HR6636-119

What This Bill Does

This bill is a sweeping cross-domain package. Its main climate-tax title creates a federal greenhouse-gas tax beginning in 2027 at $35 per metric ton of carbon dioxide equivalent on fossil fuels produced in or imported into the United States, with annual increases tied to five percentage points plus CPI growth. It also taxes covered industrial-process emissions, product-use emissions, and biomass-related emissions above specified thresholds; directs EPA and Treasury to calculate emissions; allows phased credits for state greenhouse-gas payments; imposes triple-tax penalties for nonpayment; and defines covered fuels, gases, source categories, and sequestration refund rules. A border-adjustment title charges covered imports based on comparable domestic carbon-tax liability and rebates tax costs on covered exports, aiming to prevent carbon leakage. The RISE Trust Fund receives 75 percent of carbon-tax receipts and allocates resources from 2027 through 2036 to highways, weatherization, displaced energy workers, airports, underground storage cleanup, abandoned mine reclamation, coastal flooding mitigation, ARPA-E, carbon capture research, advanced vehicle technology, low-income household grants, energy assistance, cancer research, and conservation programs. Other titles repeal federal motor vehicle and aviation fuel taxes after 2025, alter advanced coal credits, restrict some EPA Clean Air Act greenhouse-gas regulation once emissions are taxed, fund flood mitigation and adaptation grants, create displaced energy-worker assistance, establish climate and fiscal commissions, restrict House Member financial instruments, strengthen anti-trafficking financial controls, authorize school-door security grants, regulate unaffiliated-voter primary access and noncitizen voting funding conditions, require Ukraine intelligence review, and adjust VA survivor compensation for ALS-related deaths.

Who Benefits and How

Highway Trust Fund programs benefit because 70 percent of annual RISE Trust Fund resources from 2027 through 2036 flow to highways. Low-income families benefit from state grants, LIHEAP-related funding, and household assistance tied to carbon-tax receipts. Domestic manufacturers and exporters in covered sectors benefit from border adjustments and export rebates that reduce carbon-leakage pressure. Carbon capture operators, ARPA-E projects, National Energy Technology Laboratory programs, and energy-storage researchers benefit from dedicated research and infrastructure allocations. Displaced energy workers benefit from retraining, relocation, health benefits, early retirement support, and community redevelopment grants. Coastal communities benefit from chronic flooding mitigation and adaptation infrastructure funding. National Cancer Institute programs benefit from added appropriations, and veterans surviving spouses benefit from ALS survivor-benefit treatment. Unaffiliated voters benefit from federal primary access rules.

Who Bears the Burden and How

Fossil fuel producers, fuel importers, industrial facilities, covered product manufacturers, and importers of covered goods must calculate emissions, pay taxes or border adjustments, maintain records, and face penalties for nonpayment. EPA, Treasury, Customs and Border Protection, Energy, Transportation, HHS, VA, Election Assistance Commission, and other federal agencies must issue rules, administer trust-fund allocations, process credits and refunds, enforce restrictions, and report to Congress. States receiving household, election, flooding, or conservation funds must meet program and reporting conditions. House Members must divest or avoid covered financial instruments and certify compliance. Financial institutions face enhanced anti-money-laundering scrutiny for trafficking transactions. Federal taxpayers and consumers may bear transition costs, administrative costs, and price effects from the tax and related compliance systems.

Key Provisions

• Establishes a federal greenhouse-gas tax starting at $35 per metric ton in 2027 with annual CPI-linked increases.
• Requires industrial-process, product-use, biomass, emissions-calculation, state-payment credit, penalty, and sequestration-refund rules.
• Creates border carbon adjustments for covered imports and export rebates for covered goods.
• Establishes the RISE Trust Fund and allocates carbon-tax receipts to highways, weatherization, workers, airports, cleanup, flooding, energy research, household aid, cancer research, and conservation.
• Provides state grants for low-income households and repeals federal motor vehicle and aviation fuel taxes after 2025.
• Limits some EPA Clean Air Act greenhouse-gas regulation for taxed emissions while preserving specified vehicle, fuel, monitoring, reporting, and backstop authorities.
• Authorizes flood mitigation grants, displaced energy-worker assistance, climate and fiscal commissions, House trading restrictions, anti-trafficking finance controls, school security grants, election funding conditions, Ukraine intelligence review, and ALS survivor-benefit changes.