

The section provides funding to the Office of Management and Budget and to the Government Accountability Office to carry out this section.

Subtitle C--Other Matters

(Sec. 70300) This section prohibits the federal government from entering into or enforcing a settlement agreement on behalf of the United States that provides for a payment to any person or entity other than the United States. The section provides exceptions to allow payments that (1) remedy actual harm (including to the environment) caused by the party making the payment, or (2) constitute a payment for services rendered in connection with the case.

The office of inspector general for each agency must report annually on any settlement agreements that violate the section’s requirements.

(Sec. 70301) This section expands the definition of solicitation of orders to include business activities that serve an independently valuable business function apart from the solicitation of orders for purposes of the limitation on a state’s authority to impose a net income tax on an out-of-state seller.

Under current law, a state is prohibited from imposing a net income tax on income derived from within the state from interstate commerce if the only business activity within the state is the solicitation of orders for the sale of tangible personal property, provided that the orders are approved (or rejected) and filled by shipment or delivery from outside of the state. Further, the Supreme Court has held that the term solicitation of orders includes (1) activities that are strictly essential to making requests for purchases, and (2) ancillary activities that serve no independent business function apart from their connection to requests for purchases.

Under this section, the definition of solicitation of orders is expanded to include business activities that facilitate the solicitation of orders even if such business activities serve an independently valuable business function apart from the solicitation.

(Sec. 70302) This section limits the ability of U.S. courts to enforce a citation for contempt for failure to comply with an injunction or temporary restraining order. Specifically, if no security was given when the injunction or order was issued, the citation of contempt may not be enforced using appropriated funds. This limitation applies to injunctions or orders issued before, on, or after the date of enactment.

TITLE VIII--COMMITTEE ON NATURAL RESOURCES

Subtitle A--Energy and Mineral Resources

Part I--Oil and Gas

(Sec. 80101) This section establishes requirements about leasing onshore federal land for oil and natural gas development, including by directing the Department of the Interior to immediately resume onshore quarterly lease sales. 

(Sec. 80102) This section modifies noncompetitive leasing procedures under the Mineral Leasing Act. For example, it directs lands which do not receive bids during an oil and gas lease sale, or where the highest bid is less than the national minimum, to be offered within 30 days for noncompetitive leasing.

(Sec. 80103) This section directs Interior to approve applications that allow for the commingling of production from two or more sources (e.g., the area of an oil and gas lease and nonfederal property) before production reaches the point of royalty measurement if a fee of $10,000 is paid and other conditions are met.

It also directs Interior to establish a permit-by-rule process under which leaseholders may obtain approval to drill for oil and gas on federal land if the leaseholder pays a $5,000 fee and complies with other established regulations.

(Sec. 80104) This section prohibits Interior from requiring a permit to drill for an oil and gas lease under the Mineral Leasing Act if the leaseholder pays a fee of $5,000 and criteria related to nonfederal ownership of the land or minerals are met.

(Sec. 80105) This section decreases the minimum royalty rates for onshore and offshore development of oil and gas on federal lands.

Part II--Geothermal

(Sec. 80111) This section directs Interior to hold geothermal lease sales annually and conduct replacement sales for canceled or delayed lease sales.

(Sec. 80112) This section modifies royalty provisions under the Geothermal Steam Act of 1970, including by stating that geothermal facilities on the same geothermal lease are treated as separate facilities with respect to royalty payment.

Part III--Alaska

(Sec. 80121) This section modifies provisions concerning the production of oil and gas from the Arctic National Wildlife Refuge (ANWR) in Alaska, including by providing for the reissuance of certain leases for energy development. 

The section also directs Interior to conduct at least four lease sales under the Coastal Plain Oil and Gas Leasing Program in the ANWR not later than seven years after enactment of the bill. Additionally, it outlines how the revenues derived from the program must be divided between Alaska and the federal government.

(Sec. 80122) This section restores and resumes the National Petroleum Reserve-Alaska (NPR-A) oil and gas program. It also outlines how the revenues derived from the program must be divided between Alaska and the federal government.

Part IV--Mining

(Sec. 80131) This section nullifies the Bureau of Land Management’s Public Land Order No. 7917 for Withdrawal of Federal Lands; Cook, Lake, and Saint Louis Counties, MN that was published on January 31, 2023.

It also reinstates certain hardrock mineral leases in the Superior National Forest in Minnesota.

(Sec. 80132) This section provides for the establishment of a surface transportation access corridor for the Ambler Road Project in Alaska.

Part V--Coal

(Sec. 80141) This section directs Interior to hold certain coal lease sales.

(Sec. 80142) This section nullifies Interior's Secretarial Order 3338, which placed a hold on most new federal coal leases until the BLM completes a comprehensive review of the federal coal program.

(Sec. 80143) This section temporarily decreases the royalty rate for coal leases on federal lands.

(Sec. 80144) This section authorizes all federal coal reserves leased under Federal Coal Lease MTM 97988 to be mined in accordance with the Bull Mountains Mining Plan Modification.

Part VI--NEPA

(Sec. 80151) This section modifies the environmental review process under the National Environmental Policy Act of 1969, including by allowing a project sponsor to opt to pay a fee for the preparation and completion of an environmental assessment or environmental impact statement by certain deadlines.

(Sec. 80152) This section rescinds certain funding for the Council on Environmental Quality, including funding for (1) collecting data related to environmental and climate issues, (2) tracking disproportionate burdens and cumulative impacts, and (3) supporting efforts to ensure that any mapping or screening tool is accessible to community-based organizations and community members. 

Part VII--Miscellaneous

(Sec. 80161) This section establishes a filing fee for protests of oil and gas lease sales.

Part VIII--Offshore Oil and Gas Leasing

(Sec. 80171) This section directs Interior to hold a specified number of offshore oil and gas lease sales on certain submerged lands of the Outer Continental Shelf (OCS), including areas in the Gulf of America and the Cook Inlet Planning Area in Alaska.

(Sec. 80172) This section directs Interior to approve operator requests to commingle production from multiple reservoirs within a single wellbore completed on the OCS of the Gulf of America unless conclusive evidence shows the practice would be unsafe or reduce recovery.

(Sec. 80173) This section modifies the Gulf of Mexico Energy Security Act of 2006 to raise the cap on the distribution of OCS revenues from $500 million to $650 million for FY2026-FY2034.

Part IX--Renewable Energy

(Sec. 80181) This section establishes requirements related to renewable energy fees on federal lands, including by providing statutory authority for annual acreage rent for wind and solar rights-of-ways.

(Sec. 80182) This section provides a mechanism for states, counties, and the federal government to share revenues from renewable energy projects on public lands.

Subtitle B--Water, Wildlife, and Fisheries

(Sec. 80201) This section rescinds funding provided to the National Oceanic and Atmospheric Administration (NOAA) that NOAA uses to provide financial or technical assistance to coastal states and other eligible entities in order to enable coastal communities prepare for extreme storms and other changing climate conditions. The assistance may be used for the conservation, restoration, and protection of coastal habitat, marine habitats, and marine fisheries.

(Sec. 80202) This section rescinds funding for certain NOAA facilities (e.g., piers, fisheries laboratories, and national marine sanctuaries facilities).

(Sec. 80203) This section provides funding to the Bureau of Reclamation for construction and associated activities that increase the capacity of existing Reclamation surface water storage facilities.

(Sec. 80204) This section provides funding to Reclamation for construction and associated activities that increase the capacity of existing Reclamation conveyance facilities.

Subtitle C--Federal Lands

(Sec. 80301) This section prohibits the Bureau of Land Management (BLM) from implementing, administering, or enforcing the Rock Springs Field Office Record of Decision and Approved Resource Management Plan, which was signed on December 20, 2024. The plan includes guidance for managing public lands administered by the office and located in Lincoln, Sweetwater, Uinta, Sublette, and Fremont Counties in southwestern Wyoming.

(Sec. 80302) This section prohibits the BLM from implementing, administering, or enforcing its 2024 Approved Resource Management Plan Amendment for its Buffalo Field Office in Wyoming. The field office manages 780,291 acres of public lands and 4,731,140 acres of mineral estates within Campbell, Johnson, and Sheridan Counties in north-central Wyoming.

In 2015, the BLM published a management plan for the field office that allowed leases of certain public lands or mineral estates within the office's planning area for the development of coal. 

In 2018, the U.S. District Court for the District of Montana in Western Organization of Resource Councils v. Bureau of Land Management ordered the BLM to complete a new environmental impact statement (EIS) for the management plan under the National Environmental Policy Act of 1969, which requires an agency to include all reasonable alternatives to its action and the environmental impacts resulting from the action. Specifically, the court ordered the BLM to issue an EIS that considers an alternative of not leasing coal under the management plan as well as an alternative that limits the amount of coal potentially available for leasing.

In response to the court order, the BLM published an amendment to the plan on November 27, 2024. The amended plan made no acres within the office's planning area available for future coal leasing in order to reduce greenhouse gas emissions. However, it allowed existing coal leases to be developed.

(Sec. 80303) This section prohibits the BLM from implementing, administering, or enforcing its 2024 Record of Decision and Approved Resource Management Plan Amendment for its Miles City Field Office in Montana.

(Sec. 80304) This section prohibits the BLM from implementing, administering, or enforcing its 2025 Record of Decision and Approved Resource Management Plan for North Dakota.

(Sec. 80305) This section prohibits the BLM from implementing, administering, or enforcing its 2024 Records of Decision and Approved Resource Management Plans for its Colorado River Valley Field Office and Grand Junction Field Office in Colorado.

(Sec. 80306) This section rescinds certain funding for the National Forest System, including funding for forest restoration, wildfire prevention, environmental reviews, the protection of protection of old-growth forests, and related activities.

(Sec. 80307) This section rescinds certain funding for Interior to carry out certain projects concerning the conservation, protection, and resiliency of lands and resources administered by the National Park Service (NPS) and the BLM.

(Sec. 80308) This section rescinds funding for certain conservation and ecosystem and habitat restoration projects on lands administered by the NPS and the BLM.

(Sec. 80309) This section rescinds certain funding provided to the NPS for hiring more employees.

(Sec. 80310) This section provides funding to Interior (1) to establish and maintain a statuary park named the National Garden of American Heroes; and (2) for events, celebrations, and activities related to the 250th anniversary of America’s founding.

(Sec. 80311) This section directs the Forest Service to annually enter into at least one 20-year or longer contract or agreement with private persons or other entities for timber harvesting in each of its regions for FY2025-FY2034. 

(Sec. 80312) This section directs the BLM to annually enter into at least one 20-year or longer contract or agreement with private persons or other entities to dispose of vegetative materials on certain federal lands for FY2025-FY2034. 

(Sec. 80313) This section requires the Forest Service to direct timber harvests on certain public lands in amounts that (1) equal or exceed the volume that is 25% higher than the volume harvested during FY2024; and (2) are in accordance with the applicable forest plan.

(Sec. 80314) This section requires the BLM to direct timber harvests on specified public lands in amounts that (1) equal or exceed the volume that is 25% higher than the volume harvested during FY2024; and (2) are in accordance with the applicable forest plan.

(Sec. 80315) This section authorizes Interior to sell or exchange specified public land in Nevada to the City of Fernley, Clark County, Washoe County, and Pershing County. 

(Sec. 80316) This section authorizes the sale of specified public land from the Department of Agriculture to Washoe County, Nevada.

(Sec. 80317) This section authorizes the sale of approximately 11,450 acres of specified public land in Utah from the BLM to Beaver County, the City of St. George, Washington County, and Washington County Water Conservancy District.

TITLE IX--COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM

This title makes changes to the Federal Employees' Retirement System (FERS). It also revises fees collected by the Merit Systems Protection Board (MSPB) and revises the Federal Employees Health Benefits (FEHB) Program.

(Sec. 90001) This section raises the required contribution rates for certain groups of individuals who entered FERS before January 1, 2014. (This applies to most federal employees, Members of Congress, and congressional staff.)

Under this section, FERS employee contributions for those individuals first hired before 2013 increases from 0.8% to 4.4% of pay over two calendar years, beginning in January 2026. This same increase applies to Members and congressional staff first elected or hired before 2013, plus an additional 0.5%. 

FERS employee contributions for those individuals first hired in 2013, including Members and congressional staff, increases from 3.1% to 4.4% of pay, also over two calendar years and beginning in January 2026.

(Sec. 90002) This section eliminates the FERS annuity supplement for new retirees not yet entitled to it. (Under current law, certain FERS employees who retire before age 62 with certain years of service receive a supplement to their annuity, which ends when the retiree turns 62 or becomes eligible to receive Social Security benefits.) Employees who retire under a mandatory authority and employees who retire before enactment of this section continue to receive the annuity supplement.

(Sec. 90003) This section changes the years of salary history used for calculating retirement benefits for FERS (and the now-closed Civil Service Retirement System) to be the average of the highest five consecutive years of basic pay (instead of the average of the highest three consecutive years), effective for new retirees beginning in January 2027. (This section does not apply to law enforcement officers and related personnel.)

(Sec. 90004) This section requires most new federal civilian employees to choose either to serve as at-will employees or to contribute an additional 5% of their salary to FERS.

Specifically, the section increases the contribution rate from 4.4% to 9.4% of pay for these employees (or from 4.9% to 9.9% for groups covered by enhanced retirement benefits) unless they elect to be employed on an at-will basis. Employees who elect to be employed on an at-will basis may be subject to adverse actions, including termination, without notice or the right to appeal the action. 

(Sec. 90005) This section directs the MSPB to establish and collect a filing fee for employees, former employees, or applicants who file claims or appeals with the MSPB. This fee must be in the amount required for federal district court filings (currently, $350). If the individual is successful in their claim, the fee must be returned to that individual. The section provides an exception for actions brought by the Office of Special Counsel to the MSBP and for claims alleging retaliation against whistleblowers.

(Sec. 90006) This section requires the Office of Personnel Management (OPM) to issue regulations and implement a process to verify (1) the veracity of any qualifying life event through which an enrollee in the FEHB Program seeks to add a family member for coverage under the program; and (2) that, when an enrollee seeks to add a family member to the FEHB program, the individual added is a qualifying family member.

The section also requires OPM, in coordination with employing offices, to conduct a comprehensive audit regarding family members enrolled in the FEHB program. In conducting this audit, OPM must review marriage certificates, birth certificates, and other appropriate documents to determine eligibility. 
OPM must develop a process to disenroll or remove an individual who is not eligible to participate in the FEHB program and notify the OPM inspector general of such disenrollment or removal. 

The section allows for some Employees Health Benefits Fund amounts to be available to OPM annually starting in FY2026 to develop, maintain, and conduct ongoing eligibility verification and oversight and oversight of the FEHB enrollment and eligibility systems. Other amounts shall be available for audit activities.

For more information on this title, see CRS Report IF12996, House Oversight and Government Reform (HOGR) Reconciliation Committee Print Pursuant to H.Con.Res. 14 .

TITLE X--COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

(Sec. 100001) This section provides the Coast Guard with specified funds for FY2025, to remain available through FY2029. This includes funds for

fixed and rotary wing aircraft,

long-range unmanned aircraft systems,

Offshore Patrol Cutters,

Fast Response Cutters,

Polar Security Cutters,

Arctic Security Cutters and domestic icebreakers,

depot maintenance, and

shoreside infrastructure.

(Sec. 100002) This section authorizes the Coast Guard to place members of the Selected Reserve on active duty under certain circumstances for no more than 365 consecutive days. That time would count toward the reservists’ entitlement for benefits under the Post-9/11 Veterans' Educational Assistance Act of 2008, which is commonly referred to as the Post-9/11 GI Bill.

(Sec. 100003) This section increases tonnage duties charged to vessels that enter U.S. ports. In general, the section would increase tonnage duty rates by 125% relative to rates under current law.

(Sec. 100004) This section requires the Federal Highway Administration (FHWA) to impose annual federal registration fees on owners of electric and hybrid vehicles and provides funding for the FHWA to award grant to states for implementing systems for collecting the fees. States must collect a fee of $250 for electric vehicles and $100 for hybrid vehicles. The amounts must be adjusted annually for inflation. The fees terminate on October 1, 2035. 

(Sec. 100005) This section requires the FHWA to transfer amounts collected from the new annual registration fees for electric and hybrid vehicles to the Highway Trust Fund.

(Sec. 100006) This section provides specified funds to the Federal Motor Carrier Safety Administration (FMCSA) to establish a public website to present data on motor carriers in order to indicate whether each motor carrier meets FMCSA operating requirements. The website must display specific statements to indicate whether the motor carrier does or does not meet FMCSA operating requirements. 

FMCSA must assess an annual fee of $100 on each person seeking access to the website.

A broker, freight forwarder, or household goods freight forwarder that uses the website to ensure that a motor carrier engaged by such broker, freight forwarder, or household goods freight forwarder meets FMCSA operating requirements shall be considered to have taken reasonable and prudent determinations in engaging such motor carrier.

(Sec. 100007) This section rescinds the unobligated balances for the following activities and programs that were funded as part of the Inflation Reduction Act of 2022 (Public Law 117–169):

Alternative Fuel and Low-Emission Aviation Technology Program, which includes the Fueling Aviation’s Sustainable Transition (FAST), of the Federal Aviation Administration (FAA);

Neighborhood Access and Equity Grant Program of the Federal Highway Administration;

funding provided to the Federal Buildings Fund for the conversion of General Services Administration (GSA) facilities to high-performance green buildings;

funding provided to the Federal Buildings Fund for acquiring and installing low-carbon materials and products in the construction of federal buildings;

emerging and sustainable technology program of the GSA;

Low Carbon Transportation Materials Grants Program of the Federal Highway Administration (FHWA); and

Environmental Review Implementation Funds of the FHWA.

(Sec. 100008) This section provides the Federal Aviation Administration with specified funds for FY2025, to remain available through FY2029. This includes additional funding for

air traffic control tower and terminal radar approach control facility replacement;

radar systems replacement;

telecommunications infrastructure and systems replacement;

runway safety projects and airport surface surveillance projects; and

air traffic controller recruitment, retention, training, and advanced training technologies.

The FAA must submit a report to Congress every 90 days on these expenditures.

(Sec. 100009) This section provides specified funds for the John F. Kennedy Center for the Performing Arts in Washington, D.C. This includes funding for (1) expenses for the capital repair and restoration of the building and site; (2) the operation, maintenance, and security of the center; and (3) administrative expenses.

TITLE XI--COMMITTEE ON WAYS AND MEANS, ‘‘THE ONE, BIG, BEAUTIFUL BILL’’

Subtitle A--Make American Families and Workers Thrive Again

Part 1--Permanently Preventing Tax Hikes on American Families and Workers

This part makes permanent multiple individual federal tax provisions enacted in 2017 by the Tax Cuts and Jobs Act.

Below are some examples of provisions in this part.

(Sec. 110001) This section makes permanent the individual tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

(Sec. 110002) This section makes permanent the increased standard deduction and provides an additional increase in the standard deduction in the amount of $1,000 (or $2,000 for joint filers and $1,500 for head of household) through 2028.

(Sec. 110003) This section permanently repeals the allowance of a deduction for personal exemptions.

(Sec. 110004) This section makes multiple changes to the child tax credit.

(Sec. 110005) This section extends and increases to 23% (from 20%) the tax deduction for qualified business income.

(Sec. 110006) This section increases the base estate tax, gift tax, and generation-skipping transfer tax exemption amount to $15 million (from $5 million), adjusted for inflation.

(Sec. 110007) This section makes permanent the increased alternative minimum tax exemption amount and phaseout threshold (applicable to individuals, trusts, and estates).

(Sec. 110010) This section eliminates the itemized tax deduction for miscellaneous expenses.

(Sec. 110011) This section limits itemized tax deductions to 2/37 of the lesser of (1) the total amount of itemized tax deductions (calculated without regard to such limitation), or (2) the amount of a taxpayer’s taxable income that exceeds the threshold for the 37% rate bracket.

For additional information see

CRS Report R47846, Reference Table: Expiring Provisions in the "Tax Cuts and Jobs Act" (TCJA, P.L. 115-97) 

CRS Report R48485, Economic Effects of the Tax Cuts and Jobs Act 

CRS Report R48286, Expiring Provisions of P.L. 115-97 (the Tax Cuts and Jobs Act): Economic Issues 

Part 2--Additional Tax Relief for American Families and Workers

This part establishes multiple new above-the-line tax deductions and makes other changes to individual-related federal tax provisions. (Above-the-line deductions are subtracted from gross income to calculate adjusted gross income.) 

Below are some examples of provisions in this part.

(Sec. 110101) This section establishes a new above-the-line tax deduction, through 2028, for qualified tip income for individuals whose earned income does not exceed a certain amount ($160,000 in 2025 and adjusted annually for inflation).

(Sec. 110102) This section establishes a new above-the-line tax deduction, through 2028, for qualified overtime income for individuals whose earned income does not exceed a certain amount ($160,000 in 2025 and adjusted annually for inflation).

(Sec. 110104) This section establishes a new above-the-line tax deduction of up to $10,000 for interest paid on indebtedness incurred in 2025 (through 2028) to buy a passenger vehicle (for personal use). The tax deduction phases out for taxpayers with modified adjusted gross income that exceeds $100,000 (or $200,000 for joint filers).

(Sec. 110110) This section expands the expenses eligible for tax-free withdrawals from qualified tuition programs (529 plans) to include certain additional expenses related to elementary, secondary, or homeschool education. 

(Sec. 110111) This section expands the expenses eligible for tax-free withdrawals from 529 plans to include tuition, fees, books, supplies, equipment, and other expenses related to the enrollment or attendance in a recognized postsecondary credentialing program.

(Sec. 110112) This section establishes a tax deduction of up to $150 (or $300 for joint filers) for charitable contributions by taxpayers who do not itemize their tax deductions.

(Sec. 110115) This section establishes a new type of tax-advantaged account, called Money Accounts for Growth and Advancement (MAGA) accounts, for individuals under eight years old. Up to $5,000 per year (adjusted for inflation) may be contributed to a MAGA account (not including certain rollovers) and distributions may be used for certain education-related expenses, small business expenses, and to buy a first-time home. (Some limitations apply).

(Sec. 110116) This section authorizes a one-time federal government deposit of $1,000 into a MAGA account for individuals born between 2025 and 2029 who meet certain other requirements.

For more information see

CRS In Focus IF12728, Taxation of Tip Income 

CRS Report R42807, Tax-Preferred College Savings Plans: An Introduction to 529 Plans 

Part 3--Investing in the Health of American Families and Workers

This part modifies certain health reimbursement arrangement (HRA) rules, increases health savings account (HSA) contribution limits, expands HSA eligibility requirements, and makes other changes to HSAs and high-deductible health plans (HDHP).

Below are some examples of provisions in this part.

(Sec. 110201) This section provides statutory authority for employers to contribute to an individual coverage HRA, subject to certain limitations and requirements and renames such arrangements as Custom Health Option and Individual Care Expense (or CHOICE) arrangements.

(Sec. 110202) This section allows employees enrolled in a CHOICE arrangement to use a cafeteria plan (e.g., flexible spending account) to purchase individual health insurance through a health insurance exchange.

(Sec. 110203) This section establishes a new tax credit (as part of the general business tax credit) for certain small businesses whose employees are enrolled in a CHOICE arrangement. The amount of the tax credit is $100 (adjusted annually for inflation) per month per employee for the first year of enrollment in a CHOICE arrangement and, then, half such amount per month per employee for the second year of enrollment. 

(Sec. 110204) This section expands eligibility to make tax-deductible HSA contributions to include individuals who are 65 years or older and are enrolled in Medicare Part A. 

(Sec. 110205) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a direct primary care service arrangement with a fixed period fee that does not exceed $150 a month (adjusted annually for inflation). Some limitations apply.

(Sec. 110206) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a bronze-level or catastrophic health insurance plan through a health insurance exchange.

(Sec. 110207) This section provides statutory authority for individuals to contribute to an HSA while also accessing some types of health care at an employer-sponsored clinic on the employer’s premises or at a health care facility operated by an employer for the benefit of employees.

(Sec. 110209) This section allows married individuals who are 55 years or older to make catch-up contributions to the same HSA. (Some limitations apply.)

(Sec. 110210) This section allows individuals to rollover amounts in a flexible spending arrangement (FSA) or HRA into an HSA. (Some limitations apply.)

(Sec. 110211) This section excludes from taxable income any distributions from an HSA used to pay qualified medical expenses incurred before the HSA is established if the HSA is established within 60 days from the first day of coverage under an HDHP.

(Sec. 110212) This section allows an individual to contribute to an HSA, even if covered by a spouse’s FSA. (Some limitations apply.)

(Sec. 110213) This section increases HSA contribution limits by $4,300 for individuals with self-only coverage and by $8,550 for individual with family coverage, adjusted annually for inflation. The increase in HSA contributions begins to phase out for individuals with an adjusted gross income exceeding $75,000 (or $150,000 for joint filers). (Some limitations apply.)

For more information see CRS Report R45277, Health Savings Accounts (HSAs) 

Subtitle B--Make Rural America and Main Street Grow Again

Part 1--Extension of Tax Cuts and Jobs Act Reforms for Rural America and Main Street

This part makes a number of changes to business-related federal tax provisions.

Below are some examples of provisions in this part. 

(Sec. 111001) This section extends bonus depreciation for qualified property acquired and placed into service after January 19, 2025, and before January 1, 2030 (and before January 1, 2031, for some types of property with longer production periods).

(Sec. 111002) This section temporarily suspends (through 2029) the amortization (over five years) of domestic research and experimental expenses and allows such expenses to be deducted or capitalized. (Some limitations apply.)

(Sec. 111003) This section expands the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses to include interest on floor plan financing of any camper or trailer designed to (1) provide temporary living quarters for recreational, camping, or seasonal use; and (2) be towed by, or affixed to, a motor vehicle.

(Sec. 111004) This section increases the foreign-derived intangible income tax deduction to 37.5% (from 21.875%) and increases the deduction for global intangible low-taxed income to 50% (from 37.5%). 

(Sec. 111005) This section reduces the base erosion rate to 10% (from 12.5%).

For additional information see

CRS Report R47846, Reference Table: Expiring Provisions in the "Tax Cuts and Jobs Act" (TCJA, P.L. 115-97) 

CRS Report R48485, Economic Effects of the Tax Cuts and Jobs Act 

CRS Report R48286, Expiring Provisions of P.L. 115-97 (the Tax Cuts and Jobs Act): Economic Issues 

CRS Report RL31852, The Section 179 and Section 168(k) Expensing Allowances: Current Law, Economic Effects, and Selected Policy Issues 

Part 2--Additional Tax Relief for Rural America and Main Street

This part makes a number of changes to business-related federal tax provisions.

Below are some examples of provisions in this part. 

(Sec. 111101) This section provides for an elective 100% depreciation allowance for nonresidential real property that meets certain requirements. (Some limitations apply.)

(Sec. 111102) This section extends the Opportunity Zone program to allow for the designation of additional qualified opportunity zones. It also modifies the definition of low-income community and other requirements for the program. 

(Sec. 111103) This section increases to $2.5 million (from $1.25 million in 2025 and adjusted annually for inflation) the maximum amount that may be deducted (expensed) for certain depreciable business assets. This section also increases to $4 million (from $3.13 million in 2025 and adjusted annually for inflation) the dollar amount at which the tax deduction begins to phase out. Both amounts continue to be annually adjusted for inflation. 

(Sec. 111106) This section repeals the 10% excise tax on tanning services. 

Subtitle C--Make America Win Again

Part 1--Working Families Over Elites

This part modifies, phases out, and terminates multiple energy-related federal tax credits. This part also modifies the federal tax deduction for state and local taxes and the excise tax imposed on the net investment income of certain organizations.

Below are some examples of provisions in this part. 

(Sec. 112001) This section terminates the previously-owned clean vehicle tax credit. 

(Sec. 112002) This section terminates the clean vehicle tax credit. 

(Sec. 112003) This section terminates the qualified commercial clean vehicle tax credit. 

(Sec. 112004) This section terminates the alternative fuel refueling property tax credit. 

(Sec. 112005) This section terminates the energy efficient home improvement tax credit. 

(Sec. 112006) This section terminates the residential clean energy tax credit.

(Sec. 112007) This section terminates the new energy efficient home tax credit.

(Sec. 112008) This section modifies and phases out the clean electricity production tax credit.

(Sec. 112009) This section modifies and phases out the clean electricity investment tax credit.

(Sec. 112012) This section modifies and phases out the zero-emission nuclear power production tax credit.

(Sec. 112013) This section terminates the clean hydrogen production tax credit.

(Sec. 112014) This section modifies and phases out the advance manufacturing production tax credit.

(Sec. 112015) This section modifies and phases out the investment tax credit for qualified energy property (e.g., solar, fuel cell, geothermal, biogas, and microgrid controller property).

(Sec. 112018) This section increases the limitation on the federal tax deduction for state and local taxes (commonly known as the SALT deduction cap) to $30,000 (or $15,000 for married individuals filing separately). Under this section, the SALT deduction cap is reduced for taxpayers with an adjusted gross income over $400,000 (or $200,000 for married individuals filing separately, but not below $10,000 (or $5,000 for married individuals filing separately).

(Sec. 112021) This section replaces the excise tax of 1.4% imposed on the net investment income of certain private university and college endowments with a new rate structure of 1.4%, 7%, 14%, or 21%, depending on several variables including the value of the endowment and the number of full-time students who meet certain other requirements.

For more information see

CRS Report R46865, Energy Tax Provisions: Overview and Budgetary Cost 

CRS Report R46246, The SALT Cap: Overview and Analysis 

CRS Report R44293, College and University Endowments: Overview and Tax Policy Options 

Part 2--Removing Taxpayer Benefits for Illegal Immigrants

This part modifies eligibility requirements for the premium tax credit and certain other tax credits. This part also imposes an excise tax on certain remittance transfers.

Below are some examples of provisions in this part. 

(Sec. 112101) This section allows lawfully-present aliens to claim the premium tax credit to purchase health insurance on an exchange only if they meet certain requirements (subject to exceptions provided in Sec. 112102).

(Sec. 112102) This section provides that a lawfully-present alien is eligible for the premium tax credit only if such individual is not (and is reasonably expected not to be for the entire period of enrollment in an exchange health care plan) granted (1) an application for asylum (or with a pending application for asylum), (2) parole, (3) temporary protected status, (4) deferred action or deferred enforced departure, or (5) withholding of removal.

(Sec. 112103) This section repeals the rule that allows certain lawfully-present aliens who have a household income of less than 100% of the federal poverty level and are ineligible for Medicaid (based on the individual’s alien status) to claim the premium tax credit. 

(Sec. 112105) This section establishes a 5% excise tax on transfers of payments from one country to another (also known as remittance transfers). (Some exceptions apply).

(Sec. 112106) This section requires a Social Security number to be eligible for the American Opportunity and Lifetime Learning tax credits.

For more information see

CRS Report R44425, Health Insurance Premium Tax Credit and Cost-Sharing Reductions 

CRS Report R48290, Enhanced Premium Tax Credit Expiration: Frequently Asked Questions 

Part 3--Prevent Fraud, Waste, and Abuse

This part modifies multiple federal tax administrative and penalty provisions. 

Below are some examples of provisions in this part. 

(Sec. 112205) This section increases the penalty for aiding and abetting the understatement of tax liability with respect to the employee retention tax credit (ERTC) by a COVID-ERTC promoter and makes certain other changes related to the ERTC.

(Sec. 112206) This section establishes a new certification program for claiming the earned income tax credit.

(Sec. 112207) This section directs the Internal Revenue Service (IRS) to terminate the Direct File program.

(Sec. 112209) This section extends the IRS’s authority to terminate the tax-exempt status of terrorist organizations to terrorist-supporting organizations.

(Sec. 112210) This section increases the penalties for the unauthorized disclosure of taxpayer information.

For more information see CRS Report R43805, The Earned Income Tax Credit (EITC): How It Works and Who Receives It 

Subtitle D--Increase in Debt Limit

(Sec. 113001) This section increases the statutory debt limit by $4 trillion. (The debt limit is the amount of money that the Department of the Treasury may borrow to fund federal operations.)

 

action_date: 2025-05-20
text: 

One Big Beautiful Bill Act

This bill reduces taxes, reduces or increases spending for various federal programs, increases the statutory debt limit, and otherwise addresses agencies and programs throughout the federal government. 

It is known as a reconciliation bill and includes legislation submitted by 11 House committees pursuant to provisions in the FY2025 congressional budget resolution (H Con. Res. 14) that directed the committees to submit legislation to the House Budget Committee that will increase or decrease the deficit and increase the statutory debt limit by specified amounts. (Reconciliation bills are considered by Congress using expedited legislative procedures that prevent a filibuster and restrict amendments in the Senate.)

TITLE I--COMMITTEE ON AGRICULTURE 

This title addresses a wide range of Department of Agriculture (USDA) programs, including by changing the Supplemental Nutrition Assistance Program (SNAP) and extending programs authorized by the Agriculture Improvement Act of 2018 (commonly known as the 2018 farm bill).

Subtitle A--Nutrition

(Sec. 10001) This section prohibits USDA from increasing the cost of the Thrifty Food Plan (TFP) based on a reevaluation or update of the contents of the TFP (i.e., the market basket of goods). Further, any annual adjustment to the cost of the plan must be based on the Consumer Price Index for All Urban Consumers.

As background, USDA created the TFP (the cost of purchasing a nutritionally adequate low-cost diet), which is used to determine maximum monthly benefits under the Supplemental Nutrition Assistance Program (SNAP). USDA calculates the cost of the TFP each year to account for food price inflation. Maximum allotments are set at the monthly cost of the TFP for a four-person family, adjusted for family size. Under a provision of the 2018 farm bill, USDA must reevaluate the market basket of goods every five years based on current food prices, food composition data, consumption patterns, and dietary guidance. 

(Sec. 10002) This section expands the applicability of work requirements for SNAP recipients who are able-bodied adults without dependents (ABAWDs). As background, these SNAP recipients have work-related requirements in addition to the general SNAP work registration and employment and training requirements.

Specifically, the section amends the exemptions to this requirement.

First, the section applies the work requirements for ABAWDs to adults who are not over 65 years old, whereas these requirements currently apply to adults who are not over 55 years old.

Second, the ABAWD exemption for a parent or household member with responsibility for a dependent child is restricted to a dependent child under the age of seven. Currently, the child must be under the age of 18. 

This section includes an exception for a person who is (1) responsible for a dependent child who is seven years of age or older, and (2) married to and resides with an individual who complies with the SNAP work requirements.

In addition, the section specifies that current ABAWD exemptions set to sunset on October 1, 2030 will sunset. These exemptions from the ABAWD work requirements are for homeless individuals, veterans, and certain foster care individuals (those who are 24 years old or younger and were in foster care on the date of attaining 18 years of age or a higher age).

(Sec. 10003) This section modifies the ABAWD waiver program's allowable state exemptions. Under current law, an ABAWD waiver program allows state exemptions based on an area having an unemployment rate of over 10% or an insufficient number of jobs. The section amends the exemption to require the unemployment rate to be based on the rate for the county, instead of the area. Further, the section repeals the provision that allows a state exemption if that area does not have a sufficient number of jobs.

Under current law, a state agency may exempt up to 8% of SNAP recipients from the ABAWD work requirements for each fiscal year. This section reduces the percentage of exemptions a state agency may provide each year so that the average monthly number of exemptions does not exceed 1% of covered individuals (i.e., SNAP recipients and certain individuals who were denied SNAP benefits due to the work requirements). 

(Sec. 10004) This section limits the availability of the Standard Utility Allowance (SUA) for determining SNAP income eligibility. Specifically, only households that include an elderly or disabled member may be considered automatically eligible for the SUA based on participation in the Low Income Home Energy Assistance Program (LIHEAP) or a similar energy assistance program. 

As background, when determining a household’s eligibility for SNAP, states consider the total shelter costs for a household, including the cost of utilities. States can use SUAs, which are standard amounts that represent low-income household utility costs in the state or local area. Currently, all LIHEAP participants who receive a minimum benefit are eligible for the SUA for determining SNAP income eligibility.

(Sec. 10005) This section prohibits household internet costs (e.g., monthly subscriber fees) from being used in computing the excess shelter expense deduction for the purposes of determining the size of household SNAP benefits.

(Sec. 10006) This section establishes state-matching fund requirements for the cost of SNAP program allotments. Currently, the state match is 0%. Beginning in FY2028, any state that has a payment error rate that is less than 6% must contribute a 5% match for the cost of SNAP program allotments. 

A state with a payment error rate that is

at least 6% but less than 8% must contribute 15%;

at least 8% but less than 10% must contribute 20%; and

10% or greater must contribute 25%.

(Sec. 10007) This section reduces the amount that USDA may pay a state agency for administrative costs for the operation of SNAP to 25% of all administrative costs, from the current 50%, thereby increasing the state share of administrative costs from 50% to 75%.

(Sec. 10008) This section modifies the general work requirements of the SNAP program to cover individuals who are over the age of 17 and under the age of 65. Currently, the general work requirements apply to individuals who are over the age of 15 and under the age of 60. It also exempts parents or members of a household with responsibility for the care of a child who is under the age of seven (under the age of six under current law) from the requirements. 

(Sec. 10009) This section requires state agencies (under the SNAP National Accuracy Clearinghouse) to use each indication of a multiple issuance of SNAP benefits to prevent multiple issuances of other federal and state assistance program benefits.

(Sec. 10010) This section reduces the tolerance level to $0 for a state to exclude small SNAP payment errors in the calculation of payment error rates. 

As background, the SNAP quality control system measures how accurately SNAP state agencies determine a household’s eligibility and benefit amount and determines overpayments of benefits and underpayments. Under current law, the Food and Nutrition Service must set a tolerance level for excluding small payment errors in the calculation of payment error rates (e.g., $56 or less in FY2024). This section requires that the calculation of payment error rates include all SNAP payment errors.

(Sec. 10011) This section eliminates the SNAP Nutrition Education and Obesity Prevention Grant Program (SNAP-ED).

(Sec. 10012) This section limits SNAP benefits to individuals who reside in the United States and are (1) a citizen, or (2) an alien lawfully admitted for permanent residence as an immigrant, with exceptions. Currently, SNAP eligibility extends to additional individuals who are classified as an alien under federal law, including an alien who has qualified for conditional entry under the asylum and refugee laws.

This section also extends funding for the Emergency Food Assistance Program (TEFAP) through FY2031. TEFAP provides food commodities (and cash support for storage and distribution costs) through states to local emergency feeding organizations (e.g., food banks).

Subtitle B--Investment in Rural America

(Sec. 10101) This section amends and extends commodity support programs.

For example, the section extends the Price Loss Coverage Program, the Agricultural Risk Coverage Program, and Dairy Margin Coverage through crop year 2031. It also modifies various requirements for the programs.

The section also extends the suspension of permanent price authority through crop year 2031 for commodities other than dairy and through December 31, 2031, for dairy.

Further, the section addresses programs and issues such as marketing loans, disaster assistance, the sugar program, federal crop insurance, the Livestock Indemnity Program, and the establishment of a Poultry Insurance Pilot Program.

For example, this section provides for a number of changes to Dairy Margin Coverage (DMC), which include

changing the definition of production history to remove the consideration of production at the time the dairy operation first registered to participate in the DMC program;

setting production history for the DMC program as the highest annual milk marketings for participating dairies during calendar year 2021, 2022, or 2023;

raising the coverage limit to the first six million pounds for both Tier I and Tier II premiums, from the first five million pounds; and

allowing producers to receive a 25% premium discount for a one-time premium election covering calendar years 2026-2031.

(Sec. 10102) This section reauthorizes, and extends funding for, the following programs through FY2031:

the Grassroots Source Water Protection Program,

the Voluntary Public Access and Habitat Incentive Program,

the Feral Swine Eradication and Control Pilot Program,

the Agriculture Conservation Easement Program (ACEP),

the Environmental Quality Incentives Program (EQIP),

the Conservation Stewardship Program (CSP),

the Rural Conservation Partnership Program (RCPP), and

the Watershed and Flood Prevention Operations Program.

This section also rescinds the unobligated funds that were provided for ACEP, EQIP, CSP, and RCPP conservation programs as part of the Inflation Reduction Act of 2022. 

(Sec. 10103) This section extends and provides increased funding for agricultural trade promotion and facilitation through FY2031. Specified funds are provided for the Market Access Program, Foreign Market Development Program, E (Kika) de la Garza Emerging Marketing Program, Technical Assistance for Specialty Crops program, and the Priority Trade Fund.

(Sec. 10104) This section reauthorizes and provides funding for a number of USDA research initiatives. 

For example, this section provides specified funds to the 1890 National Scholars Program for FY2026 for student scholarships. This National Institute of Food and Agriculture program provides grants to 1890 Institutions (i.e., historically Black colleges and universities that belong to the U.S. land-grant university system) for students who intend to pursue a career in the food and agricultural sciences.

This section provides the Specialty Crop Research Initiative with $175 million in mandatory funding for FY2026. Currently, the program is funded at $80 million for each fiscal year.

This section also provides funding for competitive grants to assist in the construction, alteration, acquisition, modernization, renovation, or remodeling of Agricultural Research Facilities.

(Sec. 10105) This section extends and modifies the Secure Rural Schools (SRS) program. 

Under the existing SRS program, states and counties containing federal land may receive payments from the U.S. Forest Service or the Department of the Interior respectively. This section extends the authority of the Forest Service and Interior to (1) calculate and provide payments to states and counties under the SRS program through FY2026, and (2) initiate projects using funds provided by the program through FY2028. It also extends the deadline to obligate those funds until the end of FY2029.

This section rescinds specified unobligated funds that were provided by the Inflation Reduction Act of 2022 for (1) competitive grants to nonfederal forest landowners, and (2) state and private forestry conservation programs. 

(Sec. 10106) This section reauthorizes, and extends funding for, the biobased markets program (i.e., BioPreferred Program) through FY2031 to promote biobased products through (1) mandatory purchasing requirements for federal agencies and their contractors, and (2) a voluntary labeling initiative for biobased products.

This section reauthorizes, and extends funding for, the bioenergy program for advanced biofuels (i.e., Advanced Biofuel Payment Program) through FY2031. The program provides payments to fuel producers to support and expand production of advanced biofuels (i.e., not derived from corn starch).

(Sec. 10107) This section provides additional funding for the Plant Pest and Disease Management Disaster Prevention Program for FY2026 and each fiscal year thereafter.

This section provides additional funding for the Specialty Crop Block Grant Program for FY2026 and each fiscal year thereafter. Under the block grant program, USDA provides grants to the state departments of agriculture to enhance the competitiveness of specialty crops (i.e., fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops, including floriculture).

The section also reauthorizes, and extends funding for, organic production and market data initiatives through FY2031. 

This section reauthorizes, and extends funding through FY2026, for USDA to carry out the modernization and improvement of international trade technology systems and data collection on imports of organically produced agricultural products accepted into the United States.

The section also reauthorizes the Organic Certification Cost Share Program, which provides cost share assistance to producers and handlers of agricultural products who are obtaining or renewing their certification under the National Organic Program.

This section reauthorizes, and extends funding through FY2026 for the multiple crop and pesticide use survey of farmers. The USDA Office of Pest Management Policy conducts this survey to collect data for risk assessment modeling and mitigation for an active ingredient.

(Sec. 10108) This section increases funding for the National Animal Health Laboratory Network. Specific increases in funding are also provided for the National Animal Disease Preparedness and Response Program and the National Animal Vaccine and Veterinary Countermeasures Bank.

This section extends and increases funding for the Sheep Production & Marketing Grant Program through FY2026. This program seeks to strengthen and enhance the production and marketing of sheep and sheep products in the United States.

This section also extends the

Pima Agriculture Cotton Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on cotton fabric that are higher than tariffs on certain apparel articles made of cotton fabric;

Agriculture Wool Apparel Manufacturers Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on wool fabric that are higher than tariffs on certain apparel articles made of wool fabric;

Wool Research and Promotion Program through FY2031, which provides grants to assist U.S. wool producers with improving the quality of wool and with developing and promoting the wool market; and

Emergency Citrus Disease Research and Development Trust Fund through FY2031, which funds a program that aims to bring together scientists to find scientifically sound and financially sustainable solutions to Huanglongbing (i.e., citrus greening, a bacterial disease spread by an insect that feeds on citrus).

TITLE II--COMMITTEE ON ARMED SERVICES

(Sec. 20001) This section provides additional funding for FY2025 to the Department of Defense (DOD) for

the Marine Corps Barracks 2030 initiative,

the Defense Health Program,

supplemental payments of Basic Allowance for Housing to military personnel, and

tuition assistance and child care assistance for members of the Armed Forces.

The section also provides statutory authority to extend from 14 to 21 days eligibility for Temporary Lodging Expense (TLE) for certain servicemembers undergoing a permanent change of station.

Additionally, the section temporarily increases authorized investment amounts and provides additional authorization for the acquisition or construction of certain military housing through private contracts.

(Sec. 20002) This section provides additional funding for FY2025 for the shipbuilding industrial base and various naval shipbuilding activities. 

(Sec. 20003) This section provides additional funding for FY2025 for the development of (1) space-based missile intercept capabilities, (2) military space-based sensors, and (3) the continued development of ground-based missile defense systems and related infrastructure.

(Sec. 20004) This section provides additional funding for FY2025 for various military weapon systems, including hypersonic, air-to-air, cruise, and anti-ship missiles.

(Sec. 20005) This section provides additional funding for FY2025 to expand the small, unmanned aerial system (UAS) industrial base, to advance the use of artificial intelligence in these and other systems, and to support the integration of commercial developments in military technology.

The section also provides additional funding to finance loans and loan guarantees by the DOD Office of Strategic Capital.

(Sec. 20006) This section provides additional funding for FY2025 to replace current business systems, deploy automation, and deploy artificial intelligence to accelerate audits of DOD financial statements.

(Sec. 20007) This section provides additional funding for FY2025 to (1) modernize the capabilities of fighter, transport, and other military aircraft; (2) prevent the retirement of certain fighter aircraft (e.g., F-22); and (3) produce next-generation manned and unmanned aircraft.

(Sec. 20008) This section provides additional funding for FY2025 for nuclear defense resources and nuclear forces development and production.

(Sec. 20009) This section provides additional funding for FY2025 for (1) various military exercises and infrastructure in the Indo-Pacific region, (2) classified military space-superiority programs, and (3) military support to the government of Taiwan.

(Sec. 20010) This section provides additional funding for FY2025 to enhance and modernize (1) military depots and shipyards, and (2) Special Operations Command (SOCOM) equipment. 

(Sec. 20011) This section provides additional funding for FY2025 to support border operations, including deployment of military personnel.

(Sec. 20012) This section provides additional funding for FY2025 to enhance military intelligence programs.

(Sec. 20013) This section provides additional funding for FY2025 for the DOD Office of Inspector General to monitor the activities for which funding is provided under this title.

(Sec. 20014) This section authorizes each military department to use funding under this title for military construction, land acquisition, and military family housing. Each military department must submit a detailed spending plan to Congress.

(Sec. 20015) This section requires DOD to submit a spending plan and subsequent expenditure reports to Congress for funding provided under this title.

(Sec. 20016) This section prohibits any agreements that would require the payment of any funds provided under this title after September 30, 2034.

TITLE III--COMMITTEE ON EDUCATION AND WORKFORCE

This title makes various changes to higher education, particularly to the federal student loan system.

Subtitle A--Student Eligibility

This subtitle revises eligibility for federal student aid and the amount of aid students may receive.

(Sec. 30001) This section revises the citizenship categories that qualify a student for federal student aid. The section specifies eligibility for certain nationals of Cuba, Ukraine, or Afghanistan, and individuals who lawfully reside in the United States in accordance with a Compact of Free Association (i.e., the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau).

(Sec. 30002) This section changes the way student eligibility for need-based federal aid is calculated by basing the calculation on the median cost of attendance by program of study from all institutions of higher education (IHEs) that offer such program of study rather than the cost of attendance of a student’s specific program as determined by their IHE.

The section also restores an exemption for certain family farms and small businesses on the Free Application for Federal Student Aid (FAFSA) form. This section applies to the net worth of (1) a family farm on which the family resides, or (2) a small business with not more than 100 full-time or full-time equivalent employees that is owned and controlled by the family.

Subtitle B--Loan Limits

This subtitle makes various changes to federal student loans. 

(Sec. 30011) This section terminates the ability of undergraduate students to receive subsidized loans and terminates the ability of graduate or professional students to receive Direct PLUS Loans beginning on July 1, 2026. It provides an exception (of up to three academic years) for a student who is already enrolled in a program of study and received a loan for the program. 

The section also places certain restrictions on Parent PLUS Loans. In particular, parents may only borrow a Parent Plus Loan if the dependent student has already taken out their maximum annual unsubsidized loan amount. 

The section also establishes new annual and aggregate loan limits for borrowers. For example, the section sets an overall aggregate lifetime borrowing limit of $200,000 for any single borrower across all federal loan types.

The section allows IHEs to set lower loan limits.

Subtitle C--Loan Repayment

This subtitle revises loan repayment options for federal student loans.

(Sec. 30021) This section terminates all current student loan repayment plans for loans disbursed on or after July 1, 2026.

The Department of Education (ED) may only offer borrowers two options for repayment of federal student loans: a standard repayment plan (with the length of the repayment term determined by the total amount borrowed) and an income-based repayment plan (to be known as the Repayment Assistance Plan).

(Sec. 30022) This section eliminates economic hardship and unemployment deferments beginning on July 1, 2025. It also reduces the total period a borrower may be in forbearance.

A borrower who is serving in a medical or dental internship or residency program may be eligible for a forbearance in which no interest accrues for the first four 12-month intervals. However, interest begins to accrue for any subsequent 12-month interval. 

(Sec. 30023) This section allows borrowers to rehabilitate a defaulted loan twice (currently, only once). However, beginning on July 1, 2025, the borrower must pay a minimum payment amount of $10.

(Sec. 30024) This section allows payments under the new Repayment Assistance Plan to count as qualifying payments for purposes of the Public Service Loan Forgiveness (PSLF) program.

The section also specifies that a public service job, for purposes of the PSLF program, does not include time served in a medical or dental internship or residency program by an individual who, as of June 30, 2025, has not borrowed a Federal Direct PLUS Loan or a Federal Direct Unsubsidized Stafford Loan. 

(Sec. 30025) This section provides FY2025 and FY2026 funding to ED for administrative costs.

Subtitle D--Pell Grants

This subtitle makes changes to Pell Grants.

(Sec. 30031) This section requires foreign income that is exempt from taxation or foreign income for which an individual receives a foreign tax credit to be included in the adjusted gross income calculation for purposes of calculating eligibility for Pell Grants.

Students with a student aid index that equals or exceeds twice the amount of the total maximum Pell Grant are ineligible for Pell Grants, regardless of their adjusted gross income. 

The section also increases the number of credits needed to qualify for full-time enrollment in order to receive Pell Grants.

The section prohibits a student who is enrolled less than half time from receiving a Pell Grant.

