congressional_record: CREC-2025-06-28-pt1-PgS3687
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| CREC-2025-06-28-pt1-PgS3687 | 2025-06-28 | 119 | 1 | TEXT OF AMENDMENTS | SENATE | SENATE | SAMENDMENTTEXT | S3687 | S4032 | [{"congress": "119", "type": "HR", "number": "1"}, {"congress": "119", "type": "HR", "number": "1"}, {"congress": "119", "type": "HCONRES", "number": "14"}, {"congress": "119", "type": "HCONRES", "number": "14"}, {"congress": "119", "type": "SCONRES", "number": "14"}] | 171 Cong. Rec. S3687 | Congressional Record, Volume 171 Issue 112 (Saturday, June 28, 2025) [Congressional Record Volume 171, Number 112 (Saturday, June 28, 2025)] [Senate] [Pages S3687-S4032] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov] TEXT OF AMENDMENTS SA 2360. Mr. THUNE (for Mr. Graham) proposed an amendment to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; as follows: Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE. This Act may be cited as the ``One Big Beautiful Bill Act''. SEC. 2. TABLE OF CONTENTS. The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY Subtitle A--Nutrition Sec. 10101. Re-evaluation of thrifty food plan. Sec. 10102. Modifications to SNAP work requirements for able-bodied adults. Sec. 10103. Availability of standard utility allowances based on receipt of energy assistance. Sec. 10104. Restrictions on internet expenses. Sec. 10105. Matching funds requirements. Sec. 10106. Administrative cost sharing. Sec. 10107. National education and obesity prevention grant program. Sec. 10108. Alien SNAP eligibility. Subtitle B--Forestry Sec. 10201. Rescission of amounts for forestry. Subtitle C--Commodities Sec. 10301. Effective reference price; reference price. Sec. 10302. Base acres. Sec. 10303. Producer election. Sec. 10304. Price loss coverage. Sec. 10305. Agriculture risk coverage. Sec. 10306. Equitable treatment of certain entities. Sec. 10307. Payment limitations. Sec. 10308. Adjusted gross income limitation. Sec. 10309. Marketing loans. Sec. 10310. Repayment of marketing loans. Sec. 10311. Economic adjustment assistance for textile mills. Sec. 10312. Sugar program updates. Sec. 10313. Dairy policy updates. Sec. 10314. Implementation. Subtitle D--Disaster Assistance Programs Sec. 10401. Supplemental agricultural disaster assistance. Subtitle E--Crop Insurance Sec. 10501. Beginning farmer and rancher benefit. Sec. 10502. Area-based crop insurance coverage and affordability. Sec. 10503. Administrative and operating expense adjustments. Sec. 10504. Premium support. Sec. 10505. Program compliance and integrity. Sec. 10506. Reviews, compliance, and integrity. Sec. 10507. Poultry insurance pilot program. Subtitle F--Additional Investments in Rural America Sec. 10601. Conservation. Sec. 10602. Supplemental agricultural trade promotion program. Sec. 10603. Nutrition. Sec. 10604. Research. Sec. 10605. Energy. Sec. 10606. Horticulture. Sec. 10607. Miscellaneous. TITLE II--COMMITTEE ON ARMED SERVICES Sec. 20001. Enhancement of Department of Defense resources for improving the quality of life for military personnel. Sec. 20002. Enhancement of Department of Defense resources for shipbuilding. Sec. 20003. Enhancement of Department of Defense resources for integrated air and missile defense. Sec. 20004. Enhancement of Department of Defense resources for munitions and defense supply chain resiliency. Sec. 20005. Enhancement of Department of Defense resources for scaling low-cost weapons into production. Sec. 20006. Enhancement of Department of Defense resources for improving the efficiency and cybersecurity of the Department of Defense. Sec. 20007. Enhancement of Department of Defense resources for air superiority. Sec. 20008. Enhancement of resources for nuclear forces. [[Page S3688]] Sec. 20009. Enhancement of Department of Defense resources to improve capabilities of United States Indo-Pacific Command. Sec. 20010. Enhancement of Department of Defense resources for improving the readiness of the Department of Defense. Sec. 20011. Improving Department of Defense border support and counter- drug missions. Sec. 20012. Department of Defense oversight. Sec. 20013. Military construction projects authorized. Sec. 20014. Multi-year operational plan. TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS Sec. 30001. Funding cap for the Bureau of Consumer Financial Protection. Sec. 30002. Rescission of funds for Green and Resilient Retrofit Program for Multifamily Housing. Sec. 30003. Securities and Exchange Commission Reserve Fund. Sec. 30004. Appropriations for Defense Production Act. TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION Sec. 40001. Coast Guard mission readiness. Sec. 40002. Spectrum auctions. Sec. 40003. Air traffic control improvements. Sec. 40004. Space launch and reentry licensing and permitting user fees. Sec. 40005. Mars missions, Artemis missions, and Moon to Mars program. Sec. 40006. Corporate average fuel economy civil penalties. Sec. 40007. Payments for lease of Metropolitan Washington Airports. Sec. 40008. Rescission of certain amounts for the National Oceanic and Atmospheric Administration. Sec. 40009. Reduction in annual transfers to Travel Promotion Fund. Sec. 40010. Treatment of unobligated funds for alternative fuel and low-emission aviation technology. Sec. 40011. Rescission of amounts appropriated to Public Wireless Supply Chain Innovation Fund. Sec. 40012. Support for artificial intelligence under the Broadband Equity, Access, and Deployment Program. TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES Subtitle A--Oil and Gas Leasing Sec. 50101. Onshore oil and gas leasing. Sec. 50102. Offshore oil and gas leasing. Sec. 50103. Royalties on extracted methane. Sec. 50104. Alaska oil and gas leasing. Sec. 50105. National Petroleum Reserve-Alaska. Subtitle B--Mining Sec. 50201. Coal leasing. Sec. 50202. Coal royalty. Sec. 50203. Leases for known recoverable coal resources. Sec. 50204. Authorization to mine Federal coal. Subtitle C--Lands Sec. 50302. Timber sales and long-term contracting for the Forest Service and the Bureau of Land Management. Sec. 50303. Renewable energy fees on Federal land. Sec. 50304. Renewable energy revenue sharing. Sec. 50305. Rescission of National Park Service and Bureau of Land Management funds. Sec. 50306. Celebrating America's 250th anniversary. Subtitle D--Energy Sec. 50401. Strategic Petroleum Reserve. Sec. 50402. Repeals; rescissions. Sec. 50403. Energy dominance financing. Sec. 50404. Transformational artificial intelligence models. Subtitle E--Water Sec. 50501. Water conveyance and surface water storage enhancement. TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS Sec. 60001. Rescission of funding for clean heavy-duty vehicles. Sec. 60002. Repeal of Greenhouse Gas Reduction Fund. Sec. 60003. Rescission of funding for diesel emissions reductions. Sec. 60004. Rescission of funding to address air pollution. Sec. 60005. Rescission of funding to address air pollution at schools. Sec. 60006. Rescission of funding for the low emissions electricity program. Sec. 60007. Rescission of funding for section 211(o) of the Clean Air Act. Sec. 60008. Rescission of funding for implementation of the American Innovation and Manufacturing Act. Sec. 60009. Rescission of funding for enforcement technology and public information. Sec. 60010. Rescission of funding for greenhouse gas corporate reporting. Sec. 60011. Rescission of funding for environmental product declaration assistance. Sec. 60012. Rescission of funding for methane emissions and waste reduction incentive program for petroleum and natural gas systems. Sec. 60013. Rescission of funding for greenhouse gas air pollution plans and implementation grants. Sec. 60014. Rescission of funding for environmental protection agency efficient, accurate, and timely reviews. Sec. 60015. Rescission of funding for low-embodied carbon labeling for construction materials. Sec. 60016. Rescission of funding for environmental and climate justice block grants. Sec. 60017. Rescission of funding for ESA recovery plans. Sec. 60018. Rescission of funding for environmental and climate data collection. Sec. 60019. Rescission of neighborhood access and equity grant program. Sec. 60020. Rescission of funding for Federal building assistance. Sec. 60021. Rescission of funding for low-carbon materials for Federal buildings. Sec. 60022. Rescission of funding for GSA emerging and sustainable technologies. Sec. 60023. Rescission of environmental review implementation funds. Sec. 60024. Rescission of low-carbon transportation materials grants. Sec. 60025. John F. Kennedy Center for the Performing Arts. Sec. 60026. Project sponsor opt-in fees for environmental reviews. TITLE VII--FINANCE Subtitle A--Tax Sec. 70001. References to the Internal Revenue Code of 1986, etc. Chapter 1--Providing Permanent Tax Relief for Middle-class Families and Workers Sec. 70101. Extension and enhancement of reduced rates. Sec. 70102. Extension and enhancement of increased standard deduction. Sec. 70103. Termination of deduction for personal exemptions other than temporary senior deduction. Sec. 70104. Extension and enhancement of increased child tax credit. Sec. 70105. Extension and enhancement of deduction for qualified business income. Sec. 70106. Extension and enhancement of increased estate and gift tax exemption amounts. Sec. 70107. Extension of increased alternative minimum tax exemption amounts and modification of phaseout thresholds. Sec. 70108. Extension and modification of limitation on deduction for qualified residence interest. Sec. 70109. Extension and modification of limitation on casualty loss deduction. Sec. 70110. Termination of miscellaneous itemized deductions other than educator expenses. Sec. 70111. Limitation on tax benefit of itemized deductions. Sec. 70112. Extension and modification of qualified transportation fringe benefits. Sec. 70113. Extension and modification of limitation on deduction and exclusion for moving expenses. Sec. 70114. Extension and modification of limitation on wagering losses. Sec. 70115. Extension and enhancement of increased limitation on contributions to ABLE accounts. Sec. 70116. Extension and enhancement of savers credit allowed for ABLE contributions. Sec. 70117. Extension of rollovers from qualified tuition programs to ABLE accounts permitted. Sec. 70118. Extension of treatment of certain individuals performing services in the Sinai Peninsula and enhancement to include additional areas. Sec. 70119. Extension and modification of exclusion from gross income of student loans discharged on account of death or disability. Sec. 70120. Limitation on individual deductions for certain state and local taxes, etc. Chapter 2--Delivering on Presidential Priorities to Provide New Middle- class Tax Relief Sec. 70201. No tax on tips. Sec. 70202. No tax on overtime. Sec. 70203. No tax on car loan interest. Sec. 70204. Trump accounts and contribution pilot program. Chapter 3--Establishing Certainty and Competitiveness for American Job Creators subchapter a--permanent u.s. business tax reform and boosting domestic investment Sec. 70301. Full expensing for certain business property. Sec. 70302. Full expensing of domestic research and experimental expenditures. Sec. 70303. Modification of limitation on business interest. Sec. 70304. Extension and enhancement of paid family and medical leave credit. Sec. 70305. Exceptions from limitations on deduction for business meals. Sec. 70306. Increased dollar limitations for expensing of certain depreciable business assets. Sec. 70307. Special depreciation allowance for qualified production property. [[Page S3689]] Sec. 70308. Enhancement of advanced manufacturing investment credit. Sec. 70309. Spaceports are treated like airports under exempt facility bond rules. subchapter b--permanent america-first international tax reforms PART I--Foreign Tax Credit Sec. 70311. Modifications related to foreign tax credit limitation. Sec. 70312. Modifications to determination of deemed paid credit for taxes properly attributable to tested income. Sec. 70313. Sourcing certain income from the sale of inventory produced in the United States. PART II--Foreign-derived Deduction Eligible Income and Net CFC Tested Income Sec. 70321. Modification of deduction for foreign-derived deduction eligible income and net CFC tested income. Sec. 70322. Determination of deduction eligible income. Sec. 70323. Rules related to deemed intangible income. PART III--Base Erosion Minimum Tax Sec. 70331. Extension and modification of base erosion minimum tax amount. PART IV--Business Interest Limitation Sec. 70341. Coordination of business interest limitation with interest capitalization provisions. Sec. 70342. Definition of adjusted taxable income for business interest limitation. PART V--Other International Tax Reforms Sec. 70351. Permanent extension of look-thru rule for related controlled foreign corporations. Sec. 70352. Repeal of election for 1-month deferral in determination of taxable year of specified foreign corporations. Sec. 70353. Restoration of limitation on downward attribution of stock ownership in applying constructive ownership rules. Sec. 70354. Modifications to pro rata share rules. Chapter 4--Investing in American Families, Communities, and Small Businesses subchapter a--permanent investments in families and children Sec. 70401. Enhancement of employer-provided child care credit. Sec. 70402. Enhancement of adoption credit. Sec. 70403. Recognizing Indian tribal governments for purposes of determining whether a child has special needs for purposes of the adoption credit. Sec. 70404. Enhancement of the dependent care assistance program. Sec. 70405. Enhancement of child and dependent care tax credit. subchapter b--permanent investments in students and reforms to tax- exempt institutions Sec. 70411. Tax credit for contributions of individuals to scholarship granting organizations. Sec. 70412. Exclusion for employer payments of student loans. Sec. 70413. Additional expenses treated as qualified higher education expenses for purposes of 529 accounts. Sec. 70414. Certain postsecondary credentialing expenses treated as qualified higher education expenses for purposes of 529 accounts. Sec. 70415. Modification of excise tax on investment income of certain private colleges and universities. Sec. 70416. Expanding application of tax on excess compensation within tax-exempt organizations. subchapter c--permanent investments in community development Sec. 70421. Permanent renewal and enhancement of opportunity zones. Sec. 70422. Permanent enhancement of low-income housing tax credit. Sec. 70423. Permanent extension of new markets tax credit. Sec. 70424. Permanent and expanded reinstatement of partial deduction for charitable contributions of individuals who do not elect to itemize. Sec. 70425. 0.5 percent floor on deduction of contributions made by individuals. Sec. 70426. 1-percent floor on deduction of charitable contributions made by corporations. Sec. 70427. Permanent increase in limitation on cover over of tax on distilled spirits. Sec. 70428. Nonprofit community development activities in remote native villages. Sec. 70429. Adjustment of charitable deduction for certain expenses incurred in support of Native Alaskan subsistence whaling. Sec. 70430. Exception to percentage of completion method of accounting for certain residential construction contracts. subchapter d--permanent investments in small business and rural america Sec. 70431. Expansion of qualified small business stock gain exclusion. Sec. 70432. Repeal of revision to de minimis rules for third party network transactions. Sec. 70433. Increase in threshold for requiring information reporting with respect to certain payees. Sec. 70434. Treatment of certain qualified sound recording productions. Sec. 70435. Exclusion of interest on loans secured by rural or agricultural real property. Sec. 70436. Reduction of transfer and manufacturing taxes for certain devices. Sec. 70437. Treatment of capital gains from the sale of certain farmland property. Sec. 70438. Extension of rules for treatment of certain disaster- related personal casualty losses. Chapter 5--Ending Green New Deal Spending, Promoting America-first Energy, and Other Reforms subchapter a--termination of green new deal subsidies Sec. 70501. Termination of previously-owned clean vehicle credit. Sec. 70502. Termination of clean vehicle credit. Sec. 70503. Termination of qualified commercial clean vehicles credit. Sec. 70504. Termination of alternative fuel vehicle refueling property credit. Sec. 70505. Termination of energy efficient home improvement credit. Sec. 70506. Termination of residential clean energy credit. Sec. 70507. Termination of energy efficient commercial buildings deduction. Sec. 70508. Termination of new energy efficient home credit. Sec. 70509. Termination of cost recovery for energy property and qualified clean energy facilities, property, and technology. Sec. 70510. Modifications of zero-emission nuclear power production credit. Sec. 70511. Termination of clean hydrogen production credit. Sec. 70512. Termination and restrictions on clean electricity production credit. Sec. 70513. Termination and restrictions on clean electricity investment credit. Sec. 70514. Phase-out and restrictions on advanced manufacturing production credit. Sec. 70515. Restriction on the extension of advanced energy project credit program. subchapter b--enhancement of america-first energy policy Sec. 70521. Extension and modification of clean fuel production credit. Sec. 70522. Restrictions on carbon oxide sequestration credit. Sec. 70523. Intangible drilling and development costs taken into account for purposes of computing adjusted financial statement income. Sec. 70524. Income from hydrogen storage, carbon capture, advanced nuclear, hydropower, and geothermal energy added to qualifying income of certain publicly traded partnerships. Sec. 70525. Allow for payments to certain individuals who dye fuel. subchapter c--other reforms Sec. 70531. Modifications to de minimis entry privilege for commercial shipments. Chapter 6--Enhancing Deduction and Income Tax Credit Guardrails, and Other Reforms Sec. 70601. Modification and extension of limitation on excess business losses of noncorporate taxpayers. Sec. 70602. Treatment of payments from partnerships to partners for property or services. Sec. 70603. Excessive employee remuneration from controlled group members and allocation of deduction. Sec. 70604. Third party litigation funding reform. Sec. 70605. Excise tax on certain remittance transfers. Sec. 70606. Enforcement provisions with respect to COVID-related employee retention credits. Sec. 70607. Social security number requirement for American Opportunity and Lifetime Learning credits. Sec. 70608. Task force on the replacement of Direct File. Subtitle B--Health Chapter 1--Medicaid subchapter a--reducing fraud and improving enrollment processes Sec. 71101. Moratorium on implementation of rule relating to eligibility and enrollment in Medicare Savings Programs. Sec. 71102. Moratorium on implementation of rule relating to eligibility and enrollment for Medicaid, CHIP, and the Basic Health Program. Sec. 71103. Reducing duplicate enrollment under the Medicaid and CHIP programs. [[Page S3690]] Sec. 71104. Ensuring deceased individuals do not remain enrolled. Sec. 71105. Ensuring deceased providers do not remain enrolled. Sec. 71106. Payment reduction related to certain erroneous excess payments under Medicaid. Sec. 71107. Eligibility redeterminations. Sec. 71108. Revising home equity limit for determining eligibility for long-term care services under the Medicaid program. Sec. 71109. Alien Medicaid eligibility. Sec. 71110. Expansion FMAP for certain States providing payments for health care furnished to certain individuals. Sec. 71111. Expansion FMAP for emergency Medicaid. subchapter b--preventing wasteful spending Sec. 71112. Moratorium on implementation of rule relating to staffing standards for long-term care facilities under the Medicare and Medicaid programs. Sec. 71113. Reducing State Medicaid costs. Sec. 71114. Prohibiting Federal Medicaid and CHIP funding for certain items and services. Sec. 71115. Federal payments to prohibited entities. subchapter c--stopping abusive financing practices Sec. 71116. Sunsetting increased FMAP incentive. Sec. 71117. Provider taxes. Sec. 71118. State directed payments. Sec. 71119. Requirements regarding waiver of uniform tax requirement for Medicaid provider tax. Sec. 71120. Requiring budget neutrality for Medicaid demonstration projects under section 1115. subchapter d--increasing personal accountability Sec. 71121. Requirement for States to establish Medicaid community engagement requirements for certain individuals. Sec. 71122. Modifying cost sharing requirements for certain expansion individuals under the Medicaid program. subchapter e--expanding access to care Sec. 71123. Making certain adjustments to coverage of home or community-based services under Medicaid. Sec. 71124. Determination of FMAP for high-poverty States. Chapter 2--Medicare subchapter a--strengthening eligibility requirements Sec. 71201. Limiting Medicare coverage of certain individuals. subchapter b--improving services for seniors Sec. 71202. Temporary payment increase under the medicare physician fee schedule to account for exceptional circumstances. Sec. 71203. Expanding and clarifying the exclusion for orphan drugs under the Drug Price Negotiation Program. Sec. 71204. Application of cost-of-living adjustment to non-labor related portion for hospital outpatient department services furnished in Alaska and Hawaii. Chapter 3--Health Tax subchapter a--improving eligibility criteria Sec. 71301. Permitting premium tax credit only for certain individuals. Sec. 71302. Disallowing premium tax credit during periods of medicaid ineligibility due to alien status. subchapter b--preventing waste, fraud, and abuse Sec. 71303. Requiring verification of eligibility for premium tax credit. Sec. 71304. Disallowing premium tax credit in case of certain coverage enrolled in during special enrollment period. Sec. 71305. Eliminating limitation on recapture of advance payment of premium tax credit. subchapter c--enhancing choice for patients Sec. 71306. Permanent extension of safe harbor for absence of deductible for telehealth services. Sec. 71307. Allowance of bronze and catastrophic plans in connection with health savings accounts. Sec. 71308. Treatment of direct primary care service arrangements. Chapter 4--Protecting Rural Hospitals and Providers Sec. 71401. Rural Health Transformation Program. Subtitle C--Increase in Debt Limit Sec. 72001. Modification of limitation on the public debt. TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS Subtitle A--Exemption of Certain Assets Sec. 80001. Exemption of certain assets. Subtitle B--Loan Limits Sec. 81001. Establishment of loan limits for graduate and professional students and parent borrowers; termination of graduate and professional PLUS loans. Subtitle C--Loan Repayment Sec. 82001. Loan repayment. Sec. 82002. Deferment; forbearance. Sec. 82003. Loan rehabilitation. Sec. 82004. Public service loan forgiveness. Sec. 82005. Student loan servicing. Subtitle D--Pell Grants Sec. 83001. Eligibility. Sec. 83002. Workforce Pell Grants. Sec. 83003. Pell shortfall. Sec. 83004. Federal Pell Grant exclusion relating to other grant aid. Subtitle E--Accountability Sec. 84001. Ineligibility based on low earning outcomes. Subtitle F--Regulatory Relief Sec. 85001. Delay of rule relating to borrower defense to repayment. Sec. 85002. Delay of rule relating to closed school discharges. Subtitle G--Limitation on Authority Sec. 86001. Limitation on proposing or issuing regulations and executive actions. Subtitle H--Garden of Heroes Sec. 87001. Garden of Heroes. Subtitle I--Office of Refugee Resettlement Sec. 88001. Potential sponsor vetting for unaccompanied alien children appropriation. TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS Subtitle A--Homeland Security Provisions Sec. 90001. Border infrastructure and wall system. Sec. 90002. U.S. Customs and Border Protection personnel, fleet vehicles, and facilities. Sec. 90003. Detention capacity. Sec. 90004. Border security, technology, and screening. Sec. 90005. State and local assistance. Sec. 90006. Presidential residence protection. Sec. 90007. Department of Homeland Security appropriations for border support. Subtitle B--Governmental Affairs Provisions Sec. 90101. FEHB improvements. Sec. 90102. Pandemic Response Accountability Committee. Sec. 90103. Appropriation for the Office of Management and Budget. TITLE X--COMMITTEE ON THE JUDICIARY Subtitle A--Immigration and Law Enforcement Matters PART I--Immigration Fees Sec. 100001. Applicability of the immigration laws. Sec. 100002. Asylum fee. Sec. 100003. Employment authorization document fees. Sec. 100004. Immigration parole fee. Sec. 100005. Special immigrant juvenile fee. Sec. 100006. Temporary protected status fee. Sec. 100007. Visa integrity fee. Sec. 100008. Form I-94 fee. Sec. 100009. Annual asylum fee. Sec. 100010. Fee relating to renewal and extension of employment authorization for parolees. Sec. 100011. Fee relating to renewal or extension of employment authorization for asylum applicants. Sec. 100012. Fee relating to renewal and extension of employment authorization for aliens granted temporary protected status. Sec. 100013. Fees relating to applications for adjustment of status. Sec. 100014. Electronic System for Travel Authorization fee. Sec. 100015. Electronic Visa Update System fee. Sec. 100016. Fee for aliens ordered removed in absentia. Sec. 100017. Inadmissible alien apprehension fee. Sec. 100018. Amendment to authority to apply for asylum. PART II--Immigration and Law Enforcement Funding Sec. 100051. Appropriation for the Department of Homeland Security. Sec. 100052. Appropriation for U.S. Immigration and Customs Enforcement. Sec. 100053. Appropriation for Federal Law Enforcement Training Centers. Sec. 100054. Appropriation for the Department of Justice. Sec. 100055. Bridging Immigration-related Deficits Experienced Nationwide Reimbursement Fund. Sec. 100056. Appropriation for the Bureau of Prisons. Sec. 100057. Appropriation for the United States Secret Service. Subtitle B--Judiciary Matters Sec. 100101. Appropriation to the Administrative Office of the United States Courts. Sec. 100102. Appropriation to the Federal Judicial Center. Subtitle C--Radiation Exposure Compensation Matters Sec. 100201. Extension of fund. Sec. 100202. Claims relating to atmospheric testing. Sec. 100203. Claims relating to uranium mining. Sec. 100205. Limitations on claims. [[Page S3691]] TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY Subtitle A--Nutrition SEC. 10101. RE-EVALUATION OF THRIFTY FOOD PLAN. (a) In General.--Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) is amended by striking subsection (u) and inserting the following: ``(u) Thrifty Food Plan.-- ``(1) In general.--The term `thrifty food plan' means the diet required to feed a family of 4 persons consisting of a man and a woman ages 20 through 50, a child ages 6 through 8, and a child ages 9 through 11 using the items and quantities of food described in the report of the Department of Agriculture entitled `Thrifty Food Plan, 2021', and each successor report updated pursuant to this subsection, subject to the conditions that-- ``(A) the relevant market baskets of the thrifty food plan shall only be changed pursuant to paragraph (4); ``(B) the cost of the thrifty food plan shall be the basis for uniform allotments for all households, regardless of the actual composition of the household; and ``(C) the cost of the thrifty food plan may only be adjusted in accordance with this subsection. ``(2) Household adjustments.--The Secretary shall make household adjustments using the following ratios of household size as a percentage of the maximum 4-person allotment: ``(A) For a 1-person household, 30 percent. ``(B) For a 2-person household, 55 percent. ``(C) For a 3-person household, 79 percent. ``(D) For a 4-person household, 100 percent. ``(E) For a 5-person household, 119 percent. ``(F) For a 6-person household, 143 percent. ``(G) For a 7-person household, 158 percent. ``(H) For an 8-person household, 180 percent. ``(I) For a household of 9 persons or more, an additional 22 percent per person, which additional percentage shall not total more than 200 percent. ``(3) Allowable cost adjustments.--The Secretary shall-- ``(A) make cost adjustments in the thrifty food plan for Hawaii and the urban and rural parts of Alaska to reflect the cost of food in Hawaii and urban and rural Alaska; ``(B) make cost adjustments in the separate thrifty food plans for Guam and the Virgin Islands of the United States to reflect the cost of food in those States, but not to exceed the cost of food in the 50 States and the District of Columbia; and ``(C) on October 1, 2025, and on each October 1 thereafter, adjust the cost of the thrifty food plan to reflect changes in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor, for the most recent 12-month period ending in June. ``(4) Re-evaluation of market baskets.-- ``(A) Re-evaluation.--Not earlier than October 1, 2027, the Secretary may re-evaluate the market baskets of the thrifty food plan based on current food prices, food composition data, consumption patterns, and dietary guidance. ``(B) Cost neutrality.--The Secretary shall not increase the cost of the thrifty food plan based on a re-evaluation under this paragraph.''. (b) Conforming Amendments.-- (1) Section 16(c)(1)(A)(ii)(II) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(A)(ii)(II)) is amended by striking ``section 3(u)(4)'' and inserting ``section 3(u)(3)''. (2) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ``section 3(u)(4)'' and inserting ``section 3(u)(3)''. (3) Section 27(a)(2) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)(2))) is amended by striking ``section 3(u)(4)'' each place it appears and inserting ``section 3(u)(3)''. SEC. 10102. MODIFICATIONS TO SNAP WORK REQUIREMENTS FOR ABLE- BODIED ADULTS. (a) Exceptions.--Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended by striking paragraph (3) and inserting the following: ``(3) Exceptions.--Paragraph (2) shall not apply to an individual if the individual is-- ``(A) under 18, or over 65, years of age; ``(B) medically certified as physically or mentally unfit for employment; ``(C) a parent or other member of a household with responsibility for a dependent child under 14 years of age; ``(D) otherwise exempt under subsection (d)(2); ``(E) a pregnant woman; ``(F) an Indian or an Urban Indian (as such terms are defined in paragraphs (13) and (28) of section 4 of the Indian Health Care Improvement Act); or ``(G) a California Indian described in section 809(a) of the Indian Health Care Improvement Act.''. (b) Standardizing Enforcement.--Section 6(o)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)(4)) is amended-- (1) in subparagraph (A), by striking clause (ii) and inserting the following: ``(ii) is in a noncontiguous State and has an unemployment rate that is at or above 1.5 times the national unemployment rate8 percent.''; and (2) by adding at the end the following: ``(C) Definition of noncontiguous state.-- ``(i) In general.--In this paragraph, the term `noncontiguous State' means a State that is not 1 of the contiguous 48 States or the District of Columbia. ``(ii) Exclusions.--The term `noncontiguous State' does not include Gaum or the Virgin Islands of the United States.''. (c) Waiver for Noncontiguous States.--Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended-- (1) by redesignating paragraph (7) as paragraph (8); and (2) by inserting after paragraph (6) the following: ``(7) Exemption for noncontiguous states.-- ``(A) Definition of noncontiguous state.-- ``(i) In general.--In this paragraph, the term `noncontiguous State' means a State that is not 1 of the contiguous 48 States or the District of Columbia. ``(ii) Exclusions.--In this paragraph, the term `noncontiguous State' does not include Guam or the Virgin Islands of the United States. ``(B) Exemption.--Subject to subparagraph (D), the Secretary may exempt individuals in a noncontiguous State from compliance with the requirements of paragraph (2) if-- ``(i) the State agency submits to the Secretary a request for that exemption, made in such form and at such time as the Secretary may require, and including the information described in subparagraph (C); and ``(ii) the Secretary determines that based on that request, the State agency is demonstrating a good faith effort to comply with the requirements of paragraph (2). ``(C) Good faith effort determination.--In determining whether a State agency is demonstrating a good faith effort for purposes of subparagraph (B)(ii), the Secretary shall consider-- ``(i) any actions taken by the State agency toward compliance with the requirements of paragraph (2); ``(ii) any significant barriers to or challenges in meeting those requirements, including barriers or challenges relating to funding, design, development, procurement, or installation of necessary systems or resources; ``(iii) the detailed plan and timeline of the State agency for achieving full compliance with those requirements, including any milestones (as defined by the Secretary); and ``(iv) any other criteria determined appropriate by the Secretary. ``(D) Duration of exemption.-- ``(i) In general.--An exemption granted under subparagraph (B) shall expire not later than December 31, 2028, and may not be renewed beyond that date. ``(ii) Early termination.--The Secretary may terminate an exemption granted under subparagraph (B) prior to the expiration date of that exemption if the Secretary determines that the State agency-- ``(I) has failed to comply with the reporting requirements described in subparagraph (E); or ``(II) based on the information provided pursuant to subparagraph (E), failed to make continued good faith efforts toward compliance with the requirements of this subsection. ``(E) Reporting requirements.--A State agency granted an exemption under subparagraph (B) shall submit to the Secretary-- ``(i) quarterly progress reports on the status of the State agency in achieving the milestones toward full compliance described in subparagraph (C)(iii); and ``(ii) information on specific risks or newly identified barriers or challenges to full compliance, including the plan of the State agency to mitigate those risks, barriers, or challenges.''. SEC. 10103. AVAILABILITY OF STANDARD UTILITY ALLOWANCES BASED ON RECEIPT OF ENERGY ASSISTANCE. (a) Standard Utility Allowance.--Section 5(e)(6)(C)(iv)(I) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)(iv)(I)) is amended by inserting ``with an elderly or disabled member'' after ``households''. (b) Third-party Energy Assistance Payments.--Section 5(k)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(k)(4)) is amended-- (1) in subparagraph (A), by inserting ``without an elderly or disabled member'' before ``shall be''; and (2) in subparagraph (B), by inserting ``with an elderly or disabled member'' before ``under a State law''. SEC. 10104. RESTRICTIONS ON INTERNET EXPENSES. Section 5(e)(6) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)) is amended by adding at the end the following: ``(E) Restrictions on internet expenses.--Any service fee associated with internet connection shall not be used in computing the excess shelter expense deduction under this paragraph.''. SEC. 10105. MATCHING FUNDS REQUIREMENTS. (a) In General.--Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended-- (1) by striking ``(a) Subject to'' and inserting the following: ``(a) Program.-- ``(1) Establishment.--Subject to''; and (2) by adding at the end the following: ``(2) State quality control incentive.-- ``(A) Definition of payment error rate.--In this paragraph, the term `payment error rate' has the meaning given the term in section 16(c)(2). [[Page S3692]] ``(B) State cost share.-- ``(i) In general.--Beginning in fiscal year 2028, if the payment error rate of a State as determined under clause (ii) is-- ``(I) less than 6 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 100 percent, and the State share shall be 0 percent; ``(II) equal to or greater than 6 percent but less than 8 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 95 percent, and the State share shall be 5 percent; ``(III) equal to or greater than 8 percent but less than 10 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 90 percent, and the State share shall be 10 percent; and ``(IV) equal to or greater than 10 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 85 percent, and the State share shall be 15 percent. ``(ii) Elections.-- ``(I) Fiscal year 2028.--For fiscal year 2028, to calculate the applicable State share under clause (i), a State may elect to use the payment error rate of the State from fiscal year 2025 or 2026. ``(II) Fiscal year 2029 and thereafter.--For fiscal year 2029 and each fiscal year thereafter, to calculate the applicable State share under clause (i), the Secretary shall use the payment error rate of the State for the third fiscal year preceding the fiscal year for which the State share is being calculated. ``(3) Maximum federal payment.--The Secretary may not pay towards the cost of an allotment described in paragraph (1) an amount that is greater than the applicable Federal share under paragraph (2). ``(4) Waiver authority.-- ``(A) In general.--The Secretary may waive the requirement under paragraph (2) for a noncontiguous State (excluding Guam and the Virgin Islands of the United States) for a period of not more than 2 years if-- ``(i) the Secretary determines that the waiver is necessary; and ``(ii) the noncontiguous State is-- ``(I) actively implementing a corrective action plan (as described in section 275.17 of title 7, Code of Federal Regulations (or a successor regulation)); and ``(II) carrying out any other activities determined necessary by the Secretary to reduce its payment error rate (as defined in paragraph (2)). ``(B) Termination of authority.--The waiver authority under subparagraph (A) shall terminate on the date that is 4 years after the date of enactment of this paragraph.''. (b) Limitation on Authority.--Section 13(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in the first sentence by inserting ``or the payment or disposition of a State share under section 4(a)(2)'' after ``16(c)(1)(D)(i)(II)''. SEC. 10106. ADMINISTRATIVE COST SHARING. Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the matter preceding paragraph (1) by striking ``agency an amount equal to 50 per centum'' and inserting ``agency, through fiscal year 2026, 50 percent, and for fiscal year 2027 and each fiscal year thereafter, 25 percent,''. SEC. 10107. NATIONAL EDUCATION AND OBESITY PREVENTION GRANT PROGRAM. Section 28(d)(1)(F) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a(d)(1)(F)) is amended by striking ``for fiscal year 2016 and each subsequent fiscal year'' and inserting ``for each of fiscal years 2016 through 2025''. SEC. 10108. ALIEN SNAP ELIGIBILITY. Section 6(f) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(f)) is amended to read as follows: ``(f) No individual who is a member of a household otherwise eligible to participate in the supplemental nutrition assistance program under this section shall be eligible to participate in the supplemental nutrition assistance program as a member of that or any other household unless he or she is-- ``(1) a resident of the United States; and ``(2) either-- ``(A) a citizen or national of the United States; ``(B) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act, excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country; ``(C) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(D) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The income (less, at State option, a pro rata share) and financial resources of the individual rendered ineligible to participate in the supplemental nutrition assistance program under this subsection shall be considered in determining the eligibility and the value of the allotment of the household of which such individual is a member.''. Subtitle B--Forestry SEC. 10201. RESCISSION OF AMOUNTS FOR FORESTRY. The unobligated balances of amounts appropriated by the following provisions of Public Law 117-169 are rescinded: (1) Paragraphs (3) and (4) of section 23001(a) (136 Stat. 2023). (2) Paragraphs (1) through (4) of section 23002(a) (136 Stat. 2025). (3) Section 23003(a)(2) (136 Stat. 2026). (4) Section 23005 (136 Stat. 2027). Subtitle C--Commodities SEC. 10301. EFFECTIVE REFERENCE PRICE; REFERENCE PRICE. (a) Effective Reference Price.--Section 1111(8)(B)(ii) of the Agricultural Act of 2014 (7 U.S.C. 9011(8)(B)(ii)) is amended by striking ``85'' and inserting ``beginning with the crop year 2025, 88''. (b) Reference Price.--Section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011) is amended by striking paragraph (19) and inserting the following: ``(19) Reference price.-- ``(A) In general.--Effective beginning with the 2025 crop year, subject to subparagraphs (B) and (C), the term `reference price', with respect to a covered commodity for a crop year, means the following: ``(i) For wheat, $6.35 per bushel. ``(ii) For corn, $4.10 per bushel. ``(iii) For grain sorghum, $4.40 per bushel. ``(iv) For barley, $5.45 per bushel. ``(v) For oats, $2.65 per bushel. ``(vi) For long grain rice, $16.90 per hundredweight. ``(vii) For medium grain rice, $16.90 per hundredweight. ``(viii) For soybeans, $10.00 per bushel. ``(ix) For other oilseeds, $23.75 per hundredweight. ``(x) For peanuts, $630.00 per ton. ``(xi) For dry peas, $13.10 per hundredweight. ``(xii) For lentils, $23.75 per hundredweight. ``(xiii) For small chickpeas, $22.65 per hundredweight. ``(xiv) For large chickpeas, $25.65 per hundredweight. ``(xv) For seed cotton, $0.42 per pound. ``(B) Effectiveness.--Effective beginning with the 2031 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price in the previous crop year multiplied by 1.005. ``(C) Limitation.--In no case shall a reference price for a covered commodity exceed 113 percent of the reference price for such covered commodity listed in subparagraph (A).''. SEC. 10302. BASE ACRES. Section 1112 of the Agricultural Act of 2014 (7 U.S.C. 9012) is amended-- (1) in subsection (d)(3)(A), by striking ``2023'' and inserting ``2031''; and (2) by adding at the end the following: ``(e) Additional Base Acres.-- ``(1) In general.--As soon as practicable after the date of enactment of this subsection, and notwithstanding subsection (a), the Secretary shall provide notice to owners of eligible farms pursuant to paragraph (3) and allocate to those eligible farms a total of not more than an additional 30,000,000 base acres in the manner provided in this subsection. An owner of a farm that is eligible to receive an allocation of base acres may elect to not receive that allocation by notifying the Secretary not later than 90 days after receipt of the notice provided by the Secretary under this paragraph. ``(2) Content of notice.--The notice under paragraph (1) shall include the following: ``(A) Information that the allocation is occurring. ``(B) Information regarding the eligibility of the farm for an allocation of base acres under paragraph (3). ``(C) Information regarding how an owner may appeal a determination of ineligibility for an allocation of base acres under paragraph (3) through an appeals process established by the Secretary. ``(3) Eligibility.-- ``(A) In general.--Subject to subparagraph (D), effective beginning with the 2026 crop year, a farm is eligible to receive an allocation of base acres if, with respect to the farm, the amount described in subparagraph (B) exceeds the amount described in subparagraph (C). ``(B) 5-year average sum.--The amount described in this subparagraph, with respect to a farm, is the sum of-- ``(i) the 5-year average of-- ``(I) the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage or other similar purposes for the 2019 through 2023 crop years; and ``(II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; plus ``(ii) the lesser of-- ``(I) 15 percent of the total acres on the farm; and ``(II) the 5-year average of-- ``(aa) the acreage planted on the farm to eligible noncovered commodities for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and ``(bb) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to eligible noncovered commodities because of drought, [[Page S3693]] flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary. ``(C) Total number of base acres for covered commodities.-- The amount described in this subparagraph, with respect to a farm, is the total number of base acres for covered commodities on the farm (excluding unassigned crop base), as in effect on September 30, 2024. ``(D) Effect of no recent plantings of covered commodities.--In the case of a farm for which the amount determined under clause (i) of subparagraph (B) is equal to zero, that farm shall be ineligible to receive an allocation of base acres under this subsection. ``(E) Acreage planted on the farm to eligible noncovered commodities defined.--In this paragraph, the term `acreage planted on the farm to eligible noncovered commodities' means acreage planted on a farm to commodities other than covered commodities, trees, bushes, vines, grass, or pasture (including cropland that was idle or fallow), as determined by the Secretary. ``(4) Number of base acres.--Subject to paragraphs (3) and (8), the number of base acres allocated to an eligible farm shall-- ``(A) be equal to the difference obtained by subtracting the amount determined under subparagraph (C) of paragraph (3) from the amount determined under subparagraph (B) of that paragraph; and ``(B) include unassigned crop base. ``(5) Allocation of acres.-- ``(A) Allocation.--The Secretary shall allocate the number of base acres under paragraph (4) among those covered commodities planted on the farm at any time during the 2019 through 2023 crop years. ``(B) Allocation formula.--The allocation of additional base acres for covered commodities shall be in proportion to the ratio of-- ``(i) the 5-year average of-- ``(I) the acreage planted on the farm to each covered commodity for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and ``(II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to that covered commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; to ``(ii) the 5-year average determined under paragraph (3)(B)(i). ``(C) Inclusion of all 5 years in average.--For the purpose of determining a 5-year acreage average under subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not planted. ``(D) Treatment of multiple planting or prevented planting.--For the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2019 through 2023 crop years to covered commodities, if the acreage that was planted or prevented from being planted was devoted to another covered commodity in the same crop year (other than a covered commodity produced under an established practice of double cropping), the owner may elect the covered commodity to be used for that crop year in determining the 5-year average, but may not include both the initial covered commodity and the subsequent covered commodity. ``(E) Limitation.--The allocation of additional base acres among covered commodities on a farm under this paragraph may not result in a total number of base acres for the farm in excess of the total number of acres on the farm. ``(6) Reduction by the secretary.--In carrying out this subsection, if the total number of eligible acres allocated to base acres across all farms in the United States under this subsection would exceed 30,000,000 acres, the Secretary shall apply an across-the-board, pro-rata reduction to the number of eligible acres to ensure the number of allocated base acres under this subsection is equal to 30,000,000 acres. ``(7) Payment yield.--Beginning with crop year 2026, for the purpose of making price loss coverage payments under section 1116, the Secretary shall establish payment yields to base acres allocated under this subsection equal to-- ``(A) the payment yield established on the farm for the applicable covered commodity; and ``(B) if no such payment yield for the applicable covered commodity exists, a payment yield-- ``(i) equal to the average payment yield for the covered commodity for the county in which the farm is situated; or ``(ii) determined pursuant to section 1113(c). ``(8) Treatment of new owners.--In the case of a farm for which the owner on the date of enactment of this subsection was not the owner for the 2019 through 2023 crop years, the Secretary shall use the planting history of the prior owner or owners of that farm for purposes of determining-- ``(A) eligibility under paragraph (3); ``(B) eligible acres under paragraph (4); and ``(C) the allocation of acres under paragraph (5).''. SEC. 10303. PRODUCER ELECTION. (a) In General.--Section 1115 of the Agricultural Act of 2014 (7 U.S.C. 9015) is amended-- (1) in subsection (a), in the matter preceding paragraph (1), by striking ``2023'' and inserting ``2031''; (2) in subsection (c)-- (A) in the matter preceding paragraph (1)-- (i) by striking ``crop year or'' and inserting ``crop year,''; and (ii) by inserting ``or the 2026 crop year,'' after ``2019 crop year,''; (B) in paragraph (1)-- (i) by striking ``crop year or'' and inserting ``crop year,''; and (ii) by inserting ``or the 2026 crop year,'' after ``2019 crop year,''; and (C) in paragraph (2)-- (i) in subparagraph (A), by striking ``and'' at the end; (ii) in subparagraph (B), by striking the period at the end and inserting ``; and''; and (iii) by adding at the end the following: ``(C) the same coverage for each covered commodity on the farm for the 2027 through 2031 crop years as was applicable for the 2025 crop year.''; and (3) by adding at the end the following: ``(i) Higher of Price Loss Coverage Payments and Agriculture Risk Coverage Payments.--For the 2025 crop year, the Secretary shall, on a covered commodity-by-covered commodity basis, make the higher of price loss coverage payments under section 1116 and agriculture risk coverage county coverage payments under section 1117 to the producers on a farm for the payment acres for each covered commodity on the farm.''. (b) Federal Crop Insurance Supplemental Coverage Option.-- Section 508(c)(4)(C)(iv) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)(C)(iv)) is amended by striking ``Crops for which the producer has elected under section 1116 of the Agricultural Act of 2014 to receive agriculture risk coverage and acres'' and inserting ``Acres''. SEC. 10304. PRICE LOSS COVERAGE. Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is amended-- (1) in subsection (a)(2), in the matter preceding subparagraph (A), by striking ``2023'' and inserting ``2031''; (2) in subsection (c)(1)(B)-- (A) in the subparagraph heading, by striking ``2023'' and inserting ``2031''; and (B) in the matter preceding clause (i), by striking ``2023'' and inserting ``2031''; (3) in subsection (d), in the matter preceding paragraph (1), by striking ``2025'' and inserting ``2031''; and (4) in subsection (g)-- (A) by striking ``subparagraph (F) of section 1111(19)'' and inserting ``paragraph (19)(A)(vi) of section 1111''; and (B) by striking ``2012 through 2016'' each place it appears and inserting ``2017 through 2021''. SEC. 10305. AGRICULTURE RISK COVERAGE. Section 1117 of the Agricultural Act of 2014 (7 U.S.C. 9017) is amended-- (1) in subsection (a), in the matter preceding paragraph (1), by striking ``2023'' and inserting ``2031''; (2) in subsection (c)-- (A) in paragraph (1), by inserting ``for each of the 2014 through 2024 crop years and 90 percent of the benchmark revenue for each of the 2025 through 2031 crop years'' before the period at the end; (B) by striking ``2023'' each place it appears and inserting ``2031''; and (C) in paragraph (4)(B), in the subparagraph heading, by striking ``2023'' and inserting ``2031''; (3) in subsection (d)(1), by striking subparagraph (B) and inserting the following: ``(B)(i) for each of the 2014 through 2024 crop years, 10 percent of the benchmark revenue for the crop year applicable under subsection (c); and ``(ii) for each of the 2025 through 2031 crop years, 12 percent of the benchmark revenue for the crop year applicable under subsection (c).''; and (4) in subsections (e), (g)(5), and (i)(5), by striking ``2023'' each place it appears and inserting ``2031''. SEC. 10306. EQUITABLE TREATMENT OF CERTAIN ENTITIES. (a) In General.--Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended-- (1) in subsection (a)-- (A) by redesignating paragraph (5) as paragraph (6); and (B) by inserting after paragraph (4) the following: ``(5) Qualified pass-through entity.--The term `qualified pass-through entity' means-- ``(A) a partnership (within the meaning of subchapter K of chapter 1 of the Internal Revenue Code of 1986); ``(B) an S corporation (as defined in section 1361 of that Code); ``(C) a limited liability company that does not affirmatively elect to be treated as a corporation; and ``(D) a joint venture or general partnership.''; (2) in subsections (b) and (c), by striking ``except a joint venture or general partnership'' each place it appears and inserting ``except a qualified pass-through entity''; and (3) in subsection (d), by striking ``subtitle B of title I of the Agricultural Act of 2014 or''. (b) Attribution of Payments.--Section 1001(e)(3)(B)(ii) of the Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended-- (1) in the clause heading, by striking ``joint ventures and general partnerships'' and inserting ``qualified pass-through entities''; [[Page S3694]] (2) by striking ``a joint venture or a general partnership'' and inserting ``a qualified pass-through entity''; (3) by striking ``joint ventures and general partnerships'' and inserting ``qualified pass-through entities''; and (4) by striking ``the joint venture or general partnership'' and inserting ``the qualified pass-through entity''. (c) Persons Actively Engaged in Farming.--Section 1001A(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308- 1(b)(2)) is amended-- (1) subparagraphs (A) and (B), by striking ``a general partnership, a participant in a joint venture'' each place it appears and inserting ``a qualified pass-through entity''; and (2) in subparagraph (C), by striking ``a general partnership, joint venture, or similar entity'' and inserting ``a qualified pass-through entity or a similar entity''. (d) Joint and Several Liability.--Section 1001B(d) of the Food Security Act of 1985 (7 U.S.C. 1308-2(d)) is amended by striking ``partnerships and joint ventures'' and inserting ``qualified pass-through entities''. (e) Exclusion From AGI Calculation.--Section 1001D(d) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(d)) is amended by striking ``, general partnership, or joint venture'' each place it appears. SEC. 10307. PAYMENT LIMITATIONS. Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended-- (1) in subsection (b)-- (A) by striking ``The'' and inserting ``Subject to subsection (i), the''; and (B) by striking ``$125,000'' and inserting ``$155,000''; (2) in subsection (c)-- (A) by striking ``The'' and inserting ``Subject to subsection (i), the''; and (B) by striking ``$125,000'' and inserting ``$155,000''; and (3) by adding at the end the following: ``(i) Adjustment.--For the 2025 crop year and each crop year thereafter, the Secretary shall annually adjust the amounts described in subsections (b) and (c) for inflation based on the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.''. SEC. 10308. ADJUSTED GROSS INCOME LIMITATION. Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(b)) is amended-- (1) in paragraph (1), by striking ``paragraph (3)'' and inserting ``paragraphs (3) and (4)''; and (2) by adding at the end the following: ``(4) Exception for certain operations.-- ``(A) Definitions.--In this paragraph: ``(i) Excepted payment or benefit.--The term `excepted payment or benefit' means-- ``(I) a payment or benefit under subtitle E of title I of the Agricultural Act of 2014 (7 U.S.C. 9081 et seq.); ``(II) a payment or benefit under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and ``(III) a payment or benefit described in paragraph (2)(C) received on or after October 1, 2024. ``(ii) Farming, ranching, or silviculture activities.--The term `farming, ranching, or silviculture activities' includes agri-tourism, direct-to-consumer marketing of agricultural products, the sale of agricultural equipment owned by the person or legal entity, and other agriculture-related activities, as determined by the Secretary. ``(B) Exception.--In the case of an excepted payment or benefit, the limitation established by paragraph (1) shall not apply to a person or legal entity during a crop, fiscal, or program year, as appropriate, if greater than or equal to 75 percent of the average gross income of the person or legal entity derives from farming, ranching, or silviculture activities.''. SEC. 10309. MARKETING LOANS. (a) Availability of Nonrecourse Marketing Assistance Loans for Loan Commodities.--Section 1201(b)(1) of the Agricultural Act of 2014 (7 U.S.C. 9031(b)(1)) is amended by striking ``2023'' and inserting ``2031''. (b) Loan Rates for Nonrecourse Marketing Assistance Loans.--Section 1202 of the Agricultural Act of 2014 (7 U.S.C. 9032) is amended-- (1) in subsection (b)-- (A) in the subsection heading, by striking ``2023'' and inserting ``2025''; and (B) in the matter preceding paragraph (1), by striking ``2023'' and inserting ``2025''; (2) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; (3) by inserting after subsection (b) the following: ``(c) 2026 Through 2031 Crop Years.--For purposes of each of the 2026 through 2031 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following: ``(1) In the case of wheat, $3.72 per bushel. ``(2) In the case of corn, $2.42 per bushel. ``(3) In the case of grain sorghum, $2.42 per bushel. ``(4) In the case of barley, $2.75 per bushel. ``(5) In the case of oats, $2.20 per bushel. ``(6) In the case of upland cotton, $0.55 per pound. ``(7) In the case of extra long staple cotton, $1.00 per pound. ``(8) In the case of long grain rice, $7.70 per hundredweight. ``(9) In the case of medium grain rice, $7.70 per hundredweight. ``(10) In the case of soybeans, $6.82 per bushel. ``(11) In the case of other oilseeds, $11.10 per hundredweight for each of the following kinds of oilseeds: ``(A) Sunflower seed. ``(B) Rapeseed. ``(C) Canola. ``(D) Safflower. ``(E) Flaxseed. ``(F) Mustard seed. ``(G) Crambe. ``(H) Sesame seed. ``(I) Other oilseeds designated by the Secretary. ``(12) In the case of dry peas, $6.87 per hundredweight. ``(13) In the case of lentils, $14.30 per hundredweight. ``(14) In the case of small chickpeas, $11.00 per hundredweight. ``(15) In the case of large chickpeas, $15.40 per hundredweight. ``(16) In the case of graded wool, $1.60 per pound. ``(17) In the case of nongraded wool, $0.55 per pound. ``(18) In the case of mohair, $5.00 per pound. ``(19) In the case of honey, $1.50 per pound. ``(20) In the case of peanuts, $390 per ton.''; (4) in subsection (d) (as so redesignated), by striking ``(a)(11) and (b)(11)'' and inserting ``(a)(11), (b)(11), and (c)(11)''; and (5) in subsection (e) (as so redesignated), in paragraph (1), by striking ``$0.25'' and inserting ``$0.30''. (c) Payment of Cotton Storage Costs.--Section 1204(g) of the Agricultural Act of 2014 (7 U.S.C. 9034(g)) is amended-- (1) by striking ``Effective'' and inserting the following: ``(1) Crop years 2014 through 2025.--Effective''; (2) in paragraph (1) (as so designated), by striking ``2023'' and inserting ``2025''; and (3) by adding at the end the following: ``(2) Payment of cotton storage costs.--Effective for each of the 2026 through 2031 crop years, the Secretary shall make cotton storage payments for upland cotton and extra long staple cotton available in the same manner as the Secretary provided storage payments for the 2006 crop of upland cotton, except that the payment rate shall be equal to the lesser of-- ``(A) the submitted storage charge for the current marketing year; and ``(B) in the case of storage in-- ``(i) California or Arizona, a payment rate of $4.90; and ``(ii) any other State, a payment rate of $3.00.''. (d) Loan Deficiency Payments.-- (1) Continuation.--Section 1205(a)(2)(B) of the Agricultural Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is amended by striking ``2023'' and inserting ``2031''. (2) Payments in lieu of ldps.--Section 1206 of the Agricultural Act of 2014 (7 U.S.C. 9036) is amended, in subsections (a) and (d), by striking ``2023'' each place it appears and inserting ``2031''. (e) Special Competitive Provisions for Extra Long Staple Cotton.--Section 1208(a) of the Agricultural Act of 2014 (7 U.S.C. 9038(a)) is amended, in the matter preceding paragraph (1), by striking ``2026'' and inserting ``2032''. (f) Availability of Recourse Loans.--Section 1209 of the Agricultural Act of 2014 (7 U.S.C. 9039) is amended, in subsections (a)(2), (b), and (c), by striking ``2023'' each place it appears and inserting ``2031''. SEC. 10310. REPAYMENT OF MARKETING LOANS. Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is amended-- (1) in subsection (b)-- (A) by redesignating paragraph (1) as subparagraph (A) and indenting appropriately; (B) in the matter preceding subparagraph (A) (as so redesignated), by striking ``The Secretary'' and inserting the following: ``(1) In general.--The Secretary''; and (C) by striking paragraph (2) and inserting the following: ``(B)(i) in the case of long grain rice and medium grain rice, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section; or ``(ii) in the case of upland cotton, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section. ``(2) Refund for upland cotton.--In the case of a repayment for a marketing assistance loan for upland cotton at a rate described in paragraph (1)(B)(ii), the Secretary shall provide to the producer a refund (if any) in an amount equal to the difference between the lowest prevailing world market price, as determined and adjusted by the Secretary in accordance with this section, during the 30-day period following the date on which the producer repays the marketing assistance loan and the repayment rate.''; (2) in subsection (c)-- (A) by striking the period at the end and inserting ``; and''; (B) by striking ``at the loan rate'' and inserting the following: ``at a rate that is the lesser of-- ``(1) the loan rate''; and (C) by adding at the end the following: ``(2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.''; (3) in subsection (d)-- (A) in paragraph (1), by striking ``and medium grain rice'' and inserting ``medium grain rice, and extra long staple cotton''; [[Page S3695]] (B) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately; (C) in the matter preceding subparagraph (A) (as so redesignated), by striking ``For purposes'' and inserting the following: ``(1) In general.--For purposes''; and (D) by adding at the end the following: ``(2) Upland cotton.--In the case of upland cotton, for any period when price quotations for Middling (M) 1\3/32\-inch cotton are available, the formula under paragraph (1)(A) shall be based on the average of the 3 lowest-priced growths that are quoted.''; and (4) in subsection (e)-- (A) in the subsection heading, by inserting ``Extra Long Staple Cotton,'' after ``Upland Cotton,''; (B) in paragraph (2)-- (i) in the paragraph heading, by inserting ``Upland'' before ``Cotton''; and (ii) in subparagraph (B), in the matter preceding clause (i), by striking ``2024'' and inserting ``2032''; (C) by redesignating paragraph (3) as paragraph (4); and (D) by inserting after paragraph (2) the following: ``(3) Extra long staple cotton.--The prevailing world market price for extra long staple cotton determined under subsection (d)-- ``(A) shall be adjusted to United States quality and location, with the adjustment to include the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and ``(B) may be further adjusted, during the period beginning on the date of enactment of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress) and ending on July 31, 2032, if the Secretary determines the adjustment is necessary-- ``(i) to minimize potential loan forfeitures; ``(ii) to minimize the accumulation of stocks of extra long staple cotton by the Federal Government; ``(iii) to ensure that extra long staple cotton produced in the United States can be marketed freely and competitively; and ``(iv) to ensure an appropriate transition between current- crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if-- ``(I) there are insufficient current-crop price quotations; and ``(II) the forward-crop price quotation is the lowest such quotation available.''. SEC. 10311. ECONOMIC ADJUSTMENT ASSISTANCE FOR TEXTILE MILLS. Section 1207(c) of the Agricultural Act of 2014 (7 U.S.C. 9037(c)) is amended by striking paragraph (2) and inserting the following: ``(2) Value of assistance.--The value of the assistance provided under paragraph (1) shall be-- ``(A) for the period beginning on August 1, 2013, and ending on July 31, 2025, 3 cents per pound; and ``(B) beginning on August 1, 2025, 5 cents per pound.''. SEC. 10312. SUGAR PROGRAM UPDATES. (a) Loan Rate Modifications.--Section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended-- (1) in subsection (a)-- (A) in paragraph (4), by striking ``and'' at the end; (B) in paragraph (5), by striking ``2023 crop years.'' and inserting ``2024 crop years; and''; and (C) by adding at the end the following: ``(6) 24.00 cents per pound for raw cane sugar for each of the 2025 through 2031 crop years.''; (2) in subsection (b)-- (A) in paragraph (1), by striking ``and'' at the end; (B) in paragraph (2), by striking ``2023 crop years.'' and inserting ``2024 crop years; and''; and (C) by adding at the end the following: ``(3) a rate that is equal to 136.55 percent of the loan rate per pound of raw cane sugar under subsection (a)(6) for each of the 2025 through 2031 crop years.''; and (3) in subsection (i), by striking ``2023'' and inserting ``2031''. (b) Adjustments to Commodity Credit Corporation Storage Rates.--Section 167 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7287) is amended-- (1) by striking subsection (a) and inserting the following: ``(a) In General.--For the 2025 crop year and each subsequent crop year, the Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in an amount that is not less than-- ``(1) in the case of refined sugar, 34 cents per hundredweight per month; and ``(2) in the case of raw cane sugar, 27 cents per hundredweight per month.''; and (2) in subsection (b)-- (A) in the subsection heading, by striking ``Subsequent'' and inserting ``Prior''; and (B) by striking ``and subsequent'' and inserting ``through 2024''. (c) Modernizing Beet Sugar Allotments.-- (1) Sugar estimates.--Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by striking ``2023'' and inserting ``2031''. (2) Allocation to processors.--Section 359c(g)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc(g)(2)) is amended-- (A) by striking ``In the case'' and inserting the following: ``(A) In general.--Except as provided in subparagraph (B), in the case''; and (B) by adding at the end the following: ``(B) Exception.--If the Secretary makes an upward adjustment under paragraph (1)(A), in adjusting allocations among beet sugar processors, the Secretary shall give priority to beet sugar processors with available sugar.''. (3) Timing of reassignment.--Section 359e(b)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)(2)) is amended-- (A) by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively, and indenting appropriately; (B) in the matter preceding clause (i) (as so redesignated), by striking ``If the Secretary'' and inserting the following: ``(A) In general.--If the Secretary''; and (C) by adding at the end the following: ``(B) Timing.--In carrying out subparagraph (A), the Secretary shall-- ``(i) make an initial determination based on the World Agricultural Supply and Demand Estimates approved by the World Agricultural Outlook Board for January that shall be applicable to the crop year for which allotments are required; and ``(ii) provide for an initial reassignment under subparagraph (A)(i) not later than 30 days after the date on which the World Agricultural Supply and Demand Estimates described in clause (i) is released.''. (d) Reallocations of Tariff-rate Quota Shortfall.--Section 359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) is amended by adding at the end the following: ``(c) Reallocation.-- ``(1) Initial reallocation.--Subject to paragraph (3), following the establishment of the tariff-rate quotas under subsection (a) for a quota year, the Secretary shall-- ``(A) determine which countries do not intend to fulfill their allocation for the quota year; and ``(B) reallocate any forecasted shortfall in the fulfillment of the tariff-rate quotas as soon as practicable. ``(2) Subsequent reallocation.--Subject to paragraph (3), not later than March 1 of a quota year, the Secretary shall reallocate any additional forecasted shortfall in the fulfillment of the tariff-rate quotas for raw cane sugar established under subsection (a)(1) for that quota year. ``(3) Cessation of effectiveness.--Paragraphs (1) and (2) shall cease to be in effect if-- ``(A) the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico, signed December 19, 2014, is terminated; and ``(B) no countervailing duty order under subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) is in effect with respect to sugar from Mexico. ``(d) Refined Sugar.-- ``(1) Definition of domestic sugar industry.--In this subsection, the term `domestic sugar industry' means domestic-- ``(A) sugar beet producers and processors; ``(B) producers and processors of sugar cane; and ``(C) refiners of raw cane sugar. ``(2) Study required.-- ``(A) In general.--Not later than 180 days after the date of enactment of this subsection, the Secretary shall conduct a study on whether the establishment of additional terms and conditions with respect to refined sugar imports is necessary and appropriate. ``(B) Elements.--In conducting the study under subparagraph (A), the Secretary shall examine the following: ``(i) The need for-- ``(I) defining `refined sugar' as having a minimum polarization of 99.8 degrees or higher; ``(II) establishing a standard for color- or reflectance- based units for refined sugar such as those utilized by the International Commission of Uniform Methods of Sugar Analysis; ``(III) prescribing specifications for packaging type for refined sugar; ``(IV) prescribing specifications for transportation modes for refined sugar; ``(V) requiring evidence that sugar imported as refined sugar will not undergo further refining in the United States; ``(VI) prescribing appropriate terms and conditions to avoid unlawful sugar imports; and ``(VII) establishing other definitions, terms and conditions, or other requirements. ``(ii) The potential impact of modifications described in each of subclauses (I) through (VII) of clause (i) on the domestic sugar industry. ``(iii) Whether, based on the needs described in clause (i) and the impact described in clause (ii), the establishment of additional terms and conditions is appropriate. ``(C) Consultation.--In conducting the study under subparagraph (A), the Secretary shall consult with representatives of the domestic sugar industry and users of refined sugar. ``(D) Report.--Not later than 1 year after the date of enactment of this subsection, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the study conducted under subparagraph (A). ``(3) Establishment of additional terms and conditions permitted.-- ``(A) In general.--Based on the findings in the report submitted under paragraph (2)(D), [[Page S3696]] and after providing notice to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Secretary may issue regulations in accordance with subparagraph (B) to establish additional terms and conditions with respect to refined sugar imports that are necessary and appropriate. ``(B) Promulgation of regulations.--The Secretary may issue regulations under subparagraph (A) if the regulations-- ``(i) do not have an adverse impact on the domestic sugar industry; and ``(ii) are consistent with the requirements of this part, section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272), and obligations under international trade agreements that have been approved by Congress.''. (e) Clarification of Tariff-rate Quota Adjustments.-- Section 359k(b)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk(b)(1)) is amended, in the matter preceding subparagraph (A), by striking ``if there is an'' and inserting ``for the sole purpose of responding directly to an''. (f) Period of Effectiveness.--Section 359l(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking ``2023'' and inserting ``2031''. SEC. 10313. DAIRY POLICY UPDATES. (a) Dairy Margin Coverage Production History.-- (1) Definition.--Section 1401(8) of the Agricultural Act of 2014 (7 U.S.C. 9051(8)) is amended by striking ``when the participating dairy operation first registers to participate in dairy margin coverage''. (2) Production history of participating dairy operations.-- Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is amended by striking subsections (a) and (b) and inserting the following: ``(a) Production History.--Except as provided in subsection (b), the production history of a dairy operation for dairy margin coverage is equal to the highest annual milk marketings of the participating dairy operation during any 1 of the 2021, 2022, or 2023 calendar years. ``(b) Election by New Dairy Operations.--In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the production history of the participating dairy operation: ``(1) The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount. ``(2) An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.''. (b) Dairy Margin Coverage Payments.--Section 1406(a)(1)(C) of the Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(C)) is amended by striking ``5,000,000'' each place it appears and inserting ``6,000,000''. (c) Premiums for Dairy Margins.-- (1) Tier i.--Section 1407(b) of the Agricultural Act of 2014 (7 U.S.C. 9057(b)) is amended-- (A) in the subsection heading, by striking ``5,000,000'' and inserting ``6,000,000''; and (B) in paragraph (1), by striking ``5,000,000'' and inserting ``6,000,000''. (2) Tier ii.--Section 1407(c) of the Agricultural Act of 2014 (7 U.S.C. 9057(c)) is amended-- (A) in the subsection heading, by striking ``5,000,000'' and inserting ``6,000,000''; and (B) in paragraph (1), by striking ``5,000,000'' and inserting ``6,000,000''. (3) Premium discounts.--Section 1407(g) of the Agricultural Act of 2014 (7 U.S.C. 9057(g)) is amended-- (A) in paragraph (1)-- (i) by striking ``2019 through 2023'' and inserting ``2026 through 2031''; and (ii) by striking ``January 2019'' and inserting ``January 2026''; and (B) in paragraph (2), by striking ``2023'' each place it appears and inserting ``2031''. (d) Duration.--Section 1409 of the Agricultural Act of 2014 (7 U.S.C. 9059) is amended by striking ``2025'' and inserting ``2031''. SEC. 10314. IMPLEMENTATION. Section 1614(c) of the Agricultural Act of 2014 (7 U.S.C. 9097(c)) is amended by adding at the end the following: ``(5) Further funding.--The Secretary shall make available to carry out subtitle C of title I of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress) and the amendments made by that subtitle $50,000,000, to remain available until expended, of which-- ``(A) not less than $5,000,000 shall be used to carry out paragraphs (3) and (4) of subsection (b); ``(B) $3,000,000 shall be used for activities described in paragraph (3)(A); ``(C) $3,000,000 shall be used for activities described in paragraph (3)(B); ``(D) $9,000,000 shall be used-- ``(i) to carry out mandatory surveys of dairy production cost and product yield information to be reported by manufacturers required to report under section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b), for all products processed in the same facility or facilities; and ``(ii) to publish the results of such surveys biennially; and ``(E) $1,000,000 shall be used to conduct the study under subsection (d) of section 359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk).''. Subtitle D--Disaster Assistance Programs SEC. 10401. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. (a) Livestock Indemnity Payments.--Section 1501(b) of the Agricultural Act of 2014 (7 U.S.C. 9081(b)) is amended-- (1) by striking paragraph (2) and inserting the following: ``(2) Payment rates.-- ``(A) Losses due to predation.--Indemnity payments to an eligible producer on a farm under paragraph (1)(A) shall be made at a rate of 100 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary. ``(B) Losses due to adverse weather or disease.--Indemnity payments to an eligible producer on a farm under subparagraph (B) or (C) of paragraph (1) shall be made at a rate of 75 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary. ``(C) Determination of market value.--In determining the market value described in subparagraphs (A) and (B), the Secretary may consider the ability of eligible producers to document regional price premiums for affected livestock that exceed the national average market price for those livestock. ``(D) Applicable date defined.--In this paragraph, the term `applicable date' means, with respect to livestock, as applicable-- ``(i) the day before the date of death of the livestock; or ``(ii) the day before the date of the event that caused the harm to the livestock that resulted in a reduced sale price.''; and (2) by adding at the end the following: ``(5) Additional payment for unborn livestock.-- ``(A) In general.--In the case of unborn livestock death losses incurred on or after January 1, 2024, the Secretary shall make an additional payment to eligible producers on farms that have incurred such losses in excess of the normal mortality due to a condition specified in paragraph (1). ``(B) Payment rate.--Additional payments under subparagraph (A) shall be made at a rate-- ``(i) determined by the Secretary; and ``(ii) less than or equal to 85 percent of the payment rate established with respect to the lowest weight class of the livestock, as determined by the Secretary, acting through the Administrator of the Farm Service Agency. ``(C) Payment amount.--The amount of a payment to an eligible producer that has incurred unborn livestock death losses shall be equal to the payment rate determined under subparagraph (B) multiplied, in the case of livestock described in-- ``(i) subparagraph (A), (B), or (F) of subsection (a)(4), by 1; ``(ii) subparagraph (D) of such subsection, by 2; ``(iii) subparagraph (E) of such subsection, by 12; and ``(iv) subparagraph (G) of such subsection, by the average number of birthed animals (for one gestation cycle) for the species of each such livestock, as determined by the Secretary. ``(D) Unborn livestock death losses defined.--In this paragraph, the term `unborn livestock death losses' means losses of any livestock described in subparagraph (A), (B), (D), (E), (F), or (G) of subsection (a)(4) that was gestating on the date of the death of the livestock.''. (b) Livestock Forage Disaster Program.--Section 1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014 (7 U.S.C. 9081(c)(3)(D)(ii)(I)) is amended-- (1) by striking ``1 monthly payment'' and inserting ``2 monthly payments''; and (2) by striking ``county for at least 8 consecutive'' and inserting the following: ``county for not less than-- ``(aa) 4 consecutive weeks during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph in an amount equal to 1 monthly payment using the monthly payment rate determined under subparagraph (B); or ``(bb) 7 of the previous 8 consecutive''. (c) Emergency Assistance for Livestock, Honey Bees, and Farm-raised Fish.-- (1) In general.--Section 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 9081(d)) is amended by adding at the end the following: ``(5) Assistance for losses due to bird depredation.-- ``(A) Definition of farm-raised fish.--In this paragraph, the term `farm-raised fish' means fish propagated and reared in a controlled fresh water environment. ``(B) Payments.--Eligible producers of farm-raised fish, including fish grown as food for human consumption, shall be eligible to receive payments under this subsection to aid in the reduction of losses due to piscivorous birds. ``(C) Payment rate.-- ``(i) In general.--The payment rate for payments under subparagraph (B) shall be determined by the Secretary, taking into account-- ``(I) costs associated with the deterrence of piscivorous birds; ``(II) the value of lost fish and revenue due to bird depredation; and ``(III) costs associated with disease loss from bird depredation. ``(ii) Minimum rate.--The payment rate for payments under subparagraph (B) shall be [[Page S3697]] not less than $600 per acre of farm-raised fish. ``(D) Payment amount.--The amount of a payment under subparagraph (B) shall be the product obtained by multiplying-- ``(i) the applicable payment rate under subparagraph (C); and ``(ii) 85 percent of the total number of acres of farm- raised fish farms that the eligible producer has in production for the calendar year.''. (2) Emergency assistance for honeybees.--In determining honeybee colony losses eligible for assistance under section 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 9081(d)), the Secretary shall utilize a normal mortality rate of 15 percent. (d) Tree Assistance Program.--Section 1501(e) of the Agricultural Act of 2014 (7 U.S.C. 9081(e)) is amended-- (1) in paragraph (2)(B), by striking ``15 percent (adjusted for normal mortality)'' and inserting ``normal mortality''; and (2) in paragraph (3)-- (A) in subparagraph (A)(i), by striking ``15 percent mortality (adjusted for normal mortality)'' and inserting ``normal mortality''; and (B) in subparagraph (B)-- (i) by striking ``50'' and inserting ``65''; and (ii) by striking ``15 percent damage or mortality (adjusted for normal tree damage and mortality)'' and inserting ``normal tree damage or mortality''. Subtitle E--Crop Insurance SEC. 10501. BEGINNING FARMER AND RANCHER BENEFIT. (a) Definitions.-- (1) In general.--Section 502(b)(3) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)(3)) is amended by striking ``5'' and inserting ``10''. (2) Conforming amendment.--Section 522(c)(7) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)(7)) is amended by striking subparagraph (F). (b) Increase in Assistance.--Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following: ``(9) Additional support.-- ``(A) In general.--In addition to any other provision of this subsection (except paragraph (2)(A)) regarding payment of a portion of premiums, a beginning farmer or rancher shall receive additional premium assistance that is the number of percentage points specified in subparagraph (B) greater than the premium assistance that would otherwise be available for the applicable policy, plan of insurance, and coverage level selected by the beginning farmer or rancher. ``(B) Percentage points adjustments.--The percentage points referred to in subparagraph (A) are the following: ``(i) For each of the first and second reinsurance years that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 5 percentage points. ``(ii) For the third reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 3 percentage points. ``(iii) For the fourth reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 1 percentage point.''. SEC. 10502. AREA-BASED CROP INSURANCE COVERAGE AND AFFORDABILITY. (a) Coverage Level.--Section 508(c)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)) is amended-- (1) in subparagraph (A), by striking clause (ii) and inserting the following: ``(ii) may be purchased at any level not to exceed-- ``(I) in the case of the individual yield or revenue coverage, 85 percent; ``(II) in the case of individual yield or revenue coverage aggregated across multiple commodities, 90 percent; and ``(III) in the case of area yield or revenue coverage (as determined by the Corporation), 95 percent.''; and (2) in subparagraph (C)-- (A) in clause (ii), by striking ``14'' and inserting ``10''; and (B) in clause (iii)(I), by striking ``86'' and inserting ``90''. (b) Premium Subsidy.--Section 508(e)(2)(H)(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)(H)(i)) is amended by striking ``65'' and inserting ``80''. SEC. 10503. ADMINISTRATIVE AND OPERATING EXPENSE ADJUSTMENTS. Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by adding at the end the following: ``(10) Additional expenses.-- ``(A) In general.--Beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, in addition to the terms and conditions of the Standard Reinsurance Agreement, to cover additional expenses for loss adjustment procedures, the Corporation shall pay an additional administrative and operating expense subsidy to approved insurance providers for eligible contracts. ``(B) Payment amount.--In the case of an eligible contract, the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium. ``(C) Definitions.--In this paragraph: ``(i) Eligible contract.--The term `eligible contract'-- ``(I) means a crop insurance contract entered into by an approved insurance provider in an eligible State; and ``(II) does not include a contract for-- ``(aa) catastrophic risk protection under subsection (b); ``(bb) an area-based plan of insurance or similar plan of insurance, as determined by the Corporation; or ``(cc) a policy under which an approved insurance provider does not incur loss adjustment expenses, as determined by the Corporation. ``(ii) Eligible state.--The term `eligible State' means a State in which, with respect to an insurance year, the loss ratio for eligible contracts is greater than 120 percent of the total net book premium written by all approved insurance providers. ``(11) Specialty crops.-- ``(A) Minimum reimbursement.--Beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, the rate of reimbursement to approved insurance providers and agents for administrative and operating expenses with respect to crop insurance contracts covering agricultural commodities described in section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) shall be equal to or greater than the percentage that is the greater of the following: ``(i) 17 percent of the premium used to define loss ratio. ``(ii) The percent 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. ``(B) Other contracts.--In carrying out subparagraph (A), the Corporation shall not reduce, with respect to any reinsurance year, the amount or the rate of reimbursement to approved insurance providers and agents under the Standard Reinsurance Agreement described in clause (ii) of such subparagraph for administrative and operating expenses with respect to contracts covering agricultural commodities that are not subject to such subparagraph. ``(C) Administration.--The requirements of this paragraph and the adjustments made pursuant to this paragraph shall not be considered a renegotiation under paragraph (8)(A). ``(12) A&O inflation adjustment.-- ``(A) In general.--Subject to subparagraph (B), beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agreement in effect for the reinsurance year in order to account for inflation, in a manner consistent with the increases provided with respect to the 2011 through 2015 reinsurance years under the enclosure included in Risk Management Agency Bulletin numbered MGR-10-007 and dated June 30, 2010. ``(B) Special rule for 2026 reinsurance year.--The increase under subparagraph (A) for the 2026 reinsurance year shall not exceed the percentage change for the preceding reinsurance year included in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. ``(C) Administration.--An increase under subparagraph (A)-- ``(i) shall apply with respect to all contracts covering agricultural commodities that were subject to an increase during the period of the 2011 through 2015 reinsurance years under the enclosure referred to in that subparagraph; and ``(ii) shall not be considered a renegotiation under paragraph (8)(A).''. SEC. 10504. PREMIUM SUPPORT. Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended-- (1) in subparagraph (C)(i), by striking ``64'' and inserting ``69''; (2) in subparagraph (D)(i), by striking ``59'' and inserting ``64''; (3) in subparagraph (E)(i), by striking ``55'' and inserting ``60''; (4) in subparagraph (F)(i), by striking ``48'' and inserting ``51''; and (5) in subparagraph (G)(i), by striking ``38'' and inserting ``41''. SEC. 10505. PROGRAM COMPLIANCE AND INTEGRITY. Section 515(l)(2) of the Federal Crop Insurance Act (7 U.S.C. 1515(l)(2)) is amended by striking ``than'' and all that follows through the period at the end and inserting the following: ``than-- ``(A) $4,000,000 for each of fiscal years 2009 through 2025; and ``(B) $6,000,000 for fiscal year 2026 and each subsequent fiscal year.''. SEC. 10506. REVIEWS, COMPLIANCE, AND INTEGRITY. Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(C)(i)) is amended, in the matter preceding subclause (I), by striking ``for each fiscal year'' and inserting ``for each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter''. SEC. 10507. POULTRY INSURANCE PILOT PROGRAM. Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is amended by adding at the end the following: ``(j) Poultry Insurance Pilot Program.-- ``(1) In general.--Notwithstanding subsection (a)(2), the Corporation shall establish a pilot program under which contract poultry growers, including growers of broilers and laying hens, may elect to receive index-based insurance from extreme weather-related risk resulting in increased utility costs [[Page S3698]] (including costs of natural gas, propane, electricity, water, and other appropriate costs, as determined by the Corporation) associated with poultry production. ``(2) Stakeholder engagement.--The Corporation shall engage with poultry industry stakeholders in establishing the pilot program under paragraph (1). ``(3) Location.--The pilot program established under paragraph (1) shall be conducted in a sufficient number of counties to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among producers in the top poultry producing States, as determined by the Corporation. ``(4) Approval of policy or plan.--Notwithstanding section 508(l), the Board shall approve a policy or plan of insurance based on the pilot program under paragraph (1)-- ``(A) in accordance with section 508(h); and ``(B) not later than 2 years after the date of enactment of this subsection.''. Subtitle F--Additional Investments in Rural America SEC. 10601. CONSERVATION. (a) In General.--Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended-- (1) in paragraph (2), by striking subparagraphs (A) through (F) and inserting the following: ``(A) $625,000,000 for fiscal year 2026; ``(B) $650,000,000 for fiscal year 2027; ``(C) $675,000,000 for fiscal year 2028; ``(D) $700,000,000 for fiscal year 2029; ``(E) $700,000,000 for fiscal year 2030; and ``(F) $700,000,000 for fiscal year 2031.''; and (2) in paragraph (3)-- (A) in subparagraph (A), by striking clauses (i) through (v) and inserting the following: ``(i) $2,655,000,000 for fiscal year 2026; ``(ii) $2,855,000,000 for fiscal year 2027; ``(iii) $3,255,000,000 for fiscal year 2028; ``(iv) $3,255,000,000 for fiscal year 2029; ``(v) $3,255,000,000 for fiscal year 2030; and ``(vi) $3,255,000,000 for fiscal year 2031; and''; and (B) in subparagraph (B), by striking clauses (i) through (v) and inserting the following: ``(i) $1,300,000,000 for fiscal year 2026; ``(ii) $1,325,000,000 for fiscal year 2027; ``(iii) $1,350,000,000 for fiscal year 2028; ``(iv) $1,375,000,000 for fiscal year 2029; ``(v) $1,375,000,000 for fiscal year 2030; and ``(vi) $1,375,000,000 for fiscal year 2031.''. (b) Regional Conservation Partnership Program.--Section 1271D of the Food Security Act of 1985 (16 U.S.C. 3871d) is amended by striking subsection (a) and inserting the following: ``(a) Availability of Funding.--Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out the program, to the maximum extent practicable-- ``(1) $425,000,000 for fiscal year 2026; ``(2) $450,000,000 for fiscal year 2027; ``(3) $450,000,000 for fiscal year 2028; ``(4) $450,000,000 for fiscal year 2029; ``(5) $450,000,000 for fiscal year 2030; and ``(6) $450,000,000 for fiscal year 2031.''. (c) Grassroots Source Water Protection Program.--Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb- 2(b)) is amended-- (1) in paragraph (1), by striking ``2023'' and inserting ``2031''; and (2) in paragraph (3)-- (A) in subparagraph (A), by striking ``and'' at the end; (B) in subparagraph (B), by striking the period at the end and inserting ``; and''; and (C) by adding at the end the following: ``(C) $1,000,000 beginning in fiscal year 2026, to remain available until expended.''. (d) Voluntary Public Access and Habitat Incentive Program.--Section 1240R(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb-5(f)(1)) is amended-- (1) by striking ``2023, and'' and inserting ``2023,''; and (2) by inserting ``, and $70,000,000 for the period of fiscal years 2025 through 2031'' before the period at the end. (e) Watershed Protection and Flood Prevention.--Section 15 of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012a) is amended by striking ``$50,000,000 for fiscal year 2019 and each fiscal year thereafter'' and inserting ``$150,000,000 for fiscal year 2026 and each fiscal year thereafter, to remain available until expended''. (f) Feral Swine Eradication and Control Pilot Program.-- Section 2408(g)(1) of the Agriculture Improvement Act of 2018 (7 U.S.C. 8351 note; Public Law 115-334) is amended-- (1) by striking ``2023 and'' and inserting ``2023,''; and (2) by inserting ``, and $105,000,000 for the period of fiscal years 2025 through 2031'' before the period at the end. (g) Rescission.--The unobligated balances of amounts appropriated by section 21001(a) of Public Law 117-169 (136 Stat. 2015) are rescinded. SEC. 10602. SUPPLEMENTAL AGRICULTURAL TRADE PROMOTION PROGRAM. (a) In General.--The Secretary of Agriculture shall carry out a program to encourage the accessibility, development, maintenance, and expansion of commercial export markets for United States agricultural commodities. (b) Funding.--Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall make available to carry out this section $285,000,000 for fiscal year 2027 and each fiscal year thereafter. SEC. 10603. NUTRITION. Section 203D(d)(5) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7507(d)(5)) is amended by striking ``2024'' and inserting ``2031''. SEC. 10604. RESEARCH. (a) Urban, Indoor, and Other Emerging Agricultural Production Research, Education, and Extension Initiative.-- Section 1672E(d)(1)(B) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925g(d)(1)(B)) is amended by striking ``fiscal year 2024, to remain available until expended'' and inserting ``each of fiscal years 2024 through 2031''. (b) Foundation for Food and Agriculture Research.--Section 7601(g)(1)(A) of the Agricultural Act of 2014 (7 U.S.C. 5939(g)(1)(A)) is amended by adding at the end the following: ``(iv) Further funding.--Not later than 30 days after the date of enactment of this clause, of the funds of the Commodity Credit Corporation, the Secretary shall transfer to the Foundation to carry out this section $37,000,000, to remain available until expended.''. (c) Scholarships for Students at 1890 Institutions.-- Section 1446(b)(1) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222a(b)(1)) is amended by adding at the end the following: ``(C) Further funding.--Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $60,000,000 for fiscal year 2026, to remain available until expended.''. (d) Assistive Technology Program for Farmers With Disabilities.--Section 1680 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5933) is amended-- (1) in subsection (c)(2), by inserting ``and subsection (d)'' after ``paragraph (1)''; and (2) by adding at the end the following: ``(d) Mandatory Funding.--Subject to subsection (c)(2), of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $8,000,000 for fiscal year 2026, to remain available until expended.''. (e) Specialty Crop Research Initiative.--Section 412(k)(1)(B) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632(k)(1)(B)) is amended by striking ``section $80,000,000 for fiscal year 2014'' and inserting the following: ``section-- ``(i) $80,000,000 for each of fiscal years 2014 through 2025; and ``(ii) $175,000,000 for fiscal year 2026''. (f) Research Facilities Act.--Section 6 of the Research Facilities Act (7 U.S.C. 390d) is amended-- (1) in subsection (c), by striking ``subsection (a)'' and inserting ``subsections (a) and (e)''; and (2) by adding at the end the following: ``(e) Mandatory Funding.--Subject to subsections (b), (c), and (d), of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out the competitive grant program under section 4 $125,000,000 for fiscal year 2026 and each fiscal year thereafter.''. SEC. 10605. ENERGY. Section 9005(g)(1)(F) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8105(g)(1)(F)) is amended by striking ``2024'' and inserting ``2031''. SEC. 10606. HORTICULTURE. (a) Plant Pest and Disease Management and Disaster Prevention.--Section 420(f) of the Plant Protection Act (7 U.S.C. 7721(f)) is amended-- (1) in paragraph (5), by striking ``and'' at the end; (2) by redesignating paragraph (6) as paragraph (7); (3) by inserting after paragraph (5) the following: ``(6) $75,000,000 for each of fiscal years 2018 through 2025; and''; and (4) in paragraph (7) (as so redesignated), by striking ``$75,000,000 for fiscal year 2018'' and inserting ``$90,000,000 for fiscal year 2026''. (b) Specialty Crop Block Grants.--Section 101(l)(1) of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is amended-- (1) in subparagraph (D), by striking ``and'' at the end; (2) by redesignating subparagraph (E) as subparagraph (F); (3) by inserting after subparagraph (D) the following: ``(E) $85,000,000 for each of fiscal years 2018 through 2025; and''; and (4) in subparagraph (F) (as so redesignated), by striking ``$85,000,000 for fiscal year 2018'' and inserting ``$100,000,000 for fiscal year 2026''. (c) Organic Production and Market Data Initiative.--Section 7407(d)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5925c(d)(1)) is amended-- (1) in subparagraph (B), by striking ``and'' at the end; (2) in subparagraph (C), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following: ``(D) $10,000,000 for the period of fiscal years 2026 through 2031.''. (d) Modernization and Improvement of International Trade Technology Systems and Data Collection.--Section 2123(c)(4) of the Organic Foods Production Act of 1990 (7 U.S.C. 6522(c)(4)) is amended, in the matter preceding subparagraph (A), by striking ``and $1,000,000 for fiscal year 2024'' and inserting ``, $1,000,000 for fiscal years 2024 and 2025, and $5,000,000 for fiscal year 2026''. (e) National Organic Certification Cost-share Program.-- Section 10606(d)(1)(C) of [[Page S3699]] the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523(d)(1)(C)) is amended by striking ``2024'' and inserting ``2031''. (f) Multiple Crop and Pesticide Use Survey.--Section 10109(c) of the Agriculture Improvement Act of 2018 (Public Law 115-334; 132 Stat. 4907) is amended by adding at the end the following: ``(3) Further mandatory funding.--Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $5,000,000 for fiscal year 2026, to remain available until expended.''. SEC. 10607. MISCELLANEOUS. (a) Animal Disease Prevention and Management.--Section 10409A(d)(1) of the Animal Health Protection Act (7 U.S.C. 8308a(d)(1)) is amended-- (1) in subparagraph (B)-- (A) in the heading, by striking ``Subsequent fiscal years'' and inserting ``Fiscal years 2023 through 2025''; and (B) by striking ``fiscal year 2023 and each fiscal year thereafter'' and inserting ``each of fiscal years 2023 through 2025''; and (2) by adding at the end the following: ``(C) Fiscal years 2026 through 2030.--Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $233,000,000 for each of fiscal years 2026 through 2030, of which-- ``(i) not less than $10,000,000 shall be made available for each such fiscal year to carry out subsection (a); ``(ii) not less than $70,000,000 shall be made available for each such fiscal year to carry out subsection (b); and ``(iii) not less than $153,000,000 shall be made available for each such fiscal year to carry out subsection (c). ``(D) Subsequent fiscal years.--Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $75,000,000 for fiscal year 2031 and each fiscal year thereafter, of which not less than $45,000,000 shall be made available for each of those fiscal years to carry out subsection (b).''. (b) Sheep Production and Marketing Grant Program.--Section 209(c) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1627a(c)) is amended-- (1) by striking ``2019, and'' and inserting ``2019,''; and (2) by inserting ``and $3,000,000 for fiscal year 2026,'' after ``fiscal year 2024,'' (c) Pima Agriculture Cotton Trust Fund.--Section 12314 of the Agricultural Act of 2014 (7 U.S.C. 2101 note; Public Law 113-79) is amended-- (1) in subsection (b), in the matter preceding paragraph (1), by striking ``2024'' and inserting ``2031''; and (2) in subsection (h), by striking ``2024''and inserting ``2031''. (d) Agriculture Wool Apparel Manufacturers Trust Fund.-- Section 12315 of the Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113-79) is amended by striking ``2024'' each place it appears and inserting ``2031''. (e) Wool Research and Promotion.--Section 12316(a) of the Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113- 79) is amended by striking ``2024'' and inserting ``2031''. (f) Emergency Citrus Disease Research and Development Trust Fund.--Section 12605(d) of the Agriculture Improvement Act of 2018 (7 U.S.C. 7632 note; Public Law 115-334) is amended by striking ``2024'' and inserting ``2031''. TITLE II--COMMITTEE ON ARMED SERVICES SEC. 20001. