HR6637-119

What This Bill Does

This bill is a large cross-domain package built around the MARKET CHOICE Act structure. It 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; directs EPA, Treasury, and Energy to calculate taxable emissions; provides phased credits for state greenhouse-gas payments; and imposes triple-tax penalties for nonpayment. A border greenhouse-gas adjustment title charges covered imports and rebates taxes on exports to address 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, energy storage, low-income household grants, reforestation, conservation, and related programs. Other provisions repeal federal motor vehicle and aviation fuel taxes after 2025, modify advanced coal project credits, limit some EPA Clean Air Act greenhouse-gas regulation once emissions are taxed, create chronic flooding grants, create displaced energy-worker assistance, establish a National Climate Commission, add National Cancer Institute funding and cancer drug-shortage reporting, create a fiscal commission, restrict House Member ownership or trading of covered financial instruments, expand anti-trafficking financial controls, authorize school-door security grants and emergency-response procedures, require unaffiliated-voter primary access, condition election funding on noncitizen-voting restrictions, require a Ukraine intelligence-sharing review, and repeal the special VA disciplinary process.

Who Benefits and How

Highway Trust Fund programs benefit because 70 percent of RISE Trust Fund resources flow to highways from 2027 through 2036. Low-income households benefit from state grants and energy-assistance allocations tied to carbon-tax receipts. Domestic manufacturers and exporters benefit from border adjustments and rebates designed to prevent carbon leakage. Carbon capture researchers, ARPA-E projects, energy-storage programs, and conservation programs benefit from dedicated RISE allocations. Displaced energy workers benefit from retraining, relocation, health benefits, early retirement support, and redevelopment assistance. Coastal communities benefit from chronic flooding mitigation and adaptation infrastructure funding. National Cancer Institute programs benefit from added appropriations. VA employees benefit from repeal of the special disciplinary process. 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, keep records, and face triple-tax penalties for nonpayment. EPA, Treasury, Customs and Border Protection, Energy, Transportation, HHS, VA, election agencies, and other federal staff must write rules, administer credits and rebates, allocate trust-fund money, review applications, enforce funding conditions, and report to Congress. States receiving household, election, flooding, or conservation funds must meet program requirements and submit reports. House Members must avoid or divest covered financial instruments and certify compliance. Financial institutions face enhanced anti-money-laundering scrutiny for trafficking transactions. Federal taxpayers and consumers may bear administrative costs and price effects from the tax and compliance system.

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 greenhouse-gas 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, and conservation.
• Repeals federal motor vehicle and aviation fuel taxes after 2025 and limits some Clean Air Act greenhouse-gas regulation for taxed emissions.
• Authorizes flooding grants, displaced energy-worker assistance, climate and fiscal commissions, cancer funding, House trading restrictions, anti-trafficking finance controls, school safety grants, election funding conditions, Ukraine intelligence review, and VA disciplinary-process repeal.