The section’s changes take effect beginning on July 1, 2025.

(Sec. 30032) This section requires ED to award Workforce Pell Grants to students enrolled in eligible workforce programs. Eligible programs are those that provide at least 150 clock hours (but less than 600 clock hours) of instruction during a minimum of 8 weeks (but less than 15 weeks).

The section’s changes take effect beginning on July 1, 2026.

(Sec. 30033) This section increases funding for Pell Grants for FY2026-FY2028.

Subtitle E--Accountability

This subtitle creates a new risk-sharing framework for IHEs.

(Sec. 30041) This section requires IHEs participating in federal student loan programs to make annual risk-sharing payments based on the nonrepayment balance of student loan cohorts. 

The section also outlines penalties for late or missing payments. For example, the section prohibits an IHE from offering Direct Loans to students if the IHE has not made a payment within 12 months of receiving a notification from ED. The section also prohibits an IHE from offering Direct Loans or awarding Pell Grants if the IHE has not made a risk-sharing payment in 18 months. If an IHE fails to make a payment within two years, the IHE may not participate in federal student loan programs for a minimum of 10 years.

The section’s changes take effect beginning with award year 2028-2029.

(Sec. 30042) This section establishes the Promoting Real Opportunities to Maximize Investments and Savings in Education (PROMISE) grant program. To receive a PROMISE grant, an IHE must meet maximum total price guarantee requirements (as outlined in the section). These grants may be used to carry out activities related to postsecondary affordability, access, and student success.

Subtitle F--Regulatory Relief

This subtitle repeals several rules and regulations related to higher education.

(Sec. 30051) This section repeals the 90/10 rule, which requires proprietary (i.e., for profit) IHEs participating in federal student aid programs to derive at least 10% of their tuition and fee revenue from nonfederal funds.

The section also removes references to gainful employment within the Higher Education Act of 1965.

The section repeals ED regulations pertaining to closed school discharges of qualifying federal student loans and borrower defense to repayment.

Regulations repealed by this section are replaced with those regulations that were in effect on June 30, 2023.

The section also prohibits ED from implementing any rule, regulation, policy, or executive action regarding these regulations unless explicitly authorized by an act of Congress.

Subtitle G--Limitation on Authority

This subtitle limits the authority of ED to propose or issue regulations and executive actions related to federal student aid programs.

(Sec. 30061) This section prohibits ED from issuing a proposed rule, final regulation, or executive action if ED determines that the rule, regulation, or action (1) is economically significant, and (2) would result in an increase in a subsidy cost. Economically significant refers to a regulation or executive action that is likely to (1) have an annual effect on the economy of $100 million or more; or (2) adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or state, local, or tribal governments or communities.

TITLE IV--ENERGY AND COMMERCE

Subtitle A--Energy

(Sec. 41001) This section rescinds the unobligated funds that were provided by the Inflation Reduction Act for various energy programs, such as State-Based Home Energy Efficiency Contractor Training Grants, the Advanced Technology Vehicles Manufacturing Loan Program, and the Tribal Energy Loan Guarantee Program. 

(Sec. 41002) This section directs the Federal Energy Regulatory Commission (FERC) to issue certificates of crossing for certain energy infrastructure at international boundaries of the United States and establishes a fee for the certificate. Under this section, no person may construct, connect, operate, or maintain a cross-border segment (i.e., located at an international boundary between the United States and Mexico or Canada) for the import or export of certain energy-related products, or for the transmission of electricity, without first obtaining the certificate of crossing from FERC. The section includes an exception for cross-border segments that were previously authorized by a Presidential permit. 

(Sec. 41003) This section establishes fees for certain natural gas exports and imports.

(Sec. 41004) This section provides funding to the Department of Energy (DOE) for administrative expenses for carrying out loan guarantees related to liquefied natural gas pipeline projects from Alaska. 

(Sec. 41005) This section allows for expedited permitting for certain natural gas projects. 

(Sec. 41006) This section allows certain carbon dioxide, hydrogen, and petroleum pipeline projects to be permitted under the same procedures as certain natural gas projects. 

(Sec. 41007) This section establishes and provides funding for a De-risking Compensation Program that provides compensation for unrecoverable losses associated with energy projects that, for example, have had federal approval revoked.

(Sec. 41008) This section provides funding for the Strategic Petroleum Reserve (SPR). It also repeals a provision that requires DOE to draw down and sell a specified quantity of crude oil from the SPR during FY2026-FY2027. 

(Sec. 41009) This section rescinds unobligated funds that were provided to DOE for the Office of the Inspector General, Office of Clean Energy Demonstrations, State and Community Energy Programs, Office of Indian Energy Policy and Programs, Office of Energy Efficiency and Renewable Energy, and other offices and programs.

Subtitle B--Environment

Part 1--Repeals and Rescissions

This part repeals certain programs established under the Inflation Reduction Act of 2022 and rescinds certain funds provided under the act.

(Sec. 42101) This section repeals a program under which the Environmental Protection Agency (EPA) provides (1) grants and rebates to replace certain medium-duty vehicles (e.g., school buses) and heavy-duty vehicles (e.g., garbage trucks) with zero-emission vehicles, and (2) awards to replace such vehicles in communities located in areas designated as nonattainment areas under the Clean Air Act (e.g., areas that do not meet national air quality standards). 

(Sec. 42102) This section repeals a program under which the EPA provides incentives to reduce air pollution at certain ports. Under the program, the EPA awards rebates and grants to port authorities and other eligible entities to (1) purchase or install equipment and technology to reduce pollution at ports, (2) conduct any relevant planning or permitting in connection with those purchases, and (3) develop climate action plans. The program also provides additional funding for rebates and grants for carrying out such activities in ports located in areas designated as nonattainment areas under the Clean Air Act. 

(Sec. 42103) This section repeals the Greenhouse Gas Reduction Fund, which provides financial and technical assistance to states and other eligible recipients to help enable low-income and disadvantaged communities carry out activities to reduce greenhouse gas emissions.

(Sec. 42104) This section repeals an EPA program that gives grants, rebates, and loans under the Energy Policy Act of 2005 to identify and reduce diesel emissions resulting from goods movement (e.g., distribution of raw materials and consumer products) facilities as well as vehicles servicing those facilities in low-income and disadvantaged communities. 

(Sec. 42105) This section repeals funding for a variety of programs that provide incentives to monitor and reduce air pollution and greenhouse gases, including funding for grants and other activities to

deploy, integrate, support, and maintain stations, technology, and other methods to monitor air toxins;

expand the national ambient air quality monitoring network with new multi-pollutant monitoring stations;

replace, repair, operate, and maintain existing monitors;

deploy, integrate, and operate air quality sensors in low-income and disadvantaged communities;

address emissions from wood heaters;

monitor emissions of methane;

conduct research and development related to the prevention and control of air pollution; and

encourage states to adopt and implement greenhouse gas and zero-emission standards for mobile sources.

(Sec. 42106) This section rescinds specified funds for grants and other activities to monitor and reduce greenhouse gas emissions and other air pollutants at schools in low-income and disadvantaged communities. Further, it rescinds funding for technical assistance to schools in low-income and disadvantaged communities to (1) address environmental issues; (2) develop school environmental quality plans that include standards for school building, design, construction, and renovation; and (3) identify and mitigate ongoing air pollution hazards. 

(Sec. 42107) This section rescinds funding for a low emissions electricity program that provides education, technical assistance, and outreach to reduce greenhouse gas emissions that result from domestic electricity generation and use. 

(Sec. 42108) This section rescinds funding provided under the EPA’s Renewable Fuel Standard Program for

the development and establishment of tests and protocols regarding the environmental and public health effects of a fuel or fuel additive;

the collection and analysis of data to update applicable regulations, guidance, and procedures for determining the amount of greenhouse gas emissions from a fuel over the fuel's life cycle (e.g., production, processing, transport);

the review, analysis, and evaluation of the impacts of all transportation fuels on the public as well as on low-income and disadvantaged communities; and

supporting investments in advanced biofuels.

(Sec. 42109) This section rescinds funding to implement the American Innovation and Manufacturing Act of 2020, which directs the EPA to address hydrofluorocarbons (HFC). HFCs are greenhouse gases that are used in applications such as air conditioning, refrigeration, fire suppression, and aerosols. 

(Sec. 42110) This section rescinds funding to update the EPA's Integrated Compliance Information System and any associated systems, necessary information technology infrastructure, or public access software tools to ensure access to compliance data and related information. Further, it also rescinds funding for grants to states, Indian tribes, and air pollution control agencies to update their systems to ensure communication with EPA’s system. Finally, it rescinds funding to the EPA for updating inspection software or acquiring such software or devices on which to run the software. 

(Sec. 42111) This section rescinds funding for the EPA to support (1) enhanced standardization and transparency of corporate climate action commitments and plans to reduce greenhouse gas emissions; (2) enhanced transparency regarding progress toward meeting such commitments and implementing such plans; and (3) progress toward meeting such commitments and implementing such plans.

(Sec. 42112) This section repeals the EPA’s program that supports the development, enhanced standardization and transparency, and reporting criteria for environmental product declarations for construction materials and products. The declarations must include measurements of the greenhouse gases associated with all the relevant stages of production, use, and disposal of the construction materials and products.

(Sec. 42113) This section repeals the methane emissions reduction program under which the EPA provides financial incentives to encourage the reporting of greenhouse gases, the monitoring of methane, and the reduction of methane emissions from petroleum and natural gas systems. 

(Sec. 42114) This section repeals the EPA’s program that awards grants to states, air pollution control agencies, municipalities, and Indian tribes for developing and implementing plans to reduce greenhouse gas air pollution. 

(Sec. 42115) This section rescinds certain funding relating to the EPA providing efficient, accurate, and timely reviews, including

developing efficient, accurate, and timely reviews for permitting and approval processes through the hiring and training of personnel;

developing programmatic documents;

procuring technical or scientific services for reviews;

developing environmental data or information systems;

engaging stakeholders;

purchasing new equipment for environmental analysis; and

developing geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement.

(Sec. 42116) This section repeals a program under which the EPA identifies and labels construction materials and products that have substantially lower levels of greenhouse gas emissions associated with all the relevant stages of production, use, and disposal of the materials and products. 

(Sec. 42117) This section repeals funding to the EPA for environmental and climate justice block grants that benefit disadvantaged communities. 

Part 2--Repeal of EPA Rule Relating to Multi-Pollutant Emissions Standards

This part nullifies the final rule issued by the EPA titled Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles and published on April 18, 2024. The rule established and modified requirements for certain light-duty or medium-duty vehicles (e.g., cars, trucks, and sports utility vehicles that are under a certain weight), including requirements related to (1) emission standards, such as a greenhouse gas emission standard; (2) the durability of batteries for certain electric and hybrid vehicles; and (3) measuring fuel economy.

Part 3--Repeal of NHTSA Rule Relating to CAFE Standards

This part nullifies the final rule issued by the National Highway Traffic Safety Administration titled Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027 and Beyond and Fuel Efficiency Standards for Heavy-Duty Pickup Trucks and Vans for Model Years 2030 and Beyond and published on June 24, 2024.

Subtitle C--Communications 

Part 1--Spectrum Auctions

(Sec. 43101) This section renews the authority of the Federal Communications Commission (FCC) to auction licenses for the use of radio frequency spectrum and requires certain frequencies to be reallocated and auctioned on an exclusive, licensed basis for fixed and mobile broadband.

Specifically, this section reauthorizes the FCC’s use of competitive bidding (i.e., auctions) to grant licenses for the use of specific frequencies through September 30, 2034. (The FCC’s auction authority must be renewed by Congress periodically. It expired on March 9, 2023, and has not been renewed.)

Further, within two years of this title’s enactment, the National Telecommunications and Information Administration (NTIA) must identify at least 600 megahertz of spectrum at frequencies between 1.3 and 10 gigahertz for reallocation to nonfederal use on an exclusive, licensed basis. (Certain frequencies used primarily by the Department of Defense and unlicensed devices, including Wi-Fi, are excluded from auction eligibility.) To the extent that the identified spectrum is currently assigned to federal users, the NTIA must withdraw or modify such assignments. 

The FCC must conduct one or more auctions of the identified spectrum for use on an exclusive, licensed basis for mobile broadband, fixed broadband, or a combination thereof. The FCC must complete auctioning at least 200 megahertz of the identified spectrum within three years of this title’s enactment, and must complete auctioning any remaining spectrum within six years of enactment.

Part 2--Artificial Intelligence and Information Technology Modernization

(Sec. 43201) This section prohibits states and localities from regulating artificial intelligence (AI) models, AI systems, or automated decision systems for 10 years. This prohibition does not apply to any state law or regulation

the primary purpose and effect of which is to remove legal impediments to, facilitate the deployment or operation of, or consolidate administrative procedures in a manner that facilitates the adoption of AI models, AI systems, or automated decision systems;

that does not impose substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirements on AI models, AI systems, or automated decision systems, unless such requirements are imposed under federal law or are generally applicable to other models and systems that perform similar functions; or

that imposes only fees and bonds that are reasonable and cost-based and treat other models and systems that perform similar functions in the same manner as AI models, AI systems, and automated decision systems. 

This section also provides specified funds to the Department of Commerce to modernize and secure federal information technology systems through the replacement of some existing systems and the deployment of commercial AI and automation technologies. Specifically, Commerce must use funds appropriated under this section to (1) replace or modernize legacy business systems with commercial AI and automated decision systems; (2) facilitate the adoption of AI models that increase efficiency and service delivery; and (3) improve the cybersecurity of federal information technology systems through modernized architecture, automated threat detection, and integrated AI solutions. 

Under this section, AI is defined as a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. An AI model is a software component of an information system that implements AI technology and uses computational, statistical, or machine-learning techniques to produce outputs from a defined set of inputs. An AI system is any data system, software, hardware, application, tool, or utility that operates in whole or in part using AI. An automated decision system is any computational process derived from machine learning, statistical modeling, data analytics, or AI that issues a simplified output (e.g., a score, classification, or recommendation) to materially influence or replace human decision making.

Subtitle D--Health

Part 1--Medicaid

Subpart A--Reducing Fraud and Improving Enrollment Processes

(Sec. 44103) This section requires the Centers for Medicare & Medicaid Services (CMS) to establish a centralized system for states to check whether enrollees are simultaneously enrolled in Medicaid or the Children’s Health Insurance Program (CHIP) in multiple states. 

Beginning no later than 2027, states must regularly obtain the addresses of Medicaid and CHIP enrollees from specified authorized sources. Beginning no later than FY2030, states must report on at least a monthly basis the Social Security numbers of enrollees to the CMS' newly established system. The CMS must notify states on at least a monthly basis of individuals who are enrolled in multiple states so that states may take appropriate action. 

The section provides funds for FY2026 and FY2029 for the CMS to establish and maintain the new system, respectively.

(Sec. 44104) This section requires state Medicaid programs to check, beginning in 2028, the Social Security Administration's Death Master File on at least a quarterly basis to determine whether Medicaid enrollees are deceased.

(Sec. 44105) This section requires state Medicaid programs to check, beginning in 2028, as part of the provider enrollment and reenrollment process, whether providers were terminated from participating in the Medicare program, any other state Medicaid program, or CHIP using certain databases (e.g., the Data EXchange system). The section requires states to continue to check these databases on at least a monthly basis after providers are enrolled.

(Sec. 44106) This section provides statutory authority for the requirement that state Medicaid programs check, as part of the provider enrollment and reenrollment process, whether providers are deceased through the Social Security Administration's Death Master File. Beginning in 2028, the section requires states to continue to check this database on at least a quarterly basis after providers are enrolled.

(Sec. 44108) This section requires state Medicaid programs to redetermine every six months, beginning in FY2028, the eligibility of individuals who are enrolled in Medicaid as part of the Medicaid expansion population under the Patient Protection and Affordable Care Act. (The act allows states to extend Medicaid coverage to all adults under the age of 65 with incomes of up to 138% of the federal poverty level, including able-bodied adults without dependent children.)

(Sec. 44111) This section reduces by 10%, beginning in FY2028, the enhanced federal matching rate for the Medicaid expansion population in states that provide comprehensive health benefits or financial assistance for purchasing health benefits to individuals who are not lawfully residing in the United States, regardless of the source of the benefits or financial assistance.

Subpart B--Preventing Wasteful Spending

(Sec. 44123) This section provides funds through FY2033 for the CMS to survey retail and non-retail pharmacies (e.g., mail-order pharmacies) to determine average prices of covered outpatient drugs under Medicaid. Pharmacies that fail to participate in the surveys are subject to civil penalties.

The section additionally provides funds for FY2026 for the Office of the Inspector General of the Department of Health and Human Services (OIG) to study the results of the survey and report accordingly to Congress.

(Sec. 44124) This section requires pass-through pricing models, and prohibits spread-pricing, for payment arrangements with pharmacy benefit managers (PBMs) under Medicaid.

(Sec. 44125) This section prohibits federal payment under Medicaid or CHIP for specified gender transition procedures for individuals under the age of 18. The section defines these procedures to mean those that are intended to change the body of an individual to no longer correspond to the individual's biological sex (male or female), including specified surgeries, implants, and medications (e.g., hormones).

The section excludes procedures that are provided to an individual under the age of 18 with the consent of a parent or legal guardian and that are intended to (1) rectify early puberty, genetic disorders, or chromosomal abnormalities; (2) reverse prior gender transition procedures; or (3) prevent imminent death or impairment of a major bodily function.

(Sec. 44126) This section prohibits federal Medicaid payment for 10 years to nonprofit health care providers that serve predominantly low-income, medically underserved individuals (i.e., essential community providers) if the provider (1) primarily furnishes family planning services, reproductive health, and related care; (2) offers abortions in cases other than that of rape, incest, or life-threatening conditions for the woman; and (3) in FY2024, received federal and state Medicaid payments totaling more than $1 million.

Subpart C--Stopping Abusive Financing Practices

(Sec. 44131) This section requires states that had not chosen to expand Medicaid pursuant to the Patient Protection and Affordable Care Act prior to March 11, 2021, to do so by January 1, 2026, in order to receive the corresponding enhanced federal matching rate.

(Sec. 44132) This section generally precludes states from instituting new or otherwise increasing Medicaid provider taxes. Specifically, the section precludes the revenue from any Medicaid provider tax that is newly imposed or increased by a state from qualifying for federal matching payments. 

(Sec. 44133) This section provides funds through FY2033 for the CMS to revise regulations so as to limit state-directed payments for inpatient hospital services, outpatient hospital services, nursing facility services, or qualified practitioner services at an academic medical center under Medicaid managed care contracts to the payment rate for services under Medicare, rather than the average commercial rate.

Subpart D--Increasing Personal Accountability

(Sec. 44141) This section requires, beginning in 2029, individuals who are eligible for Medicaid as part of the Medicaid expansion population to engage in community service, work, or other activities in order to qualify for Medicaid.

Specifically, the section requires these individuals to, on a monthly basis, (1) work at least 80 hours, (2) complete at least 80 hours of community service, (3) participate in a work program for at least 80 hours, (4) be enrolled at least half-time in an educational program, or (5) engage in any combination thereof for a total of at least 80 hours. Individuals may also qualify if they have a monthly income that is at least as much as the equivalent of minimum wage multiplied by 80 hours.

Individuals who are applying for Medicaid must demonstrate compliance with these requirements for one month or more (as determined by the state) consecutively and immediately prior to filing an application; individuals who are already enrolled in Medicaid must demonstrate compliance for one month or more (as determined by the state), whether or not consecutive, during the period between the individual’s last eligibility determination and the next scheduled eligibility determination. 

States must verify an individual’s compliance upon a determination or redetermination of eligibility but may also choose to verify compliance more frequently. States may not waive the new requirements. However, states may choose to provide an exception for individuals experiencing short-term hardships (e.g., hospitalization).

The section excludes certain individuals from these requirements, including those with serious medical conditions or dependent children. 

The section provides funds for FY2026 for states and the CMS to implement these requirements.

(Sec. 44142) This section requires, beginning in FY2029, states to institute cost-sharing requirements for individuals who are eligible for Medicaid as part of the Medicaid expansion population and whose family income exceeds the federal poverty line. Cost sharing may not exceed $35 for an item or service; total cost sharing for all individuals in a family may not exceed 5% of the family’s income. 

The requirements do not apply to services for which cost sharing is already prohibited (e.g., emergency services). States may allow providers to condition the provision of services upon the payment of any required cost sharing.

Part 2--Affordable Care Act

(Sec. 44201) This section modifies enrollment, coverage, and other aspects of health insurance exchanges beginning in 2026, including prohibiting the mandate of special enrollment periods based on income, requiring verification of income and other eligibility requirements prior to certain enrollments, and prohibiting coverage of gender transition procedures as an essential health benefit.

Part 3--Improving Americans’ Access to Care

(Sec. 44301) This section modifies certain provisions under the Medicare Drug Price Negotiation Program with respect to orphan drugs.

The Medicare Drug Price Negotiation Program requires the CMS to negotiate the prices of certain prescription drugs under Medicare beginning in 2026. Among other requirements, drugs must have had market approval for at least 7 years (for drug products) or 11 years (for biologics) to qualify for negotiation. The program does not apply to orphan drugs that are approved to treat only one rare disease or condition.

The bill modifies these provisions so as to exclude any period in which a drug was an orphan drug from market approval calculations. It also excludes orphan drugs that are approved to treat more than one rare disease or condition from the program. The changes take effect in 2028.

(Sec. 44302) This section requires states to establish a process through which qualifying out-of-state providers may temporarily treat children under Medicaid and CHIP without undergoing additional screening requirements. 

Specifically, states must establish a process through which qualifying out-of-state providers may enroll for five years as participating providers to treat individuals under the age of 21 without undergoing additional screening requirements.

A qualifying out-of-state provider (1) must not have been excluded or terminated from participating in a federal health care program or state Medicaid program; and (2) must have been successfully enrolled in Medicare or a state Medicaid program based on a determination that the provider posed a limited risk of fraud, waste, or abuse.

The section’s changes take effect four years after enactment.

(Sec. 44305) This section prohibits PBMs under the Medicare prescription drug benefit or Medicare Advantage from receiving any income for their services other than bona fide service fees. It also establishes reporting requirements for PBMs relating to the prices of prescription drugs.

Specifically, beginning in 2028, PBMs may not receive any income other than flat, bona fide service fees. PBMs must turn over any excess amounts they receive to prescription drug plan (PDP) sponsors; PDP sponsors must turn over these amounts to the CMS. In addition, PBMs must report to PDP sponsors and to the CMS an itemized list of prescription drugs that were dispensed during the previous year and related data about costs, claims, affiliated pharmacies, and other specified information. The section provides funds for FY2025 for the CMS and the OIG to implement these requirements.

TITLE V--COMMITTEE ON FINANCIAL SERVICES

(Sec. 50001) This section rescinds unobligated funds from the Green and Resilient Retrofit Program under the Department of Housing and Urban Development (HUD). The program provides funding for energy efficiency improvements in multifamily properties receiving HUD assistance. 

(Sec. 50002) This section transfers the duties of the Public Company Accounting Oversight Board to the Securities and Exchange Commission. The board is a nonprofit corporation that regulates the audits of publicly traded companies.

(Sec. 50003) This section reduces funding for the Consumer Financial Protection Bureau (CFPB) and makes such funding subject to review by Congress.

(Sec. 50004) This section requires the CFPB to transfer excess funds in the Civil Penalty Fund to the general fund of the Treasury after paying direct victims of consumer financial law violations. Currently, the CFPB uses such funds for consumer education and financial literacy programs. 

(Sec. 50005) This section limits the amounts collected by the Office of Financial Research for the Financial Research Fund.

TITLE VI--COMMITTEE ON HOMELAND SECURITY

(Sec. 60001) This section provides funding to U.S. Customs and Border Protection (CBP) for construction, installation, or improvement to barriers; access roads; detection technology; invasive plant species eradication; and expenses for facilities and checkpoints along U.S. borders. 

(Sec. 60002) This section provides funding for CBP personnel, bonuses, facilities, and fleet vehicles.

(Sec. 60003) This section provides funding for CBP inspection and surveillance equipment, rapid air and marine response capabilities, the vetting of foreign nationals, and activities to prevent drug trafficking.

(Sec. 60004) This section provides funding to the Federal Emergency Management Agency (FEMA) for reimbursing state and local law enforcement for extraordinary costs associated with protecting a residence of the President. 

(Sec. 60005) This section provides funding to FEMA (1) to assist state and local authorities to detect, identify, track, or monitor unmanned aircraft systems; (2) for security, planning, and other costs related to the 2026 FIFA World Cup; (3) for security, planning, and other costs related to the 2028 Olympics; and (4) for the Operation Stonegarden grant program.

TITLE VII--COMMITTEE ON THE JUDICIARY

Subtitle A--Immigration Matters

Part 1--Immigration Fees

This part establishes additional or increased fees for various immigration programs and procedures.

These fees include those required for

applications for asylum,

employment authorizations for asylees, parolees, and individuals granted temporary protected status,

individuals paroled into the United States,

individuals applying for special immigrant juvenile status,

individuals applying for Temporary Protected Status, and

sponsoring the placement of an unaccompanied child.

This part also establishes various fees for specified judicial and adjudicative filings, including

filing in immigration court an application for waiver of grounds of inadmissibility,

filing an appeal of a decision of an immigration judge or a DHS officer, and

a practitioner filing an appeal in a disciplinary case. 

Part 2--Use of Funds

This part provides funding for various immigration agencies and offices for purposes of immigration enforcement, removal, maintenance of facilities, and program operations. This includes the Executive Office for Immigration Review, U.S. Immigration and Customs Enforcement, U.S. Customs and Border Protection, the Office of Refugee Resettlement, and the performance of immigration officer functions by state officers and employees.

(Sec. 70120) This section provides funding for the U.S. Secret Service.

(Sec. 70121) This section provides funding for the Department of Justice to combat drug trafficking. 

Subtitle B--Regulatory Matters

(Sec. 70200) This section requires congressional approval for the enactment of certain major rules by a federal agency. 

Specifically, the section establishes a congressional approval process for major rules that increase revenues. Such a major rule may only take effect if Congress approves of the rule.

In addition, the section establishes a procedure for disapproving rules that increased revenues submitted during the final year of a president’s term.

Over the next five years, agencies must annually submit for review rules currently in effect. Any rule not approved by Congress at the end of this review period is discontinued. 

The section provides funding to the Office of Management and Budget and to the Government Accountability Office to carry out this section.

Subtitle C--Other Matters

(Sec. 70300) This section prohibits the federal government from entering into or enforcing a settlement agreement on behalf of the United States that provides for a payment to any person or entity other than the United States. The section provides exceptions to allow payments that (1) remedy actual harm (including to the environment) caused by the party making the payment, or (2) constitute a payment for services rendered in connection with the case.

The office of inspector general for each agency must report annually on any settlement agreements that violate the section’s requirements.

(Sec. 70301) This section expands the definition of solicitation of orders to include business activities that serve an independently valuable business function apart from the solicitation of orders for purposes of the limitation on a state’s authority to impose a net income tax on an out-of-state seller.

Under current law, a state is prohibited from imposing a net income tax on income derived from within the state from interstate commerce if the only business activity within the state is the solicitation of orders for the sale of tangible personal property, provided that the orders are approved (or rejected) and filled by shipment or delivery from outside of the state. Further, the Supreme Court has held that the term solicitation of orders includes (1) activities that are strictly essential to making requests for purchases, and (2) ancillary activities that serve no independent business function apart from their connection to requests for purchases.

Under this section, the definition of solicitation of orders is expanded to include business activities that facilitate the solicitation of orders even if such business activities serve an independently valuable business function apart from the solicitation.

(Sec. 70302) This section limits the ability of U.S. courts to enforce a citation for contempt for failure to comply with an injunction or temporary restraining order. Specifically, if no security was given when the injunction or order was issued, the citation of contempt may not be enforced using appropriated funds. This limitation applies to injunctions or orders issued before, on, or after the date of enactment.

TITLE VIII--COMMITTEE ON NATURAL RESOURCES

Subtitle A--Energy and Mineral Resources

Part I--Oil and Gas

(Sec. 80101) This section establishes requirements about leasing onshore federal land for oil and natural gas development, including by directing the Department of the Interior to immediately resume onshore quarterly lease sales. 

(Sec. 80102) This section modifies noncompetitive leasing procedures under the Mineral Leasing Act. For example, it directs lands which do not receive bids during an oil and gas lease sale, or where the highest bid is less than the national minimum, to be offered within 30 days for noncompetitive leasing.

(Sec. 80103) This section directs Interior to approve applications that allow for the commingling of production from two or more sources (e.g., the area of an oil and gas lease and nonfederal property) before production reaches the point of royalty measurement if a fee of $10,000 is paid and other conditions are met.

It also directs Interior to establish a permit-by-rule process under which leaseholders may obtain approval to drill for oil and gas on federal land if the leaseholder pays a $5,000 fee and complies with other established regulations.

(Sec. 80104) This section prohibits Interior from requiring a permit to drill for an oil and gas lease under the Mineral Leasing Act if the leaseholder pays a fee of $5,000 and criteria related to nonfederal ownership of the land or minerals are met.

(Sec. 80105) This section decreases the minimum royalty rates for onshore and offshore development of oil and gas on federal lands.

Part II--Geothermal

(Sec. 80111) This section directs Interior to hold geothermal lease sales annually and conduct replacement sales for canceled or delayed lease sales.

(Sec. 80112) This section modifies royalty provisions under the Geothermal Steam Act of 1970, including by stating that geothermal facilities on the same geothermal lease are treated as separate facilities with respect to royalty payment.

Part III--Alaska

(Sec. 80121) This section modifies provisions concerning the production of oil and gas from the Arctic National Wildlife Refuge (ANWR) in Alaska, including by providing for the reissuance of certain leases for energy development. 

The section also directs Interior to conduct at least four lease sales under the Coastal Plain Oil and Gas Leasing Program in the ANWR not later than seven years after enactment of the bill. Additionally, it outlines how the revenues derived from the program must be divided between Alaska and the federal government.

(Sec. 80122) This section restores and resumes the National Petroleum Reserve-Alaska (NPR-A) oil and gas program. It also outlines how the revenues derived from the program must be divided between Alaska and the federal government.

Part IV--Mining

(Sec. 80131) This section nullifies the Bureau of Land Management’s Public Land Order No. 7917 for Withdrawal of Federal Lands; Cook, Lake, and Saint Louis Counties, MN that was published on January 31, 2023.

It also reinstates certain hardrock mineral leases in the Superior National Forest in Minnesota.

(Sec. 80132) This section provides for the establishment of a surface transportation access corridor for the Ambler Road Project in Alaska.

Part V--Coal

(Sec. 80141) This section directs Interior to hold certain coal lease sales.

(Sec. 80142) This section nullifies Interior's Secretarial Order 3338, which placed a hold on most new federal coal leases until the BLM completes a comprehensive review of the federal coal program.

(Sec. 80143) This section temporarily decreases the royalty rate for coal leases on federal lands.

(Sec. 80144) This section authorizes all federal coal reserves leased under Federal Coal Lease MTM 97988 to be mined in accordance with the Bull Mountains Mining Plan Modification.

Part VI--NEPA

(Sec. 80151) This section modifies the environmental review process under the National Environmental Policy Act of 1969, including by allowing a project sponsor to opt to pay a fee for the preparation and completion of an environmental assessment or environmental impact statement by certain deadlines.

(Sec. 80152) This section rescinds certain funding for the Council on Environmental Quality, including funding for (1) collecting data related to environmental and climate issues, (2) tracking disproportionate burdens and cumulative impacts, and (3) supporting efforts to ensure that any mapping or screening tool is accessible to community-based organizations and community members. 

Part VII--Miscellaneous

(Sec. 80161) This section establishes a filing fee for protests of oil and gas lease sales.

Part VIII--Offshore Oil and Gas Leasing

(Sec. 80171) This section directs Interior to hold a specified number of offshore oil and gas lease sales on certain submerged lands of the Outer Continental Shelf (OCS), including areas in the Gulf of America and the Cook Inlet Planning Area in Alaska.

(Sec. 80172) This section directs Interior to approve operator requests to commingle production from multiple reservoirs within a single wellbore completed on the OCS of the Gulf of America unless conclusive evidence shows the practice would be unsafe or reduce recovery.

(Sec. 80173) This section modifies the Gulf of Mexico Energy Security Act of 2006 to raise the cap on the distribution of OCS revenues from $500 million to $650 million for FY2026-FY2034.

Part IX--Renewable Energy

(Sec. 80181) This section establishes requirements related to renewable energy fees on federal lands, including by providing statutory authority for annual acreage rent for wind and solar rights-of-ways.

(Sec. 80182) This section provides a mechanism for states, counties, and the federal government to share revenues from renewable energy projects on public lands.

Subtitle B--Water, Wildlife, and Fisheries

(Sec. 80201) This section rescinds funding provided to the National Oceanic and Atmospheric Administration (NOAA) that NOAA uses to provide financial or technical assistance to coastal states and other eligible entities in order to enable coastal communities prepare for extreme storms and other changing climate conditions. The assistance may be used for the conservation, restoration, and protection of coastal habitat, marine habitats, and marine fisheries.

(Sec. 80202) This section rescinds funding for certain NOAA facilities (e.g., piers, fisheries laboratories, and national marine sanctuaries facilities).

(Sec. 80203) This section provides funding to the Bureau of Reclamation for construction and associated activities that increase the capacity of existing Reclamation surface water storage facilities.

(Sec. 80204) This section provides funding to Reclamation for construction and associated activities that increase the capacity of existing Reclamation conveyance facilities.

Subtitle C--Federal Lands

(Sec. 80301) This section prohibits the Bureau of Land Management (BLM) from implementing, administering, or enforcing the Rock Springs Field Office Record of Decision and Approved Resource Management Plan, which was signed on December 20, 2024. The plan includes guidance for managing public lands administered by the office and located in Lincoln, Sweetwater, Uinta, Sublette, and Fremont Counties in southwestern Wyoming.

(Sec. 80302) This section prohibits the BLM from implementing, administering, or enforcing its 2024 Approved Resource Management Plan Amendment for its Buffalo Field Office in Wyoming. The field office manages 780,291 acres of public lands and 4,731,140 acres of mineral estates within Campbell, Johnson, and Sheridan Counties in north-central Wyoming.

In 2015, the BLM published a management plan for the field office that allowed leases of certain public lands or mineral estates within the office's planning area for the development of coal. 

In 2018, the U.S. District Court for the District of Montana in Western Organization of Resource Councils v. Bureau of Land Management ordered the BLM to complete a new environmental impact statement (EIS) for the management plan under the National Environmental Policy Act of 1969, which requires an agency to include all reasonable alternatives to its action and the environmental impacts resulting from the action. Specifically, the court ordered the BLM to issue an EIS that considers an alternative of not leasing coal under the management plan as well as an alternative that limits the amount of coal potentially available for leasing.

In response to the court order, the BLM published an amendment to the plan on November 27, 2024. The amended plan made no acres within the office's planning area available for future coal leasing in order to reduce greenhouse gas emissions. However, it allowed existing coal leases to be developed.

(Sec. 80303) This section prohibits the BLM from implementing, administering, or enforcing its 2024 Record of Decision and Approved Resource Management Plan Amendment for its Miles City Field Office in Montana.

(Sec. 80304) This section prohibits the BLM from implementing, administering, or enforcing its 2025 Record of Decision and Approved Resource Management Plan for North Dakota.

(Sec. 80305) This section prohibits the BLM from implementing, administering, or enforcing its 2024 Records of Decision and Approved Resource Management Plans for its Colorado River Valley Field Office and Grand Junction Field Office in Colorado.

(Sec. 80306) This section rescinds certain funding for the National Forest System, including funding for forest restoration, wildfire prevention, environmental reviews, the protection of protection of old-growth forests, and related activities.

(Sec. 80307) This section rescinds certain funding for Interior to carry out certain projects concerning the conservation, protection, and resiliency of lands and resources administered by the National Park Service (NPS) and the BLM.

(Sec. 80308) This section rescinds funding for certain conservation and ecosystem and habitat restoration projects on lands administered by the NPS and the BLM.

(Sec. 80309) This section rescinds certain funding provided to the NPS for hiring more employees.

(Sec. 80310) This section provides funding to Interior (1) to establish and maintain a statuary park named the National Garden of American Heroes; and (2) for events, celebrations, and activities related to the 250th anniversary of America’s founding.

(Sec. 80311) This section directs the Forest Service to annually enter into at least one 20-year or longer contract or agreement with private persons or other entities for timber harvesting in each of its regions for FY2025-FY2034. 

(Sec. 80312) This section directs the BLM to annually enter into at least one 20-year or longer contract or agreement with private persons or other entities to dispose of vegetative materials on certain federal lands for FY2025-FY2034. 

(Sec. 80313) This section requires the Forest Service to direct timber harvests on certain public lands in amounts that (1) equal or exceed the volume that is 25% higher than the volume harvested during FY2024; and (2) are in accordance with the applicable forest plan.

(Sec. 80314) This section requires the BLM to direct timber harvests on specified public lands in amounts that (1) equal or exceed the volume that is 25% higher than the volume harvested during FY2024; and (2) are in accordance with the applicable forest plan.

(Sec. 80315) This section authorizes Interior to sell or exchange specified public land in Nevada to the City of Fernley, Clark County, Washoe County, and Pershing County. 

(Sec. 80316) This section authorizes the sale of specified public land from the Department of Agriculture to Washoe County, Nevada.

(Sec. 80317) This section authorizes the sale of approximately 11,450 acres of specified public land in Utah from the BLM to Beaver County, the City of St. George, Washington County, and Washington County Water Conservancy District.

TITLE IX--COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM

This title makes changes to the Federal Employees' Retirement System (FERS). It also revises fees collected by the Merit Systems Protection Board (MSPB) and revises the Federal Employees Health Benefits (FEHB) Program.

(Sec. 90001) This section raises the required contribution rates for certain groups of individuals who entered FERS before January 1, 2014. (This applies to most federal employees, Members of Congress, and congressional staff.)

Under this section, FERS employee contributions for those individuals first hired before 2013 increases from 0.8% to 4.4% of pay over two calendar years, beginning in January 2026. This same increase applies to Members and congressional staff first elected or hired before 2013, plus an additional 0.5%. 

FERS employee contributions for those individuals first hired in 2013, including Members and congressional staff, increases from 3.1% to 4.4% of pay, also over two calendar years and beginning in January 2026.

(Sec. 90002) This section eliminates the FERS annuity supplement for new retirees not yet entitled to it. (Under current law, certain FERS employees who retire before age 62 with certain years of service receive a supplement to their annuity, which ends when the retiree turns 62 or becomes eligible to receive Social Security benefits.) Employees who retire under a mandatory authority and employees who retire before enactment of this section continue to receive the annuity supplement.

(Sec. 90003) This section changes the years of salary history used for calculating retirement benefits for FERS (and the now-closed Civil Service Retirement System) to be the average of the highest five consecutive years of basic pay (instead of the average of the highest three consecutive years), effective for new retirees beginning in January 2027. (This section does not apply to law enforcement officers and related personnel.)

(Sec. 90004) This section requires most new federal civilian employees to choose either to serve as at-will employees or to contribute an additional 5% of their salary to FERS.

Specifically, the section increases the contribution rate from 4.4% to 9.4% of pay for these employees (or from 4.9% to 9.9% for groups covered by enhanced retirement benefits) unless they elect to be employed on an at-will basis. Employees who elect to be employed on an at-will basis may be subject to adverse actions, including termination, without notice or the right to appeal the action. 

(Sec. 90005) This section directs the MSPB to establish and collect a filing fee for employees, former employees, or applicants who file claims or appeals with the MSPB. This fee must be in the amount required for federal district court filings (currently, $350). If the individual is successful in their claim, the fee must be returned to that individual. The section provides an exception for actions brought by the Office of Special Counsel to the MSBP and for claims alleging retaliation against whistleblowers.

(Sec. 90006) This section requires the Office of Personnel Management (OPM) to issue regulations and implement a process to verify (1) the veracity of any qualifying life event through which an enrollee in the FEHB Program seeks to add a family member for coverage under the program; and (2) that, when an enrollee seeks to add a family member to the FEHB program, the individual added is a qualifying family member.

The section also requires OPM, in coordination with employing offices, to conduct a comprehensive audit regarding family members enrolled in the FEHB program. In conducting this audit, OPM must review marriage certificates, birth certificates, and other appropriate documents to determine eligibility. 
OPM must develop a process to disenroll or remove an individual who is not eligible to participate in the FEHB program and notify the OPM inspector general of such disenrollment or removal. 

The section allows for some Employees Health Benefits Fund amounts to be available to OPM annually starting in FY2026 to develop, maintain, and conduct ongoing eligibility verification and oversight and oversight of the FEHB enrollment and eligibility systems. Other amounts shall be available for audit activities.

For more information on this title, see CRS Report IF12996, House Oversight and Government Reform (HOGR) Reconciliation Committee Print Pursuant to H.Con.Res. 14 .

TITLE X--COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

(Sec. 100001) This section provides the Coast Guard with specified funds for FY2025, to remain available through FY2029. This includes funds for

fixed and rotary wing aircraft,

long-range unmanned aircraft systems,

Offshore Patrol Cutters,

Fast Response Cutters,

Polar Security Cutters,

Arctic Security Cutters and domestic icebreakers,

depot maintenance, and

shoreside infrastructure.

(Sec. 100002) This section authorizes the Coast Guard to place members of the Selected Reserve on active duty under certain circumstances for no more than 365 consecutive days. That time would count toward the reservists’ entitlement for benefits under the Post-9/11 Veterans' Educational Assistance Act of 2008, which is commonly referred to as the Post-9/11 GI Bill.

(Sec. 100003) This section increases tonnage duties charged to vessels that enter U.S. ports. In general, the section would increase tonnage duty rates by 125% relative to rates under current law.

(Sec. 100004) This section requires the Federal Highway Administration (FHWA) to impose annual federal registration fees on owners of electric and hybrid vehicles and provides funding for the FHWA to award grant to states for implementing systems for collecting the fees. States must collect a fee of $250 for electric vehicles and $100 for hybrid vehicles. The amounts must be adjusted annually for inflation. The fees terminate on October 1, 2035. 

(Sec. 100005) This section requires the FHWA to transfer amounts collected from the new annual registration fees for electric and hybrid vehicles to the Highway Trust Fund.

(Sec. 100006) This section provides specified funds to the Federal Motor Carrier Safety Administration (FMCSA) to establish a public website to present data on motor carriers in order to indicate whether each motor carrier meets FMCSA operating requirements. The website must display specific statements to indicate whether the motor carrier does or does not meet FMCSA operating requirements. 

FMCSA must assess an annual fee of $100 on each person seeking access to the website.

A broker, freight forwarder, or household goods freight forwarder that uses the website to ensure that a motor carrier engaged by such broker, freight forwarder, or household goods freight forwarder meets FMCSA operating requirements shall be considered to have taken reasonable and prudent determinations in engaging such motor carrier.

(Sec. 100007) This section rescinds the unobligated balances for the following activities and programs that were funded as part of the Inflation Reduction Act of 2022 (Public Law 117–169):

Alternative Fuel and Low-Emission Aviation Technology Program, which includes the Fueling Aviation’s Sustainable Transition (FAST), of the Federal Aviation Administration (FAA);

Neighborhood Access and Equity Grant Program of the Federal Highway Administration;

funding provided to the Federal Buildings Fund for the conversion of General Services Administration (GSA) facilities to high-performance green buildings;

funding provided to the Federal Buildings Fund for acquiring and installing low-carbon materials and products in the construction of federal buildings;

emerging and sustainable technology program of the GSA;

Low Carbon Transportation Materials Grants Program of the Federal Highway Administration (FHWA); and

Environmental Review Implementation Funds of the FHWA.

(Sec. 100008) This section provides the Federal Aviation Administration with specified funds for FY2025, to remain available through FY2029. This includes additional funding for

air traffic control tower and terminal radar approach control facility replacement;

radar systems replacement;

telecommunications infrastructure and systems replacement;

runway safety projects and airport surface surveillance projects; and

air traffic controller recruitment, retention, training, and advanced training technologies.

The FAA must submit a report to Congress every 90 days on these expenditures.

(Sec. 100009) This section provides specified funds for the John F. Kennedy Center for the Performing Arts in Washington, D.C. This includes funding for (1) expenses for the capital repair and restoration of the building and site; (2) the operation, maintenance, and security of the center; and (3) administrative expenses.

TITLE XI--COMMITTEE ON WAYS AND MEANS, ‘‘THE ONE, BIG, BEAUTIFUL BILL’’

Subtitle A--Make American Families and Workers Thrive Again

Part 1--Permanently Preventing Tax Hikes on American Families and Workers

This part makes permanent multiple individual federal tax provisions enacted in 2017 by the Tax Cuts and Jobs Act.

Below are some examples of provisions in this part.

(Sec. 110001) This section makes permanent the individual tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

(Sec. 110002) This section makes permanent the increased standard deduction and provides an additional increase in the standard deduction in the amount of $1,000 (or $2,000 for joint filers and $1,500 for head of household) through 2028.

(Sec. 110003) This section permanently repeals the allowance of a deduction for personal exemptions.

(Sec. 110004) This section makes multiple changes to the child tax credit.

(Sec. 110005) This section extends and increases to 23% (from 20%) the tax deduction for qualified business income.

(Sec. 110006) This section increases the base estate tax, gift tax, and generation-skipping transfer tax exemption amount to $15 million (from $5 million), adjusted for inflation.

(Sec. 110007) This section makes permanent the increased alternative minimum tax exemption amount and phaseout threshold (applicable to individuals, trusts, and estates).

(Sec. 110010) This section eliminates the itemized tax deduction for miscellaneous expenses.

(Sec. 110011) This section limits itemized tax deductions to 2/37 of the lesser of (1) the total amount of itemized tax deductions (calculated without regard to such limitation), or (2) the amount of a taxpayer’s taxable income that exceeds the threshold for the 37% rate bracket.

For additional information see

CRS Report R47846, Reference Table: Expiring Provisions in the "Tax Cuts and Jobs Act" (TCJA, P.L. 115-97) 

CRS Report R48485, Economic Effects of the Tax Cuts and Jobs Act 

CRS Report R48286, Expiring Provisions of P.L. 115-97 (the Tax Cuts and Jobs Act): Economic Issues 

Part 2--Additional Tax Relief for American Families and Workers

This part establishes multiple new above-the-line tax deductions and makes other changes to individual-related federal tax provisions. (Above-the-line deductions are subtracted from gross income to calculate adjusted gross income.) 

Below are some examples of provisions in this part.

(Sec. 110101) This section establishes a new above-the-line tax deduction, through 2028, for qualified tip income for individuals whose earned income does not exceed a certain amount ($160,000 in 2025 and adjusted annually for inflation).

(Sec. 110102) This section establishes a new above-the-line tax deduction, through 2028, for qualified overtime income for individuals whose earned income does not exceed a certain amount ($160,000 in 2025 and adjusted annually for inflation).

(Sec. 110104) This section establishes a new above-the-line tax deduction of up to $10,000 for interest paid on indebtedness incurred in 2025 (through 2028) to buy a passenger vehicle (for personal use). The tax deduction phases out for taxpayers with modified adjusted gross income that exceeds $100,000 (or $200,000 for joint filers).

(Sec. 110110) This section expands the expenses eligible for tax-free withdrawals from qualified tuition programs (529 plans) to include certain additional expenses related to elementary, secondary, or homeschool education. 

(Sec. 110111) This section expands the expenses eligible for tax-free withdrawals from 529 plans to include tuition, fees, books, supplies, equipment, and other expenses related to the enrollment or attendance in a recognized postsecondary credentialing program.

(Sec. 110112) This section establishes a tax deduction of up to $150 (or $300 for joint filers) for charitable contributions by taxpayers who do not itemize their tax deductions.

(Sec. 110115) This section establishes a new type of tax-advantaged account, called Money Accounts for Growth and Advancement (MAGA) accounts, for individuals under eight years old. Up to $5,000 per year (adjusted for inflation) may be contributed to a MAGA account (not including certain rollovers) and distributions may be used for certain education-related expenses, small business expenses, and to buy a first-time home. (Some limitations apply).

(Sec. 110116) This section authorizes a one-time federal government deposit of $1,000 into a MAGA account for individuals born between 2025 and 2029 who meet certain other requirements.

For more information see

CRS In Focus IF12728, Taxation of Tip Income 

CRS Report R42807, Tax-Preferred College Savings Plans: An Introduction to 529 Plans 

Part 3--Investing in the Health of American Families and Workers

This part modifies certain health reimbursement arrangement (HRA) rules, increases health savings account (HSA) contribution limits, expands HSA eligibility requirements, and makes other changes to HSAs and high-deductible health plans (HDHP).

Below are some examples of provisions in this part.

(Sec. 110201) This section provides statutory authority for employers to contribute to an individual coverage HRA, subject to certain limitations and requirements and renames such arrangements as Custom Health Option and Individual Care Expense (or CHOICE) arrangements.

(Sec. 110202) This section allows employees enrolled in a CHOICE arrangement to use a cafeteria plan (e.g., flexible spending account) to purchase individual health insurance through a health insurance exchange.

(Sec. 110203) This section establishes a new tax credit (as part of the general business tax credit) for certain small businesses whose employees are enrolled in a CHOICE arrangement. The amount of the tax credit is $100 (adjusted annually for inflation) per month per employee for the first year of enrollment in a CHOICE arrangement and, then, half such amount per month per employee for the second year of enrollment. 

(Sec. 110204) This section expands eligibility to make tax-deductible HSA contributions to include individuals who are 65 years or older and are enrolled in Medicare Part A. 

(Sec. 110205) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a direct primary care service arrangement with a fixed period fee that does not exceed $150 a month (adjusted annually for inflation). Some limitations apply.

(Sec. 110206) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a bronze-level or catastrophic health insurance plan through a health insurance exchange.

(Sec. 110207) This section provides statutory authority for individuals to contribute to an HSA while also accessing some types of health care at an employer-sponsored clinic on the employer’s premises or at a health care facility operated by an employer for the benefit of employees.

(Sec. 110209) This section allows married individuals who are 55 years or older to make catch-up contributions to the same HSA. (Some limitations apply.)

(Sec. 110210) This section allows individuals to rollover amounts in a flexible spending arrangement (FSA) or HRA into an HSA. (Some limitations apply.)

(Sec. 110211) This section excludes from taxable income any distributions from an HSA used to pay qualified medical expenses incurred before the HSA is established if the HSA is established within 60 days from the first day of coverage under an HDHP.

(Sec. 110212) This section allows an individual to contribute to an HSA, even if covered by a spouse’s FSA. (Some limitations apply.)

(Sec. 110213) This section increases HSA contribution limits by $4,300 for individuals with self-only coverage and by $8,550 for individual with family coverage, adjusted annually for inflation. The increase in HSA contributions begins to phase out for individuals with an adjusted gross income exceeding $75,000 (or $150,000 for joint filers). (Some limitations apply.)