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR IMPROVING THE QUALITY OF LIFE FOR MILITARY PERSONNEL. (a) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $230,480,000 for restoration and modernization costs under the Marine Corps Barracks 2030 initiative; (2) $119,000,000 for base operating support costs under the Marine Corps; (3) $1,000,000,000 for Army, Navy, Air Force, and Space Force sustainment, restoration, and modernization of military unaccompanied housing; (4) $2,000,000,000 for the Defense Health Program; (5) $2,900,000,000 to supplement the basic allowance for housing payable to members of the Army, Air Force, Navy, Marine Corps, and Space Force , notwithstanding section 403 of title 37, United States Code; (6) $50,000,000 for bonuses, special pays, and incentive pays for members of the Army, Air Force, Navy, Marine Corps, and Space Force pursuant to titles 10 and 37, United States Code; (7) $10,000,000 for the Defense Activity for Non- Traditional Education Support's Online Academic Skills Course program for members of the Army, Air Force, Navy, Marine Corps, and Space Force; (8) $100,000,000 for tuition assistance for members of the Army, Air Force, Navy, Marine Corps, and Space Force pursuant to title 10, United States Code; (9) $100,000,000 for child care fee assistance for members of the Army, Air Force, Navy, Marine Corps, and Space Force under part II of chapter 88 of title 10, United States Code; (10) $590,000,000 to increase the Temporary Lodging Expense Allowance under chapter 8 of title 37, United States Code, to 21 days; (11) $100,000,000 for Department of Defense Impact Aid payments to local educational agencies under section 2008 of title 10, United States Code; (12) $10,000,000 for military spouse professional licensure under section 1784 of title 10, United States Code; (13) $6,000,000 for Armed Forces Retirement Home facilities; (14) $100,000,000 for the Defense Community Infrastructure Program; (15) $100,000,000 for Defense Advanced Research Projects Agency (DARPA) casualty care research; and (16) $62,000,000 for modernization of Department of Defense childcare center staffing. (b) Temporary Increase in Percentage of Value of Authorized Investment in Certain Privatized Military Housing Projects.-- (1) In general.--During the period beginning on the date of the enactment of this section and ending on September 30, 2029, the Secretary concerned shall apply-- (A) paragraph (1) of subsection (c) of section 2875 of title 10, United States Code, by substituting ``60 percent'' for ``33 \1/3\ percent''; and (B) paragraph (2) of such subsection by substituting ``60 percent'' for ``45 percent''. (2) Secretary concerned defined.--In this subsection, the term ``Secretary concerned'' has the meaning given such term in section 101 of title 10, United States Code. (c) Temporary Authority for Acquisition or Construction of Privatized Military Unaccompanied Housing.--Section 2881a of title 10, United States Code, is amended-- (1) by striking the heading and inserting ``Temporary authority for acquisition or construction of privatized military unaccompanied housing''; (2) by striking ``Secretary of the Navy'' each place it appears and inserting ``Secretary concerned''; (3) by striking ``under the pilot projects'' each place it appears and inserting ``pursuant to this section''; (4) in subsection (a)-- (A) by striking the heading and inserting ``In General''; and (B) by striking ``carry out not more than three pilot projects under the authority of this section or another provision of this subchapter to use the private sector'' and inserting ``use the authority under this subchapter to enter into contracts with appropriate private sector entities''; (5) in subsection (c), by striking ``privatized housing'' and inserting ``privatized housing units''; (6) by redesignating subsection (f) as subsection (e); and (7) in subsection (e) (as so redesignated)-- (A) by striking ``under the pilot programs'' and inserting ``under this section''; and (B) by striking ``September 30, 2009'' and inserting ``September 30, 2029''. SEC. 20002. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR SHIPBUILDING. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $250,000,000 for the expansion of accelerated Training in Defense Manufacturing program; (2) $250,000,000 for United States production of turbine generators for shipbuilding industrial base; (3) $450,000,000 for United States additive manufacturing for wire production and machining capacity for shipbuilding industrial base; (4) $492,000,000 for next-generation shipbuilding techniques; (5) $85,000,000 for United States-made steel plate for shipbuilding industrial base; (6) $50,000,000 for machining capacity for naval propellers for shipbuilding industrial base; (7) $110,000,000 for rolled steel and fabrication facility for shipbuilding industrial base; (8) $400,000,000 for expansion of collaborative campus for naval shipbuilding; (9) $450,000,000 for application of autonomy and artificial intelligence to naval shipbuilding; (10) $500,000,000 for the adoption of advanced manufacturing techniques in the shipbuilding industrial base; (11) $500,000,000 for additional dry-dock capability; (12) $50,000,000 for the expansion of cold spray repair technologies; (13) $450,000,000 for additional maritime industrial workforce development programs; (14) $750,000,000 for additional supplier development across the naval shipbuilding industrial base; (15) $250,000,000 for additional advanced manufacturing processes across the naval shipbuilding industrial base; (16) $4,600,000,000 for a second Virginia-class submarine in fiscal year 2026; (17) $5,400,000,000 for two additional Guided Missile Destroyer (DDG) ships; (18) $160,000,000 for advanced procurement for Landing Ship Medium; (19) $1,803,941,000 for procurement of Landing Ship Medium; [[Page S3700]] (20) $295,000,000 for development of a second Landing Craft Utility shipyard and production of additional Landing Craft Utility; (21) $100,000,000 for advanced procurement for light replenishment oiler program; (22) $600,000,000 for the lease or purchase of new ships through the National Defense Sealift Fund; (23) $2,725,000,000 for the procurement of T-AO oilers; (24) $500,000,000 for cost-to-complete for rescue and salvage ships; (25) $300,000,000 for production of ship-to-shore connectors; (26) $1,470,000,000 for the implementation of a multi-ship amphibious warship contract; (27) $80,000,000 for accelerated development of vertical launch system reloading at sea; (28) $250,000,000 for expansion of Navy corrosion control programs; (29) $159,000,000 for leasing of ships for Marine Corps operations; (30) $1,534,000,000 for expansion of small unmanned surface vessel production; (31) $2,100,000,000 for development, procurement, and integration of purpose-built medium unmanned surface vessels; (32) $1,300,000,000 for expansion of unmanned underwater vehicle production; (33) $188,360,000 for the development and testing of maritime robotic autonomous systems and enabling technologies; (34) $174,000,000 for the development of a Test Resource Management Center robotic autonomous systems proving ground; (35) $250,000,000 for the development, production, and integration of wave-powered unmanned underwater vehicles; and (36) $150,000,000 for retention of inactive reserve fleet ships. SEC. 20003. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR INTEGRATED AIR AND MISSILE DEFENSE. (a) Next Generation Missile Defense Technologies.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $250,000,000 for development and testing of directed energy capabilities by the Under Secretary for Research and Engineering; (2) $500,000,000 for national security space launch infrastructure; (3) $2,000,000,000 for air moving target indicator military satellites; (4) $400,000,000 for expansion of Multi-Service Advanced Capability Hypersonic Test Bed program; (5) $5,600,000,000 for development of space-based and boost phase intercept capabilities; (6) $7,200,000,000 for the development, procurement, and integration of military space-based sensors; and (7) $2,550,000,000 for the development, procurement, and integration of military missile defense capabilities. (b) Layered Homeland Defense.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $2,200,000,000 for acceleration of hypersonic defense systems; (2) $800,000,000 for accelerated development and deployment of next-generation intercontinental ballistic missile defense systems; (3) $408,000,000 for Army space and strategic missile test range infrastructure restoration and modernization in the United States Indo-Pacific Command area of operations west of the international dateline; (4) $1,975,000,000 for improved ground-based missile defense radars; and (5) $530,000,000 for the design and construction of Missile Defense Agency missile instrumentation range safety ship. SEC. 20004. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR MUNITIONS AND DEFENSE SUPPLY CHAIN RESILIENCY. (a) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $400,000,000 for the development, production, and integration of Navy and Air Force long-range anti-ship missiles; (2) $380,000,000 for production capacity expansion for Navy and Air Force long-range anti-ship missiles; (3) $490,000,000 for the development, production, and integration of Navy and Air Force long-range air-to-surface missiles; (4) $94,000,000 for the development, production, and integration of alternative Navy and Air Force long-range air- to-surface missiles; (5) $630,000,000 for the development, production, and integration of long-range Navy air defense and anti-ship missiles; (6) $688,000,000 for the development, production, and integration of long-range multi-service cruise missiles; (7) $250,000,000 for production capacity expansion and supplier base strengthening of long-range multi-service cruise missiles; (8) $70,000,000 for the development, production, and integration of short-range Navy and Marine Corps anti-ship missiles; (9) $100,000,000 for the development of an anti-ship seeker for short-range Army ballistic missiles; (10) $175,000,000 for production capacity expansion for next-generation Army medium-range ballistic missiles; (11) $50,000,000 for the mitigation of diminishing manufacturing sources for medium-range air-to-air missiles; (12) $250,000,000 for the procurement of medium-range air- to-air missiles; (13) $225,000,000 for the expansion of production capacity for medium-range air-to-air missiles; (14) $50,000,000 for the development of second sources for components of short-range air-to-air missiles; (15) $325,000,000 for production capacity improvements for air-launched anti-radiation missiles; (16) $50,000,000 for the accelerated development of Army next-generation medium-range anti-ship ballistic missiles; (17) $114,000,000 for the production of Army next- generation medium-range ballistic missiles; (18) $300,000,000 for the production of Army medium-range ballistic missiles; (19) $85,000,000 for the accelerated development of Army long-range ballistic missiles; (20) $400,000,000 for the production of heavyweight torpedoes; (21) $200,000,000 for the development, procurement, and integration of mass-producible autonomous underwater munitions; (22) $70,000,000 for the improvement of heavyweight torpedo maintenance activities; (23) $200,000,000 for the production of lightweight torpedoes; (24) $500,000,000 for the development, procurement, and integration of maritime mines; (25) $50,000,000 for the development, procurement, and integration of new underwater explosives; (26) $55,000,000 for the development, procurement, and integration of lightweight multi-mission torpedoes; (27) $80,000,000 for the production of sonobuoys; (28) $150,000,000 for the development, procurement, and integration of air-delivered long-range maritime mines; (29) $61,000,000 for the acceleration of Navy expeditionary loitering munitions deployment; (30) $50,000,000 for the acceleration of one-way attack unmanned aerial systems with advanced autonomy; (31) $1,000,000,000 for the expansion of the one-way attack unmanned aerial systems industrial base; (32) $200,000,000 for investments in solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code; (33) $400,000,000 for investments in the emerging solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code; (34) $42,000,000 for investments in second sources for large-diameter solid rocket motors for hypersonic missiles; (35) $1,000,000,000 for the creation of next-generation automated munitions production factories; (36) $170,000,000 for the development of advanced radar depot for repair, testing, and production of radar and electronic warfare systems; (37) $25,000,000 for the expansion of the Department of Defense industrial base policy analysis workforce; (38) $30,300,000 for the repair of Army missiles; (39) $100,000,000 for the production of small and medium ammunition; (40) $2,000,000,000 for additional activities to improve the United States stockpile of critical minerals through the National Defense Stockpile Transaction Fund, authorized by subchapter III of chapter 5 of title 50, United States Code; (41) $10,000,000 for the expansion of the Department of Defense armaments cooperation workforce; (42) $500,000,000 for the expansion of the Defense Exportability Features program; (43) $350,000,000 for production of Navy long-range air and missile defense interceptors; (44) $93,000,000 for replacement of Navy long-range air and missile defense interceptors; (45) $100,000,000 for development of a second solid rocket motor source for Navy air defense and anti ship missiles; (46) $65,000,000 for expansion of production capacity of Missile Defense Agency long-range anti-ballistic missiles; (47) $225,000,000 for expansion of production capacity for Navy air defense and anti-ship missiles; (48) $103,300,000 for expansion of depot level maintenance facility for Navy long-range air and missile defense interceptors; (49) $18,000,000 for creation of domestic source for guidance section of Navy short-range air defense missiles; (50) $65,000,000 for integration of Army medium-range air and missile defense interceptor with Navy ships; (51) $176,100,000 for production of Army long-range movable missile defense radar; (52) $167,000,000 for accelerated fielding of Army short- range gun-based air and missile defense system; (53) $40,000,000 for development of low-cost alternatives to air and missile defense interceptors; (54) $50,000,000 for acceleration of Army next-generation shoulder-fired air defense system; (55) $91,000,000 for production of Army next-generation shoulder-fired air defense system; [[Page S3701]] (56) $500,000,000 for development, production, and integration of counter-unmanned aerial systems programs; (57) $350,000,000 for development, production, and integration of non-kinetic counter-unmanned aerial systems programs; (58) $250,000,000 for development, production, and integration of land-based counter-unmanned aerial systems programs; (59) $200,000,000 for development, production, and integration of ship-based counter-unmanned aerial systems programs; (60) $400,000,000 for acceleration of hypersonic strike programs; (61) $167,000,000 for procurement of additional launchers for Army medium-range air and missile defense interceptors; (62) $500,000,000 for expansion of defense advanced manufacturing techniques; (63) $1,000,000 for establishment of the Joint Energetics Transition Office; (64) $200,000,000 for acceleration of Army medium-range air and missile defense interceptors; (65) $150,000,000 for additive manufacturing for propellant; (66) $250,000,000 for expansion and acceleration of penetrating munitions production; and (67) $50,000,000 for development, procurement, and integration of precision extended-range artillery. (b) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $3,300,000,000 for grants and purchase commitments made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code. (c) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $5,000,000,000 for investments in critical minerals supply chains made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code. (d) Appropriations.--In addition to amounts otherwise available, there is appropriated to the Secretary of Defense, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $500,000,000 to the ``Department of Defense Credit Program Account'' to carry out the capital assistance program, including loans, loan guarantees, and technical assistance, established under section 149(e) of title 10, United States Code, for critical minerals and related industries and projects, including related Covered Technology Categories: Provided, That-- (1) such amounts are available to subsidize gross obligations for the principal amount of direct loans, and total loan principal, any part of which is to be guaranteed, not to exceed $100,000,000,000; and (2) such amounts are available to cover all costs and expenditures as provided under section 149(e)(5)(B) of title 10, United States Code. SEC. 20005. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR SCALING LOW-COST WEAPONS INTO PRODUCTION. (a) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $25,000,000 for the Office of Strategic Capital Global Technology Scout program; (2) $1,400,000,000 for the expansion of the small unmanned aerial system industrial base; (3) $400,000,000 for the development and deployment of the Joint Fires Network and associated joint battle management capabilities; (4) $400,000,000 for the expansion of advanced command-and- control tools to combatant commands and military departments; (5) $100,000,000 for the development of shared secure facilities for the defense industrial base; (6) $50,000,000 for the creation of additional Defense Innovation Unit OnRamp Hubs; (7) $600,000,000 for the acceleration of Strategic Capabilities Office programs; (8) $650,000,000 for the expansion of Mission Capabilities office joint prototyping and experimentation activities for military innovation; (9) $500,000,000 for the accelerated development and integration of advanced 5G/6G technologies for military use; (10) $25,000,000 for testing of simultaneous transmit and receive technology for military spectrum agility; (11) $50,000,000 for the development, procurement, and integration of high-altitude stratospheric balloons for military use; (12) $120,000,000 for the development, procurement, and integration of long-endurance unmanned aerial systems for surveillance; (13) $40,000,000 for the development, procurement, and integration of alternative positioning and navigation technology to enable military operations in contested electromagnetic environments; (14) $750,000,000 for the acceleration of innovative military logistics and energy capability development and deployment; (15) $125,000,000 for the acceleration of development of small, portable modular nuclear reactors for military use; (16) $1,000,000,000 for the expansion of programs to accelerate the procurement and fielding of innovative technologies; (17) $90,000,000 for the development of reusable hypersonic technology for military strikes; (18) $2,000,000,000 for the expansion of Defense Innovation Unit scaling of commercial technology for military use; (19) $500,000,000 to prevent delays in delivery of attritable autonomous military capabilities; (20) $1,500,000,000 for the development, procurement, and integration of low-cost cruise missiles; (21) $124,000,000 for improvements to Test Resource Management Center artificial intelligence capabilities; (22) $145,000,000 for the development of artificial intelligence to enable one-way attack unmanned aerial systems and naval systems; (23) $250,000,000 for the development of the Test Resource Management Center digital test environment; (24) $250,000,000 for the advancement of the artificial intelligence ecosystem; (25) $250,000,000 for the expansion of Cyber Command artificial intelligence lines of effort; (26) $250,000,000 for the acceleration of the Quantum Benchmarking Initiative; (27) $1,000,000,000 for the expansion and acceleration of qualification activities and technical data management to enhance competition in defense industrial base; (28) $400,000,000 for the expansion of the defense manufacturing technology program; (29) $1,685,000,000 for military cryptographic modernization activities; (30) $90,000,000 for APEX Accelerators, the Mentor-Protege Program, and cybersecurity support to small non-traditional contractors; (31) $250,000,000 for the development, procurement, and integration of Air Force low-cost counter-air capabilities; (32) $10,000,000 for additional Air Force wargaming activities; and (33) $20,000,000 for the Office of Strategic Capital workforce. (b) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $1,000,000,000 to the ``Department of Defense Credit Program Account'' to carry out the capital assistance program, including loans, loan guarantees, and technical assistance, established under section 149(e) of title 10, United States Code: Provided, That-- (1) such amounts are available to subsidize gross obligations for the principal amount of direct loans, and total loan principal, any part of which is to be guaranteed, not to exceed $100,000,000,000; and (2) such amounts are available to cover all costs and expenditures as provided under section 149(e)(5)(B) of title 10, United States Code. SEC. 20006. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR IMPROVING THE EFFICIENCY AND CYBERSECURITY OF THE DEPARTMENT OF DEFENSE. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $150,000,000 for business systems replacement to accelerate the audits of the financial statements of the Department of Defense pursuant to chapter 9A and section 2222 of title 10, United States Code; (2) $200,000,000 for the deployment of automation and artificial intelligence to accelerate the audits of the financial statements of the Department of Defense pursuant to chapter 9A and section 2222 of title 10, United States Code; (3) $10,000,000 for the improvement of the budgetary and programmatic infrastructure of the Office of the Secretary of Defense; and (4) $20,000,000 for defense cybersecurity programs of the Defense Advanced Research Projects Agency. SEC. 20007. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR AIR SUPERIORITY. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $3,150,000,000 to increase F-15EX aircraft production; (2) $361,220,000 to prevent the retirement of F-22 aircraft; (3) $127,460,000 to prevent the retirement of F-15E aircraft; (4) $187,000,000 to accelerate installation of F-16 electronic warfare capability; (5) $116,000,000 for C-17A Mobility Aircraft Connectivity; (6) $84,000,000 for KC-135 Mobility Aircraft Connectivity; (7) $440,000,000 to increase C-130J production; (8) $474,000,000 to increase EA-37B production; (9) $678,000,000 to accelerate the Collaborative Combat Aircraft program; (10) $400,000,000 to accelerate production of the F-47 aircraft; (11) $750,000,000 accelerate the FA/XX aircraft; (12) $100,000,000 for production of Advanced Aerial Sensors; [[Page S3702]] (13) $160,000,000 to accelerate V-22 nacelle and reliability and safety improvements; (14) $100,000,000 to accelerate production of MQ-25 aircraft; (15) $270,000,000 for development, procurement, and integration of Marine Corps unmanned combat aircraft; (16) $96,000,000 for the procurement and integration of infrared search and track pods; (17) $50,000,000 for the procurement and integration of additional F-15EX conformal fuel tanks; (18) $600,000,000 for the development, procurement, and integration of Air Force long-range strike aircraft; and (19) $500,000,000 for the development, procurement, and integration of Navy long-range strike aircraft. SEC. 20008. ENHANCEMENT OF RESOURCES FOR NUCLEAR FORCES. (a) DOD Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $2,500,000,000 for risk reduction activities for the Sentinel intercontinental ballistic missile program; (2) $4,500,000,000 only for expansion of production capacity of B-21 long-range bomber aircraft and the purchase of aircraft only available through the expansion of production capacity; (3) $500,000,000 for improvements to the Minuteman III intercontinental ballistic missile system; (4) $100,000,000 for capability enhancements to intercontinental ballistic missile reentry vehicles; (5) $148,000,000 for the expansion of D5 missile motor production; (6) $400,000,000 to accelerate the development of Trident D5LE2 submarine-launched ballistic missiles; (7) $2,000,000,000 to accelerate the development, procurement, and integration of the nuclear-armed sea- launched cruise missile; (8) $62,000,000 to convert Ohio-class submarine tubes to accept additional missiles, not to be obligated before March 1, 2026; (9) $168,000,000 to accelerate the production of the Survivable Airborne Operations Center program; (10) $65,000,000 to accelerate the modernization of nuclear command, control, and communications; (11) $210,300,000 for the increased production of MH-139 helicopters; and (12) $150,000,000 to accelerate the development, procurement, and integration of military nuclear weapons delivery programs. (b) NNSA Appropriations.--In addition to amounts otherwise available, there are appropriated to the Administrator of the National Nuclear Security Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $200,000,000 to perform National Nuclear Security Administration Phase 1 studies pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (2) $540,000,000 to address deferred maintenance and repair needs of the National Nuclear Security Administration pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (3) $1,000,000,000 to accelerate the construction of National Nuclear Security Administration facilities pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (4) $400,000,000 to accelerate the development, procurement, and integration of the warhead for the nuclear- armed sea-launched cruise missile pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (5) $750,000,000 to accelerate primary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (6) $750,000,000 to accelerate secondary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (7) $120,000,000 to accelerate domestic uranium enrichment centrifuge deployment for defense purposes pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (8) $10,000,000 for National Nuclear Security Administration evaluation of spent fuel reprocessing technology; and (9) $115,000,000 for accelerating nuclear national security missions through artificial intelligence. SEC. 20009. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES TO IMPROVE CAPABILITIES OF UNITED STATES INDO- PACIFIC COMMAND. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $365,000,000 for Army exercises and operations in the Western Pacific area of operations; (2) $53,000,000 for Special Operations Command exercises and operations in the Western Pacific area of operations; (3) $47,000,000 for Marine Corps exercises and operations in Western Pacific area of operations; (4) $90,000,000 for Air Force exercises and operations in Western Pacific area of operations; (5) $532,600,000 for the Pacific Air Force biennial large- scale exercise; (6) $19,000,000 for the development of naval small craft capabilities; (7) $35,000,000 for military additive manufacturing capabilities in the United States Indo-Pacific Command area of operations west of the international dateline; (8) $450,000,000 for the development of airfields within the area of operations of United States Indo-Pacific Command; (9) $1,100,000,000 for development of infrastructure within the area of operations of United States Indo-Pacific Command; (10) $124,000,000 for mission networks for United States Indo-Pacific Command; (11) $100,000,000 for Air Force regionally based cluster pre-position base kits; (12) $115,000,000 for exploration and development of existing Arctic infrastructure; (13) $90,000,000 for the accelerated development of non- kinetic capabilities; (14) $20,000,000 for United States Indo-Pacific Command military exercises; (15) $143,000,000 for anti-submarine sonar arrays; (16) $30,000,000 for surveillance and reconnaissance capabilities for United States Africa Command; (17) $30,000,000 for surveillance and reconnaissance capabilities for United States Indo-Pacific Command; (18) $500,000,000 for the development, coordination, and deployment of economic competition effects within the Department of Defense; (19) $10,000,000 for the expansion of Department of Defense workforce for economic competition; (20) $1,000,000,000 for offensive cyber operations; (21) $500,000,000 for personnel and operations costs associated with forces assigned to United States Indo-Pacific Command; (22) $300,000,000 for the procurement of mesh network communications capabilities for Special Operations Command Pacific; (23) $850,000,000 for the replenishment of military articles; (24) $200,000,000 for acceleration of Guam Defense System program; (25) $68,000,000 for Space Force facilities improvements; (26) $150,000,000 for ground moving target indicator military satellites; (27) $528,000,000 for DARC and SILENTBARKER military space situational awareness programs; (28) $80,000,000 for Navy Operational Support Division; (29) $1,000,000,000 for the X-37B military spacecraft program; (30) $3,650,000,000 for the development, procurement, and integration of United States military satellites and the protection of United States military satellites. (31) $125,000,000 for the development, procurement, and integration of military space communications. (32) $350,000,000 for the development, procurement, and integration of military space command and control systems. SEC. 20010. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR IMPROVING THE READINESS OF THE DEPARTMENT OF DEFENSE. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $1,400,000,000 for a pilot program on OPN-8 maritime spares and repair rotable pool; (2) $700,000,000 for a pilot program on OPN-8 maritime spares and repair rotable pool for amphibious ships; (3) $2,118,000,000 for spares and repairs to keep Air Force aircraft mission capable; (4) $1,500,000,000 for Army depot modernization and capacity enhancement; (5) $2,000,000,000 for Navy depot and shipyard modernization and capacity enhancement; (6) $250,000,000 for Air Force depot modernization and capacity enhancement; (7) $1,640,000,000 for Special Operations Command equipment, readiness, and operations; (8) $500,000,000 for National Guard unit readiness; (9) $400,000,000 for Marine Corps readiness and capabilities; (10) $20,000,000 for upgrades to Marine Corps utility helicopters; (11) $310,000,000 for next-generation vertical lift, assault, and intra-theater aeromedical evacuation aircraft; (12) $75,000,000 for the procurement of anti-lock braking systems for Army wheeled transport vehicles; (13) $230,000,000 for the procurement of Army wheeled combat vehicles; (14) $63,000,000 for the development of advanced rotary- wing engines; (15) $241,000,000 for the development, procurement, and integration of Marine Corps amphibious vehicles; (16) $250,000,000 for the procurement of Army tracked combat transport vehicles; (17) $98,000,000 for additional Army light rotary-wing capabilities; (18) $1,500,000,000 for increased depot maintenance and shipyard maintenance activities; (19) $2,500,000,000 for Air Force facilities sustainment, restoration, and modernization; (20) $92,500,000 for the completion of Robotic Combat Vehicle prototyping; (21) $125,000,000 for Army operations; [[Page S3703]] (22) $10,000,000 for the Air Force Concepts, Development, and Management Office; and (23) $320,000,000 for Joint Special Operations Command. SEC. 20011. IMPROVING DEPARTMENT OF DEFENSE BORDER SUPPORT AND COUNTER-DRUG MISSIONS. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $1,000,000,000 for the deployment of military personnel in support of border operations, operations and maintenance activities in support of border operations, counter-narcotics and counter-transnational criminal organization mission support, the operation of national defense areas and construction in national defense areas, and the temporary detention of migrants on Department of Defense installations, in accordance with chapter 15 of title 10, United States Code. SEC. 20012. DEPARTMENT OF DEFENSE OVERSIGHT. In addition to amounts otherwise available, there is appropriated to the Inspector General of the Department of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available through September 30, 2029, to monitor Department of Defense activities for which funding is appropriated in this title, including-- (1) programs with mutual technological dependencies; (2) programs with related data management and data ownership considerations; and (3) programs particularly vulnerable to supply chain disruptions and long lead time components. SEC. 20013. MILITARY CONSTRUCTION PROJECTS AUTHORIZED. (a) Authorization of Appropriations.--Funds are hereby authorized to be appropriated for military construction, land acquisition, and military family housing functions of each military department (as defined in section 101(a) of title 10, United States Code) as specified in this title. (b) Spending Plan.--Not later than 30 days after the date of the enactment of this title, the Secretary of each military department shall submit to the Committees on Armed Services of the Senate and House of Representatives a detailed spending plan by project for all funds made available by this title to be expended on military construction projects. SEC. 20014. MULTI-YEAR OPERATIONAL PLAN. (a) In General.--Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense and the Administrator of the National Nuclear Security Administration shall submit to the Committees on Armed Services of the Senate and the House of Representatives a plan detailing how the funds appropriated to the Department of Defense and the National Nuclear Security Administration under the Act will be spent over the four-year period ending with fiscal year 2029. (b) Quarterly Updates.-- (1) In general.--Not later than the last day of each calendar quarter beginning during the applicable period, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the plan established under subsection (a), including-- (A) any updates to the plan; (B) progress made in implementing the plan; and (C) any changes in circumstances or challenges in implementing the plan. (2) Applicable period.--For purposes of paragraph (1), the applicable period is the period beginning one year after the date the plan required under subsection (a) is due and ending on September 30, 2029. (c) Reduction in Appropriation.-- (1) In general.--In the case of any failure to submit a plan required under subsection (a) or a report required under subsection (b) by the date specified in paragraph (2), the amounts made available to the Department of Defense under this Act shall be reduced by $100,000 for each day after such specified date that the report has not been submitted to Congress. (2) Specified date.--For purposes of the reduction in appropriations under paragraph (1), the specified date is the date that is 60 days after the date the plan or report is required to be submitted under subsection (a) or (b), as the case may be. TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS SEC. 30001. FUNDING CAP FOR THE BUREAU OF CONSUMER FINANCIAL PROTECTION. Section 1017(a)(2)(A)(iii) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497(a)(2)(A)(iii)) is amended by striking ``12'' and inserting ``6.5''. SEC. 30002. RESCISSION OF FUNDS FOR GREEN AND RESILIENT RETROFIT PROGRAM FOR MULTIFAMILY HOUSING. The unobligated balances of amounts made available under section 30002(a) of the Act entitled ``An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14'', approved August 16, 2022 (Public Law 117-169; 136 Stat. 2027) are rescinded. SEC. 30003. SECURITIES AND EXCHANGE COMMISSION RESERVE FUND. (a) In General.--Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d) is amended-- (1) by striking subsection (i); and (2) by redesignating subsections (j) and (k) as subsections (i) and (j), respectively. (b) Technical and Conforming Amendment.--Section 21F(g)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 78u- 6(g)(2)) is amended to read as follows: ``(a) Use of Fund.--The Fund shall be available to the Commission, without further appropriation or fiscal year limitation, for paying awards to whistleblowers as provided in subsection (b).''. (c) Transition Provision.--During the period beginning on the date of enactment of this Act and ending on October 1, 2025, the Securities and Exchange Commission may expend amounts in the Securities and Exchange Commission Reserve Fund that were obligated before the date of enactment of this Act for any program, project, or activity that is ongoing (as of the day before the date of enactment of this Act) in accordance with subsection (i) of section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d), as in effect on the day before the date of enactment of this Act. (d) Transfer of Remaining Amounts.--Effective on October 1, 2025, the obligated and unobligated balances of amounts in the Securities and Exchange Commission Reserve Fund shall be transferred to the general fund of the Treasury. (e) Closing of Account.--For the purposes of section 1555 of title 31, United States Code, the Securities and Exchange Commission Reserve Fund shall be considered closed, and thereafter shall not be available for obligation or expenditure for any purpose, upon execution of the transfer required under subsection (d). SEC. 30004. APPROPRIATIONS FOR DEFENSE PRODUCTION ACT. In addition to amounts otherwise available, there is appropriated for fiscal year 2025, out of amounts not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2027, to carry out the Defense Production Act (50 U.S.C. 4501 et seq.). TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION SEC. 40001. COAST GUARD MISSION READINESS. (a) In General.--Chapter 11 of title 14, United States Code, is amended by adding at the end the following: ``Subchapter V--Coast Guard Mission Readiness ``Sec. 1181. Special appropriations ``In addition to amounts otherwise available, there is appropriated to the Coast Guard for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $24,593,500,000, to remain available until September 30, 2029, notwithstanding paragraphs (1) and (2) of section 1105(a) and sections 1131, 1132, 1133, and 1156, to use expedited processes to procure or acquire new operational assets and systems, to maintain existing assets and systems, to design, construct, plan, engineer, and improve necessary shore infrastructure, and to enhance operational resilience for monitoring, search and rescue, interdiction, hardening of maritime approaches, and navigational safety, of which-- ``(1) $1,142,500,000 is provided for procurement and acquisition of fixed-wing aircraft, equipment related to such aircraft and training simulators and program management for such aircraft, to provide for security of the maritime border; ``(2) $2,283,000,000 is provided for procurement and acquisition of rotary-wing aircraft, equipment related to such aircraft and training simulators and program management for such aircraft, to provide for security of the maritime border; ``(3) $266,000,000 is provided for procurement and acquisition of long-range unmanned aircraft and base stations, equipment related to such aircraft and base stations, and program management for such aircraft and base stations, to provide for security of the maritime border; ``(4) $4,300,000,000 is provided for procurement of Offshore Patrol Cutters, equipment related to such cutters, and program management for such cutters, to provide operational presence and security of the maritime border and for interdiction of persons and controlled substances; ``(5) $1,000,000,000 is provided for procurement of Fast Response Cutters, equipment related to such cutters, and program management for such cutters, to provide operational presence and security of the maritime border and for interdiction of persons and controlled substances; ``(6) $4,300,000,000 is provided for procurement of Polar Security Cutters, equipment related to such cutters, and program management for such cutters, to ensure timely presence of the Coast Guard in the Arctic and Antarctic regions; ``(7) $3,500,000,000 is provided for procurement of Arctic Security Cutters, equipment related to such cutters, and program management for such cutters, to ensure timely presence of the Coast Guard in the Arctic and Antarctic regions; ``(8) $816,000,000 is provided for procurement of light and medium icebreaking cutters, and equipment relating to such cutters, from shipyards that have demonstrated success in the cost-effective application of design standards and in delivering, on schedule and within budget, vessels of a size and tonnage that are not less than the size and tonnage of the cutters described in this paragraph, and for program management for such cutters, to expand domestic icebreaking capacity; ``(9) $162,000,000 is provided for procurement of Waterways Commerce Cutters, equipment [[Page S3704]] related to such cutters, and program management for such cutters, to support aids to navigation, waterways and coastal security, and search and rescue in inland waterways; ``(10) $4,379,000,000 is provided for design, planning, engineering, recapitalization, construction, rebuilding, and improvement of, and program management for, shore facilities, of which-- ``(A) $425,000,000 is provided for design, planning, engineering, construction of, and program management for-- ``(i) the enlisted boot camp barracks and multi-use training center; and ``(ii) other related facilities at the enlisted boot camp; ``(B) $500,000,000 is provided for-- ``(i) construction, improvement, and dredging at the Coast Guard Yard; and ``(ii) acquisition of a floating drydock for the Coast Guard Yard; ``(C) not more than $2,729,500,000 is provided for homeports and hangars for cutters and aircraft for which funds are appropriated under paragraph (1) through (9); and ``(D) $300,000,000 is provided for homeporting of the existing polar icebreaker commissioned into service in 2025; ``(11) $2,200,000,000 is provided for aviation, cutter, and shore facility depot maintenance and maintenance of command, control, communication, computer, and cyber assets; ``(12) $170,000,000 is provided for improving maritime domain awareness on the maritime border, at United States ports, at land-based facilities and in the cyber domain; and ``(13) $75,000,000 is provided to contract the services of, acquire, or procure autonomous maritime systems.''. (b) Technical and Conforming Amendment.--The analysis for chapter 11 of title 14, United States Code, is amended by adding at the end the following: ``subchapter v--coast guard mission readiness ``1181. Special appropriations.''. SEC. 40002. SPECTRUM AUCTIONS. (a) Definitions.--In this section: (1) Assistant secretary.--The term ``Assistant Secretary'' means the Assistant Secretary of Commerce for Communications and Information. (2) Commission.--The term ``Commission'' means the Federal Communications Commission. (3) Covered band.--The term ``covered band''-- (A) except as provided in subparagraph (B), means the band of frequencies between 1.3 gigahertz and 10.5 gigahertz; and (B) does not include-- (i) the band of frequencies between 3.1 gigahertz and 3.45 gigahertz for purposes of auction, reallocation, modification, or withdrawal; or (ii) the band of frequencies between 7.4 gigahertz and 8.4 gigahertz for purposes of auction, reallocation, modification, or withdrawal. (4) Full-power commercial licensed use cases.--The term ``full-power commercial licensed use cases'' means flexible use wireless broadband services with base station power levels sufficient for high-power, high-density, and wide-area commercial mobile services, consistent with the service rules under part 27 of title 47, Code of Federal Regulations, or any successor regulations, for wireless broadband deployments throughout the covered band. (b) General Auction Authority.-- (1) Amendment.--Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)) is amended by striking ``grant a license or permit under this subsection shall expire March 9, 2023'' and all that follows and inserting the following: "complete a system of competitive bidding under this subsection shall expire September 30, 2034, except that, with respect to the electromagnetic spectrum-- `` ``(A) between the frequencies of 3.1 gigahertz and 3.45 gigahertz, such authority shall not apply; and ``(B) between the frequencies of 7.4 gigahertz and 8.4 gigahertz, such authority shall not apply.''. (2) Spectrum auctions.--The Commission shall grant licenses through systems of competitive bidding, before the expiration of the general auction authority of the Commission under section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by paragraph (1) of this subsection, for not less than 300 megahertz, including by completing a system of competitive bidding not later than 2 years after the date of enactment of this Act for not less than 100 megahertz in the band between 3.98 gigahertz and 4.2 gigahertz. (c) Identification for Reallocation.-- (1) In general.--The Assistant Secretary, in consultation with the Commission, shall identify 500 megahertz of frequencies in the covered band for reallocation to non- Federal use, shared Federal and non-Federal use, or a combination thereof, for full-power commercial licensed use cases, that-- (A) as of the date of enactment of this Act, are allocated for Federal use; and (B) shall be in addition to the 300 megahertz of frequencies for which the Commission grants licenses under subsection (b)(2). (2) Schedule.--The Assistant Secretary shall identify the frequencies under paragraph (1) according to the following schedule: (A) Not later than 2 years after the date of enactment of this Act, the Assistant Secretary shall identify not less than 200 megahertz of frequencies within the covered band. (B) Not later than 4 years after the date of enactment of this Act, the Assistant Secretary shall identify any remaining bandwidth required to be identified under paragraph (1). (3) Required analysis.-- (A) In general.--In determining under paragraph (1) which specific frequencies within the covered band to reallocate, the Assistant Secretary shall determine the feasibility of the reallocation of frequencies. (B) Requirements.--In conducting the analysis under subparagraph (A), the Assistant Secretary shall assess net revenue potential, relocation or sharing costs, as applicable, and the feasibility of reallocating specific frequencies, with the goal of identifying the best approach to maximize net proceeds of systems of competitive bidding for the Treasury, consistent with section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)). (d) Auctions.--The Commission shall grant licenses for the frequencies identified for reallocation under subsection (c) through systems of competitive bidding in accordance with the following schedule: (1) Not later than 4 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for not less than 200 megahertz of the frequencies. (2) Not later than 8 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for any frequencies identified under subsection (c) that remain to be auctioned after compliance with paragraph (1) of this subsection. (e) Limitation.--The President shall modify or withdraw any frequency proposed for reallocation under this section not later than 60 days before the commencement of a system of competitive bidding scheduled by the Commission with respect to that frequency, if the President determines that such modification or withdrawal is necessary to protect the national security of the United States. (f) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Department of Commerce for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available through September 30, 2034, to provide additional support to the Assistant Secretary to-- (1) conduct a timely spectrum analysis of the bands of frequencies-- (A) between 2.7 gigahertz and 2.9 gigahertz; (B) between 4.4 gigahertz and 4.9 gigahertz; and (C) between 7.25 gigahertz and 7.4 gigahertz; and (2) publish a biennial report, with the last report to be published not later than June 30, 2034, on the value of all spectrum used by Federal entities (as defined in section 113(l) of the National Telecommunications and Information Administration Organization Act (47 U.S.C. 923(l))), that assesses the value of bands of frequencies in increments of not more than 100 megahertz. SEC. 40003. AIR TRAFFIC CONTROL IMPROVEMENTS. (a) In General.--For the purpose of the acquisition, construction, sustainment, and improvement of facilities and equipment necessary to improve or maintain aviation safety, in addition to amounts otherwise made available, there is appropriated to the Administrator of the Federal Aviation Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $4,750,000,000 for telecommunications infrastructure modernization and systems upgrades; (2) $3,000,000,000 for radar systems replacement; (3) $500,000,000 for runway safety technologies, runway lighting systems, airport surface surveillance technologies, and to carry out section 347 of the FAA Reauthorization Act of 2024; (4) $300,000,000 for Enterprise Information Display Systems; (5) $80,000,000 to acquire and install not less than 50 Automated Weather Observing Systems, to acquire and install not less than 60 Visual Weather Observing Systems, to acquire and install not less than 64 weather camera sites, and to acquire and install weather stations; (6) $40,000,000 to carry out section 44745 of title 49, United States Code, (except for activities described in paragraph (5)); (7) $1,900,000,000 for necessary actions to construct a new air route traffic control center (in this subsection referred to as ``ARTCC''): Provided, That not more than 2 percent of such amount is used for planning or administrative purposes: Provided further, That at least 3 existing ARTCCs are divested and integrated into the newly constructed ARTCC; (8) $100,000,000 to conduct an ARTCC Realignment and Consolidation Effort under which at least 10 existing ARTCCs are closed or consolidated to facilitate recapitalization of ARTCC facilities owned and operated by the Federal Aviation Administration; (9) $1,000,000,000 to support recapitalization and consolidation of terminal radar approach control facilities (in this subsection referred to as ``TRACONs''), the analysis and identification of TRACONs for divestment, consolidation, or integration, planning, site selection, facility acquisition, and transition [[Page S3705]] activities and other appropriate activities for carrying out such divestment, consolidation, or integration, and the establishment of brand new TRACONs; (10) $350,000,000 for unstaffed infrastructure sustainment and replacement; (11) $50,000,000 to carry out section 961 of the FAA Reauthorization Act of 2024; (12) $300,000,000 to carry out section 619 of the FAA Reauthorization Act of 2024; (13) $50,000,000 to carry out section 621 of the FAA Reauthorization Act of 2024 and to deploy remote tower technology at untowered airports; and (14) $100,000,000 for air traffic controller advanced training technologies. (b) Quarterly Reporting.--Not later than 180 days after the date of enactment of this Act, and every 90 days thereafter, the Administrator of the Federal Aviation Administration shall submit to Congress a report that describes any expenditures under this section. SEC. 40004. SPACE LAUNCH AND REENTRY LICENSING AND PERMITTING USER FEES. (a) In General.--Chapter 509 of title 51, United States Code, is amended by adding at the end the following new section: ``Sec. 50924. Space launch and reentry licensing and permitting user fees ``(a) Fees.-- ``(1) In general.--The Secretary of Transportation shall impose a fee, which shall be deposited in the account established under subsection (b), on each launch or reentry carried out under a license or permit issued under section 50904 during 2026 or a subsequent year, in an amount equal to the lesser of-- ``(A) the amount specified in paragraph (2) for the year involved per pound of the weight of the payload; or ``(B) the amount specified in paragraph (3) for the year involved. ``(2) Paragraph (2) specified amount.--The amount specified in this paragraph is-- ``(A) for 2026, $0.25; ``(B) for 2027, $0.35; ``(C) for 2028, $0.50; ``(D) for 2029, $0.60; ``(E) for 2030, $0.75; ``(F) for 2031, $1; ``(G) for 2032, $1.25; ``(H) for 2033, $1.50; and ``(I) for 2034 and each subsequent year, the amount specified in this paragraph for the previous year increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) over the previous year. ``(3) Paragraph (3) specified amount.--The amount specified in this paragraph is-- ``(A) for 2026, $30,000; ``(B) for 2027, $40,000; ``(C) for 2028, $50,000; ``(D) for 2029, $75,000; ``(E) for 2030, $100,000; ``(F) for 2031, $125,000; ``(G) for 2032, $170,000; ``(H) for 2033, $200,000; and ``(I) for 2034 and each subsequent year, the amount specified in this paragraph for the previous year increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) over the previous year. ``(b) Office of Commercial Space Transportation Launch and Reentry Licensing and Permitting Fund.--There is established in the Treasury of the United States a separate account, which shall be known as the `Office of Commercial Space Transportation Launch and Reentry Licensing and Permitting Fund', for the purposes of expenses of the Office of Commercial Space Transportation of the Federal Aviation Administration and to carry out section 630(b) of the FAA Reauthorization Act of 2024. 70 percent of the amounts deposited into the fund shall be available for such purposes and shall be available without further appropriation and without fiscal year limitation.''. (b) Clerical Amendment.--The table of sections for chapter 509 of title 51, United States Code, is amended by inserting after the item relating to section 50923 the following: ``50924. Space launch and reentry licensing and permitting user fees.''. SEC. 40005. MARS MISSIONS, ARTEMIS MISSIONS, AND MOON TO MARS PROGRAM. (a) In General.--Chapter 203 of title 51, United States Code, is amended by adding at the end the following: ``Sec. 20306. Special appropriations for Mars missions, Artemis missions, and Moon to Mars program ``(a) In General.--In addition to amounts otherwise available, there is appropriated to the Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $9,995,000,000, to remain available until September 30, 2032, to use as follows: ``(1) $700,000,000, to be obligated not later than fiscal year 2026, for the procurement, using a competitively bid, firm fixed-price contract with a United States commercial provider (as defined in section 50101(7)), of a high- performance Mars telecommunications orbiter-- ``(A) that-- ``(i) is capable of providing robust, continuous communications for-- ``(I) a Mars sample return mission, as described in section 432(3)(C) of the National Aeronautics and Space Administration Transition Authorization Act of 2017 (51 U.S.C. 20302 note; Public Law 115-10); and ``(II) future Mars surface, orbital, and human exploration missions; ``(ii) supports autonomous operations, onboard processing, and extended mission duration capabilities; and ``(iii) is selected from among the commercial proposals that-- ``(I) received funding from the Administration in fiscal year 2024 or 2025 for commercial design studies for Mars Sample Return; and ``(II) proposed a separate, independently launched Mars telecommunication orbiter supporting an end-to-end Mars sample return mission; and ``(B) which shall be delivered to the Administration not later than December 31, 2028. ``(2) $2,600,000,000 to meet the requirements of section 20302(a) using the program of record known, as of the date of the enactment of this section, as `Gateway', and as described in section 10811(b)(2)(B)(iv) of the National Aeronautics and Space Administration Authorization Act of 2022 (51 U.S.C. 20302 note; Public Law 117-167), of which not less than $750,000,000 shall be obligated for each of fiscal years 2026, 2027, and 2028. ``(3) $4,100,000,000 for expenses related to meeting the requirements of section 10812 of the National Aeronautics and Space Administration Authorization Act of 2022 (51 U.S.C. 20301; Public Law 117-167) for the procurement, transportation, integration, operation, and other necessary expenses of the Space Launch System for Artemis Missions IV and V, of which not less than $1,025,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. ``(4) $20,000,000 for expenses related to the continued procurement of the multi-purpose crew vehicle described in section 303 of the National Aeronautics and Space Administration Authorization Act of 2010 (42 U.S.C. 18323), known as the `Orion', for use with the Space Launch System on the Artemis IV Mission and reuse in subsequent Artemis Missions, of which not less than $20,000,000 shall be obligated not later than fiscal year 2026. ``(5) $1,250,000,000 for expenses related to the operation of the International Space Station and for the purpose of meeting the requirement under section 503(a) of the National Aeronautics and Space Administration Authorization Act of 2010 (42 U.S.C. 18353(a)), of which not less than $250,000,000 shall be obligated for such expenses for each of fiscal years 2025, 2026, 2027, 2028, and 2029. ``(6) $1,000,000,000 for infrastructure improvements at the manned spaceflight centers of the Administration, of which not less than-- ``(A) $120,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 12641 (53 Fed. Reg. 18816; relating to designating certain facilities of the National Aeronautics and Space Administration in the State of Mississippi as the John C. Stennis Space Center); ``(B) $250,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 11129 (28 Fed. Reg. 12787; relating to designating certain facilities of the National Aeronautics and Space Administration and of the Department of Defense, in the State of Florida, as the John F. Kennedy Space Center); ``(C) $300,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in the Joint Resolution entitled `Joint Resolution to designate the Manned Spacecraft Center in Houston, Texas, as the ``Lyndon B. Johnson Space Center'' in honor of the late President', approved February 17, 1973 (Public Law 93-8; 87 Stat. 7); ``(D) $100,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 10870 (25 Fed. Reg. 2197; relating to designating the facilities of the National Aeronautics and Space Administration at Huntsville, Alabama, as the George C. Marshall Space Flight Center); ``(E) $30,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the Michoud Assembly Facility in New Orleans, Louisiana; and ``(F) $85,000,000 shall be obligated to carry out subsection (b), of which not less than $5,000,000 shall be obligated for the transportation of the space vehicle described in that subsection, with the remainder transferred not later than the date that is 18 months after the date of the enactment of this section to the entity designated under that subsection, for the purpose of construction of a facility to house the space vehicle referred to in that subsection. ``(7) $325,000,000 to fulfill contract number 80JSC024CA002 issued by the National Aeronautics and Space Administration on June 26, 2024. ``(b) Space Vehicle Transfer.-- ``(1) In general.--Not later than 30 days after the date of the enactment of this section, the Administrator shall identify a space vehicle described in paragraph (2) to be-- ``(A) transferred to a field center of the Administration that is involved in the administration of the Commercial Crew Program (as [[Page S3706]] described in section 302 of the National Aeronautics and Space Administration Transition Authorization Act of 2017 (51 U.S.C. 50111 note; Public Law 115-10)); and ``(B) placed on public exhibition at an entity within the Metropolitan Statistical Area where such center is located. ``(2) Space vehicle described.--A space vehicle described in this paragraph is a vessel that-- ``(A) has flown into space; ``(B) has carried astronauts; and ``(C) is selected with the concurrence of an entity designated by the Administrator. ``(3) Transfer.-- ``(A) In general.--Not later than 18 months after the date of the enactment of this section, the space vehicle identified under paragraph (1) shall be transferred to an entity designated by the Administrator. ``(B) Title.--Not later than 1 year after the date on which a space vehicle is identified under paragraph (1), the Federal Government shall, as applicable, transfer the title to the space vehicle to the entity designated by the Administrator. ``(C) Responsibility.--The transfer under this paragraph shall be carried out under the Administrator or acting Administrator. ``(c) Obligation of Funds.--Funds appropriated under subsection (a) shall be obligated as follows: ``(1) Not less than 50 percent of the total funds in subsection (a) shall be obligated not later than September 30, 2028. ``(2) 100 percent of funds shall be obligated not later than September 30, 2029. ``(3) All associated outlays shall occur not later than September 30, 2034.''. (b) Clerical Amendment.--The table of sections for chapter 203 of title 51, United States Code, is amended by adding at the end the following: ``20306. Special appropriations for Mars missions, Artemis missions, and Moon to Mars program.''. SEC. 40006. CORPORATE AVERAGE FUEL ECONOMY CIVIL PENALTIES. (a) In General.--Section 32912 of title 49, United States Code, is amended-- (1) in subsection (b), in the matter preceding paragraph (1), by striking ``$5'' and inserting ``$0.00''; and (2) in subsection (c)(1)(B), by striking ``$10'' and inserting ``$0.00''. (b) Effect; Applicability.--The amendments made by subsection (a) shall-- (1) take effect on the date of enactment of this section; and (2) apply to all model years of a manufacturer for which the Secretary of Transportation has not provided a notification pursuant to section 32903(b)(2)(B) of title 49, United States Code, specifying the penalty due for the average fuel economy of that manufacturer being less than the applicable standard prescribed under section 32902 of that title. SEC. 40007. PAYMENTS FOR LEASE OF METROPOLITAN WASHINGTON AIRPORTS. Section 49104(b) of title 49, United States Code, is amended to read as follows: ``(b) Payments.-- ``(1) In general.--Subject to paragraph (2), under the lease, the Airports Authority must pay to the general fund of the Treasury annually an amount, computed using the GNP Price Deflator-- ``(A) during the period from 1987 to 2026, equal to $3,000,000 in 1987 dollars; and ``(B) for 2027 and subsequent years, equal to $15,000,000 in 2027 dollars. ``(2) Renegotiation.--The Secretary and the Airports Authority shall renegotiate the level of lease payments at least once every 10 years to ensure that in no year the amount specified in paragraph (1)(B) is less than $15,000,000 in 2027 dollars.''. SEC. 40008. RESCISSION OF CERTAIN AMOUNTS FOR THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION. Any unobligated balances of amounts appropriated or otherwise made available by sections 40001, 40002, 40003, and 40004 of Public Law 117-169 (136 Stat. 2028) are hereby rescinded. SEC. 40009. REDUCTION IN ANNUAL TRANSFERS TO TRAVEL PROMOTION FUND. Subsection (d)(2)(B) of the Travel Promotion Act of 2009 (22 U.S.C. 2131(d)(2)(B)) is amended by striking ``$100,000,000'' and inserting ``$20,000,000''. SEC. 40010. TREATMENT OF UNOBLIGATED FUNDS FOR ALTERNATIVE FUEL AND LOW-EMISSION AVIATION TECHNOLOGY. Out of the amounts made available by section 40007(a) of title IV of Public Law 117-169 (49 U.S.C. 44504 note), any unobligated balances of such amounts are hereby rescinded. SEC. 40011. RESCISSION OF AMOUNTS APPROPRIATED TO PUBLIC WIRELESS SUPPLY CHAIN INNOVATION FUND. Of the unobligated balances of amounts made available under section 106(a) of the CHIPS Act of 2022 (Public Law 117-167; 136 Stat. 1392), $850,000,000 are permanently rescinded. SEC. 40012. SUPPORT FOR ARTIFICIAL INTELLIGENCE UNDER THE BROADBAND EQUITY, ACCESS, AND DEPLOYMENT PROGRAM. (a) In General.--Section 60102 of division F of Public Law 117-58 (47 U.S.C. 1702) is amended-- (1) in subsection (a)(2)-- (A) by redesignating subparagraphs (B) through (N) as subparagraphs (F) through (R), respectively; (B) by redesignating subparagraph (A) as subparagraph (D); (C) by inserting before subparagraph (D), as so redesignated, the following: ``(A) Artificial intelligence.--The term `artificial intelligence' has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401). ``(B) Artificial intelligence model.--The term `artificial intelligence model' means a software component of an information system that implements artificial intelligence technology and uses computational, statistical, or machine- learning techniques to produce outputs from a defined set of inputs. ``(C) Artificial intelligence system.--The term `artificial intelligence system' means any data system, software, hardware, application, tool, or utility that operates, in whole or in part, using artificial intelligence.''; (D) by inserting after subparagraph (D), as so redesignated, the following: ``(E) Automated decision system.--The term `automated decision system' means any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues a simplified output, including a score, classification, or recommendation, to materially influence or replace human decision making.''; and (E) by striking subparagraph (O), as so redesignated, and inserting the following: ``(O) Project.--The term `project' means an undertaking by a subgrantee under this section to construct and deploy infrastructure for the provision of-- ``(i) broadband service; or ``(ii) artificial intelligence models, artificial intelligence systems, or automated decision systems.''; (2) in subsection (b), by adding at the end the following: ``(5) Appropriation for fiscal year 2025.-- ``(A) In general.--In addition to any amounts otherwise appropriated to the Program, there is appropriated to the Assistant Secretary for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended, to carry out the Program. ``(B) Set-aside for artificial intelligence infrastructure master services agreements.--Of the amount appropriated under subparagraph (A), $25,000,000 shall be used by the Assistant Secretary for the purpose of negotiating master services agreements on behalf of subgrantees of an eligible entity or political subdivision to enable access to quantity purchasing and licensing discounts for the construction, acquisition, and deployment of infrastructure for the provision of artificial intelligence models, artificial intelligence systems, or automated decision systems funded under this section.''; (3) in subsection (f)-- (A) in paragraph (5), by striking ``and'' at the end; (B) by redesignating paragraph (6) as paragraph (7); and (C) by inserting after paragraph (5) the following: ``(6) the construction and deployment of infrastructure for the provision of artificial intelligence models, artificial intelligence systems, or automated decision systems; and''; (4) in subsection (g)(3), by striking subparagraph (B) and inserting the following: ``(B) may, in addition to other authority under applicable law, deobligate grant funds awarded to an eligible entity that-- ``(i) violates paragraph (2); ``(ii) demonstrates an insufficient level of performance, or wasteful or fraudulent spending, as defined in advance by the Assistant Secretary; or ``(iii) if obligated any funds made available under subsection (b)(5)(A), is not in compliance with subsection (q) or (r); and''; (5) in subsection (j)(1)-- (A) in subparagraph (A)-- (i) in clause (iii), by striking ``and'' at the end; (ii) by redesignating clause (iv) as clause (v); and (iii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r); and''; (B) in subparagraph (B)-- (i) in clause (iii), by striking ``and'' at the end; (ii) by redesignating clause (iv) as clause (v); and (iii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r); and''; and (C) in subparagraph (C)-- (i) by redesignating clauses (iv) and (v) as clauses (v) and (vi), respectively; and (ii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r);''; and (6) by adding at the end the following: ``(p) Receipt of Funds Conditioned on Temporary Pause and Efficiencies.--On and after the date of enactment of this subsection, no funds made available under subsection (b)(5)(A) may be obligated to an eligible entity or a political subdivision thereof that is not in compliance with subsections (q) and (r). ``(q) Temporary Pause.-- ``(1) In general.--Except as provided in paragraph (2), no eligible entity or political subdivision thereof to which funds made [[Page S3707]] available under subsection (b)(5)(A) are obligated on or after the date of enactment of this subsection may enforce, during the 10-year period beginning on the date of enactment of this subsection, any law or regulation of that eligible entity or a political subdivision thereof limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce. ``(2) Rule of construction.--Paragraph (1) may not be construed to prohibit the enforcement of any law or regulation-- ``(A) the primary purpose and effect of which is to-- ``(i) remove legal impediments to, or facilitate the deployment or operation of, an artificial intelligence model, artificial intelligence system, or automated decision system; or ``(ii) streamline licensing, permitting, routing, zoning, procurement, or reporting procedures in a manner that facilitates the adoption of artificial intelligence models, artificial intelligence systems, or automated decision systems; or ``(B) that does not impose any substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirement on artificial intelligence models, artificial intelligence systems, or automated decision systems unless that requirement is imposed under-- ``(i) Federal law; or ``(ii) a generally applicable law, such as a body of common law; and ``(C) that does not impose a fee or bond unless-- ``(i) the fee or bond is reasonable and cost-based; and ``(ii) under the fee or bond, artificial intelligence models, artificial intelligence systems, and automated decision systems are treated in the same manner as other models and systems that perform comparable functions. ``(r) Master Services Agreements.--An eligible entity, or political subdivision thereof, to which funds made available under subsection (b)(5)(A) are obligated on or after the date of enactment of this subsection shall certify to the Assistant Secretary either that-- ``(1) each subgrantee of the eligible entity or political subdivision is utilizing applicable master services agreements negotiated using amounts made available under subsection (b)(5)(B); or ``(2) each contract, license, purchase order, or services agreement entered into, procured, or made by a subgrantee of the eligible entity or political subdivision for purposes described in subsection (b)(5)(B) is at least as cost- effective as the terms of executable master services agreements, as applicable, negotiated by the Assistant Secretary using amounts made available under subsection (b)(5)(B).''. (b) Technical and Conforming Amendments.--Section 60102(a)(1) of division F of Public Law 117-58 (47 U.S.C. 1702(a)(1)) is amended-- (1) in subparagraph (B), by striking ``a project'' and inserting ``a project described in subsection (a)(2)(O)(i)''; and (2) in subparagraph (D), by striking ``a project'' and inserting ``a project described in subsection (a)(2)(O)(i)''. TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES Subtitle A--Oil and Gas Leasing SEC. 50101. ONSHORE OIL AND GAS LEASING. (a) Repeal of Inflation Reduction Act Provisions.-- (1) Onshore oil and gas royalty rates.--Subsection (a) of section 50262 of Public Law 117-169 (136 Stat. 2056) is repealed, and any provision of law amended or repealed by that subsection is restored or revived as if that subsection had not been enacted into law. (2) Noncompetitive leasing.--Subsection (e) of section 50262 of Public Law 117-169 (136 Stat. 2057) is repealed, and any provision of law amended or repealed by that subsection is restored or revived as if that subsection had not been enacted into law. (b) Requirement to Immediately Resume Onshore Oil and Gas Lease Sales.-- (1) In general.--The Secretary of the Interior shall immediately resume quarterly onshore oil and gas lease sales in compliance with the Mineral Leasing Act (30 U.S.C. 181 et seq.). (2) Requirement.--The Secretary of the Interior shall ensure-- (A) that any oil and gas lease sale required under paragraph (1) is conducted immediately on completion of all applicable scoping, public comment, and environmental analysis requirements under the Mineral Leasing Act (30 U.S.C. 181 et seq.) and the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and (B) that the processes described in subparagraph (A) are conducted in a timely manner to ensure compliance with subsection (b)(1). (3) Lease of oil and gas lands.--Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C. 226(b)(1)(A)), as amended by subsection (a), is amended by inserting ``For purposes of the previous sentence, the term `eligible lands' means all lands that are subject to leasing under this Act and are not excluded from leasing by a statutory prohibition, and the term `available', with respect to eligible lands, means those lands that have been designated as open for leasing under a land use plan developed under section 202 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712) and that have been nominated for leasing through the submission of an expression of interest, are subject to drainage in the absence of leasing, or are otherwise designated as available pursuant to regulations adopted by the Secretary.'' after ``sales are necessary.''. (c) Quarterly Lease Sales.-- (1) In general.--In accordance with the Mineral Leasing Act (30 U.S.C. 181 et seq.), each fiscal year, the Secretary of the Interior shall conduct a minimum of 4 oil and gas lease sales of available land in each of the following States: (A) Wyoming. (B) New Mexico. (C) Colorado. (D) Utah. (E) Montana. (F) North Dakota. (G) Oklahoma. (H) Nevada. (I) Alaska. (2) Requirement.--In conducting a lease sale under paragraph (1) in a State described in that paragraph, the Secretary of the Interior-- (A) shall offer not less than 50 percent of available parcels nominated for oil and gas development under the applicable resource management plan in effect for relevant Bureau of Land Management resource management areas within the applicable State; and (B) shall not restrict the parcels offered to 1 Bureau of Land Management field office within the applicable State unless all nominated parcels are located within the same Bureau of Land Management field office. (3) Replacement sales.--The Secretary of the Interior shall conduct a replacement sale during the same fiscal year if-- (A) a lease sale under paragraph (1) is canceled, delayed, or deferred, including for a lack of eligible parcels; or (B) during a lease sale under paragraph (1) the percentage of acreage that does not receive a bid is equal to or greater than 25 percent of the acreage offered. (d) Mineral Leasing Act Reforms.--Section 17 of the Mineral Leasing Act (30 U.S.C. 226), as amended by subsection (a), is amended-- (1) by striking the section designation and all that follows through the end of subsection (a) and inserting the following: ``SEC. 17. LEASING OF OIL AND GAS PARCELS. ``(a) Leasing Authorized.-- ``(1) In general.--Any parcel of land subject to disposition under this Act that is known or believed to contain oil or gas deposits shall be made available for leasing, subject to paragraph (2), by the Secretary of the Interior, not later than 18 months after the date of receipt by the Secretary of an expression of interest in leasing the applicable parcel of land available for disposition under this section, if the Secretary determines that the parcel of land is open to oil or gas leasing under the approved resource management plan applicable to the planning area in which the parcel of land is located that is in effect on the date on which the expression of interest was submitted to the Secretary (referred to in this subsection as the `approved resource management plan'). ``(2) Resource management plans.-- ``(A) Lease terms and conditions.--A lease issued by the Secretary under this section with respect to an applicable parcel of land made available for leasing under paragraph (1)-- ``(i) shall be subject to the terms and conditions of the approved resource management plan; and ``(ii) may not require any stipulations or mitigation requirements not included in the approved resource management plan. ``(B) Effect of amendment.--The initiation of an amendment to an approved resource management plan shall not prevent or delay the Secretary from making the applicable parcel of land available for leasing in accordance with that approved resource management plan if the other requirements of this section have been met, as determined by the Secretary.''; (2) in subsection (p), by adding at the end the following: ``(4) Term.--A permit to drill approved under this subsection shall be valid for a single, non-renewable 4-year period beginning on the date that the permit to drill is approved.''; and (3) by striking subsection (q) and inserting the following: ``(q) Commingling of Production.--The Secretary of the Interior shall approve applications allowing for the commingling of production from 2 or more sources (including the area of an oil and gas lease, the area included in a drilling spacing unit, a unit participating area, a communitized area, or non-Federal property) before production reaches the point of royalty measurement regardless of ownership, the royalty rates, and the number or percentage of acres for each source if the applicant agrees to install measurement devices for each source, utilize an allocation method that achieves volume measurement uncertainty levels within plus or minus 2 percent during the production phase reported on a monthly basis, or utilize an approved periodic well testing methodology. Production from multiple oil and gas leases, drilling spacing units, communitized areas, or participating areas from a single wellbore shall be considered a single source. Nothing in this subsection shall prevent the Secretary of the Interior from continuing the current practice of exercising discretion to authorize higher percentage volume measurement uncertainty levels if appropriate [[Page S3708]] technical and economic justifications have been provided.''. SEC. 50102. OFFSHORE OIL AND GAS LEASING. (a) Lease Sales.-- (1) Gulf of america region.-- (A) In general.--Notwithstanding the 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Program (and any successor leasing program that does not satisfy the requirements of this section), in addition to lease sales which may be held under that program, and except within areas subject to existing oil and gas leasing moratoria, the Secretary of the Interior shall conduct a minimum of 30 region-wide oil and gas lease sales, in a manner consistent with the schedule described in subparagraph (B), in the region identified in the map depicting lease terms and economic conditions accompanying the final notice of sale of the Bureau of Ocean Energy Management entitled ``Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254'' (85 Fed. Reg. 8010 (February 12, 2020)). (B) Timing requirement.--Of the not fewer than 30 region- wide lease sales required under this paragraph, the Secretary of the Interior shall-- (i) hold not fewer than 1 lease sale in the region described in subparagraph (A) by December 15, 2025; (ii) hold not fewer than 2 lease sales in that region in each of calendar years 2026 through 2039, 1 of which shall be held by March 15 of the applicable calendar year and 1 of which shall be held after March 15 but not later than August 15 of the applicable calendar year; and (iii) hold not fewer than 1 lease sale in that region in calendar year 2040, which shall be held by March 15, 2040. (2) Alaska region.-- (A) In general.--The Secretary of the Interior shall conduct a minimum of 6 offshore lease sales, in a manner consistent with the schedule described in subparagraph (B), in the Cook Inlet Planning Area as identified in the 2017- 2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled ``Notice of Availability of the 2017-2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program'' (81 Fed. Reg. 84612 (November 23, 2016))). (B) Timing requirement.--Of the not fewer than 6 lease sales required under this paragraph, the Secretary of the Interior shall hold not fewer than 1 lease sale in the area described in subparagraph (A) in each of calendar years 2026 through 2028, and in each of calendar years 2030 through 2032, by March 15 of the applicable calendar year. (b) Requirements.-- (1) Terms and stipulations for gulf of america sales.--In conducting lease sales under subsection (a)(1), the Secretary of the Interior-- (A) shall, subject to subparagraph (C), offer the same lease form, lease terms, economic conditions, and lease stipulations 4 through 9 as contained in the final notice of sale of the Bureau of Ocean Energy Management entitled ``Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254'' (85 Fed. Reg. 8010 (February 12, 2020)); (B) may update lease stipulations 1 through 3 and 10 described in that final notice of sale to reflect current conditions for lease sales conducted under subsection (a)(1); (C) shall set the royalty rate at not less than 12\1/2\ percent but not greater than 16\2/3\ percent; and (D) shall, for a lease in water depths of 800 meters or deeper issued as a result of a sale, set the primary term for 10 years. (2) Terms and stipulations for alaska region sales.-- (A) In general.--In conducting lease sales under subsection (a)(2), the Secretary of the Interior shall offer the same lease form, lease terms, economic conditions, and stipulations as contained in the final notice of sale of the Bureau of Ocean Energy Management entitled ``Cook Inlet Planning Area Outer Continental Shelf Oil and Gas Lease Sale 244'' (82 Fed. Reg. 23291 (May 22, 2017)). (B) Revenue sharing.--Notwithstanding section 8(g) and section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g), 1338), and beginning in fiscal year 2034, of the bonuses, rents, royalties, and other revenues derived from lease sales conducted under subsection (a)(2)-- (i) 70 percent shall be paid to the State of Alaska; and (ii) 30 percent shall be deposited in the Treasury and credited to miscellaneous receipts. (3) Area offered for lease.-- (A) Gulf of america region.--For each offshore lease sale conducted under subsection (a)(1), the Secretary of the Interior shall-- (i) offer not fewer than 80,000,000 acres; or (ii) if there are fewer than 80,000,000 acres that are unleased and available, offer all unleased and available acres. (B) Alaska region.--For each offshore lease sale conducted under subsection (a)(2), the Secretary of the Interior shall-- (i) offer not fewer than 1,000,000 acres; or (ii) if there are fewer than 1,000,000 acres that are unleased and available, offer all unleased and available acres. (c) Offshore Commingling.--The Secretary of the Interior shall approve a request of an operator to commingle oil or gas production from multiple reservoirs within a single wellbore completed on the outer Continental Shelf in the Gulf of America Region unless the Secretary of the Interior determines that conclusive evidence establishes that the commingling-- (1) could not be conducted by the operator in a safe manner; or (2) would result in an ultimate recovery from the applicable reservoirs to be reduced in comparison to the expected recovery of those reservoirs if they had not been commingled. (d) Offshore Oil and Gas Royalty Rate.-- (1) Repeal.--Section 50261 of Public Law 117-169 (136 Stat. 2056) is repealed, and any provision of law amended or repealed by that section is restored or revived as if that section had not been enacted into law. (2) Royalty rate.--Section 8(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)) (as amended by paragraph (1)) is amended-- (A) in subparagraph (A), by striking ``not less than 12\1/ 2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''; (B) in subparagraph (C), by striking ``not less than 12\1/ 2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''; (C) in subparagraph (F), by striking ``no less than 12\1/2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''; and (D) in subparagraph (H), by striking ``no less than 12 and \1/2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''. (e) Limitations on Amount of Distributed Qualified Outer Continental Shelf Revenues.--Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) is amended-- (1) in subparagraph (B), by striking ``and'' at the end; (2) in subparagraph (C), by striking ``2055.'' and inserting ``2024;''; and (3) by adding at the end the following: ``(D) $650,000,000 for each of fiscal years 2025 through 2034; and ``(E) $500,000,000 for each of fiscal years 2035 through 2055.''. SEC. 50103. ROYALTIES ON EXTRACTED METHANE. Section 50263 of Public Law 117-169 (30 U.S.C. 1727) is repealed. SEC. 50104. ALASKA OIL AND GAS LEASING. (a) Definitions.--In this section: (1) Coastal plain.--The term ``Coastal Plain'' has the meaning given the term in section 20001(a) of Public Law 115- 97 (16 U.S.C. 3143 note). (2) Oil and gas program.--The term ``oil and gas program'' means the oil and gas program established under section 20001(b)(2) of Public Law 115-97 (16 U.S.C. 3143 note). (3) Secretary.--The term ``Secretary'' means the Secretary of the Interior, acting through the Bureau of Land Management. (b) Lease Sales Required.-- (1) In general.--Subject to paragraph (3), in addition to the lease sales required under section 20001(c)(1)(A) of Public Law 115-97 (16 U.S.C. 3143 note), the Secretary shall conduct not fewer than 4 lease sales area-wide under the oil and gas program by not later than 10 years after the date of enactment of this Act. (2) Terms and conditions.--In conducting lease sales under paragraph (1), the Secretary shall offer the same terms and conditions as contained in the record of decision described in the notice of availability of the Bureau of Land Management entitled ``Notice of Availability of the Record of Decision for the Final Environmental Impact Statement for the Coastal Plain Oil and Gas Leasing Program, Alaska'' (85 Fed. Reg. 51754 (August 21, 2020)). (3) Sale acreages; schedule.-- (A) Acreages.--In conducting the lease sales required under paragraph (1), the Secretary shall offer for lease under the oil and gas program-- (i) not fewer than 400,000 acres area-wide in each lease sale; and (ii) those areas that have the highest potential for the discovery of hydrocarbons. (B) Schedule.--The Secretary shall offer-- (i) the initial lease sale under paragraph (1) not later than 1 year after the date of enactment of this Act; (ii) a second lease sale under paragraph (1) not later than 3 years after the date of enactment of this Act; (iii) a third lease sale under paragraph (1) not later than 5 years after the date of enactment of this Act; and (iv) a fourth lease sale under paragraph (1) not later than 7 years after the date of enactment of this Act. (4) Rights-of-way.--Section 20001(c)(2) of Public Law 115- 97 (16 U.S.C. 3143 note) shall apply to leases awarded under this subsection. (5) Surface development.--Section 20001(c)(3) of Public Law 115-97 (16 U.S.C. 3143 note) shall apply to leases awarded under this subsection. (c) Receipts.--Notwithstanding section 35 of the Mineral Leasing Act (30 U.S.C. 191) and section 20001(b)(5) of Public Law 115-97 (16 U.S.C. 3143 note), of the amount of adjusted bonus, rental, and royalty receipts derived from the oil and gas program and operations on the Coastal Plain pursuant to this section-- (1)(A) for each of fiscal years 2025 through 2033, 50 percent shall be paid to the State of Alaska; and [[Page S3709]] (B) for fiscal year 2034 and each fiscal year thereafter, 70 percent shall be paid to the State of Alaska; and (2) the balance shall be deposited into the Treasury as miscellaneous receipts. SEC. 50105. NATIONAL PETROLEUM RESERVE-ALASKA. (a) Definitions.--In this section: (1) NPR-A final environmental impact statement.--The term ``NPR-A final environmental impact statement'' means the final environmental impact statement published by the Bureau of Land Management entitled ``National Petroleum Reserve in Alaska Integrated Activity Plan Final Environmental Impact Statement'' and dated June 2020, including the errata sheet dated October 6, 2020, and excluding the errata sheet dated September 20, 2022. (2) NPR-A record of decision.--The term ``NPR-A record of decision'' means the record of decision published by the Bureau of Land Management entitled ``National Petroleum Reserve in Alaska Integrated Activity Plan Record of Decision'' and dated December 2020. (3) Program.--The term ``Program'' means the competitive oil and gas leasing, exploration, development, and production program established under section 107 of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a). (4) Secretary.--The term ``Secretary'' means the Secretary of the Interior. (b) Restoration of NPR-A Oil and Gas Leasing Program.-- Effective beginning on the date of enactment of this Act-- (1) the Secretary shall expeditiously restore and resume oil and gas lease sales under the Program for domestic energy production and Federal revenue, subject to the requirements of this section; and (2) the final rule of the Bureau of Land Management entitled ``Management and Protection of the National Petroleum Reserve in Alaska'' (89 Fed. Reg. 38712 (May 7, 2024)) shall have no force or effect until January 1, 2035. (c) Resumption of NPR-A Lease Sales.-- (1) In general.--Subject to paragraph (2), the Secretary shall conduct not fewer than 5 lease sales under the Program by not later than 10 years after the date of enactment of this Act. (2) Sales acreages; schedule.-- (A) Acreages.--In conducting the lease sales required under paragraph (1), the Secretary shall offer not fewer than 4,000,000 acres in each lease sale. (B) Schedule.--The Secretary shall offer-- (i) an initial lease sale under paragraph (1) not later than 1 year after the date of enactment of this Act; and (ii) an additional lease sale under paragraph (1) not later than every 2 years after the date of enactment of this Act. (d) Terms and Stipulations for NPR-A Lease Sales.--In conducting lease sales under subsection (c), the Secretary shall offer the same lease form, lease terms, economic conditions, and stipulations as described in the NPR-A final environmental impact statement and the NPR-A record of decision. (e) Receipts.--Section 107(l) of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a(l)) is amended-- (1) by striking ``All receipts from'' and inserting the following: ``(1) In general.--Except as provided in paragraph (2), all receipts from''; and (2) by adding at the end the following: ``(2) Percent share for fiscal year 2034 and thereafter.-- Beginning in fiscal year 2034, of the receipts from sales, rentals, bonuses, and royalties on leases issued pursuant to this section after the date of enactment of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress)-- ``(A) 70 percent shall be paid to the State of Alaska; and ``(B) 30 percent shall be paid into the Treasury of the United States.''. Subtitle B--Mining SEC. 50201. COAL LEASING. (a) Definitions.--In this section: (1) Coal lease.--The term ``coal lease'' means a lease entered into by the United States as lessor, through the Bureau of Land Management, and an applicant on Bureau of Land Management Form 3400-012 (or a successor form that contains the terms of a coal lease). (2) Qualified application.--The term ``qualified application'' means an application for a coal lease pending as of the date of enactment of this Act or submitted within 90 days thereafter under the lease by application program administered by the Bureau of Land Management pursuant to the Mineral Leasing Act (30 U.S.C. 181 et seq.) for which any required environmental review has commenced or the Director of the Bureau of Land Management determines can commence within 90 days after receiving the application. (b) Coal Leasing Activities.--Not later than 90 days after the date of enactment of this Act, the Secretary of the Interior-- (1) shall-- (A) with respect to each qualified application-- (i) if not previously published for public comment, publish any required environmental review; (ii) establish the fair market value of the applicable coal tract; (iii) hold a lease sale with respect to the applicable coal tract; and (iv) identify the highest bidder at or above the fair market value and take all other intermediate actions necessary to identify the winning bidder and grant the qualified application; and (2) may-- (A) with respect to a previously issued coal lease, grant any additional approvals of the Department of the Interior required for mining activities to commence; and (B) after completing the actions required by clauses (i) through (iv) of paragraph (1)(A), grant the qualified application and issue the applicable lease to the person that submitted the qualified application if that person submitted the winning bid in the lease sale held under clause (iii) of paragraph (1)(A). SEC. 50202. COAL ROYALTY. (a) Rate.--Section 7(a) of the Mineral Leasing Act (30 U.S.C. 207(a)) is amended, in the fourth sentence, by striking ``12\1/2\ per centum'' and inserting ``12\1/2\ percent, except such amount shall be not more than 7 percent during the period that begins on the date of enactment of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress) and ends September 30, 2034,''. (b) Applicability to Existing Leases.--The amendment made by subsection (a) shall apply to a coal lease-- (1) issued under section 2 of the Mineral Leasing Act (30 U.S.C. 201) before, on, or after the date of the enactment of this Act; and (2) that has not been terminated. (c) Advance Royalties.--With respect to a lease issued under section 2 of the Mineral Leasing Act (30 U.S.C. 201) for which the lessee has paid advance royalties under section 7(b) of that Act (30 U.S.C. 207(b)), the Secretary of the Interior shall provide to the lessee a credit for the difference between the amount paid by the lessee in advance royalties for the lease before the date of the enactment of this Act and the amount the lessee would have been required to pay if the amendment made by subsection (a) had been made before the lessee paid advance royalties for the lease. SEC. 50203. LEASES FOR KNOWN RECOVERABLE COAL RESOURCES. Notwithstanding section 2(a)(3)(A) of the Mineral Leasing Act (30 U.S.C. 201(a)(3)(A)) and section 202(a) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712(a)), not later than 90 days after the date of enactment of this Act, the Secretary of the Interior shall make available for lease known recoverable coal resources of not less than 4,000,000 additional acres on Federal land located in the 48 contiguous States and Alaska subject to the jurisdiction of the Secretary, but which shall not include any Federal land within-- (1) a National Monument; (2) a National Recreation Area; (3) a component of the National Wilderness Preservation System; (4) a component of the National Wild and Scenic Rivers System; (5) a component of the National Trails System; (6) a National Conservation Area; (7) a unit of the National Wildlife Refuge System; (8) a unit of the National Fish Hatchery System; or (9) a unit of the National Park System. SEC. 50204. AUTHORIZATION TO MINE FEDERAL COAL. (a) Authorization.--In order to provide access to coal reserves in adjacent State or private land that without an authorization could not be mined economically, Federal coal reserves located in Federal land subject to a mining plan previously approved by the Secretary of the Interior as of the date of enactment of this Act and adjacent to coal reserves in adjacent State or private land are authorized to be mined. (b) Requirement.--Not later than 90 days after the date of enactment of this Act, the Secretary of the Interior shall, without substantial modification, take such steps as are necessary to authorize the mining of Federal land described in subsection (a). (c) NEPA.--Nothing in this section shall prevent a review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Subtitle C--Lands SEC. 50301. SEC. 50302. TIMBER SALES AND LONG-TERM CONTRACTING FOR THE FOREST SERVICE AND THE BUREAU OF LAND MANAGEMENT. (a) Forest Service.-- (1) Definitions.--In this subsection: (A) Forest plan.--The term ``forest plan'' means a land and resource management plan prepared by the Secretary for a unit of the National Forest System pursuant to section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604). (B) National forest system.-- (i) In general.--The term ``National Forest System'' means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary. (ii) Exclusions.--The term ``National Forest System'' does not include any forest reserve not created from the public domain. (C) Secretary.--The term ``Secretary'' means the Secretary of Agriculture, acting through the Chief of the Forest Service. (2) Timber sales on public domain forest reserves.-- (A) In general.--For each of fiscal years 2026 through 2034, the Secretary shall sell [[Page S3710]] timber annually on National Forest System land in a total quantity that is not less than 250,000,000 board-feet greater than the quantity of board-feet sold in the previous fiscal year. (B) Limitation.--The timber sales under subparagraph (A) shall be subject to the maximum allowable sale quantity of timber or the projected timber sale quantity under the applicable forest plan in effect on the date of enactment of this Act. (3) Long-term contracting for the forest service.-- (A) Long-term contracting.--For the period of fiscal years 2025 through 2034, the Secretary shall enter into not fewer than 40 long-term timber sale contracts with private persons or other public or private entities under subsection (a) of section 14 of the National Forest Management Act of 1976 (16 U.S.C. 472a) for the sale of national forest materials (as defined in subsection (e)(1) of that section) in the National Forest System. (B) Contract length.--The period of a timber sale contract entered into to meet the requirement under subparagraph (A) shall be not less than 20 years, with options for extensions or renewals, as determined by the Secretary. (C) Receipts.--Any monies derived from a timber sale contract entered into to meet the requirements under subparagraphs (A) and (B) shall be deposited in the general fund of the Treasury. (b) Bureau of Land Management.-- (1) Definitions.--In this subsection: (A) Public lands.--The term ``public lands'' has the meaning given the term in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702). (B) Resource management plan.--The term ``resource management plan'' means a land use plan prepared for public lands under section 202 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712). (C) Secretary.--The term ``Secretary'' means the Secretary of the Interior, acting through the Director of the Bureau of Land Management. (2) Timber sales on public lands.-- (A) In general.--For each of fiscal years 2026 through 2034, the Secretary shall sell timber annually on public lands in a total quantity that is not less than 20,000,000 board-feet greater than the quantity of board-feet sold in the previous fiscal year. (B) Limitation.--The timber sales under subparagraph (A) shall be subject to the applicable resource management plan in effect on the date of enactment of this Act. (3) Long-term contracting for the bureau of land management.-- (A) Long-term contracting.--For the period of fiscal years 2025 through 2034, the Secretary shall enter into not fewer than 5 long-term contracts with private persons or other public or private entities under section 1 of the Act of July 31, 1947 (commonly known as the ``Materials Act of 1947'') (61 Stat. 681, chapter 406; 30 U.S.C. 601), for the disposal of vegetative materials described in that section on public lands. (B) Contract length.--The period of a contract entered into to meet the requirement under subparagraph (A) shall be not less than 20 years, with options for extensions or renewals, as determined by the Secretary. (C) Receipts.--Any monies derived from a contract entered into to meet the requirements under subparagraphs (A) and (B) shall be deposited in the general fund of the Treasury. SEC. 50303. RENEWABLE ENERGY FEES ON FEDERAL LAND. (a) Definitions.--In this section: (1) Annual adjustment factor.--The term ``Annual Adjustment Factor'' means 3 percent. (2) Encumbrance factor.--The term ``Encumbrance Factor'' means-- (A) 100 percent for a solar energy generation facility; and (B) an amount determined by the Secretary, but not less than 10 percent for a wind energy generation facility. (3) National forest system.-- (A) In general.--The term ``National Forest System'' means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary of Agriculture. (B) Exclusion.--The term ``National Forest System'' does not include any forest reserve not created from the public domain. (4) Per-acre rate.--The term ``Per-Acre Rate'', with respect to a right-of-way, means the average of the per-acre pastureland rental rates published in the Cash Rents Survey by the National Agricultural Statistics Service for the State in which the right-of-way is located over the 5 calendar-year period preceding the issuance or renewal of the right-of-way. (5) Project.--The term ``project'' means a system described in section 2801.9(a)(4) of title 43, Code of Federal Regulations (as in effect on the date of enactment of this Act). (6) Public land.--The term ``public land'' means-- (A) public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)); and (B) National Forest System land. (7) Renewable energy project.--The term ``renewable energy project'' means a project located on public land that uses wind or solar energy to generate energy. (8) Right-of-way.--The term ``right-of-way'' has the meaning given the term in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702). (9) Secretary.--The term ``Secretary'' means-- (A) the Secretary of the Interior, with respect to land controlled or administered by the Secretary of the Interior; and (B) the Secretary of Agriculture, with respect to National Forest System land. (b) Acreage Rent for Wind and Solar Rights-of-way.-- (1) In general.--Pursuant to section 504(g) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1764(g)), the Secretary shall, subject to paragraph (3) and not later than January 1 of each calendar year, collect from the holder of a right-of-way for a renewable energy project an acreage rent in an amount determined by the equation described in paragraph (2). (2) Calculation of acreage rent rate.-- (A) Equation.--The amount of an acreage rent collected under paragraph (1) shall be determined using the following equation: Acreage rent = A B ((1 + C)\D\K)). (B) Definitions.--For purposes of the equation described in subparagraph (A): (i) The letter ``A'' means the Per-Acre Rate. (ii) The letter ``B'' means the Encumbrance Factor. (iii) The letter ``C'' means the Annual Adjustment Factor. (iv) The letter ``D'' means the year in the term of the right-of-way. (3) Payment until production.