For more information see CRS Report R45277, Health Savings Accounts (HSAs) 

Subtitle B--Make Rural America and Main Street Grow Again

Part 1--Extension of Tax Cuts and Jobs Act Reforms for Rural America and Main Street

This part makes a number of changes to business-related federal tax provisions.

Below are some examples of provisions in this part. 

(Sec. 111001) This section extends bonus depreciation for qualified property acquired and placed into service after January 19, 2025, and before January 1, 2030 (and before January 1, 2031, for some types of property with longer production periods).

(Sec. 111002) This section temporarily suspends (through 2029) the amortization (over five years) of domestic research and experimental expenses and allows such expenses to be deducted or capitalized. (Some limitations apply.)

(Sec. 111003) This section expands the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses to include interest on floor plan financing of any camper or trailer designed to (1) provide temporary living quarters for recreational, camping, or seasonal use; and (2) be towed by, or affixed to, a motor vehicle.

(Sec. 111004) This section increases the foreign-derived intangible income tax deduction to 37.5% (from 21.875%) and increases the deduction for global intangible low-taxed income to 50% (from 37.5%). 

(Sec. 111005) This section reduces the base erosion rate to 10% (from 12.5%).

For additional information see

CRS Report R47846, Reference Table: Expiring Provisions in the "Tax Cuts and Jobs Act" (TCJA, P.L. 115-97) 

CRS Report R48485, Economic Effects of the Tax Cuts and Jobs Act 

CRS Report R48286, Expiring Provisions of P.L. 115-97 (the Tax Cuts and Jobs Act): Economic Issues 

CRS Report RL31852, The Section 179 and Section 168(k) Expensing Allowances: Current Law, Economic Effects, and Selected Policy Issues 

Part 2--Additional Tax Relief for Rural America and Main Street

This part makes a number of changes to business-related federal tax provisions.

Below are some examples of provisions in this part. 

(Sec. 111101) This section provides for an elective 100% depreciation allowance for nonresidential real property that meets certain requirements. (Some limitations apply.)

(Sec. 111102) This section extends the Opportunity Zone program to allow for the designation of additional qualified opportunity zones. It also modifies the definition of low-income community and other requirements for the program. 

(Sec. 111103) This section increases to $2.5 million (from $1.25 million in 2025 and adjusted annually for inflation) the maximum amount that may be deducted (expensed) for certain depreciable business assets. This section also increases to $4 million (from $3.13 million in 2025 and adjusted annually for inflation) the dollar amount at which the tax deduction begins to phase out. Both amounts continue to be annually adjusted for inflation. 

(Sec. 111106) This section repeals the 10% excise tax on tanning services. 

Subtitle C--Make America Win Again

Part 1--Working Families Over Elites

This part modifies, phases out, and terminates multiple energy-related federal tax credits. This part also modifies the federal tax deduction for state and local taxes and the excise tax imposed on the net investment income of certain organizations.

Below are some examples of provisions in this part. 

(Sec. 112001) This section terminates the previously-owned clean vehicle tax credit. 

(Sec. 112002) This section terminates the clean vehicle tax credit. 

(Sec. 112003) This section terminates the qualified commercial clean vehicle tax credit. 

(Sec. 112004) This section terminates the alternative fuel refueling property tax credit. 

(Sec. 112005) This section terminates the energy efficient home improvement tax credit. 

(Sec. 112006) This section terminates the residential clean energy tax credit.

(Sec. 112007) This section terminates the new energy efficient home tax credit.

(Sec. 112008) This section modifies and phases out the clean electricity production tax credit.

(Sec. 112009) This section modifies and phases out the clean electricity investment tax credit.

(Sec. 112012) This section modifies and phases out the zero-emission nuclear power production tax credit.

(Sec. 112013) This section terminates the clean hydrogen production tax credit.

(Sec. 112014) This section modifies and phases out the advance manufacturing production tax credit.

(Sec. 112015) This section modifies and phases out the investment tax credit for qualified energy property (e.g., solar, fuel cell, geothermal, biogas, and microgrid controller property).

(Sec. 112018) This section increases the limitation on the federal tax deduction for state and local taxes (commonly known as the SALT deduction cap) to $30,000 (or $15,000 for married individuals filing separately). Under this section, the SALT deduction cap is reduced for taxpayers with an adjusted gross income over $400,000 (or $200,000 for married individuals filing separately, but not below $10,000 (or $5,000 for married individuals filing separately).

(Sec. 112021) This section replaces the excise tax of 1.4% imposed on the net investment income of certain private university and college endowments with a new rate structure of 1.4%, 7%, 14%, or 21%, depending on several variables including the value of the endowment and the number of full-time students who meet certain other requirements.

For more information see

CRS Report R46865, Energy Tax Provisions: Overview and Budgetary Cost 

CRS Report R46246, The SALT Cap: Overview and Analysis 

CRS Report R44293, College and University Endowments: Overview and Tax Policy Options 

Part 2--Removing Taxpayer Benefits for Illegal Immigrants

This part modifies eligibility requirements for the premium tax credit and certain other tax credits. This part also imposes an excise tax on certain remittance transfers.

Below are some examples of provisions in this part. 

(Sec. 112101) This section allows lawfully-present aliens to claim the premium tax credit to purchase health insurance on an exchange only if they meet certain requirements (subject to exceptions provided in Sec. 112102).

(Sec. 112102) This section provides that a lawfully-present alien is eligible for the premium tax credit only if such individual is not (and is reasonably expected not to be for the entire period of enrollment in an exchange health care plan) granted (1) an application for asylum (or with a pending application for asylum), (2) parole, (3) temporary protected status, (4) deferred action or deferred enforced departure, or (5) withholding of removal.

(Sec. 112103) This section repeals the rule that allows certain lawfully-present aliens who have a household income of less than 100% of the federal poverty level and are ineligible for Medicaid (based on the individual’s alien status) to claim the premium tax credit. 

(Sec. 112105) This section establishes a 5% excise tax on transfers of payments from one country to another (also known as remittance transfers). (Some exceptions apply).

(Sec. 112106) This section requires a Social Security number to be eligible for the American Opportunity and Lifetime Learning tax credits.

For more information see

CRS Report R44425, Health Insurance Premium Tax Credit and Cost-Sharing Reductions 

CRS Report R48290, Enhanced Premium Tax Credit Expiration: Frequently Asked Questions 

Part 3--Prevent Fraud, Waste, and Abuse

This part modifies multiple federal tax administrative and penalty provisions. 

Below are some examples of provisions in this part. 

(Sec. 112205) This section increases the penalty for aiding and abetting the understatement of tax liability with respect to the employee retention tax credit (ERTC) by a COVID-ERTC promoter and makes certain other changes related to the ERTC.

(Sec. 112206) This section establishes a new certification program for claiming the earned income tax credit.

(Sec. 112207) This section directs the Internal Revenue Service (IRS) to terminate the Direct File program.

(Sec. 112209) This section extends the IRS’s authority to terminate the tax-exempt status of terrorist organizations to terrorist-supporting organizations.

(Sec. 112210) This section increases the penalties for the unauthorized disclosure of taxpayer information.

For more information see CRS Report R43805, The Earned Income Tax Credit (EITC): How It Works and Who Receives It 

Subtitle D--Increase in Debt Limit

(Sec. 113001) This section increases the statutory debt limit by $4 trillion. (The debt limit is the amount of money that the Department of the Treasury may borrow to fund federal operations.)

 

action_date: 2025-05-22
text: 

One Big Beautiful Bill Act

This bill reduces taxes, reduces or increases spending for various federal programs, increases the statutory debt limit, and otherwise addresses agencies and programs throughout the federal government. 

It is known as a reconciliation bill and includes legislation submitted by 11 House committees pursuant to provisions in the FY2025 congressional budget resolution (H Con. Res. 14) that directed the committees to submit legislation to the House Budget Committee that will increase or decrease the deficit and increase the statutory debt limit by specified amounts. (Reconciliation bills are considered by Congress using expedited legislative procedures that prevent a filibuster and restrict amendments in the Senate.)

TITLE I--COMMITTEE ON AGRICULTURE

This title addresses a wide range of Department of Agriculture (USDA) programs, including by changing the Supplemental Nutrition Assistance Program (SNAP) and extending programs authorized by the Agriculture Improvement Act of 2018 (commonly known as the 2018 farm bill).

Subtitle A--Nutrition

(Sec. 10001) This section prohibits USDA from increasing the cost of the Thrifty Food Plan (TFP) based on a reevaluation or update of the contents of the TFP (i.e., the market basket of goods). Further, any annual adjustment to the cost of the plan must be based on the Consumer Price Index for All Urban Consumers.

As background, USDA created the TFP (the cost of purchasing a nutritionally adequate low-cost diet), which is used to determine maximum monthly benefits under the Supplemental Nutrition Assistance Program (SNAP). USDA calculates the cost of the TFP each year to account for food price inflation. Maximum allotments are set at the monthly cost of the TFP for a four-person family, adjusted for family size. Under a provision of the 2018 farm bill, USDA must reevaluate the market basket of goods every five years based on current food prices, food composition data, consumption patterns, and dietary guidance.

(Sec. 10002) This section expands the applicability of work requirements for SNAP recipients who are able-bodied adults without dependents (ABAWDs). As background, these SNAP recipients have work-related requirements in addition to the general SNAP work registration and employment and training requirements.

Specifically, the section amends the exemptions to this requirement.

First, the section applies the work requirements for ABAWDs to adults who are not over 65 years old, whereas these requirements currently apply to adults who are not over 55 years old.

Second, the ABAWD exemption for a parent or household member with responsibility for a dependent child is restricted to a dependent child under the age of seven. Currently, the child must be under the age of 18.

This section includes an exception for a person who is (1) responsible for a dependent child who is seven years of age or older, and (2) married to and resides with an individual who complies with the SNAP work requirements.

In addition, the section specifies that current ABAWD exemptions set to sunset on October 1, 2030 will sunset. These exemptions from the ABAWD work requirements are for homeless individuals, veterans, and certain foster care individuals (those who are 24 years old or younger and were in foster care on the date of attaining 18 years of age or a higher age).

(Sec. 10003) This section modifies the ABAWD waiver program's allowable state exemptions. Under current law, an ABAWD waiver program allows state exemptions based on an area having an unemployment rate of over 10% or an insufficient number of jobs. The section amends the exemption to require the unemployment rate to be based on the rate for the county, instead of the area. Further, the section repeals the provision that allows a state exemption if that area does not have a sufficient number of jobs.

Under current law, a state agency may exempt up to 8% of SNAP recipients from the ABAWD work requirements for each fiscal year. This section reduces the percentage of exemptions a state agency may provide each year so that the average monthly number of exemptions does not exceed 1% of covered individuals (i.e., SNAP recipients and certain individuals who were denied SNAP benefits due to the work requirements).

(Sec. 10004) This section limits the availability of the Standard Utility Allowance (SUA) for determining SNAP income eligibility. Specifically, only households that include an elderly or disabled member may be considered automatically eligible for the SUA based on participation in the Low Income Home Energy Assistance Program (LIHEAP) or a similar energy assistance program.

As background, when determining a household’s eligibility for SNAP, states consider the total shelter costs for a household, including the cost of utilities. States can use SUAs, which are standard amounts that represent low-income household utility costs in the state or local area. Currently, all LIHEAP participants who receive a minimum benefit are eligible for the SUA for determining SNAP income eligibility.

(Sec. 10005) This section prohibits household internet costs (e.g., monthly subscriber fees) from being used in computing the excess shelter expense deduction for the purposes of determining the size of household SNAP benefits.

(Sec. 10006) This section establishes state-matching fund requirements for the cost of SNAP program allotments. Currently, the state match is 0%. Beginning in FY2028, any state that has a payment error rate that is less than 6% must contribute a 5% match for the cost of SNAP program allotments.

A state with a payment error rate that is

at least 6% but less than 8% must contribute 15%;

at least 8% but less than 10% must contribute 20%; and

10% or greater must contribute 25%.

(Sec. 10007) This section reduces the amount that USDA may pay a state agency for administrative costs for the operation of SNAP to 25% of all administrative costs, from the current 50%, thereby increasing the state share of administrative costs from 50% to 75%.

(Sec. 10008) This section modifies the general work requirements of the SNAP program to cover individuals who are over the age of 17 and under the age of 65. Currently, the general work requirements apply to individuals who are over the age of 15 and under the age of 60. It also exempts parents or members of a household with responsibility for the care of a child who is under the age of seven (under the age of six under current law) from the requirements.

(Sec. 10009) This section requires state agencies (under the SNAP National Accuracy Clearinghouse) to use each indication of a multiple issuance of SNAP benefits to prevent multiple issuances of other federal and state assistance program benefits.

(Sec. 10010) This section reduces the tolerance level to $0 for a state to exclude small SNAP payment errors in the calculation of payment error rates.

As background, the SNAP quality control system measures how accurately SNAP state agencies determine a household’s eligibility and benefit amount and determines overpayments of benefits and underpayments. Under current law, the Food and Nutrition Service must set a tolerance level for excluding small payment errors in the calculation of payment error rates (e.g., $56 or less in FY2024). This section requires that the calculation of payment error rates include all SNAP payment errors.

(Sec. 10011) This section eliminates the SNAP Nutrition Education and Obesity Prevention Grant Program (SNAP-ED).

(Sec. 10012) This section limits SNAP benefits to individuals who reside in the United States and are (1) U.S. citizens or U.S. nationals; (2) aliens lawfully admitted for permanent residence as an immigrant, with exceptions; (3) aliens who are Cuban citizens or Cuban nationals and meet certain requirements; or (4) individuals who are lawfully residing in the United States in accordance with the Compacts of Free Association between the United States and Micronesia, the Marshall Islands, and Palau.

Currently, SNAP eligibility extends to additional individuals who are classified as an alien under federal law, including an alien who has qualified for conditional entry under the asylum and refugee laws.

(Sec. 10013) This section extends funding for the Emergency Food Assistance Program (TEFAP) through FY2031. TEFAP provides food commodities (and cash support for storage and distribution costs) through states to local emergency feeding organizations (e.g., food banks).

Subtitle B--Investment in Rural America

(Sec. 10101) This section amends and extends commodity support programs.

For example, the section extends the Price Loss Coverage Program, the Agricultural Risk Coverage Program, and Dairy Margin Coverage through crop year 2031. It also modifies various requirements for the programs.

The section also extends the suspension of permanent price authority through crop year 2031 for commodities other than dairy and through December 31, 2031, for dairy.

Further, the section addresses programs and issues such as marketing loans, disaster assistance, the sugar program, federal crop insurance, the Livestock Indemnity Program, and the establishment of a Poultry Insurance Pilot Program.

For example, this section provides for a number of changes to Dairy Margin Coverage (DMC), which include

changing the definition of production history to remove the consideration of production at the time the dairy operation first registered to participate in the DMC program;

setting production history for the DMC program as the highest annual milk marketings for participating dairies during calendar year 2021, 2022, or 2023;

raising the coverage limit to the first 6 million pounds for both Tier I and Tier II premiums, from the first 5 million pounds; and

allowing producers to receive a 25% premium discount for a one-time premium election covering calendar years 2026-2031.

(Sec. 10102) This section reauthorizes, and extends funding for, the following programs through FY2031:

the Grassroots Source Water Protection Program,

the Voluntary Public Access and Habitat Incentive Program,

the Feral Swine Eradication and Control Pilot Program,

the Agriculture Conservation Easement Program (ACEP),

the Environmental Quality Incentives Program (EQIP),

the Conservation Stewardship Program (CSP),

the Rural Conservation Partnership Program (RCPP), and

the Watershed and Flood Prevention Operations Program.

This section also rescinds the unobligated funds that were provided for the ACEP, EQIP, CSP, and RCPP conservation programs as part of the Inflation Reduction Act of 2022. 

(Sec. 10103) This section directs USDA to conduct a program to encourage the accessibility, development, maintenance, and expansion of commercial export markets for U.S. agricultural commodities. This section also provides $285 million in mandatory funding for the program for FY2027 and each fiscal year thereafter.

(Sec. 10104) This section reauthorizes and provides funding for a number of USDA research initiatives.

For example, this section provides specified funds to the 1890 National Scholars Program for FY2026 for student scholarships. This National Institute of Food and Agriculture program provides grants to 1890 Institutions (i.e., historically Black colleges and universities that belong to the U.S. land-grant university system) for students who intend to pursue a career in the food and agricultural sciences.

This section provides the Specialty Crop Research Initiative with $175 million in mandatory funding for FY2026. Currently, the program is funded at $80 million for each fiscal year.

This section also provides funding for competitive grants to assist in the construction, alteration, acquisition, modernization, renovation, or remodeling of Agricultural Research Facilities.

(Sec. 10105) This section extends and modifies the Secure Rural Schools (SRS) program.

Under the existing SRS program, states and counties containing federal land may receive payments from the U.S. Forest Service or the Department of the Interior respectively. This section extends the authority of the Forest Service and Interior to (1) calculate and provide payments to states and counties under the SRS program through FY2026, and (2) initiate projects using funds provided by the program through FY2028. It also extends the deadline to obligate those funds until the end of FY2029.

This section rescinds specified unobligated funds that were provided by the Inflation Reduction Act of 2022 for (1) competitive grants to nonfederal forest landowners, and (2) state and private forestry conservation programs.

(Sec. 10106) This section reauthorizes, and extends funding for, the bioenergy program for advanced biofuels (i.e., Advanced Biofuel Payment Program) through FY2031. The program provides payments to fuel producers to support and expand production of advanced biofuels (i.e., not derived from corn starch).

(Sec. 10107) This section provides additional funding for the Plant Pest and Disease Management Disaster Prevention Program for FY2026 and each fiscal year thereafter.

This section provides additional funding for the Specialty Crop Block Grant Program for FY2026 and each fiscal year thereafter. Under the block grant program, USDA provides grants to the state departments of agriculture to enhance the competitiveness of specialty crops (i.e., fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops, including floriculture).

The section also reauthorizes, and extends funding for, organic production and market data initiatives through FY2031.

This section reauthorizes, and extends funding through FY2026, for USDA to carry out the modernization and improvement of international trade technology systems and data collection on imports of organically produced agricultural products accepted into the United States.

The section also reauthorizes the Organic Certification Cost Share Program, which provides cost share assistance to producers and handlers of agricultural products who are obtaining or renewing their certification under the National Organic Program.

This section reauthorizes, and extends funding through FY2026, for the multiple crop and pesticide use survey of farmers. The USDA Office of Pest Management Policy conducts this survey to collect data for risk assessment modeling and mitigation for an active ingredient.

(Sec. 10108) This section increases funding for the National Animal Health Laboratory Network. Specific increases in funding are also provided for the National Animal Disease Preparedness and Response Program and the National Animal Vaccine and Veterinary Countermeasures Bank.

This section extends and increases funding for the Sheep Production & Marketing Grant Program through FY2026. This program seeks to strengthen and enhance the production and marketing of sheep and sheep products in the United States.

This section also extends the

Pima Agriculture Cotton Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on cotton fabric that are higher than tariffs on certain apparel articles made of cotton fabric;

Agriculture Wool Apparel Manufacturers Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on wool fabric that are higher than tariffs on certain apparel articles made of wool fabric;

Wool Research and Promotion Program through FY2031, which provides grants to assist U.S. wool producers with improving the quality of wool and with developing and promoting the wool market; and

Emergency Citrus Disease Research and Development Trust Fund through FY2031, which funds a program that aims to bring together scientists to find scientifically sound and financially sustainable solutions to Huanglongbing (i.e., citrus greening, a bacterial disease spread by an insect that feeds on citrus).

TITLE II--COMMITTEE ON ARMED SERVICES

(Sec. 20001) This section provides additional funding for FY2025 to the Department of Defense (DOD) for

the Marine Corps Barracks 2030 initiative,

the Defense Health Program,

supplemental payments of Basic Allowance for Housing to military personnel, and

tuition assistance and child care assistance for members of the Armed Forces.

The section also provides statutory authority to extend from 14 to 21 days eligibility for Temporary Lodging Expense (TLE) for certain servicemembers undergoing a permanent change of station.

Additionally, the section temporarily increases authorized investment amounts and provides additional authorization for the acquisition or construction of certain military housing through private contracts.

(Sec. 20002) This section provides additional funding for FY2025 for the shipbuilding industrial base and various naval shipbuilding activities. 

(Sec. 20003) This section provides additional funding for FY2025 for the development of (1) space-based missile intercept capabilities, (2) military space-based sensors, and (3) the continued development of ground-based missile defense systems and related infrastructure.

(Sec. 20004) This section provides additional funding for FY2025 for various military weapon systems, including hypersonic, air-to-air, cruise, and anti-ship missiles.

(Sec. 20005) This section provides additional funding for FY2025 to expand the small, unmanned aerial system (UAS) industrial base, to advance the use of artificial intelligence in these and other systems, and to support the integration of commercial developments in military technology.

The section also provides additional funding to finance loans and loan guarantees by the DOD Office of Strategic Capital.

(Sec. 20006) This section provides additional funding for FY2025 to replace current business systems, deploy automation, and deploy artificial intelligence to accelerate audits of DOD financial statements.

(Sec. 20007) This section provides additional funding for FY2025 to (1) modernize the capabilities of fighter, transport, and other military aircraft; (2) prevent the retirement of certain fighter aircraft (e.g., F-22); and (3) produce next-generation manned and unmanned aircraft.

(Sec. 20008) This section provides additional funding for FY2025 for nuclear defense resources and nuclear forces development and production.

(Sec. 20009) This section provides additional funding for FY2025 for (1) various military exercises and infrastructure in the Indo-Pacific region, and (2) classified military space-superiority programs.

(Sec. 20010) This section provides additional funding for FY2025 to enhance and modernize (1) military depots and shipyards, and (2) Special Operations Command (SOCOM) equipment. 

(Sec. 20011) This section provides additional funding for FY2025 to support border operations, including deployment of military personnel.

(Sec. 20012) This section provides additional funding for FY2025 for the DOD Office of Inspector General to monitor the activities for which funding is provided under this title.

(Sec. 20013) This section authorizes each military department to use funding under this title for military construction, land acquisition, and military family housing. Each military department must submit a detailed spending plan to Congress.

(Sec. 20014) This section requires DOD and the National Nuclear Security Administration to submit a spending plan and subsequent expenditure reports to Congress for funding provided under this title.

(Sec. 20015) This section prohibits any agreements that would require the payment of any funds provided under this title after September 30, 2034.

TITLE III--COMMITTEE ON EDUCATION AND WORKFORCE

This title makes various changes to higher education, particularly to the federal student loan system.

Subtitle A--Student Eligibility

This subtitle revises eligibility for federal student aid and the amount of aid students may receive.

(Sec. 30001) This section revises the citizenship categories that qualify a student for federal student aid. The section specifies eligibility for certain nationals of Cuba and individuals who lawfully reside in the United States in accordance with a Compact of Free Association (i.e., individuals from the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau).

(Sec. 30002) This section changes the way student eligibility for need-based federal aid is calculated by basing the calculation on the median cost of attendance by program of study from all institutions of higher education (IHEs) that offer such program of study rather than the cost of attendance of a student’s specific program as determined by their IHE.

The section also restores an exemption for certain family farms and small businesses on the Free Application for Federal Student Aid (FAFSA) form. This exemption applies to the net worth of (1) a family farm on which the family resides, or (2) a small business with not more than 100 full-time or full-time equivalent employees that is owned and controlled by the family.

Subtitle B--Loan Limits

This subtitle makes various changes to federal student loans. 

(Sec. 30011) This section terminates the ability of undergraduate students to receive subsidized loans and terminates the ability of graduate or professional students to receive Direct PLUS Loans beginning on July 1, 2026. It provides an exception (of up to three academic years) for a student who is already enrolled in a program of study and received a loan for the program. 

The section also places certain restrictions on Parent PLUS Loans. In particular, parents may only borrow a Parent Plus Loan if the dependent student has already taken out their maximum annual unsubsidized loan amount. 

The section also establishes new annual and aggregate loan limits for borrowers. For example, the section sets an overall aggregate lifetime borrowing limit of $200,000 for any single borrower across federal loan types (except for Federal Direct PLUS Loans and Parent PLUS Loans).

The section allows IHEs to set lower loan limits.

Subtitle C--Loan Repayment

This subtitle revises loan repayment options for federal student loans.

(Sec. 30021) This section terminates all current student loan repayment plans for loans disbursed on or after July 1, 2026.

The Department of Education (ED) may only offer borrowers two options for repayment of federal student loans: a standard repayment plan (with the length of the repayment term determined by the total amount borrowed) and an income-based repayment plan (to be known as the Repayment Assistance Plan).

(Sec. 30022) This section eliminates economic hardship and unemployment deferments beginning on July 1, 2025. It also reduces the total period a borrower may be in forbearance.

A borrower who is serving in a medical or dental internship or residency program may be eligible for a forbearance in which no interest accrues for the first four 12-month intervals. However, interest does accrue for any subsequent 12-month interval. 

(Sec. 30023) This section allows borrowers to rehabilitate a defaulted loan twice (currently, only once). However, beginning on July 1, 2025, the borrower must pay a minimum payment amount of $10.

(Sec. 30024) This section allows payments under the new Repayment Assistance Plan to count as qualifying payments for purposes of the Public Service Loan Forgiveness (PSLF) program.

The section also specifies that a public service job, for purposes of the PSLF program, does not include time served in a medical or dental internship or residency program by an individual who, as of June 30, 2025, has not borrowed a Federal Direct PLUS Loan or a Federal Direct Unsubsidized Stafford Loan. 

(Sec. 30025) This section provides FY2025 and FY2026 funding to ED for administrative costs.

Subtitle D--Pell Grants

This subtitle makes changes to Pell Grants.

(Sec. 30031) This section requires foreign income that is exempt from taxation or foreign income for which an individual receives a foreign tax credit to be included in the adjusted gross income calculation for purposes of calculating eligibility for Pell Grants.

Students with a student aid index that equals or exceeds twice the amount of the total maximum Pell Grant are ineligible for Pell Grants, regardless of their adjusted gross income. 

The section also increases the number of credits needed to qualify for full-time enrollment in order to receive Pell Grants.

The section prohibits a student who is enrolled less than half time from receiving a Pell Grant.

The section’s changes take effect beginning on July 1, 2026.

(Sec. 30032) This section requires ED to award Workforce Pell Grants to students enrolled in eligible workforce programs. Eligible programs are those that provide at least 150 clock hours (but less than 600 clock hours) of instruction during a minimum of 8 weeks (but less than 15 weeks).

The section’s changes take effect beginning on July 1, 2026.

(Sec. 30033) This section increases funding for Pell Grants for FY2026-FY2028.

Subtitle E--Accountability

This subtitle creates a new risk-sharing framework for IHEs.

(Sec. 30041) This section requires IHEs participating in federal student loan programs to make annual risk-sharing payments based on the nonrepayment balance of student loan cohorts. 

The section also outlines penalties for late or missing payments. For example, the section prohibits an IHE from offering Direct Loans to students if the IHE has not made a payment within 12 months of receiving a notification from ED. The section also prohibits an IHE from offering Direct Loans or awarding Pell Grants if the IHE has not made a risk-sharing payment in 18 months. If an IHE fails to make a payment within two years, the IHE may not participate in federal student loan programs for a minimum of 10 years.

The section’s changes take effect beginning with award year 2028-2029.

(Sec. 30042) This section establishes the Promoting Real Opportunities to Maximize Investments and Savings in Education (PROMISE) grant program. To receive a PROMISE grant, an IHE must meet maximum total price guarantee requirements (as outlined in the section). These grants may be used to carry out activities related to postsecondary affordability, access, and student success.

Subtitle F--Regulatory Relief

This subtitle repeals several rules and regulations related to higher education.

(Sec. 30051) This section repeals the 90/10 rule, which requires proprietary (i.e., for profit) IHEs participating in federal student aid programs to derive at least 10% of their tuition and fee revenue from nonfederal funds.

The section also removes references to gainful employment within the Higher Education Act of 1965.

The section repeals ED regulations pertaining to closed school discharges of qualifying federal student loans and borrower defense to repayment. These repealed regulations are replaced with those regulations that were in effect on July 1, 2020.

The section also prohibits ED from implementing any rule, regulation, policy, or executive action regarding these regulations unless explicitly authorized by an act of Congress.

Subtitle G--Limitation on Authority

This subtitle limits the authority of ED to propose or issue regulations and executive actions related to federal student aid programs.

(Sec. 30061) This section prohibits ED from issuing a proposed rule, final regulation, or executive action if ED determines that the rule, regulation, or action (1) is economically significant, and (2) would result in an increase in a subsidy cost. Economically significant refers to a regulation or executive action that is likely to (1) have an annual effect on the economy of $100 million or more; or (2) adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or state, local, or tribal governments or communities.

TITLE IV--ENERGY AND COMMERCE

Subtitle A--Energy

(Sec. 41001) This section rescinds the unobligated funds that were provided by the Inflation Reduction Act for various energy programs, such as State-Based Home Energy Efficiency Contractor Training Grants, the Advanced Technology Vehicles Manufacturing Loan Program, and the Tribal Energy Loan Guarantee Program. 

(Sec. 41002) This section establishes fees for certain natural gas exports and imports.

(Sec. 41003) This section provides funding to the Department of Energy (DOE) for administrative expenses for carrying out loan guarantees related to liquefied natural gas pipeline projects from Alaska. 

(Sec. 41004) This section allows for expedited permitting for certain natural gas projects. 

(Sec. 41005) This section establishes and provides funding for a De-risking Compensation Program that provides compensation for unrecoverable losses associated with energy projects that, for example, have had federal approval revoked.

(Sec. 41006) This section provides funding for the Strategic Petroleum Reserve (SPR). It also repeals a provision that requires DOE to draw down and sell a specified quantity of crude oil from the SPR during FY2026-FY2027. 

Subtitle B--Environment

Part 1--Repeals and Rescissions

This part repeals certain programs established under the Inflation Reduction Act of 2022 and rescinds certain funds provided under the act.

(Sec. 42101) This section repeals a program under which the Environmental Protection Agency (EPA) provides (1) grants and rebates to replace certain medium-duty vehicles (e.g., school buses) and heavy-duty vehicles (e.g., garbage trucks) with zero-emission vehicles, and (2) awards to replace such vehicles in communities located in areas designated as nonattainment areas under the Clean Air Act (e.g., areas that do not meet national air quality standards).

(Sec. 42102) This section repeals a program under which the EPA provides incentives to reduce air pollution at certain ports. Under the program, the EPA awards rebates and grants to port authorities and other eligible entities to (1) purchase or install equipment and technology to reduce pollution at ports, (2) conduct any relevant planning or permitting in connection with those purchases, and (3) develop climate action plans. The program also provides additional funding for rebates and grants for carrying out such activities in ports located in areas designated as nonattainment areas under the Clean Air Act.

(Sec. 42103) This section repeals the Greenhouse Gas Reduction Fund, which provides financial and technical assistance to states and other eligible recipients to help enable low-income and disadvantaged communities carry out activities to reduce greenhouse gas emissions.

(Sec. 42104) This section repeals an EPA program that gives grants, rebates, and loans under the Energy Policy Act of 2005 to identify and reduce diesel emissions resulting from goods movement (e.g., distribution of raw materials and consumer products) facilities as well as vehicles servicing those facilities in low-income and disadvantaged communities.

(Sec. 42105) This section repeals funding for a variety of programs that provide incentives to monitor and reduce air pollution and greenhouse gases, including funding for grants and other activities to

deploy, integrate, support, and maintain stations, technology, and other methods to monitor air toxins;

expand the national ambient air quality monitoring network with new multi-pollutant monitoring stations;

replace, repair, operate, and maintain existing monitors;

deploy, integrate, and operate air quality sensors in low-income and disadvantaged communities;

address emissions from wood heaters;

monitor emissions of methane;

conduct research and development related to the prevention and control of air pollution; and

encourage states to adopt and implement greenhouse gas and zero-emission standards for mobile sources.

(Sec. 42106) This section rescinds specified funds for grants and other activities to monitor and reduce greenhouse gas emissions and other air pollutants at schools in low-income and disadvantaged communities. Further, it rescinds funding for technical assistance to schools in low-income and disadvantaged communities to (1) address environmental issues; (2) develop school environmental quality plans that include standards for school building, design, construction, and renovation; and (3) identify and mitigate ongoing air pollution hazards.

(Sec. 42107) This section rescinds funding for a low emissions electricity program that provides education, technical assistance, and outreach to reduce greenhouse gas emissions that result from domestic electricity generation and use.

(Sec. 42108) This section rescinds funding provided under the EPA’s Renewable Fuel Standard Program for

the development and establishment of tests and protocols regarding the environmental and public health effects of a fuel or fuel additive;

the collection and analysis of data to update applicable regulations, guidance, and procedures for determining the amount of greenhouse gas emissions from a fuel over the fuel's life cycle (e.g., production, processing, transport);

the review, analysis, and evaluation of the impacts of all transportation fuels on the public as well as on low-income and disadvantaged communities; and

supporting investments in advanced biofuels.

(Sec. 42109) This section rescinds funding to implement the American Innovation and Manufacturing Act of 2020, which directs the EPA to address hydrofluorocarbons (HFC). HFCs are greenhouse gases that are used in applications such as air conditioning, refrigeration, fire suppression, and aerosols.

(Sec. 42110) This section rescinds funding to update the EPA's Integrated Compliance Information System and any associated systems, necessary information technology infrastructure, or public access software tools to ensure access to compliance data and related information. Further, it also rescinds funding for grants to states, Indian tribes, and air pollution control agencies to update their systems to ensure communication with EPA’s system. Finally, it rescinds funding to the EPA for updating inspection software or acquiring such software or devices on which to run the software.

(Sec. 42111) This section rescinds funding for the EPA to support (1) enhanced standardization and transparency of corporate climate action commitments and plans to reduce greenhouse gas emissions; (2) enhanced transparency regarding progress toward meeting such commitments and implementing such plans; and (3) progress toward meeting such commitments and implementing such plans.

(Sec. 42112) This section repeals the EPA’s program that supports the development, enhanced standardization and transparency, and reporting criteria for environmental product declarations for construction materials and products. The declarations must include measurements of the greenhouse gases associated with all the relevant stages of production, use, and disposal of the construction materials and products.

(Sec. 42113) This section repeals the methane emissions reduction program under which the EPA provides financial incentives to encourage the reporting of greenhouse gases, the monitoring of methane, and the reduction of methane emissions from petroleum and natural gas systems.

(Sec. 42114) This section repeals the EPA’s program that awards grants to states, air pollution control agencies, municipalities, and Indian tribes for developing and implementing plans to reduce greenhouse gas air pollution.

(Sec. 42115) This section rescinds certain funding relating to the EPA providing efficient, accurate, and timely reviews, including

developing efficient, accurate, and timely reviews for permitting and approval processes through the hiring and training of personnel;

developing programmatic documents;

procuring technical or scientific services for reviews;

developing environmental data or information systems;

engaging stakeholders;

purchasing new equipment for environmental analysis; and

developing geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement.

(Sec. 42116) This section repeals a program under which the EPA identifies and labels construction materials and products that have substantially lower levels of greenhouse gas emissions associated with all the relevant stages of production, use, and disposal of the materials and products.

(Sec. 42117) This section repeals funding to the EPA for environmental and climate justice block grants that benefit disadvantaged communities.

Part 2--Repeal of EPA Rules Relating to Greenhouse Gas and Multi-Pollutant Emissions Standards

This part nullifies the final rule issued by the EPA titled 
Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards
 and published on December 30, 2021. The rule established more stringent greenhouse gas emission standards for light-duty vehicles (i.e., passenger cars and light trucks) for 2023 and later model years.

This part also nullifies the EPA’s final rule titled 
Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles
 and published on April 18, 2024. The rule established and modified requirements for certain light-duty or medium-duty vehicles (e.g., cars, trucks, and sports utility vehicles that are under a certain weight), including requirements related to (1) emission standards, such as a greenhouse gas emission standard; (2) the durability of batteries for certain electric and hybrid vehicles; and (3) measuring fuel economy.

Part 3--Repeal of NHTSA Rules Relating to CAFE Standards

This part nullifies the final rule issued by the National Highway Traffic Safety Administration (NHTSA) titled 
Corporate Average Fuel Economy Standards for Model Years 2024-2026 Passenger Cars and Light Trucks
 and published on May 2, 2022. Under the rule, NHTSA increased Corporate Average Fuel Economy (CAFE) standards for passenger cars and light trucks for model years 2024-2026.

This part also nullifies NHTSA’s final rule titled 
Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027 and Beyond and Fuel Efficiency Standards for Heavy-Duty Pickup Trucks and Vans for Model Years 2030 and Beyond
 and published on June 24, 2024. Under the rule, NHTSA finalized CAFE standards for passenger cars and light trucks that increase at a rate of 2% per year for passenger cars in model years 2027-2031, 0% per year for light trucks in model years 2027-2028, and 2% per year for light trucks in model years 2029-2031.

Subtitle C--Communications

Part 1--Spectrum Auctions

(Sec. 43101) This section renews the authority of the Federal Communications Commission (FCC) to auction licenses for the use of radio frequency spectrum and requires certain frequencies to be reallocated and auctioned on an exclusive, licensed basis for fixed and mobile broadband.

Specifically, this section reauthorizes the FCC’s use of competitive bidding (i.e., auctions) to grant licenses for the use of specific frequencies through September 30, 2034. (The FCC’s auction authority must be renewed by Congress periodically. It expired on March 9, 2023, and has not been renewed.)

Further, within two years of this title’s enactment, the National Telecommunications and Information Administration (NTIA) must identify at least 600 megahertz of spectrum at frequencies between 1.3 and 10 gigahertz for reallocation to nonfederal use on an exclusive, licensed basis. (Certain frequencies used primarily by the Department of Defense and unlicensed devices, including Wi-Fi, are excluded from auction eligibility.) To the extent that the identified spectrum is currently assigned to federal users, the NTIA must withdraw or modify such assignments. 

The FCC must conduct one or more auctions of the identified spectrum for use on an exclusive, licensed basis for mobile broadband, fixed broadband, or a combination thereof. The FCC must complete auctioning at least 200 megahertz of the identified spectrum within three years of this title’s enactment, and must complete auctioning any remaining spectrum within six years of enactment.

Part 2--Artificial Intelligence and Information Technology Modernization

(Sec. 43201) This section prohibits states and localities from limiting, restricting, or otherwise regulating artificial intelligence (AI) models, AI systems, or automated decision systems entered into interstate commerce for 10 years. This prohibition does not apply to any state law or regulation

the primary purpose and effect of which is to remove legal impediments to, facilitate the deployment or operation of, or consolidate administrative procedures in a manner that facilitates the adoption of AI models, AI systems, or automated decision systems;

that does not impose substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirements on AI models, AI systems, or automated decision systems, unless such requirements are imposed under federal law or are generally applicable to other models and systems that perform similar functions;

that imposes only fees and bonds that are reasonable and cost-based and treat other models and systems that perform similar functions in the same manner as AI models, AI systems, and automated decision systems; or

the violation of which carries a criminal penalty. 

This section also provides specified funds to the Department of Commerce to modernize and secure federal information technology systems through the replacement of some existing systems and the deployment of commercial AI and automation technologies. Specifically, Commerce must use funds appropriated under this section to (1) replace or modernize legacy business systems with commercial AI and automated decision systems; (2) facilitate the adoption of AI models that increase efficiency and service delivery; and (3) improve the cybersecurity of federal information technology systems through modernized architecture, automated threat detection, and integrated AI solutions. 

Under this section, AI is defined as a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. An AI model is a software component of an information system that implements AI technology and uses computational, statistical, or machine-learning techniques to produce outputs from a defined set of inputs. An AI system is any data system, hardware, tool, or utility that operates in whole or in part using AI. An automated decision system is any computational process derived from machine learning, statistical modeling, data analytics, or AI that issues a simplified output (e.g., a score, classification, or recommendation) to materially influence or replace human decision making.

Subtitle D--Health

Part 1--Medicaid

Subpart A--Reducing Fraud and Improving Enrollment Processes

(Sec. 44103) This section requires the Centers for Medicare & Medicaid Services (CMS) to establish a centralized system for states to check whether enrollees are simultaneously enrolled in Medicaid or the Children’s Health Insurance Program (CHIP) in multiple states. 

Beginning no later than 2027, states must regularly obtain the addresses of Medicaid and CHIP enrollees from specified authorized sources. Beginning no later than FY2030, states must report on at least a monthly basis the Social Security numbers of enrollees to the CMS' newly established system. The CMS must notify states on at least a monthly basis of individuals who are enrolled in multiple states so that states may take appropriate action. 

The section provides funds for FY2026 and FY2029 for the CMS to establish and maintain the new system, respectively.

(Sec. 44104) This section requires state Medicaid programs to check, beginning in 2028, the Social Security Administration's Death Master File on at least a quarterly basis to determine whether Medicaid enrollees are deceased.

(Sec. 44105) This section requires state Medicaid programs to check, beginning in 2028, as part of the provider enrollment and reenrollment process, whether providers were terminated from participating in the Medicare program, any other state Medicaid program, or CHIP using certain databases (e.g., the Data EXchange system). The section requires states to continue to check these databases on at least a monthly basis after providers are enrolled.

(Sec. 44106) This section provides statutory authority for the requirement that state Medicaid programs check, as part of the provider enrollment and reenrollment process, whether providers are deceased through the Social Security Administration's Death Master File. Beginning in 2028, the section requires states to continue to check this database on at least a quarterly basis after providers are enrolled.

(Sec. 44108) This section requires state Medicaid programs to redetermine every six months, beginning on December 31, 2026, the eligibility of individuals who are enrolled in Medicaid as part of the Medicaid expansion population under the Patient Protection and Affordable Care Act. (The act allows states to extend Medicaid coverage to all adults under the age of 65 with incomes of up to 138% of the federal poverty level, including able-bodied adults without dependent children.)

(Sec. 44111) This section reduces by 10%, beginning in FY2028, the enhanced federal matching rate for the Medicaid expansion population in states that provide comprehensive health benefits or financial assistance for purchasing health benefits to individuals (other than children or pregnant women) who are not lawfully residing in the United States, regardless of the source of the benefits or financial assistance.

Subpart B--Preventing Wasteful Spending

(Sec. 44123) This section provides funds through FY2033 for the CMS to survey retail and non-retail pharmacies (e.g., mail-order pharmacies) to determine average prices of covered outpatient drugs under Medicaid. Pharmacies that fail to participate in the surveys are subject to civil penalties.

The section additionally provides funds for FY2026 for the Office of the Inspector General of the Department of Health and Human Services (OIG) to study the results of the survey and report accordingly to Congress.

(Sec. 44124) This section requires pass-through pricing models, and prohibits spread-pricing, for payment arrangements with pharmacy benefit managers (PBMs) under Medicaid.

(Sec. 44125) This section prohibits federal payment under Medicaid or CHIP for specified gender transition procedures. The section defines these procedures to mean those that are intended to change the body of an individual to no longer correspond to the individual's biological sex (male or female), including specified surgeries, implants, and medications (e.g., hormones).

The section excludes procedures that are provided to an individual under the age of 18 with the consent of a parent or legal guardian and that are intended to (1) rectify early puberty, genetic disorders, or chromosomal abnormalities; (2) reverse prior gender transition procedures; or (3) prevent imminent death or impairment of a major bodily function.

(Sec. 44126) This section prohibits federal Medicaid payment for 10 years to nonprofit health care providers that serve predominantly low-income, medically underserved individuals (i.e., essential community providers) if the provider (1) primarily furnishes family planning services, reproductive health, and related care; (2) offers abortions in cases other than that of rape, incest, or life-threatening conditions for the woman; and (3) in FY2024, received federal and state Medicaid payments totaling more than $1 million.

Subpart C--Stopping Abusive Financing Practices

(Sec. 44131) This section requires states that had not chosen to expand Medicaid pursuant to the Patient Protection and Affordable Care Act prior to March 11, 2021, to do so by January 1, 2026, in order to receive the corresponding enhanced federal matching rate.

(Sec. 44132) This section generally precludes states from instituting new or otherwise increasing Medicaid provider taxes. Specifically, the section precludes the revenue from any Medicaid provider tax that is newly imposed or increased by a state from qualifying for federal matching payments. 

(Sec. 44133) This section provides funds through FY2033 for the CMS to revise regulations so as to limit state-directed payments for inpatient hospital services, outpatient hospital services, nursing facility services, or qualified practitioner services at an academic medical center under Medicaid managed care contracts to the payment rate for services under Medicare, rather than the average commercial rate. For states that cover the Medicaid expansion population, payment is limited to 100% of the Medicare rate; for other states, payment is limited to 110% of the Medicare rate.

Subpart D--Increasing Personal Accountability

(Sec. 44141) This section requires, beginning not later than December 31, 2026 (or earlier, at the option of the state), individuals who are eligible for Medicaid as part of the Medicaid expansion population to engage in community service, work, or other activities in order to qualify for Medicaid.

Specifically, the section requires these individuals to, on a monthly basis, (1) work at least 80 hours, (2) complete at least 80 hours of community service, (3) participate in a work program for at least 80 hours, (4) be enrolled at least half-time in an educational program, or (5) engage in any combination thereof for a total of at least 80 hours. Individuals may also qualify if they have a monthly income that is at least as much as the equivalent of minimum wage multiplied by 80 hours.

Individuals who are applying for Medicaid must demonstrate compliance with these requirements for one month or more (as determined by the state) consecutively and immediately prior to filing an application; individuals who are already enrolled in Medicaid must demonstrate compliance for one month or more (as determined by the state), whether or not consecutive, during the period between the individual’s last eligibility determination and the next scheduled eligibility determination. 

States must verify an individual’s compliance upon a determination or redetermination of eligibility but may also choose to verify compliance more frequently. States may not waive the new requirements. However, states may choose to provide an exception for individuals experiencing short-term hardships (e.g., hospitalization).

The section excludes certain individuals from these requirements, including those with serious medical conditions or dependent children. 

The section provides funds for FY2026 for states and the CMS to implement these requirements.

(Sec. 44142) This section requires, beginning in FY2029, states to institute cost-sharing requirements for individuals who are eligible for Medicaid as part of the Medicaid expansion population and whose family income exceeds the federal poverty line. Cost sharing may not exceed $35 for an item or service; total cost sharing for all individuals in a family may not exceed 5% of the family’s income. 

The requirements do not apply to services for which cost sharing is already prohibited (e.g., emergency services) or to primary care, mental health, or substance use disorder services. States may allow providers to condition the provision of services upon the payment of any required cost sharing.

Part 2--Affordable Care Act

(Sec. 44201) This section modifies enrollment, coverage, and other aspects of health insurance exchanges beginning in 2026, including prohibiting the mandate of special enrollment periods based on income, requiring verification of income and other eligibility requirements prior to certain enrollments, and prohibiting coverage of gender transition procedures as an essential health benefit.

(Sec. 44202) This section provides funds beginning in 2026 for payments to qualified health plans for purposes of reducing cost sharing for certain individuals with incomes between 100% and 400% of the federal poverty line. Plans that provide coverage for abortions in cases other than that of rape, incest, or life-threatening conditions for the mother are not eligible for these funds.

Part 3--Improving Americans’ Access to Care

(Sec. 44301) This section modifies certain provisions under the Medicare Drug Price Negotiation Program with respect to orphan drugs.

The Medicare Drug Price Negotiation Program requires the CMS to negotiate the prices of certain prescription drugs under Medicare beginning in 2026. Among other requirements, drugs must have had market approval for at least 7 years (for drug products) or 11 years (for biologics) to qualify for negotiation. The program does not apply to orphan drugs that are approved to treat only one rare disease or condition.

The bill modifies these provisions so as to exclude any period in which a drug was an orphan drug from market approval calculations. It also excludes orphan drugs that are approved to treat more than one rare disease or condition from the program. The changes take effect in 2028.

(Sec. 44302) This section requires states to establish a process through which qualifying out-of-state providers may temporarily treat children under Medicaid and CHIP without undergoing additional screening requirements. 

Specifically, states must establish a process through which qualifying out-of-state providers may enroll for five years as participating providers to treat individuals under the age of 21 without undergoing additional screening requirements.

A qualifying out-of-state provider (1) must not have been excluded or terminated from participating in a federal health care program or state Medicaid program; and (2) must have been successfully enrolled in Medicare or a state Medicaid program based on a determination that the provider posed a limited risk of fraud, waste, or abuse.

The section’s changes take effect four years after enactment.

(Sec. 44305) This section prohibits PBMs under the Medicare prescription drug benefit or Medicare Advantage from receiving any income for their services other than bona fide service fees. It also establishes reporting requirements for PBMs relating to the prices of prescription drugs.

Specifically, beginning in 2028, PBMs may not receive any income other than flat, bona fide service fees. PBMs must turn over any excess amounts they receive to prescription drug plan (PDP) sponsors; PDP sponsors must turn over these amounts to the CMS. In addition, PBMs must report to PDP sponsors and to the CMS an itemized list of prescription drugs that were dispensed during the previous year and related data about costs, claims, affiliated pharmacies, and other specified information. The section provides funds for FY2025 for the CMS and the OIG to implement these requirements.

TITLE V--COMMITTEE ON FINANCIAL SERVICES

(Sec. 50001) This section rescinds unobligated funds from the Green and Resilient Retrofit Program under the Department of Housing and Urban Development (HUD). The program provides funding for energy efficiency improvements in multifamily properties receiving HUD assistance. 

(Sec. 50002) This section transfers the duties of the Public Company Accounting Oversight Board to the Securities and Exchange Commission. The board is a nonprofit corporation that regulates the audits of publicly traded companies.

(Sec. 50003) This section reduces funding for the Consumer Financial Protection Bureau (CFPB) and makes such funding subject to review by Congress.

(Sec. 50004) This section requires the CFPB to transfer excess funds in the Civil Penalty Fund to the general fund of the Treasury after paying direct victims of consumer financial law violations. Currently, the CFPB uses such funds for consumer education and financial literacy programs. 

(Sec. 50005) This section limits the amounts collected by the Office of Financial Research for the Financial Research Fund.

TITLE VI--COMMITTEE ON HOMELAND SECURITY

(Sec. 60001) This section provides funding to U.S. Customs and Border Protection (CBP) for construction, installation, or improvement to barriers; access roads; detection technology; invasive plant species eradication; and expenses for facilities and checkpoints along U.S. borders. 

(Sec. 60002) This section provides funding for CBP personnel, bonuses, facilities, and fleet vehicles.

(Sec. 60003) This section provides funding for CBP inspection and surveillance equipment, rapid air and marine response capabilities, vetting, expansion of criminal history databases, and activities to prevent drug trafficking.

(Sec. 60004) This section provides funding to the Department of Homeland Security to reimburse states for costs associated with actions taken on or after January 21, 2021, to enforce immigration laws and to prevent the unlawful entry into the United States of persons and contraband. 