--The holder of a right-of-way for a renewable energy project shall pay an acreage rent collected under paragraph (1) until the date on which energy generation begins. (c) Capacity Fees.-- (1) In general.--The Secretary shall, subject to paragraph (3), annually collect a capacity fee from the holder of a right-of-way for a renewable energy project based on the amount described in paragraph (2). (2) Calculation of capacity fee.--The amount of a capacity fee collected under paragraph (1) shall be equal to the greater of-- (A) an amount equal to the acreage rent described in subsection (b); and (B) 3.9 percent of the gross proceeds from the sale of electricity produced by the renewable energy project. (3) Multiple-use reduction factor.-- (A) Application.--The holder of a right-of-way for a wind energy generation project may request that the Secretary apply a multiple-use reduction factor of 10-percent to the amount of a capacity fee determined under paragraph (2) by submitting to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (B) Approval.--The Secretary may approve an application submitted under subparagraph (A) only if not less than 25 percent of the land within the area of the right-of-way is authorized for use, occupancy, or development with respect to an activity other than the generation of wind energy for the entirety of the year in which the capacity fee is collected. (C) Late determination.-- (i) In general.--If the Secretary approves an application under subparagraph (B) for a wind energy generation project after the date on which the holder of the right-of-way for the project begins paying a capacity fee, the Secretary shall apply the multiple-use reduction factor described in subparagraph (A) to the capacity fee for the first year beginning after the date of approval and each year thereafter for the period during which the right-of-way remains in effect. (ii) Refund.--The Secretary may not refund the holder of a right-of-way for the difference in the amount of a capacity fee paid in a previous year. (d) Late Payment Fee; Termination.-- (1) In general.--The Secretary may charge the holder of a right-of-way for a renewable energy project a late payment fee if the Secretary does not receive payment for the acreage rent under subsection (b) or the capacity fee under subsection (c) by the date that is 15 days after the date on which the payment was due. (2) Termination of right-of-way.--The Secretary may terminate a right-of-way for a renewable energy project if the Secretary does not receive payment for the acreage rent under subsection (b) or the capacity fee under subsection (c) by the date that is 90 days after the date on which the payment was due. SEC. 50304. RENEWABLE ENERGY REVENUE SHARING. (a) Definitions.--In this section: (1) County.--The term ``county'' includes a parish, township, borough, and any other similar, independent unit of local government. (2) Covered land.--The term ``covered land'' means land that is-- (A) public land administered by the Secretary; and (B) not excluded from the development of solar or wind energy under-- (i) a land use plan; or (ii) other Federal law. (3) National forest system.-- (A) In general.--The term ``National Forest System'' means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary of Agriculture. [[Page S3711]] (B) Exclusion.--The term ``National Forest System'' does not include any forest reserve not created from the public domain. (4) Public land.--The term ``public land'' means-- (A) public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)); and (B) National Forest System land. (5) Renewable energy project.--The term ``renewable energy project'' means a system described in section 2801.9(a)(4) of title 43, Code of Federal Regulations (as in effect on the date of enactment of this Act), located on covered land that uses wind or solar energy to generate energy. (6) Secretary.--The term ``Secretary'' means-- (A) the Secretary of the Interior, with respect to land controlled or administered by the Secretary of the Interior; and (B) the Secretary of Agriculture, with respect to National Forest System land. (b) Disposition of Revenue.-- (1) Disposition of revenues.--Beginning on January 1, 2026, the amounts collected from a renewable energy project as bonus bids, rentals, fees, or other payments under a right- of-way, permit, lease, or other authorization shall-- (A) be deposited in the general fund of the Treasury; and (B) without further appropriation or fiscal year limitation, be allocated as follows: (i) 25 percent shall be paid from amounts in the general fund of the Treasury to the State within the boundaries of which the revenue is derived. (ii) 25 percent shall be paid from amounts in the general fund of the Treasury to each county in a State within the boundaries of which the revenue is derived, to be allocated among each applicable county based on the percentage of county land from which the revenue is derived. (2) Payments to states and counties.-- (A) In general.--Amounts paid to States and counties under paragraph (1) shall be used in accordance with the requirements of section 35 of the Mineral Leasing Act (30 U.S.C. 191). (B) Payments in lieu of taxes.--A payment to a county under paragraph (1) shall be in addition to a payment in lieu of taxes received by the county under chapter 69 of title 31, United States Code. (C) Timing.--The amounts required to be paid under paragraph (1)(B) for an applicable fiscal year shall be made available in the fiscal year that immediately follows the fiscal year for which the amounts were collected. SEC. 50305. RESCISSION OF NATIONAL PARK SERVICE AND BUREAU OF LAND MANAGEMENT FUNDS. There are rescinded the unobligated balances of amounts made available by the following sections of Public Law 117- 169 (commonly known as the ``Inflation Reduction Act of 2022'') (136 Stat. 1818): (1) Section 50221 (136 Stat. 2052). (2) Section 50222 (136 Stat. 2052). (3) Section 50223 (136 Stat. 2052). SEC. 50306. CELEBRATING AMERICA'S 250TH ANNIVERSARY. In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior (acting through the Director of the National Park Service) for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $150,000,000 for events, celebrations, and activities surrounding the observance and commemoration of the 250th anniversary of the founding of the United States, to remain available through fiscal year 2028. Subtitle D--Energy SEC. 50401. STRATEGIC PETROLEUM RESERVE. (a) Energy Policy and Conservation Act Definitions.--In this section, the terms ``related facility'', ``storage facility'', and ``Strategic Petroleum Reserve'' have the meanings given those terms in section 152 of the Energy Policy and Conservation Act (42 U.S.C. 6232). (b) Appropriations.--In addition to amounts otherwise available, there is appropriated to the Department of Energy for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $218,000,000 for maintenance of, including repairs to, storage facilities and related facilities of the Strategic Petroleum Reserve; and (2) $171,000,000 to acquire, by purchase, petroleum products for storage in the Strategic Petroleum Reserve. (c) Repeal of Strategic Petroleum Reserve Drawdown and Sale Mandate.--Section 20003 of Public Law 115-97 (42 U.S.C. 6241 note) is repealed. SEC. 50402. REPEALS; RESCISSIONS. (a) Repeal and Rescission.--Section 50142 of Public Law 117-169 (136 Stat. 2044) (commonly known as the ``Inflation Reduction Act of 2022'') is repealed and the unobligated balance of amounts made available under that section (as in effect on the day before the date of enactment of this Act) is rescinded. (b) Rescissions.-- (1) In general.--The unobligated balances of amounts made available under the sections described in paragraph (2) are rescinded. (2) Sections described.--The sections referred to in paragraph (1) are the following sections of Public Law 117- 169 (commonly known as the ``Inflation Reduction Act of 2022''): (A) Section 50123 (42 U.S.C. 18795b). (B) Section 50141 (136 Stat. 2042). (C) Section 50144 (136 Stat. 2044). (D) Section 50145 (136 Stat. 2045). (E) Section 50151 (42 U.S.C. 18715). (F) Section 50152 (42 U.S.C. 18715a). (G) Section 50153 (42 U.S.C. 18715b). (H) Section 50161 (42 U.S.C. 17113b). SEC. 50403. ENERGY DOMINANCE FINANCING. (a) In General.--Section 1706 of the Energy Policy Act of 2005 (42 U.S.C. 16517) is amended-- (1) in subsection (a)-- (A) in paragraph (1), by striking ``or'' at the end; (B) in paragraph (2), by striking ``avoid'' and all that follows through the period at the end and inserting ``increase capacity or output; or''; and (C) by adding at the end the following: ``(3) 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.''; (2) by striking subsection (c); (3) by redesignating subsections (d) through (f) as subsections (c) through (e), respectively; (4) in subsection (c) (as so redesignated)-- (A) in paragraph (1), by adding ``and'' at the end; (B) by striking paragraph (2); and (C) by redesignating paragraph (3) as paragraph (2); (5) in subsection (e) (as so redesignated), by striking ``for--'' in the matter preceding paragraph (1) and all that follows through the period at the end of paragraph (2) and inserting ``for enabling the identification, leasing, development, production, processing, transportation, transmission, refining, and generation needed for energy and critical minerals.''; and (6) by adding at the end the following: ``(f) Funding.-- ``(1) In general.--In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available through September 30, 2028, to carry out activities under this section. ``(2) Administrative costs.--Of the amount made available under paragraph (1), the Secretary shall use not more than 3 percent for administrative expenses.''. (b) Commitment Authority.--Section 50144(b) of Public Law 117-169 (commonly known as the ``Inflation Reduction Act of 2022'') (136 Stat. 2045) is amended by striking ``2026'' and inserting ``2028''. SEC. 50404. TRANSFORMATIONAL ARTIFICIAL INTELLIGENCE MODELS. (a) Definitions.--In this section: (1) American science cloud.--The term ``American science cloud'' means a system of United States government, academic, and private sector programs and infrastructures utilizing cloud computing technologies to facilitate and support scientific research, data sharing, and computational analysis across various disciplines while ensuring compliance with applicable legal, regulatory, and privacy standards. (2) Artificial intelligence.--The term ``artificial intelligence'' has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401). (b) Transformational Models.--The Secretary of Energy shall-- (1) mobilize National Laboratories to partner with industry sectors within the United States to curate the scientific data of the Department of Energy across the National Laboratory complex so that the data is structured, cleaned, and preprocessed in a way that makes it suitable for use in artificial intelligence and machine learning models; and (2) initiate seed efforts for self-improving artificial intelligence models for science and engineering powered by the data described in paragraph (1). (c) Uses.-- (1) Microelectronics.--The curated data described in subsection (b)(1) may be used to rapidly develop next- generation microelectronics that have greater capabilities beyond Moore's law while requiring lower energy consumption. (2) New energy technologies.--The artificial intelligence models developed under subsection (b)(2) shall be provided to the scientific community through the American science cloud to accelerate innovation in discovery science and engineering for new energy technologies. (d) Appropriations.--There is appropriated, out of any funds in the Treasury not otherwise appropriated, $150,000,000, to remain available through September 30, 2026, to carry out this section. Subtitle E--Water SEC. 50501. WATER CONVEYANCE AND SURFACE WATER STORAGE ENHANCEMENT. In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior, acting through the Commissioner of Reclamation, for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $1,000,000,000, to remain available through September 30, 2034, for construction and associated activities that restore or increase the capacity or use of existing conveyance facilities constructed by the Bureau of Reclamation or for construction and associated activities that increase [[Page S3712]] the capacity of existing Bureau of Reclamation surface water storage facilities, in a manner as determined by the Secretary of the Interior, acting through the Commissioner of Reclamation: Provided, That, for the purposes of section 203 of the Reclamation Reform Act of 1982 (43 U.S.C. 390cc) or section 3404(a) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575; 106 Stat. 4708), a contract or agreement entered into pursuant to this section shall not be treated as a new or amended contract: Provided further, That none of the funds provided under this section shall be reimbursable or subject to matching or cost-sharing requirements. TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS SEC. 60001. RESCISSION OF FUNDING FOR CLEAN HEAVY-DUTY VEHICLES. The unobligated balances of amounts made available to carry out section 132 of the Clean Air Act (42 U.S.C. 7432) are rescinded. SEC. 60002. REPEAL OF GREENHOUSE GAS REDUCTION FUND. Section 134 of the Clean Air Act (42 U.S.C. 7434) is repealed and the unobligated balances of amounts made available to carry out that section (as in effect on the day before the date of enactment of this Act) are rescinded. SEC. 60003. RESCISSION OF FUNDING FOR DIESEL EMISSIONS REDUCTIONS. The unobligated balances of amounts made available to carry out section 60104 of Public Law 117-169 (136 Stat. 2067) are rescinded. SEC. 60004. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION. The unobligated balances of amounts made available to carry out section 60105 of Public Law 117-169 (136 Stat. 2067) are rescinded. SEC. 60005. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION AT SCHOOLS. The unobligated balances of amounts made available to carry out section 60106 of Public Law 117-169 (136 Stat. 2069) are rescinded. SEC. 60006. RESCISSION OF FUNDING FOR THE LOW EMISSIONS ELECTRICITY PROGRAM. The unobligated balances of amounts made available to carry out section 135 of the Clean Air Act (42 U.S.C. 7435) are rescinded. SEC. 60007. RESCISSION OF FUNDING FOR SECTION 211(O) OF THE CLEAN AIR ACT. The unobligated balances of amounts made available to carry out section 60108 of Public Law 117-169 (136 Stat. 2070) are rescinded. SEC. 60008. RESCISSION OF FUNDING FOR IMPLEMENTATION OF THE AMERICAN INNOVATION AND MANUFACTURING ACT. The unobligated balances of amounts made available to carry out section 60109 of Public Law 117-169 (136 Stat. 2071) are rescinded. SEC. 60009. RESCISSION OF FUNDING FOR ENFORCEMENT TECHNOLOGY AND PUBLIC INFORMATION. The unobligated balances of amounts made available to carry out section 60110 of Public Law 117-169 (136 Stat. 2071) are rescinded. SEC. 60010. RESCISSION OF FUNDING FOR GREENHOUSE GAS CORPORATE REPORTING. The unobligated balances of amounts made available to carry out section 60111 of Public Law 117-169 (136 Stat. 2072) are rescinded. SEC. 60011. RESCISSION OF FUNDING FOR ENVIRONMENTAL PRODUCT DECLARATION ASSISTANCE. The unobligated balances of amounts made available to carry out section 60112 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat. 2072) are rescinded. SEC. 60012. RESCISSION OF FUNDING FOR METHANE EMISSIONS AND WASTE REDUCTION INCENTIVE PROGRAM FOR PETROLEUM AND NATURAL GAS SYSTEMS. (a) Rescission.--The unobligated balances of amounts made available to carry out subsections (a) and (b) of section 136 of the Clean Air Act (42 U.S.C. 7436) are rescinded. (b) Period.--Section 136(g) of the Clean Air Act (42 U.S.C. 7436(g)) is amended by striking ``calendar year 2024'' and inserting ``calendar year 2034''. SEC. 60013. RESCISSION OF FUNDING FOR GREENHOUSE GAS AIR POLLUTION PLANS AND IMPLEMENTATION GRANTS. The unobligated balances of amounts made available to carry out section 137 of the Clean Air Act (42 U.S.C. 7437) are rescinded. SEC. 60014. RESCISSION OF FUNDING FOR ENVIRONMENTAL PROTECTION AGENCY EFFICIENT, ACCURATE, AND TIMELY REVIEWS. The unobligated balances of amounts made available to carry out section 60115 of Public Law 117-169 (136 Stat. 2077) are rescinded. SEC. 60015. RESCISSION OF FUNDING FOR LOW-EMBODIED CARBON LABELING FOR CONSTRUCTION MATERIALS. The unobligated balances of amounts made available to carry out section 60116 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat. 2077) are rescinded. SEC. 60016. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS. The unobligated balances of amounts made available to carry out section 138 of the Clean Air Act (42 U.S.C. 7438) are rescinded. SEC. 60017. RESCISSION OF FUNDING FOR ESA RECOVERY PLANS. The unobligated balances of amounts made available to carry out section 60301 of Public Law 117-169 (136 Stat. 2079) are rescinded. SEC. 60018. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE DATA COLLECTION. The unobligated balances of amounts made available to carry out section 60401 of Public Law 117-169 (136 Stat. 2079) are rescinded. SEC. 60019. RESCISSION OF NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM. The unobligated balances of amounts made available to carry out section 177 of title 23, United States Code, are rescinded. SEC. 60020. RESCISSION OF FUNDING FOR FEDERAL BUILDING ASSISTANCE. The unobligated balances of amounts made available to carry out section 60502 of Public Law 117-169 (136 Stat. 2083) are rescinded. SEC. 60021. RESCISSION OF FUNDING FOR LOW-CARBON MATERIALS FOR FEDERAL BUILDINGS. The unobligated balances of amounts made available to carry out section 60503 of Public Law 117-169 (136 Stat. 2083) are rescinded. SEC. 60022. RESCISSION OF FUNDING FOR GSA EMERGING AND SUSTAINABLE TECHNOLOGIES. The unobligated balances of amounts made available to carry out section 60504 of Public Law 117-169 (136 Stat. 2083) are rescinded. SEC. 60023. RESCISSION OF ENVIRONMENTAL REVIEW IMPLEMENTATION FUNDS. The unobligated balances of amounts made available to carry out section 178 of title 23, United States Code, are rescinded. SEC. 60024. RESCISSION OF LOW-CARBON TRANSPORTATION MATERIALS GRANTS. The unobligated balances of amounts made available to carry out section 179 of title 23, United States Code, are rescinded. SEC. 60025. JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS. (a) In General.--In addition to amounts otherwise available, there is appropriated for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $256,657,000, to remain available until September 30, 2029, for necessary expenses for capital repair, restoration, maintenance backlog, and security structures of the building and site of the John F. Kennedy Center for the Performing Arts. (b) Administrative Costs.--Of the amounts made available under subsection (a), not more than 3 percent may be used for administrative costs necessary to carry out this section. SEC. 60026. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS. Title I of the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) is amended by adding at the end the following: ``SEC. 112. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS. ``(a) Process.-- ``(1) Project sponsor.--A project sponsor that intends to pay a fee under this section for the preparation, or supervision of the preparation, of an environmental assessment or environmental impact statement for a project shall submit to the Council-- ``(A) a description of the project; and ``(B) a declaration of whether the project sponsor intends to prepare the environmental assessment or environmental impact statement under section 107(f). ``(2) Council on environmental quality.--Not later than 15 days after the date on which the Council receives information described in paragraph (1) from a project sponsor, the Council shall provide to the project sponsor notice of the amount of the fee to be paid under this section, as determined under subsection (b). ``(3) Payment of fee.--A project sponsor may pay a fee under this section after receipt of the notice described in paragraph (2). ``(4) Deadline for environmental reviews for which a fee is paid.--Notwithstanding section 107(g)(1)-- ``(A) an environmental assessment for which a fee is paid under this section shall be completed not later than 180 days after the date on which the fee is paid; and ``(B) an environmental impact statement for which a fee is paid under this section shall be completed not later than 1 year after the date of publication of the notice of intent to prepare the environmental impact statement. ``(b) Fee Amount.--The amount of a fee under this section shall be-- ``(1) 125 percent of the anticipated costs to prepare the environmental assessment or environmental impact statement; and ``(2) in the case of an environmental assessment or environmental impact statement to be prepared in whole or in part by a project sponsor under section 107(f), 125 percent of the anticipated costs to supervise preparation of, and, as applicable, prepare, the environmental assessment or environmental impact statement.''. TITLE VII--FINANCE Subtitle A--Tax SEC. 70001. REFERENCES TO THE INTERNAL REVENUE CODE OF 1986, ETC. (a) References.--Except as otherwise expressly provided, whenever in this title, an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (b) Certain Rules Regarding Effect of Rate Changes Not Applicable.--Section 15 of the Internal Revenue Code of 1986 shall not apply to any change in rate of tax by reason of any provision of, or amendment made by, this title. CHAPTER 1--PROVIDING PERMANENT TAX RELIEF FOR MIDDLE-CLASS FAMILIES AND WORKERS SEC. 70101. EXTENSION AND ENHANCEMENT OF REDUCED RATES. (a) In General.--Section 1(j) is amended-- (1) in paragraph (1), by striking ``, and before January 1, 2026'', and [[Page S3713]] (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Inflation Adjustment.--Section 1(j)(3)(B)(i) is amended by inserting ``solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins,'' before ``subsection (f)(3)''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70102. EXTENSION AND ENHANCEMENT OF INCREASED STANDARD DEDUCTION. (a) In General.--Section 63(c)(7) is amended-- (1) by striking ``, and before January 1, 2026'' in the matter preceding subparagraph (A), and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Additional Increase in Standard Deduction.--Paragraph (7) of section 63(c) is amended-- (1) by striking ``$18,000'' both places it appears in subparagraphs (A)(i) and (B)(ii) and inserting ``$23,625'', (2) by striking ``$12,000'' both places it appears in subparagraphs (A)(ii) and (B)(ii) and inserting ``$15,750'', (3) by striking ``2018'' in subparagraph (B)(ii) and inserting ``2025'', and (4) by striking ``2017'' in subparagraph (B)(ii)(II) and inserting ``2024''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70103. TERMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS OTHER THAN TEMPORARY SENIOR DEDUCTION. (a) In General.--Section 151(d)(5) is amended-- (1) by striking ``2018 through 2025'' in the heading and inserting ``beginning after 2017'', (2) by striking ``, and before January 1, 2026'', and (3) by adding at the end the following new subparagraph: ``(C) Deduction for seniors.-- ``(i) In general.--In the case of a taxable year beginning before January 1, 2029, there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual with respect to the taxpayer. ``(ii) Qualified individual.--For purposes of clause (i), the term `qualified individual' means-- ``(I) the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and ``(II) in the case of a joint return, the taxpayer's spouse, if such spouse has attained age 65 before the close of the taxable year. ``(iii) Limitation based on modified adjusted gross income.-- ``(I) In general.--In the case of any taxpayer for any taxable year, the $6,000 amount in clause (i) shall be reduced (but not below zero) by 6 percent of so much of the taxpayer's modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). ``(II) Modified adjusted gross income.--For purposes of this clause, the term `modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(iv) Social security number required.-- ``(I) In general.--Clause (i) shall not apply with respect to a qualified individual unless the taxpayer includes such qualified individual's social security number on the return of tax for the taxable year. ``(II) Social security number.--For purposes of subclause (I), the term `social security number' has the meaning given such term in section 24(h)(7). ``(v) Married individuals.--If the taxpayer is a married individual (within the meaning of section 7703), this subparagraph shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year.''. (b) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2) is amended by striking ``and'' at the end of subparagraph (U), by striking the period at the end of subparagraph (V) and inserting ``, and'', and by inserting after subparagraph (V) the following new subparagraph: ``(W) an omission of a correct social security number required under section 151(d)(5)(C) (relating to deduction for seniors).''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70104. EXTENSION AND ENHANCEMENT OF INCREASED CHILD TAX CREDIT. (a) Extension and Increase of Expanded Child Tax Credit.-- Section 24(h) is amended-- (1) in paragraph (1), by striking ``, and before January 1, 2026'', (2) in paragraph (2), by striking ``$2,000'' and inserting ``$2,200'', and (3) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Social Security Number Required.--Section 24(h)(7) is amended to read as follows: ``(7) Social security number required.-- ``(A) In general.--No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes on the return of tax for the taxable year-- ``(i) the taxpayer's social security number (or, in the case of a joint return, the social security number of at least 1 spouse), and ``(ii) the social security number of such qualifying child. ``(B) Social security number.--For purposes of this paragraph, the term `social security number' means a social security number issued to an individual by the Social Security Administration, but only if the social security number is issued-- ``(i) to a citizen of the United States or pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act, and ``(ii) before the due date for such return.''. (c) Inflation Adjustments.-- (1) In general.--Section 24(i) is amended to read as follows: ``(i) Inflation Adjustments.-- ``(1) Maximum amount of refundable credit.--In the case of a taxable year beginning after 2024, the $1,400 amount in subsection (h)(5) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `2017' for `2016' in subparagraph (A)(ii) thereof. ``(2) Special rule for adjustment of credit amount.--In the case of a taxable year beginning after 2025, the $2,200 amount in subsection (h)(2) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `2024' for `2016' in subparagraph (A)(ii) thereof. ``(3) Rounding.--If any increase under this subsection is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.''. (d) Conforming Amendment.--Section 24(h)(5) is amended to read as follows: ``(5) Maximum amount of refundable credit.--The amount determined under subsection (d)(1)(A) with respect to any qualifying child shall not exceed $1,400, and such subsection shall be applied without regard to paragraph (4) of this subsection.''. (e) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2)(I) is amended by striking ``section 24(e)'' and inserting ``section 24''. (f) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70105. EXTENSION AND ENHANCEMENT OF DEDUCTION FOR QUALIFIED BUSINESS INCOME. (a) Increase in Taxable Income Limitation Phase-in Amounts.-- (1) In general.--Subparagraph (B) of section 199A(b)(3) is amended by striking ``$50,000 ($100,000 in the case of a joint return)'' each place it appears and inserting ``$75,000 ($150,000 in the case of a joint return)''. (2) Conforming amendment.--Paragraph (3) of section 199A(d) is amended by striking ``$50,000 ($100,000 in the case of a joint return)'' each place it appears and inserting ``$75,000 ($150,000 in the case of a joint return)''. (b) Minimum Deduction for Active Qualified Business Income.-- (1) In general.--Subsection (i) of section 199A is amended to read as follows: ``(i) Minimum Deduction for Active Qualified Business Income.-- ``(1) In general.--In the case of an applicable taxpayer for any taxable year, the deduction allowed under subsection (a) for the taxable year shall be equal to the greater of-- ``(A) the amount of such deduction determined without regard to this subsection, or ``(B) $400. ``(2) Applicable taxpayer.--For purposes of this subsection-- ``(A) In general.--The term `applicable taxpayer' means, with respect to any taxable year, a taxpayer whose aggregate qualified business income with respect to all active qualified trades or businesses of the taxpayer for such taxable year is at least $1,000. ``(B) Active qualified trade or business.--The term `active qualified trade or business' means, with respect to any taxpayer for any taxable year, any qualified trade or business of the taxpayer in which the taxpayer materially participates (within the meaning of section 469(h)). ``(3) Inflation adjustment.--In the case of any taxable year beginning after 2026, the $400 amount in paragraph (1)(B) and the $1,000 amount in paragraph (2)(A) shall each be increased by an amount equal to -- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under this paragraph is not a multiple of $5, such increase shall be rounded to the nearest multiple of $5.''. (2) Conforming amendment.--Section 199A(a) is amended by inserting ``except as provided in subsection (i),'' before ``there''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. [[Page S3714]] SEC. 70106. EXTENSION AND ENHANCEMENT OF INCREASED ESTATE AND GIFT TAX EXEMPTION AMOUNTS. (a) In General.--Section 2010(c)(3) is amended-- (1) in subparagraph (A) by striking ``$5,000,000'' and inserting ``$15,000,000'', (2) in subparagraph (B)-- (A) in the matter preceding clause (i), by striking ``2011'' and inserting ``2026'', and (B) in clause (ii), by striking ``calendar year 2010'' and inserting ``calendar year 2025'', and (3) by striking subparagraph (C). (b) Effective Date.--The amendments made by this section shall apply to estates of decedents dying and gifts made after December 31, 2025. SEC. 70107. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNTS AND MODIFICATION OF PHASEOUT THRESHOLDS. (a) In General.--Section 55(d)(4) is amended-- (1) in subparagraph (A), by striking ``, and before January 1, 2026'', and (2) by striking ``and Before 2026'' in the heading. (b) Modification of Inflation Adjustment.--Section 55(d)(4)(B) is amended-- (1) by striking ``2018'' and inserting ``2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I))'', and (2) by striking ``determined by substituting `calendar year 2017' for `calendar year 2016' in subparagraph (A)(ii) thereof.'' and inserting ``determined by substituting for `calendar year 2016' in subparagraph (A)(ii) thereof-- ``(1) `calendar year 2017', in the case of the $109,400 amount in subparagraph (A)(i)(I) and the $70,300 amount in subparagraph (A)(i)(II), and ``(2) `calendar year 2025', in the case of the $1,000,000 amount in subparagraph (A)(ii)(I).''. (c) Modification of Phaseout Amount.--Section 55(d)(4)(A)(ii) is amended by striking ``and'' at the end of subclause (II), and by adding at the end the following new subclause: ``(IV) by substituting `50 percent' for `25 percent', and''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70108. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION FOR QUALIFIED RESIDENCE INTEREST. (a) In General.--Section 163(h)(3)(F) is amended-- (1) in clause (i)-- (A) by striking ``, and before January 1, 2026'', (B) by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively, (C) by striking ``subclause (III)'' in subclause (V), as so redesignated, and inserting ``subclause (IV)'', and (D) by inserting after subclause (II) the following new subclause: ``(III) Mortgage insurance premiums treated as interest.-- Clause (iv) of subparagraph (E) shall not apply.'', (2) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively, and (3) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70109. EXTENSION AND MODIFICATION OF LIMITATION ON CASUALTY LOSS DEDUCTION. (a) In General.--Section 165(h)(5) is amended-- (1) in subparagraph (A), by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Extension to State Declared Disasters.-- (1) In general.--Subparagraph (A) of section 165(h)(5), as amended by subsection (a), is further amended by striking ``(i)(5))'' and inserting ``(i)(5)) or a State declared disaster''. (2) Exception related to personal casualty gains.--Clause (i) of section 165(h)(5)(B) is amended by striking ``(as so defined)'' and inserting ``(as so defined) or a State declared disaster''. (3) State declared disaster.--Paragraph (5) of section 165(h) is amended by adding at the end the following new subparagraph: ``(C) State declared disaster.--For purposes of this paragraph-- ``(i) In general.--The term `State declared disaster' means, with respect to any State, any natural catastrophe (including any hurricane, tornado, storm, high water, wind- driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the State, which in the determination of the Governor of such State (or the Mayor, in the case of the District of Columbia) and the Secretary causes damage of sufficient severity and magnitude to warrant the application of the rules of this section. ``(ii) State.--The term `State' includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70110. TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTIONS OTHER THAN EDUCATOR EXPENSES. (a) In General.--Section 67(g) is amended-- (1) by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Deduction for Educator Expenses.-- (1) In general.--Section 67(b) is amended by striking ``and'' at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ``, and'', and by adding at the end the following new paragraph: ``(13) the deductions allowed by section 162 for educator expenses (as defined in subsection (g)).''. (2) Inclusion of coaches and certain nonathletic instructional equipment.--Section 67 is amended by redesignating subsection (g), as amended by this section, as subsection (h), and by inserting after subsection (f) the following new section: ``(g) Educator Expenses.--For purposes of subsection (b)(13), the term `educator expenses' means expenses of a type which would be described in section 62(a)(2)(D) if-- ``(1) such section were applied-- ``(A) without regard to the dollar limitation, ``(B) without regard to `(other than nonathletic supplies for courses of instruction in health or physical education)' in clause (ii) thereof, and ``(C) by substituting `as part of instructional activity' for `in the classroom' in clause (ii) thereof, and ``(2) section 62(d)(1)(A) were applied by inserting `, interscholastic sports administrator or coach,' after `counselor'.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70111. LIMITATION ON TAX BENEFIT OF ITEMIZED DEDUCTIONS. (a) In General.--Section 68 is amended to read as follows: ``(a) In General.--In the case of an individual, the amount of the itemized deductions otherwise allowable for the taxable year (determined without regard to this section) shall be reduced by \2/37\ of the lesser of-- ``(1) such amount of itemized deductions, or ``(2) so much of the taxable income of the taxpayer for the taxable year (determined without regard to this section and increased by such amount of itemized deductions) as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer. ``(b) Coordination With Other Limitations.--This section shall be applied after the application of any other limitation on the allowance of any itemized deduction.''. (b) Limitation Not Applicable to Determination of Deduction for Qualified Business Income.-- (1) In general.--Section 199A(e)(1) is amended by inserting ``without regard to section 68 and'' after ``shall be computed''. (2) Patrons of specified agricultural and horticultural cooperatives.--Section 199A(g)(2)(B) is amended by inserting ``section 68 or'' after ``without regard to''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70112. EXTENSION AND MODIFICATION OF QUALIFIED TRANSPORTATION FRINGE BENEFITS. (a) In General.--Section 132(f) is amended-- (1) by striking subparagraph (D) of paragraph (1), (2) in paragraph (2), by inserting ``and'' at the end of subparagraph (A), by striking ``, and'' at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C), (3) by striking ``(other than a qualified bicycle commuting reimbursement)'' in paragraph (4), (4) by striking subparagraph (F) of paragraph (5), and (5) by striking paragraph (8). (b) Inflation Adjustment.--Clause (ii) of section 132(f)(6)(A) is amended by striking ``1998'' in clause (ii) and inserting ``1997''. (c) Coordination With Disallowance of Certain Expenses.-- Subsection (l) of section 274 is amended-- (1) by striking ``Benefits.--'' and all that follows through ``No deduction'' and inserting ``Benefits.--No deduction'', and (2) by striking paragraph (2). (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70113. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION AND EXCLUSION FOR MOVING EXPENSES. (a) Extension of Limitation on Deduction.--Section 217(k) is amended-- (1) by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Allowance of Deduction for Members of the Intelligence Community.--Section 217(k), as amended by subsection (a), is further amended-- (1) by striking ``2017.--Except in the case'' and inserting ``2017.-- ``(1) In general.--Except in the case'', and (2) by adding at the end the following new paragraph: ``(2) Members of the intelligence community.--An employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 [[Page S3715]] U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment which requires relocation shall be treated for purposes of this section in the same manner as an individual to whom subsection (g) applies.''. (c) Extension of Limitation on Exclusion.--Section 132(g)(2) is amended-- (1) by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (d) Allowance of Exclusion for Members of the Intelligence Community.--Section 132(g)(2) of the Internal Revenue Code of 1986 is amended by inserting ``, or an employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment that requires relocation'' after ``change of station''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70114. EXTENSION AND MODIFICATION OF LIMITATION ON WAGERING LOSSES. (a) In General.--Section 165 is amended by striking subsection (d) and inserting the following: ``(d) Wagering Losses.-- ``(1) In general.--For purposes of losses from wagering transactions, the amount allowed as a deduction for any taxable year-- ``(A) shall be equal to 90 percent of the amount of such losses during such taxable year, and ``(B) shall be allowed only to the extent of the gains from such transactions during such taxable year. ``(2) Special rule.--For purposes of paragraph (1), the term `losses from wagering transactions' includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70115. EXTENSION AND ENHANCEMENT OF INCREASED LIMITATION ON CONTRIBUTIONS TO ABLE ACCOUNTS. (a) In General.--Section 529A(b)(2)(B) is amended-- (1) in clause (i), by inserting ``(determined by substituting `1996' for `1997' in paragraph (2)(B) thereof)'' after ``section 2503(b)'', and (2) in clause (ii), by striking ``before January 1, 2026''. (b) Effective Dates.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made after December 31, 2025. (2) Modified inflation adjustment.--The amendment made by subsection (a)(1) shall apply to taxable years beginning after December 31, 2025. SEC. 70116. EXTENSION AND ENHANCEMENT OF SAVERS CREDIT ALLOWED FOR ABLE CONTRIBUTIONS. (a) Extension.-- (1) In general.--Section 25B(d)(1) is amended to read as follows: ``(1) In general.--The term `qualified retirement savings contributions' means, with respect to any taxable year, the sum of-- ``(A) the amount of contributions made by the eligible individual during such taxable year to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary, and ``(B) in the case of any taxable year beginning before January 1, 2027-- ``(i) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual, ``(ii) the amount of-- ``(I) any elective deferrals (as defined in section 402(g)(3)) of such individual, and ``(II) any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and ``(iii) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).''. (2) Coordination with secure 2.0 act of 2022 amendment.-- Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 is repealed, and the Internal Revenue Code of 1986 shall be applied and administered as though such paragraph were never enacted. (3) Effective date.--The amendments and repeal made by this subsection shall apply to taxable years ending after December 31, 2025. (b) Increase of Credit Amount.-- (1) In general.--Section 25B(a) is amended by striking ``$2,000'' and inserting ``$2,100''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2026. SEC. 70117. EXTENSION OF ROLLOVERS FROM QUALIFIED TUITION PROGRAMS TO ABLE ACCOUNTS PERMITTED. (a) In General.--Section 529(c)(3)(C)(i)(III) is amended by striking ``before January 1, 2026,''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70118. EXTENSION OF TREATMENT OF CERTAIN INDIVIDUALS PERFORMING SERVICES IN THE SINAI PENINSULA AND ENHANCEMENT TO INCLUDE ADDITIONAL AREAS. (a) Treatment Made Permanent.--Section 11026(a) of Public Law 115-97 is amended by striking ``, with respect to the applicable period''. (b) Kenya, Mali, Burkina Faso, and Chad Included as Hazardous Duty Areas.--Section 11026(b) of Public Law 115-97 is amended to read as follows: ``(b) Qualified Hazardous Duty Area.--For purposes of this section, the term `qualified hazardous duty area' means each of the following locations, but only during the period for which any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger), for services performed in such location: ``(1) the Sinai Peninsula of Egypt. ``(2) Kenya. ``(3) Mali. ``(4) Burkina Faso. ``(5) Chad.''. (c) Conforming Amendment.--Section 11026 of Public Law 115- 97 is amended by striking subsections (c) and (d). (d) Effective Date.--The amendments made by this section shall take effect on January 1, 2026. SEC. 70119. EXTENSION AND MODIFICATION OF EXCLUSION FROM GROSS INCOME OF STUDENT LOANS DISCHARGED ON ACCOUNT OF DEATH OR DISABILITY. (a) In General.--Section 108(f)(5) is amended to read as follows: ``(5) Discharges on account of death or disability.-- ``(A) In general.--In the case of an individual, gross income does not include any amount which (but for this subsection) would be includible in gross income for such taxable year by reason of the discharge (in whole or in part) of any loan described in subparagraph (B), if such discharge was-- ``(i) pursuant to subsection (a) or (d) of section 437 of the Higher Education Act of 1965 or the parallel benefit under part D of title IV of such Act (relating to the repayment of loan liability), ``(ii) pursuant to section 464(c)(1)(F) of such Act, or ``(iii) otherwise discharged on account of death or total and permanent disability of the student. ``(B) Loans discharged.--A loan is described in this subparagraph if such loan is-- ``(i) a student loan (as defined in paragraph (2)), or ``(ii) a private education loan (as defined in section 140(a) of the Consumer Credit Protection Act (15 U.S.C. 1650(a)). ``(C) Social security number requirement.-- ``(i) In general.--Subparagraph (A) shall not apply with respect to any discharge during any taxable year unless the taxpayer includes the taxpayer's social security number on the return of tax for such taxable year. ``(ii) Social security number.--For purposes of this subparagraph, the term `social security number' has the meaning given such term in section 24(h)(7).''. (b) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2), as amended by this Act, is further amended by striking ``and'' at the end of subparagraph (V), by striking the period at the end of subparagraph (W) and inserting ``, and'', and by inserting after subparagraph (W) the following new subparagraph: ``(X) an omission of a correct social security number required under section 108(f)(5)(C) (relating to discharges on account of death or disability).''. (c) Effective Date.--The amendments made by this section shall apply to discharges after December 31, 2025. SEC. 70120. LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE AND LOCAL TAXES, ETC. (a) In General.--Section 164(b)(6) is amended-- (1) by striking ``and before January 1, 2026'', and (2) by striking ``$10,000 ($5,000 in the case of a married individual filing a separate return)'' and inserting ``the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return)''. (b) Applicable Limitation Amount.--Section 164(b) is amended by adding at the end the following new paragraph: ``(7) Applicable limitation amount.-- ``(A) In general.--For purposes of paragraph (6), the term `applicable limitation amount' means-- ``(i) in the case of any taxable year beginning in calendar year 2025, $40,000, ``(ii) in the case of any taxable year beginning in calendar year 2026, $40,400, ``(iii) in the case of any taxable year beginning after calendar year 2026 and before 2030, 101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year, and ``(iv) in the case of any taxable year beginning after calendar year 2029, $10,000. ``(B) Phasedown based on modified adjusted gross income.-- ``(i) In general.--Except as provided in clause (iii), in the case of any taxable year beginning before January 1, 2030, the applicable limitation amount shall be reduced by 30 percent of the excess (if any) of the taxpayer's modified adjusted gross income over the threshold amount (half the threshold amount in the case of a married individual filing a separate return). ``(ii) Threshold amount.--For purposes of this subparagraph, the term `threshold amount' means-- [[Page S3716]] ``(I) in the case of any taxable year beginning in calendar year 2025, $500,000, ``(II) in the case of any taxable year beginning in calendar year 2026, $505,000, and ``(III) in the case of any taxable year beginning after calendar year 2026, 101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year. ``(iii) Limitation on reduction.--The reduction under clause (i) shall not result in the applicable limitation amount being less than $10,000. ``(iv) Modified adjusted gross income.--For purposes of this paragraph, the term `modified adjusted gross income' means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. CHAPTER 2--DELIVERING ON PRESIDENTIAL PRIORITIES TO PROVIDE NEW MIDDLE- CLASS TAX RELIEF SEC. 70201. NO TAX ON TIPS. (a) Deduction Allowed.--Part VII of subchapter B of chapter 1 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section: ``SEC. 224. QUALIFIED TIPS. ``(a) In General.--There shall be allowed as a deduction an amount equal to the qualified tips received during the taxable year that are included on statements furnished to the individual pursuant to section 6041(d)(3), 6041A(e)(3), 6050W(f)(2), or 6051(a)(18), or reported by the taxpayer on Form 4137 (or successor). ``(b) Limitation.-- ``(1) In general.--The amount allowed as a deduction under this section for any taxable year shall not exceed $25,000. ``(2) Limitation based on adjusted gross income.-- ``(A) In general.--The amount allowable as a deduction under subsection (a) (after application of paragraph (1)) shall be reduced (but not below zero) by $100 for each $1,000 by which the taxpayer's modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return). ``(B) Modified adjusted gross income.--For purposes of this paragraph, the term `modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(c) Tips Received in Course of Trade or Business.--In the case of qualified tips received by an individual during any taxable year in the course of a trade or business (other than the trade or business of performing services as an employee) of such individual, such qualified tips shall be taken into account under subsection (a) only to the extent that the gross income for the taxpayer from such trade or business for such taxable year (including such qualified tips) exceeds the sum of the deductions (other than the deduction allowed under this section) allocable to the trade or business in which such qualified tips are received by the individual for such taxable year. ``(d) Qualified Tips.--For purposes of this section-- ``(1) In general.--The term `qualified tips' means cash tips received by an individual in an occupation which customarily and regularly received tips on or before December 31, 2024, as provided by the Secretary. ``(2) Exclusions.--Such term shall not include any amount received by an individual unless-- ``(A) such amount is paid voluntarily without any consequence in the event of nonpayment, is not the subject of negotiation, and is determined by the payor, ``(B) the trade or business in the course of which the individual receives such amount is not a specified service trade or business (as defined in section 199A(d)(2)), and ``(C) such other requirements as may be established by the Secretary in regulations or other guidance are satisfied. For purposes of subparagraph (B), in the case of an individual receiving tips in the trade or business of performing services as an employee, such individual shall be treated as receiving tips in the course of a trade or business which is a specified service trade or business if the trade or business of the employer is a specified service trade or business. ``(3) Cash tips.--For purposes of paragraph (1), the term `cash tips' includes tips received from customers that are paid in cash or charged and, in the case of an employee, tips received under any tip-sharing arrangement. ``(e) Social Security Number Required.-- ``(1) In general.--No deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual's social security number. ``(2) Social security number defined.--For purposes of paragraph (1), the term `social security number' shall have the meaning given such term in section 24(h)(7). ``(f) Married Individuals.--If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year. ``(g) Regulations.--The Secretary shall prescribe such regulations or other guidance as may be necessary to prevent reclassification of income as qualified tips, including regulations or other guidance to prevent abuse of the deduction allowed by this section. ``(h) Termination.--No deduction shall be allowed under this section for any taxable year beginning after December 31, 2028.''. (b) Deduction Allowed to Non-itemizers.--Section 63(b) is amended by striking ``and'' at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting ``, and'', and by adding at the end the following new paragraph: ``(5) the deduction provided in section 224.''. (c) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of subparagraph (W), by striking the period at the end of subparagraph (X) and inserting ``, and'', and by inserting after subparagraph (X) the following new subparagraph: ``(Y) an omission of a correct social security number required under section 224(e) (relating to deduction for qualified tips).''. (d) Exclusion From Qualified Business Income.--Section 199A(c)(4) is amended by striking ``and'' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ``, and'', and by adding at the end the following new subparagraph: ``(D) any amount with respect to which a deduction is allowable to the taxpayer under section 224(a) for the taxable year.''. (e) Extension of Tip Credit to Beauty Service Business.-- (1) In general.--Section 45B(b)(2) is amended to read as follows: ``(2) Application only to certain lines of business.--In applying paragraph (1) there shall be taken into account only tips received from customers or clients in connection with the following services: ``(A) The providing, delivering, or serving of food or beverages for consumption, if the tipping of employees delivering or serving food or beverages by customers is customary. ``(B) The providing of any of the following services to a customer or client if the tipping of employees providing such services is customary: ``(i) Barbering and hair care. ``(ii) Nail care. ``(iii) Esthetics. ``(iv) Body and spa treatments.''. (2) Credit determined with respect to minimum wage in effect.--Section 45B(b)(1)(B) is amended-- (A) by striking ``as in effect on January 1, 2007, and'', and (B) by inserting ``, and in the case of food or beverage establishments, as in effect on January 1, 2007'' after ``without regard to section 3(m) of such Act''. (f) Reporting Requirements.-- (1) Returns for payments made in the course of a trade or business.-- (A) Statement furnished to secretary.--Section 6041(a) is amended by inserting ``(including a separate accounting of any such amounts reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)'' after ``such gains, profits, and income''. (B) Statement furnished to payee.--Section 6041(d) is amended by striking ``and'' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ``, and'', and by inserting after paragraph (2) the following new paragraph: ``(3) in the case of compensation to non-employees, the portion of payments that have been reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips.''. (2) Returns for payments made for services and direct sales.-- (A) Statement furnished to secretary.--Section 6041A(a) is amended by inserting ``(including a separate accounting of any such amounts reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)'' after ``amount of such payments''. (B) Statement furnished to payee.--Section 6041A(e) is amended by striking ``and'' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ``, and'', and by inserting after paragraph (2) the following new paragraph: ``(3) in the case of subsection (a), the portion of payments that have been reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips.''. (3) Returns relating to third party settlement organizations.-- (A) Statement furnished to secretary.--Section 6050W(a) is amended by striking ``and'' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ``and'', and by adding at the end the following new paragraph: ``(3) in the case of a third party settlement organization, the portion of reportable payment transactions that have been reasonably designated by payors as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips.''. (B) Statement furnished to payee.--Section 6050W(f)(2) is amended by inserting ``(including a separate accounting of any such amounts that have been reasonably designated by payors as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)'' after ``reportable payment transactions''. (4) Returns related to wages.--Section 6051(a) is amended by striking ``and'' at the end of paragraph (16), by striking the period at the end of paragraph (17) and inserting ``, [[Page S3717]] and'', and by inserting after paragraph (17) the following new paragraph: ``(18) the total amount of cash tips reported by the employee under section 6053(a) and the occupation described in section 224(d)(1) such person.''. (g) Clerical Amendment.--The table of sections for part VII of subchapter B of chapter 1 is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item: ``Sec. 224. Qualified tips.''. (h) Published List of Occupations Traditionally Receiving Tips.--Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall publish a list of occupations which customarily and regularly received tips on or before December 31, 2024, for purposes of section 224(d)(1) of the Internal Revenue Code of 1986 (as added by subsection (a)). (i) Withholding.--The Secretary of the Treasury (or the Secretary's delegate) shall modify the procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 2025, to take into account the deduction allowed under section 224 of such Code (as added by this Act). (j) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. (k) Transition Rule.--In the case of any cash tips required to be reported for periods before January 1, 2026, persons required to file returns or statements under section 6041(a), 6041(d)(3), 6041A(a), 6041A(e)(3), 6050W(a), or 6050W(f)(2) of the Internal Revenue Code of 1986 (as amended by this section) may approximate a separate accounting of amounts designated as cash tips by any reasonable method specified by the Secretary. SEC. 70202. NO TAX ON OVERTIME. (a) Deduction Allowed.--Part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating section 225 as section 226 and by inserting after section 224 the following new section: ``SEC. 225. QUALIFIED OVERTIME COMPENSATION. ``(a) In General.--There shall be allowed as a deduction an amount equal to the qualified overtime compensation received during the taxable year and included on statements furnished to the individual pursuant to section 6041(d)(4) or 6051(a)(19). ``(b) Limitation.-- ``(1) In general.--The amount allowed as a deduction under this section for any taxable year shall not exceed $12,500 ($25,000 in the case of a joint return). ``(2) Limitation based on adjusted gross income.-- ``(A) In general.--The amount allowable as a deduction under subsection (a) (after application of paragraph (1)) shall be reduced (but not below zero) by $100 for each $1,000 by which the taxpayer's modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return). ``(B) Modified adjusted gross income.--For purposes of this paragraph, the term `modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(c) Qualified Overtime Compensation.-- ``(1) In general.--For purposes of this section, the term `qualified overtime compensation' means overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (as used in such section) at which such individual is employed. ``(2) Exclusions.--Such term shall not include any qualified tip (as defined in section 224(d)). ``(d) Social Security Number Required.-- ``(1) In general.--No deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual's social security number. ``(2) Social security number defined.--For purposes of paragraph (1), the term `social security number' shall have the meaning given such term in section 24(h)(7). ``(e) Married Individuals.--If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year. ``(f) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent abuse of the deduction allowed by this section. ``(g) Termination.--No deduction shall be allowed under this section for any taxable year beginning after December 31, 2028.''. (b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting ``, and'', and by adding at the end the following new paragraph: ``(6) the deduction provided in section 225.''. (c) Reporting.-- (1) Requirement to include overtime compensation on w-2.-- Section 6051(a), as amended by the preceding provision of this Act, is amended by striking ``and'' at the end of paragraph (17), by striking the period at the end of paragraph (18) and inserting ``, and'', and by inserting after paragraph (18) the following new paragraph: ``(19) the total amount of qualified overtime compensation (as defined in section 225(c)).''. (2) Payments to persons not treated as employees under tax laws.-- (A) Statement furnished to secretary.--Section 6041(a), as amended by section 70201(e)(1)(A), is amended by inserting ``and a separate accounting of any amount of qualified overtime compensation (as defined in section 225(c))'' after ``occupation of the person receiving such tips''. (B) Statement furnished to payee.--Section 6041(d), as amended by section 70201(e)(1)(B), is amended by striking ``and'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``, and'', and by inserting after paragraph (3) the following new paragraph: ``(4) the portion of payments that are qualified overtime compensation (as defined in section 225(c)).''. (d) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of subparagraph (X), by striking the period at the end of subparagraph (Y) and inserting ``, and'', and by inserting after subparagraph (Y) the following new subparagraph: ``(Z) an omission of a correct social security number required under section 225(d) (relating to deduction for qualified overtime).''. (e) Clerical Amendment.--The table of sections for part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating the item relating to section 225 as an item relating to section 226 and by inserting after the item relating to section 224 the following new item: ``Sec. 225. Qualified overtime compensation.''. (f) Withholding.--The Secretary of the Treasury (or the Secretary's delegate) shall modify the procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 2025, to take into account the deduction allowed under section 225 of such Code (as added by this Act). (g) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. (h) Transition Rule.--In the case of qualified overtime compensation required to be reported for periods before January 1, 2026, persons required to file returns or statements under section 6051(a)(19), 6041(a), or 6041(d)(4) of the Internal Revenue Code of 1986 (as amended by this section) may approximate a separate accounting of amounts designated as qualified overtime compensation by any reasonable method specified by the Secretary. SEC. 70203. NO TAX ON CAR LOAN INTEREST. (a) In General.--Section 163(h) is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: ``(4) Special rules for taxable years 2025 through 2028 relating to qualified passenger vehicle loan interest.-- ``(A) In general.--In the case of taxable years beginning after December 31, 2024, and before January 1, 2029, for purposes of this subsection the term `personal interest' shall not include qualified passenger vehicle loan interest. ``(B) Qualified passenger vehicle loan interest defined.-- ``(i) In general.--For purposes of this paragraph, the term `qualified passenger vehicle loan interest' means any interest which is paid or accrued during the taxable year on indebtedness incurred by the taxpayer after December 31, 2024, for the purchase of, and that is secured by a first lien on, an applicable passenger vehicle for personal use. ``(ii) Exceptions.--Such term shall not include any amount paid or incurred on any of the following: ``(I) A loan to finance fleet sales. ``(II) A loan incurred for the purchase of a commercial vehicle that is not used for personal purposes. ``(III) Any lease financing. ``(IV) A loan to finance the purchase of a vehicle with a salvage title. ``(V) A loan to finance the purchase of a vehicle intended to be used for scrap or parts. ``(iii) VIN requirement.--Interest shall not be treated as qualified passenger vehicle loan interest under this paragraph unless the taxpayer includes the vehicle identification number of the applicable passenger vehicle described in clause (i) on the return of tax for the taxable year. ``(C) Limitations.-- ``(i) Dollar limit.--The amount of interest taken into account by a taxpayer under subparagraph (B) for any taxable year shall not exceed $10,000. ``(ii) Limitation based on modified adjusted gross income.-- ``(I) In general.--The amount which is otherwise allowable as a deduction under subsection (a) as qualified passenger vehicle loan interest (determined without regard to this clause and after the application of clause (i)) shall be reduced (but not below zero) by $200 for each $1,000 (or portion thereof) by which the modified adjusted gross income of the taxpayer for the taxable year exceeds $100,000 ($200,000 in the case of a joint return). [[Page S3718]] ``(II) Modified adjusted gross income.--For purposes of this clause, the term `modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(D) Applicable passenger vehicle.--The term `applicable passenger vehicle' means any vehicle-- ``(i) the original use of which commences with the taxpayer, ``(ii) which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails), ``(iii) which has at least 2 wheels, ``(iv) which is a car, minivan, van, sport utility vehicle, pickup truck, or motorcycle, ``(v) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, and ``(vi) which has a gross vehicle weight rating of less than 14,000 pounds. Such term shall not include any vehicle the final assembly of which did not occur within the United States. ``(E) Other definitions and special rules.--For purposes of this paragraph-- ``(i) Final assembly.--For purposes of subparagraph (D), the term `final assembly' means the process by which a manufacturer produces a vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle. ``(ii) Treatment of refinancing.--Indebtedness described in subparagraph (B) shall include indebtedness that results from refinancing any indebtedness described in such subparagraph, and that is secured by a first lien on the applicable passenger vehicle with respect to which the refinanced indebtedness was incurred, but only to the extent the amount of such resulting indebtedness does not exceed the amount of such refinanced indebtedness. ``(iii) Related parties.--Indebtedness described in subparagraph (B) shall not include any indebtedness owed to a person who is related (within the meaning of section 267(b) or 707(b)(1)) to the taxpayer.''. (b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of paragraph (5), by striking the period at the end of paragraph (6) and inserting ``and'', and by adding at the end the following new paragraph: ``(7) so much of the deduction allowed by section 163(a) as is attributable to the exception under section 163(h)(4)(A).''. (c) Reporting.-- (1) In general.--Subpart B of part III of subchapter A of chapter 61 is amended by adding at the end the following new section: ``SEC. 6050AA. RETURNS RELATING TO APPLICABLE PASSENGER VEHICLE LOAN INTEREST RECEIVED IN TRADE OR BUSINESS FROM INDIVIDUALS. ``(a) In General.--Any person-- ``(1) who is engaged in a trade or business, and ``(2) who, in the course of such trade or business, receives from any individual interest aggregating $600 or more for any calendar year on a specified passenger vehicle loan, shall make the return described in subsection (b) with respect to each individual from whom such interest was received at such time as the Secretary may provide. ``(b) Form and Manner of Returns.--A return is described in this subsection if such return-- ``(1) is in such form as the Secretary may prescribe, and ``(2) contains-- ``(A) the name and address of the individual from whom the interest described in subsection (a)(2) was received, ``(B) the amount of such interest received for the calendar year, ``(C) the amount of outstanding principal on the specified passenger vehicle loan as of the beginning of such calendar year, ``(D) the date of the origination of such loan, ``(E) the year, make, model, and vehicle identification number of the applicable passenger vehicle which secures such loan (or such other description of such vehicle as the Secretary may prescribe), and ``(F) such other information as the Secretary may prescribe. ``(c) Statements to Be Furnished to Individuals With Respect to Whom Information Is Required.--Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing-- ``(1) the name, address, and phone number of the information contact of the person required to make such return, and ``(2) the information described in subparagraphs (B), (C), (D), and (E) of subsection (b)(2) with respect to such individual (and such information as is described in subsection (b)(2)(F) with respect to such individual as the Secretary may provide for purposes of this subsection). The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made. ``(d) Definitions.--For purposes of this section-- ``(1) In general.--Terms used in this section which are also used in paragraph (4) of section 163(h) shall have the same meaning as when used in such paragraph. ``(2) Specified passenger vehicle loan.--The term `specified passenger vehicle loan' means the indebtedness described in section 163(h)(4)(B) with respect to any applicable passenger vehicle. ``(e) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent the duplicate reporting of information under this section. ``(f) Applicability.--No return shall be required under this section for any period to which section 163(h)(4) does not apply.''. (2) Penalties.--Section 6724(d) is amended-- (A) in paragraph (1)(B), by striking ``or'' at the end of clause (xxvii), by striking ``and'' at the end of clause (xxviii) and inserting ``or'', and by adding at the end the following new clause: ``(xxix) section 6050AA(a) (relating to returns relating to applicable passenger vehicle loan interest received in trade or business from individuals),'', and (B) in paragraph (2), by striking ``or'' at the end of subparagraph (KK), by striking the period at the end of subparagraph (LL) and inserting ``, or'', and by inserting after subparagraph (LL) the following new subparagraph: ``(MM) section 6050AA(c) (relating to statements relating to applicable passenger vehicle loan interest received in trade or business from individuals).''. (d) Conforming Amendments.-- (1) Section 56(e)(1)(B) is amended by striking ``section 163(h)(4)'' and inserting ``section 163(h)(5)''. (2) The table of sections for subpart B of part III of subchapter A of chapter 61 is amended by adding at the end the following new item: ``Sec. 6050AA. Returns relating to applicable passenger vehicle loan interest received in trade or business from individuals.''. (e) Effective Date.--The amendments made by this section shall apply to indebtedness incurred after December 31, 2024. SEC. 70204. TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM. (a) Trump Accounts.-- (1) In general.--Subchapter F of chapter 1 is amended by adding at the end the following new part: ``PART IX--TRUMP ACCOUNTS ``Sec. 530A. Trump accounts. ``SEC. 530A. TRUMP ACCOUNTS. ``(a) General Rule.--Except as provided in this section or under regulations or guidance established by the Secretary, a Trump account shall be treated for purposes of this title in the same manner as an individual retirement account under section 408(a). ``(b) Trump Account.--For purposes of this section-- ``(1) In general.--The term `Trump account' means an individual retirement account (as defined in section 408(a)) which is not designated as a Roth IRA and which meets the following requirements: ``(A) The account-- ``(i) is created or organized by the Secretary for the exclusive benefit of an eligible individual or such eligible individual's beneficiaries, or ``(ii) is-- ``(I) created or organized in the United States for the exclusive benefit of an individual who has not attained the age of 18 before the end of the calendar year, or such individual's beneficiaries, and ``(II) funded by a qualified rollover contribution. ``(B) The account is designated (in such manner as the Secretary shall prescribe) at the time of the establishment of the account as a Trump account. ``(C) The written governing instrument creating the account meets the following requirements: ``(i) No contribution will be accepted-- ``(I) before the date that is 12 months after the date of the enactment of this section, or ``(II) in the case of a contribution made in any calendar year before the calendar year in which the account beneficiary attains age 18, if such contribution would result in aggregate contributions (other than exempt contributions) for such calendar year in excess of the contribution limit specified in subsection (c)(2)(A). ``(ii) Except as provided in subsection (d), no distribution will be allowed before the first day of the calendar year in which the account beneficiary attains age 18. ``(iii) No part of the account funds will be invested in any asset other than an eligible investment during any period before the first day of the calendar year in which the account beneficiary attains age 18. ``(2) Eligible individual.--The term `eligible individual' means any individual-- ``(A) who has not attained the age of 18 before the close of the calendar year in which the election under subparagraph (C) is made, ``(B) for whom a social security number (within the meaning of section 24(h)(7)) has been issued before the date on which an election under subsection (C) is made, and ``(C) for whom-- ``(i) an election is made under this subparagraph by the Secretary if the Secretary determines (based on information available to the Secretary from tax returns or otherwise) that such individual meets the requirements of subparagraphs (A) and (B) and no prior [[Page S3719]] election has been made for such individual under clause (ii), or ``(ii) an election is made under this subparagraph by a person other than the Secretary (at such time and in such manner as the Secretary may prescribe) for the establishment of a Trump account if no prior election has been made for such individual under clause (i). ``(3) Eligible investment.-- ``(A) In general.--The term `eligible investment' means any mutual fund or exchange traded fund which-- ``(i) tracks the returns of a qualified index, ``(ii) does not use leverage, ``(iii) does not have annual fees and expenses of more than 0.1 percent of the balance of the investment in the fund, and ``(iv) meets such other criteria as the Secretary determines appropriate for purposes of this section. ``(B) Qualified index.--The term `qualified index' means-- ``(i) the Standard and Poor's 500 stock market index, or ``(ii) any other index-- ``(I) which is comprised of equity investments in United States companies, and ``(II) for which regulated futures contracts (as defined in section 1256(g)(1)) are traded on a qualified board or exchange (as defined in section 1256(g)(7)). Such term shall not include any industry or sector-specific index, but may include an index based on market capitalization. ``(4) Account beneficiary.--The term `account beneficiary' means the individual on whose behalf the Trump account was established. ``(c) Treatment of Contributions.-- ``(1) No deduction allowed.--No deduction shall be allowed under section 219 for any contribution which is made before the first day of the calendar year in which the account beneficiary attains age 18. ``(2) Contribution limit.--In the case of any contribution made before the calendar year in which the account beneficiary attains age 18-- ``(A) In general.--The aggregate amount of contributions (other than exempt contributions) for such calendar year shall not exceed $5,000. ``(B) Exempt contribution.--For purposes of this paragraph, the term `exempt contribution' means-- ``(i) a qualified rollover contribution, ``(ii) any qualified general contribution, or ``(iii) any contribution provided under section 6434. ``(C) Cost-of-living adjustment.-- ``(i) In general.--In the case of any calendar year after 2027, the $5,000 amount under subparagraph (A) shall be increased by an amount equal to-- ``(I) such dollar amount, multiplied by ``(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting `calendar year 2026' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(ii) Rounding.--If any increase under this subparagraph is not a multiple of $100, such amount shall be rounded to the next lower multiple of $100. ``(3) Timing of contributions.--Section 219(f)(3) shall not apply to any contribution made to a Trump account for any taxable year ending before the calendar year in which the account beneficiary attains age 18. ``(d) Distributions.-- ``(1) In general.--Except as otherwise provided in this subsection, no distribution shall be allowed before the first day of the calendar year in which the account beneficiary attains age 18. ``(2) Tax treatment of allowable distributions.--For purposes of applying section 72 to any amount distributed from a Trump account, the investment in the contract shall not include-- ``(A) any qualified general contribution, ``(B) any contribution provided under section 6434, and ``(C) the amount of any contribution which is excluded from gross income under section 128. ``(3) Qualified rollover contributions.--Paragraph (1) shall not apply to any distribution which is a qualified rollover contribution and the amount of such distribution shall not be included in the gross income of the beneficiary. ``(4) Qualified able rollover contributions.-- ``(A) In general.--Paragraph (1) shall not apply to any distribution which is a qualified ABLE rollover contribution and the amount of such distribution shall not be included in the gross income of the beneficiary. ``(B) Qualified able rollover contribution.--For purposes of this section, the term `qualified ABLE rollover contribution' means an amount which is paid during the calendar year in which the account beneficiary attains age 17 in a direct trustee-to-trustee transfer from a Trump account maintained for the benefit of the account beneficiary to an ABLE account (as defined in section 529A(e)(6)) for the benefit of the such account beneficiary, but only if the amount of such payment is equal to the entire balance of the Trump account from which the payment is made. ``(5) Distributions of excess contributions.--In the case of any contribution which is made before the calendar year in which the account beneficiary attains age 18 and which is in excess of the limitation in effect under subsection (c)(2)(A) for the calendar year-- ``(A) paragraph (1) shall not apply to the distribution of such excess, ``(B) the amount of such distribution shall not be included in gross income of the account beneficiary, and ``(C) the tax imposed by this chapter on the distributee for the taxable year in which the distribution is made shall be increased by 100 percent of the amount of net income attributable to such excess (determined without regard to subparagraph (B)). ``(6) Treatment of death of account beneficiary.--If, by reason of the death of the account beneficiary before the first day of the calendar year in which the account beneficiary attains age 18, any person acquires the account beneficiary's interest in the Trump account-- ``(A) paragraph (1) shall not apply, ``(B) such account shall cease to be a Trump account as of the date of death, and ``(C) an amount equal to the fair market value of the assets (reduced by the investment in the contract) in such account on such date shall-- ``(i) if such person is not the estate of such beneficiary, be includible in such person's gross income for the taxable year which includes such date, or ``(ii) if such person is the estate of such beneficiary, be includible in such beneficiary's gross income for the last taxable year of such beneficiary. ``(e) Qualified Rollover Contribution.--For purposes of this section, the term `qualified rollover contribution' means an amount which is paid in a direct trustee-to-trustee transfer from a Trump account maintained for the benefit of the account beneficiary to a Trump account maintained for such beneficiary, but only if the amount of such payment is equal to the entire balance of the Trump account from which the payment is made. ``(f) Qualified General Contribution.--For purposes of this section-- ``(1) In general.--The term `qualified general contribution' means any contribution which-- ``(A) is made by the Secretary pursuant to a general funding contribution, ``(B) is made to the Trump account of an account beneficiary in the qualified class of account beneficiaries specified in the general funding contribution, and ``(C) is in an amount which is equal to the ratio of-- ``(i) the amount of such general funding contribution, to ``(ii) the number of account beneficiaries in such qualified class. ``(2) General funding contribution.--The term `general funding contribution' means a contribution which-- ``(A) is made by-- ``(i) an entity described in section 170(c)(1) (other than a possession of the United States or a political subdivision thereof) or an Indian tribal government, or ``(ii) an organization described in section 501(c)(3) and exempt from tax under section 501(a), and ``(B) which specifies a qualified class of account beneficiaries to whom such contribution is to be distributed. ``(3) Qualified class.-- ``(A) In general.--The term `qualified class' means any of the following: ``(i) All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made. ``(ii) All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made and who reside in one or more States or other qualified geographic areas specified by the terms of the general funding contribution. ``(iii) All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made and who were born in one or more calendar years specified by the terms of the general funding contribution. ``(B) Qualified geographic area.--The term `qualified geographic area' means any geographic area in which not less than 5,000 account beneficiaries reside and which is designated by the Secretary as a qualified geographic area under this subparagraph. ``(g) Trustee Selection.--In the case of any Trump account created or organized by the Secretary, the Secretary shall take into account the following criteria in selecting the trustee: ``(1) The history of reliability and regulatory compliance of the trustee. ``(2) The customer service experience of the trustee. ``(3) The costs imposed by the trustee on the account or the account beneficiary. ``(h) Other Special Rules and Coordination With Individual Retirement Account Rules.-- ``(1) In general.--The rules of subsections (k) and (p) of section 408 shall not apply to a Trump account, and the rules of subsections (d) and (i) of section 408 shall not apply to a Trump account for any taxable year beginning before the calendar year in which the account beneficiary attains age 18. ``(2) Custodial accounts.--In the case of a Trump account, section 408(h) shall be applied by substituting `a Trump account described in section 530A(b)(1)' for `an individual retirement account described in subsection (a)'. ``(3) Contributions.--In the case of any taxable year beginning before the first day of the calendar year in which the account beneficiary attains age 18, a contribution to a [[Page S3720]] Trump account shall not be taken into account in applying any contribution limit to any individual retirement plan other than a Trump account. ``(4) Distributions.--Section 408(d)(2) shall be applied separately with respect to Trump Accounts and other individual retirement plans. ``(5) Excess contributions.--For purposes of applying section 4973(b) to a Trump account for any taxable year beginning before the first day of the calendar year in which the account beneficiary attains age 18, the term `excess contributions' means the sum of-- ``(A) the amount by which the amount contributed to the account for the calendar year in which taxable year begins exceeds the amount permitted to be contributed to the account under subsection (c)(2), and ``(B) the amount determined under this paragraph for the preceding taxable year. For purposes of this paragraph, the excess contributions for a taxable year are reduced by the distributions to which subsection (d)(5) applies that are made during the taxable year or by the date prescribed by law (including extensions of time) for filing the account beneficiary's return for the taxable year. ``(i) Reports.-- ``(1) In general.--The trustee of a Trump account shall make such reports regarding such account to the Secretary and to the beneficiary of the account at such time and in such manner as may be required by the Secretary. Such reports shall include information with respect to-- ``(A) contributions (including the amount and source of any contribution in excess of $25 made from a person other than the Secretary, the account beneficiary, or the parent or legal guardian of the account beneficiary), ``(B) distributions (including distributions which are qualified rollover contributions), ``(C) the fair market value of the account, ``(D) the investment in the contract with respect to such account, and ``(E) such other matters as the Secretary may require. ``(2) Qualified rollover contributions.--Not later than 30 days after the date of any qualified rollover contribution, the trustee of the Trump account to which the contribution was made shall make a report to the Secretary. Such report shall include-- ``(A) the name, address, and social security number of the account beneficiary, ``(B) the name and address of such trustee, ``(C) the account number, ``(D) the routing number of the trustee, and ``(E) such other information as the Secretary may require. ``(3) Period of reporting.--This subsection shall not apply to any period after the calendar year in which the beneficiary attains age 17.''. (2) Qualified able rollover contributions exempt from able contribution limitation.-- (A) In general.--Section 529A(b)(2)(B) is amended by inserting ``or received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)'' after ``except as provided in the case of contributions under subsection (c)(1)(C)''. (B) Prohibition on excess contributions.--The second sentence of section 529A(b)(6) is amended by inserting ``but do not include any contributions received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)'' before the period at the end. (C) Conforming amendment.--Section 4973(h)(1) is amended by inserting ``or contributions received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)'' after ``other than contributions under section 529A(c)(1)(C)''. (3) Failure to provide reports on trump accounts.--Section 6693(a)(2) is amended by striking ``and'' at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting ``, and'', and by inserting after subparagraph (F) the following new subparagraph: ``(G) section 530A(i) (relating to Trump accounts).''. (4) Clerical amendment.-- (A) The table of parts for subchapter F of chapter 1 is amended by adding at the end the following new item: ``PART IX--Trump Accounts''. (b) Employer Contributions.-- (1) In general.--Part III of subchapter B of chapter 1 is amended by inserting after section 127 the following new section: ``SEC. 128. EMPLOYER CONTRIBUTIONS TO TRUMP ACCOUNTS. ``(a) In General.--Gross income of an employee does not include amounts paid by the employer as a contribution to the Trump account of such employee or of any dependent of such employee if the amounts are paid or incurred pursuant to a program which is described in subsection (c). ``(b) Limitation.-- ``(1) In general.--The amount which may be excluded under subsection (a) with respect to any employee shall not exceed $2,500. ``(2) Inflation adjustment.-- ``(A) In general.--In the case of any taxable year beginning after 2027, the $2,500 amount in paragraph (1) shall be increased by an amount equal to-- ``(i) such dollar amount, multiplied by ``(ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting `calendar year 2026' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(B) Rounding.--If any increase determined under subparagraph (A) is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100. ``(c) Trump Account Contribution Program.--For purposes of this section, a Trump account contribution program is a separate written plan of an employer for the exclusive benefit of his employees to provide contributions to the Trump accounts of such employees or dependents of such employees which meets requirements similar to the requirements of paragraphs (2), (3), (6), (7), and (8) of section 129(d).''. (2) Clerical amendment.--The table of sections for part III of subchapter B of chapter 1 is amended by inserting after the item relating to section 127 the following new item: ``Sec. 128. Employer contributions to Trump accounts.''. (c) Certain Contributions Excluded From Gross Income.-- (1) In general.--Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section: ``SEC. 139J. CERTAIN CONTRIBUTIONS TO TRUMP ACCOUNTS. ``(a) In General.--Gross income of an account beneficiary shall not include any qualified general contribution to a Trump account of the account beneficiary. ``(b) Definitions.--Any term used in this section which is used in section 530A shall have the meaning given such term under section 530A.''. (2) Clerical amendment.--The table of sections for part III of subchapter B is amended by inserting before the item relating to section 140 the following new item: ``Sec. 139J. Certain contributions to Trump accounts.''. (d) Trump Accounts Contribution Pilot Program.-- (1) In general.--Subchapter B of chapter 65 is amended by adding at the end the following new section: ``SEC. 6434. TRUMP ACCOUNTS CONTRIBUTION PILOT PROGRAM. ``(a) In General.--In the case of an individual who makes an election under this section with respect to an eligible child of the individual, such eligible child shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year for which the election was made) in an amount equal to $1,000. ``(b) Refund of Payment.--The amount treated as a payment under subsection (a) shall be paid by the Secretary to the Trump account with respect to which such eligible child is the account beneficiary. ``(c) Eligible Child.--For purposes of this section, the term `eligible child ' means a qualifying child (as defined in section 152(c))-- ``(1) who is born after December 31, 2024, and before January 1, 2029, ``(2) with respect to whom no prior election has been made under this section by such individual or any other individual, ``(3) who is a United States citizen, and ``(4) at least one parent of whom was a United States citizen at the time of such qualifying child's birth. ``(d) Election.--An election under this section shall be made at such time and in such manner as the Secretary shall provide. ``(e) Social Security Number Required.-- ``(1) In general.--This section shall not apply to any taxpayer unless such individual includes with the election made under this section-- ``(A) such individual's social security number, and ``(B) the social security number of the eligible child with respect to whom the election is made. ``(2) Social security number defined.--For purposes of paragraph (1), the term `social security number' shall have the meaning given such term in section 24(h)(7), determined by substituting `before the date of the election made under section 6434' for `before the due date of such return' in subparagraph (B) thereof. ``(f) Exception From Reduction or Offset.--Any payment made to any individual under this section shall not be-- ``(1) subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 or any similar authority permitting offset, or ``(2) reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection. ``(g) Special Rule Regarding Interest.--The period determined under section 6611(a) with respect to any payment under this section shall not begin before January 1, 2028. ``(h) Mirror Code Possessions.--In the case of any possession of the United States with a mirror code tax system (as defined in section 24(k)), this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated. ``(i) Definitions.--For purposes of this section, the terms `Trump account' and `account beneficiary' have the meaning given such terms in section 530A(b).''. (2) Penalty for negligent claim or fraudulent claim.--Part I of subchapter A of chapter 68 is amended by adding at the end the following new section: [[Page S3721]] ``SEC. 6659. IMPROPER CLAIM FOR TRUMP ACCOUNT CONTRIBUTION PILOT PROGRAM CREDIT. ``(a) In General.--In the case of any individual who makes an election under section 6434 with respect to an individual who is not an eligible child of the taxpayer-- ``(1) if such election was made due to negligence or disregard of the rules or regulations, there shall be imposed a penalty of $500, or ``(2) if such election was made due to fraud, there shall be imposed a penalty of $1,000. ``(b) Definitions.-- ``(1) Eligible child.--The term `eligible child' has the meaning given such term under section 6434. ``(2) Negligence; disregard.--The terms `negligence' and `disregard' have the same meaning as when such terms are used in section 6662.''. (3) Omission of correct social security number treated as mathematical or clerical error.--Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of subparagraph (Y), by striking the period at the end of subparagraph (Z) and inserting ``, and'', and by inserting after subparagraph (Z) the following new subparagraph: ``(AA) an omission of a correct social security number required under section 6434(e)(1) (relating to the Trump accounts contribution pilot program).''. (4) Conforming amendments.-- (A) The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item: ``Sec. 6434. Trump accounts contribution pilot program.''. (B) The table of sections for part I of subchapter A of chapter 68 is amended by inserting after the item relating to section 6658 the following new item: ``Sec. 6659. Improper claim for Trump account contribution pilot program credit.''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. (f) Funding.--In addition to amounts otherwise available, there is appropriated to the Department of the Treasury, out of any money in the Treasury not otherwise appropriated, $410,000,000, to remain available until September 30, 2034, to carry out the amendments made by this section. CHAPTER 3--ESTABLISHING CERTAINTY AND COMPETITIVENESS FOR AMERICAN JOB CREATORS Subchapter A--Permanent U.S. Business Tax Reform and Boosting Domestic Investment SEC. 70301. FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY. (a) Made Permanent.-- (1) In general.--Section 168(k)(2)(A) is amended by adding ``and'' at the end of clause (i), by striking ``, and'' at the end of clause (ii) and inserting a period, and by striking clause (iii). (2) Property with longer production periods.--Section 168(k)(2)(B) is amended-- (A) in clause (i), by striking subclauses (II) and (III) and redesignating subclauses (IV), (V), and (VI), as subclauses (II), (III), and (IV), respectively, and (B) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively. (3) Self-constructed property.--Section 168(k)(2)(E) is amended by striking clause (i) and redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively. (4) Certain plants.--Section 168(k)(5)(A) is amended by striking ``planted before January 1, 2027, or is grafted before such date to a plant that has already been planted,'' in the matter preceding clause (i) and inserting ``planted or grafted''. (5) Conforming amendments.-- (A) Section 168(k)(2)(A)(ii) is amended by striking ``clause (ii) of subparagraph (E)'' and inserting ``clause (i) of subparagraph (E)''. (B) Section 168(k)(2)(C)(i) is amended by striking ``and subclauses (II) and (III) of subparagraph (B)(i)''. (C) Section 168(k)(2)(C)(ii) is amended by striking ``subparagraph (B)(iii)'' and inserting ``subparagraph (B)(ii)''. (D) Section 460(c)(6)(B) is amended by striking ``which'' and all that follows through the period and inserting ``which has a recovery period of 7 years or less.''. (b) 100 Percent Expensing.-- (1) In general.--Section 168(k) is amended-- (A) in paragraph (1)(A), by striking ``the applicable percentage'' and inserting ``100 percent'', and (B) by striking paragraphs (6) and (8). (2) Certain plants.--Section 168(k)(5)(A)(i) is amended by striking ``the applicable percentage'' and inserting ``100 percent''. (3) Transitional election of reduced percentage.--Section 168(k)(10) is amended by striking subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting before subparagraph (C) (as so redesignated) the following new subparagraphs: ``(A) In general.--In the case of qualified property placed in service by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (1)(A) shall be applied-- ``(i) in the case of property which is not described in clause (ii), by substituting `40 percent' for `100 percent', or ``(ii) in the case of property which is described in subparagraph (B) or (C) of paragraph (2), by substituting `60 percent' for `100 percent'. ``(B) Specified plants.--In the case of any specified plant planted or grafted by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (5)(A)(i) shall be applied by substituting `40 percent' for `100 percent'.''. (c) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants which are planted or grafted after January 19, 2025. (3) Transitional election of reduced percentage.--The amendment made by subsection (b)(3) shall apply to taxable years ending after January 19, 2025. (4) Acquisition date determination.--For purposes of paragraph (1), property shall not be treated as acquired after the date on which a written binding contract is entered into for such acquisition. SEC. 70302. FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERIMENTAL EXPENDITURES. (a) In General.--Part VI of subchapter B of chapter 1 is amended by inserting after section 174 the following new section: ``SEC. 174A. DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES. ``(a) Treatment as Expenses.--Notwithstanding section 263, there shall be allowed as a deduction any domestic research or experimental expenditures which are paid or incurred by the taxpayer during the taxable year. ``(b) Domestic Research or Experimental Expenditures.--For purposes of this section, the term `domestic research or experimental expenditures' means research or experimental expenditures paid or incurred by the taxpayer in connection with the taxpayer's trade or business other than such expenditures which are attributable to foreign research (within the meaning of section 41(d)(4)(F)). ``(c) Amortization of Certain Domestic Research or Experimental Expenditures.-- ``(1) In general.--At the election of the taxpayer, made in accordance with regulations or other guidance provided by the Secretary, in the case of domestic research or experimental expenditures which would (but for subsection (a)) be chargeable to capital account but not chargeable to property of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion), subsection (a) shall not apply and the taxpayer shall-- ``(A) charge such expenditures to capital account, and ``(B) be allowed an amortization deduction of such expenditures ratably over such period of not less than 60 months as may be selected by the taxpayer (beginning with the month in which the taxpayer first realizes benefits from such expenditures). ``(2) Time for and scope of election.--The election provided by paragraph (1) may be made for any taxable year, but only if made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof). The method so elected, and the period selected by the taxpayer, shall be adhered to in computing taxable income for the taxable year for which the election is made and for all subsequent taxable years unless, with the approval of the Secretary, a change to a different method (or to a different period) is authorized with respect to part or all of such expenditures. The election shall not apply to any expenditure paid or incurred during any taxable year before the taxable year for which the taxpayer makes the election. ``(d) Special Rules.-- ``(1) Land and other property.--This section shall not apply to any expenditure for the acquisition or improvement of land, or for the acquisition or improvement of property to be used in connection with the research or experimentation and of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion); but for purposes of this section allowances under section 167, and allowances under section 611, shall be considered as expenditures. ``(2) Exploration expenditures.--This section shall not apply to any expenditure paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral (including oil and gas). ``(3) Software development.--For purposes of this section, any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure.''. (b) Coordination With Certain Other Provisions.-- (1) Foreign research expenses.--Section 174 is amended-- (A) in subsection (a)-- (i) by striking ``a taxpayer's specified research or experimental expenditures'' and inserting ``a taxpayer's foreign research or experimental expenditures'', and [[Page S3722]] (ii) by striking ``over the 5-year period (15-year period in the case of any specified research or experimental expenditures which are attributable to foreign research (within the meaning of section 41(d)(4)(F)))'' in paragraph (2)(B) and inserting ``over the 15-year period'', (B) in subsection (b)-- (i) by striking ``specified research'' and inserting ``foreign research'', (ii) by inserting ``and which are attributable to foreign research (within the meaning of section 41(d)(4)(F))'' before the period at the end, and (iii) by striking ``Specified'' in the heading thereof and inserting ``Foreign'', and (C) in subsection (d)-- (i) by striking ``specified research or experimental expenditures'' and inserting ``foreign research or experimental expenditures'', and (ii) by inserting ``or reduction to amount realized'' after ``no deduction''. (2) Research credit.-- (A) Section 41(d)(1)(A) is amended to read as follows: ``(A) with respect to which expenditures are treated as domestic research or experimental expenditures under section 174A,''. (B) Section 280C(c)(1) is amended to read as follows: ``(1) In general.--The domestic research or experimental expenditures otherwise taken into account under section 174A shall be reduced by the amount of the credit allowed under section 41(a).''. (3) AMT adjustment.--Section 56(b)(2) is amended-- (A) in subparagraph (A)-- (i) by striking ``or 174(a)'' in the matter preceding clause (i) and inserting ``, 174(a), or 174A(a)'', and (ii) by striking ``research and experimental expenditures described in section 174(a)'' in clause (ii) thereof and inserting ``foreign research or experimental expenditures described in section 174(a) and domestic research or experimental expenditures in section 174A(a)'', and (B) in subparagraph (C), by inserting ``or 174A(a)'' after ``174(a)''. (4) Optional 10-year writeoff.--Section 59(e)(2)(B) is amended by striking ``section 174(a) (relating to research and experimental expenditures)'' and inserting ``section 174A(a) (relating to domestic research or experimental expenditures)''. (5) Qualified small issue bonds.--Section 144(a)(4)(C)(iv) is amended by striking ``174(a)'' and inserting ``174A(a)''. (6) Start-up expenditures.--Section 195(c)(1) is amended by striking ``or 174'' in the last sentence and inserting ``174, or 174A''. (7) Capital expenditures.-- (A) Section 263(a)(1)(B) is amended by inserting ``or 174A'' after ``174''. (B) Section 263A(c)(2) is amended by inserting ``or 174A'' after ``174''. (8) Active business computer software royalties.--Section 543(d)(4)(A)(i) is amended by inserting ``174A,'' after ``174,''. (9) Source rules.--Section 864(g)(2) is amended-- (A) by striking ``research and experimental expenditures within the meaning of section 174'' in the first sentence and inserting ``foreign research or experimental expenditures within the meaning of section 174 or domestic research or experimental expenditures within the meaning of section 174A'', and (B) in the last sentence-- (i) by striking ``treated as deferred expenses under subsection (b) of section 174'' and inserting ``allowed as an amortization deduction under section 174(a) or section 174A(c),'', and (ii) by striking ``such subsection'' and inserting ``such section (as the case may be)''. (10) Basis adjustment.