(Sec. 60005) This section provides funding to the Federal Emergency Management Agency (FEMA) to reimburse state and local law enforcement for extraordinary costs associated with protecting a residence of the President. 

(Sec. 60006) This section provides funding to FEMA (1) to assist state and local authorities to detect, identify, track, or monitor unmanned aircraft systems; (2) for security, planning, and other costs related to the 2026 FIFA World Cup; (3) for security, planning, and other costs related to the 2028 Olympic Games and 2028 Paralympic Games; and (4) for the Operation Stonegarden grant program.

TITLE VII--COMMITTEE ON THE JUDICIARY

Subtitle A--Immigration Matters

Part 1--Immigration Fees

This part establishes additional or increased fees for various immigration programs and procedures.

These fees include those required for

applications for asylum,

employment authorizations for asylees, parolees, and individuals granted temporary protected status,

individuals paroled into the United States,

individuals applying for special immigrant juvenile status,

individuals applying for Temporary Protected Status, and

sponsoring the placement of an unaccompanied child.

This part also establishes various fees for specified judicial and adjudicative filings, including

filing in immigration court an application for waiver of grounds of inadmissibility,

filing an appeal of a decision of an immigration judge or a DHS officer, and

a practitioner filing an appeal in a disciplinary case. 

Part 2--Use of Funds

This part provides funding for various immigration agencies and offices for purposes of immigration enforcement, removal, maintenance of facilities, and program operations. This includes the Executive Office for Immigration Review, U.S. Immigration and Customs Enforcement, U.S. Customs and Border Protection, the Office of Refugee Resettlement, and the performance of immigration officer functions by state officers and employees.

(Sec. 70120) This section provides funding for the U.S. Secret Service.

(Sec. 70121) This section provides funding for the Department of Justice (DOJ) to combat drug trafficking. 

Subtitle B--Regulatory Matters

(Sec. 70200) This section provides funding to the Office of Management and Budget to revise regulatory processes and to analyze and review rules issued by

the Department of Education,

the Department of Energy,

the Department of Health and Human Services,

DHS,

DOJ,

the Consumer Financial Protection Bureau, and

the Environmental Protection Agency.

Subtitle C--Other Matters

(Sec. 70300) This section prohibits DOJ from entering into or enforcing a settlement agreement on behalf of the United States that provides for a payment to any person or entity other than the United States. The section provides exceptions to allow payments that (1) remedy actual harm (including to the environment) caused by the party making the payment, or (2) constitute a payment for services rendered in connection with the case.

The DOJ Office of the Inspector General must report annually on any settlement agreements that violate the section’s requirements.

(Sec. 70301) This section expands the definition of solicitation of orders to include business activities that serve an independently valuable business function apart from the solicitation of orders for purposes of the limitation on a state’s authority to impose a net income tax on an out-of-state seller.

Under current law, a state is prohibited from imposing a net income tax on income derived from within the state from interstate commerce if the only business activity within the state is the solicitation of orders for the sale of tangible personal property, provided that the orders are approved (or rejected) and filled by shipment or delivery from outside of the state. Further, the Supreme Court has held that the term solicitation of orders includes (1) activities that are strictly essential to making requests for purchases, and (2) ancillary activities that serve no independent business function apart from their connection to requests for purchases.

Under this section, the definition of solicitation of orders is expanded to include business activities that facilitate the solicitation of orders even if such business activities serve an independently valuable business function apart from the solicitation.

(Sec. 70302) This section limits the ability of U.S. courts to enforce a citation for contempt for failure to comply with an injunction or temporary restraining order. Specifically, if no security was given when the injunction or order was issued, the citation of contempt may not be enforced. This limitation applies to injunctions or orders issued before, on, or after the date of enactment.

TITLE VIII--COMMITTEE ON NATURAL RESOURCES

Subtitle A--Energy and Mineral Resources

Part 1--Oil and Gas

(Sec. 80101) This section establishes requirements about leasing onshore federal land for oil and natural gas development, including by directing the Department of the Interior to immediately resume onshore quarterly lease sales. 

(Sec. 80102) This section reinstates noncompetitive leasing procedures under the Mineral Leasing Act to require lands that do not receive bids during an oil and gas lease sale, or where the highest bid is less than the national minimum, to be offered within 30 days for noncompetitive leasing and remain available for leasing for a two-year period.

(Sec. 80103) This section directs Interior to approve applications that allow for the commingling of production from two or more sources (e.g., the area of an oil and gas lease and nonfederal property) before production reaches the point of royalty measurement if a fee of $10,000 is paid and other conditions are met.

It also directs Interior to establish a permit-by-rule process under which leaseholders may obtain approval to drill for oil and gas on federal land if the leaseholder pays a $5,000 fee and complies with other established regulations.

(Sec. 80104) This section prohibits Interior from requiring a permit to drill for an oil and gas lease under the Mineral Leasing Act if the leaseholder pays a fee of $5,000 and criteria related to nonfederal ownership of the land or minerals are met.

(Sec. 80105) This section decreases the minimum royalty rates for onshore and offshore development of oil and gas on federal lands. 

Part 2--Geothermal

(Sec. 80111) This section directs Interior to hold geothermal lease sales annually and conduct replacement sales for canceled or delayed lease sales.

(Sec. 80112) This section modifies royalty provisions under the Geothermal Steam Act of 1970, including by stating that geothermal facilities on the same geothermal lease are treated as separate facilities with respect to royalty payment.

Part 3--Alaska

(Sec. 80121) This section modifies provisions concerning the production of oil and gas from the Arctic National Wildlife Refuge (ANWR) in Alaska, including by providing for the reissuance of certain leases for energy development. 

The section also directs Interior to conduct at least four lease sales under the Coastal Plain Oil and Gas Leasing Program in the ANWR not later than seven years after enactment of the bill. Additionally, it outlines how the revenues derived from the program must be divided between Alaska and the federal government.

Part 4--Coal

(Sec. 80141) This section directs Interior to publish an environmental review, hold certain coal lease sales, and issue the leases within 90 days for any pending lease applications as well as within 90 days of submission for new applications.

Interior must also make available for lease known recoverable coal resources of at least 4 million additional acres on certain federal land in western states.

(Sec. 80142) This section nullifies Interior's Secretarial Order 3338, which placed a hold on most new federal coal leases until the BLM completes a comprehensive review of the federal coal program.

(Sec. 80143) This section temporarily decreases the royalty rate for coal leases on federal lands.

(Sec. 80144) This section authorizes all federal coal reserves leased under Federal Coal Lease MTM 97988 to be mined in accordance with the Bull Mountains Mining Plan Modification.

Part 5--NEPA

(Sec. 80151) This section modifies the environmental review process under the National Environmental Policy Act of 1969 (NEPA), including by (1) allowing a project subject to NEPA review to opt to pay a fee for the preparation and completion of an environmental assessment (EA) or environmental impact statement (EIS) by certain deadlines, and (2) eliminating administrative and judicial review of the adequacy of such EA or EIS.

(Sec. 80152) This section rescinds certain funding for the Council on Environmental Quality, including funding for (1) collecting data related to environmental and climate issues, (2) tracking disproportionate burdens and cumulative impacts, and (3) supporting efforts to ensure that any mapping or screening tool is accessible to community-based organizations and community members. 

Part 6--Miscellaneous

(Sec. 80161) This section establishes a filing fee for protests of oil and gas lease sales.

Part 7--Offshore Oil and Gas Leasing

(Sec. 80171) This section directs Interior to hold a specified number of offshore oil and gas lease sales on certain submerged lands of the Outer Continental Shelf (OCS), including areas in the Gulf of America and the Cook Inlet Planning Area in Alaska.

(Sec. 80172) This section directs Interior to approve operator requests to commingle production from multiple reservoirs within a single wellbore completed on the OCS of the Gulf of America unless conclusive evidence shows the practice would be unsafe or reduce the recovery of oil.

(Sec. 80173) This section modifies the Gulf of Mexico Energy Security Act of 2006 to raise the cap on the distribution of OCS revenues from $500 million to $650 million for FY2026-FY2034.

Part 8--Renewable Energy

(Sec. 80181) This section establishes requirements related to renewable energy fees on federal lands, including by providing statutory authority for annual acreage rent for wind and solar rights-of-way.

(Sec. 80182) This section provides a mechanism for states, counties, and the federal government to share revenues from renewable energy projects on public lands.

Subtitle B--Water, Wildlife, and Fisheries

(Sec. 80201) This section rescinds funding provided to the National Oceanic and Atmospheric Administration (NOAA) for the conservation, restoration, and protection of coastal habitat, marine habitats, and marine fisheries. NOAA uses the funding to provide financial or technical assistance to coastal states and other eligible entities in order to enable coastal communities prepare for extreme storms and other changing climate conditions.

(Sec. 80202) This section rescinds funding for certain NOAA facilities (e.g., piers, fisheries laboratories, and national marine sanctuaries facilities).

(Sec. 80203) This section provides funding to the Bureau of Reclamation for construction and associated activities that increase the capacity of existing Reclamation surface water storage facilities.

(Sec. 80204) This section provides funding to Reclamation for construction and associated activities that increase the capacity of existing Reclamation conveyance facilities.

Subtitle C--Federal Lands

(Sec. 80301) This section rescinds certain funds provided to the Forest Service regarding the protection of old-growth forests on National Forest System land.

(Sec. 80302) This section rescinds certain funding for Interior to carry out certain projects concerning the conservation, protection, and resiliency of lands and resources administered by the National Park Service (NPS) and the BLM.

(Sec. 80303) This section rescinds funding for certain conservation and ecosystem and habitat restoration projects on lands administered by the NPS and the BLM.

(Sec. 80304) This section rescinds certain funding provided to the NPS for hiring more employees.

(Sec. 80305) This section provides funding to Interior (1) to establish and maintain a statuary park named the National Garden of American Heroes; and (2) for events, celebrations, and activities related to the 250th anniversary of America’s founding.

(Sec. 80306) This section directs the Forest Service to annually enter into at least one 20-year or longer contract or agreement with private persons or other entities for timber harvesting in each of its regions for FY2025-FY2034. 

(Sec. 80307) This section directs the BLM to annually enter into at least one 20-year or longer contract or agreement with private persons or other entities to dispose of vegetative materials on certain federal lands for FY2025-FY2034. 

(Sec. 80308) This section requires the Forest Service to direct timber harvests on certain public lands in amounts that (1) equal or exceed the volume that is 25% higher than the average volume sold on such lands between FY2020 through FY2024; and (2) are in accordance with the applicable forest plan.

(Sec. 80309) This section requires the BLM to direct timber harvests on specified public lands in amounts that (1) equal or exceed the volume that is 25% higher than the average volume sold on such lands between FY2020 through FY2024; and (2) are in accordance with the applicable forest plan.

TITLE IX--COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM

This title makes changes to the Federal Employees' Retirement System (FERS). It also revises fees collected by the Merit Systems Protection Board (MSPB) and revises the Federal Employees Health Benefits (FEHB) Program.

(Sec. 90001) This section eliminates the FERS annuity supplement for new retirees not yet entitled to it. (Under current law, certain FERS employees who retire before age 62 with certain years of service receive a supplement to their annuity, which ends when the retiree turns 62 or becomes eligible to receive Social Security benefits.) Employees who retire under a mandatory authority, employees in certain positions (such as law enforcement officers) meeting criteria for immediate retirement, and employees who retire before enactment of this section continue to receive the annuity supplement.

(Sec. 90002) This section requires most new federal civilian employees to choose either to serve as at-will employees or to contribute an additional 5% of their salary to FERS.

Specifically, the section increases the contribution rate from 4.4% to 9.4% of pay for these employees (or from 4.9% to 9.9% for groups covered by enhanced retirement benefits) unless they elect to be employed on an at-will basis. Employees who elect to be employed on an at-will basis may be subject to adverse actions, including termination, without notice or the right to appeal the action. 

(Sec. 90003) This section directs the MSPB to establish and collect a filing fee for employees, former employees, or applicants who file claims or appeals with the MSPB. This fee must be in the amount required for federal district court filings (currently, $350). If the individual is successful in their claim, the fee must be returned to that individual. The section provides an exception for actions brought by the Office of Special Counsel to the MSBP and for claims alleging retaliation against whistleblowers.

(Sec. 90004) This section requires the Office of Personnel Management (OPM) to issue regulations and implement a process to verify (1) the veracity of any qualifying life event through which an enrollee in the FEHB Program seeks to add a family member for coverage under the program; and (2) that, when an enrollee seeks to add a family member to the FEHB program, the individual added is a qualifying family member.

The section also requires OPM to conduct a comprehensive audit regarding family members enrolled in the FEHB program. In conducting this audit, OPM must review marriage certificates, birth certificates, and other appropriate documents to determine eligibility.

OPM must develop a process to disenroll or remove an individual who is not eligible to participate in the FEHB program and notify the OPM inspector general of such disenrollment or removal. 

The section allows for some Employees Health Benefits Fund amounts to be available to OPM annually starting in FY2026 to develop, maintain, and conduct ongoing eligibility verification and oversight and oversight of the FEHB enrollment and eligibility systems. Other amounts shall be available for audit activities.

For more information on this title, see CRS In Focus IF12996, House Oversight and Government Reform (HOGR) Reconciliation Committee Print Pursuant to H.Con.Res. 14. 

TITLE X--COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

(Sec. 100001) This section provides the Coast Guard with specified funds for FY2025, to remain available through FY2029. This includes funds for

fixed and rotary wing aircraft,

long-range unmanned aircraft systems,

Offshore Patrol Cutters,

Fast Response Cutters,

Polar Security Cutters,

Arctic Security Cutters and domestic icebreakers,

depot maintenance, and

shoreside infrastructure.

(Sec. 100002) This section increases tonnage duties charged to vessels that enter U.S. ports. In general, the section would increase tonnage duty rates by 125% relative to rates under current law.

(Sec. 100003) This section requires the Federal Highway Administration (FHWA) to impose annual federal registration fees on owners of electric and hybrid vehicles and provides funding for the FHWA to award grants to states for implementing systems for collecting the fees. States must collect a fee of $250 for electric vehicles and $100 for hybrid vehicles. The amounts must be adjusted annually for inflation. The fees terminate on October 1, 2035.

(Sec. 100004) This section requires the FHWA to transfer amounts collected from the new annual registration fees for electric and hybrid vehicles to the Highway Trust Fund.

(Sec. 100005) This section provides specified funds to the Federal Motor Carrier Safety Administration (FMCSA) to establish a public website to present data on motor carriers in order to indicate whether each motor carrier meets FMCSA operating requirements. The website must display specific statements to indicate whether the motor carrier does or does not meet FMCSA operating requirements.

FMCSA must assess an annual fee of $100 on each person seeking access to the website.

A broker, freight forwarder, or household goods freight forwarder that uses the website to ensure that a motor carrier engaged by such broker, freight forwarder, or household goods freight forwarder meets FMCSA operating requirements shall be considered to have taken reasonable and prudent determinations in engaging such motor carrier.

(Sec. 100006) This section rescinds the unobligated balances for the following activities and programs that were funded as part of the Inflation Reduction Act of 2022 (Public Law 117–169):

the Alternative Fuel and Low-Emission Aviation Technology Program, which includes the Fueling Aviation’s Sustainable Transition (FAST), of the Federal Aviation Administration (FAA);

the Neighborhood Access and Equity Grant Program of the Federal Highway Administration;

funding provided to the Federal Buildings Fund for the conversion of General Services Administration (GSA) facilities to high-performance green buildings;

funding provided to the Federal Buildings Fund for acquiring and installing low-carbon materials and products in the construction of federal buildings;

the emerging and sustainable technology program of the GSA;

the Low Carbon Transportation Materials Grants Program of the Federal Highway Administration (FHWA); and

Environmental Review Implementation Funds of the FHWA.

(Sec. 100007) This section provides the Federal Aviation Administration with specified funds for FY2025, to remain available through FY2029. This includes additional funding for

air traffic control tower and terminal radar approach control facility replacement;

radar systems replacement;

telecommunications infrastructure and systems replacement;

runway safety projects and airport surface surveillance projects; and

air traffic controller recruitment, retention, training, and advanced training technologies.

The FAA must submit a report to Congress every 90 days on these expenditures.

(Sec. 100008) This section provides specified funds for the John F. Kennedy Center for the Performing Arts in Washington, DC, for FY2025, to remain available until September 30, 2029. This funding is for the capital repair, restoration, the maintenance backlog, and security structures of the building and site.

TITLE XI--COMMITTEE ON WAYS AND MEANS, ‘‘THE ONE, BIG, BEAUTIFUL BILL’’

Subtitle A--Make American Families and Workers Thrive Again

Part 1--Permanently Preventing Tax Hikes on American Families and Workers

This part makes permanent multiple individual federal tax provisions enacted in 2017 by the Tax Cuts and Jobs Act.

Below are some examples of provisions in this part.

(Sec. 110001) This section makes permanent the individual tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

(Sec. 110002) This section makes permanent the increased standard deduction and provides an additional increase in the standard deduction in the amount of $1,000 (or $2,000 for joint filers and $1,500 for head of household filers) through 2028.

(Sec. 110003) This section permanently repeals the allowance of a deduction for personal exemptions.

(Sec. 110004) This section increases the maximum amount of the child tax credit to $2,500 per qualifying child through 2028 and extends the maximum amount of the child tax credit of $2,000 (originally enacted as part of the Tax Cuts and Jobs Act in 2017) beginning in 2029. Further, this section adjusts the maximum amount of the child tax credit for inflation beginning in 2029.

This section also makes permanent the

phaseout threshold of $200,000 (or $400,000 for joint filers),

$500 nonrefundable child tax credit for each dependent (who is not a qualifying child), and

refundable portion of the child tax credit for taxpayers who meet certain requirements.

This section also extends the child tax credit identification requirements applicable to qualifying children and expands such identification requirements to include the taxpayer and taxpayer’s spouse (if filing jointly). Beginning in 2025, under this section, a taxpayer must provide a work-eligible Social Security number for themselves, their spouse (if filing jointly), and for each qualifying child.

(Sec. 110005) This section extends and increases to 23% (from 20%) the tax deduction for qualified business income (QBI). This section also modifies limitations on the QBI tax deduction based on W-2 wages, capital investments, and other specified income.

(Sec. 110006) This section increases the base estate tax, gift tax, and generation-skipping transfer tax exemption amount after 2025 to $15 million (from $5 million), adjusted for inflation.

(Sec. 110007) This section makes permanent the increased alternative minimum tax exemption amount and phaseout threshold (applicable to individuals, trusts, and estates).

(Sec. 110008) This section makes permanent the limit on the itemized tax deduction for home mortgage interest. Under this section, taxpayers who itemize their tax deductions may deduct interest paid on the first $750,000 (or $375,000 for married individuals filing separately) of mortgage debt. (Taxpayers who itemize their tax deductions may deduct interest paid on the first $1 million (or $500,000 for married individuals filing separately) of mortgage debt incurred prior to December 15, 2017.) 

(Sec. 110009) This section makes permanent a provision that limits the itemized tax deduction for unreimbursed personal casualty losses to such losses associated with a federally declared disaster. 

(Sec. 110010) This section eliminates the itemized tax deduction for miscellaneous expenses.

(Sec. 110011) This section replaces the overall limitation on itemized tax deductions applicable for 2025 and after (known as the Pease limitation) with a modified limitation on itemized tax deductions.

For additional information see

CRS Report R47846, Reference Table: Expiring Provisions in the "Tax Cuts and Jobs Act" (TCJA, P.L. 115-97) 

CRS Report R48485, Economic Effects of the Tax Cuts and Jobs Act 

CRS Report R48286, Expiring Provisions of P.L. 115-97 (the Tax Cuts and Jobs Act): Economic Issues 

Part 2--Additional Tax Relief for American Families and Workers

This part establishes multiple new above-the-line tax deductions and makes other changes to individual-related federal tax provisions. (Above-the-line deductions are subtracted from gross income to calculate adjusted gross income.) 

Below are some examples of provisions in this part.

(Sec. 110101) This section establishes a new above-the-line tax deduction, through 2028, for qualified tip income for individuals whose earned income does not exceed a certain amount ($160,000 in 2025 and adjusted annually for inflation). To be eligible for the tax deduction for qualified tip income, taxpayers must provide a work-eligible Social Security number for themselves and their spouse (if filing jointly).

(Sec. 110102) This section establishes a new above-the-line tax deduction, through 2028, for qualified overtime income for individuals whose earned income does not exceed a certain amount ($160,000 in 2025 and adjusted annually for inflation). To be eligible for the tax deduction for qualified overtime income, taxpayers must provide a work-eligible Social Security number for themselves and their spouse (if filing jointly).

(Sec. 110103) This section increases by $4,000 (per individual), through 2028, the additional standard deduction amount for individuals who are 65 or older. The additional increase in the standard deduction for individuals who are 65 or older also may be claimed by taxpayers who itemize deductions, but phases out for taxpayers with modified adjusted gross income that exceeds $75,000 (or $150,000 for joint filers). Further, to be eligible for the increased standard deduction for individuals who are 65 or older, the taxpayer (and the taxpayer’s spouse if filing jointly) must provide a work-eligible Social Security number.

(Sec. 110104) This section establishes a new above-the-line tax deduction of up to $10,000 for interest paid on indebtedness incurred in 2025 through 2028 to buy a passenger vehicle (for personal use). The tax deduction phases out for taxpayers with modified adjusted gross income that exceeds $100,000 (or $200,000 for joint filers).

(Sec. 110105) This section increases the tax credit for employers that provide child care to their employees. Under this section, the portion of the tax credit for qualified child care expenses increases to 40% (from 25%) or to 50% for eligible small businesses. This section also increases the maximum amount of the tax credit to $500,000 (from $150,000) or $600,000 for eligible small businesses (adjusted for inflation). 

(Sec. 110110) This section expands the expenses eligible for tax-free withdrawals from qualified tuition programs (529 plans) to include certain additional expenses related to elementary, secondary, or homeschool education. 

(Sec. 110111) This section expands the expenses eligible for tax-free withdrawals from 529 plans to include tuition, fees, books, supplies, equipment, and other expenses related to the enrollment or attendance in a recognized postsecondary credentialing program.

(Sec. 110112) This section establishes a tax deduction of up to $150 (or $300 for joint filers) for charitable contributions by taxpayers who do not itemize their tax deductions.

(Sec. 110115) This section establishes a new type of tax-advantaged account, called Trump accounts, for individuals under eight years old. Up to $5,000 per year (adjusted for inflation) may be contributed to a Trump account (not including certain rollovers) and distributions may be used for certain education-related expenses, small business expenses, and the purchase of a principal residence by a first-time homebuyer. (Some limitations apply).

(Sec. 110116) This section authorizes a one-time federal government deposit of $1,000 into a Trump account for individuals born between 2025 and 2029 who meet certain other requirements.

For more information see

CRS In Focus IF12728, Taxation of Tip Income 

CRS Report R42807, Tax-Preferred College Savings Plans: An Introduction to 529 Plans 

Part 3--Investing in the Health of American Families and Workers

This part modifies certain health reimbursement arrangement (HRA) rules, increases health savings account (HSA) contribution limits, expands HSA eligibility requirements, and makes other changes to HSAs and high-deductible health plans (HDHP).

Below are some examples of provisions in this part.

(Sec. 110201) This section provides statutory authority for employers to contribute to an individual coverage HRA, subject to certain limitations and requirements and renames such arrangements as Custom Health Option and Individual Care Expense (or CHOICE) arrangements.

(Sec. 110202) This section allows employees enrolled in a CHOICE arrangement to use a cafeteria plan (e.g., flexible spending account) to purchase individual health insurance through a health insurance exchange.

(Sec. 110203) This section establishes a new tax credit (as part of the general business tax credit) for certain small businesses whose employees are enrolled in a CHOICE arrangement. The amount of the tax credit is $100 (adjusted annually for inflation) per month per employee for the first year of enrollment in a CHOICE arrangement and, then, half such amount per month per employee for the second year of enrollment. 

(Sec. 110204) This section expands eligibility to make tax-deductible HSA contributions to allow certain individuals who are 65 or older and are enrolled in Medicare Part A to contribute to an HSA.

(Sec. 110205) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a direct primary care service arrangement with a fixed period fee that does not exceed $150 a month (or $300 a month if the arrangement covers more than one individual). The amounts are adjusted annually for inflation. Some limitations apply.

(Sec. 110206) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a bronze-level or catastrophic health insurance plan through a health insurance exchange.

(Sec. 110207) This section provides statutory authority for individuals to contribute to an HSA while also accessing some types of health care at an employer-sponsored clinic on the employer’s premises or at a health care facility operated by an employer for the benefit of employees.

(Sec. 110208) This section allows taxpayers to use up to $500 a year ($1,000 per year for joint filers) in HSA funds to pay for a membership at a fitness facility or for participation or instruction in physical exercise or physical activity. (Some limitations apply.)

(Sec. 110209) This section allows married individuals who are 55 or older to make catch-up contributions to the same HSA. (Some limitations apply.)

(Sec. 110210) This section allows individuals to roll over amounts in a flexible spending arrangement (FSA) or HRA into an HSA. (Some limitations apply.)

(Sec. 110211) This section excludes from taxable income any distributions from an HSA used to pay qualified medical expenses incurred before the HSA is established if the HSA is established within 60 days from the first day of coverage under an HDHP.

(Sec. 110212) This section allows an individual to contribute to an HSA, even if covered by a spouse’s FSA. (Some limitations apply.)

(Sec. 110213) This section increases HSA contribution limits by $4,300 for individuals with self-only coverage and by $8,550 for individual with family coverage, adjusted annually for inflation. The increase in HSA contributions begins to phase out for individuals with an adjusted gross income exceeding $75,000 (or $150,000 for joint filers who have family coverage). (Some limitations apply.)

For more information see CRS Report R45277, Health Savings Accounts (HSAs) 

Subtitle B--Make Rural America and Main Street Grow Again

Part 1--Extension of Tax Cuts and Jobs Act Reforms for Rural America and Main Street

This part makes a number of changes to business-related federal tax provisions.

Below are some examples of provisions in this part. 

(Sec. 111001) This section extends 100% bonus depreciation for qualified property acquired and placed into service after January 19, 2025, and before January 1, 2030 (and before January 1, 2031, for some types of property with longer production periods).

(Sec. 111002) This section temporarily suspends (through 2029) the amortization (over five years) of domestic research and experimental expenses and allows such expenses to be deducted or capitalized. (Some limitations apply.)

(Sec. 111003) This section expands the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses to include interest on floor plan financing of any camper or trailer designed to (1) provide temporary living quarters for recreational, camping, or seasonal use; and (2) be towed by, or affixed to, a motor vehicle.

(Sec. 111004) This section increases the foreign-derived intangible income tax deduction to 36.5% (from 21.875%) and increases the deduction for global intangible low-taxed income to 49.2% (from 37.5%). 

(Sec. 111005) This section reduces the base erosion rate to 10.1% (from 12.5%).

For additional information see

CRS Report R47846, Reference Table: Expiring Provisions in the "Tax Cuts and Jobs Act" (TCJA, P.L. 115-97) 

CRS Report R48485, Economic Effects of the Tax Cuts and Jobs Act 

CRS Report R48286, Expiring Provisions of P.L. 115-97 (the Tax Cuts and Jobs Act): Economic Issues 

CRS Report RL31852, The Section 179 and Section 168(k) Expensing Allowances: Current Law, Economic Effects, and Selected Policy Issues 

Part 2--Additional Tax Relief for Rural America and Main Street

This part makes a number of changes to business-related federal tax provisions.

Below are some examples of provisions in this part. 

(Sec. 111101) This section provides for an elective 100% depreciation allowance for nonresidential real property that meets certain requirements. (Some limitations apply.)

(Sec. 111102) This section extends the Opportunity Zone program to allow for the designation of additional qualified opportunity zones. It also modifies the definition of low-income community and other requirements for the program. 

(Sec. 111103) This section increases to $2.5 million (from $1.25 million in 2025 and adjusted annually for inflation) the maximum amount that may be deducted (expensed) for certain depreciable business assets. This section also increases to $4 million (from $3.13 million in 2025 and adjusted annually for inflation) the dollar amount at which the tax deduction begins to phase out. Both amounts continue to be annually adjusted for inflation. 

(Sec. 111107) This section expands the federal tax deduction for certain film, television, and theatrical production costs to allow a deduction of up to $150,000 of qualified sound recording production costs in the tax year such costs are incurred. A 
qualified sound recording production
 is a sound recording that is produced and recorded in the United States. (Under current law, up to $20 million of film, television, and theatrical production costs incurred before 2026 may be deducted.)

The section also extends bonus depreciation to qualified sound recording production costs.

(Under current law, taxpayers may claim a bonus depreciation allowance of between 20% to 100% of the cost of qualified property depending on when such property is placed into service. Section 111001 of the bill extends 100% bonus depreciation through 2029 [or 2030 for some types of property].)

(Sec. 111109) This section allows manufacturers with average annual gross receipts (over the three previous years) that do not exceed $80 million (increased from $25 million) to use the cash method of accounting. (Under the cash method of accounting, income is reported in the year that it is received and deductions and credits are claimed for the year in which the expenses are actually paid.)

(Sec. 111110) This section allows certain U.S. shareholders (individuals, trusts, estates, and certain closely-held C corporations) of a controlled foreign corporation to exclude certain income earned from services provided in the Virgin Islands from the calculation of global intangible low-taxed income (GILTI).

(Sec. 111111) This section extends the clean fuel production tax credit through 2031 and 

requires that clean fuels produced from feedstock use feedstock sourced from the Unites States, Canada, or Mexico;

excludes emissions attributable to an indirect land use change from the calculation of lifecycle emissions estimates (used in part of the calculation of the clean fuel production tax credit); and

requires the Department of the Treasury to provide distinct emission rates for specific feedstocks used to produce clean fuels, including dairy manure, swine manure, and poultry manure.

This section also disallows the clean fuel production tax credit for certain foreign entities and foreign-influenced entities (e.g., taxpayers that make certain types of payments to certain foreign entities).

Subtitle C--Make America Win Again

Part 1--Working Families Over Elites

This part modifies, phases out, and terminates multiple energy-related federal tax credits. This part also modifies the federal tax deduction for state and local taxes and the excise tax imposed on the net investment income of certain organizations.

Below are some examples of provisions in this part. 

(Sec. 112001) This section terminates the previously-owned clean vehicle tax credit. (Under current law, taxpayers may claim a tax credit of up to $4,000 for the purchase of a qualified previously-owned clean vehicle before 2033.)

(Sec. 112002) This section terminates the clean vehicle tax credit. (Under current law, taxpayers may claim a tax credit of up to $7,500 for the purchase of a qualified new clean vehicle before 2033.)

(Sec. 112003) This section terminates the qualified commercial clean vehicle tax credit. (Under current law, businesses may claim a tax credit of up to $40,000 for the purchase of a commercial clean vehicle before 2033.)

(Sec. 112004) This section terminates the alternative fuel refueling property tax credit. (Under current law, tax credit of up to $1,000 for individuals or up to $100,000 for businesses is allowed for the installation of property before 2033 that is used to store or dispense clean-burning fuel or to recharge electric vehicles.)

(Sec. 112005) This section terminates the energy efficient home improvement tax credit. (Under current law, taxpayers may claim a tax credit of up to $3,200, for certain energy-efficient property purchased and installed into a primary residence before 2033.)

(Sec. 112006) This section terminates the residential clean energy tax credit. (Under current law, taxpayers may claim a tax credit for certain renewable energy equipment for a principal residence before 2034.)

(Sec. 112007) This section terminates the new energy efficient home tax credit. (Under current law, contractors may claim a business tax credit for constructing an energy-efficient home that is acquired by a person for use as a residence before 2033.)

(Sec. 112008) This section generally terminates the clean electricity production tax credit for an otherwise qualified facility placed into service after 2028 or for which construction begins after 60 days from the date of enactment of this section (with a limited exception for certain advanced nuclear facilities). (Under current law, a tax credit is available for the production and sale of zero-emissions electricity by a qualified facility placed into service after 2024.)

This section also disallows the clean electricity production tax credit for certain foreign entities, facilities that receive material assistance from certain foreign entities, and taxpayers that make certain types of payments to certain foreign entitles.

(Sec. 112009) This section generally terminates the clean electricity investment tax credit for an otherwise qualified facility placed into service after 2028 or for which construction begins after 60 days from the date of enactment of this section (with a limited exception for certain advanced nuclear facilities). (Under current law, a tax credit is available for investments in qualified energy property by a facility that produces zero-emissions electricity that is placed into service after 2024.)

This section also disallows the clean electricity investment tax credit for certain foreign entities, facilities that receive material assistance from certain foreign entities, and taxpayers that make certain types of payments to certain foreign entitles.

(Sec. 112012) This section accelerates the expiration of the zero-emission nuclear power production tax credit to December 31, 2031 (from December 31, 2032). (Under current law, a tax credit is available for qualified nuclear power facility before 2033.)

This section also disallows the zero-emission nuclear power production tax credit for certain foreign entities.

(Sec. 112013) This section terminates the clean hydrogen production tax credit. (Under current law, a tax credit is available for the production of clean hydrogen by a qualifying facility for which construction begins before 2033.)

(Sec. 112014) This section phases out the advance manufacturing production tax credit. (Under current law, a tax credit is available for certain inverters, solar energy components, wind energy components, qualified battery components, and critical minerals produced and sold before 2033.)

This section also disallows the advance manufacturing production tax credit for certain foreign entities, facilities that receive material assistance from certain foreign entities, and taxpayers that make certain types of payments to certain foreign entities.

(Sec. 112015) This section accelerates the phaseout of the energy investment tax credit for investments in certain geothermal facilities. Under this section, to be eligible for the tax credit, the construction on the geothermal facility must begin before 2032. (Under current law, the energy investment tax credit is available for investments in geothermal facility for which construction begins before 2035.)

This section also disallows the energy investment tax credit for certain foreign entities, facilities that receive material assistance from certain foreign entities, and taxpayers that make certain types of payments to certain foreign entities.

(Sec. 112018) This section increases the limitation on the federal tax deduction for state and local taxes (commonly known as the SALT deduction cap) to $40,400 (or $20,200 for married individuals filing separately). Under this section, the SALT deduction cap is reduced for taxpayers with an adjusted gross income over $505,000 (or $202,500 for married individuals filing separately), but not below $10,000 (or $5,000 for married individuals filing separately).

The section increases the dollar amounts for the limitations on the SALT deduction by 1% per year for tax years 2027-2033 and establishes a permanent limitation for subsequent years that is equal to the 2033 levels.

This section also 

prohibits the SALT deduction for foreign real property taxes (other than foreign real property taxes paid or accrued by certain entities in carrying out a trade or business),

prohibits certain partnerships and S corporations from claiming the SALT deduction for specific taxes, and

limits the SALT deduction for payments made to a state or local jurisdiction that generate a specific tax benefit.

(Sec. 112021) This section replaces the excise tax of 1.4% imposed on the net investment income of certain private university and college endowments with a new rate structure of 1.4%, 7%, 14%, or 21%, depending on several variables including the value of the endowment and the number of full-time students who meet certain other requirements.

(Sec. 112029) This section removes firearm silencers from the definition of a firearm under the National Firearms Act of 1934 and eliminates the $200 excise tax on the making or transfer of firearm silencers.

For more information see

CRS Report R46865, Energy Tax Provisions: Overview and Budgetary Cost 

CRS Report R46246, The SALT Cap: Overview and Analysis 

CRS Report R44293, College and University Endowments: Overview and Tax Policy Options 

Part 2--Removing Taxpayer Benefits for Illegal Immigrants

This part modifies eligibility requirements for the premium tax credit and certain other tax credits. This part also imposes an excise tax on certain remittance transfers.

Below are some examples of provisions in this part. 

(Sec. 112101) This section allows lawfully-present aliens to claim the premium tax credit to purchase health insurance on an exchange only if they meet certain requirements (subject to exceptions provided in Sec. 112102).

(Sec. 112102) This section repeals the rule that allows certain lawfully-present aliens who have a household income of less than 100% of the federal poverty level and are ineligible for Medicaid (based on the individual’s alien status) to claim the premium tax credit. 

(Sec. 112103) This section limits Medicare benefits to an individual who is

a U.S. citizen or national;

an alien who is lawfully admitted for permanent residence;

an alien who is a Cuban citizen or national and meets certain requirements; or

an individual who is lawfully residing in the United States in accordance with the Compacts of Free Association between the United States and Micronesia, the Marshall Islands, and Palau.

This section also requires the Social Security Administration to identify individuals who do not meet the Medicare eligibility requirements of this section and to notify such individuals of the termination (one year from the date this section is enacted) of their Medicare benefits. 

(Sec. 112104) This section establishes a 3.5% excise tax on transfers of payments from one country to another (also known as remittance transfers). (Some exceptions apply).

(Sec. 112105) This section requires a Social Security number to be eligible for the American Opportunity and Lifetime Learning tax credits.

For more information see

CRS Report R44425, Health Insurance Premium Tax Credit and Cost-Sharing Reductions 

CRS Report R48290, Enhanced Premium Tax Credit Expiration: Frequently Asked Questions 

Part 3--Prevent Fraud, Waste, and Abuse

This part modifies multiple federal tax administrative and penalty provisions. 

Below are some examples of provisions in this part. 

(Sec. 112205) This section establishes a new certification program for claiming the earned income tax credit.

(Sec. 112206) This section directs the Internal Revenue Service to terminate the Direct File program.

(Sec. 112207) This section increases the penalties for the unauthorized disclosure of taxpayer information.

For more information see CRS Report R43805, The Earned Income Tax Credit (EITC): How It Works and Who Receives It 

Subtitle D--Increase in Debt Limit

(Sec. 113001) This section increases the statutory debt limit by $4 trillion. (The debt limit is the amount of money that the Department of the Treasury may borrow to fund federal operations.)

action_date: 2025-07-01
text: 
This bill reduces taxes, reduces or increases spending for various federal programs, increases the statutory debt limit, and otherwise addresses agencies and programs throughout the federal government. 

It is known as a reconciliation bill and includes legislation submitted by several congressional committees pursuant to provisions in the FY2025 congressional budget resolution (H Con. Res. 14) that directed the committees to submit legislation to the House or Senate Budget Committee that will increase or decrease the deficit and increase the statutory debt limit by specified amounts. (Reconciliation bills are considered by Congress using expedited legislative procedures that prevent a filibuster and restrict amendments in the Senate.)

TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

This title addresses a wide range of Department of Agriculture (USDA) programs, including by changing the Supplemental Nutrition Assistance Program (SNAP) and extending programs authorized by the Agriculture Improvement Act of 2018 (commonly known as the 2018 farm bill).

Subtitle A--Nutrition

(Sec. 10101) This section prohibits USDA from increasing the cost of the Thrifty Food Plan (TFP) based on a reevaluation of the contents of the TFP (i.e., the market basket of goods). Further, any annual adjustment to the cost of the plan must be based on the Consumer Price Index for All Urban Consumers.

As background, USDA created the TFP (the cost of purchasing a nutritionally adequate low-cost diet), which is used to determine maximum monthly benefits under the Supplemental Nutrition Assistance Program (SNAP). USDA calculates the cost of the TFP each year to account for food price inflation. Maximum allotments are set at the monthly cost of the TFP for a four-person family, adjusted for family size. Under a provision of the 2018 farm bill, USDA must reevaluate the market basket of goods every five years based on current food prices, food composition data, consumption patterns, and dietary guidance.

(Sec. 10102) This section expands the applicability of work requirements for SNAP recipients who are able-bodied adults without dependents (ABAWDs).

As background, these SNAP recipients have work-related requirements in addition to the general SNAP work registration and employment and training requirements. SNAP law limits benefits to ABAWDs to 3 months out of a 36-month period, unless the participant meets the additional work-related requirements. 

Specifically, the section amends the exemptions to this requirement.

First, the section applies the work requirements for ABAWDs to adults who are not over 65 years old, whereas these requirements currently apply to adults who are not over 55 years old.

Second, the ABAWD exemption for a parent or household member with responsibility for a dependent child is restricted to a dependent child under the age of 14. Currently, those with a child under the age of 18 are exempt from the requirements.

This section includes an exception for individuals who are Indians, Urban Indians, or California Indians (as these terms are defined by the Indian Health Care Improvement Act). 

In addition, the section eliminates the current exemptions from the ABAWD work requirements for homeless individuals, veterans, and certain foster care individuals (those who are 24 years old or younger and were in foster care on the date of attaining 18 years of age or a higher age).

Finally, this section modifies the ABAWD waiver program's allowable state exemptions. Under current law, an ABAWD waiver program allows state exemptions based on an area having an unemployment rate of over 10% or an insufficient number of jobs. The section allows Alaska and Hawaii to qualify for the state exemption with an unemployment rate that is at or above 1.5 times the national unemployment rate. Further, the section repeals the provision that allows a state exemption if that area does not have a sufficient number of jobs.

(Sec. 10103) This section limits the availability of the Standard Utility Allowance (SUA) for determining SNAP income eligibility. Specifically, only households that include an elderly or disabled member may be considered automatically eligible for the SUA based on participation in the Low Income Home Energy Assistance Program (LIHEAP) or a similar energy assistance program.

As background, when determining a household’s eligibility for SNAP, states consider the total shelter costs for a household, including the cost of utilities. States can use SUAs, which are standard amounts that represent low-income household utility costs in the state or local area. Currently, all LIHEAP participants who receive a minimum benefit are eligible for the SUA for determining SNAP income eligibility.

(Sec.10104) This section prohibits any service fee associated with an internet connection from being used in computing the excess shelter expense deduction for the purposes of determining the size of household SNAP benefits.

(Sec. 10105) This section establishes state-matching fund requirements for the cost of SNAP program allotments beginning in FY2028. The state contribution ranges from 0% to 15% for the cost of SNAP program allotments and is based on the state’s SNAP payment error rate. Currently, the state match is 0%.

For FY2028, a state may elect either the FY2025 or FY2026 payment error rate to calculate its state-matching fund requirement. For FY2029 and each fiscal year thereafter, the state match is calculated using the payment error rate that is three fiscal years prior.

Any state that has a payment error rate that is less than 6% will have a state match of 0% (i.e., the state does not have to contribute).

A state with a payment error rate that is

at least 6% but less than 8% must contribute 5%,

at least 8% but less than 10% must contribute 10%, and

10% or greater must contribute 15%.

(Sec. 10106) This section reduces the amount that USDA may pay a state agency for administrative costs for the operation of SNAP to 25% of all administrative costs beginning in FY2027 and for each fiscal year thereafter. Currently, USDA must pay 50% of all administrative costs, thus this section increases the state share of administrative costs from 50% to 75%.

(Sec. 10107) This section eliminates funding for the SNAP Nutrition Education and Obesity Prevention Grant Program (SNAP-ED).

(Sec. 10108) This section limits SNAP benefits to individuals who reside in the United States and are (1) U.S. citizens or U.S. nationals; (2) aliens lawfully admitted for permanent residence as an immigrant, with exceptions; (3) aliens who have been granted the status of Cuban or Haitian entrant; or (4) individuals who are lawfully residing in the United States in accordance with the Compacts of Free Association between the United States and Micronesia, the Marshall Islands, and Palau.

Currently, SNAP eligibility extends to additional individuals who are classified as an alien under federal law, including an alien who has qualified for conditional entry under the asylum and refugee laws.

Subtitle B-- Forestry

(Sec. 10201) This section rescinds certain funds provided to the Forest Service as part of the Inflation Reduction Act of 2022. For example, this includes the rescission of funds for 

the protection of old-growth forests on National Forest System land,

grants for nonfederal forest landowners for climate mitigation or forest resilience practices,

grants for state and private forestry conservation programs for tree planting, and

administrative costs for the National Forest System to implement these and other related programs.

Subtitle C--Commodities

This subtitle amends and extends commodity support programs.

For example, the subtitle extends the Price Loss Coverage Program, the Agricultural Risk Coverage Program, and Dairy Margin Coverage through crop year 2031. It also modifies various requirements for the programs.

(Sec. 10313) This section provides for a number of changes to Dairy Margin Coverage (DMC), which include

changing the definition of production history to remove the consideration of production at the time the dairy operation first registered to participate in the DMC program;

setting production history for the DMC program as the highest annual milk marketings for participating dairies during calendar year 2021, 2022, or 2023;

raising the coverage limit to the first 6 million pounds for both Tier I and Tier II premiums, from the first 5 million pounds; and

allowing producers to receive a 25% premium discount for a one-time premium election covering calendar years 2026-2031.

Subtitle D--Disaster Assistance Programs

This subtitle expands the types of eligible losses covered under the permanently authorized agricultural disaster assistance programs, which include the Livestock Indemnity Program; the Livestock Forage Disaster Program; the Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program; and the Tree Assistance Program. This subtitle also increases coverage levels and lowers the threshold for triggering payments for certain eligible losses.

Subtitle E--Crop Insurance

This subtitle increases certain crop insurance premium subsidies and increases additional premium subsidies available for beginning farmers and ranchers. The subtitle also increases coverage levels for Supplemental Coverage Option and Whole Farm Revenue Protection policies, increases support for administrative and operating costs incurred by approved crop insurance providers, and increases funds available for program compliance and integrity.

In addition, this subtitle provides for the establishment of a Poultry Insurance Pilot Program in order to provide index-based insurance for contract poultry growers.

Subtitle F--Additional Investments in Rural America 

(Sec. 10601) This section reauthorizes or modifies the funding levels for the following programs through FY2031:

Agriculture Conservation Easement Program (ACEP),

Environmental Quality Incentives Program (EQIP),

Conservation Stewardship Program (CSP),

Regional Conservation Partnership Program (RCPP),

Grassroots Source Water Protection Program,

Voluntary Public Access and Habitat Incentive Program,

Watershed and Flood Prevention Operations Program, and

Feral Swine Eradication and Control Pilot Program.

This section also rescinds the unobligated funds that were provided for the ACEP, EQIP, CSP, and RCPP conservation programs as part of the Inflation Reduction Act of 2022.

(Sec. 10602) This section directs USDA to carry out a program to encourage the accessibility, development, maintenance, and expansion of commercial export markets for U.S. agricultural commodities. This section also provides $285 million in mandatory funding for the program for FY2027 and each fiscal year thereafter.

(Sec. 10603) This section extends funding for the Emergency Food Assistance Program (TEFAP) through FY2031. TEFAP provides food commodities (and cash support for storage and distribution costs) through states to local emergency feeding organizations (e.g., food banks).

(Sec. 10604) This section reauthorizes and provides funding for a number of USDA research initiatives.

For example, this section provides specified funds to the 1890 National Scholars Program for FY2026 for student scholarships. This National Institute of Food and Agriculture program provides grants to 1890 Institutions (i.e., historically Black colleges and universities that belong to the U.S. land-grant university system) for students who intend to pursue a career in the food and agricultural sciences.

This section provides the Specialty Crop Research Initiative with $175 million in mandatory funding for FY2026. Currently, the program is funded at $80 million for each fiscal year.

This section also provides funding for competitive grants to assist in the construction, alteration, acquisition, modernization, renovation, or remodeling of Agricultural Research Facilities.

(Sec. 10605) This section reauthorizes, and extends funding for, the bioenergy program for advanced biofuels (i.e., Advanced Biofuel Payment Program) through FY2031. The program provides payments to fuel producers to support and expand production of advanced biofuels (i.e., not derived from corn starch).

(Sec. 10606) This section provides additional funding for the Plant Pest and Disease Management Disaster Prevention Program for FY2026 and each fiscal year thereafter.

This section provides additional funding for the Specialty Crop Block Grant Program for FY2026 and each fiscal year thereafter. Under the block grant program, USDA provides grants to the state departments of agriculture to enhance the competitiveness of specialty crops (i.e., fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops, including floriculture).

The section also reauthorizes, and extends funding for, organic production and market data initiatives through FY2031.

This section reauthorizes, and extends funding through FY2026, for USDA to carry out the modernization and improvement of international trade technology systems and data collection on imports of organically produced agricultural products accepted into the United States.

The section also reauthorizes through FY2031 the Organic Certification Cost Share Program, which provides cost share assistance to producers and handlers of agricultural products who are obtaining or renewing their certification under the National Organic Program.

This section reauthorizes, and extends funding through FY2026, for the multiple crop and pesticide use survey of farmers. The USDA Office of Pest Management Policy conducts this survey to collect data for risk assessment modeling and mitigation for an active ingredient.

(Sec. 10607) This section increases funding for the National Animal Health Laboratory Network. Specific increases in funding are also provided for the National Animal Disease Preparedness and Response Program and the National Animal Vaccine and Veterinary Countermeasures Bank.

This section extends and increases funding for the Sheep Production & Marketing Grant Program through FY2026. This program seeks to strengthen and enhance the production and marketing of sheep and sheep products in the United States.

This section also extends the

Pima Agriculture Cotton Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on cotton fabric that are higher than tariffs on certain apparel articles made of cotton fabric;

Agriculture Wool Apparel Manufacturers Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on wool fabric that are higher than tariffs on certain apparel articles made of wool fabric;

Wool Research and Promotion Program through FY2031, which provides grants to assist U.S. wool producers with improving the quality of wool and with developing and promoting the wool market; and

Emergency Citrus Disease Research and Development Trust Fund through FY2031, which funds a program that aims to bring together scientists to find scientifically sound and financially sustainable solutions to Huanglongbing (i.e., citrus greening, a bacterial disease spread by an insect that feeds on citrus).

TITLE II--COMMITTEE ON ARMED SERVICES

(Sec. 20001) This section provides additional funding for FY2025 to the Department of Defense (DOD) for

the Marine Corps Barracks 2030 initiative,

the Defense Health Program,

supplemental payments of Basic Allowance for Housing to military personnel, and

tuition assistance and child care assistance for members of the Armed Forces.

The section also provides statutory authority to extend from 14 to 21 days eligibility for Temporary Lodging Expense (TLE) for certain servicemembers undergoing a permanent change of station.

Additionally, the section temporarily increases authorized investment amounts and provides additional authorization for the acquisition or construction of certain military housing through private contracts.

(Sec. 20002) This section provides additional funding for FY2025 for the shipbuilding industrial base and various naval shipbuilding activities. 

(Sec. 20003) This section provides additional funding for FY2025 for the development of (1) space-based missile intercept capabilities, (2) military space-based sensors, and (3) the continued development of ground-based missile defense systems and related infrastructure.

(Sec. 20004) This section provides additional funding for FY2025 for various military weapon systems, including hypersonic, air-to-air, cruise, and anti-ship missiles.

The section also provides additional funding for FY2025 for the Industrial Base Fund.

(Sec. 20005) This section provides additional funding for FY2025 to expand the small, unmanned aerial system (UAS) industrial base, to advance the use of artificial intelligence in these and other systems, and to support the integration of commercial developments in military technology.

The section also provides additional funding to finance loans and loan guarantees by the DOD Office of Strategic Capital.

(Sec. 20006) This section provides additional funding for FY2025 to replace current business systems, deploy automation, and deploy artificial intelligence to accelerate audits of DOD financial statements.

(Sec. 20007) This section provides additional funding for FY2025 to (1) modernize the capabilities of fighter, transport, and other military aircraft; (2) prevent the retirement of certain fighter aircraft (e.g., F-22); and (3) produce next-generation manned and unmanned aircraft.

(Sec. 20008) This section provides additional funding for FY2025 for nuclear defense resources and nuclear forces development and production. This includes additional funding to expand the production capacity of the B-21 long-range bomber aircraft.

The section also provides additional funding for FY2025 for the National Nuclear Security Administration.

(Sec. 20009) This section provides additional funding for FY2025 for (1) various military exercises and infrastructure in the Indo-Pacific region, and (2) the development and procurement of military satellites.

(Sec. 20010) This section provides additional funding for FY2025 to enhance and modernize (1) military depots and shipyards, (2) Special Operations Command (SOCOM) equipment, and (3) Air Force facilities. 

(Sec. 20011) This section provides additional funding for FY2025 to support border operations, including deployment of military personnel.

(Sec. 20012) This section provides additional funding for FY2025 for the DOD Office of Inspector General to monitor the activities for which funding is provided under this title.

(Sec. 20013) This section authorizes each military department to use funding under this title for military construction, land acquisition, and military family housing. Each military department must submit a detailed spending plan to Congress.

TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

(Sec. 30001) This section reduces funding for the Consumer Financial Protection Bureau.

(Sec. 30002) This section rescinds unobligated funds from the Green and Resilient Retrofit Program under the Department of Housing and Urban Development (HUD). The program provides funding for energy efficiency improvements in multifamily properties receiving HUD assistance.

(Sec. 30003) This section closes the Securities and Exchange Commission (SEC) Reserve Fund and transfers the remaining amounts to the general fund of the Treasury. The fund pays for SEC expenses and is not subject to annual appropriation.

(Sec. 30004) This section provides additional funding to carry out activities under the Defense Production Act of 1950. The act confers on the President a broad set of authorities to influence domestic industry in the interest of national defense. 

TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

(Sec. 40001) This section provides the Coast Guard with funds for FY2025, to remain available through FY2029, to use expedited processes to (1) procure or acquire new operational assets and systems; (2) maintain existing assets and systems; (3) design, construct, plan, engineer, and improve necessary shore infrastructure; and (4) enhance operational resilience for monitoring, search and rescue, interdiction, hardening of maritime approaches, and navigational safety.

This includes specified funds for

fixed and rotary wing aircraft,

long-range unmanned aircraft and base stations,

Offshore Patrol Cutters,

Fast Response Cutters,

Polar Security Cutters,

Arctic Security Cutters,

light and medium icebreaking cutters, and

depot maintenance.

(Sec. 40002) This section renews the authority of the Federal Communications Commission (FCC) to auction licenses for the use of radio frequency spectrum and requires the FCC to auction at least 800 megahertz of spectrum within a specified time frame.

Specifically, this section reauthorizes the FCC’s use of competitive bidding (i.e., auctions) to grant licenses for the use of specific frequencies through September 30, 2034. (The FCC’s auction authority must be renewed by Congress periodically. It expired on March 9, 2023, and has not been renewed.) However, the FCC is not authorized to auction certain frequencies used primarily by the Department of Defense.

During this period of renewed auction authority, the FCC is required to auction at least 300 megahertz of spectrum, including at least 100 megahertz in specified frequencies (known as the Upper C-Band) within two years of this title’s enactment.

Further, within four years of this title’s enactment, the National Telecommunications and Information Administration (NTIA) must identify 500 megahertz of additional spectrum currently allocated to the federal government for reallocation and auction. Specifically, the NTIA must select spectrum at frequencies between 1.3 and 10.5 gigahertz for reallocation to nonfederal use or shared federal use for full-power commercial licensed use cases (e.g., commercial mobile phone service). In selecting spectrum for reallocation, the NTIA must assess the feasibility of reallocating specific frequencies with the goal of maximizing auction proceeds.

The FCC must auction the frequencies identified for reallocation within a specified time frame, and must complete auctions for the full 500 megahertz within eight years of this title’s enactment. 

If necessary to protect U.S. national security, the President must modify or withdraw any frequency identified for reallocation at least 60 days before an auction of that frequency.

Finally, this section provides funding for the NTIA to conduct a timely spectrum analysis of certain frequency bands and to publish a report, biennially through 2034, on the value of all spectrum used by federal entities.

(Sec. 40003) This section provides the Federal Aviation Administration (FAA) with specified funds for FY2025, to remain available through FY2029. This includes additional funding for 

telecommunications infrastructure modernization and systems upgrades;

radar systems replacement;

runway safety technologies, runway lighting systems, and airport surface surveillance technologies;

Automated Weather Observing Systems and Visual Weather Observing Systems;

the Don Young Alaska Aviation Safety Initiative;

a new air route traffic control center (ARTCC) and an ARTCC Realignment and Consolidation Effort;

recapitalization and consolidation of terminal radar approach control facilities (TRACONs);

the deployment of remote tower technology at untowered airports; and

air traffic controller advanced training technologies.

The FAA must submit a report to Congress every 90 days on these expenditures.

(Sec. 40004) This section requires the FAA to impose a specified fee on each commercial space launch or reentry carried out beginning in 2026. 

This section also establishes an account within the U.S. Treasury wherein all commercial space launch and reentry fees must be deposited. The FAA must use a certain portion of such funds for (1) expenses of the FAA’s Office of Commercial Space Transportation, which administers commercial space launch and reentry permitting; and (2) a project to expedite the development, acquisition, and deployment of technologies or capabilities to aid in space launch and reentry integration.

(Sec. 40005) This section provides specified funding to the National Aeronautics and Space Administration (NASA) for Moon and Mars missions, infrastructure improvements at NASA facilities, and other NASA projects.

Specifically, this section includes funding for the procurement of a high-performance Mars telecommunications orbiter; for the procurement and operation of the Space Launch System for Artemis missions IV and V; and for expenses related to the operation and eventual deorbiting of the International Space Station.

This section also requires NASA to identify a space vehicle that has carried astronauts and flown in space to be relocated and placed on public display near a NASA field center. The space vehicle must be transported to this new location within 18 months of this title’s enactment. This section provides funding to NASA to carry out this requirement, including certain funds that must be transferred to a selected entity for the construction of a facility to house the space vehicle.

(Sec. 40006) This section sets the civil penalty to $0 for a violation by a manufacturer of the Corporate Average Fuel Economy (CAFE) standard. 

Currently, the National Highway Traffic Safety Administration’s (NHTSA’s) CAFE standards regulate how far vehicles must travel on a gallon of fuel. NHTSA enforces the standards through civil penalties. By reducing the penalty to $0, this section effectively eliminates the civil penalty and the ability of NHTSA to enforce the standards.

(Sec. 40007) This section increases the amount of the lease payment that the Metropolitan Washington Airports Authority (MWAA) must pay to the federal government for Ronald Reagan Washington National Airport and Washington Dulles International Airport. 

Specifically, MWAA must pay $15 million per year (adjusted annually for inflation) beginning in 2027. This amount must be renegotiated at least once every 10 years to ensure that the amount is not less than $15 million in 2027 dollars. Under current law, MWAA pays $3 million per year (adjusted annually for inflation). For 2025, the projected payment is approximately $7.5 million.

(Sec. 40008) This section rescinds specified funds that were provided to the National Oceanic and Atmospheric Administration (NOAA) for certain facilities, activities, and research.

Specifically, this section rescinds funds that were provided to NOAA for (1) the provision of financial or technical assistance to coastal states and other entities for conservation, restoration, and protection of coastal and marine habitats and to enable preparation for extreme weather; (2) NOAA facilities, including piers, fisheries laboratories, and national marine sanctuaries; (3) reviews of planning, permitting, and approval processes; and (4) weather research and forecasting innovations, including a grant program to support climate research.

(Sec. 40009) This section reduces funding for the Corporation for Travel Promotion (i.e., Brand USA) to $20 million per year through FY2027 from the current level of $100 million per year. Established by the Travel Promotion Act of 2009, Brand USA is a public-private partnership tasked with promoting tourism in the United States.

(Sec. 40010) This section rescinds the unobligated balances for the FAA Alternative Fuel and Low-Emission Aviation Technology Program, which includes the Fueling Aviation’s Sustainable Transition (FAST), that was funded as part of the Inflation Reduction Act of 2022.

(Sec. 40011) This section rescinds specified funds that were provided for the Public Wireless Supply Chain Innovation Fund, a competitive grant program administered by the National Telecommunications and Information Administration that funds efforts to accelerate the development, deployment, and adoption of Open Radio Access Networks (Open RAN). (Open RAN is a nonproprietary, standardized network deployment approach that promotes open networks with interoperable equipment and virtualized network operations.)

TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES 

Subtitle A--Oil and Gas Leasing 

(Sec. 50101) This section generally reduces restrictions on onshore development of oil and gas on federal lands, including by (1) decreasing the minimum royalty rates, (2) reinstating noncompetitive leasing, (3) directing the Department of the Interior to immediately resume onshore quarterly lease sales, and (4) directing Interior to approve applications that allow for the commingling of production from two or more sources (e.g., the area of an oil and gas lease and nonfederal property) before production reaches the point of royalty measurement if certain conditions are met. 

(Sec. 50102) This section generally reduces restrictions on offshore development of oil and gas on federal lands, including by directing Interior to hold a specified number of offshore oil and gas lease sales on certain submerged lands of the Outer Continental Shelf (OCS), including areas in the Gulf of America and the Cook Inlet Planning Area in Alaska.

This section also directs Interior to approve operator requests to commingle production from multiple reservoirs within a single wellbore completed on the OCS of the Gulf of America unless conclusive evidence shows the practice would be unsafe or reduce the recovery of oil.

Further, this section decreases the minimum royalty rates for federal leases for offshore development of oil and gas.

This section also modifies the Gulf of Mexico Energy Security Act of 2006 to raise the cap on the distribution of OCS revenues from $500 million to $650 million per year for FY2025-FY2034.

(Sec. 50103) This section ends royalty payments on methane gas extracted from federal lands. 

(Sec. 50104) This section modifies provisions concerning the production of oil and gas from the Arctic National Wildlife Refuge (ANWR) in Alaska. 

(Sec. 50105) This section restores and resumes the National Petroleum Reserve-Alaska (NPR-A) oil and gas program. It also outlines how the revenues derived from the program must be divided between Alaska and the federal government.

Subtitle B--Mining 

(Sec. 50201) This section directs Interior to publish an environmental review, hold certain coal lease sales, and issue the leases for certain coal lease applications within 90 days after enactment.

(Sec. 50202) This section temporarily decreases the royalty rate for coal leases on federal lands.

(Sec. 50203) This section requires Interior to make available for lease known recoverable coal resources of at least 4 million additional acres on certain federal land.

(Sec. 50204) This section authorizes mining of all federal coal reserves located in federal land subject to a previously approved mining plan and adjacent to coal reserves in adjacent state or private lands. 

Subtitle C--Lands 

(Sec. 50301) This section directs the Forest Service to annually, beginning in FY2026 and through FY2034, to sell a quantity of timber on National Forest System land that is at least 250 million board feet greater than the quantity that was sold in the previous fiscal year, subject to forest plan limits. 

The Forest Service must annually enter into at least 40 20-year or longer contracts with private persons or other entities for the sale of national forest materials for FY2025-FY2034. 

The Bureau of Land Management (BLM) must annually, beginning in FY2026 and through FY2034, sell a quantity of timber on public land that is at least 20 million board feet greater than the quantity that was sold in the previous fiscal year, subject to resource management plan limits.

This section also directs the BLM to annually enter into at least five 20-year or longer contracts with private persons or other entities to dispose of vegetative materials on certain federal lands for FY2025-FY2034. 

(Sec. 50302) This section establishes requirements related to renewable energy fees on federal lands, including by providing statutory authority for annual acreage rent for wind and solar rights-of-way.

(Sec. 50303) This section provides a mechanism for states, counties, and the federal government to share revenues from renewable energy projects on public lands.

(Sec. 50304) This section rescinds certain funding for Interior to carry out certain projects concerning the conservation, protection, and resiliency of lands and resources administered by the National Park Service (NPS) and the BLM.

This section also rescinds funding for (1) certain conservation and ecosystem and habitat restoration projects on lands administered by the NPS and the BLM. and (2) hiring NPS employees. 

(Sec. 50305) This section provides funding to the NPS for events, celebrations, and activities related to the 250th anniversary of America’s founding.

Subtitle D--Energy 

(Sec. 50401) This section provides funding for the Strategic Petroleum Reserve (SPR). It also repeals a provision that requires the Department of Energy (DOE) to draw down and sell a specified quantity of crude oil from the SPR during FY2026-FY2027. 

(Sec. 50402) This section reinstates the cap on the total amount of loans that may be provided under the Advanced Technology Vehicles Manufacturing Loan Program, a DOE program that provides loans to facilities that manufacture advanced vehicles that emit either a low amount or no amount of greenhouse gases.

This section also rescinds the unobligated funds that were provided by the Inflation Reduction Act for various energy programs, such as State-Based Home Energy Efficiency Contractor Training Grants, the Advanced Technology Vehicles Manufacturing Loan Program, and the Tribal Energy Loan Guarantee Program.

(Sec. 50403) This section revises the types of projects eligible for energy infrastructure reinvestment financing. In particular, this financing is no longer available for projects that avoid or reduce air pollutants or greenhouse gas (GHG) emissions. Additionally, fossil fuel projects under this program are no longer required to have controls or technologies to avoid or reduce air pollutants or GHG emissions. 

The section expands the program to include projects involving critical minerals. Projects that support or enable the provision of known or forecastable electric supply at time intervals necessary to maintain or enhance grid reliability or other system adequacy needs are also now eligible for this financing. The section also provides additional funding for the program. 

(Sec. 50404) This section provides funding for partnerships between the National Laboratories and U.S. industry to organize DOE data for use in artificial intelligence and machine learning models. DOE must also initiate seed efforts for self-improving artificial intelligence models for science and engineering using this data. These models must be provided to the scientific community through a system of programs and infrastructure using cloud computing. This section also allows this data to be used to develop next-generation microelectronics.

Subtitle E--Water

(Sec. 50501) This section provides funding to the Bureau of Reclamation for construction and associated activities that increase the capacity of existing Reclamation surface water storage facilities or conveyance facilities.

TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

(Sec. 60001) This section rescinds unobligated funds for the program under which the Environmental Protection Agency (EPA) provides (1) grants and rebates to replace certain medium-duty vehicles (e.g., school buses) and heavy-duty vehicles (e.g., garbage trucks) with zero-emission vehicles, and (2) awards to replace such vehicles in communities located in areas designated as nonattainment areas under the Clean Air Act (e.g., areas that do not meet national air quality standards).

(Sec. 60002) This section repeals and rescinds unobligated funds for the Greenhouse Gas Reduction Fund, which provides financial and technical assistance to states and other eligible recipients to help enable low-income and disadvantaged communities carry out activities to reduce greenhouse gas emissions.

(Sec. 60003) This section rescinds unobligated funds for an EPA program that gives grants, rebates, and loans under the Energy Policy Act of 2005 to identify and reduce diesel emissions resulting from goods movement (e.g., distribution of raw materials and consumer products) facilities as well as vehicles servicing those facilities in low-income and disadvantaged communities.

(Sec. 60004) This section rescinds unobligated funds for a variety of programs that provide incentives to monitor and reduce air pollution and greenhouse gases, including funding for grants and other activities to

deploy, integrate, support, and maintain stations, technology, and other methods to monitor air toxins;

expand the national ambient air quality monitoring network with new multi-pollutant monitoring stations;

replace, repair, operate, and maintain existing monitors;

deploy, integrate, and operate air quality sensors in low-income and disadvantaged communities;

address emissions from wood heaters;

monitor emissions of methane;

conduct research and development related to the prevention and control of air pollution; and

encourage states to adopt and implement greenhouse gas and zero-emission standards for mobile sources.

(Sec. 60005) This section rescinds unobligated funds provided for grants and other activities to monitor and reduce greenhouse gas emissions and other air pollutants at schools in low-income and disadvantaged communities. Further, it rescinds funding for technical assistance to schools in low-income and disadvantaged communities to (1) address environmental issues; (2) develop school environmental quality plans that include standards for school building, design, construction, and renovation; and (3) identify and mitigate ongoing air pollution hazards.

(Sec. 60006) This section rescinds unobligated funds for a low emissions electricity program that provides education, technical assistance, and outreach to reduce greenhouse gas emissions that result from domestic electricity generation and use.

(Sec. 60007) This section rescinds unobligated funds provided under the EPA’s Renewable Fuel Standard Program for

the development and establishment of tests and protocols regarding the environmental and public health effects of a fuel or fuel additive;

the collection and analysis of data to update applicable regulations, guidance, and procedures for determining the amount of greenhouse gas emissions from a fuel over the fuel's life cycle (e.g., production, processing, transport);

the review, analysis, and evaluation of the impacts of all transportation fuels on the public as well as on low-income and disadvantaged communities; and

supporting investments in advanced biofuels.

(Sec. 60008) This section rescinds unobligated funding for implementing the American Innovation and Manufacturing Act of 2020, which directs the EPA to address hydrofluorocarbons (HFC). HFCs are greenhouse gases that are used in applications such as air conditioning, refrigeration, fire suppression, and aerosols.

(Sec. 60009) This section rescinds unobligated funding for updating the EPA's Integrated Compliance Information System and any associated systems, necessary information technology infrastructure, or public access software tools to ensure access to compliance data and related information. Further, it also rescinds funding for grants to states, Indian tribes, and air pollution control agencies to update their systems to ensure communication with EPA’s system. Finally, it rescinds funding to the EPA for updating inspection software or acquiring such software or devices on which to run the software.

(Sec. 60010) This section rescinds unobligated funding provided for the EPA to support (1) enhanced standardization and transparency of corporate climate action commitments and plans to reduce greenhouse gas emissions; (2) enhanced transparency regarding progress toward meeting such commitments and implementing such plans; and (3) progress toward meeting such commitments and implementing such plans.

(Sec. 60011) This section rescinds unobligated funding for the EPA program that supports the development, enhanced standardization and transparency, and reporting criteria for environmental product declarations for construction materials and products. The declarations must include measurements of the greenhouse gases associated with all the relevant stages of production, use, and disposal of the construction materials and products.

(Sec. 60012) This section rescinds unobligated funding for the methane emissions reduction program under which the EPA provides financial incentives to encourage the reporting of greenhouse gases, the monitoring of methane, and the reduction of methane emissions from petroleum and natural gas systems. The section also postpones to calendar year 2034 the EPA’s imposition and collection of a charge on methane emissions that exceed certain thresholds.

(Sec. 60013) This section rescinds unobligated funding for the EPA program that awards grants to states, air pollution control agencies, municipalities, and Indian tribes for developing and implementing plans to reduce greenhouse gas air pollution.

(Sec. 60014) This section rescinds unobligated funding for the EPA’s provision of efficient, accurate, and timely reviews, including

developing efficient, accurate, and timely reviews for permitting and approval processes through the hiring and training of personnel;

developing programmatic documents;

procuring technical or scientific services for reviews;

developing environmental data or information systems;

engaging stakeholders;

purchasing new equipment for environmental analysis; and

developing geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement.

(Sec. 60015) This section rescinds unobligated funds for a program under which the EPA identifies and labels construction materials and products that have substantially lower levels of greenhouse gas emissions associated with all the relevant stages of production, use, and disposal of the materials and products.

(Sec. 60016) This section rescinds unobligated funding for environmental and climate justice block grants that benefit disadvantaged communities.

(Sec. 60017) This section rescinds unobligated funding for purposes of developing and implementing recovery plans under the Endangered Species Act.

(Sec. 60018) This section rescinds unobligated funding for the Council on Environmental Quality, including funding for (1) collecting data related to environmental and climate issues, (2) tracking disproportionate burdens and cumulative impacts, and (3) supporting efforts to ensure that any mapping or screening tool is accessible to community-based organizations and community members.

(Sec. 60019) This section rescinds the unobligated balances for the Neighborhood Access and Equity Grant Program of the Federal Highway Administration.

(Sec. 60020) This section rescinds the unobligated funding provided to the Federal Buildings Fund for the conversion of General Services Administration (GSA) facilities to high-performance green buildings.

(Sec. 60021) This section rescinds the unobligated funding provided to the Federal Buildings Fund for acquiring and installing low-carbon materials and products in the construction of federal buildings.

(Sec. 60022) This section rescinds the unobligated funding for the emerging and sustainable technology program of the GSA.

(Sec. 60023) This section rescinds the unobligated funding for the Low Carbon Transportation Materials Grants Program of the Federal Highway Administration (FHWA).

(Sec. 60024) This section rescinds the unobligated funding for the Environmental Review Implementation Funds of the FHWA.

(Sec. 60025) This section provides specified funds for the John F. Kennedy Center for the Performing Arts in Washington, DC, for FY2025, to remain available until September 30, 2029. This funding is for the capital repair, restoration, the maintenance backlog, and security structures of the building and site.

(Sec. 60026) This section modifies the environmental review process under the National Environmental Policy Act of 1969 (NEPA), including by allowing a project subject to NEPA review to opt to pay a fee for the preparation and completion of an environmental assessment or environmental impact statement.

TITLE VII--FINANCE

Subtitle A--Tax

Chapter 1--Providing Permanent Tax Relief for Middle-Class Families and Workers

This chapter makes permanent multiple individual federal tax provisions enacted in 2017 by the Tax Cuts and Jobs Act.

Below are some examples of provisions in this chapter.

(Sec. 70101) This section makes permanent the individual tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

(Sec. 70102) This section permanently increases the base standard deduction amount to $15,750 for single filers, $23,625 for individuals who file as head of the household, and $31,500 for married individuals filing jointly (adjusted annually for inflation).

(Sec. 70103) This section permanently repeals the personal exemption tax deduction for most taxpayers and establishes a temporary (for 2025-2028) personal exemption tax deduction of up to $6,000 for individuals who are 65 years or older (subject to income limitations and identification requirements).

(Sec. 70104) This section increases the maximum amount of the child tax credit to $2,200 per qualifying child (beginning in 2025) and provides that such amount is to be annually adjusted for inflation beginning in 2026.

This section also makes permanent the

phaseout threshold of $200,000 (or $400,000 for joint filers),

$500 nonrefundable child tax credit for each dependent (who is not a qualifying child), and

refundable portion of the child tax credit for taxpayers who meet certain requirements.

Further, this section extends the child tax credit identification requirements applicable to qualifying children and expands such identification requirements to include the taxpayer and taxpayer’s spouse (if filing jointly). Beginning in 2025, under this section, a taxpayer must provide a work-eligible Social Security number for themselves, their spouse (if filing jointly), and for each qualifying child.

(Sec. 70105) This section makes permanent the qualified business income (QBI) tax deduction, expands the phase-in range of the limitations on the QBI tax deduction to $75,000 for non-joint returns and $150,000 for joint filers (from $50,000 for non-joint returns and $100,000 for joint filers), and establishes a minimum QBI tax deduction of $400 for certain taxpayers.

(Sec. 70106) This section increases the base estate tax, gift tax, and generation-skipping transfer tax exemption amount after 2025 to $15 million (from $5 million), adjusted for inflation.

(Sec. 70107) This section makes permanent the increased alternative minimum tax exemption amounts and reduces the alternative minimum taxable income threshold amount to $500,000 ($1 million for joint filers) at which the exemption amounts begin to phase out (adjusted annually for inflation beginning in 2026). (For 2025, the alternative minimum taxable income threshold amounts are $626,350 [$1,252,700 for joint filers], as adjusted for inflation.)

Further, this section increases the percentage rate to 50% (from 25%) at which the alternative minimum tax exemption amount is phased out for individuals whose taxable income exceeds such threshold amount.

(Sec. 70108) This section makes permanent the limit on the itemized tax deduction for home mortgage interest. Under this section, taxpayers who itemize their tax deductions may deduct interest paid on the first $750,000 (or $375,000 for married individuals filing separately) of mortgage debt. (Taxpayers who itemize their tax deductions may deduct interest paid on the first $1 million [or $500,000 for married individuals filing separately] of mortgage debt incurred prior to December 15, 2017.)

This section also allows certain mortgage insurance premiums to be included in the itemized tax deduction for home mortgage interest.

(Sec. 70109) This section makes permanent a provision that limits the itemized tax deduction for unreimbursed personal casualty losses to such losses associated with a federally declared disaster and expands the tax deduction to include certain state- declared disasters.

(Sec. 70110) This section permanently eliminates the itemized tax deduction for miscellaneous expenses except for unreimbursed expenses for books, supplies, and certain other expenses incurred by an individual who is (for at least 900 hours during the school year) a K-12 teacher, instructor, counselor, principal, school aide, interscholastic sports administrator, or coach.

(Sec. 70111) This section replaces the overall limitation on itemized tax deductions applicable for 2025 and after (commonly known as the Pease limitation) with a modified limitation on itemized tax deductions.

(Sec. 70120) This section temporarily increases the limit on the federal tax deduction for state and local taxes (commonly known as the SALT deduction cap) and phases out the tax deduction for individuals with a modified adjusted gross income exceeding a certain threshold amount.

The SALT deduction cap increases in 2025 to $40,000 from $10,000 (or to $20,000 from $5,000 for married individuals filing separately). The SALT deduction cap increases in 2026 to $40,400 ( $20,200 for married individuals filing separately) and, then, by 1% each year after 2026, through 2029. In 2030, under this section, the SALT deduction cap reverts to $10,000 (or $5,000 for married individuals filing separately).

Further, under this section, the amount of state and local taxes allowed as a federal tax deduction is reduced (but not below $10,000 or $5,000 for married individuals filing separately) by 30% of the amount that an individual’s modified adjusted gross income exceeds the threshold amount. The threshold amount in 2025 is $500,000 ( $250,000 for married individuals filing separately). The threshold amount increases in 2026 to $505,000 ($252,500 for married individuals filing separately) and, then, increases by 1% each year after 2026, through 2029.

Chapter 2--Delivering on Presidential Priorities to Provide New Middle-Class Tax Relief

This chapter establishes new tax deductions for qualified tips, qualified overtime, and some interest paid on a passenger vehicle loan. This chapter also establishes a new type of tax-advantaged account, called a Trump account.

Below is a summary of the provisions in this chapter.

(Sec. 70201) This section establishes a new above-the-line tax deduction, through 2028, of up to $25,000 for qualified tip income, which begins to phase out for individuals whose modified adjusted gross income exceeds $150,000 ($300,000 for joint filers). (Above-the-line deductions are subtracted from gross income to calculate adjusted gross income.)

To be eligible for the tax deduction for qualified tip income, individuals must provide a work-eligible Social Security number for themselves and, if married, must file a joint federal tax return.

(Sec. 70202) This section establishes a new above-the-line tax deduction, through 2028, of up to $12,500 ($25,000 for joint filers) for qualified overtime compensation, which begins to phase out for individuals whose modified adjusted gross income exceeds $150,000 ($300,000 for joint filers).

To be eligible for the tax deduction for qualified tip income, individuals must provide a work-eligible Social Security number for themselves and, if married, must file a joint federal tax return.

(Sec. 70203) This section establishes a new tax deduction of up to $10,000 for interest paid on indebtedness incurred in 2025 through 2028 to buy a passenger vehicle (for personal use and subject to certain requirements). The tax deduction phases out for taxpayers with modified adjusted gross income that exceeds $100,000 (or $200,000 for joint filers).

(Sec. 70204) This section establishes a new type of tax-advantaged account, called a Trump account, which is an individual retirement account (IRA) (but not a Roth IRA) for individuals under 18 years old. Up to $5,000 (adjusted for inflation) may be contributed to a Trump account in each year before the account beneficiary reaches the age of 18 years old. (Certain rollovers and qualified general contributions do not count towards the annual contribution limit.)

Distributions from a Trump account may be made once the account beneficiary reaches the age of 18 years old. (Some exceptions apply.)

This section also authorizes a one-time federal government deposit of $1,000 into a Trump account for individuals born after December 31, 2024 and before January 1, 2029 (subject to certain other requirements).

Chapter 3--Establishing Certainty and Competitiveness for American Job Creators

Subchapter A--Permanent U.S. Business Tax Reforms and Boosting Domestic Investment

This subchapter makes a number of changes to business-related federal tax provisions.

Below are some examples of provisions in this subchapter.

(Sec. 70301) This section permanently extends 100% bonus depreciation for property acquired and placed into service (and for certain plants planted or grafted) on or after January 19, 2025. 

(Sec. 70302) This section allows taxpayers to deduct domestic research and experimental expenses in the year such expenses are incurred (rather than requiring taxpayers to capitalize and amortize such expenses over 5 years or, if elected, over 10 years). However, under this section, taxpayers must continue to capitalize and amortize over a 15-year period foreign research and experimental expenses.

Under this section, taxpayers may elect to capitalize and amortize over at least 60 months domestic research and experimental expenses. (Some exclusions apply.)

Further, under this section (1) small business taxpayers (with average annual gross receipts of $31 million or less) may claim a tax deduction for domestic research and experimental expenses retroactively to tax years beginning after December 31, 2021, and (2) taxpayers may elect to accelerate amortization attributable to domestic research and experimental expenditures paid or incurred after December 31, 2021 and before January 1, 2025.

(Sec. 70303) This section reinstates the exclusion of the tax deduction for depreciation, amortization, or depletion from the calculation of adjusted taxable income for purposes of the limitation on the tax deduction for interest expenses for tax years beginning after December 31, 2024.

This section also expands the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses to include interest on floor plan financing of any camper or trailer designed to (1) provide temporary living quarters for recreational, camping, or seasonal use; and (2) be towed by, or affixed to, a motor vehicle.

(Sec. 70306) This section increases to $2.5 million (from $1.25 million in 2025 and adjusted annually for inflation) the maximum amount that may be deducted (expensed) for certain depreciable business assets. This section also increases to $4 million (from $3.13 million in 2025 and adjusted annually for inflation) the dollar amount at which the tax deduction begins to phase out. Both amounts continue to be annually adjusted for inflation.

(Sec. 70307) This section provides for an elective 100% depreciation allowance for nonresidential real property that is placed into service before January 1, 2031, and that meets certain other requirements. (Some limitations apply.)

(Sec. 70308) This section increases the advance manufacturing tax credit to 35% (from 25%) for property placed into service after December 31, 2025.

Subchapter B--Permanent America-First International Tax Reforms

Part I--Foreign Tax Credit

This part makes multiple changes to the foreign tax credit.

Below is an example from one provision in this part.

(Sec. 70311) This section limits the tax deductions a domestic corporate shareholder may allocate to income in the global intangible taxable income (GILTI) category for purposes of determining limit on the foreign tax credit to (1) the tax deduction for 40% of the GILTI amount included by such corporation in gross income and amounts treated as dividends attributable to such amounts and (2) any other deduction directly allocable to such income.

Part II--Foreign-Derived Deduction Eligible Income and Net CFC Tested Income

This part makes multiple changes to the tax deduction allowed to a domestic corporation for foreign-derived intangible income and GILTI.

Below is a summary of the provisions in the part.

(Sec. 70321) This section increases the tax deduction allowed to a domestic corporation for foreign-derived intangible income and GILTI to the sum of (1) 33.34% such corporation’s foreign-derived intangible income, and (2) 40% of such corporation’s GILTI and amounts treated as dividends attributable to such amounts.

Under current law, a domestic corporation is allowed a tax deduction equal to the sum of (1) 37.5% (or 21.875% for tax years beginning in 2026) of such corporation’s foreign-derived intangible income, and (2) 50% (or 37.5% for tax years beginning in 2026) of such corporation’s GILTI and amounts treated as dividends attributable to such amounts. (Some limitations apply.)

(Sec. 70322) This section excludes from deduction-eligible income for purposes of calculating foreign-derived intangible income (and the tax deduction for such income) income or gain from the sale or other disposition (including the deemed sale or other disposition) occurring after June 16, 2025, of (1) property of a type that gives rise to rents or royalties, and (2) any other property that is subject to depreciation, amortization, or depletion by the seller of such property.

Further, under this section, deduction-eligible income must be reduced by expenses and deductions directly related to such income.

(Sec. 70323) This section eliminates the use of a domestic corporation’s deemed tangible income return in determining foreign-derived intangible income and such corporation’s net deemed tangible income return in determining GILTI. As a result, under this section, the term foreign-derived intangible income is renamed foreign-derived deduction eligible income and the term GILTI is renamed net CFC tested income. (In this context, CFC refers to controlled foreign corporation.)

Part III--Base Erosion Minimum Tax

This part makes changes to the base erosion and anti-abuse tax (BEAT).

Below is a summary of the provision in this part.

(Sec. 70331) This section decreases the BEAT rate to 10.5% (from 12.5%) for tax years beginning after 2025. (Under current law, the BEAT rate is 10% for 2025 and 12.5% for tax years after 2025.)

Part IV--Business Interest Limitation

This part makes changes to the calculation of the limitation on the tax deduction of business interest expenses. (Under current law, the tax deduction for business interest expenses is limited to the sum of (1) business interest income for the tax year in which the tax deduction is being claimed, (2) 30% of the taxpayer’s adjusted taxable income, and (3) the taxpayer’s floor plan financing interest.)

Below is a summary of the provisions in this part.

(Sec. 70341) This section provides that limitation on tax deduction of business interest is calculated before capitalizable interest is calculated. (Some exceptions apply.)

(Sec. 70342) This section excludes subpart F income and GILTI from adjusted taxable income for purposes of calculating limitation on tax deduction of business interest.

Part V--Other International Tax Reforms

This part makes permanent and modifies multiple federal tax provisions that impact foreign corporations.

Below are some examples of the provisions in this part.

(Sec. 70351) This section permanently extends of the CFC look-through rule. (Under the CFC look-through rule, certain interest expenses, dividends, rents, and royalties received by one CFC from a related CFC are not treated as foreign personal holding company income [for purposes of calculating subpart F income] if certain other requirements are met.)

(Sec. 70352) This section requires specified foreign corporation (generally a CFC or any foreign corporation with respect to which one or more domestic corporations is a U.S. shareholder) to use the taxable year of their majority U.S. shareholder. (Under current law, a specified foreign corporation may elect a tax year beginning one month earlier than the majority U.S. shareholder.)

Chapter 4--Investing in American Families, Communities, and Small Businesses

Subchapter A--Permanent Investments in Families and Children

This subchapter makes multiple changes to federal tax provisions related to children and dependents.

Below are some examples of the provisions in this subchapter.

(Sec. 70401) This section increases the tax credit for employers that provide child care to their employees. Under this section, the portion of the tax credit for qualified child care expenses increases to 40% (from 25%) or to 50% for eligible small businesses. This section also increases the maximum amount of the tax credit to $500,000 (from $150,000) or $600,000 for eligible small businesses (adjusted for inflation).

(Sec. 70404) This section increases to $7,500 or $3,750 for a married individual filing separately (from $5,000 or $2,500 for a married person filing separately) the exclusion from gross income for amounts paid or incurred by an employer to an employee as part of a dependent care assistance program.

(Sec. 70405) This section increases the non-refundable tax credit for expenses paid by an individual for the care of a child or dependent that enable such individual to be gainfully employed. 

Subchapter B--Permanent Investments in Students and Reforms to Tax-Exempt Institutions

This subchapter makes multiple changes to federal tax provisions related to education and certain educational institutions.

Below are some examples of the provisions in this subchapter.

(Sec. 70411) This section establishes a nonrefundable tax credit of up to $1,700 for cash contributions made by an individual who is a citizen or resident of the United States to a tax-exempt organization that provides scholarships for qualified elementary and secondary school expenses to eligible students (scholarship granting organization), subject to limitations.

(Sec. 70413) This section expands the expenses eligible for tax-free withdrawals from qualified tuition programs (529 plans) to include certain additional expenses related to enrollment or attendance at an elementary or secondary school.

This section also increases to $20,000 (from $10,000) the limit on distributions from a 529 plan used in connection with enrollment or attendance at an elementary or secondary school.

(Sec. 70414) This section expands the expenses eligible for tax-free withdrawals from 529 plans to include tuition, fees, books, supplies, equipment, and other expenses related to the enrollment or attendance in a recognized postsecondary credentialing program.

(Sec. 70415) This section replaces the excise tax of 1.4% imposed on the net investment income of certain private university and college endowments with a new rate structure of 1.4%, 4%, or 8%, depending on several variables including the value of the endowment and the number of full-time students who meet certain other requirements.

Subchapter C--Permanent Investments in Community Development

This subchapter makes multiple changes to certain federal tax incentives related to investing in certain communities and tax deductions for charitable contributions.

Below are examples from this subchapter.

(Sec. 70423) This section permanently extends the New Markets Tax Credit (a tax credit for certain investments in eligible, low-income communities).

(Sec. 70424) This section makes permanent and increases to $1,000 for single filers (from $300) or $2,000 for joint filers (from $600 for joint filers) the tax deduction for charitable contributions made by individuals who do not itemize their federal income tax deductions.

Subchapter D--Permanent Investments in Small Business and Rural America

This subchapter modifies certain reporting requirements related to third-party settlement organizations and makes changes to several other federal tax provisions.

Below are some examples of the provisions in this subchapter.

(Sec. 70432) This section modifies the reporting requirements applicable to third-party settlement organizations (e.g., certain online platforms, apps, and card payment processors). Under this section, such organizations are required to issue Internal Revenue Service (IRS) Form 1099-K to payees who receive more than $20,000 from more than 200 separate transactions. (This section reverses a provision in the American Rescue Plan Act of 2021 that lowered the reporting threshold to $600 with no minimum on the number of transactions, the implementation of which was delayed and phased in by the IRS. For 2025, under current law, such organizations are required to issue IRS Form 1099-K to payees who receive more than $2,500, regardless of the number of transactions.)

(Sec. 70434) This section expands the federal tax deduction for certain film, television, and theatrical production costs to allow a deduction of up to $150,000 of qualified sound recording production costs in the tax year such costs are incurred. A qualified sound recording production is a sound recording that is produced and recorded in the United States. (Under current law, up to $20 million of film, television, and theatrical production costs incurred before 2026 may be deducted.)

The section also extends bonus depreciation to qualified sound recording production costs.

(Under current law, taxpayers may claim a bonus depreciation allowance of between 20% to 100% of the cost of qualified property depending on when such property is placed into service. Section 70301 of the bill extends 100% bonus depreciation through 2029 [or 2030 for some types of property].)

(Sec. 70436) This section eliminates the $200 excise tax imposed on the transfer of certain firearms other than machine guns and destructive devices. As a result, the $200 excise tax is not applicable to silencers, short-barreled rifles and short-barreled shotguns.

Chapter 5--Ending Green New Deal Spending, Promoting America-First Energy and Other Reforms

Subchapter A--Termination of Green New Deal Subsidies

This subchapter terminates multiple energy-related federal tax credits.

Below are some examples of the provisions in this subchapter.

(Sec. 70501) This section terminates the previously-owned clean vehicle tax credit. (Under current law, taxpayers may claim a tax credit of up to $4,000 for the purchase of a qualified previously-owned clean vehicle before 2033.)

(Sec. 70502) This section terminates the clean vehicle tax credit. (Under current law, taxpayers may claim a tax credit of up to $7,500 for the purchase of a qualified new clean vehicle before 2033.)

(Sec. 70503) This section terminates the qualified commercial clean vehicle tax credit. (Under current law, businesses may claim a tax credit of up to $40,000 for the purchase of a commercial clean vehicle before 2033.)

(Sec. 70504) This section terminates the alternative fuel refueling property tax credit. (Under current law, tax credit of up to $1,000 for individuals or up to $100,000 for businesses is allowed for the installation of property before 2033 that is used to store or dispense clean-burning fuel or to recharge electric vehicles.)

(Sec. 70505) This section terminates the energy efficient home improvement tax credit. (Under current law, taxpayers may claim a tax credit of up to $3,200, for certain energy-efficient property purchased and installed into a primary residence before 2033.)

(Sec. 70506) This section terminates the residential clean energy tax credit. (Under current law, taxpayers may claim a tax credit for certain renewable energy equipment for a principal residence before 2034.)

(Sec. 70507) This section terminates the energy efficient commercial buildings tax deduction. (Under current law, taxpayers may claim a deduction for certain energy efficient commercial property placed into service after 2005.)

(Sec. 70508) This section terminates the new energy efficient home tax credit. (Under current law, contractors may claim a business tax credit for constructing an energy-efficient home that is acquired by a person for use as a residence before 2033.)

(Sec. 70511) This section terminates the clean hydrogen production tax credit. (Under current law, a tax credit is available for the production of clean hydrogen by a qualifying facility for which construction begins before 2033.)

Subchapter B--Enhancement of America-First Energy Policy

This subchapter modifies multiple energy-related federal tax provisions and makes changes to the calculation of the corporate alternative minimum tax.

Below are some examples of the provisions in this subchapter.

(Sec. 70521) This section extends the clean fuel production tax credit through 2029 and

requires that clean fuels produced from feedstock use feedstock sourced from the Unites States, Canada, or Mexico;

excludes emissions attributable to an indirect land use change from the calculation of lifecycle emissions estimates (used in part of the calculation of the clean fuel production tax credit); and

requires the Department of the Treasury to provide distinct emission rates for specific feedstocks used to produce clean fuels, including dairy manure, swine manure, and poultry manure.

This section also disallows the clean fuel production tax credit for certain foreign entities and foreign-influenced entities (e.g., taxpayers that make certain types of payments to certain foreign entities).

(Sec. 70523) This section allows corporations to reduce their adjusted financial statement income (for purposes of calculating the corporate alternative minimum tax) to account for certain intangible costs related to oil, gas, or geothermal well drilling and development.

(Sec. 70525) This section provides for a refund of previously imposed and paid excise taxes upon the transfer of nontaxable, indelibly dyed diesel fuel or kerosene used for agricultural, off-road, or other nontaxable purposes.

Subchapter C--Other Reforms

This subchapter eliminates the de minimis exemption for certain imports into the United States and establishes a new civil penalty for using such exemption in a manner that violates U.S. customs laws.

Below is a summary of the provision in this subchapter.

(Sec. 70531) This section eliminates the exemption from certain duties, fees, and processes for imports of up to $800 (commonly referred to as the de minimis exemption), effective July 1, 2027.

Further, this section establishes a civil penalty for entering, introducing, facilitating, or attempting to introduce an article into the United States using the de minimis exemption in a manner that violates U.S. customs laws. The amount of the civil penalty is up to $5,000 for the first violation and up to $10,000 for subsequent violations.

Chapter 6--Enhancing Deduction and Income Tax Credit Guardrails, and Other Reforms

This chapter modifies various federal tax deductions and credits.

Below are examples of the provisions in this subchapter.

(Sec. 70604) This section establishes a 1% excise tax on transfers of payments from one country to another (also known as remittance transfers). (Some exceptions apply).

(Sec. 70606) This section requires a Social Security number to be eligible for the American Opportunity and Lifetime Learning tax credits.

(Sec. 70607) This section directs the Internal Revenue Service to deliver a report to Congress on

the cost of enhancing and establishing public-private partnerships that provide for free tax filing for up to 70% of all taxpayers (calculated by adjusted gross income),

the cost to replace any direct e-file programs run by the Internal Revenue Service,

taxpayer opinions and preferences regarding a taxpayer-funded, government-run tax filing service or a free tax filing service provided by the private sector,

assessment of the feasibility of providing simple and consistent options across participating tax filing providers, and
the cost of developing and running a free direct e-file tax return system..

Subtitle B--Health 

Chapter 1--Medicaid

Subchapter A--Reducing Fraud and Improving Enrollment Processes

(Sec. 71103) This section requires the Centers for Medicare & Medicaid Services (CMS) to establish a centralized system for states to check whether enrollees are simultaneously enrolled in Medicaid or the Children’s Health Insurance Program (CHIP) in multiple states. 

Beginning no later than 2027, states must regularly obtain the addresses of Medicaid and CHIP enrollees from specified authorized sources. Beginning no later than FY2030, states must report on at least a monthly basis the Social Security numbers of enrollees to the CMS' newly established system. The CMS must notify states on at least a monthly basis of individuals who are enrolled in multiple states so that states may take appropriate action.

The section provides funds for FY2026 and FY2029 for the CMS to establish and maintain the new system, respectively.

(Sec. 71104) This section requires state Medicaid programs to check, beginning in 2028, the Social Security Administration's Death Master File on at least a quarterly basis to determine whether Medicaid enrollees are deceased.

(Sec. 71105) This section provides statutory authority for the requirement that state Medicaid programs check, as part of the provider enrollment and reenrollment process, whether providers are deceased through the Social Security Administration's Death Master File. Beginning in 2028, the section requires states to continue to check this database on at least a quarterly basis after providers are enrolled.

(Sec. 71107) This section requires state Medicaid programs to redetermine every six months, beginning with the first quarter after December 31, 2026, the eligibility of individuals who are enrolled in Medicaid as part of the Medicaid expansion population under the Patient Protection and Affordable Care Act. (The act allows states to extend Medicaid coverage to all adults under the age of 65 with incomes of up to 138% of the federal poverty level, including able-bodied adults without dependent children.)

The section provides funds for FY2026 for the CMS to implement these provisions.

(Sec. 71109) This section generally restricts, beginning in FY2027, federal payment for Medicaid and CHIP to services for individuals who are U.S. residents and are either U.S. citizens, lawful permanent residents, Cuban-Haitian entrants, or Compact of Free Association migrants lawfully residing in the United States.

The section provides funds for FY2026 for the CMS to implement these provisions.

(Sec. 71110) This section limits, beginning in FY2027, the Medicaid federal matching rate for emergency services provided to individuals who are not lawfully residing in the United States to the same matching rate as would otherwise apply for such services (rather than the enhanced federal matching rate for states that have expanded Medicaid).

The section provides funds for FY2026 for the CMS to implement these provisions.

Subchapter B--Preventing Wasteful Spending

(Sec. 71112) This section specifies that, beginning with the first quarter after December 31, 2026, Medicaid coverage may begin retroactively (1) for individuals in the Medicaid expansion population, one month prior to the application filing date; and (2) for all other individuals, two months prior to the application filing date. Additionally, CHIP coverage may retroactively begin two months prior to the application filing date. (Currently, coverage may begin three months prior to the application filing date.)

The section provides funds for FY2026 for the CMS to implement these provisions.

(Sec. 71113) This section prohibits federal Medicaid payment for one year to nonprofit health care providers that serve predominantly low-income, medically underserved individuals (i.e., essential community providers) if the provider (1) primarily furnishes family planning services, reproductive health, and related care; (2) offers abortions in cases other than that of rape, incest, or life-threatening conditions for the woman; and (3) in FY2023, received federal and state Medicaid payments totaling more than $800,000.

The section provides funds for FY2026 for the CMS to implement these provisions.

Subchapter C--Stopping Abusive Financing Practices

(Sec. 71114) This section requires states that had not chosen to expand Medicaid pursuant to the Patient Protection and Affordable Care Act prior to March 11, 2021, to do so by January 1, 2026, in order to receive the corresponding enhanced federal matching rate.

(Sec. 71115) This section generally limits Medicaid provider taxes beginning in FY2027.

Under current law, states may impose a provider tax of up to 6% of net patient service revenues to potentially receive additional federal matching funds. The section precludes states that have not expanded Medicaid from increasing the rate of a provider tax beyond that currently in effect in order to qualify for federal matching funds. For states that have expanded Medicaid, a provider tax may not exceed the current rate or a specified rate, whichever is lower; the maximum rate gradually decreases from FY2028-FY2032, with a maximum rate of 3.5% beginning in FY2032 (these limits do not apply to nursing and intermediate care facilities, which are instead limited to current rates). The section additionally precludes states from imposing a new provider tax if there is not already one in effect.

The section provides funds for FY2026 for the CMS to implement these provisions.

(Sec. 71116) This section provides funds through FY2033 for the CMS to revise regulations so as to limit state-directed payments for inpatient hospital services, outpatient hospital services, nursing facility services, or qualified practitioner services at an academic medical center under Medicaid managed care contracts to the payment rate for services under Medicare, rather than the average commercial rate. For states that cover the Medicaid expansion population, payment is limited to 100% of the Medicare rate; for other states, payment is limited to 110% of the Medicare rate.

Subchapter D--Increasing Personal Accountability

(Sec. 71119) This section requires, beginning not later than the first quarter after December 31, 2026 (or earlier, at the option of the state), individuals who are eligible for Medicaid as part of the Medicaid expansion population to engage in community service, work, or other activities in order to qualify for Medicaid.

Specifically, the section requires these individuals to, on a monthly basis, (1) work at least 80 hours, (2) complete at least 80 hours of community service, (3) participate in a work program for at least 80 hours, (4) be enrolled at least half-time in an educational program, or (5) engage in any combination thereof for a total of at least 80 hours. Individuals may also qualify if they have a monthly income (or, for seasonal workers, an average monthly income over six months) that is at least as much as the equivalent of minimum wage multiplied by 80 hours.

Individuals who are applying for Medicaid must demonstrate compliance with these requirements for one to three months (as determined by the state) consecutively and immediately prior to filing an application; individuals who are already enrolled in Medicaid must demonstrate compliance for one month or more (as determined by the state), whether or not consecutive, during the period between the individual’s last eligibility determination and the next scheduled eligibility determination. 

States must verify an individual’s compliance upon a determination or redetermination of eligibility but may also choose to verify compliance more frequently. States may not waive the new requirements. However, states may choose to provide an exception for individuals experiencing short-term hardships (e.g., hospitalization).

The section excludes certain individuals from these requirements, including those with serious medical conditions or dependent children aged 13 or younger. 

Upon request, the CMS may exempt a state from fully implementing these requirements until December 31, 2028. States requesting an exemption must demonstrate good faith efforts to comply with the requirements and provide a detailed timeline for implementation.

The section provides funds for FY2026 for states and the CMS to implement these requirements.

(Sec. 71120) This section requires, beginning in FY2029, states to institute cost-sharing requirements for individuals who are eligible for Medicaid as part of the Medicaid expansion population and whose family income exceeds the federal poverty line. Cost sharing may not exceed $35 for an item or service; total cost sharing for all individuals in a family may not exceed 5% of the family’s income. 

The requirements do not apply to (1) services for which cost sharing is already prohibited (e.g., emergency services); (2) primary care, mental health, or substance use disorder services; or (3) services provided by federally qualified health centers, certified community behavioral health clinics, or rural health clinics. States may allow providers to condition the provision of services upon the payment of any required cost sharing.

The section provides funds for FY2026 for the CMS to implement these provisions.

Subchapter E--Expanding Access to Care

(Sec. 71121) This section authorizes additional home and community-based services (HCBS) waivers (also known as Section 1915(c) waivers) for state Medicaid programs beginning on July 1, 2028. States may seek waivers to provide HCBS to individuals without the need for certain determinations as to whether an individual requires hospital or institutional care (as is required for current waivers). States must establish other needs-based criteria for such services.