--Section 1016(a)(14) is amended by striking ``deductions as deferred expenses under section 174(b)(1) (relating to research and experimental expenditures)'' and inserting ``deductions under section 174 or 174A(c)''. (11) Small business stock.--Section 1202(e)(2)(B) is amended by striking ``which may be treated as research and experimental expenditures under section 174'' and inserting ``which are treated as foreign research or experimental expenditures under section 174 or domestic research or experimental expenditures under section 174A''. (c) Change in Method of Accounting.-- (1) In general.--The amendments made by subsection (a) shall be treated as a change in method of accounting for purposes of section 481 of the Internal Revenue Code of 1986 and-- (A) such change shall be treated as initiated by the taxpayer, (B) such change shall be treated as made with the consent of the Secretary, and (C) such change shall be applied only on a cut-off basis for any domestic research or experimental expenditures (as defined in section 174A(b) of such Code (as added by this section) and determined by applying the rules of section 174A(d) of such Code) paid or incurred in taxable years beginning after December 31, 2024, and no adjustments under section 481(a) shall be made. (2) Special rules.--In the case of a taxable year which begins after December 31, 2024, and ends before the date of the enactment of this Act-- (A) paragraph (1)(C) shall not apply, and (B) the change in method of accounting under paragraph (1) shall be applied on a modified cut-off basis, taking into account for purposes of section 481(a) of such Code only the domestic research or experimental expenditures (as defined in section 174A(b) of such Code (as added by this section) and determined by applying the rules of section 174A(d) of such Code) paid or incurred in such taxable year but not allowed as a deduction in such taxable year. (d) Clerical Amendment.--The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 174 the following new item: ``Sec. 174A. Domestic research or experimental expenditures.''. (e) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection or subsection (f)(1), the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2024. (2) Treatment of foreign research or experimental expenditures upon disposition.-- (A) In general.--The amendment by subsection (b)(1)(C)(ii) shall apply to property disposed, retired, or abandoned after May 12, 2025. (B) No inference.--The amendment made by subsection (b)(1)(C)(ii) shall not be construed to create any inference with respect to the proper application of section 174(d) of the Internal Revenue Code of 1986 with respect to taxable years beginning before May 13, 2025. (3) Coordination with research credit.--The amendment made by subsection (b)(2)(B) shall apply to taxable years beginning after December 31, 2024. (4) No inference with respect to coordination with research credit for prior periods.--The amendment made by subsection (b)(2)(B) shall not be construed to create any inference with respect to the proper application of section 280C(c) of the Internal Revenue Code of 1986 with respect to taxable years beginning before January 1, 2025. (f) Transition Rules.-- (1) Election for retroactive application by certain small businesses.-- (A) In general.--At the election of an eligible taxpayer, paragraphs (1) and (3) of subsection (e) shall each be applied by substituting ``December 31, 2021'' for ``December 31, 2024''. An election made under this subparagraph shall be made in such manner as the Secretary may provide and not later than the date that is 1 year after the date of the enactment of this Act. The taxpayer shall file an amended return for each taxable year affected by such election. (B) Eligible taxpayer.--For purposes of this paragraph, the term ``eligible taxpayer'' means any taxpayer (other than a tax shelter prohibited from using the cash receipts and disbursements method of accounting under section 448(a)(3)) which meets the gross receipts test of section 448(c) for the first taxable year beginning after December 31, 2024. (C) Election treated as change in method of accounting.--In the case of any taxpayer which elects the application of subparagraph (A)-- (i) such election may be treated as a change in method of accounting for purposes of section 481 of such Code for the taxpayer's first taxable year affected by such election, (ii) such change shall be treated as initiated by the taxpayer for such taxable year, (iii) such change shall be treated as made with the consent of the Secretary, and (iv) subsection (c) shall not apply to such taxpayer. (D) Election regarding coordination with research credit.-- An election under section 280C(c)(2) of the Internal Revenue Code of 1986 (or revocation of such election) for any taxable year beginning after December 31, 2021, by an eligible taxpayer making an election under subparagraph (A) shall not fail to be treated as timely made (or as made on the return) if made during the 1-year period beginning on the date of the enactment of this Act on an amended return for such taxable year. (2) Election to deduct certain unamortized amounts paid or incurred in taxable years beginning before january 1, 2025.-- (A) In general.--In the case of any domestic research or experimental expenditures (as defined in section 174A, as added by subsection (a)) which are paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025, and which was charged to capital account, a taxpayer may elect-- (i) to deduct any remaining unamortized amount with respect to such expenditures in the first taxable year beginning after December 31, 2024, or (ii) to deduct such remaining unamortized amount with respect to such expenditures ratably over the 2-taxable year period beginning with the first taxable year beginning after December 31, 2024. (B) Change in method of accounting.--In the case of a taxpayer who makes an election under this paragraph-- (i) such taxpayer shall be treated as initiating a change in method of accounting for purposes of section 481 of the Internal Revenue Code of 1986 with respect to the expenditures to which the election applies, (ii) such change shall be treated as made with the consent of the Secretary, and (iii) such change shall be applied only on a cut-off basis for such expenditures and no adjustments under section 481(a) shall be made. (C) Regulations.--The Secretary of the Treasury (or the Secretary's delegate) shall [[Page S3723]] publish such guidance or regulations as may be necessary to carry out the purposes of this paragraph, including regulations or guidance allowing for the deduction allowed under subparagraph (A) in the case of taxpayers with taxable years beginning after December 31, 2024, and ending before the date of the enactment of this Act. SEC. 70303. MODIFICATION OF LIMITATION ON BUSINESS INTEREST. (a) In General.--Section 163(j)(8)(A)(v) is amended by striking ``in the case of taxable years beginning before January 1, 2022,''. (b) Floor Plan Financing Applicable to Certain Trailers and Campers.--Section 163(j)(9)(C) is amended by adding at the end the following new flush sentence: ``Such term shall also include any trailer or camper which is designed to provide temporary living quarters for recreational, camping, or seasonal use and is designed to be towed by, or affixed to, a motor vehicle.''. (c) Effective Date and Special Rule.-- (1) In general.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. (2) Special rule for short taxable years.--The Secretary of the Treasury (or the Secretary's delegate) may prescribe such rules as are necessary or appropriate to provide for the application of the amendments made by this section in the case of any taxable year of less than 12 months that begins after December 31, 2024, and ends before the date of the enactment of this Act. SEC. 70304. EXTENSION AND ENHANCEMENT OF PAID FAMILY AND MEDICAL LEAVE CREDIT. (a) In General.--Section 45S is amended-- (1) in subsection (a)-- (A) by striking paragraph (1) and inserting the following: ``(1) In general.--For purposes of section 38, in the case of an eligible employer, the paid family and medical leave credit is an amount equal to either of the following (as elected by such employer): ``(A) The applicable percentage of the amount of wages paid to qualifying employees with respect to any period in which such employees are on family and medical leave. ``(B) If such employer has an insurance policy with regards to the provision of paid family and medical leave which is in force during the taxable year, the applicable percentage of the total amount of premiums paid or incurred by such employer during such taxable year with respect to such insurance policy.'', and (B) by adding at the end the following: ``(3) Rate of payment determined without regard to whether leave is taken.--For purposes of determining the applicable percentage with respect to paragraph (1)(B), the rate of payment under the insurance policy shall be determined without regard to whether any qualifying employees were on family and medical leave during the taxable year.'', (2) in subsection (b)(1), by striking ``credit allowed'' and inserting ``wages taken into account'', (3) in subsection (c), by striking paragraphs (3) and (4) and inserting the following: ``(3) Aggregation rule.-- ``(A) In general.--Except as provided in subparagraph (B), all persons which are treated as a single employer under subsections (b) and (c) of section 414 shall be treated as a single employer. ``(B) Exception.-- ``(i) In general.--Subparagraph (A) shall not apply to any person who establishes to the satisfaction of the Secretary that such person has a substantial and legitimate business reason for failing to provide a written policy described in paragraph (1) or (2). ``(ii) Substantial and legitimate business reason.--For purposes of clause (i), the term `substantial and legitimate business reason' shall not include the operation of a separate line of business, the rate of wages or category of jobs for employees (or any similar basis), or the application of State or local laws relating to family and medical leave, but may include the grouping of employees of a common law employer. ``(4) Treatment of benefits mandated or paid for by state or local governments.--For purposes of this section, any leave which is paid by a State or local government or required by State or local law-- ``(A) except as provided in subparagraph (B), shall be taken into account in determining the amount of paid family and medical leave provided by the employer, and ``(B) shall not be taken into account in determining the amount of the paid family and medical leave credit under subsection (a).'', (4) in subsection (d)-- (A) in paragraph (1), by inserting ``(or, at the election of the employer, for not less than 6 months)'' after ``1 year or more'', (B) in paragraph (2)-- (i) by inserting ``, as determined on an annualized basis (pro-rata for part-time employees),'' after ``compensation'', and (ii) by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following: ``(3) is customarily employed for not less than 20 hours per week.'', and (5) by striking subsection (i). (b) No Double Benefit.--Section 280C(a) is amended-- (1) by striking ``45S(a)'' and inserting ``45S(a)(1)(A)'', and (2) by inserting after the first sentence the following: ``No deduction shall be allowed for that portion of the premiums paid or incurred for the taxable year which is equal to that portion of the paid family and medical leave credit which is determined for the taxable year under section 45S(a)(1)(B).''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70305. EXCEPTIONS FROM LIMITATIONS ON DEDUCTION FOR BUSINESS MEALS. (a) Exception to Denial of Deduction for Business Meals.-- Section 274(o), as added by section 13304 of Public Law 115- 97, is amended by striking ``No deduction'' and inserting ``Except in the case of an expense described in subsection (e)(8) or (n)(2)(C), no deduction''. (b) Meals Provided on Certain Fishing Boats and at Certain Fish Processing Facilities Not Subject to 50 Percent Limitation.--Section 274(n)(2)(C) of the Internal Revenue Code of 1986 is amended by striking ``or'' at the end of clause (iii) and by adding at the end the following new clause: ``(v) provided-- ``(I) on a fishing vessel, fish processing vessel, or fish tender vessel (as such terms are defined in section 2101 of title 46, United States Code), or ``(II) at a facility for the processing of fish for commercial use or consumption which-- ``(aa) is located in the United States north of 50 degrees north latitude, and ``(bb) is not located in a metropolitan statistical area (within the meaning of section 143(k)(2)(B)), or''. (c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred after December 31, 2025. SEC. 70306. INCREASED DOLLAR LIMITATIONS FOR EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS. (a) In General.--Section 179(b) is amended-- (1) in paragraph (1), by striking ``$1,000,000'' and inserting ``$2,500,000'', and (2) in paragraph (2), by striking ``$2,500,000'' and inserting ``$4,000,000''. (b) Conforming Amendments.--Section 179(b)(6)(A) is amended-- (1) by inserting ``(2025 in the case of the dollar amounts in paragraphs (1) and (2))'' after ``In the case of any taxable year beginning after 2018'', and (2) in clause (ii), by striking ``determined by substituting `calendar year 2017' for `calendar year 2016' in subparagraph (A)(ii) thereof.'' and inserting "determined by substituting in subparagraph (A)(ii) thereof-- `` ``(I) in the case of amounts in paragraphs (1) and (2), `calendar year 2024' for `calendar year 2016', and ``(II) in the case of the amount in paragraph (5)(A), `calendar year 2017' for `calendar year 2016'.''. (c) Effective Date.--The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2024. SEC. 70307. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED PRODUCTION PROPERTY. (a) In General.--Section 168 is amended by adding at the end the following new subsection: ``(n) Special Allowance for Qualified Production Property.-- ``(1) In general.--In the case of any qualified production property of a taxpayer making an election under this subsection-- ``(A) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 100 percent of the adjusted basis of the qualified production property, and ``(B) the adjusted basis of the qualified production property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year. ``(2) Qualified production property.--For purposes of this subsection-- ``(A) In general.--The term `qualified production property' means that portion of any nonresidential real property-- ``(i) to which this section applies, ``(ii) which is used by the taxpayer as an integral part of a qualified production activity, ``(iii) which is placed in service in the United States or any possession of the United States, ``(iv) the original use of which commences with the taxpayer, ``(v) the construction of which begins after January 19, 2025, and before January 1, 2029, ``(vi) which is designated by the taxpayer in the election made under this subsection, and ``(vii) which is placed in service before January 1, 2031. For purposes of clause (ii), in the case of property with respect to which the taxpayer is a lessor, property used by a lessee shall not be considered to be used by the taxpayer as part of a qualified production activity. ``(B) Special rule for certain property not previously used in qualified production activities.-- ``(i) In general.--In the case of property acquired by the taxpayer during the period described in subparagraph (A)(v), the requirements of clauses (iv) and (v) of subparagraph (A) shall be treated as satisfied if-- ``(I) such property was not used in a qualified production activity (determined without regard to the second sentence of subparagraph (D)) by any person at any time during the period beginning on January 1, 2021, and ending on May 12, 2025, [[Page S3724]] ``(II) such property was not used by the taxpayer at any time prior to such acquisition, and ``(III) the acquisition of such property meets the requirements of paragraphs (2)(A), (2)(B), (2)(C), and (3) of section 179(d). ``(ii) Written binding contracts.--For purposes of determining under clause (i)-- ``(I) whether such property is acquired before the period described in subparagraph (A)(v), such property shall be treated as acquired not later than the date on which the taxpayer enters into a written binding contract for such acquisition, and ``(II) whether such property is acquired after such period, such property shall be treated as acquired not earlier than such date. ``(C) Exclusion of office space, etc.--The term `qualified production property' shall not include that portion of any nonresidential real property which is used for offices, administrative services, lodging, parking, sales activities, research activities, software development or engineering activities, or other functions unrelated to the manufacturing, production, or refining of tangible personal property. ``(D) Qualified production activity.--The term `qualified production activity' means the manufacturing, production, or refining of a qualified product. The activities of any taxpayer do not constitute manufacturing, production, or refining of a qualified product unless the activities of such taxpayer result in a substantial transformation of the property comprising the product. ``(E) Production.--The term `production' shall not include activities other than agricultural production and chemical production. ``(F) Qualified product.--The term `qualified product' means any tangible personal property if such property is not a food or beverage prepared in the same building as a retail establishment in which such property is sold. ``(G) Syndication.--For purposes of subparagraph (A)(iv), rules similar to the rules of subsection (k)(2)(E)(iii) shall apply. ``(H) Extension of placed in service date under certain circumstances.--The Secretary may extend the date under subparagraph (A)(vii) with respect to any property that meets the requirements of clauses (i) through (vi) of subparagraph (A) if the Secretary determines that an act of God (as defined in section 101(1) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980) prevents the taxpayer from placing such property in service before such date. ``(3) Deduction allowed in computing minimum tax.--For purposes of determining alternative minimum taxable income under section 55, the deduction under section 167 for qualified production property shall be determined under this section without regard to any adjustment under section 56. ``(4) Coordination with certain other provisions.-- ``(A) Other special depreciation allowances.--For purposes of subsections (k)(7), (l)(3)(D), and (m)(2)(B)(iii)-- ``(i) qualified production property shall be treated as a separate class of property, and ``(ii) the taxpayer shall be treated as having made an election under such subsections with respect to such class. ``(B) Alternative depreciation property.--The term `qualified production property' shall not include any property to which the alternative depreciation system under subsection (g) applies. For purposes of subsection (g)(7)(A), qualified production property to which this subsection applies shall be treated as separate nonresidential real property. ``(5) Recapture.--If, at any time during the 10-year period beginning on the date that any qualified production property is placed in service by the taxpayer, such property ceases to be used as described in paragraph (2)(A)(ii) and is used by the taxpayer in a productive use not described in paragraph (2)(A)(ii)-- ``(A) section 1245 shall be applied-- ``(i) by treating such property as having been disposed of by the taxpayer as of the first time such property is so used in a productive use not described in paragraph (2)(A)(ii), and ``(ii) by treating the amount described in subparagraph (B) of section 1245(a)(1) with respect to such disposition as being not less than the amount described in subparagraph (A) of such section, and ``(B) the basis of the taxpayer in such property, and the taxpayer's allowance for depreciation with respect to such property, shall be appropriately adjusted to take into account amounts recognized by reason of subparagraph (A). ``(6) Election.-- ``(A) In general.--An election under this subsection for any taxable year shall-- ``(i) specify the nonresidential real property subject to the election and the portion of such property designated under paragraph (2)(A)(vi), and ``(ii) except as otherwise provided by the Secretary, be made on the taxpayer's return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may prescribe by regulations or other guidance. ``(B) Election.--Any election made under this subsection, and any specification contained in any such election, may not be revoked except with the consent of the Secretary (and the Secretary shall provide such consent only in extraordinary circumstances). ``(7) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance-- ``(A) providing rules for regarding what constitutes substantial transformation of property which are consistent with guidance provided under section 954(d), and ``(B) providing for the application of paragraph (5) with respect to a change in use described in such paragraph by a transferee following a fully or partially tax free transfer of qualified production property.''. (b) Treatment of Qualified Production Property as Section 1245 Property.--Section 1245(a)(3) is amended by striking ``or'' at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting ``, or'', and by adding at the end the following new subparagraph: ``(G) any qualified production property (as defined in section 168(n)(2)).''. (c) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. SEC. 70308. ENHANCEMENT OF ADVANCED MANUFACTURING INVESTMENT CREDIT. (a) In General.--Section 48D(a) is amended by striking ``25 percent'' and inserting ``35 percent''. (b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2025. SEC. 70309. SPACEPORTS ARE TREATED LIKE AIRPORTS UNDER EXEMPT FACILITY BOND RULES. (a) In General.--Section 142(a)(1) is amended to read as follows: ``(1) airports and spaceports,''. (b) Treatment of Ground Leases.--Section 142(b)(1) is amended by adding at the end the following new subparagraph: ``(C) Special rule for spaceport ground leases.--For purposes of subparagraph (A), spaceport property located on land leased by a governmental unit from the United States shall not fail to be treated as owned by a governmental unit if the requirements of this paragraph are met by the lease and any subleases of the property.''. (c) Definition of Spaceport.--Section 142 is amended by adding at the end the following new subsection: ``(p) Spaceport.-- ``(1) In general.--For purposes of subsection (a)(1), the term `spaceport' means any facility located at or in close proximity to a launch site or reentry site used for-- ``(A) manufacturing, assembling, or repairing spacecraft, space cargo, other facilities described in this paragraph, or any component of the foregoing, ``(B) flight control operations, ``(C) providing launch services and reentry services, or ``(D) transferring crew, spaceflight participants, or space cargo to or from spacecraft. ``(2) Additional terms.--For purposes of paragraph (1)-- ``(A) Space cargo.--The term `space cargo' includes satellites, scientific experiments, other property transported into space, and any other type of payload, whether or not such property returns from space. ``(B) Spacecraft.--The term `spacecraft' means a launch vehicle or a reentry vehicle. ``(C) Other terms.--The terms `launch site', `crew', `space flight participant', `launch services', `launch vehicle', `payload', `reentry services', `reentry site', a `reentry vehicle' shall have the respective meanings given to such terms by section 50902 of title 51, United States Code (as in effect on the date of enactment of this subsection). ``(3) Public use requirement.--Notwithstanding any other provision of law, a facility shall not be required to be available for use by the general public to be treated as a spaceport for purposes of this section. ``(4) Manufacturing facilities and industrial parks allowed.--With respect to spaceports, subsection (c)(2)(E) shall not apply to spaceport property described in paragraph (1)(A).''. (d) Exception From Federally Guaranteed Bond Prohibition.-- Section 149(b)(3) is amended by adding at the end the following new subparagraph: ``(F) Exception for spaceports.--A bond shall not be treated as federally guaranteed merely because of the payment of rent, user fees, or other charges by the United States (or any agency or instrumentality thereof) in exchange for the use of the spaceport by the United States (or any agency or instrumentality thereof).''. (e) Conforming Amendment.--The heading for section 142(c) is amended by inserting ``Spaceports,'' after ``Airports,''. (f) Effective Date.--The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. Subchapter B--Permanent America-first International Tax Reforms PART I--FOREIGN TAX CREDIT SEC. 70311. MODIFICATIONS RELATED TO FOREIGN TAX CREDIT LIMITATION. (a) Rules for Allocation of Certain Deductions to Foreign Source Net CFC Tested Income for Purposes of Foreign Tax Credit Limitation.--Section 904(b) is amended by adding at the end the following new paragraph: ``(5) Deductions treated as allocable to foreign source net cfc tested income.-- [[Page S3725]] Solely for purposes of the application of subsection (a) with respect to amounts described in subsection (d)(1)(A), the taxpayer's taxable income from sources without the United States shall be determined by allocating and apportioning-- ``(A) any deduction allowed under section 250(a)(1)(B) (and any deduction allowed under section 164(a)(3) for taxes imposed on amounts described in section 250(a)(1)(B)) to such income, ``(B) no amount of interest expense or research and experimental expenditures to such income, and ``(C) any other deduction to such income only if such deduction is directly allocable to such income. Any amount or deduction which would (but for subparagraphs (B) and (C)) have been allocated or apportioned to such income shall only be allocated or apportioned to income which is from sources within the United States.''. (b) Other Modifications.-- (1) Section 904(d)(2)(H)(i) is amended by striking ``paragraph (1)(B)'' and inserting ``paragraph (1)(D)''. (2) Section 904(d)(4)(C)(ii) is amended by striking ``paragraph (1)(A)'' and inserting ``paragraph (1)(C)''. (3) Section 951A(f)(1)(A) is amended by striking ``904(h)(1)'' and inserting ``904(h)''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70312. MODIFICATIONS TO DETERMINATION OF DEEMED PAID CREDIT FOR TAXES PROPERLY ATTRIBUTABLE TO TESTED INCOME. (a) Increase in Deemed Paid Credit.-- (1) In general.--Section 960(d)(1) is amended by striking ``80 percent'' and inserting ``90 percent''. (2) Gross up for deemed paid foreign tax credit.--Section 78 is amended-- (A) by striking ``subsections (a), (b), and (d)'' and inserting ``subsections (a) and (d)'', and (B) by striking ``80 percent'' and inserting ``90 percent''. (b) Disallowance of Foreign Tax Credit With Respect to Distributions of Previously Taxed Net CFC Tested Income.-- Section 960(d) is amended by adding at the end the following new paragraph: ``(4) Disallowance of foreign tax credit with respect to distributions of previously taxed net cfc tested income.--No credit shall be allowed under section 901 for 10 percent of any foreign income taxes paid or accrued (or deemed paid under subsection (b)(1)) with respect to any amount excluded from gross income under section 959(a) by reason of an inclusion in gross income under section 951A(a).''. (c) Effective Dates.-- (1) In general.--The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2025. (2) Disallowance.--The amendment made by subsection (b) shall apply to amounts distributed after June 28, 2025. SEC. 70313. SOURCING CERTAIN INCOME FROM THE SALE OF INVENTORY PRODUCED IN THE UNITED STATES. (a) In General.--Section 904(b), as amended by section 70311, is amended by adding at the end the following new paragraph: ``(6) Source rules for certain inventory produced in the united states and sold through foreign branches.--For purposes of this section, if a United States person maintains an office or other fixed place of business in a foreign country (determined under rules similar to the rules of section 864(c)(5)), the portion of income which-- ``(A) is from the sale or exchange outside the United States of inventory property (within the meaning of section 865(i)(1))-- ``(i) which is produced in the United States, ``(ii) which is for use outside the United States, and ``(iii) to which the third sentence of section 863(b) applies, and ``(B) is attributable (determined under rules similar to the rules of section 864(c)(5)) to such office or other fixed place of business, shall be treated as from sources without the United States, except that the amount so treated shall not exceed 50 percent of the income from the sale or exchange of such inventory property.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. PART II--FOREIGN-DERIVED DEDUCTION ELIGIBLE INCOME AND NET CFC TESTED INCOME SEC. 70321. MODIFICATION OF DEDUCTION FOR FOREIGN-DERIVED DEDUCTION ELIGIBLE INCOME AND NET CFC TESTED INCOME. (a) In General.--Section 250(a) is amended-- (1) by striking ``37.5 percent'' in paragraph (1)(A) and inserting ``33.34 percent'', (2) by striking ``50 percent'' in paragraph (1)(B) and inserting ``40 percent'', and (3) by striking paragraph (3). (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70322. DETERMINATION OF DEDUCTION ELIGIBLE INCOME. (a) Sales or Other Dispositions of Certain Property.-- (1) In general.--Section 250(b)(3)(A)(i) is amended-- (A) by striking ``and'' at the end of subclause (V), (B) by striking ``over'' at the end of subclause (VI) and inserting ``and'', and (C) by adding at the end the following new subclause: ``(VII) except as otherwise provided by the Secretary, any income and gain from the sale or other disposition (including pursuant to a transaction subject to section 367(d)) of-- ``(aa) intangible property (as defined in section 367(d)(4)), and ``(bb) any other property of a type that is subject to depreciation, amortization, or depletion by the seller, over''. (2) Conforming amendment.--Section 250(b)(5)(E) is amended by inserting ``(other than paragraph (3)(A)(i)(VII))'' after ``For purposes of this subsection''. (3) Effective date.--The amendments made by this subsection shall apply to sales or other dispositions (including pursuant to a transaction subject to section 367(d) of the Internal Revenue Code of 1986) occurring after June 16, 2025. (b) Expense Apportionment Limited to Properly Allocable Expenses.-- (1) In general.--Section 250(b)(3)(A)(ii) is amended to read as follows: ``(ii) expenses and deductions (including taxes), other than interest expense and research or experimental expenditures, properly allocable to such gross income.''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2025. SEC. 70323. RULES RELATED TO DEEMED INTANGIBLE INCOME. (a) Taxation of Net CFC Tested Income.-- (1) In general.--Section 951A(a) is amended by striking ``global intangible low-taxed income'' and inserting ``net CFC tested income''. (2) Repeal of tax-free deemed return on foreign investments.--Section 951A, as amended by the preceding provisions of this Act, is amended by striking subsections (b) and (d) and by redesignating subsections (c), (e), and (f) as subsections (b), (c), and (d), respectively. (3) Conforming amendments.-- (A)(i) Section 250 is amended by striking ``global intangible low-taxed income'' each place it appears in subsections (a)(1)(B)(i), (a)(2), and (b)(3)(A)(i)(II) and inserting ``net CFC tested income''. (ii) The heading for section 250 of such Code is amended by striking ``global intangible low-taxed income'' and inserting ``net cfc tested income''. (iii) The item relating to section 250 in the table of sections for part VII of subchapter B of chapter 1 of such Code is amended by striking ``global intangible low-taxed income'' and inserting ``net CFC tested income''. (B) Section 951A(c)(1), as redesignated by paragraph (2), is amended by striking ``subsections (b), (c)(1)(A), and (c)(1)(B)'' and inserting ``subsections (b)(1)(A) and (b)(1)(B)''. (C) Section 951A(d), as redesignated by paragraph (2), is amended-- (i) by striking ``global intangible low-taxed income'' each place it appears and inserting ``net CFC tested income'', and (ii) by striking ``subsection (c)(1)(A)'' in paragraph (2)(B)(ii) and inserting ``subsection (b)(1)(A)''. (D) Section 960(d)(2) is amended-- (i) by striking ``global intangible low-taxed income'' in subparagraph (A) and inserting ``net CFC tested income'', and (ii) by striking ``section 951A(c)(1)(A)'' in subparagraph (B) and inserting ``section 951A(b)(1)(A)''. (E)(i) The heading for section 951A is amended by striking ``global intangible low-taxed income'' and inserting ``net cfc tested income''. (ii) The item relating to section 951A in the table of sections for subpart F of part III of subchapter N of chapter 1 is amended by striking ``Global intangible low-taxed income'' and inserting ``Net CFC tested income''. (b) Deduction for Foreign-derived Deduction Eligible Income.-- (1) In general.--Section 250(a)(1)(A) is amended by striking ``foreign-derived intangible income'' and inserting ``foreign-derived deduction eligible income''. (2) Conforming amendments.-- (A) Section 250(a)(2) is amended by striking ``foreign- derived intangible income'' each place it appears and inserting ``foreign-derived deduction eligible income''. (B) Section 250(b), as amended by subsection (a), is amended-- (i) by striking paragraphs (1) and (2), (ii) by redesignating paragraphs (4) and (5) as paragraphs (1) and (2), respectively, and by moving such paragraphs before paragraph (3), (iii) in paragraph (2)(B)(ii), as so redesignated, by striking ``paragraph (4)(B)'' and inserting ``paragraph (1)(B)'', and (iv) by striking ``Intangible'' in the heading thereof and inserting ``Deduction Eligible''. (C)(i) The heading for section 250 is amended by striking ``intangible'' in the heading thereof and inserting ``deduction eligible''. (ii) The heading for section 172(d)(9) is amended by striking ``intangible'' and inserting ``deduction eligible''. (iii) The item relating to section 250 in the table of sections for part VIII of subchapter B of chapter 1 is amended by striking ``intangible'' and inserting ``deduction eligible''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. [[Page S3726]] PART III--BASE EROSION MINIMUM TAX SEC. 70331. EXTENSION AND MODIFICATION OF BASE EROSION MINIMUM TAX AMOUNT. (a) In General.--Section 59A(b) is amended-- (1) by striking ``10 percent'' in paragraph (1) and inserting ``10.5 percent'', and (2) by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (b) Conforming Amendments.-- (1) Section 59A(b)(1) is amended by striking ``Except as provided in paragraphs (2) and (3)'' and inserting ``Except as provided in paragraph (2)''. (2) Section 59A(b)(2), as redesignated by subsection (a)(2), is amended by striking ``the percentage otherwise in effect under paragraphs (1)(A) and (2)(A) shall each be increased'' and inserting ``the percentages otherwise in effect under paragraph (1)(A) shall be increased''. (3) Section 59A(e)(1)(C) is amended by striking ``in the case of a taxpayer described in subsection (b)(3)(B)'' and inserting ``in the case of a taxpayer described in subsection (b)(2)(B)''. (c) Other Modifications.-- (1) Section 59A(b)(2)(B)(ii), as redesignated by subsection (a)(2), is amended by striking ``registered securities dealer'' and inserting ``securities dealer registered''. (2) Section 59A(h)(2)(B) is amended by striking ``section 6038B(b)(2)'' and inserting ``section 6038A(b)(2)''. (3) Section 59A(i)(2) is amended-- (A) by striking ``subsection (g)'' and inserting ``subsection (h)'', and (B) by striking ``subsection (g)(3)'' and inserting ``subsection (h)(3)''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART IV--BUSINESS INTEREST LIMITATION SEC. 70341. COORDINATION OF BUSINESS INTEREST LIMITATION WITH INTEREST CAPITALIZATION PROVISIONS. (a) In General.--Section 163(j) is amended by redesignating paragraphs (10) and (11) as paragraphs (11) and (12) and by inserting after paragraph (9) the following: ``(10) Coordination with interest capitalization provisions.-- ``(A) In general.--In applying this subsection-- ``(i) the limitation under paragraph (1) shall apply to business interest without regard to whether the taxpayer would otherwise deduct such business interest or capitalize such business interest under an interest capitalization provision, and ``(ii) any reference in this subsection to a deduction for business interest shall be treated as including a reference to the capitalization of business interest. ``(B) Amount allowed applied first to capitalized interest.--The amount allowed after taking into account the limitation described in paragraph (1)-- ``(i) shall be applied first to the aggregate amount of business interest which would otherwise be capitalized, and ``(ii) the remainder (if any) shall be applied to the aggregate amount of business interest which would be deducted. ``(C) Treatment of disallowed interest carried forward.--No portion of any business interest carried forward under paragraph (2) from any taxable year to any succeeding taxable year shall, for purposes of this title (including any interest capitalization provision which previously applied to such portion) be treated as interest to which an interest capitalization provision applies. ``(D) Interest capitalization provision.--For purposes of this section, the term `interest capitalization provision' means any provision of this subtitle under which interest-- ``(i) is required to be charged to capital account, or ``(ii) may be deducted or charged to capital account.''. (b) Certain Capitalized Interest Not Treated as Business Interest.--Section 163(j)(5) is amended by adding at the end the following new sentence: ``Such term shall not include any interest which is capitalized under section 263(g) or 263A(f).''. (c) Regulatory Authority.--Section 163(j), as amended by subsection (a), is amended by redesignating paragraphs (11) and (12) as paragraphs (12) and (13) and by inserting after paragraph (10) the following: ``(11) Regulatory authority.--The Secretary shall issue such regulations or guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or guidance to determine which business interest is taken into account under this subsection and section 59A(c)(3).''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70342. DEFINITION OF ADJUSTED TAXABLE INCOME FOR BUSINESS INTEREST LIMITATION. (a) In General.--Subparagraph (A) of section 163(j)(8) is amended-- (1) by striking ``and'' at the end of clause (iv), and (2) by adding at the end the following new clause: ``(vi) the amounts included in gross income under sections 951(a), 951A(a), and 78 (and the portion of the deductions allowed under sections 245A(a) (by reason of section 964(e)(4)) and 250(a)(1)(B) by reason of such inclusions), and''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART V--OTHER INTERNATIONAL TAX REFORMS SEC. 70351. PERMANENT EXTENSION OF LOOK-THRU RULE FOR RELATED CONTROLLED FOREIGN CORPORATIONS. (a) In General.--Section 954(c)(6)(C) is amended by striking ``and before January 1, 2026,''. (b) Effective Date.--The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025. SEC. 70352. REPEAL OF ELECTION FOR 1-MONTH DEFERRAL IN DETERMINATION OF TAXABLE YEAR OF SPECIFIED FOREIGN CORPORATIONS. (a) In General.--Section 898(c) is amended by striking paragraph (2) and redesignating paragraph (3) as paragraph (2). (b) Effective Date.--The amendments made by this section shall apply to taxable years of specified foreign corporations beginning after November 30, 2025. (c) Transition Rule.-- (1) In general.--In the case of a corporation that is a specified foreign corporation as of November 30, 2025, such corporation's first taxable year beginning after such date shall end at the same time as the first required year (within the meaning of section 898(c)(1) of the Internal Revenue Code of 1986) ending after such date. If any specified foreign corporation is required by the amendments made by this section to change its taxable year for its first taxable year beginning after November 30, 2025-- (A) such change shall be treated as initiated by such corporation, (B) such change shall be treated as having been made with the consent of the Secretary, and (C) the Secretary shall issue regulations or other guidance for allocating foreign taxes that are paid or accrued in such first taxable year and the succeeding taxable year among such taxable years in the manner the Secretary determines appropriate to carry out the purposes of this section. (2) Secretary.--For purposes of this subsection, the term ``Secretary'' means the Secretary of the Treasury or the Secretary's delegate. SEC. 70353. RESTORATION OF LIMITATION ON DOWNWARD ATTRIBUTION OF STOCK OWNERSHIP IN APPLYING CONSTRUCTIVE OWNERSHIP RULES. (a) In General.--Section 958(b) is amended-- (1) by inserting after paragraph (3) the following: ``(4) Subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States person.'', and (2) by striking ``Paragraph (1)'' in the last sentence and inserting ``Paragraphs (1) and (4)''. (b) Foreign Controlled United States Shareholders.--Subpart F of part III of subchapter N of chapter 1 is amended by inserting after section 951A the following new section: ``SEC. 951B. AMOUNTS INCLUDED IN GROSS INCOME OF FOREIGN CONTROLLED UNITED STATES SHAREHOLDERS. ``(a) In General.--In the case of any foreign controlled United States shareholder of a foreign controlled foreign corporation-- ``(1) this subpart (other than sections 951A, 951(b), and 957) shall be applied with respect to such shareholder (separately from, and in addition to, the application of this subpart without regard to this section)-- ``(A) by substituting `foreign controlled United States shareholder' for `United States shareholder' each place it appears therein, and ``(B) by substituting `foreign controlled foreign corporation' for `controlled foreign corporation' each place it appears therein, and ``(2) section 951A (and such other provisions of this subpart as provided by the Secretary) shall be applied with respect to such shareholder-- ``(A) by treating each reference to `United States shareholder' in such section as including a reference to such shareholder, and ``(B) by treating each reference to `controlled foreign corporation' in such section as including a reference to such foreign controlled foreign corporation. ``(b) Foreign Controlled United States Shareholder.--For purposes of this section, the term `foreign controlled United States shareholder' means, with respect to any foreign corporation, any United States person which would be a United States shareholder with respect to such foreign corporation if-- ``(1) section 951(b) were applied by substituting `more than 50 percent' for `10 percent or more', and ``(2) section 958(b) were applied without regard to paragraph (4) thereof. ``(c) Foreign Controlled Foreign Corporation.--For purposes of this section, the term `foreign controlled foreign corporation' means a foreign corporation, other than a controlled foreign corporation, which would be a controlled foreign corporation if section 957(a) were applied-- ``(1) by substituting `foreign controlled United States shareholders' for `United States shareholders', and ``(2) by substituting `section 958(b) (other than paragraph (4) thereof)' for `section 958(b)'. ``(d) Regulations.--The Secretary shall prescribe such regulations or other guidance [[Page S3727]] as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance-- ``(1) to treat a foreign controlled United States shareholder or a foreign controlled foreign corporation as a United States shareholder or as a controlled foreign corporation, respectively, for purposes of provisions of this title other than this subpart (including any reporting requirement), and ``(2) with respect to the treatment of foreign controlled foreign corporations that are passive foreign investment companies (as defined in section 1297).''. (c) Clerical Amendment.--The table of sections for subpart F of part III of subchapter N of chapter 1 is amended by inserting after the item relating to section 951A the following new item: ``Sec. 951B. Amounts included in gross income of foreign controlled United States shareholders.''. (d) Effective Date.--The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025. (e) Special Rule.-- (1) In general.--Except to the extent provided by the Secretary of the Treasury (or the Secretary's delegate), the effective date of any amendment to the Internal Revenue Code of 1986 shall be applied by treating references to United States shareholders as references to foreign controlled United States shareholders, and by treating references to controlled foreign corporations as references to foreign controlled foreign corporations. (2) Definitions.--Any term used in paragraph (1) which is used in subpart F of part III of subchapter N of chapter 1 of the Internal Revenue Code of 1986 (as amended by this section) shall have the meaning given such term in such subpart. (f) No Inference.--The amendments made by this section shall not be construed to create any inference with respect to the proper application of any provision of the Internal Revenue Code of 1986 with respect to taxable years beginning before the taxable years to which such amendments apply. SEC. 70354. MODIFICATIONS TO PRO RATA SHARE RULES. (a) In General.--Subsection (a) of section 951 is amended to read as follows: ``(a) Amounts Included.-- ``(1) In general.--If a foreign corporation is a controlled foreign corporation at any time during a taxable year of the foreign corporation (in this subsection referred to as the `CFC year')-- ``(A) each United States shareholder which owns (within the meaning of section 958(a)) stock in such corporation on any day during the CFC year shall include in gross income such shareholder's pro rata share (determined under paragraph (2)) of the corporation's subpart F income for the CFC year, and ``(B) each United States shareholder which owns (within the meaning of section 958(a)) stock in such corporation on the last day, in the CFC year, on which such corporation is a controlled foreign corporation shall include in gross income the amount determined under section 956 with respect to such shareholder for the CFC year (but only to the extent not excluded from gross income under section 959(a)(2)). ``(2) Pro rata share of subpart f income.--A United States shareholder's pro rata share of a controlled foreign corporation's subpart F income for a CFC year shall be the portion of such income which is attributable to-- ``(A) the stock of such corporation owned (within the meaning of section 958(a)) by such shareholder, and ``(B) any period of the CFC year during which-- ``(i) such shareholder owned (within the meaning of section 958(a)) such stock, ``(ii) such shareholder was a United States shareholder of such corporation, and ``(iii) such corporation was a controlled foreign corporation. ``(3) Taxable year of inclusion.--Any amount required to be included in gross income by a United States shareholder under paragraph (1) with respect to a CFC year shall be included in gross income for the shareholder's taxable year which includes the last day on which the shareholder owns (within the meaning of section 958(a)) stock in the controlled foreign corporation during such CFC year. ``(4) Regulatory authority.--The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance allowing taxpayers to elect, or requiring taxpayers, to close the taxable year of a controlled foreign corporation upon a direct or indirect disposition of stock of such corporation.''. (b) Coordination With Section 951A.--Section 951A(c), as redesignated by section 70323(a)(2), is amended-- (1) in paragraph (1), by striking ``in which or with which the taxable year of the controlled foreign corporation ends'' and inserting ``determined under section 951(a)(3)'', and (2) in paragraph (2), by striking ``the last day in the taxable year of such foreign corporation on which such foreign corporation is a controlled foreign corporation'' and inserting ``any day in such taxable year''. (c) Effective Dates.-- (1) In general.--The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025. (2) Transition rule for dividends.--A dividend paid (or deemed paid) by a controlled foreign corporation shall not be treated as a dividend for purposes of applying section 951(a)(2)(B) of the Internal Revenue Code of 1986 (as in effect before the amendments made by this section) if-- (A) such dividend-- (i) was paid (or deemed paid) on or before June 28, 2025, during the taxable year of such controlled foreign corporation which includes such date and the United States shareholder described in section 951(a)(1) of such Code (as so in effect) did not own (within the meaning of section 958(a) of such Code) the stock of such controlled foreign corporation during the portion of such taxable year on or before June 28, 2025, or (ii) was paid (or deemed paid) after June 28, 2025, and before such controlled foreign corporation's first taxable year beginning after December 31, 2025, and (B) such dividend does not increase the taxable income of a United States person (including by reason of a dividends received deduction, an exclusion from gross income, or an exclusion from subpart F income). CHAPTER 4--INVESTING IN AMERICAN FAMILIES, COMMUNITIES, AND SMALL BUSINESSES Subchapter A--Permanent Investments in Families and Children SEC. 70401. ENHANCEMENT OF EMPLOYER-PROVIDED CHILD CARE CREDIT. (a) Increase of Amount of Qualified Child Care Expenditures Taken Into Account.--Section 45F(a)(1) is amended by striking ``25 percent'' and inserting ``40 percent (50 percent in the case of an eligible small business)''. (b) Increase of Maximum Credit Amount.--Subsection (b) of section 45F is amended to read as follows: ``(b) Dollar Limitation.-- ``(1) In general.--The credit allowable under subsection (a) for any taxable year shall not exceed $500,000 ($600,000 in the case of an eligible small business). ``(2) Inflation adjustment.--In the case of any taxable year beginning after 2026, the $500,0000 and $600,000 amounts in paragraph (1) shall each be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof.''. (c) Eligible Small Business.--Section 45F(c) is amended by adding at the end the following new paragraph: ``(4) Eligible small business.--The term `eligible small business' means a business that meets the gross receipts test of section 448(c), determined-- ``(A) by substituting `5-taxable-year' for `3-taxable-year' in paragraph (1) thereof, and ``(B) by substituting `5-year' for `3-year' in paragraph (3)(A) thereof.''. (d) Credit Allowed for Third-party Intermediaries.--Section 45F(c)(1)(A)(iii) is amended by inserting ``, or under a contract with an intermediate entity that contracts with one or more qualified child care facilities to provide such child care services'' before the period at the end. (e) Treatment of Jointly Owned or Operated Child Care Facility.