The section provides funds for FY2026 for the CMS to implement these provisions. It also provides funds for FY2027 to support state HCBS programs.

Chapter 2--Medicare

Subchapter A--Strengthening Eligibility Requirements

(Sec. 71201) This section generally restricts Medicare eligibility to U.S. citizens, lawful permanent residents, Cuban-Haitian entrants, and Compact of Free Association migrants lawfully residing in the United States. The Social Security Administration must identify Medicare enrollees who do not meet these requirements and terminate their enrollment within 18 months of this section’s enactment.

Subchapter B--Improving Services for Seniors

(Sec. 71203) This section modifies certain provisions under the Medicare Drug Price Negotiation Program with respect to orphan drugs.

The Medicare Drug Price Negotiation Program requires the CMS to negotiate the prices of certain prescription drugs under Medicare beginning in 2026. Among other requirements, drugs must have had market approval for at least 7 years (for drug products) or 11 years (for biologics) to qualify for negotiation. The program does not apply to orphan drugs that are approved to treat only one rare disease or condition.

The section modifies these provisions so as to exclude any period in which a drug was an orphan drug from market approval calculations. It also excludes orphan drugs that are approved to treat more than one rare disease or condition from the program. The changes take effect in 2028.

Chapter 3--Health Tax

Subchapter A-- Improving Eligibility Criteria

This subchapter modifies eligibility and verification requirements for the premium tax credit (which may be used to purchase health insurance on an exchange).

Below is a summary of the provisions in this subchapter.

(Sec. 71301) This section limits a lawfully-present alien’s eligibility for the premium tax credit to

an alien who is lawfully admitted for permanent residence;

an alien who has been granted the status of Cuban and Haitian entrant; or

an individual who is lawfully residing in the United States in accordance with the Compacts of Free Association between the United States and Micronesia, the Marshall Islands, and Palau.

(Sec. 71302) This section repeals the rule that allows certain lawfully-present aliens who have a household income of less than 100% of the federal poverty level and are ineligible for Medicaid (based on the individual’s alien status) to claim the premium tax credit.

Subchapter B--Preventing Waste, Fraud, and Abuse

This subchapter requires verification of certain information supplied by individuals for purposes of determining eligibility for the premium tax credit, limits use of the premium tax credit, and expands recapture of excess advance payments of the premium tax credit.

Below is a summary of the provisions of this subchapter.

(Sec. 71303) This section requires the verification of certain information for an individual to enroll in a health insurance plan through a health insurance exchange and to generally qualify for the premium tax credit. (Under current law, eligible individuals are allowed a premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges.)

Specifically, under this section, the following information must be verified

household income and family size,

whether the individual is an eligible alien,

any health coverage status or eligibility for coverage,

place of residence, and

any other information required by the Department of the Treasury.

(Sec. 71304) This section provides that the premium tax credit is not allowed for any health insurance plan enrolled in through a health insurance exchange during a special enrollment period provided by such exchange (1) on the basis of the relationship between the individual’s expected household income to the federal poverty level and (2) not in connection with with the occurrence of an event or change in circumstances specified by the Department of Health and Human Services for such purposes.

(Sec. 71305) This section eliminates the limit on the recapture of excess advance payments of the premium tax credit and, accordingly, allows the full amount of any such excess payments to be recaptured. (Under current law, individuals with incomes below 400% of the federal poverty level may be required to pay back only a portion of any excess advance payment of the premium tax credit.)

Subchapter C--Enhancing Choice for Patients

This subchapter expands health savings account (HSA) eligibility requirements.

Below is a summary of the provisions in this subchapter.

(Sec. 71306) This section allows individuals to establish and make tax-deductible contributions to a health savings account (HSA) if covered by a health insurance plan that provides telehealth and other remote care services without requiring a deductible but otherwise meets the requirements of a high-deductible health plan (HDHP).

(Sec. 71307) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a bronze-level or catastrophic health insurance plan through a health insurance exchange.

(Sec. 71308) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a direct primary care service arrangement with a fixed period fee that does not exceed $150 a month (or $300 a month if the arrangement covers more than one individual). The amounts are adjusted annually for inflation. (Some limitations apply.)

Chapter 4--Protecting Rural Hospitals and Providers

(Sec. 71401) This section provides funds through FY2030 for a program that supports the provision of health care in rural areas. Under the program, states may apply for financial allotments to improve the access and quality of care of services in rural areas, such as through enhanced technology, strategic partnerships, and workforce training. 

Subtitle C--Increase in Debt Limit

(Sec. 72001) This section increases the statutory debt limit by $5 trillion. (The debt limit is the amount of money that the Department of the Treasury may borrow to fund federal operations.)

Subtitle D--Unemployment

(Sec. 73001) This section prohibits payments under federal unemployment programs to individuals whose wages are $1 million or more. Such programs must include a method for individuals to certify that their income does not exceed this limit. State agencies that administer such programs must verify income information, to the extent possible, and provide for the recovery of any overpayments. 

TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS

This title makes various changes to higher education, particularly to the federal student loan system.

Subtitle A--Exemption of Certain Assets

(Sec. 80001) This section includes an exemption for certain family farms, small businesses, and commercial fishing businesses on the Free Application for Federal Student Aid (FAFSA) form. This exemption applies to the net worth of (1) a family farm on which the family resides, (2) a small business with not more than 100 full-time or full-time equivalent employees that is owned and controlled by the family, or (3) a commercial fishing business and related expenses (e.g., fishing vessels and permits) owned and controlled by the family.

Subtitle B--Loan Limits

This subtitle makes various changes to federal student loans. 

(Sec. 81001) This section terminates the ability of graduate or professional students to receive Direct PLUS Loans (i.e., Grad PLUS Loans) beginning on July 1, 2026.

The section sets annual and aggregate borrowing limits for graduate and professional students. In particular, the section establishes the aggregate loan limit for Direct Unsubsidized Loans as $100,000 for a graduate student (in addition to the amount borrowed for undergraduate education) and $200,000 for a professional student (in addition to the amount borrowed for undergraduate education).

The section also places certain restrictions on Parent PLUS Loans beginning on July 1, 2026. In particular, the section sets an annual loan limit of $20,000 that may be borrowed on behalf of a dependent student and a lifetime borrowing limit of $65,000 per dependent student.

The section also establishes new annual and aggregate loan limits for borrowers beginning on July 1, 2026. For example, the section sets an overall aggregate lifetime borrowing limit of $257,500 for any single borrower across federal loan types (except for Federal Direct PLUS Loans and Parent PLUS Loans).

The section provides an exception to the loan limits described in this section (of up to three academic years) for a student who is already enrolled in a program of study and received a loan for the program.

The section allows institutions of higher education (IHEs) to set lower loan limits.

Subtitle C--Loan Repayment

This subtitle revises loan repayment options for federal student loans.

(Sec. 82001) This section terminates all current student loan repayment plans for new loans disbursed on or after July 1, 2026.

The Department of Education (ED) may only offer borrowers two options for repayment of federal student loans: a standard repayment plan (with the length of the repayment term determined by the total amount borrowed) and an income-based repayment plan (to be known as the Repayment Assistance Plan).

The section includes a transition to income-based repayment plans. Beginning on July 1, 2028, a borrower with a loan that is in a repayment status in accordance with, or an administrative forbearance associated with, an income-contingent repayment plan (e.g., current borrowers on the Saving on a Valuable Education, or SAVE, plan) must begin repaying the loan under a new repayment plan. If a borrower does not select a plan, ED must enroll the borrower in either the Repayment Assistance Plan or the standard repayment plan.

(Sec. 82002) This section eliminates economic hardship and unemployment deferments beginning on July 1, 2027. It also reduces the total period a borrower may be in forbearance.

(Sec. 82003) This section allows borrowers to rehabilitate a defaulted loan twice (currently, only once). However, beginning on July 1, 2027, the borrower must pay a minimum payment amount of $10.

(Sec. 82004) This section allows payments under the new Repayment Assistance Plan to count as qualifying payments for purposes of the Public Service Loan Forgiveness program.

(Sec. 82005) This section provides funding to ED for administrative costs, including for the costs of student loan servicing.

Subtitle D--Pell Grants

This subtitle makes changes to Pell Grants.

(Sec. 83001) This section requires foreign income that is exempt from taxation or foreign income for which an individual receives a foreign tax credit to be included in the adjusted gross income calculation for purposes of calculating eligibility for Pell Grants.

Students with a student aid index that equals or exceeds twice the amount of the total maximum Pell Grant are ineligible for Pell Grants, regardless of their adjusted gross income. 

The section’s changes take effect beginning on July 1, 2026.

(Sec. 83002) This section requires ED to award Workforce Pell Grants to students enrolled in eligible workforce programs. Eligible programs are those that provide at least 150 clock hours (but less than 600 clock hours) of instruction during a minimum of 8 weeks (but less than 15 weeks).

The section’s changes take effect beginning on July 1, 2026.

(Sec. 83003) This section increases funding for Pell Grants for FY2026.

(Sec. 83004) This section makes a student ineligible for Pell Grants if the student receives grant aid from nonfederal sources (e.g., states, IHEs, or private sources) in an amount that equals or exceeds the student's cost of attendance.

The section's changes take effect beginning on July 1, 2026.

Subtitle E--Accountability

(Sec. 84001) This section requires IHEs participating in federal student loan programs to meet cohort median earning requirements. Specifically, the section prohibits an IHE from using federal funds for student enrollment in low-earning outcome programs. Low-earning outcome programs are educational programs in which the graduating cohorts earn less as working adults compared to those with lesser degrees (e.g., a high school diploma instead of a bachelor's degree).

If an educational program does not meet the cohort median earning requirements, the IHE must promptly notify each student enrolled in the program.

ED must establish a process for an IHE with an educational program that has lost eligibility for federal funds to be able to apply to regain eligibility for such funds.

IHEs must comply with these requirements beginning on July 1, 2026.

Subtitle F--Regulatory Relief

(Sec. 85001) This section delays until July 1, 2035, ED regulations pertaining to borrower defense to repayment. It restores those regulations that were in effect on July 1, 2020.

(Sec. 85002) This section delays until July 1, 2035, ED regulations pertaining to closed school discharges. It restores those regulations that were in effect prior to changes made in November 2022.

Subtitle G--Garden of Heroes

(Sec. 86001) This section provides additional funding for FY2025 to the National Endowment for the Humanities (1) to establish and maintain a statuary park named the National Garden of American Heroes; (2) to procure statues for the National Garden of American Heroes; and (3) for events, celebrations, and activities related to the 250th anniversary of America’s founding.

Subtitle H--Office of Refugee Resettlement

(Sec. 87001) This section provides additional funding for FY2025 to the Office of Refugee Resettlement for specified activities, such as background checks and home studies of potential sponsors of unaccompanied children.

TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

Subtitle A--Homeland Security Provisions 

This subtitle provides funding for border security.

(Sec. 90001) This section provides funding to U.S. Customs and Border Protection (CBP) for construction, installation, or improvement to barriers; access roads; detection technology; and other work to prepare the ground at or near the U.S. border. 

(Sec. 90002) This section provides funding for CBP personnel, bonuses, facilities, and fleet vehicles.

(Sec. 90003) This section provides funding to the U.S. Immigration and Customs Enforcement (ICE) for increased capacity in detention facilities for the purposes of detaining adults and families who are non-U.S. nationals (aliens under federal law).

(Sec. 90004) This section provides funding for CBP inspection and surveillance equipment, screenings (including of unaccompanied children), rapid air and marine response capabilities, vetting, and activities to prevent drug trafficking.

(Sec. 90005) This section provides funding to the Federal Emergency Management Agency (FEMA) (1) to assist state and local authorities to detect, identify, track, or monitor unmanned aircraft systems; (2) for security, planning, and other costs related to the 2026 FIFA World Cup; (3) for security, planning, and other costs related to the 2028 Olympics; and (4) for the Operation Stonegarden grant program.

The section also establishes a fund in the Department of Homeland Security (DHS) to reimburse states and units of local government for costs associated with border security actions taken on or after January 20, 2021. Specifically, DHS shall provide grants for (1) barriers along the southern U.S. border, (2) the detection and interception of certain individuals and illicit drugs, and (3) the relocation of non-U.S. nationals (aliens under federal law) from small population centers to other domestic locations. 

(Sec. 90006) This section provides funding to FEMA to reimburse state and local law enforcement for extraordinary costs associated with protecting a residence of the President. 

(Sec. 90007) This section provides funding to DHS for reimbursement of costs incurred for activities in support of safeguarding U.S. borders.

Subtitle B--Governmental Affairs Provisions

This subtitle revises the Federal Employees Health Benefits (FEHB) Program.

FEHB Protection Act of 2025

(Sec. 90101) This section requires the Office of Personnel Management (OPM) to issue regulations and implement a process to verify (1) the veracity of any qualifying life event through which an enrollee in the FEHB Program seeks to add a family member for coverage under the program; and (2) that, when an enrollee seeks to add a family member to the FEHB program, the individual added is a qualifying family member.

The section also requires OPM to conduct a comprehensive audit regarding family members enrolled in the FEHB program. In conducting this audit, OPM must review marriage certificates, birth certificates, and other appropriate documents to determine eligibility.

OPM must develop a process to disenroll or remove an individual who is not eligible to participate in the FEHB program. 

The section allows for some Employees Health Benefits Fund amounts to be available to OPM in FY2026 to carry out eligibility verification requirements and audit activities.

(Sec. 90102) This section provides FY2026 funding for the Pandemic Response Accountability Committee to support oversight of the coronavirus response and of funds provided pertaining to the coronavirus pandemic. The section extends the committee to September 30, 2034 (currently, the committee terminates on September 30, 2025).

(Sec. 90103) This section provides FY2025 funding to the Office of Management and Budget for purposes of finding budget and accounting efficiencies in the executive branch.

TITLE X--COMMITTEE ON THE JUDICIARY

Subtitle A--Immigration and Law Enforcement Matters

Part I--Immigration Fees

This part establishes additional or increased fees for various immigration programs and procedures.

These fees include those required for

applications for asylum,

employment authorizations for asylees, parolees, and individuals granted temporary protected status,

individuals paroled into the United States,

individuals applying for special immigrant juvenile status,

individuals applying for Temporary Protected Status, and

individuals issued a nonimmigrant visa.

(Sec. 100013) This section establishes various fees for specified judicial and adjudicative filings, including

filing in immigration court an application for waiver of grounds of inadmissibility,

filing an appeal of a decision of an immigration judge or a DHS officer, and

a practitioner filing an appeal in a disciplinary case. 

Part II--Immigration and Law Enforcement Funding

This part provides funding for various immigration agencies and offices for purposes of immigration enforcement, removal, maintenance of facilities, and program operations. This includes the Department of Homeland Security, the Executive Office for Immigration Review, U.S. Immigration and Customs Enforcement, U.S. Customs and Border Protection, the Department of Justice, and the performance of immigration officer functions by state officers and employees.

(Sec. 100056) This section provides funding for the Bureau of Prisons for salaries, benefits, and facilities. 

(Sec. 100057) This section provides funding for the U.S. Secret Service for personnel, bonuses, training facilities, programming, and technology.

Subtitle B--Judiciary Matters

(Sec. 100101) This section provides funding for the Administrative Office of the U.S. Courts for the purpose of analysis and reporting regarding the state of the dockets of the courts, including metrics regarding judicial orders for non-party relief against the federal government.

(Sec. 100102) This section provides funding for the Federal Judicial Center for the purpose of carrying out continuing education and training for personnel of the judicial branch, including training on non-party relief against the federal government.

Subtitle C--Radiation Exposure Compensation Matters

This subtitle reestablishes and expands a program to compensate individuals who were exposed to radiation during certain nuclear testing or uranium mining and who subsequently developed medical conditions, particularly cancer. This program compensated individuals who were present in a designated geographic area during a period of nuclear testing and certain individuals employed in uranium mining. The subtitle

expands the designated areas to include Idaho and New Mexico and additional areas in Nevada and Utah;

makes more individuals who worked in uranium mining eligible for the program;

increases the amount of compensation awarded to new eligible claimants; and

extends through 2028 the fund that supports this program and extends through 2027 the statute of limitations for filing claims (the program expired in 2024).

The subtitle also expands this program to compensate individuals located in specified areas of Missouri, Tennessee, Alaska, or Kentucky associated with waste from the Manhattan Project and who subsequently developed specified types of cancer. 

action_date: 2025-07-04
text: 
This act reduces taxes, reduces or increases spending for various federal programs, increases the statutory debt limit, and otherwise addresses agencies and programs throughout the federal government. 

It is known as a reconciliation bill and includes legislation submitted by several congressional committees pursuant to provisions in the FY2025 congressional budget resolution (H Con. Res. 14) that directed the committees to submit legislation to the House or Senate Budget Committee that will increase or decrease the deficit and increase the statutory debt limit by specified amounts. (Reconciliation bills are considered by Congress using expedited legislative procedures that prevent a filibuster and restrict amendments in the Senate.)

TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

This title addresses a wide range of Department of Agriculture (USDA) programs, including by changing the Supplemental Nutrition Assistance Program (SNAP) and extending programs authorized by the Agriculture Improvement Act of 2018 (commonly known as the 2018 farm bill).

Subtitle A--Nutrition

(Sec. 10101) This section prohibits USDA from increasing the cost of the Thrifty Food Plan (TFP) based on a reevaluation of the contents of the TFP (i.e., the market basket of goods). Further, any annual adjustment to the cost of the plan must be based on the Consumer Price Index for All Urban Consumers.

As background, USDA created the TFP (the cost of purchasing a nutritionally adequate low-cost diet), which is used to determine maximum monthly benefits under the Supplemental Nutrition Assistance Program (SNAP). USDA calculates the cost of the TFP each year to account for food price inflation. Maximum allotments are set at the monthly cost of the TFP for a four-person family, adjusted for family size. Under a provision of the 2018 farm bill, USDA must reevaluate the market basket of goods every five years based on current food prices, food composition data, consumption patterns, and dietary guidance.

(Sec. 10102) This section increases the work requirements for certain SNAP recipients who are able-bodied adults.

As background, SNAP recipients who are able-bodied adults without dependents (ABAWDs) currently have work-related requirements in addition to the general SNAP work registration and employment and training requirements. SNAP law limits benefits to ABAWDs to 3 months out of a 36-month period, unless the participant meets the additional work-related requirements.

This section raises the age for those who must meet these additional work requirements to include adults who are 65 years old and younger, whereas these requirements currently apply to adults who are 55 years old and younger.

This section requires parents and household members to meet the additional work requirements (similar to someone who does not have a dependent child) if the child is age 14 and older. Currently, those with a child under the age of 18 are exempt from the requirements.

This section excludes from the additional work requirements SNAP recipients who are Indians, Urban Indians, or California Indians (as these terms are defined by the Indian Health Care Improvement Act). 

In addition, the section generally requires homeless individuals, veterans, and certain foster care individuals to meet these work requirements. Foster care individuals are those who are 24 years old or younger and were in foster care on the date of attaining 18 years of age or a higher age. Specifically, this section eliminates the current exclusion from the additional work requirements for these individuals based on this status.

Finally, this section limits the ability of a state to temporarily suspend the three-month time limit for SNAP benefits for ABAWDS in areas with high unemployment or an insufficient number of jobs. Under current law, the ABAWD waiver program allows states to request a temporary waiver of the three-month SNAP benefit limit. States may receive a waiver based on an area having an unemployment rate of over 10% or an insufficient number of jobs.

The section repeals the provision that allows a state waiver if that area does not have a sufficient number of jobs. Further, the section allows Alaska and Hawaii to qualify for the state exemption with an unemployment rate that is at or above 1.5 times the national unemployment rate, effectively lowering the unemployment rate that these states must meet to receive a waiver. 

(Sec. 10103) This section generally eliminates the ability of a household to use participation in certain energy assistance programs to determine SNAP income eligibility unless the household includes an elderly or disabled member. 

As background, a household may deduct a portion of their housing and utility costs from their income (i.e., the excess shelter expense deduction) when determining SNAP benefits. Under current law, a household that receives a certain level of energy assistance through the Low Income Home Energy Assistance Program (LIHEAP) or a similar energy assistance program may deduct a set allowance. This set allowance (i.e., Standard Utility Allowance or SUA) represents low-income household utility costs in the state or local area. Using this allowance makes qualifying for an excess shelter deduction more likely.

This section eliminates the use of the set allowance for households without elderly or disabled members, which may decrease the availability of the excess shelter deduction and reduce the SNAP benefits for these households.

(Sec. 10104) This section prohibits a household from using any internet connection service fees as part of their housing and utility costs for the purposes of determining the size of household SNAP benefits, thus potentially reducing the SNAP benefits for these households.

As background, a household may deduct a portion of their housing and utility costs from their income (i.e., the excess shelter expense deduction) when determining SNAP benefits. Under current law, household expenses may include internet connection service fees.

(Sec. 10105) This section establishes state-matching fund requirements for the cost of SNAP program allotments beginning in FY2028. The state contribution ranges from 0% to 15% for the cost of SNAP program allotments and is based on the state’s SNAP payment error rate. Currently, the state match is 0%.

For FY2028, a state may elect either the FY2025 or FY2026 payment error rate to calculate its state-matching fund requirement. For FY2029 and each fiscal year thereafter, the state match is calculated using the payment error rate for the third fiscal year preceding the fiscal year for which the state share is being calculated.

Any state that has a payment error rate that is less than 6% will have a state match of 0% (i.e., the state does not have to contribute). 

A state with a payment error rate that is

at least 6% but less than 8% must contribute 5%,

at least 8% but less than 10% must contribute 10%, and

10% or greater must contribute 15%.

In general, the effective date for the state-matching fund requirements is the beginning of FY2028. However, any state that has an error rate above a certain level will have implementation delayed until FY2029 or FY2030. Specifically, the implementation date is delayed for states where the state's error rate multiplied by 1.5 equals or exceeds 20% in FY2025 or FY2026. For such states, the implementation date is delayed until FY2029 if the specified error rate occurs in FY2025 and until FY2030 if the error rate occurs in FY2026. 

(Sec. 10106) This section reduces the amount that USDA may pay a state agency for administrative costs for the operation of SNAP to 25% of all administrative costs beginning in FY2027 and for each fiscal year thereafter. Currently, USDA must pay 50% of all administrative costs, thus this section increases the state share of administrative costs from 50% to 75%.

(Sec. 10107) This section eliminates funding for the SNAP Nutrition Education and Obesity Prevention Grant Program (SNAP-ED). SNAP state and local agencies administer this federal grant program. SNAP-Ed uses evidence-based, public health projects and interventions with the goal to implement a nutrition education and obesity prevention program for eligible individuals that promotes healthy food choices and physical activity consistent with the most recent Dietary Guidelines for Americans.

(Sec. 10108) This section eliminates SNAP eligibility for certain individuals who are classified as an alien under federal law and legally present in the United States, including those who have qualified for conditional entry under the asylum and refugee laws or based on urgent humanitarian reasons (e.g., a survivor of domestic violence or human trafficking).

The section maintains SNAP eligibility for individuals who reside in the United States and are (1) U.S. citizens or U.S. nationals; (2) lawful permanent residents, with exceptions; (3) aliens who are Cuban or Haitian entrants; or (4) individuals who are lawfully residing in the United States in accordance with the Compacts of Free Association between the United States and Micronesia, the Marshall Islands, and Palau.

Subtitle B-- Forestry

(Sec. 10201) This section rescinds certain funds provided to the Forest Service as part of the Inflation Reduction Act of 2022. For example, this includes the rescission of funds for 

the protection of old-growth forests on National Forest System land,

grants for nonfederal forest landowners for climate mitigation or forest resilience practices,

grants for state and private forestry conservation programs for tree planting, and

administrative costs for the National Forest System to implement these and other related programs.

Subtitle C--Commodities

This subtitle amends and extends commodity support programs.

For example, the subtitle extends the Price Loss Coverage (PLC) program, the Agricultural Risk Coverage (ARC) program, and Dairy Margin Coverage (DMC) through crop year 2031. It also modifies various requirements for the programs.

(Sec. 10301) This section increases the reference prices for specified commodities under the ARC and PLC programs for crop years 2025 through 2030. This change would increase the likelihood of triggering a payment and increase the payments made to eligible producers when triggered.

Beginning in crop year 2031, USDA must increase the reference price so that it is equal to the reference price in the previous crop year multiplied by 1.005. USDA must continue to increase the reference price using this formula for each crop year after 2031, up to a maximum of 113% of the 2030 reference price.

The ARC and PLC programs, administered by the Farm Service Agency, offer financial assistance to eligible agricultural producers, and the reference prices are used to calculate benefits under the programs. The ARC program is an income support program that provides payments to producers triggered when actual crop revenue declines below a specified guarantee level. The PLC program provides income support payments triggered when the effective price for a covered commodity falls below its effective reference price.

(Sec. 10302) This section grants eligible agricultural producers a one-time option to expand and allocate base acre holdings in proportion to average 2019-2023 plantings of covered and noncovered commodities. In general, the Price Loss Coverage and Agriculture Risk Coverage programs make payments per enrolled base acre (i.e., a unit of production associated with specific tracts of farmland in proportion to historical production of certain crops).

This section allows producers to allocate existing unassigned base acres to a covered commodity. The section limits the total existing unassigned and newly granted base acres to no more than 30 million acres, effectively increasing total base acres nationwide from approximately 274 million to approximately 304 million.

(Sec. 10303) This section requires producers to make an election to obtain ARC or PLC on a covered-commodity-by-covered commodity basis through crop year 2031. For the 2025 crop year, this section requires USDA, on a covered commodity-by-covered commodity basis, to make the higher of PLC payments or ARC county coverage payments to the producers on a farm for the payment acres for each covered commodity on the farm.

(Sec. 10304) This section extends the PLC program through crop year 2031.

(Sec. 10305) This section extends the ARC program through the 2031 crop year. It also increases the coverage guarantee level from 86% to 90% of the benchmark revenue and increases the maximum payment amount from 10% to 12.5% of the benchmark revenue. These changes increase the likelihood of triggering a payment and increase the payments made to eligible producers when triggered. 

(Sec. 10306) This section establishes a definition for a qualified pass-through entity, which includes certain partnerships and S corporations (as defined in the Internal Revenue Code) and certain limited liability companies, joint ventures, and general partnerships. It also generally requires these entities to be treated in the same manner as current law treats general partnerships and joint ventures for the purpose of payment limitations. For example, the section replaces an existing exception to payment limitations for joint ventures and general partnerships with an exception for qualified pass-through entities.

(Sec. 10307) This section increases the maximum ARC and PLC payment limit per person from $125,000 to $155,000. A producer is eligible to receive up to $155,000 in peanut payments and up to $155,000 in payments for all commodities except peanuts (i.e., up to $310,000 total for all commodities inclusive). USDA must adjust payment limits for inflation annually beginning with the 2025 crop year.

As background, certain payment limits and eligibility criteria apply to multiple farm programs, including ARC, PLC, and certain disaster assistance programs and conservation programs.

(Sec. 10308) This section waives the adjusted gross income (AGI) limitations for payments or benefits under certain USDA disaster assistance and conservation programs for a person or legal entity that derives a portion of their income from agriculture. Specifically, the exception allows producers and business entities whose AGI exceeds $900,000 to participate in certain disaster assistance and conservation programs if 75% or more of their AGI (i.e., gross income before applying adjustments to calculate the AGI) is derived from eligible agricultural activities.

The eligible activities are farming, ranching, or siviculture activities, including agritourism, direct-to-consumer marketing of agricultural products, and the sale of agricultural equipment owned by such person or entity.

(Sec. 10309) This section extends the Marketing Assistance Loan (MAL) program nonrecourse and recourse loans through the 2031 crop year. It also sets MAL rates for crop years 2026-2031. This section also extends Loan Deficiency Payments (LDPs) through the 2031 crop year. The MAL and LDP programs provide price support to producers when market prices drop below statutory levels.

This section also extends the Special Competitive Provisions for Extra Long Staple (ELS) Cotton program. This program makes payments to eligible mills that use ELS cotton and eligible exporters of ELS cotton.

As background, there are two main species of cotton cultivated for commercial use, upland cotton (which comprises 97% of U.S. production) and extra-long staple (ELS) cotton. U.S.-grown ELS cotton is also referred to as Pima cotton.

(Sec. 10310) This section changes how world prices for upland and ELS cotton are calculated for the purpose of repaying MALs.

(Sec. 10311) This section increases the payments to domestic users of upland cotton who participate in the Economic Adjustment Assistance for Textile Mills program. This program makes monthly payments to eligible domestic cotton mills. The payments must be used for capital investments that contribute to domestic manufacturing of upland cotton.

(Sec. 10312) This section makes several modification to USDA's sugar program. As background, the U.S. sugar program supports the U.S. sugar industry (i.e., producers and processors of sugarcane and sugar beets) by providing Marketing Assistance Loans (MALs) to sugar processors, restricting domestic supply of sugar with marketing allotments for sugar processors, and limiting sugar imports through tariff-rate quotas.

Specifically, this section increases the marketing loan rate for raw sugar cane processors and increases the rate for beet sugar processors for crop years 2025-2031.

This section also increases the storage rates USDA pays to processors for forfeited refined sugar and forfeited raw cane sugar. Under current law, when sugar is used to collateralize a MAL loan and is forfeited by a sugar processor, USDA must provide payments to the processors who store the forfeited sugar.

This section extends the provisions for the flexible marketing allotments for sugar through crop year 2031. In addition, in operating sugar support programs, USDA must prioritize sugar beet processors if marketing allotments are adjusted higher. Additionally, if sugar beet marketing allotments need to be adjusted, USDA must reassign sugar beet marketing allotments within 30 days of the publication of USDA's January World Agricultural Supply and Demand Estimates (WASDE) report. 

Finally, USDA must study whether the establishment of additional terms and conditions with respect to refined sugar imports is necessary and appropriate and submit a report to Congress. Based on the study, USDA may issue regulations to establish additional terms and conditions for refined sugar imports.

(Sec. 10313) This section extends Dairy Margin Coverage (DMC) through crop year 2031 and provides for a number of changes to the DMC program.

As background, DMC allows participating milk producers to buy a guaranteed margin for their milk production. The DMC program pays participating producers the difference between a producer-selected guarantee and the national milk margin (all-milk price minus an average feed cost ration). Margin payments are based on producers' milk production history, not actual milk marketings (i.e., quantity of milk sold). Producers pay annual premium rates based on two tiers of production history.

Changes to the program include

altering how USDA determines production history to remove the consideration of production at the time the dairy operation first registered to participate in the DMC program;

setting production history for the DMC program as the highest annual milk marketings for participating dairies during calendar year 2021, 2022, or 2023;

raising the coverage limit to the first 6 million pounds of production history for both Tier I and Tier II premiums, from the first 5 million pounds; and

allowing producers to receive a 25% premium discount for a one-time premium election covering calendar years 2026-2031.

(Sec. 10314) This section requires USDA to make available specified funds to carry out this subtitle. It also requires USDA to use specified funds to administer a mandatory survey of dairy product manufacturers' production costs and product yield information. USDA must publish the results of the surveys biennially. 

Subtitle D--Disaster Assistance Programs

This subtitle expands the types of eligible losses covered under the permanently authorized agricultural disaster assistance programs, which include the Livestock Indemnity Program; the Livestock Forage Disaster Program; the Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program; and the Tree Assistance Program. This subtitle also increases coverage levels and lowers the threshold for triggering payments for certain eligible losses.

(Sec. 10401) Under the Livestock Indemnity Program (LIP), this section increases the payment rate to 100%, from 75%, for losses due to predation (i.e., attacks by animals reintroduced into the wild by the federal government or protected by federal law). This section also authorizes USDA to allow eligible producers to submit documentation to assist in determining an animal's market value. Further, the section expands LIP coverage to include unborn livestock as LIP- eligible livestock losses. LIP provides indemnity payments to eligible livestock owners and contract growers for livestock deaths in excess of normal mortality or reduced sales prices due to specified events (e.g., adverse weather, disease, or animal attack).

Under the Livestock Forage Disaster Program (LFP), this section expands the types of eligible drought conditions covered and increases payments for certain eligible drought conditions under the program. The LFP program makes payments to eligible livestock producers who have suffered grazing losses due to drought-affected pastureland or a fire on federally managed rangelands.

Under the Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program (ELAP), this section expands eligible losses to include bird predation of farm-raised fish and adds an eligible loss threshold when determining honey bee colony losses. ELAP provides payments to producers of livestock, honey bees, and farm-raised fish as compensation for losses due to disease, adverse weather, feed or water shortages, or other conditions that are not covered under other programs.

Under the Tree Assistance Program (TAP), this section lowers the eligible normal mortality loss threshold and increases assistance for eligible rehabilitation costs. TAP provides financial assistance to qualifying orchardists and nursery tree growers to replant or rehabilitate eligible trees, bushes, and vines damaged by natural disasters.

Subtitle E--Crop Insurance

This subtitle increases certain crop insurance premium subsidies and increases additional premium subsidies available for beginning farmers and ranchers. The subtitle also increases coverage levels for Supplemental Coverage Option (i.e., a type of county-level coverage) and Whole Farm Revenue Protection policies, increases support for administrative and operating (A&O) costs incurred by approved crop insurance providers, and increases funds available for program compliance and integrity.

As background, the Federal Crop Insurance Program (FCIP) offers subsidized crop insurance policies that producers can purchase to cover a wide variety of crops and livestock. These policies pay indemnities for yield and revenue losses caused by adverse growing and market conditions, including natural disasters. The Federal Crop Insurance Corporation (FCIC)—a government corporation within USDA—subsidizes part of the policy premium.

(Sec. 10501) This section increases the premium subsidies available for beginning farmers or ranchers for an applicable insurance policy or plan.

Further, farmers and ranchers are eligible to qualify for the program for 10 years, an increase from 5 years. Specifically, a farmer or rancher must not have actively operated and managed a farm or ranch for more than 10 crop years to be considered a beginning farmer or rancher. 

(Sec. 10502) This section expands the maximum coverage level from 85% to 90% for individual yield or revenue coverage aggregated across multiple commodities (e.g., Whole-Farm Revenue Protection policies). 

The section also expands the Supplemental Coverage Option (SCO) and increases SCO premium subsidies from 65% to 80%. It also increases the SCO coverage level from 86% to 90%.

(Sec. 10503) This section increases administrative and operating (A&O) subsidies in certain states and years with relatively high losses.

As background, the Federal Crop Insurance Corporation (FCIC) subsidizes part of the policy premium. The policyholders (i.e., farmers and ranchers) pay any remaining premium. Private insurance companies sell and service the policies in return for A&O subsidies from the FCIC.

This section also establishes a minimum A&O reimbursement rate for specialty crop policies each year beginning in the 2026 reinsurance year. The rate must be equal to or greater than the percentage that is the greater of (1) 17% of the premium used to define loss ratio, and (2) the percentage of the premium used to define loss ratio that is otherwise applicable for the reinsurance year under the terms of the Standard Reinsurance Agreement in effect for the reinsurance year.

Finally, beginning with the 2026 reinsurance year, the section requires USDA to annually increase the total A&O reimbursements that would otherwise be required in order to account for inflation.

(Sec. 10504) This section increases certain crop insurance premium subsidies. The increases range from 3% to 5%, depending on the coverage level.

(Sec. 10505) This section increases funding for available information technologies (i.e., data mining and data warehousing) to administer and enforce program compliance and integrity.

(Sec. 10506) This section increases funding for (1) the operations and review of policies, plans of insurance, and related materials; and (2) maintaining program actuarial soundness and financial integrity. 

(Sec. 10507) This section provides for the establishment of a Poultry Insurance Pilot Program to provide contract poultry growers with index-based insurance for extreme weather-related risk resulting in increased utility costs associated with poultry production. Under an index policy, claim payments are generally triggered based on a predetermined index that is entirely independent of the individual farm operation (e.g., rainfall level). Under such a policy, the payments are automatically triggered when the index reaches a certain level rather than when an insured farmer files a claim.

Subtitle F--Additional Investments in Rural America 

(Sec. 10601) This section rescinds the unobligated funds that were provided for the Agriculture Conservation Easement Program (ACEP), the Environmental Quality Incentives Program (EQIP), the Conservation Stewardship Program (CSP), and the Regional Conservation Partnership Program (RCPP) as part of the Inflation Reduction Act of 2022. The section also adds funds to the permanent farm bill baseline for these programs. It also reauthorizes or modifies the funding levels for various other conservation programs.

The section provides the following funding levels for ACEP:

$625 million for FY2026,

$650 million for FY2027,

$675 million for FY2028, and

$700 million for each of FY2029-FY2031.

The section provides the following funding levels for EQIP:

$2.655 billion for FY2026,

$2.855 billion for FY2027, and

$3.255 billion for each of FY2028-FY2031.

The section provides the following funding levels for CSP:

$1.300 billion for FY2026,

$1.325 billion for FY2027,

$1.350 billion for FY2028, and

$1.375 billion for each of FY2029-FY2031.

The section provides the following funding levels for RCPP:

$425 million for FY2026, and

$450 million each of FY2027-FY2031.

In addition, this section reauthorizes or modifies the funding levels for the following programs

Grassroots Source Water Protection Program,

Voluntary Public Access and Habitat Incentive Program,

Watershed and Flood Prevention Operations Program, and

Feral Swine Eradication and Control Pilot Program.

(Sec. 10602) This section directs USDA to carry out a program to encourage the accessibility, development, maintenance, and expansion of commercial export markets for U.S. agricultural commodities. This section also provides $285 million in mandatory funding for the program for FY2027 and each fiscal year thereafter.

(Sec. 10603) This section extends funding for the Emergency Food Assistance Program (TEFAP) through FY2031. TEFAP provides food commodities (and cash support for storage and distribution costs) through states to local emergency feeding organizations (e.g., food banks). Through TEFAP, USDA purchases a variety of commodities and makes those food products (e.g., canned, frozen, dried, and fresh fruits and vegetables; eggs; meat; dairy; and whole-grain and enriched grain products) available to state distributing agencies.

(Sec. 10604) This section reauthorizes and provides funding for a number of USDA research initiatives.

The section reauthorizes and extends funding through FY2031 for the Urban, Indoor, and other Emerging Agricultural Production Research, Education, and Extension Initiative, a National Institute of Food and Agriculture (NIFA) competitive grant program that supports research, education, and extension activities that facilitate development of urban, indoor, and other emerging agricultural production systems.

The section provides $37 million for the Foundation for Food and Agriculture Research, a nonprofit corporation established to advance the research mission of USDA by supporting research activities focused on key problems of national and international significance.

The section provides specified funds to the 1890 National Scholars Program for FY2026 for student scholarships. This NIFA program provides grants to 1890 Institutions (i.e., historically Black colleges and universities that belong to the U.S. land-grant university system) for students who intend to pursue a career in the food and agricultural sciences.

The section provides funding for the Assistive Technology Program for Farmers with Disabilities Program (AgrAbility) grant program for FY2026. This NIFA program supports projects that provide agricultural education and assistance to farmers with disabilities and their family members.

This section provides the Specialty Crop Research Initiative with $175 million in mandatory funding for FY2026. Currently, the program is funded at $80 million for each fiscal year.

This section also provides funding for competitive grants to assist in the construction, alteration, acquisition, modernization, renovation, or remodeling of Agricultural Research Facilities.

(Sec. 10605) This section reauthorizes, and extends funding for, the bioenergy program for advanced biofuels (i.e., Advanced Biofuel Payment Program) through FY2031. The program provides payments to fuel producers to support and expand production of advanced biofuels (i.e., not derived from corn starch).

(Sec. 10606) This section provides additional funding for the Plant Pest and Disease Management Disaster Prevention Program for FY2026 and each fiscal year thereafter.

This section provides additional funding for the Specialty Crop Block Grant Program for FY2026 and each fiscal year thereafter. Under the block grant program, USDA provides grants to the state departments of agriculture to enhance the competitiveness of specialty crops (i.e., fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops, including floriculture).

The section also reauthorizes, and extends funding for, organic production and market data initiatives through FY2031.

This section reauthorizes, and extends funding through FY2026, for USDA to carry out the modernization and improvement of international trade technology systems and data collection on imports of organically produced agricultural products accepted into the United States.

The section also reauthorizes through FY2031 the Organic Certification Cost Share Program, which provides cost share assistance to producers and handlers of agricultural products who are obtaining or renewing their certification under the National Organic Program.

This section reauthorizes, and extends funding through FY2026, for the multiple crop and pesticide use survey of farmers. The USDA Office of Pest Management Policy conducts this survey to collect data for risk assessment modeling and mitigation for an active ingredient.

(Sec. 10607) This section increases mandatory funding for the National Animal Health Laboratory Network from $30 million per fiscal year to

$233 million for each of FY2026-FY2030, and

$75 million for FY2031 and each fiscal year thereafter.

Specific increases in funding are provided for the National Animal Disease Preparedness and Response Program and the National Animal Vaccine and Veterinary Countermeasures Bank.

This section extends and increases funding for the Sheep Production & Marketing Grant Program through FY2026. This program seeks to strengthen and enhance the production and marketing of sheep and sheep products in the United States.

This section also extends the

Pima Agriculture Cotton Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on cotton fabric that are higher than tariffs on certain apparel articles made of cotton fabric;

Agriculture Wool Apparel Manufacturers Trust Fund through December 31, 2031, which provides assistance to reduce the economic injury to domestic manufacturers resulting from tariffs on wool fabric that are higher than tariffs on certain apparel articles made of wool fabric;

Wool Research and Promotion Program through FY2031, which provides grants to assist U.S. wool producers with improving the quality of wool and with developing and promoting the wool market; and

Emergency Citrus Disease Research and Development Trust Fund through FY2031, which funds a program that aims to bring together scientists to find scientifically sound and financially sustainable solutions to Huanglongbing (i.e., citrus greening, a bacterial disease spread by an insect that feeds on citrus). 

TITLE II--COMMITTEE ON ARMED SERVICES

This title provides additional funding for, and modifies, various defense and national security projects and programs.

(Sec. 20001) This section provides $7.5 billion in additional funding for FY2025 to the Department of Defense (DOD) for military personnel quality of life, which includes specified amounts for

the Marine Corps Barracks 2030 initiative,

the Defense Health Program,

supplemental payments of Basic Allowance for Housing to military personnel, and

tuition assistance and child care assistance for members of the Armed Forces.

The section also provides statutory authority to extend from 14 to 21 days eligibility for Temporary Lodging Expense (TLE) for certain servicemembers undergoing a permanent change of station.

Additionally, the section temporarily increases authorized investment amounts and provides additional authorization for the acquisition or construction of certain military housing through private contracts.

(Sec. 20002) This section provides $29.2 billion in additional funding for FY2025 for the shipbuilding industrial base and various naval shipbuilding activities. 

(Sec. 20003) This section provides $24.4 billion in additional funding for FY2025 for the development of (1) space-based missile intercept capabilities, (2) military space-based sensors, and (3) the continued development of ground-based missile defense systems and related infrastructure.

(Sec. 20004) This section provides $25.4 billion in additional funding for FY2025 for various military weapon systems, including hypersonic, air-to-air, cruise, and anti-ship missiles.

This amount also includes additional funding for FY2025 for the Industrial Base Fund.

(Sec. 20005) This section provides $16 billion in additional funding for FY2025 to expand the small, unmanned aerial system (UAS) industrial base, to advance the use of artificial intelligence in these and other systems, and to support the integration of commercial developments in military technology.

This amount also includes additional funding to finance loans and loan guarantees by the DOD Office of Strategic Capital.

(Sec. 20006) This section provides $380 million in additional funding for FY2025 to replace current business systems, deploy automation, and deploy artificial intelligence to accelerate audits of DOD financial statements.

(Sec. 20007) This section provides $8.6 billion in additional funding for FY2025 to (1) modernize the capabilities of fighter, transport, and other military aircraft; (2) prevent the retirement of certain fighter aircraft (e.g., F-22); and (3) produce next-generation manned and unmanned aircraft.

(Sec. 20008) This section provides $14.7 billion in additional funding for FY2025 for nuclear defense resources and nuclear forces development and production. This includes additional funding to expand the production capacity of the B-21 long-range bomber aircraft.

This amount also includes additional funding for FY2025 for the National Nuclear Security Administration.

(Sec. 20009) This section provides $12.7 billion in additional funding for FY2025 for (1) various military exercises and infrastructure in the Indo-Pacific region, and (2) the development and procurement of military satellites.

(Sec. 20010) This section provides $16.3 billion in additional funding for FY2025 to enhance and modernize (1) military depots and shipyards, (2) Special Operations Command (SOCOM) equipment, and (3) Air Force facilities. 

(Sec. 20011) This section provides $1 billion in additional funding for FY2025 to support border operations, including deployment of military personnel.

(Sec. 20012) This section provides $10 million in additional funding for FY2025 for the DOD Office of Inspector General to monitor the activities for which funding is provided under this title.

(Sec. 20013) This section authorizes each military department to use funding under this title for military construction, land acquisition, and military family housing. Each military department must submit a detailed spending plan to Congress.

TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

(Sec. 30001) This section reduces funding for the Consumer Financial Protection Bureau (CFPB). Specifically, the section reduces from 12% to 6.5% the cap on the percentage of combined earnings transferred from the Board of Governors of the Federal Reserve Board to the CFPB.

(Sec. 30002) This section rescinds unobligated funds from the Green and Resilient Retrofit Program under the Department of Housing and Urban Development (HUD). The program provides funding for energy efficiency improvements in multifamily properties receiving HUD assistance.

(Sec. 30003) This section closes the Securities and Exchange Commission (SEC) Reserve Fund and transfers the remaining amounts to the general fund of the Treasury. The fund, which pays for SEC expenses and is not subject to annual appropriation, was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act and is funded by securities registration fees.

(Sec. 30004) This section provides additional funding of $1 billion to carry out activities under the Defense Production Act of 1950. The act confers on the President a broad set of authorities to influence domestic industry in the interest of national defense, such as requiring industries to accept contracts for national defense purposes. 

TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

(Sec. 40001) This section provides the Coast Guard with over $24.5 billion in additional funds for FY2025, to remain available through FY2029, to use expedited processes to (1) procure or acquire new operational assets and systems; (2) maintain existing assets and systems; (3) design, construct, plan, engineer, and improve necessary shore infrastructure; and (4) enhance operational resilience for monitoring, search and rescue, interdiction, hardening of maritime approaches, and navigational safety.

This includes specified funds for various cutters and other programs. Cutters are Coast Guard vessels that are more than 65 feet long and have accommodations for a crew. (Those less than 65 feet long are called boats.)

This title includes specified funds for

fixed and rotary wing aircraft,

long-range unmanned aircraft and base stations,

Offshore Patrol Cutters,

Fast Response Cutters,

Polar Security Cutters,

Arctic Security Cutters,

light and medium icebreaking cutters,

shore facilities, and

depot maintenance.

(Sec. 40002) This section renews the authority of the Federal Communications Commission (FCC) to auction licenses for the use of radio frequency spectrum and requires the FCC to auction at least 800 megahertz of spectrum within a specified time frame.

Specifically, this section reauthorizes the FCC’s use of competitive bidding (i.e., auctions) to grant licenses for the use of specific frequencies through September 30, 2034. (The FCC’s auction authority must be renewed by Congress periodically. It expired on March 9, 2023, and has not been renewed.) However, the FCC is not authorized to auction certain frequencies used primarily by the Department of Defense.

During this period of renewed auction authority, the FCC is required to auction at least 300 megahertz of spectrum, including at least 100 megahertz in specified frequencies (known as the Upper C-Band) within two years of this title’s enactment.

Further, within four years of this title’s enactment, the National Telecommunications and Information Administration (NTIA) must identify 500 megahertz of additional spectrum currently allocated to the federal government for reallocation and auction.

Specifically, the NTIA must select spectrum at frequencies between 1.3 and 10.5 gigahertz for reallocation to nonfederal use or shared federal use for full-power commercial licensed use cases (e.g., commercial mobile phone service). In selecting spectrum for reallocation, the NTIA must assess the feasibility of reallocating specific frequencies with the goal of maximizing auction proceeds.

The FCC must auction the frequencies identified for reallocation within a specified time frame, and must complete auctions for the full 500 megahertz within eight years of this title’s enactment. 

If necessary to protect U.S. national security, the President must modify or withdraw any frequency identified for reallocation at least 60 days before an auction of that frequency.

Finally, this section provides funding for the NTIA to conduct a timely spectrum analysis of certain frequency bands and to publish reports, biennially through 2034, on the value of all spectrum used by federal entities.

(Sec. 40003) This section provides the Federal Aviation Administration (FAA) with $12.52 billion in additional funds for FY2025, to remain available through FY2029, for the acquisition, construction, sustainment, and improvement of facilities and equipment necessary to improve or maintain aviation safety. This includes $4.75 billion for telecommunications infrastructure modernization and systems upgrades and $3 billion for radar systems replacement.

This also includes specified funds for 

runway safety technologies, runway lighting systems, and airport surface surveillance technologies;

Automated Weather Observing Systems and Visual Weather Observing Systems;

the Don Young Alaska Aviation Safety Initiative;

a new air route traffic control center (ARTCC) and an ARTCC Realignment and Consolidation Effort;

recapitalization and consolidation of terminal radar approach control facilities (TRACONs);

the deployment of remote tower technology at untowered airports; and

air traffic controller advanced training technologies.

The FAA must submit a report to Congress every 90 days on these expenditures.

(Sec. 40004) This section requires the FAA to impose a specified fee on each commercial space launch or reentry carried out beginning in 2026. 

This section also establishes an account within the U.S. Treasury wherein all commercial space launch and reentry fees must be deposited. The FAA must use a certain portion of such funds for (1) expenses of the FAA’s Office of Commercial Space Transportation, which administers commercial space launch and reentry permitting; and (2) a project to expedite the development, acquisition, and deployment of technologies or capabilities to aid in space launch and reentry integration.

(Sec. 40005) This section provides $9.995 billion to the National Aeronautics and Space Administration (NASA) for Moon and Mars missions, infrastructure improvements at NASA facilities, and other NASA projects.

Specifically, this section includes funding for the procurement of a high-performance Mars telecommunications orbiter; for the procurement and operation of the Space Launch System for Artemis missions IV and V; and for expenses related to the operation and eventual deorbiting of the International Space Station.

This section also requires NASA to identify a space vehicle that has carried astronauts and flown in space to be relocated and placed on public display near a NASA field center. The space vehicle must be transported to this new location within 18 months of this title’s enactment. This section provides funding to NASA to carry out this requirement, including certain funds that must be transferred to a selected entity for the construction of a facility to house the space vehicle.

(Sec. 40006) This section effectively eliminates the civil penalty for a violation by a manufacturer of the Corporate Average Fuel Economy (CAFE) standards and the ability of the National Highway Traffic Safety Administration (NHTSA) to enforce the standards. Under current law, NHTSA’s CAFE standards regulate how far vehicles must travel on a gallon of fuel. NHTSA enforces the standards through civil penalties. This section sets the civil penalty to $0 for a violation by a manufacturer of the CAFE standards.

(Sec. 40007) This section increases the amount of the lease payment that the Metropolitan Washington Airports Authority (MWAA) must pay to the federal government for Ronald Reagan Washington National Airport and Washington Dulles International Airport. 

Specifically, MWAA must pay $15 million per year (adjusted annually for inflation) beginning in 2027. This amount must be renegotiated at least once every 10 years to ensure that the amount is not less than $15 million in 2027 dollars. Under current law, for 2025, the projected payment is approximately $7.5 million.

(Sec. 40008) This section rescinds specified funds that were provided to the National Oceanic and Atmospheric Administration (NOAA) for certain facilities, activities, and research.

Specifically, this section rescinds funds that were provided to NOAA for (1) the provision of financial or technical assistance to coastal states and other entities for conservation, restoration, and protection of coastal and marine habitats and to enable preparation for extreme weather; (2) NOAA facilities, including piers, fisheries laboratories, and national marine sanctuaries; (3) reviews of planning, permitting, and approval processes; and (4) weather research and forecasting innovations, including a grant program to support climate research.

(Sec. 40009) This section reduces funding for the Corporation for Travel Promotion (i.e., Brand USA) to $20 million per year through FY2027 from the current level of $100 million per year. Established by the Travel Promotion Act of 2009, Brand USA is a public-private partnership tasked with promoting tourism in the United States.

(Sec. 40010) This section rescinds the unobligated balances for the FAA Alternative Fuel and Low-Emission Aviation Technology Program, which includes the Fueling Aviation’s Sustainable Transition (FAST) program, that was funded as part of the Inflation Reduction Act of 2022. The purpose of the program is to provide competitive grants for projects located in the United States that (1) produce, transport, blend, or store sustainable aviation fuel; or (2) develop, demonstrate, or apply low-emission aviation technologies.

(Sec. 40011) This section rescinds specified funds that were provided for the Public Wireless Supply Chain Innovation Fund, a competitive grant program administered by the National Telecommunications and Information Administration that funds efforts to accelerate the development, deployment, and adoption of Open Radio Access Networks (Open RAN). (Radio Access Networks connect individual user devices [e.g., cell phones and laptops] to broader telecommunications networks. Open RAN is a nonproprietary, standardized approach that aims to allow all hardware and software in a cellular network to interoperate, regardless of manufacturer or vendor.)

TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES 

Subtitle A--Oil and Gas Leasing 

(Sec. 50101) This section generally reduces restrictions on onshore development of oil and gas on federal lands, including by (1) decreasing the minimum royalty rates paid by oil and gas companies, (2) reinstating noncompetitive leasing, (3) directing the Department of the Interior to immediately resume onshore quarterly lease sales in specified states, and (4) directing Interior to approve applications that allow for the commingling of production from two or more sources (e.g., the area of an oil and gas lease and nonfederal property) before production reaches the point where the volume and quality of the substances are measured for royalty payment purposes if certain conditions are met. 

(Sec. 50102) This section generally reduces restrictions on offshore development of oil and gas on federal lands, including by directing Interior to hold a specified number of offshore oil and gas lease sales on certain submerged lands of the Outer Continental Shelf (OCS), including areas in the Gulf of America and the Cook Inlet Planning Area in Alaska.

This section also directs Interior to approve operator requests to commingle production from multiple reservoirs within a single wellbore completed on the OCS of the Gulf of America unless conclusive evidence shows the practice would be unsafe or reduce the recovery of oil.

Further, this section decreases the minimum royalty rates for federal leases for offshore development of oil and gas.

This section also modifies the Gulf of Mexico Energy Security Act of 2006 to raise the cap on the distribution of OCS revenues to oil and gas producing Gulf states (i.e., Alabama, Louisiana, Mississippi, and Texas) and the Land and Water Conservation Fund state assistance program from $500 million to $650 million per year for FY2025-FY2034.

(Sec. 50103) This section ends the practice of assessing royalties on gas extracted from federal lands that was consumed or lost by venting, flaring, or through negligent releases (e.g, extracted methane). 

(Sec. 50104) This section modifies provisions concerning the production of oil and gas from the Arctic National Wildlife Refuge (ANWR) in Alaska, particularly by directing Interior to conduct at least four lease sales under the Coastal Plain Oil and Gas Leasing Program in ANWR not later than 10 years after enactment. Additionally, it outlines how the revenues derived from the program must be divided between Alaska and the federal government. 

(Sec. 50105) This section requires at least five lease sales under the National Petroleum Reserve-Alaska (NPR-A) oil and gas program not later than 10 years after enactment. It also outlines how the revenues derived from the program must be divided between Alaska and the federal government.

Subtitle B--Mining 

(Sec. 50201) This section directs Interior, within 90 days after enactment, to publish an environmental review, hold certain coal lease sales, and issue the leases for certain coal lease applications that are pending as of enactment or are submitted within 90 days.

(Sec. 50202) This section decreases through September 30, 2034, the royalty rate for coal leases on federal lands.

(Sec. 50203) This section requires Interior to make available for lease known recoverable coal resources of at least 4 million additional acres on federal land, not including federal land located in areas such as a National Conservation Area.

(Sec. 50204) This section authorizes mining of all federal coal reserves located in federal land subject to a previously approved mining plan and adjacent to coal reserves in adjacent state or private lands. 

Subtitle C--Lands 

(Sec. 50301) This section directs the Forest Service to annually, beginning in FY2026 and through FY2034, sell a quantity of timber on National Forest System land that is at least 250 million board feet greater than the quantity that was sold in the previous fiscal year, subject to forest plan limits. 

The Forest Service must annually enter into at least 40 20-year or longer contracts for the sale of national forest materials for FY2025-FY2034. 

The Bureau of Land Management (BLM) must annually, beginning in FY2026 and through FY2034, sell a quantity of timber on public land that is at least 20 million board feet greater than the quantity that was sold in the previous fiscal year, subject to resource management plan limits.

This section also directs the BLM to annually enter into at least five 20-year or longer contracts to dispose of vegetative materials on certain federal lands for FY2025-FY2034. 

(Sec. 50302) This section establishes fees and authorities related to renewable energy projects on federal lands, including by providing statutory authority for annual acreage rent for wind and solar rights-of-way.

(Sec. 50303) This section provides a mechanism for states, counties, and the federal government to share revenues from renewable energy projects on public lands.

(Sec. 50304) This section rescinds certain funding for Interior to carry out projects concerning the conservation, protection, and resiliency of lands and resources administered by the National Park Service (NPS) and the BLM.

This section also rescinds funding for conservation and ecosystem and habitat restoration projects on lands administered by the NPS and the BLM.

This section also rescinds funding for hiring NPS employees.

(Sec. 50305) This section provides $150 million in fundin to the NPS for events, celebrations, and activities related to the 250th anniversary of America’s founding.

Subtitle D--Energy 

(Sec. 50401) This section provides $389 million in funding for the Strategic Petroleum Reserve (SPR). It also repeals a provision that requires the Department of Energy (DOE) to draw down and sell a specified quantity of crude oil from the SPR during FY2026-FY2027. 

(Sec. 50402) This section reinstates the cap on the total amount of loans that may be provided under the Advanced Technology Vehicles Manufacturing Loan Program, a DOE program that provides loans to facilities that manufacture vehicles that emit either a low amount or no amount of greenhouse gases.

This section also rescinds the unobligated funds that were provided by the Inflation Reduction Act for various energy programs, such as State-Based Home Energy Efficiency Contractor Training Grants, the Advanced Technology Vehicles Manufacturing Loan Program, and the Tribal Energy Loan Guarantee Program.

(Sec. 50403) This section revises the types of projects eligible for energy infrastructure reinvestment financing. In particular, this financing is eliminated for projects that avoid or reduce air pollutants or greenhouse gas (GHG) emissions. Additionally, fossil fuel projects under this program are no longer required to have controls or technologies to avoid or reduce air pollutants or GHG emissions. 

This section expands the program to include projects involving critical minerals. Projects that support or enable the provision of known or forecastable electric supply at time intervals necessary to maintain or enhance grid reliability or other system adequacy needs are also now eligible for this financing. This section also provides an additional $1 billion in funding for the program. 

(Sec. 50404) This section provides funding for partnerships between the National Laboratories and U.S. industry to organize DOE data for use in artificial intelligence and machine learning models. DOE must also initiate seed efforts for self-improving artificial intelligence models for science and engineering using this data. These models must be provided to the scientific community through a system of programs and infrastructure using cloud computing. This section also allows this data to be used to develop next-generation microelectronics.

Subtitle E--Water

(Sec. 50501) This section provides $1 billion in funding to the Bureau of Reclamation for construction and associated activities that increase the capacity of existing Reclamation surface water storage facilities or conveyance facilities.

TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

Among other provisions, this title repeals and rescinds funding provided under the Inflation Reduction Act of 2022 for a variety of environmental programs.

(Sec. 60001) This section rescinds unobligated funds for the program under which the Environmental Protection Agency (EPA) provides (1) grants and rebates to replace certain medium-duty vehicles (e.g., school buses) and heavy-duty vehicles (e.g., garbage trucks) with zero-emission vehicles, and (2) awards to replace such vehicles in communities located in areas designated as nonattainment areas under the Clean Air Act (e.g., areas that do not meet national air quality standards).

(Sec. 60002) This section repeals and rescinds unobligated funds for the Greenhouse Gas Reduction Fund, which provides financial and technical assistance to states and other eligible recipients to help enable low-income and disadvantaged communities carry out activities to reduce greenhouse gas emissions.

(Sec. 60003) This section rescinds unobligated funds for an EPA program that gives grants, rebates, and loans under the Energy Policy Act of 2005 to identify and reduce diesel emissions resulting from goods movement (e.g., distribution of raw materials and consumer products) facilities as well as vehicles servicing those facilities in low-income and disadvantaged communities.

(Sec. 60004) This section rescinds unobligated funds for a variety of programs that provide incentives to monitor and reduce air pollution and greenhouse gases, including funding for grants and other activities to

deploy, integrate, support, and maintain stations, technology, and other methods to monitor air toxins;

expand the national ambient air quality monitoring network with new multi-pollutant monitoring stations;

replace, repair, operate, and maintain existing monitors;

deploy, integrate, and operate air quality sensors in low-income and disadvantaged communities;

address emissions from wood heaters;

monitor emissions of methane;

conduct research and development related to the prevention and control of air pollution; and

encourage states to adopt and implement greenhouse gas and zero-emission standards for mobile sources (e.g., vehicles).

(Sec. 60005) This section rescinds unobligated funds provided for grants and other activities to monitor and reduce greenhouse gas emissions and other air pollutants at schools in low-income and disadvantaged communities. Further, it rescinds funding for technical assistance to schools in low-income and disadvantaged communities to (1) address environmental issues; (2) develop school environmental quality plans that include standards for school building, design, construction, and renovation; and (3) identify and mitigate ongoing air pollution hazards.

(Sec. 60006) This section rescinds unobligated funds for a low emissions electricity program that provides education, technical assistance, and outreach to reduce greenhouse gas emissions that result from domestic electricity generation and use.

(Sec. 60007) This section rescinds unobligated funds provided under the EPA’s Renewable Fuel Standard Program for

the development and establishment of tests and protocols regarding the environmental and public health effects of a fuel or fuel additive;

the collection and analysis of data to update applicable regulations, guidance, and procedures for determining the amount of greenhouse gas emissions from a fuel over the fuel's life cycle (e.g., production, processing, transport);

the review, analysis, and evaluation of the impacts of all transportation fuels on the public as well as on low-income and disadvantaged communities; and

supporting investments in advanced biofuels.

(Sec. 60008) This section rescinds unobligated funding for implementing the American Innovation and Manufacturing Act of 2020, which directs the EPA to limit hydrofluorocarbons (HFCs). HFCs are greenhouse gases that are used in applications such as air conditioning, refrigeration, fire suppression, and aerosols.

(Sec. 60009) This section rescinds unobligated funding for updating the EPA's Integrated Compliance Information System and any associated systems, necessary information technology infrastructure, or public access software tools to ensure access to compliance data and related information. Further, it also rescinds funding for grants to states, Indian tribes, and air pollution control agencies to update their systems to ensure communication with EPA’s system. Finally, it rescinds funding to the EPA for updating inspection software or acquiring such software or devices on which to run the software.

(Sec. 60010) This section rescinds unobligated funding provided for the EPA to support (1) enhanced standardization and transparency of corporate climate action commitments and plans to reduce greenhouse gas emissions; (2) enhanced transparency regarding progress toward meeting such commitments and implementing such plans; and (3) progress toward meeting such commitments and implementing such plans.

(Sec. 60011) This section rescinds unobligated funding for the EPA program that supports the development, enhanced standardization and transparency, and reporting criteria for environmental product declarations that include measurements of the greenhouse gases associated with the lifecycle—or all the relevant stages of production, use, and disposal—of construction materials and products.

(Sec. 60012) This section rescinds unobligated funding for the methane emissions reduction program under which the EPA provides financial incentives to encourage the reporting of greenhouse gases, the monitoring of methane, and the reduction of methane emissions from petroleum and natural gas systems. The section also postpones to calendar year 2034 the EPA’s fee on methane emissions that exceed certain thresholds.

(Sec. 60013) This section rescinds unobligated funding for the EPA program that awards grants to states, air pollution control agencies, municipalities, and Indian tribes for developing and implementing plans to reduce greenhouse gas air pollution.

(Sec. 60014) This section rescinds unobligated funding for the EPA’s provision of efficient, accurate, and timely reviews, including

developing efficient, accurate, and timely reviews for permitting and approval processes through the hiring and training of personnel;

developing programmatic documents;

procuring technical or scientific services for reviews;

developing environmental data or information systems;

engaging stakeholders;

purchasing new equipment for environmental analysis; and

developing geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement.

(Sec. 60015) This section rescinds unobligated funds for a program under which the EPA identifies and labels construction materials and products that have substantially lower levels of greenhouse gas emissions associated with all the relevant stages of production, use, and disposal of the materials and products.

(Sec. 60016) This section rescinds unobligated funding for environmental and climate justice block grants that benefit disadvantaged communities.

(Sec. 60017) This section rescinds unobligated funding for developing and implementing recovery plans under the Endangered Species Act.

(Sec. 60018) This section rescinds unobligated funding for the Council on Environmental Quality, including funding for (1) collecting data related to environmental and climate issues, (2) tracking disproportionate burdens and cumulative impacts, and (3) supporting efforts to ensure that any mapping or screening tool is accessible to community-based organizations and community members.

(Sec. 60019) This section rescinds the unobligated balances for the Neighborhood Access and Equity Grant Program of the Federal Highway Administration (FHWA). Under the program, the FHWA provides grants to states, local governments, and certain other entities for (1) improving walkability, safety, and affordable transportation access; (2) mitigating or remediating environmental impacts from surface transportation facilities in disadvantaged communities; and (3) planning and capacity building activities related to pollution assessment and transportation equity in disadvantaged communities.

(Sec. 60020) This section rescinds the unobligated funding provided to the Federal Buildings Fund for the conversion of General Services Administration (GSA) facilities to high-performance green buildings.

(Sec. 60021) This section rescinds the unobligated funding provided to the Federal Buildings Fund for acquiring and installing low-carbon (i.e., greenhouse gases) materials and products in the construction of federal buildings.

(Sec. 60022) This section rescinds the unobligated funding for the emerging and sustainable technology program of the GSA.

(Sec. 60023) This section rescinds the unobligated funding for the Environmental Review Implementation Funds of the FHWA.

(Sec. 60024) The section rescinds the unobligated funding for the FHWA's Low Carbon Transportation Materials Grants program. Under the program, FHWA provides grants to states, local governments, and other entities to use, in certain projects, construction materials and products with low levels of greenhouse gases in their lifecycles.

(Sec. 60025) This section provides $257 million for the John F. Kennedy Center for the Performing Arts in Washington, DC, for FY2025, to remain available until September 30, 2029. This funding is for capital repair, restoration, the maintenance backlog, and security structures of the building and site.

(Sec. 60026) This section modifies the environmental review process under the National Environmental Policy Act of 1969 (NEPA) to allow a project sponsor to pay a fee to expedite completion of an environmental assessment (EA) or environmental impact statement (EIS).

TITLE VII--FINANCE

Subtitle A--Tax

Chapter 1--Providing Permanent Tax Relief for Middle-Class Families and Workers

This chapter makes permanent multiple individual federal tax provisions enacted in 2017 by the Tax Cuts and Jobs Act.

Below is a summary of provisions in this chapter.

(Sec. 70101) This section makes permanent the individual tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37% and the estate and trust tax rates of 10%, 24%, 35%, and 37%.

(Sec. 70102) This section permanently increases the base standard deduction amount to $15,750 for single filers, $23,625 for individuals who file as head of the household, and $31,500 for married individuals filing jointly (adjusted annually for inflation).

(Sec. 70103) This section permanently repeals the personal exemption tax deduction for most taxpayers and establishes a temporary (for 2025-2028) personal exemption tax deduction of up to $6,000 for individuals who are 65 years or older (subject to income limitations and identification requirements).

(Sec. 70104) This section increases the maximum amount of the child tax credit to $2,200 per qualifying child (beginning in 2025) and provides that such amount is to be annually adjusted for inflation beginning in 2026.

This section also makes permanent the

phase out of the child tax credit (including the $500 nonrefundable tax credit for dependents) for individuals with a modified adjusted gross income exceeding $200,000 (or $400,000 for joint filers),

$500 nonrefundable child tax credit for each dependent (who is not a qualifying child), and

refundable portion of the child tax credit for taxpayers who meet certain requirements.

Further, this section extends the child tax credit identification requirements applicable to qualifying children and expands such identification requirements to include the taxpayer and taxpayer’s spouse (if filing jointly). Beginning in 2025, under this section, a taxpayer must provide a work-eligible Social Security number for themselves, for their spouse (if filing jointly), and for each qualifying child.

(Sec. 70105) This section makes permanent the qualified business income (QBI) tax deduction, expands the phase-in range of the limitations on the QBI tax deduction to $75,000 for non-joint returns and $150,000 for joint filers (from $50,000 for non-joint returns and $100,000 for joint filers), and establishes a minimum QBI tax deduction of $400 for certain taxpayers.

(Sec. 70106) This section increases the base estate tax, gift tax, and generation-skipping transfer tax exemption amount after 2025 to $15 million (from $5 million), adjusted for inflation.

(Sec. 70107) This section makes permanent the increased alternative minimum tax exemption amounts and reduces the alternative minimum taxable income threshold amount to $500,000 ($1 million for joint filers) at which the exemption amounts begin to phase out (adjusted annually for inflation beginning in 2026). (For 2025, the alternative minimum taxable income threshold amounts are $626,350 or $1,252,700 for joint filers, as adjusted for inflation.)

Further, this section increases the percentage rate to 50% (from 25%) at which the alternative minimum tax exemption amount is phased out for individuals whose taxable income exceeds such threshold amount.

(Sec. 70108) This section makes permanent the limit on the itemized tax deduction for home mortgage interest enacted in 2017 by the Tax Cuts and Jobs Act. Thus, under this section, taxpayers who itemize their tax deductions may deduct interest paid on the first $750,000 (or $375,000 for married individuals filing separately) of mortgage debt. As background, for tax years prior to 2018, an itemized tax deduction was allowed for interest paid on the first $1 million of mortgage debt (or the first $500,000 for married individuals filing separately).

This section also allows certain mortgage insurance premiums to be included in the itemized tax deduction for home mortgage interest.

(Sec. 70109) This section makes permanent a provision that limits the itemized tax deduction for unreimbursed personal casualty losses to such losses associated with a federally declared disaster. (As background, for tax years before 2018, the itemized tax deduction for unreimbursed personal casualty and theft losses was not restricted to such losses associated with a federally declared disaster.)

However, this section also expands the itemized tax deduction to include unreimbursed personal casualty losses attributable to certain state declared disasters.

(Sec. 70110) This section permanently eliminates the itemized tax deduction for most miscellaneous expenses. However, under this section, an itemized tax deduction for miscellaneous expenses is allowed for certain unreimbursed expenses incurred by teachers and other school personnel. Specifically, an itemized tax deduction is allowed for expenses incurred for books, supplies, and certain other expenses incurred by an individual who is (for at least 900 hours during the school year) a K-12 teacher, instructor, counselor, principal, school aide, interscholastic sports administrator, or coach.

(Sec. 70111) This section replaces the overall limitation on itemized tax deductions applicable for 2025 and after (commonly known as the Pease limitation) with a modified limitation on itemized tax deductions.

Under this section, beginning in 2026, a taxpayer’s itemized tax deductions are reduced by 2/37 of the lesser of (1) the taxpayer’s itemized tax deductions, or (2) the amount of the taxpayer’s taxable income (including the full amount of any itemized tax deductions) that exceeds the dollar amount at which the 37% federal income tax rate bracket (applicable to the taxpayer) begins.

(Sec. 70112) This section permanently eliminates the exclusion from gross income of reimbursements paid by an employer to an employee for expenses incurred to purchase, improve, repair, and store a bicycle that is regularly used to travel between the employee’s residence and place of work (qualified bicycle expenses). (Prior to 2018, employees could exclude reimbursements of up to $20 per month paid by an employer for qualified bicycle expenses as a qualified transportation fringe benefit. The exclusion from gross income for qualified bicycle expenses was temporarily eliminated for 2018-2025 by the Tax Cuts and Jobs Act.)

(Sec. 70113) This section permanently eliminates for most individuals the above-the-line tax deduction for moving expenses incurred to begin working in a new location. However, under this section, the tax deduction for moving expenses incurred to begin working in a new location is retained for certain active-duty members of the Armed Forces and expanded to include certain members of the intelligence community. (As background, prior to 2018, an above-the-line tax deduction was allowed for reasonable moving expenses incurred by an employee or self-employed individual to begin working in a new location if certain requirements are met. The tax deduction for reasonable moving expenses was eliminated through 2025, by the Tax Cuts and Jobs Act, for individuals other than for certain members of the Armed Forces.)

(Sec. 70114) This section makes permanent and further expands the limit on the itemized tax deduction for wagering losses. 

Specifically, under this section, wagering losses permanently includes expenses incurred in carrying on wagering transactions that would otherwise be deductible (e.g., travel to and from a casino). Thus, expenses incurred in carrying on wagering transactions may be deducted only to the extent that such expenses (in addition to any other wagering losses) are offset by gains from wagering that are included in gross income. 

This section further limits the tax deduction for wagering losses to 90% (from 100%) of the amount of wagering gains included in gross income. 

(Sec. 70115) This section permanently allows the designated beneficiary of an Achieving a Better Life Experience (ABLE) account to make additional contributions to their ABLE account (subject to certain requirements and limitations) that are subject to an increased contribution limit.

This section also increases the contribution limit to an ABLE account by adding one additional year to the annual adjustment for the cost of living.

(Sec. 70116) This section permanently extends the qualified retirement savings contribution tax credit for contributions made to an ABLE account by the account’s designated beneficiary. Further, this section increases the maximum amount of the tax credit to $2,100 (from $2,000). 

(Sec. 70117) This section makes permanent the provision that allows nontaxable rollovers from a qualified tuition program (529 plan) to an ABLE account, subject to certain requirements. 

(Sec. 70118) This section permanently treats a qualified hazardous duty area as a combat zone for purposes of determining eligibility for certain federal tax benefits available to members of the Armed Forces. (As background, multiple federal tax benefits are available to members of the Armed Forces serving in a combat zone, including an exclusion from gross income of certain military pay, an extension of time to file income tax returns, and special estate tax rules.) 

This section also makes permanent the designation of the Sinai Peninsula as a hazardous duty area and expands such designation to include Kenya, Mali, Burkina Faso, and Chad.

(Sec. 70119) This section extends the exclusion from gross income for the discharge of student loan debt due to the death or total and permanent disability of the student. However, under this section, the student must provide a work-eligible Social Security number to be eligible for the exclusion.

(Sec. 70120) This section temporarily increases the limit on the federal tax deduction for state and local taxes (commonly known as the SALT deduction cap) and phases out the tax deduction for individuals with a modified adjusted gross income exceeding a certain threshold amount.

Specifically, the SALT deduction cap increases in 2025 to $40,000 from $10,000 (or to $20,000 from $5,000 for married individuals filing separately). The SALT deduction cap increases in 2026 to $40,400 ( $20,200 for married individuals filing separately) and, then, by 1% each year after 2026, through 2029. In 2030, under this section, the SALT deduction cap reverts to $10,000 (or $5,000 for married individuals filing separately).

Further, under this section, the amount of state and local taxes allowed as a federal tax deduction is reduced (but not below $10,000 or $5,000 for married individuals filing separately) by 30% of the amount that an individual’s modified adjusted gross income exceeds the threshold amount. The threshold amount in 2025 is $500,000 ( $250,000 for married individuals filing separately). The threshold amount increases in 2026 to $505,000 ($252,500 for married individuals filing separately) and, then, increases by 1% each year after 2026, through 2029.

Chapter 2--Delivering on Presidential Priorities to Provide New Middle-Class Tax Relief

This chapter establishes new tax deductions for qualified tips, qualified overtime, and some interest paid on a passenger vehicle loan. This chapter also establishes a new type of tax-advantaged account, called a Trump account.

Below is a summary of the provisions in this chapter.

(Sec. 70201) This section establishes a new above-the-line tax deduction, through 2028, of up to $25,000 for qualified tip income, which begins to phase out for individuals whose modified adjusted gross income exceeds $150,000 ($300,000 for joint filers). (Above-the-line deductions are subtracted from gross income to calculate adjusted gross income.)

To be eligible for the tax deduction for qualified tip income, individuals must provide a work-eligible Social Security number for themselves and, if married, must file a joint federal tax return.

(Sec. 70202) This section establishes a new above-the-line tax deduction, through 2028, of up to $12,500 ($25,000 for joint filers) for qualified overtime compensation, which begins to phase out for individuals whose modified adjusted gross income exceeds $150,000 ($300,000 for joint filers).

To be eligible for the tax deduction for qualified tip income, individuals must provide a work-eligible Social Security number for themselves and, if married, must file a joint federal tax return.

(Sec. 70203) This section establishes a new tax deduction of up to $10,000 for interest paid on indebtedness incurred in 2025 through 2028 to buy a passenger vehicle (for personal use and subject to certain requirements). The tax deduction phases out for taxpayers with modified adjusted gross income that exceeds $100,000 (or $200,000 for joint filers).

(Sec. 70204) This section establishes a new type of tax-advantaged account, called a Trump account, which is an individual retirement account (IRA) (but not a Roth IRA) for individuals under 18 years old. Up to $5,000 (adjusted for inflation) may be contributed to a Trump account in each year before the account beneficiary reaches the age of 18 years old. (Certain rollovers and qualified general contributions do not count towards the annual contribution limit.)

Distributions from a Trump account may be made once the account beneficiary reaches the age of 18 years old. (Some exceptions apply.)

This section also authorizes a one-time federal government deposit of $1,000 into a Trump account for individuals born after December 31, 2024 and before January 1, 2029 (subject to certain other requirements).

Chapter 3--Establishing Certainty and Competitiveness for American Job Creators

Subchapter A--Permanent U.S. Business Tax Reforms and Boosting Domestic Investment

This subchapter makes a number of changes to business-related federal tax provisions.

Below is a summary of provisions in this subchapter.

(Sec. 70301) This section permanently extends 100% bonus depreciation for property acquired and placed into service (and for certain plants planted or grafted) on or after January 19, 2025. (Bonus depreciation generally allows a business to deduct either the full cost or a large percentage of the cost of qualified property in the year that the property is placed into service, rather than depreciating such costs over a period of time.)

(Sec. 70302) This section allows taxpayers to deduct domestic research and experimental expenses in the year such expenses are incurred (rather than requiring taxpayers to capitalize and amortize such expenses over 5 years or, if elected, over 10 years). However, under this section, taxpayers must continue to capitalize and amortize over a 15-year period foreign research and experimental expenses.

Under this section, taxpayers may elect to capitalize and amortize over at least 60 months domestic research and experimental expenses. (Some exclusions apply.)

Further, under this section (1) small business taxpayers (with average annual gross receipts of $31 million or less) may claim a tax deduction for domestic research and experimental expenses retroactively to tax years beginning after December 31, 2021, and (2) taxpayers may elect to accelerate amortization attributable to domestic research and experimental expenditures paid or incurred after December 31, 2021 and before January 1, 2025.

(Sec. 70303) This section reinstates the exclusion of the tax deduction for depreciation, amortization, or depletion from the calculation of adjusted taxable income for purposes of the limitation on the tax deduction for interest expenses for tax years beginning after December 31, 2024.

This section also expands the exclusion of interest on floor plan financing from the limit on the tax deduction for business interest expenses to include interest on floor plan financing of any camper or trailer designed to (1) provide temporary living quarters for recreational, camping, or seasonal use; and (2) be towed by, or affixed to, a motor vehicle.

(Sec. 70304) This section makes permanent the business tax credit for paid family and medical leave and allows employers to base the tax credit on certain wages or premiums paid.

Specifically, under this section, an eligible employer may claim a tax credit beginning in 2026, as part of the general business tax credit, for up to 25% of either (1) wages paid to qualifying employees during any period that such employees are on family and medical leave, or (2) the total amount of premiums paid or incurred for insurance policies that provide paid family and medical leave for employees. (As background, for 2018-2025, an eligible employer may claim a tax credit as part of the general business tax credit for up to 25% of wages paid to qualifying employees during any period that such employees are on family and medical leave.)

(Sec. 70305) This section provides multiple exceptions to the limitation imposed on the tax deduction for employer-provided meals. 

Specifically, an employer generally may not deduct certain expenses paid or incurred after 2025 for (1) providing food or beverages to employees through an eating facility (operated by the employer for employees) that meets the de minimis requirements for fringe benefits (e.g., office snacks and coffee), or (2) meals provided by the employer for the convenience of the employer on the employer’s premises to employees and their spouses and dependents. (As background, de minimis fringe benefits are benefits that are so small as to make accounting for them unreasonable or impractical.)

However, under this section, an employer may continue to deduct such expenses if

sold to customers (including employees) for adequate and full consideration,

required to be provided under federal law by the employer to the crew of a commercial vessel,

provided by the employer to the crew of a fishing vessel, or

provided to employees of certain fishing processing facilities in Alaska that are not located in a metropolitan area.

(Sec. 70306) This section increases to $2.5 million (from $1.25 million in 2025 and adjusted annually for inflation) the maximum amount that may be deducted (expensed) for certain depreciable business assets. This section also increases to $4 million (from $3.13 million in 2025 and adjusted annually for inflation) the dollar amount at which the tax deduction begins to phase out. Both amounts continue to be annually adjusted for inflation.

(Sec. 70307) This section provides for an elective 100% depreciation allowance for nonresidential real property that is placed into service before January 1, 2031, and that meets certain other requirements. (Some limitations apply.)

(Sec. 70308) This section increases the advance manufacturing tax credit to 35% (from 25%) for property placed into service after December 31, 2025.

(Sec. 70309) This section expands the exclusion from gross income for interest on certain bonds issued by state or local governments (specifically tax-exempt facility bonds) to include interest on bonds for which at least 95% of the net proceeds are used to finance a spaceport. (Thus, spaceports are treated in the same manner as airports for purposed of the federal tax-exempt facility bond rules.)

Under this section, a spaceport is defined as any facility located at or in close proximity to a launch site or reentry site used for

manufacturing, assembling, or repairing spacecraft, space cargo;

flight control operations;

providing launch services and reentry services; or

transferring crew, spaceflight participants, or space cargo to or from spacecraft.

Further, this section provides that a tax-exempt facility bond is not considered federally guaranteed because an agency of the U.S. government is paying rent, fees, or charges for the use of the spaceport. (As background, state and local bonds that are federally guaranteed are not tax-exempt unless an exception applies.)

Subchapter B--Permanent America-First International Tax Reforms

Part I--Foreign Tax Credit

This part makes multiple changes to the foreign tax credit.

Below is a summary of the provisions in this part.

(Sec. 70311) This section limits the tax deductions a domestic corporate shareholder may allocate to net CFC tested income (formerly known as global intangible taxable income [GILTI] and renamed under Section 70323 of this act) for purposes of determining the limit on the foreign tax credit. (In this context, CFC refers to controlled foreign corporation.)

Specifically, under this section, a domestic corporation may allocate to net CFC tested income (1) the tax deduction for 40% of the net CFC tested income amount included by such corporation in gross income and amounts treated as dividends attributable to such amounts, and (2) any other deduction directly allocable to such income.

Further, under this section, interest expenses and research and development expenses paid by a domestic corporate shareholder may not be apportioned to net CFC tested income.

(Sec. 70312) This section increases the tax credit allowed to a domestic corporation for income taxes paid by a controlled foreign corporation attributable to income included by the corporation as subpart F income and net CFC tested income (formerly known as GILTI and renamed under Section 70323 of this act). 

Under this section, for tax years beginning in 2026, a domestic corporation is allowed a foreign tax credit of up to 90% of the foreign income taxes that are paid or accrued by a controlled foreign corporation of which the domestic corporation is a shareholder and that are attributable to CFC tested income. (For tax years beginning before 2026, a domestic corporation generally is allowed a foreign tax credit of up to 80% of such foreign income taxes paid or accrued.) 

As background, the allowance of a tax credit for only a percentage of the foreign taxes paid or accrued on net CFC tested income is also known as the foreign tax credit haircut. Thus, under this section, the foreign tax credit haircut is decreased to 10% (from 20%).

This section also applies the 10% foreign tax credit haircut to foreign income taxes paid or accrued on distributions of previously taxed net CFC tested income.

(Sec. 70313) This section allows a percentage of the income from the sale of certain inventory to be treated as foreign-sourced income for purposes of calculating the foreign tax credit.

Specifically, under this section, a U.S. person may treat as foreign-sourced income up to 50% of the income from the sale of inventory produced in the United States (for use outside of the United States) that is attributable to a foreign office or fixed place of business outside of the United States. 

Part II--Foreign-Derived Deduction Eligible Income and Net CFC Tested Income

This part makes multiple changes to the tax deduction allowed to a domestic corporation for foreign-derived intangible income and GILTI.

Below is a summary of the provisions in the part.

(Sec. 70321) This section increases the tax deduction allowed to a domestic corporation for foreign-derived deduction eligible income (formerly known as foreign-derived intangible income and renamed under Section 70323 of this act) and net CFC tested income (formerly known as GILTI and renamed under Section 70323 of this act).

Under this section, for tax years beginning in 2026, a domestic corporation generally may claim a tax deduction equal to the sum of (1) 33.34% of such corporation’s foreign-derived deduction eligible income, and (2) 40% of such corporation’s net CFC tested income.

As background, for tax years beginning after 2017 and before 2026, a domestic corporation generally is allowed a tax deduction equal to the sum of (1) 37.5% of such corporation’s foreign-derived intangible income, and (2) 50% of such corporation’s GILTI. As enacted by the Tax Cuts and Jobs Act and prior to modification by this section, the deduction decreased starting in 2026, to the sum of (1) 21.875% of such corporation’s foreign-derived intangible income, and (2) 37.5% of such corporation’s GILTI and amounts treated as dividends attributable to such amounts.

(Sec. 70322) This section excludes gain from the sale or disposition of certain property from the calculation of the tax deduction for foreign-derived deduction eligible income.

Specifically, under this section, deduction eligible income (for purposes of the tax deduction for foreign-derived deduction eligible income) may not include gain from the sale or other disposition (including the deemed sale or other disposition) occurring after June 16, 2025, of (1) property of a type that gives rise to rents or royalties, and (2) any other property that is subject to depreciation, amortization, or depletion by the seller of such property.

Further, under this section, deduction eligible income must be reduced by expenses and deductions directly related to such income.

(Sec. 70323) This section eliminates the use of a domestic corporation’s deemed tangible income return in determining foreign-derived intangible income and such corporation’s net deemed tangible income return in determining GILTI. As a result, under this section, the term foreign-derived intangible income is renamed foreign-derived deduction eligible income and the term GILTI is renamed net CFC tested income.

Part III--Base Erosion Minimum Tax

This part makes changes to the base erosion and anti-abuse tax (BEAT).

Below is a summary of the provision in this part.

(Sec. 70331) This section decreases the BEAT rate to 10.5% (from 12.5%) for tax years beginning after 2025. (Prior to amendment by this section, the BEAT rate wass 10% for 2025 and 12.5% for tax years after 2025.)

Part IV--Business Interest Limitation

This part makes changes to the calculation of the limitation on the tax deduction of business interest expenses. Under current law, the tax deduction for business interest expenses is limited to the sum of (1) business interest income for the tax year in which the tax deduction is being claimed, (2) 30% of the taxpayer’s adjusted taxable income, and (3) the taxpayer’s floor plan financing interest.

Below is a summary of the provisions in this part.

(Sec. 70341) This section provides that the limitation on tax deduction of business interest is calculated before capitalizable interest is calculated. (Some exceptions apply.)

(Sec. 70342) This section excludes subpart F income and net CFC tested income (formerly known as GILTI and renamed under section 70323 of this act) from adjusted taxable income for purposes of calculating limitation on tax deduction of business interest.

Part V--Other International Tax Reforms

This part makes permanent and modifies multiple federal tax provisions that impact foreign corporations.

Below is a summary of the key provisions in this part.

(Sec. 70351) This section permanently extends the CFC look-through rule. (Under the CFC look-through rule, certain interest expenses, dividends, rents, and royalties received by one CFC from a related CFC are not treated as foreign personal holding company income [for purposes of calculating subpart F income] if certain other requirements are met.)

(Sec. 70352) This section requires a specified foreign corporation (generally a CFC or any foreign corporation with respect to which one or more domestic corporations is a U.S. shareholder) to use the taxable year of their majority U.S. shareholder , effective for tax years beginning after November 30, 2025. (For tax years beginning on or before November 30, 2025, a specified foreign corporation may elect a tax year beginning one month earlier than the majority U.S. shareholder.)

Chapter 4--Investing in American Families, Communities, and Small Businesses

Subchapter A--Permanent Investments in Families and Children

This subchapter makes multiple changes to federal tax provisions related to children and dependents.

Below is a summary of the provisions in this subchapter.

(Sec. 70401) This section increases the tax credit for employers that provide child care to their employees. Under this section, the portion of the tax credit for qualified child care expenses increases to 40% (from 25%) or to 50% for eligible small businesses. This section also increases the maximum amount of the tax credit to $500,000 (from $150,000) or $600,000 for eligible small businesses (adjusted for inflation).

(Sec. 70402) This section makes up to $5,000 of the adoption tax credit refundable and adjusts this amount annually for inflation after 2025. However, under this section, the refundable portion of the adoption tax credit may not be carried forward. (Under current law, the amount of the allowed adoption tax credit that exceeds an individual’s tax liability may be carried forward for up to five years.)

(Sec. 70403) This section allows Indian tribal governments to determine whether a child has special needs for purposes of calculating the adoption tax credit.

(Sec. 70404) This section increases to $7,500 (or $3,750 for a married individual filing separately) from $5,000 (or $2,500 for a married person filing separately) the exclusion from gross income for amounts paid or incurred by an employer to an employee as part of a dependent care assistance program.

(Sec. 70405) This section increases the non-refundable tax credit for expenses paid by an individual for the care of a child or dependent that enable such individual to be gainfully employed. 

Subchapter B--Permanent Investments in Students and Reforms to Tax-Exempt Institutions

This subchapter makes multiple changes to federal tax provisions related to education and certain educational institutions.

Below is a summary of the provisions in this subchapter.

(Sec. 70411) This section establishes a nonrefundable tax credit of up to $1,700 for cash contributions made by an individual who is a citizen or resident of the United States to a tax-exempt organization that provides scholarships for qualified elementary and secondary school expenses to eligible students (scholarship granting organization), subject to limitations.

(Sec. 70412) This section makes permanent the exclusion of education assistance paid by an employer to an employee (up to a maximum amount) from (1) gross income by an employee, and (2) wages by an employer (for employment tax purposes). Further, under this section, the maximum amount ($5,250 for 2025 and 2026) of employer-paid education assistance that may be excluded from gross income and wages is adjusted annually for inflation beginning in 2027.

(Sec. 70413) This section expands the expenses eligible for tax-free withdrawals from qualified tuition programs (529 plans) to include certain additional expenses related to enrollment or attendance at an elementary or secondary school. 

This section also increases to $20,000 (from $10,000) the limit on distributions from a 529 plan used in connection with enrollment or attendance at an elementary or secondary school.

(Sec. 70414) This section expands the expenses eligible for tax-free withdrawals from 529 plans to include tuition, fees, books, supplies, equipment, and other expenses related to the enrollment or attendance in a recognized postsecondary credentialing program.

(Sec. 70415) This section replaces the excise tax of 1.4% imposed on the net investment income of certain private university and college endowments with a new rate structure of 1.4%, 4%, or 8%, depending on several variables including the value of the endowment and the number of full-time students who meet certain other requirements.

(Sec. 70416) This section expands the excise tax imposed on certain tax-exempt organizations for excess compensation paid to certain employees (an employee who is one of the top five highest compensated employees of such organization) to include excess compensation paid to any employee of such organization. (Thus, a tax-exempt organization is liable for an excise equal to the corporate tax rate [21%] multiplied by the sum of remuneration in excess of $1 million and excess parachute payment paid to any employee by the tax-exempt organization.)

Subchapter C--Permanent Investments in Community Development

This subchapter makes multiple changes to certain federal tax incentives related to investing in certain communities and tax deductions for charitable contributions.

Below is a summary of the provisions in this subchapter.

(Sec. 70421) This section permanently extends the Opportunity Zone program, establishes specific tax incentives for investments in rural areas, and modifies the rules related to deferred gains and stepped-up basis.

As background, the Tax Cuts and Jobs Act temporarily authorized tax incentives for investments (made through qualified opportunity funds) in designated economically distressed areas (called qualified opportunity zones). Specifically, qualified opportunity fund investors may (1) defer capital gain if such gain is reinvested in a qualified opportunity fund within 180 days, (2) exclude from gross income all (or part) of the capital gains from qualified opportunity fund investments held for a certain period of time, and (3) receive a step up in basis (value of the capital asset when it is sold) of 10% for qualified opportunity fund investments held for at least five years and an additional 5% for qualified opportunity fund investments held for at least seven years. (An increase in the basis of a capital asset generally lowers the taxable amount of such asset.)

Under this section, capital gains from qualified opportunity fund investments made beginning in 2027, may be deferred to the earlier of the date on which such investment is sold or exchanged or five years after the date on which the investment is made. (Capital gain from qualified opportunity investments made before 2027, may be deferred to the earlier of the date on which such investment is sold or exchanged or December 31, 2026. (Thus, this section establishes a rolling five-year deferral for capital gains from qualified opportunity funds.)

This section also eliminates the additional 5% step up in basis for qualified opportunity zone fund investments held for at least 7 years, but increases the basis for such investments held for at least 10 years to the fair market value of the investment. 

Finally, this section establishes qualified rural opportunity funds for investments in rural areas. Investors in qualified rural opportunity funds may be eligible for a 30% step up in basis if certain requirements are met.

(Sec. 70422) This section increases eligibility for the low-income housing tax credit (LIHTC) by increasing the amount that a state may allocate for the LIHTC and reducing the tax-exempt bond financing threshold.

As background, a taxpayer may claim the LIHTC for expenses incurred to rehabilitate or build rental housing for low-income tenants (1) if an allocation for the LIHTC is received from the state, or (2) a percentage of the project is financed by certain tax-exempt bonds. The amount a state may allocate for the LIHTC is calculated, in part, by multiplying a certain dollar amount (adjusted annually for inflation) by the state’s population. 

Under this section, beginning in 2026, the portion of the federal allocation to each state for the LIHTC that is based on the state’s population is increased by 12%.

Further, this section lowers to 25% (from 50%) the tax-exempt bond threshold. Thus, under this section, if 25% or more of the aggregate basis (i.e., generally the costs) of the building and the land on which the building is located is financed with tax-exempt bonds, then the taxpayer is eligible for the LIHTC for the entire eligible basis of the project without a LIHTC allocation from the state. (If less than 25% of such basis is financed with tax-exempt bonds, then only the basis of the project that is financed with the tax-exempt bonds is eligible for the LIHTC.)

(Sec. 70423) This section permanently extends the New Markets Tax Credit (a tax credit for certain investments in eligible, low-income communities).

(Sec. 70424) This section makes permanent and increases to $1,000 for single filers (from $300) or $2,000 for joint filers (from $600 for joint filers) the tax deduction for charitable contributions made by individuals who do not itemize their federal income tax deductions.

(Sec. 70425) This section imposes a new limitation on the itemized tax deduction for charitable contributions made by individuals beginning in 2026. Under this section, an itemized tax deduction for charitable contributions is allowed only to the extent that an individual’s aggregate charitable contributions exceed 0.5% of the individual’s contribution base (adjusted gross income calculated without including any net operating loss carryback amount). (This limitation is generally known as the 0.5% floor for the itemized tax deduction for individual charitable contributions and does not apply to tax deductions for charitable contributions made by individuals who do not itemize their tax deductions under Section 70424 of this act.)

Further, under this section, the 0.5% floor also applies to excess charitable contributions made by individuals in 2026 or after that are carried forward to subsequent tax years. (Excess charitable contributions made prior to 2026 that are carried forward to subsequent tax year are not subject to the 0.5% floor.) 

(Sec. 70426) This section further limits the tax deduction for charitable contributions made by a corporation beginning in 2026. Under this section, a tax deduction for charitable contributions made by a corporation is allowed only to the extent that the corporation’s aggregate charitable contributions exceed 1% of the corporation’s taxable income. (This limitation is generally known as the 1% floor for the tax deduction for charitable contributions made by a corporation.) 

As a result of the 1% floor imposed by this section and existing limitations, a corporation may deduct charitable contributions only to the extent that such contributions exceed 1% of the corporation’s taxable income but do not exceed 10% of the corporation’s taxable income (10% limit).

Finally, under this section, special rules and limitations also apply to corporate charitable contributions carried forward to subsequent tax years.

(Sec. 70427) This section reinstates and makes permanent (beginning in 2026) the $13.25 (currently $10.50) per proof gallon limit on the amount that is transferred by the United States to Puerto Rico and the U.S. Virgin Islands for excise taxes collected on distilled spirits (e.g., rum) imported from Puerto Rico and the U.S. Virgin Islands.

As background, the United States imposes an excise tax of $13.50 per proof gallon on distilled spirits produced in or imported into the United States. A certain amount of the excise tax collected on distilled spirits imported from Puerto Rico and the U.S. Virgin Islands are transferred back into the treasury of each possession. (This transfer is commonly known as the cover over or the rum cover over.) For 2022-2026, the rum cover over amount is limited to $10.50 per proof gallon. An additional rum cover over in the amount of $2.75 (for a total rum cover over of $13.25) authorized by Congress expired at the end of 2021.

(Sec. 70428) This section treats participation or investment in fisheries (e.g., harvesting, processing, transportation, sales, and marketing of fish and fish products) in the Bering Sea and Aleutian Islands by certain tax-exempt Alaskan villages as substantially related to the village’s tax-exempt purpose and, thus, income gained from such activities remains tax-exempt.

(Sec. 70429) This section increases to $50,000 (from $10,000) the limit on the tax deduction for expenses incurred by a whaling captain (as recognized by the Alaska Eskimo Whaling Commission) in carrying out sanctioned bowhead whaling activities.

(Sec. 70430) This section allows certain residential construction contracts entered into in tax years beginning after July 4, 2025, to use another permissible method of accounting (e.g., the uniform capitalization rules), rather than the percentage of completion method of accounting. (The percentage of completion method of accounting or the percentage of completion-capitalized cost accounting method of accounting is used for residential construction contracts that are not home construction contracts and that are entered into in tax years beginning on or before July 4, 2025.)

Subchapter D--Permanent Investments in Small Business and Rural America

This subchapter modifies certain reporting requirements related to third-party settlement organizations and makes changes to several other federal tax provisions.

Below is a summary of the key provisions in this subchapter.

(Sec. 70432) This section modifies the reporting requirements applicable to third-party settlement organizations (e.g., certain online platforms, apps, and card payment processors). Under this section, such organizations are required to issue Internal Revenue Service (IRS) Form 1099-K to payees who receive more than $20,000 from more than 200 separate transactions. (This section reverses a provision in the American Rescue Plan Act of 2021 that lowered the reporting threshold to $600 with no minimum on the number of transactions, the implementation of which was delayed and phased in by the IRS. For 2025, under current law, such organizations are required to issue IRS Form 1099-K to payees who receive more than $2,500, regardless of the number of transactions.)

(Sec. 70434) This section expands the federal tax deduction for certain film, television, and theatrical production costs to allow a deduction of up to $150,000 of qualified sound recording production costs in the tax year such costs are incurred. A qualified sound recording production is a sound recording that is produced and recorded in the United States. (Under current law, up to $20 million of film, television, and theatrical production costs incurred before 2026 may be deducted.)

The section also extends bonus depreciation to qualified sound recording production costs.

(Sec. 70436) This section eliminates the $200 excise tax imposed on the transfer of certain firearms other than machine guns and destructive devices (e.g., bombs, grenades, certain rockets, missiles, and mines). As a result, the $200 excise tax is not applicable to silencers, short-barreled rifles and short-barreled shotguns.

Chapter 5--Ending Green New Deal Spending, Promoting America-First Energy and Other Reforms

Subchapter A--Termination of Green New Deal Subsidies

This subchapter terminates multiple energy-related federal tax credits.

Below is a summary of the provisions in this subchapter.

(Sec. 70501) This section terminates the previously-owned clean vehicle tax credit. (Thus, taxpayers may claim a tax credit of up to $4,000 for the purchase of a qualified previously-owned clean vehicle before October 1, 2025.)

(Sec. 70502) This section terminates the clean vehicle tax credit. (Thus, taxpayers may claim a tax credit of up to $7,500 for the purchase of a qualified new clean vehicle before October 1, 2025.)

(Sec. 70503) This section terminates the qualified commercial clean vehicle tax credit. (Thus, businesses may claim a tax credit of up to $40,000 for the purchase of a commercial clean vehicle before October 1, 2025.)

(Sec. 70504) This section terminates the alternative fuel refueling property tax credit. (Thus, a tax credit of up to $1,000 for individuals or up to $100,000 for businesses is allowed for the installation of property before July 1, 2026, that is used to store or dispense clean-burning fuel or to recharge electric vehicles.)

(Sec. 70505) This section terminates the energy efficient home improvement tax credit. (Thus, taxpayers may claim a tax credit of up to $3,200, for certain energy-efficient property purchased and installed into a primary residence before 2026.)

(Sec. 70506) This section terminates the residential clean energy tax credit. (Thus, taxpayers may claim a tax credit for certain renewable energy equipment for a principal residence before 2026.)

(Sec. 70507) This section terminates the energy efficient commercial buildings tax deduction. (Thus, taxpayers may claim a deduction for certain energy efficient commercial property the construction of which begins before July 1, 2027.)

(Sec. 70508) This section terminates the new energy efficient home tax credit. (Thus, contractors may claim a business tax credit for constructing an energy-efficient home that is acquired by a person for use as a residence before July 1, 2026.)

(Sec. 70509) This section terminates the special five-year cost recovery period for investments in certain solar and wind property for which construction begins after December 31, 2024. 

As background, costs of property used in a trade or business to produce income generally are capitalized and then depreciated or amortized over a period of time (known as the cost recovery period). The cost recovery period for property used to produce electricity generally depends on the method for producing such electricity. However, for certain solar and wind property for which construction begins on or before December 31, 2024, the cost recovery period is five years. For solar and wind property for which construction begins after December 31, 2024, the general modified accelerated cost recovery system (MACRS) and Internal Revenue Service guidance apply.

(Sec. 70510) This section disallows the zero-emission nuclear power production tax credit for certain foreign entities and foreign-influenced entities (e.g., taxpayers that make certain types of payments to certain foreign entities). (The zero-emission nuclear power production tax credit generally is allowed for electricity produced at a qualified nuclear power facility and sold to an unrelated third person.)

(Sec. 70511) This section terminates the clean hydrogen production tax credit in 2028 and, thus, the tax credit is allowed only for clean hydrogen production facilities for which construction begins before January 1, 2028. (As background, prior to changes made by this section, the tax credit is available for the production of clean hydrogen by a qualifying facility for which construction begins before 2033.)

(Sec. 70512) This section terminates the clean electricity production tax credit for (1) wind and solar facilities placed into service after December 31, 2027, and (2) certain wind energy property or solar water heating property if such property is leased to a third party during the tax year. (As background, a tax credit is allowed, other than as provided by this section and subject to limitations, for clean electricity produced by a qualified facility. The tax credit is phased out beginning in the later of 2032 or when greenhouse gas emissions from the production of electricity are reduced to a certain level.) 

This section also disallows the clean electricity production tax credit for certain foreign entities and foreign-influenced entities (e.g., taxpayers that make certain types of payments to certain foreign entities). 

Further, under this section, penalties may be imposed for (1) substantial misstatements of a certain amount related to the supply chain of manufactured products and product components for which the clean electricity production tax credit is claimed, and (2) overstating depreciable assets to claim the clean energy production tax credit. (Under this act, such penalties are also applicable to the clean electricity investment tax credit and the advanced manufacturing production tax credit.)

(Sec. 70513) This section terminates the clean electricity investment credit for (1) wind and solar property, other than energy storage technology, placed into service after December 31, 2027; and (2) certain wind energy property, solar electric property, and solar water heating property if such property is leased to a third party during the tax year. (As background, a tax credit is allowed, other than as provided by this section and subject to limitations, for certain investments in energy storage technology or a facility that is used for generating electricity with an anticipated greenhouse gas admission rate of not greater than zero.)

Under this section, the clean electricity production tax credit is not allowed for certain foreign entities and foreign-influenced entities (e.g., taxpayers that make certain types of payments to certain foreign entities). 

This section also sets the clean electricity production tax credit percentage to 30% (which may not be increased) for qualified fuel cell property for which construction begins after 2025. (As background, the clean electricity production tax credit is 6%, but may be increased to 30% if certain requirements are met, and further increased for property that is placed into service in certain locations, that meets certain construction requirements, or for which an allocation is received from the Clean Electricity Low-Income Communities Bonus Credit Amount Program.)

(Sec. 70514) This section terminates the advanced manufacturing production credit for wind energy components produced and sold after 2027, and for metallurgical coal (i.e., coking coal or coal used to manufacture steel) produced after 2029. This section also phases out the advanced manufacturing production tax credit for other critical minerals produced after 2030, as follows:

75% of the tax credit otherwise allowed for critical minerals produced in 2031,

50% of the tax credit otherwise allowed for critical minerals produced in 2032,

24% of the tax credit otherwise allowed for critical minerals produced in 2033, and

0% of the tax credit otherwise allowed for critical minerals produced in 2034.

Under this section, the advanced manufacturing production tax credit is not allowed for certain foreign entities and foreign-influenced entities (e.g., taxpayers that make certain types of payments to certain foreign entities).

(Sec. 70515) This section provides that the Department of the Treasury may not reallocate amounts that are (1) allocated for the qualified advanced energy projects tax credit, and (2) subsequently revoked. (As background, the Treasury may allocate up to $10 billion [in the form of a tax credit] to taxpayers for approved investments in certain advanced energy projects, subject to certain conditions and limitations. An allocation of the tax credit may be revoked if the project is not completed on time or certain other requirements are not met.) 

Subchapter B--Enhancement of America-First Energy Policy

This subchapter modifies multiple energy-related federal tax provisions and makes changes to the calculation of the corporate alternative minimum tax.

Below is a summary of the key provisions in this subchapter.

(Sec. 70521) This section extends the clean fuel production tax credit through 2029 and

requires that clean fuels produced from feedstock use feedstock sourced from the Unites States, Canada, or Mexico;

excludes emissions attributable to an indirect land use change from the calculation of lifecycle emissions estimates (used in part of the calculation of the clean fuel production tax credit); and

requires the Department of the Treasury to provide distinct emission rates for specific feedstocks used to produce clean fuels, including dairy manure, swine manure, and poultry manure.

This section also disallows the clean fuel production tax credit for certain foreign entities and foreign-influenced entities (e.g., taxpayers that make certain types of payments to certain foreign entities).

(Sec. 70522) This section increases the carbon oxide sequestration tax credit to $17 (from $12) per metric ton for qualified carbon dioxide used (1) as a tertiary injectant in a qualified oil or gas natural recovery project and then securely stored or (2) by fixing such carbon dioxide through photosynthesis or chemosynthesis, chemical conversion, or for some other commercial market purpose. (As a result, the same carbon oxide sequestration tax credit applies to carbon oxide captured and sequestered and carbon dioxide captured, used, and then sequestered.)

This section also disallows the carbon oxide sequestration tax credit for certain foreign entities and foreign-influenced entities (e.g., taxpayers that make certain types of payments to certain foreign entities).

(Sec. 70523) This section allows corporations to reduce their adjusted financial statement income (for purposes of calculating the corporate alternative minimum tax) to account for certain intangible costs related to oil, gas, or geothermal well drilling and development.

(Sec. 70525) This section provides for a refund of previously imposed and paid excise taxes upon the transfer of nontaxable, indelibly dyed diesel fuel or kerosene used for agricultural, off-road, or other nontaxable purposes.

Subchapter C--Other Reforms

This subchapter eliminates the de minimis exemption for certain imports into the United States and establishes a new civil penalty for using such exemption in a manner that violates U.S. customs laws.

Below is a summary of the provision in this subchapter.

(Sec. 70531) This section eliminates the exemption from certain duties, fees, and processes for imports of up to $800 (commonly referred to as the de minimis exemption), effective July 1, 2027.

Further, this section establishes a civil penalty for entering, introducing, facilitating, or attempting to introduce an article into the United States using the de minimis exemption in a manner that violates U.S. customs laws. The amount of the civil penalty is up to $5,000 for the first violation and up to $10,000 for subsequent violations.

Chapter 6--Enhancing Deduction and Income Tax Credit Guardrails, and Other Reforms

This chapter modifies various federal tax deductions and credits.

Below is a summary of the key provisions in this subchapter.

(Sec. 70604) This section establishes a 1% excise tax on transfers of payments from one country to another (also known as remittance transfers). The excise tax is imposed on the sender of the remittance transfer and collected and remitted to the Department of the Treasury (quarterly) by the transfer provider. 

Under this section, the excise tax applies only to remittance transfers for which the sender provides cash, a money order, a cashier’s check, or other similar physical instrument to the transfer provider. The excise tax does not apply to remittance transfers if (1) the funds are withdrawn from an account held at certain financial institutions, or (2) funded with a debit card or credit card issued in the United States.

(Sec. 70606) This section requires an individual to provide a Social Security number to be eligible for the American Opportunity and Lifetime Learning tax credits.

(Sec. 70607) This section directs the Internal Revenue Service to deliver a report to Congress on tax filing programs. Specifically

the cost of enhancing and establishing public-private partnerships that provide for free tax filing for up to 70% of all taxpayers (calculated by adjusted gross income),

the cost to replace any direct e-file programs run by the Internal Revenue Service,

taxpayer opinions and preferences regarding a taxpayer-funded, government-run tax filing service or a free tax filing service provided by the private sector,

assessment of the feasibility of providing simple and consistent options across participating tax filing providers, and

the cost of developing and running a free direct e-file tax return system..

Subtitle B--Health

Chapter 1--Medicaid

Subchapter A--Reducing Fraud and Improving Enrollment Processes

(Sec. 71101) This section delays until FY2035 implementation of certain provisions of the rule titled
 Streamlining Medicaid; Medicare Savings Program Eligibility Determination and Enrollment
, which was issued by the Centers for Medicare & Medicaid Services (CMS) on September 21, 2023. 

Specifically, the section delays provisions of the rule that (1) specify that individuals who must pay a premium to enroll in Medicare hospital services, reside in a group payer state, and enroll during a general enrollment period may qualify for Medicare Savings Programs (MSPs) as early as the month of their entitlement to Medicare hospital services; (2) require states to use certain data from the Social Security Administration (SSA) to facilitate the enrollment of qualifying individuals in both MSPs and the Low-Income Subsidy (LIS) program under the Medicare prescription drug benefit; and (3) align the definition of family size under MSPs with the definition under the LIS program.

(MSPs allow individuals to receive Medicare cost-sharing and premium assistance from state Medicaid programs if they meet certain income and resource criteria. The LIS program, also known as the Extra Help program, provides similar assistance with respect to cost-sharing for covered drugs under the Medicare prescription drug benefit.)

The section provides $1 million for FY2026 for the CMS to implement this section and Sec. 71102 of this act.

(Sec. 71102) This section delays until FY2035 implementation of certain provisions of the rule titled 
Medicaid Program; Streamlining the Medicaid, Children's Health Insurance Program, and Basic Health Program Application, Eligibility Determination, Enrollment, and Renewal Processes
, which was issued by the CMS on April 2, 2024.

Specifically, the section delays provisions of the rule that, among other changes, (1) allow state Medicaid programs to verify an individual’s U.S. citizenship and identity through certain systems without additional proof of identity; (2) align certain Medicaid enrollment processes for those whose eligibility is not based on income with those that are based on income; and (3) establish additional timelines for Medicaid eligibility terminations, including when there is a change in an individual’s circumstances.

(Sec. 71103) This section requires the CMS to establish a centralized system for states to check whether enrollees are simultaneously enrolled in Medicaid or the Children’s Health Insurance Program (CHIP) in multiple states. 

Beginning no later than 2027, states must regularly obtain the addresses of Medicaid and CHIP enrollees from specified authorized sources. Beginning no later than FY2030, states must report on at least a monthly basis the Social Security numbers of enrollees to the CMS' newly established system. The CMS must notify states on at least a monthly basis of individuals who are enrolled in multiple states so that states may take appropriate action.

The section provides $10 million for FY2026 and $20 million for FY2029 for the CMS to establish and maintain the new system, respectively.

(Sec. 71104) This section requires state Medicaid programs to check, beginning in 2028, the SSA's Death Master File on at least a quarterly basis to determine whether Medicaid enrollees are deceased.

(Sec. 71105) This section provides statutory authority for the requirement that state Medicaid programs check, as part of the provider enrollment and reenrollment process, whether providers are deceased through the SSA's Death Master File. Beginning in 2028, the section requires states to continue to check this database on at least a quarterly basis after providers are enrolled.

(Sec. 71106) This section includes Medicaid payments to individuals for whom there is insufficient information as to their eligibility as erroneous excess payments that may ultimately reduce a state’s federal matching funds. These changes apply beginning in FY2030.

(Sec. 71107) This section requires state Medicaid programs to redetermine every six months, beginning with the first quarter after December 31, 2026, the eligibility of individuals who are enrolled in Medicaid as part of the Medicaid expansion population under the Patient Protection and Affordable Care Act. (That act allows states to extend Medicaid coverage to all adults under the age of 65 with incomes of up to 138% of the federal poverty level, including able-bodied adults without dependent children.)

The section provides $75 million for FY2026 for the CMS to implement these provisions.

(Sec. 71108) This section caps home equity limits for Medicaid nursing facility or other long-term care services beginning in 2028.

Currently, in order to qualify for such services, an individual’s home equity may not exceed certain limits, as set by states in accordance with federal standards and adjusted annually for inflation. For 2025, home equity limits set by states must be between $730,000 and $1,097,000.

The section caps the maximum home equity limit to $1 million, regardless of inflation. This limit does not apply to homes located on agricultural lots.

(Sec. 71109) This section generally restricts, beginning in FY2027, federal payment for Medicaid and CHIP to services for individuals who are U.S. residents and are either U.S. citizens, lawful permanent residents, Cuban-Haitian entrants, or Compact of Free Association migrants lawfully residing in the United States. The restrictions do not apply to certain mandatory emergency services provided to individuals who are not lawfully residing in the United States or to optional services provided to certain lawfully residing children and pregnant women.

Current law authorizes federal payment with respect to additional categories of individuals, including refugees; noncitizens granted parole for at least one year, asylum, or related relief; and Violence Against Women Act (VAWA) self-petitioners. The section excludes these individuals from eligibility. 

The section provides $15 million for FY2026 for the CMS to implement these provisions.

(Sec. 71110) This section reduces the Medicaid federal matching rate for emergency services provided to individuals who are not lawfully residing in the United States but who would otherwise qualify for Medicaid as part of the Medicaid expansion population in states that have expanded Medicaid. Specifically, the section limits, beginning in FY2027, the Medicaid federal matching rate for emergency services provided to individuals who are not lawfully residing in the United States to the same matching rate as would otherwise apply for such services (rather than the enhanced federal matching rate for states that have expanded Medicaid).

The section provides $1 million for FY2026 for the CMS to implement these provisions.

Subchapter B--Preventing Wasteful Spending

(Sec. 71111) This section delays until FY2035 implementation of certain provisions of the rule titled 
Medicare and Medicaid Programs; Minimum Staffing Standards for Long-Term Care Facilities and Medicaid Institutional Payment Transparency Reporting
, which was issued by the CMS on May 10, 2024. 

Specifically, the section delays provisions of the rule that, among other changes, (1) establish minimum staffing standards for nurses in Medicare and Medicaid long-term care facilities, including requiring a nurse to be onsite 24/7 and requiring a minimum of 3.48 total nurse staffing hours per resident per day; and (2) require state Medicaid programs to report on payments to direct care workers and support staff of nursing facilities and intermediate care facilities for individuals with intellectual disabilities. 

(Sec. 71112) This section shortens the window for retroactive Medicaid coverage. Specifically, the section specifies that, beginning with the first quarter after December 31, 2026, Medicaid coverage may begin retroactively (1) for individuals in the Medicaid expansion population, one month prior to the application filing date; and (2) for all other individuals, two months prior to the application filing date. Additionally, CHIP coverage may retroactively begin two months prior to the application filing date. (Currently, coverage may begin three months prior to the application filing date.)

The section provides $10 million for FY2026 for the CMS to implement these provisions.

(Sec. 71113) This section prohibits federal Medicaid payment for one year to nonprofit health care providers that serve predominantly low-income, medically underserved individuals (i.e., essential community providers) if the provider (1) primarily furnishes family planning services, reproductive health, and related care; (2) offers abortions in cases other than that of rape, incest, or life-threatening conditions for the woman; and (3) in FY2023, received federal and state Medicaid payments totaling more than $800,000.

The section provides $1 million for FY2026 for the CMS to implement these provisions.

Subchapter C--Stopping Abusive Financing Practices

(Sec. 71114) This section requires states that had not chosen to expand Medicaid pursuant to the Patient Protection and Affordable Care Act prior to March 11, 2021, to do so by January 1, 2026, in order to receive the corresponding enhanced federal matching rate.

(Sec. 71115) This section generally limits Medicaid provider taxes beginning in FY2027.

Under current law, states may impose a provider tax of up to 6% of net patient service revenues to potentially receive additional federal matching funds. The section precludes states that have not expanded Medicaid from increasing the rate of a provider tax beyond that currently in effect in order to qualify for federal matching funds. For states that have expanded Medicaid, a provider tax may not exceed the current rate or a specified rate, whichever is lower; the maximum rate gradually decreases from FY2028-FY2032, with a maximum rate of 3.5% beginning in FY2032 (these limits do not apply to nursing and intermediate care facilities, which are instead limited to current rates). The section additionally precludes states from imposing a new provider tax if there is not already one in effect.

The section provides $20 million for FY2026 for the CMS to implement these provisions.

(Sec. 71116) This section provides $7 million per fiscal year for FY2026-FY2033 for the CMS to revise regulations so as to limit state-directed payments for inpatient hospital services, outpatient hospital services, nursing facility services, and qualified practitioner services at an academic medical center under Medicaid managed care contracts to the payment rate for services under Medicare, rather than the average commercial rate. For states that cover the Medicaid expansion population, payment is limited to 100% of the Medicare rate; for other states, payment is limited to 110% of the Medicare rate.

Subchapter D--Increasing Personal Accountability

(Sec. 71119) This section requires, beginning not later than the first quarter after December 31, 2026 (or earlier, at the option of the state), individuals who are eligible for Medicaid as part of the Medicaid expansion population to engage in community service, work, or other activities in order to qualify for Medicaid.

Specifically, the section requires these individuals to, on a monthly basis, (1) work at least 80 hours, (2) complete at least 80 hours of community service, (3) participate in a work program for at least 80 hours, (4) be enrolled at least half-time in an educational program, or (5) engage in any combination thereof for a total of at least 80 hours. Individuals may also qualify if they have a monthly income (or, for seasonal workers, an average monthly income over six months) that is at least as much as the equivalent of minimum wage multiplied by 80 hours.

Individuals who are applying for Medicaid must demonstrate compliance with these requirements for one to three months (as determined by the state) consecutively and immediately prior to filing an application; individuals who are already enrolled in Medicaid must demonstrate compliance for one month or more (as determined by the state), whether or not consecutive, during the period between the individual’s last eligibility determination and the next scheduled eligibility determination. 

States must verify an individual’s compliance upon a determination or redetermination of eligibility but may also choose to verify compliance more frequently. States may not waive the new requirements. However, states may choose to provide an exception for individuals experiencing short-term hardships (e.g., hospitalization).

The section excludes certain individuals from these requirements, including those with serious medical conditions or with dependent children aged 13 or younger. 

Upon request, the CMS may exempt a state from fully implementing these requirements until December 31, 2028. States requesting an exemption must demonstrate good faith efforts to comply with the requirements and provide a detailed timeline for implementation.

The section provides $200 million to states and $200 million to the CMS for FY2026 to implement these requirements.

(Sec. 71120) This section requires, beginning in FY2029, states to institute cost-sharing requirements for individuals who are eligible for Medicaid as part of the Medicaid expansion population and whose family income exceeds the federal poverty line. Cost sharing may not exceed $35 for an item or service; total cost sharing for all individuals in a family may not exceed 5% of the family’s income. 

The requirements do not apply to (1) services for which cost sharing is already prohibited (e.g., emergency services); (2) primary care, mental health, or substance use disorder services; or (3) services provided by federally qualified health centers, certified community behavioral health clinics, or rural health clinics. States may allow providers to condition the provision of services upon the payment of any required cost sharing.

The section provides $15 million for FY2026 for the CMS to implement these provisions.

Subchapter E--Expanding Access to Care

(Sec. 71121) This section authorizes additional home and community-based services (HCBS) waivers (also known as Section 1915(c) waivers) for state Medicaid programs beginning on July 1, 2028. States may seek waivers to provide HCBS to individuals without the need for certain determinations as to whether an individual requires hospital or institutional care (as is required for current waivers). States must establish other needs-based criteria for such services.

The section provides $50 million for FY2026 for the CMS to implement these provisions. It also provides $100 million for FY2027 to support state HCBS programs.

Chapter 2--Medicare

Subchapter A--Strengthening Eligibility Requirements

(Sec. 71201) This section generally restricts Medicare eligibility to U.S. citizens, lawful permanent residents, Cuban-Haitian entrants, and Compact of Free Association migrants lawfully residing in the United States. The SSA must identify Medicare enrollees who do not meet these requirements and terminate their enrollment within 18 months of this section’s enactment.

Current law authorizes additional categories of individuals who are lawfully present in the United States to qualify for Medicare, including refugees; noncitizens granted parole for at least one year, asylum, or related relief; noncitizens with Temporary Protected Status; and noncitizens with deferred action, including Deferred Action for Childhood Arrivals (DACA) recipients. The section excludes these individuals from eligibility.

(Sec. 71202) This section increases payments under the Medicare physician fee schedule for services furnished between January 1, 2026, and January 1, 2027.

Subchapter B--Improving Services for Seniors

(Sec. 71203) This section modifies certain provisions under the Medicare Drug Price Negotiation Program with respect to orphan drugs, including by excluding additional orphan drugs from qualifying for negotiation.

The Medicare Drug Price Negotiation Program requires the CMS to negotiate the prices of certain prescription drugs under Medicare beginning in 2026. Among other requirements, drugs must have had market approval for at least 7 years (for drug products) or 11 years (for biologics) to qualify for negotiation. The program does not apply to orphan drugs that are approved to treat only one rare disease or condition.

The section modifies these provisions so as to exclude any period in which a drug was an orphan drug from market approval calculations. It also excludes orphan drugs that are approved to treat more than one rare disease or condition from the program. The changes take effect in 2028.

Chapter 3--Health Tax

Subchapter A-- Improving Eligibility Criteria

This subchapter modifies eligibility and verification requirements for the premium tax credit (which may be used to purchase health insurance on an exchange).

Below is a summary of the provisions in this subchapter.

(Sec. 71301) This section limits a lawfully-present alien’s eligibility for the premium tax credit to

an alien who is lawfully admitted for permanent residence;

an alien who has been granted the status of Cuban and Haitian entrant; or

an individual who is lawfully residing in the United States in accordance with the Compacts of Free Association between the United States and Micronesia, the Marshall Islands, and Palau.

(Sec. 71302) This section repeals the rule that allows certain lawfully-present aliens who have a household income of less than 100% of the federal poverty level and are ineligible for Medicaid (based on the individual’s alien status) to claim the premium tax credit.

Subchapter B--Preventing Waste, Fraud, and Abuse

This subchapter requires verification of certain information supplied by individuals for purposes of determining eligibility for the premium tax credit, limits use of the premium tax credit, and expands recapture of excess advance payments of the premium tax credit.

Below is a summary of the provisions of this subchapter.

(Sec. 71303) This section requires the verification, beginning in 2028, of certain information for an individual to enroll in a health insurance plan through a health insurance exchange and to generally qualify for the premium tax credit. (Under current law, eligible individuals are allowed a premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges.)

Specifically, under this section, a health insurance exchange must verify, using applicable enrollment information provided (or verified) by an individual, the following information:

household income and family size,

whether the individual is an eligible alien,

any health coverage status or eligibility for coverage,

place of residence, and

any other information required by the Department of the Treasury.

The verification requirements may be waived for individuals who enroll in a health insurance plan through a health insurance exchange during a special enrollment period due to a change in family size.

(Sec. 71304) This section provides that the premium tax credit is not allowed for any health insurance plan enrolled in through a health insurance exchange during a special enrollment period provided by such exchange (1) on the basis of the relationship between the individual’s expected household income to the federal poverty level, and (2) not in connection with with the occurrence of an event or change in circumstances specified by the Department of Health and Human Services for such purposes.

(Sec. 71305) This section eliminates the limit on the recapture of excess advance payments of the premium tax credit and, accordingly, allows the full amount of any such excess payments to be recaptured. (Under current law, individuals with incomes below 400% of the federal poverty level may be required to pay back only a portion of any excess advance payment of the premium tax credit.)

Subchapter C--Enhancing Choice for Patients

This subchapter expands health savings account (HSA) eligibility requirements.

As background, individuals may establish and contribute to an HSA if they are covered under a high-deductible health plan (HDHP) and not covered under a health plan that (1) is not an HDHP and (2) provides coverage for any benefits that is covered under the HDHP (subject to certain exceptions).

Below is a summary of the provisions in this subchapter.

(Sec. 71306) This section allows individuals to establish and make tax-deductible contributions to a health savings account (HSA) if covered by a health insurance plan that provides telehealth and other remote care services without requiring a deductible but otherwise meets the requirements of an HDHP.

(Sec. 71307) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a bronze-level or catastrophic health insurance plan through a health insurance exchange. (A bronze-level health insurance plan provided through a health insurance exchange may or may not qualify as a HDHP, depending on the specific plan features. Catastrophic health plans provided through a health insurance exchange generally do not meet the requirements of a HDHP.)

(Sec. 71308) This section expands eligibility to make tax-deductible HSA contributions to include individuals who have a direct primary care service arrangement with a fixed period fee that does not exceed $150 a month (or $300 a month if the arrangement covers more than one individual). The amounts are adjusted annually for inflation. (Some limitations apply.)

Chapter 4--Protecting Rural Hospitals and Providers

(Sec. 71401) This section provides $10 billion per fiscal year for FY2026-FY2030 for a program that supports the provision of health care in rural areas. 

Under the program, states may apply for financial allotments to improve the access and quality of care of services in rural areas, such as through enhanced technology, strategic partnerships, and workforce training. States must submit detailed rural health transformation plans and certify that no funds will be used to finance the non-federal share of Medicaid or CHIP. The CMS must approve or deny applications by December 31, 2025; states that receive approval do not need to reapply each year. States are not required to contribute any matching funds with respect to program allotments.

The CMS must award allotments so that 50% of funds are awarded equally among all approved states. The remaining 50% of funds must be awarded based on certain considerations, including the proportion of rural health facilities in the state compared to the number of such facilities nationwide.

The section additionally provides $200 million for FY2025 for the CMS to implement the program. 

Subtitle C--Increase in Debt Limit

(Sec. 72001) This section increases the statutory debt limit by $5 trillion. (The debt limit is the amount of money that the Department of the Treasury may borrow to fund federal operations.)

Subtitle D--Unemployment

(Sec. 73001) This section prohibits payments under federal unemployment programs to individuals whose wages are $1 million or more. Such programs must include a method for individuals to certify that their income does not exceed this limit. State agencies that administer such programs must verify income information, to the extent possible, and provide for the recovery of any overpayments. 

TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS

This title makes various changes to higher education, particularly to the federal student loan system.

Subtitle A--Exemption of Certain Assets

(Sec. 80001) This section exempts the assets of certain family farms, family-owned small businesses, and family-owned commercial fishing businesses from the information reported on the Free Application for Federal Student Aid (FAFSA) form.

This exemption applies to the net worth of (1) a family farm on which the family resides, (2) a small business with not more than 100 full-time or full-time equivalent employees that is owned and controlled by the family, or (3) a commercial fishing business and related expenses (e.g., fishing vessels and permits) owned and controlled by the family.

Prior to recent changes made to the FAFSA, the net worth of these family farms and family-owned small businesses were excluded as assets when calculating a student's financial need to determine federal student aid eligibility. Beginning with the 2024-2025 academic year, the net worth of these farms and businesses are treated as an asset and therefore included in the calculation. This section (1) restores the exemption to exclude the net worth of these family farms and family-owned small businesses from the calculation, and (2) expands the exemption to exclude the net worth of family-owned commercial fisheries from the calculation.

Subtitle B--Loan Limits

This subtitle makes various changes to federal student loans. 

(Sec. 81001) This section revises the types of federal student loans available to borrowers under the Direct Loan program and the borrowing limits for these loans. 

The section terminates the ability of graduate or professional students to receive Direct PLUS Loans (i.e., Grad PLUS Loans) beginning on July 1, 2026.

The section revises the annual and aggregate limits an individual may borrow in Direct Loans. In particular, the section establishes the aggregate loan limit for Direct Unsubsidized Loans as $100,000 for a graduate student (in addition to the amount borrowed for undergraduate education) and $200,000 for a professional student (in addition to the amount borrowed for undergraduate education).

The section also places certain restrictions on Parent PLUS Loans beginning on July 1, 2026. In particular, the section sets an annual loan limit of $20,000 that may be borrowed on behalf of a dependent undergraduate student and a lifetime borrowing limit of $65,000 per dependent undergraduate student.

The section also institutes new maximum aggregate limits for borrowers beginning on July 1, 2026. For example, the section sets an overall aggregate lifetime borrowing limit of $257,500 for any single borrower across federal loan types (except for Parent PLUS Loans).

The section provides an exception to the loan limits described in this section (of up to three academic years) for a student who is already enrolled in a program of study and received a loan for the program.

The section also requires that a student's loan amount for an academic year be prorated based on their enrollment intensity if the student is enrolled on a less-than-full-time basis.

The section allows institutions of higher education (IHEs) to set lower loan limits if the limit is applied consistently to all students enrolled in the program.

Subtitle C--Loan Repayment

This subtitle revises loan repayment options for federal student loans.

(Sec. 82001) This section terminates all current student loan repayment plans for new loans disbursed on or after July 1, 2026.

The Department of Education (ED) may only offer borrowers two options for repayment of federal student loans: a standard repayment plan (with the length of the repayment term determined by the total amount borrowed) and an income-based repayment plan (to be known as the Repayment Assistance Plan, or RAP). Consequently, borrowers with new loans made on or after July 1, 2026, are limited to these two repayment plans.

Beginning on July 1, 2028, a borrower with a loan that is in a repayment status in accordance with, or an administrative forbearance associated with, an income-contingent repayment plan must begin repaying the loan under a new repayment plan. This applies to current borrowers who are on the following repayment plans: (1) the Saving on a Valuable Education (SAVE) plan, (2) the Pay as You Earn (PAYE) plan, or (3) the Income-Contingent Repayment (ICR) plan. If a borrower does not select a plan, ED must enroll the borrower in either the RAP or the standard repayment plan.

(Sec. 82002) This section eliminates economic hardship and unemployment deferments for borrowers who receive a federal student loan on or after July 1, 2027. A borrower who receives a loan on or after July 1, 2027, may only be eligible for a discretionary forbearance for no more than 9 months during a 24-month period.

(Sec. 82003) This section allows borrowers to rehabilitate a defaulted loan twice (currently, only once). However, beginning on July 1, 2027, the borrower must pay a minimum payment amount of $10.

(Sec. 82004) This section allows payments under the new RAP to count as qualifying payments for purposes of the Public Service Loan Forgiveness (PSLF) program.

(Sec. 82005) This section provides funding to ED for administrative costs, including for the costs of student loan servicing.

Subtitle D--Pell Grants

This subtitle makes changes to Pell Grants.

(Sec. 83001) This section requires foreign income that is exempt from taxation or foreign income for which an individual receives a foreign tax credit to be included in the adjusted gross income calculation for purposes of calculating eligibility for Pell Grants.

Students with a student aid index (SAI) that equals or exceeds twice the amount of the total maximum Pell Grant are ineligible for Pell Grants, regardless of their adjusted gross income. (The SAI is a formula-based index number that represents a student's level of financial need. It is calculated using information that the student provides on the FAFSA form.)

The section’s changes take effect beginning on July 1, 2026.

(Sec. 83002) This section requires ED to award Workforce Pell Grants to students enrolled in eligible workforce programs. Eligible programs are those that provide at least 150 clock hours (but less than 600 clock hours) of instruction during a minimum of 8 weeks (but less than 15 weeks).

The section’s changes take effect beginning on July 1, 2026.

(Sec. 83003) This section provides additional funding of $10.5 billion for Pell Grants for FY2026.

(Sec. 83004) This section makes a student ineligible for Pell Grants if the student receives grant aid from nonfederal sources (e.g., states, IHEs, or private sources) in an amount that equals or exceeds the student's cost of attendance.

The section's changes take effect beginning on July 1, 2026.

Subtitle E--Accountability

(Sec. 84001) This section requires IHEs participating in federal student loan programs to comply with median earning requirements of students. Specifically, the section prohibits an IHE from using federal funds for student enrollment in low-earning outcome programs. Low-earning outcome programs are educational programs in which the graduating cohort of students earn less as working adults compared to those with lesser degrees (e.g., a high school diploma instead of a bachelor's degree).

If an educational program does not meet the median earning requirements, the IHE must promptly notify each student enrolled in the program.

ED must establish a process for an IHE with an educational program that has lost eligibility for federal funds to be able to apply to regain eligibility for such funds.

IHEs must comply with these requirements beginning on July 1, 2026.

Subtitle F--Regulatory Relief

(Sec. 85001) This section delays until July 1, 2035, ED regulations pertaining to borrower defense to repayment. (Borrower defense to repayment is a legal ground for discharging Direct Loans if a school engaged in certain misconduct.) For loans that first originated before July 1, 2035, the section restores those regulations that were in effect on July 1, 2020. (Among other elements, the regulations in effect on July 1, 2020, require borrowers to meet a strict standard of misrepresentation to be eligible for a borrower defense discharge.)

(Sec. 85002) This section delays until July 1, 2035, ED regulations pertaining to closed school discharges. (Under closed school discharge regulations, a borrower's liability to repay a federal student loan is discharged if the borrower does not complete the program of study for which the loan was made because the school the borrower attended has closed.) For loans that first originated before July 1, 2035, the section restores those regulations that were in effect prior to changes made in November 2022. (Prior to the 2022 regulations, two different sets of standards and procedures were applied to closed school discharges, depending on when a loan was disbursed.)

Subtitle G--Garden of Heroes

(Sec. 86001) This section provides $40 million for FY2025 to the National Endowment for the Humanities (1) to establish and maintain a statuary park named the National Garden of American Heroes; (2) to procure statues for the National Garden of American Heroes; and (3) for events, celebrations, and activities related to the 250th anniversary of America’s founding.

Subtitle H--Office of Refugee Resettlement

(Sec. 87001) This section provides $300 million for FY2025 to the Office of Refugee Resettlement for specified activities, such as background checks and home studies of potential sponsors of unaccompanied children.

TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

Subtitle A--Homeland Security Provisions 

This subtitle provides funding for border security.

(Sec. 90001) This section provides over $46 billion in funding through FY2029 to U.S. Customs and Border Protection (CBP) for construction, installation, or improvement to barriers; access roads; detection technology; and other work to prepare the ground at or near the U.S. border. 

(Sec. 90002) This section provides over $12 billion in funding through FY2029 for CBP personnel, bonuses, facilities, and fleet vehicles.

(Sec. 90003) This section provides $45 billion in funding through FY2029 to the U.S. Immigration and Customs Enforcement (ICE) for increased capacity in detention facilities for the purposes of detaining adults and families who are non-U.S. nationals (aliens under federal law).

(Sec. 90004) This section provides over $6 billion in funding through FY2029 for CBP inspection and surveillance equipment, screenings (including of unaccompanied children), rapid air and marine response capabilities, vetting, and activities to prevent drug trafficking.

(Sec. 90005) This section provides funding to the Federal Emergency Management Agency (FEMA) to be administered through the State Homeland Security Grant Program. Specifically, it provides through FY2029 (1) $500 million to assist state and local authorities to detect, identify, track, or monitor unmanned aircraft systems; (2) $625 million for security, planning, and other costs related to the 2026 FIFA World Cup; (3) $1 billion for security, planning, and other costs related to the 2028 Olympics; and (4) $450 million for the Operation Stonegarden grant program, which provides support for enhanced cooperation and coordination between federal, state, local, and tribal governments to improve border security.

The section also establishes a $10 billion fund available through FY2034 in the Department of Homeland Security (DHS) to reimburse states and units of local government for costs associated with border security actions taken on or after January 20, 2021. Specifically, DHS shall provide grants for (1) barriers along the southern U.S. border, (2) the detection and interception of certain individuals and illicit drugs, and (3) the relocation of non-U.S. nationals (aliens under federal law) from small population centers to other domestic locations. 

(Sec. 90006) This section provides $300 million in funding through FY2029 to FEMA to reimburse state and local law enforcement for extraordinary costs associated with protecting a residence of the President. 

(Sec. 90007) This section provides $10 billion in funding through FY2029 to DHS for reimbursement of costs incurred for activities in support of safeguarding U.S. borders.

Subtitle B--Governmental Affairs Provisions

This subtitle revises the Federal Employees Health Benefits (FEHB) Program.

FEHB Protection Act of 2025

(Sec. 90101) This section requires the Office of Personnel Management (OPM) to issue regulations and implement a process to verify (1) the veracity of any qualifying life event through which an enrollee in the FEHB Program seeks to add a family member for coverage under the program; and (2) that, when an enrollee seeks to add a family member to the FEHB program, the individual added is a qualifying family member.

The section also requires OPM to conduct a comprehensive audit regarding family members enrolled in the FEHB program. In conducting this audit, OPM must review marriage certificates, birth certificates, and other appropriate documents to determine eligibility.

OPM must develop a process to disenroll or remove an individual who is not eligible to participate in the FEHB program. 

The section allows for $66 million of the Employees Health Benefits Fund to be available to OPM FY2026 through FY2035 to carry out eligibility verification requirements and audit activities.

(Sec. 90102) This section provides $88 million in FY2026 funding for the Pandemic Response Accountability Committee to support oversight of the coronavirus response and of funds provided pertaining to the coronavirus pandemic. The section extends the committee to September 30, 2034 (currently, the committee terminates on September 30, 2025).

(Sec. 90103) This section provides $100 million in funding through FY2029 to the Office of Management and Budget for purposes of finding budget and accounting efficiencies in the executive branch.

TITLE X--COMMITTEE ON THE JUDICIARY

Subtitle A--Immigration and Law Enforcement Matters

Part I--Immigration Fees

This part establishes additional or increased fees for various immigration programs and procedures.

(Sec. 100002) This section establishes a fee of at least $100 for applications for asylum. 

(Sec. 100003) This section establishes a fee of at least $550 for asylees, parolees, or individuals granted temporary protected status who are applying for initial employment authorization.

(Sec. 100004) This section establishes a fee of at least $1,000 for non-U.S. nationals (aliens under federal law) paroled into the United States. This section provides exceptions on a case-by-case basis, such as in situations involving a life-threatening medical emergency.

(Sec. 100005) This section establishes a fee of at least $250 for applications for special immigrant juvenile status.

(Sec. 100006) This section increases the maximum fee for applications for temporary protected status to $500.

(Sec. 100007) This section establishes a fee of at least $250 for individuals issued a nonimmigrant visa. This fee may be reimbursed to individuals who comply with conditions of the visa.

(Sec. 100008) This section establishes a fee of at least $24 for applications for nonimmigrants to be admitted to the United States (i.e., an I-94 Arrival-Departure Record).

(Sec. 100009) This section establishes a fee of at least $100 per calendar year that an individual’s asylum application remains pending.

(Sec. 100010) This section establishes a fee of at least $275 for parolees who are seeking a renewal or extension of employment authorization.

(Sec. 100011) This section establishes a fee of at least $275 for asylees who are seeking a renewal or extension of employment authorization.

(Sec. 100012) This section establishes a fee of at least $275 for individuals with temporary protected status who are seeking a renewal or extension of employment authorization.

(Sec. 100013) This section establishes various fees for specified judicial and adjudicative filings, including at least

$1,500 for filing in immigrant court an application to adjust an individual’s status to a lawful permanent resident,

$1,050 for filing in immigration court an application for waiver of grounds of inadmissibility,

$500 for filing in immigration court an application for temporary protected status,

$900 for filing an appeal of a decision of an immigration judge or a DHS officer,

$1,325 for a practitioner filing an appeal in a disciplinary case,

$900 for filing a motion to reopen or reconsider the decision of an immigration judge or the Board of Immigration Appeals,

$600 for filing in immigration court an application for a suspension of deportation,

$600 for filing in immigration court an application for cancellation of the removal of a lawful permanent resident, and

$1,500 for filing in immigration court an application for cancellation of removal and adjustment of status for any non-U.S. national (alien under federal law).

(Sec. 100014) This section extends to October 31, 2034, the fee charged for the use of an automated electronic system for travel authorization. The system collects information to determine the eligibility of an alien to travel to the United States. This section also sets minimums for the fee.

(Sec. 100015) This section establishes a fee of at least $30 for individuals who enroll in the electronic visa update system.

(Sec. 100016) This section establishes a fee of at least $5000 for individuals who are ordered removed in absentia and are subsequently arrested by ICE.

(Sec. 100017) This section establishes a fee of at least $5000 for individuals who are inadmissible and apprehended between ports of entry.

(Sec. 100018) This section makes the imposition of an application fee for asylum mandatory rather than discretionary as under current law. The section also removes the limit on this fee and discontinues installment payments for this fee. 

Part II--Immigration and Law Enforcement Funding

(Sec. 100051) This section provides over $2 billion in funding through FY2029 to DHS for 

immigration and enforcement activities;

the removal of individuals, including specified unaccompanied children, individuals who have not been admitted or paroled, or individuals who are inadmissible on security grounds;

criminal and gang checks for unaccompanied children who are 12 years of age or older; 
personnel;

the collection of fingerprints and DNA from individuals without a valid visa;

state and local participation in homeland security efforts; and

information technology.

(Sec. 100052) This section provides over $29 billion in funding through FY2029 for ICE for hiring and training, certain bonuses, recruitment and onboarding, transportation for departure or removal operations, information technology, facilities, fleets, the care and custody of certain detained families, supporting agreements under which immigration officer functions are performed by states, and hiring for the Victims of Immigration Crime Engagement Office and the Office of the Principal Legal Advisor of DHS. 

(Sec. 100053) This section provides $750 million in funding through FY2029 for training and facilities at DHS Federal Law Enforcement Training Centers.

(Sec. 100054) This section provides over $3 billion in funding through FY2029 to the Department of Justice for the Executive Office of Immigration Review, to counter drug trafficking, prosecution of immigration matters, staffing for matters concerning non-party or other injunctive relief against the federal government, specified grants related to crime and immigration enforcement, staffing for matters prioritizing certain lawsuit settlements, and providing compensation to states and localities for incarcerating certain non-U.S. national criminals.

(Sec. 100055) This section provides $3.5 billion in funding through FY2028 to reimburse states and units of local government for costs associated with locating and apprehending certain criminals, in addition to other activities taken on or after January 20, 2021.

(Sec. 100056) This section provides $5 billion in funding through FY2029 for the Bureau of Prisons for salaries, benefits, and facilities. 

(Sec. 100057) This section provides over $1 billion in funding through FY2029 for the U.S. Secret Service for personnel, bonuses, training facilities, programming, and technology.

Subtitle B--Judiciary Matters

(Sec. 100101) This section provides funding for the Administrative Office of the U.S. Courts for the purpose of analysis and reporting regarding the state of the dockets of the courts, including metrics regarding judicial orders for non-party relief (i.e., orders that apply to those not before the court) against the federal government.

(Sec. 100102) This section provides funding for the Federal Judicial Center for the purpose of carrying out continuing education and training for personnel of the judicial branch, including training on non-party relief against the federal government.

Subtitle C--Radiation Exposure Compensation Matters

This subtitle reestablishes and expands a program to compensate individuals who were exposed to radiation during certain nuclear testing or uranium mining and who subsequently developed medical conditions, particularly cancer. This program compensated individuals who were present in a designated geographic area during a period of nuclear testing and certain individuals employed in uranium mining.

(Sec. 100201) This section extends through 2028 the fund that supports this program.

(Sec. 100202) This section (1) increases the amount of compensation awarded to new eligible claimants, and (2) expands the designated areas to include Idaho and New Mexico and additional areas in Nevada and Utah.

(Sec. 100203) This section makes more individuals who worked in uranium mining eligible for the program.

(Sec. 100204) This section expands this program to compensate individuals located in specified areas of Missouri, Tennessee, Alaska, or Kentucky associated with waste from the Manhattan Project and who subsequently developed specified types of cancer.

(Sec. 100205) This section extends through 2027 the statute of limitations for filing claims (the program expired in 2024).


Legislative actions:
action_date: 2025-07-04
text: Became Public Law No: 119-21.
action_date: 2025-07-04
text: Became Public Law No: 119-21.
action_date: 2025-07-04
text: Signed by President.
action_date: 2025-07-04
text: Signed by President.
action_date: 2025-07-03
text: Presented to President.
action_date: 2025-07-03
text: Presented to President.
action_date: 2025-07-03
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2025-07-03
text: On motion that the House agree to the Senate amendment Agreed to by recorded vote: 218 - 214 (Roll no. 190). (text: CR H3059-3143)
action_date: 2025-07-03
text: Resolving differences -- House actions: On motion that the House agree to the Senate amendment Agreed to by recorded vote: 218 - 214 (Roll no. 190).
action_date: 2025-07-03
text: The previous question was ordered pursuant to the rule.
action_date: 2025-07-03
text: DEBATE - Pursuant to the provisions of H. Res. 566, the House proceeded with one hour of debate on the motion to agree to the Senate amendment to H.R. 1.
action_date: 2025-07-03
text: Mr. Arrington moved that the House agree to the Senate amendment to H.R. 1. (CR H3143)
action_date: 2025-07-03
text: Mr. Arrington moved that the House agree to the Senate amendment. (consideration: CR H3059-3187)
action_date: 2025-07-03
text: Pursuant to the provisions of H. Res. 566, Mr. Arrington called up the Senate amendment to H.R. 1.
action_date: 2025-07-01
text: Message on Senate action sent to the House.
action_date: 2025-07-01
text: Passed Senate with an amendment by Yea-Nay Vote. 51 - 50. Record Vote Number: 372.
action_date: 2025-07-01
text: Passed/agreed to in Senate: Passed Senate with an amendment by Yea-Nay Vote. 51 - 50. Record Vote Number: 372.
action_date: 2025-07-01
text: Motion by Senator Warnock to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 48 - 51. Record Vote Number: 359.
action_date: 2025-07-01
text: Motion by Senator Wyden to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 47 - 53. Record Vote Number: 357.
action_date: 2025-07-01
text: Motion by Senator Bennet to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 47 - 53. Record Vote Number: 354.
action_date: 2025-06-30
text: Motion by Senator Padilla to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 47 - 53. Record Vote Number: 353.
action_date: 2025-06-30
text: Motion by Senator King to commit to Senate Committee on Finance with instructions rejected in Senate by Voice Vote.
action_date: 2025-06-30
text: Motion by Senator Murphy to commit to Senate Committee on Finance with instructions rejected in Senate by Voice Vote.
action_date: 2025-06-30
text: Motion by Senator Kelly to commit to Senate Committee on Finance with instructions rejected in Senate by Voice Vote.
action_date: 2025-06-30
text: Motion by Senator Alsobrooks to commit to Senate Committee on Finance with instructions rejected in Senate by Voice Vote.
action_date: 2025-06-30
text: Motion by Senator Schiff to commit to Senate Committee on Agriculture, Nutrition, and Forestry with instructions rejected in Senate by Yea-Nay Vote. 47 - 53. Record Vote Number: 351.
action_date: 2025-06-30
text: Motion by Senator Duckworth to commit to Senate Committee on Agriculture, Nutrition, and Forestry with instructions rejected in Senate by Yea-Nay Vote. 49 - 51. Record Vote Number: 350.
action_date: 2025-06-30
text: Motion by Senator Hassan to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 48 - 52. Record Vote Number: 349.
action_date: 2025-06-30
text: Motion by Senator Gallego to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 47 - 53. Record Vote Number: 348.
action_date: 2025-06-30
text: Motion by Senator Blumenthal to commit to Senate Committee on Armed Services with instructions rejected in Senate by Yea-Nay Vote. 47 - 53. Record Vote Number: 347.
action_date: 2025-06-30
text: Motion by Senator Kaine to commit to Senate Committee on Homeland Security and Governmental Affairs with instructions rejected in Senate by Yea-Nay Vote. 47 - 53. Record Vote Number: 346.
action_date: 2025-06-30
text: Motion by Senator Blunt Rochester to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 48 - 52. Record Vote Number: 340.
action_date: 2025-06-30
text: Motion by Senator Reed to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 48 - 52. Record Vote Number: 338.
action_date: 2025-06-30
text: Motion by Senator Lujan to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 49 - 51. Record Vote Number: 337.
action_date: 2025-06-30
text: Motion by Senator Coons to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 48 - 52. Record Vote Number: 336.
action_date: 2025-06-30
text: Motion by Senator Wyden to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 47 - 53. Record Vote Number: 335.
action_date: 2025-06-30
text: Motion to waive section 425(a)(2) of the Congressional Budget Act with respect to the measure agreed to in Senate by Yea-Nay Vote. 51 - 48. Record Vote Number: 334.
action_date: 2025-06-30
text: Point of order that the measure violates section 425(a)(2) of the Congressional Budget Act raised in Senate.
action_date: 2025-06-30
text: Motion by Senator Markey to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 49 - 51. Record Vote Number: 333.
action_date: 2025-06-30
text: Motion by Senator Schumer to commit to Senate Committee on Finance with instructions rejected in Senate by Yea-Nay Vote. 47 - 53. Record Vote Number: 332.
action_date: 2025-06-30
text: Considered by Senate.
action_date: 2025-06-28
text: Motion to proceed to consideration of measure agreed to in Senate by Yea-Nay Vote. 51 - 49. Record Vote Number: 329.
action_date: 2025-06-28
text: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 107.
action_date: 2025-06-27
text: Received in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
action_date: 2025-05-22
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2025-05-22
text: On passage Passed by the Yeas and Nays: 215 - 214, 1 Present (Roll no. 145). (text: CR H2235-2334)
action_date: 2025-05-22
text: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 215 - 214, 1 Present (Roll no. 145). (text: CR H2235-2334)
action_date: 2025-05-22
text: On motion to recommit Failed by the Yeas and Nays: 212 - 216 (Roll no. 144).
action_date: 2025-05-22
text: The previous question on the motion to recommit was ordered pursuant to clause 2(b) of rule XIX.
action_date: 2025-05-22
text: Mrs. Trahan moved to recommit to the Committee on the Budget. (CR H2356)
action_date: 2025-05-22
text: The previous question was ordered pursuant to the rule.
action_date: 2025-05-22
text: DEBATE - The House proceeded with two hours of debate on H.R. 1.
action_date: 2025-05-22
text: Rule provides for consideration of H.R. 1. The resolution provides for consideration of H.R. 1 under a closed rule with two hours of general debate and one motion to recommit.
action_date: 2025-05-22
text: Considered under the provisions of rule H. Res. 436. (consideration: CR H2235-2357)
action_date: 2025-05-22
text: Rule H. Res. 436 passed House.
action_date: 2025-05-21
text: Rules Committee Resolution H. Res. 436 Reported to House. Rule provides for consideration of H.R. 1. The resolution provides for consideration of H.R. 1 under a closed rule with two hours of general debate and one motion to recommit.
action_date: 2025-05-20
text: Placed on the Union Calendar, Calendar No. 78.
action_date: 2025-05-20
text: The House Committee on the Budget reported an original measure, H. Rept. 119-106, by Mr. Arrington.
action_date: 2025-05-20
text: The House Committee on the Budget reported an original measure, H. Rept. 119-106, by Mr. Arrington.

Enacted as: number: 119-21