--Section 45F(c)(2) is amended by adding at the end the following new subparagraph: ``(C) Treatment of jointly owned or operated child care facility.--A facility shall not fail to be treated as a qualified child care facility of the taxpayer merely because such facility is jointly owned or operated by the taxpayer and other persons.''. (f) Regulations and Guidance.--Section 45F is amended by adding at the end the following new subsection: ``(g) Regulations and Guidance.--The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including guidance to carry out the purposes of paragraphs (1)(A)(iii) and (2)(C) of subsection (c).''. (g) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred after December 31, 2025. SEC. 70402. ENHANCEMENT OF ADOPTION CREDIT. (a) In General.--Section 23(a) is amended by adding at the end the following new paragraph: ``(4) Portion of credit refundable.--So much of the credit allowed under paragraph (1) as does not exceed $5,000 shall be treated as a credit allowed under subpart C and not as a credit allowed under this subpart.''. (b) Adjustments for Inflation.--Section 23(h) is amended to read as follows: ``(h) Adjustments for Inflation.-- ``(1) In general.--In the case of a taxable year beginning after December 31, 2002, each of the dollar amounts in paragraphs (3) and (4) of subsection (a) and paragraphs (1) and (2)(A)(i) of subsection (b) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2001' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(2) Rounding.--If any amount as increased under paragraph (1) is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10. ``(3) Special rule for refundable portion.--In the case of the dollar amount in [[Page S3728]] subsection (a)(4), paragraph (1) shall be applied-- ``(A) by substituting `2025' for `2002' in the matter preceding subparagraph (A), and ``(B) by substituting `calendar year 2024' for `calendar year 2001' in subparagraph (B) thereof.''. (c) Exclusion of Refundable Portion of Credit From Carryforward.--Section 23(c)(1) is amended by striking ``credit allowable under subsection (a)'' and inserting ``portion of the credit allowable under subsection (a) which is allowed under this subpart''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70403. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF DETERMINING WHETHER A CHILD HAS SPECIAL NEEDS FOR PURPOSES OF THE ADOPTION CREDIT. (a) In General.--Section 23(d)(3) is amended-- (1) in subparagraph (A), by inserting ``or Indian tribal government'' after ``a State'', and (2) in subparagraph (B), by inserting ``or Indian tribal government'' after ``such State''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70404. ENHANCEMENT OF THE DEPENDENT CARE ASSISTANCE PROGRAM. (a) In General.--Section 129(a)(2)(A) is amended by striking ``$5,000 ($2,500'' and inserting ``$7,500 ($3,750''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70405. ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX CREDIT. (a) In General.--Paragraph (2) of section 21(a) is amended to read as follows: ``(2) Applicable percentage defined.--For purposes of paragraph (1), the term `applicable percentage' means 50 percent-- ``(A) reduced (but not below 35 percent) by 1 percentage point for each $2,000 or fraction thereof by which the taxpayer's adjusted gross income for the taxable year exceeds $15,000, and ``(B) further reduced (but not below 20 percent) by 1 percentage point for each $2,000 ($4,000 in the case of a joint return) or fraction thereof by which the taxpayer's adjusted gross income for the taxable year exceeds $75,000 ($150,000 in the case of a joint return).''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. Subchapter B--Permanent Investments in Students and Reforms to Tax- exempt Institutions SEC. 70411. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP GRANTING ORGANIZATIONS. (a) Allowance of Credit for Contributions of Individuals to Scholarship Granting Organizations.-- (1) In general.--Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25E the following new section: ``SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION SCHOLARSHIPS. ``(a) Allowance of Credit.--In the case of an individual who is a citizen or resident of the United States (within the meaning of section 7701(a)(9)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the aggregate amount of qualified contributions made by the taxpayer during the taxable year. ``(b) Limitations.-- ``(1) In general.--The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed an amount equal to the greater of-- ``(A) 10 percent of the adjusted gross income of the taxpayer for the taxable year, or ``(B) $5,000. ``(2) Allocation of volume cap.--The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed the amount of the volume cap allocated by the Secretary to such taxpayer under subsection (h) with respect to qualified contributions made by the taxpayer during the taxable year. ``(3) Reduction based on state credit.--The amount allowed as a credit under subsection (a) for a taxable year shall be reduced by the amount allowed as a credit on any State tax return of the taxpayer for qualified contributions made by the taxpayer during the taxable year. ``(c) Definitions.--For purposes of this section-- ``(1) Eligible student.--The term `eligible student' means an individual who-- ``(A) is a member of a household with an income which, for the calendar year prior to the date of the application for a scholarship, is not greater than 300 percent of the area median gross income (as such term is used in section 42), and ``(B) is eligible to enroll in a public elementary or secondary school. ``(2) Qualified contribution.--The term `qualified contribution' means a charitable contribution (as defined by section 170(c)) to a scholarship granting organization in the form of cash or publicly traded securities (as defined in section 6050L(a)(2)(B)). ``(3) Qualified elementary or secondary education expense.--The term `qualified elementary or secondary education expense' means the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school: ``(A) Tuition. ``(B) Curriculum and curricular materials. ``(C) Books or other instructional materials. ``(D) Online educational materials. ``(E) Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor does not bear a relationship to the student which is described in section 152(d)(2) and-- ``(i) is licensed as a teacher in any State, ``(ii) has taught at-- ``(I) a public or private elementary or secondary school, or ``(II) an institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))), or ``(iii) is a subject matter expert in the relevant subject. ``(F) Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission. ``(G) Fees for dual enrollment in an institution of higher education. ``(H) Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies, but only if the practitioner or provider does not bear a relationship to the student which is described in section 152(d)(2). ``(4) Scholarship granting organization.--The term `scholarship granting organization' means any organization-- ``(A) which-- ``(i) is described in section 501(c)(3) and exempt from tax under section 501(a), and ``(ii) is not a private foundation, ``(B) substantially all of the activities of which are providing scholarships for qualified elementary or secondary education expenses of eligible students, ``(C) which prevents the co-mingling of qualified contributions with other amounts by maintaining one or more separate accounts exclusively for qualified contributions, ``(D) is approved to operate in the State in which such organization grants scholarships, and ``(E) which satisfies the requirements of subsection (d). ``(d) Requirements for Scholarship Granting Organizations.-- ``(1) In general.--An organization meets the requirements of this subsection if-- ``(A) such organization provides scholarships to 10 or more students who do not all attend the same school, ``(B) such organization spends not less than 90 percent of revenues on scholarships for eligible students, ``(C) such organization does not provide scholarships for any expenses other than qualified elementary or secondary education expenses, ``(D) such organization provides a scholarship to eligible students with a priority for-- ``(i) students awarded a scholarship the previous school year, and ``(ii) after application of clause (i), any eligible students who have a sibling who was awarded a scholarship from such organization, ``(E) such organization does not earmark or set aside contributions for scholarships on behalf of any particular student, ``(F) such organization-- ``(i) verifies the annual household income and family size of eligible students who apply for scholarships in a manner which complies with the requirement described in paragraph (2), and ``(ii) limits the awarding of scholarships to eligible students who are a member of a household for which the income does not exceed the amount established under subsection (c)(1)(A), ``(G) such organization-- ``(i) obtains from an independent certified public accountant annual financial and compliance audits, and ``(ii) certifies to the Secretary (at such time, and in such form and manner, as the Secretary may prescribe) that the audit described in clause (i) has been completed, and ``(H) no officer or board member of such organization has been convicted of a felony. ``(2) Income verification.--The requirement described in this paragraph is that the organization review all of the following documents which are applicable with respect to members of the household of the applicant for the calendar year prior to application for a scholarship: ``(A) Federal and State income tax returns or tax return transcripts with applicable schedules. ``(B) Income reporting statements for tax purposes or wage and income transcripts from the Internal Revenue Service. ``(C) Notarized income verification letter from employers. ``(D) Unemployment or workers compensation statements. ``(E) Benefit verification letters regarding public assistance payments and Supplemental Nutrition Assistance Program payments, including a list of household members. ``(3) Independent certified public accountant.--For purposes of paragraph (1)(F), [[Page S3729]] the term `independent certified public accountant' means, with respect to an organization, a certified public accountant who is not a person described in section 465(b)(3)(A) with respect to such organization or any employee of such organization. ``(4) Prohibition on self-dealing.-- ``(A) In general.--A scholarship granting organization may not award a scholarship to-- ``(i) any disqualified person, or ``(ii) an eligible student if, during the taxable year or the period of the 3 taxable years preceding such taxable year, such scholarship granting organization has received a qualified contribution from an individual who bears a relationship to such student which is described in section 152(d)(2). ``(B) Disqualified person.--For purposes of this paragraph, a disqualified person shall be determined pursuant to rules similar to the rules of section 4946. ``(e) Denial of Double Benefit.--Any qualified contribution for which a credit is allowed under this section shall not be taken into account as a charitable contribution for purposes of section 170. ``(f) Carryforward of Unused Credit.-- ``(1) In general.--If the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section, section 23, and section 25D), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year. ``(2) Limitation.--No credit may be carried forward under this subsection to any taxable year following the fifth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis. ``(g) Rule of Construction.--Nothing in this section shall be construed to permit, allow, encourage, or authorize any Federal control over any aspect of any private or religious school. ``(h) Volume Cap.-- ``(1) In general.--The volume cap applicable under this section shall be $4,000,000,000 for calendar year 2027 and each calendar year thereafter. Such amount shall be allocated by the Secretary as provided in paragraph (2) to taxpayers with respect to qualified contributions made by such taxpayers, except that 10 percent of such amount shall be divided evenly among the States, and shall be available with respect to individuals residing in such States. ``(2) First-come, first-served.--For purposes of applying the volume cap under this section, such volume cap for any calendar year shall be allocated by the Secretary on a first- come, first-served basis, as determined based on the time (during such calendar year) at which the taxpayer made the qualified contribution with respect to which the allocation is made. The Secretary shall not make any allocation of the volume cap for any calendar year after December 31 of such calendar year. ``(3) Real-time information.--For purposes of this section, the Secretary shall develop a system to track the amount of qualified contributions made during the calendar year for which a credit may be claimed under this section, with such information to be updated in real time. ``(4) State.--For purposes of this subsection, the term `State' means only the States and the District of Columbia. ``(i) Regulations and Guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance-- ``(1) providing for enforcement of the requirements under subsection (d)(4), and ``(2) with respect to recordkeeping or information reporting for purposes of administering the requirements of this section.''. (2) Conforming amendments.-- (A) Section 25(e)(1)(C) is amended by striking ``and 25D'' and inserting ``25D, and 25F''. (B) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25E the following new item: ``Sec. 25F. Qualified elementary and secondary education scholarships.''. (b) Exclusion From Gross Income for Scholarships for Qualified Elementary or Secondary Education Expenses of Eligible Students.-- (1) In general.--Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section: ``SEC. 139K. SCHOLARSHIPS FOR QUALIFIED ELEMENTARY OR SECONDARY EDUCATION EXPENSES OF ELIGIBLE STUDENTS. ``(a) In General.--In the case of an individual, gross income shall not include any amounts provided to such individual or any dependent of such individual pursuant to a scholarship for qualified elementary or secondary education expenses of an eligible student which is provided by a scholarship granting organization. ``(b) Definitions.--In this section, the terms `qualified elementary or secondary education expense', `eligible student', and `scholarship granting organization' have the same meaning given such terms under section 25F(c).''. (2) Conforming amendment.--The table of sections for part III of subchapter B of chapter 1 is amended by inserting before the item relating to section 140 the following new item: ``Sec. 139K. Scholarships for qualified elementary or secondary education expenses of eligible students.''. (c) Failure of Scholarship Granting Organizations to Make Distributions.-- (1) In general.--Chapter 42 is amended by adding at the end the following new subchapter: ``Subchapter I--Scholarship Granting Organizations ``Sec. 4969. Failure to distribute receipts. ``SEC. 4969. FAILURE TO DISTRIBUTE RECEIPTS. ``(a) In General.--In the case of any scholarship granting organization (as defined in section 25F) which has been determined by the Secretary to have failed to satisfy the requirement under subsection (b) for any taxable year, any contribution made to such organization during the first taxable year beginning after the date of such determination shall not be treated as a qualified contribution (as defined in section 25F(c)(2)) for purposes of section 25F. ``(b) Requirement.--The requirement described in this subsection is that the amount of receipts of the scholarship granting organization for the taxable year which are distributed before the distribution deadline with respect to such receipts shall not be less than the required distribution amount with respect to such taxable year. ``(c) Definitions.--For purposes of this section-- ``(1) Required distribution amount.-- ``(A) In general.--The required distribution amount with respect to a taxable year is the amount equal to 100 percent of the total receipts of the scholarship granting organization for such taxable year-- ``(i) reduced by the sum of such receipts that are retained for reasonable administrative expenses for the taxable year or are carried to the succeeding taxable year under subparagraph (C), and ``(ii) increased by the amount of the carryover under subparagraph (C) from the preceding taxable year. ``(B) Safe harbor for reasonable administrative expenses.-- For purposes of subparagraph (A)(i), if the percentage of total receipts of a scholarship granting organization for a taxable year which are used for administrative expenses is equal to or less than 10 percent, such expenses shall be deemed to be reasonable for purposes of such subparagraph. ``(C) Carryover.--With respect to the amount of the total receipts of a scholarship granting organization with respect to any taxable year, an amount not greater than 15 percent of such amount may, at the election of such organization, be carried to the succeeding taxable year. ``(2) Distributions.--The term `distribution' includes amounts which are formally committed but not distributed. A formal commitment described in the preceding sentence may include contributions set aside for eligible students for more than one year. ``(3) Distribution deadline.--The distribution deadline with respect to receipts for a taxable year is the first day of the third taxable year following the taxable year in which such receipts are received by the scholarship granting organization. ``(d) Regulations and Guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this section.''. (2) Clerical amendment.--The table of subchapters for chapter 42 is amended by adding at the end the following new item: ``subchapter i--scholarship granting organizations''. (d) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after December 31, 2026. (2) Exclusion from gross income.--The amendments made by subsection (b) shall apply to amounts received after December 31, 2026, in taxable years ending after such date. SEC. 70412. EXCLUSION FOR EMPLOYER PAYMENTS OF STUDENT LOANS. (a) In General.--Section 127(c)(1)(B) is amended by striking ``in the case of payments made before January 1, 2026,''. (b) Inflation Adjustment.--Section 127 is amended-- (1) by redesignating subsection (d) as subsection (e), and (2) by inserting after subsection (c) the following new subsection: ``(d) Inflation Adjustment.-- ``(1) In general.--In the case of any taxable year beginning after 2026, both of the $5,250 amounts in subsection (a)(2) shall each be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(2) Rounding.--If any increase under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.''. [[Page S3730]] (c) Effective Date.--The amendment made by this section shall apply to payments made after December 31, 2025. SEC. 70413. ADDITIONAL EXPENSES TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 ACCOUNTS. (a) In General.-- (1) In general.--Section 529(c)(7) is amended to read as follows: ``(7) Treatment of elementary and secondary tuition.--Any reference in this section to the term `qualified higher education expense' shall include a reference to the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school: ``(A) Tuition. ``(B) Curriculum and curricular materials. ``(C) Books or other instructional materials. ``(D) Online educational materials. ``(E) Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and-- ``(i) is licensed as a teacher in any State, ``(ii) has taught at an eligible educational institution, or ``(iii) is a subject matter expert in the relevant subject. ``(F) Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission. ``(G) Fees for dual enrollment in an institution of higher education. ``(H) Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies.''. (2) Effective date.--The amendment made by this subsection shall apply to distributions made after the date of the enactment of this Act. (b) Increase in Limitation.-- (1) In general.--The last sentence of section 529(e)(3) is amended by striking ``$10,000'' and inserting ``$20,000''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2025. SEC. 70414. CERTAIN POSTSECONDARY CREDENTIALING EXPENSES TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 ACCOUNTS. (a) In General.--Section 529(e)(3) is amended by adding at the end the following new subparagraph: ``(C) Certain postsecondary credentialing expenses.--The term `qualified higher education expenses' includes qualified postsecondary credentialing expenses (as defined in subsection (f)).''. (b) Qualified Postsecondary Credentialing Expenses.-- Section 529 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: ``(f) Qualified Postsecondary Credentialing Expenses.--For purposes of this section-- ``(1) In general.--The term `qualified postsecondary credentialing expenses' means-- ``(A) tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary in a recognized postsecondary credential program, or any other expense incurred in connection with enrollment in or attendance at a recognized postsecondary credential program if such expense would, if incurred in connection with enrollment or attendance at an eligible educational institution, be covered under subsection (e)(3)(A), ``(B) fees for testing if such testing is required to obtain or maintain a recognized postsecondary credential, and ``(C) fees for continuing education if such education is required to maintain a recognized postsecondary credential. ``(2) Recognized postsecondary credential program.--The term `recognized postsecondary credential program' means any program to obtain a recognized postsecondary credential if-- ``(A) such program is included on a State list prepared under section 122(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(d)), ``(B) such program is listed in the public directory of the Web Enabled Approval Management System (WEAMS) of the Veterans Benefits Administration, or successor directory such program, ``(C) an examination (developed or administered by an organization widely recognized as providing reputable credentials in the occupation) is required to obtain or maintain such credential and such organization recognizes such program as providing training or education which prepares individuals to take such examination, or ``(D) such program is identified by the Secretary, after consultation with the Secretary of Labor, as being a reputable program for obtaining a recognized postsecondary credential for purposes of this subparagraph. ``(3) Recognized postsecondary credential.--The term `recognized postsecondary credential' means-- ``(A) any postsecondary employment credential that is industry recognized and is-- ``(i) any postsecondary employment credential issued by a program that is accredited by the Institute for Credentialing Excellence, the National Commission on Certifying Agencies, or the American National Standards Institute, ``(ii) any postsecondary employment credential that is included in the Credentialing Opportunities On-Line (COOL) directory of credentialing programs (or successor directory) maintained by the Department of Defense or by any branch of the Armed Forces, or ``(iii) any postsecondary employment credential identified for purposes of this clause by the Secretary, after consultation with the Secretary of Labor, as being industry recognized, ``(B) any certificate of completion of an apprenticeship that is registered and certified with the Secretary of Labor under the Act of August 16, 1937 (commonly known as the `National Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), ``(C) any occupational or professional license issued or recognized by a State or the Federal Government (and any certification that satisfies a condition for obtaining such a license), and ``(D) any recognized postsecondary credential as defined in section 3(52) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(52)), provided through a program described in paragraph (2)(A).''. (c) Effective Date.--The amendments made by this section shall apply to distributions made after the date of the enactment of this Act. SEC. 70415. MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME OF CERTAIN PRIVATE COLLEGES AND UNIVERSITIES. (a) In General.--Section 4968 is amended to read as follows: ``SEC. 4968. EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE COLLEGES AND UNIVERSITIES. ``(a) Tax Imposed.--There is hereby imposed on each applicable educational institution for the taxable year a tax equal to the applicable percentage of the net investment income of such institution for the taxable year. ``(b) Applicable Percentage.--For purposes of this section, the term `applicable percentage' means-- ``(1) 1.4 percent in the case of an institution with a student adjusted endowment of at least $500,000, and not in excess of $750,000, ``(2) 4 percent in the case of an institution with a student adjusted endowment in excess of $750,000, and not in excess of $2,000,000, and ``(3) 8 percent in the case of an institution with a student adjusted endowment in excess of $2,000,000. ``(c) Applicable Educational Institution.--For purposes of this subchapter, the term `applicable educational institution' means an eligible educational institution (as defined in section 25A(f)(2))-- ``(1) which had at least 3,000 tuition-paying students during the preceding taxable year, ``(2) more than 50 percent of the tuition-paying students of which are located in the United States, ``(3) the student adjusted endowment of which is at least $500,000, and ``(4) which is not described in the first sentence of section 511(a)(2)(B) (relating to State colleges and universities). ``(d) Student Adjusted Endowment.--For purposes of this section, the term `student adjusted endowment' means, with respect to any institution for any taxable year-- ``(1) the aggregate fair market value of the assets of such institution (determined as of the end of the preceding taxable year), other than those assets which are used directly in carrying out the institution's exempt purpose, divided by ``(2) the number of students of such institution. ``(e) Determination of Number of Students.--For purposes of subsections (c) and (d), the number of students of an institution (including for purposes of determining the number of students at a particular location) shall be based on the daily average number of full-time students attending such institution (with part-time students taken into account on a full-time student equivalent basis). ``(f) Net Investment Income.--For purposes of this section-- ``(1) In general.--Net investment income shall be determined under rules similar to the rules of section 4940(c). ``(2) Override of certain regulatory exceptions.-- ``(A) Student loan interest.--Net investment income shall be determined by taking into account any interest income from a student loan made by the applicable educational institution (or any related organization) as gross investment income. ``(B) Federally-subsidized royalty income.-- ``(i) In general.--Net investment income shall be determined by taking into account any Federally-subsidized royalty income as gross investment income. ``(ii) Federally-subsidized royalty income.--For purposes of this subparagraph-- ``(I) In general.--The term `Federally-subsidized royalty income' means any otherwise-regulatory-exempt royalty income if any Federal funds were used in the research, development, or creation of the patent, copyright, or other intellectual or intangible property from which such royalty income is derived. ``(II) Otherwise-regulatory-exempt royalty income.--For purposes of this subparagraph, the term `otherwise- regulatory-exempt royalty income' means royalty income which (but for this subparagraph) would not be taken into account as gross investment [[Page S3731]] income by reason of being derived from patents, copyrights, or other intellectual or intangible property which resulted from the work of students or faculty members in their capacities as such with the applicable educational institution. ``(III) Federal funds.--The term `Federal funds' includes any grant made by, and any payment made under any contract with, any Federal agency to the applicable educational institution, any related organization, or any student or faculty member referred to in subclause (II). ``(g) Assets and Net Investment Income of Related Organizations.-- ``(1) In general.--For purposes of subsections (d) and (f), assets and net investment income of any related organization with respect to an educational institution shall be treated as assets and net investment income, respectively, of the educational institution, except that-- ``(A) no such amount shall be taken into account with respect to more than 1 educational institution, and ``(B) unless such organization is controlled by such institution or is described in section 509(a)(3) with respect to such institution for the taxable year, assets and net investment income which are not intended or available for the use or benefit of the educational institution shall not be taken into account. ``(2) Related organization.--For purposes of this subsection, the term `related organization' means, with respect to an educational institution, any organization which-- ``(A) controls, or is controlled by, such institution, ``(B) is controlled by 1 or more persons which also control such institution, or ``(C) is a supported organization (as defined in section 509(f)(3)), or an organization described in section 509(a)(3), during the taxable year with respect to such institution. ``(h) Regulations.--The Secretary shall prescribe such regulations or other guidance as may be necessary to prevent avoidance of the tax under this section, including regulations or other guidance to prevent avoidance of such tax through the restructuring of endowment funds or other arrangements designed to reduce or eliminate the value of net investment income or assets subject to the tax imposed by this section.''. (b) Requirement to Report Certain Information With Respect to Application of Excise Tax Based on Investment Income of Private Colleges and Universities.--Section 6033 is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection: ``(o) Requirement to Report Certain Information With Respect to Excise Tax Based on Investment Income of Private Colleges and Universities.--Each applicable educational institution described in section 4968(c) which is subject to the requirements of subsection (a) shall include on the return required under subsection (a)-- ``(1) the number of tuition-paying students taken into account under section 4968(c), and ``(2) the number of students of such institution (determined under the rules of section 4968(e)).''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70416. EXPANDING APPLICATION OF TAX ON EXCESS COMPENSATION WITHIN TAX-EXEMPT ORGANIZATIONS. (a) In General.--Section 4960(c)(2) is amended to read as follows: ``(2) Covered employee.--For purposes of this section, the term `covered employee' means any employee of an applicable tax-exempt organization (or any predecessor of such an organization) and any former employee of such an organization (or predecessor) who was such an employee during any taxable year beginning after December 31, 2016.''. (b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2025. Subchapter C--Permanent Investments in Community Development SEC. 70421. PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES. (a) Decennial Designations.-- (1) Determination period.--Section 1400Z-1(c)(2)(B) is amended by striking ``beginning on the date of the enactment of the Tax Cuts and Jobs Act'' and inserting ``beginning on the decennial determination date''. (2) Decennial determination date.--Section 1400Z-1(c)(2) is amended by adding at the end the following new subparagraph: ``(C) Decennial determination date.--The term `decennial determination date' means-- ``(i) July 1, 2026, and ``(ii) each July 1 of the year that is 10 years after the preceding decennial determination date under this subparagraph.''. (3) Repeal of special rule for puerto rico.--Section 1400Z- 1(b) is amended by striking paragraph (3). (4) Limitation on number of designations.--Section 1400Z- 1(d)(1) is amended-- (A) in paragraph (1)-- (i) by striking ``and subsection (b)(3)'', and (ii) by inserting ``during any period'' after ``the number of population census tracts in a State that may be designated as qualified opportunity zones under this section'', and (B) in paragraph (2), by inserting ``during any period'' before the period at the end. (5) Effective dates.-- (A) In general.--Except as provided in paragraph (2), the amendments made by this subsection shall take effect on the date of the enactment of this Act. (B) Puerto rico.--The amendment made by paragraph (3) shall take effect on December 31, 2026. (b) Qualification for Designations.-- (1) Determination of low-income communities.--Section 1400Z-1(c) is amended by striking all that precedes paragraph (2) and inserting the following: ``(c) Other Definitions.--For purposes of this section-- ``(1) Low-income communities.--The term `low-income community' means any population census tract if-- ``(A) such population census tract has a median family income that-- ``(i) in the case of a population census tract not located within a metropolitan area, does not exceed 70 percent of the statewide median family income, or ``(ii) in the case of a population census tract located within a metropolitan area, does not exceed 70 percent of the metropolitan area median family income, or ``(B) such population census tract-- ``(i) has a poverty rate of at least 20 percent, and ``(ii) has a median family income that-- ``(I) in the case of a population census tract not located within a metropolitan area, does not exceed 125 percent of the statewide median family income, or ``(II) in the case of a population census tract located within a metropolitan area, does not exceed 125 percent of the metropolitan area median family income.''. (2) Repeal of rule for contiguous census tracts.--Section 1400Z-1 is amended by striking subsection (e) and by redesignating subsection (f) as subsection (e). (3) Period for which designation is in effect.--Section 1400Z-1(e), as redesignated by paragraph (2), is amended to read as follows: ``(e) Period for Which Designation Is in Effect.-- ``(1) In general.--A designation as a qualified opportunity zone shall remain in effect for the period beginning on the applicable start date and ending on the day before the date that is 10 years after the applicable start date. ``(2) Applicable start date.--For purposes of this section, the term `applicable start date' means, with respect to any qualified opportunity zone designated under this section, the January 1 following the date on which such qualified opportunity zone was certified and designated by the Secretary under subsection (b)(1)(B).''. (4) Effective date.--The amendments made by this subsection shall apply to areas designated under section 1400Z-1 of the Internal Revenue Code of 1986 after the date of the enactment of this Act. (c) Application of Special Rules for Capital Gains.-- (1) Repeal of sunset on election.--Section 1400Z-2(a)(2) is amended to read as follows: ``(2) Election.--No election may be made under paragraph (1) with respect to a sale or exchange if an election previously made with respect to such sale or exchange is in effect.''. (2) Modification of rules for deferral of gain.--Section 1400Z-2(b) is amended to read as follows: ``(b) Deferral of Gain Invested in Opportunity Zone Property.-- ``(1) Year of inclusion.--Gain to which subsection (a)(1)(B) applies shall be included in gross income in the taxable year which includes the earlier of-- ``(A) the date on which such investment is sold or exchanged, or ``(B) the date which is 5 years after the date the investment in the qualified opportunity fund was made. ``(2) Amount includible.-- ``(A) In general.--The amount of gain included in gross income under subsection (a)(1)(B) shall be the excess of-- ``(i) the lesser of the amount of gain excluded under subsection (a)(1)(A) or the fair market value of the investment as determined as of the date described in paragraph (1), over ``(ii) the taxpayer's basis in the investment. ``(B) Determination of basis.-- ``(i) In general.--Except as otherwise provided in this subparagraph or subsection (c), the taxpayer's basis in the investment shall be zero. ``(ii) Increase for gain recognized under subsection (a)(1)(B).--The basis in the investment shall be increased by the amount of gain recognized by reason of subsection (a)(1)(B) with respect to such investment. ``(iii) Investments held for 5 years.-- ``(I) In general.--In the case of any investment held for at least 5 years, the basis of such investment shall be increased by an amount equal to 10 percent (30 percent in the case of any investment in a qualified rural opportunity fund) of the amount of gain deferred by reason of subsection (a)(1)(A). ``(II) Application of increase.--For purposes of this subsection, any increase in basis under this clause shall be treated as occurring before the date described in paragraph (1)(B). ``(C) Qualified rural opportunity fund.--For purposes of subparagraph (B)(iii)-- ``(i) Qualified rural opportunity fund.--The term `qualified rural opportunity fund' means a qualified opportunity fund that holds at least 90 percent of its assets in qualified opportunity zone property which-- ``(I) is qualified opportunity zone business property substantially all of the use of [[Page S3732]] which, during substantially all of the fund's holding period for such property, was in a qualified opportunity zone comprised entirely of a rural area, or ``(II) is qualified opportunity zone stock, or a qualified opportunity zone partnership interest, in a qualified opportunity zone business in which substantially all of the tangible property owned or leased is qualified opportunity zone business property described in subsection (d)(3)(A)(i) and substantially all the use of which is in a qualified opportunity zone comprised entirely of a rural area. For purposes of the preceding sentence, property held in the fund shall be measured under rules similar to the rules of subsection (d)(1). ``(ii) Rural area.--The term `rural area' means any area other than-- ``(I) a city or town that has a population of greater than 50,000 inhabitants, and ``(II) any urbanized area contiguous and adjacent to a city or town described in subclause (I).''. (3) Special rule for investments held at least 10 years.-- Section 1400Z-2(c) is amended by striking ``makes an election under this clause'' and all that follows and inserting ``makes an election under this subsection, the basis of such investment shall be equal to-- ``(A) in the case of an investment sold before the date that is 30 years after the date of the investment, the fair market value of such investment on the date such investment is sold or exchanged, or ``(B) in any other case, the fair market value of such investment on the date that is 30 years after the date of the investment.''. (4) Determination of qualified opportunity zone property.-- (A) Qualified opportunity zone business property.--Section 1400Z-2(d)(2)(D)(i)(I) is amended by striking ``December 31, 2017'' and inserting ``the applicable start date (as defined in section 1400Z-1(e)(2)) with respect to the qualified opportunity zone described in subclause (III)''. (B) Qualified opportunity zone stock and partnership interests.--Section 1400Z-2(d)(2) is amended-- (i) by striking ``December 31, 2017,'' each place it appears in subparagraphs (B)(i)(I) and (C)(i) and inserting ``the applicable date'', and (ii) by adding at the end the following new subparagraph: ``(E) Applicable date.--For purposes of this subparagraph, the term `applicable date' means, with respect to any corporation or partnership which is a qualified opportunity zone business, the earliest date described in subparagraph (D)(i)(I) with respect to the qualified opportunity zone business property held by such qualified opportunity zone business.''. (C) Special rule for improvement of existing structures in rural areas.--Section 1400Z-2(d)(2)(D)(ii) is amended by inserting ``(50 percent of such adjusted basis in the case of property in a qualified opportunity zone comprised entirely of a rural area (as defined in subsection (b)(2)(C)(ii))'' after ``the adjusted basis of such property''. (5) Effective dates.-- (A) In general.--Except as otherwise provided in this paragraph, the amendments made by this subsection shall apply to amounts invested in qualified opportunity funds after December 31, 2026. (B) Acquisition of qualified opportunity zone property.-- The amendments made by subparagraphs (A) and (B) of paragraph (4) shall apply to property acquired after December 31, 2026. (C) Substantial improvement.--The amendment made by paragraph (4)(C) shall take effect on the date of the enactment of this Act. (d) Information Reporting on Qualified Opportunity Funds and Qualified Rural Opportunity Funds.-- (1) Filing requirements for funds and investors.--Subpart A of part III of subchapter A of chapter 61 is amended by inserting after section 6039J the following new sections: ``SEC. 6039K. RETURNS WITH RESPECT TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS. ``(a) In General.--Every qualified opportunity fund shall file an annual return (at such time and in such manner as the Secretary may prescribe) containing the information described in subsection (b). ``(b) Information From Qualified Opportunity Funds.--The information described in this subsection is-- ``(1) the name, address, and taxpayer identification number of the qualified opportunity fund, ``(2) whether the qualified opportunity fund is organized as a corporation or a partnership, ``(3) the value of the total assets held by the qualified opportunity fund as of each date described in section 1400Z- 2(d)(1), ``(4) the value of all qualified opportunity zone property held by the qualified opportunity fund on each such date, ``(5) with respect to each investment held by the qualified opportunity fund in qualified opportunity zone stock or a qualified opportunity zone partnership interest-- ``(A) the name, address, and taxpayer identification number of the corporation in which such stock is held or the partnership in which such interest is held, as the case may be, ``(B) each North American Industry Classification System (NAICS) code that applies to the trades or businesses conducted by such corporation or partnership, ``(C) the population census tract or population census tracts in which the qualified opportunity zone business property of such corporation or partnership is located, ``(D) the amount of the investment in such stock or partnership interest as of each date described in section 1400Z-2(d)(1), ``(E) the value of tangible property held by such corporation or partnership on each such date which is owned by such corporation or partnership, ``(F) the value of tangible property held by such corporation or partnership on each such date which is leased by such corporation or partnership, ``(G) the approximate number of residential units (if any) for any real property held by such corporation or partnership, and ``(H) the approximate average monthly number of full-time equivalent employees of such corporation or partnership for the year (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such corporation or partnership as determined appropriate by the Secretary, ``(6) with respect to the items of qualified opportunity zone business property held by the qualified opportunity fund-- ``(A) the North American Industry Classification System (NAICS) code that applies to the trades or businesses in which such property is held, ``(B) the population census tract in which the property is located, ``(C) whether the property is owned or leased, ``(D) the aggregate value of the items of qualified opportunity zone property held by the qualified opportunity fund as of each date described in section 1400Z-2(d)(1), and ``(E) in the case of real property, the number of residential units (if any), ``(7) the approximate average monthly number of full-time equivalent employees for the year of the trades or businesses of the qualified opportunity fund in which qualified opportunity zone business property is held (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such trades or businesses as determined appropriate by the Secretary, ``(8) with respect to each person who disposed of an investment in the qualified opportunity fund during the year-- ``(A) the name, address, and taxpayer identification number of such person, ``(B) the date or dates on which the investment disposed was acquired, and ``(C) the date or dates on which any such investment was disposed and the amount of the investment disposed, and ``(9) such other information as the Secretary may require. ``(c) Statement Required to Be Furnished to Investors.-- Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return by reason of subsection (b)(8) (at such time and in such manner as the Secretary may prescribe) a written statement showing-- ``(1) the name, address, and phone number of the information contact of the person required to make such return, and ``(2) the information required to be shown on such return by reason of subsection (b)(8) with respect to the person whose name is required to be so set forth. ``(d) Definitions.--For purposes of this section-- ``(1) In general.--Any term used in this section which is also used in subchapter Z of chapter 1 shall have the meaning given such term under such subchapter. ``(2) Full-time equivalent employees.--The term `full-time equivalent employees' means, with respect to any month, the sum of-- ``(A) the number of full-time employees (as defined in section 4980H(c)(4)) for the month, plus ``(B) the number of employees determined (under rules similar to the rules of section 4980H(c)(2)(E)) by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 120. ``(e) Application to Qualified Rural Opportunity Funds.-- Every qualified rural opportunity fund (as defined in section 1400Z-2(b)(2)(C)) shall file the annual return required under subsection (a), and the statements required under subsection (c), applied-- ``(1) by substituting `qualified rural opportunity' for `qualified opportunity' each place it appears, ``(2) by substituting `section 1400Z-2(b)(2)(C)' for `section 1400Z-2(d)(1)' each place it appears, and ``(3) by treating any reference (after the application of paragraph (1)) to qualified rural opportunity zone stock, a qualified rural opportunity zone partnership interest, a qualified rural opportunity zone business, or qualified opportunity zone business property as stock, an interest, a business, or property, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z- 2(b)(2)(C)(i). ``SEC. 6039L. INFORMATION REQUIRED FROM QUALIFIED OPPORTUNITY ZONE BUSINESSES AND QUALIFIED RURAL OPPORTUNITY ZONE BUSINESSES. ``(a) In General.--Every applicable qualified opportunity zone business shall furnish to the qualified opportunity fund described [[Page S3733]] in subsection (b) a written statement at such time, in such manner, and setting forth such information as the Secretary may by regulations prescribe for purposes of enabling such qualified opportunity fund to meet the requirements of section 6039K(b)(5). ``(b) Applicable Qualified Opportunity Zone Business.--For purposes of subsection (a), the term `applicable qualified opportunity zone business' means any qualified opportunity zone business-- ``(1) which is a trade or business of a qualified opportunity fund, ``(2) in which a qualified opportunity fund holds qualified opportunity zone stock, or ``(3) in which a qualified opportunity fund holds a qualified opportunity zone partnership interest. ``(c) Other Terms.--Any term used in this section which is also used in subchapter Z of chapter 1 shall have the meaning given such term under such subchapter. ``(d) Application to Qualified Rural Opportunity Businesses.--Every applicable qualified rural opportunity zone business (as defined in subsection (b) determined after application of the substitutions described in this sentence) shall furnish the written statement required under subsection (a), applied-- ``(1) by substituting `qualified rural opportunity' for `qualified opportunity' each place it appears, and ``(2) by treating any reference (after the application of paragraph (1)) to qualified rural opportunity zone stock, a qualified rural opportunity zone partnership interest, or a qualified rural opportunity zone business as stock, an interest, or a business, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z- 2(b)(2)(C)(i).''. (2) Penalties.-- (A) In general.--Part II of subchapter B of chapter 68 is amended by inserting after section 6725 the following new section: ``SEC. 6726. FAILURE TO COMPLY WITH INFORMATION REPORTING REQUIREMENTS RELATING TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS. ``(a) In General.--If any person required to file a return under section 6039K fails to file a complete and correct return under such section in the time and in the manner prescribed therefor, such person shall pay a penalty of $500 for each day during which such failure continues. ``(b) Limitation.-- ``(1) In general.--The maximum penalty under this section on failures with respect to any 1 return shall not exceed $10,000. ``(2) Large qualified opportunity funds.--In the case of any failure described in subsection (a) with respect to a fund the gross assets of which (determined on the last day of the taxable year) are in excess of $10,000,000, paragraph (1) shall be applied by substituting `$50,000' for `$10,000'. ``(c) Penalty in Cases of Intentional Disregard.--If a failure described in subsection (a) is due to intentional disregard, then-- ``(1) subsection (a) shall be applied by substituting `$2,500' for `$500', ``(2) subsection (b)(1) shall be applied by substituting `$50,000' for `$10,000', and ``(3) subsection (b)(2) shall be applied by substituting `$250,000' for `$50,000'. ``(d) Inflation Adjustment.-- ``(1) In general.--In the case of any failure relating to a return required to be filed in a calendar year beginning after 2025, each of the dollar amounts in subsections (a), (b), and (c) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting `calendar year 2024' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(2) Rounding.-- ``(A) In general.--If the $500 dollar amount in subsection (a) and (c)(1) or the $2,500 amount in subsection (c)(1), after being increased under paragraph (1), is not a multiple of $10, such dollar amount shall be rounded to the next lowest multiple of $10. ``(B) Asset threshold.--If the $10,000,000 dollar amount in subsection (b)(2), after being increased under paragraph (1), is not a multiple of $10,000, such dollar amount shall be rounded to the next lowest multiple of $10,000. ``(C) Other dollar amounts.--If any dollar amount in subsection (b) or (c) (other than any amount to which subparagraph (A) or (B) applies), after being increased under paragraph (1), is not a multiple of $1,000, such dollar amount shall be rounded to the next lowest multiple of $1,000.''. (B) Information required to be sent to other taxpayers.-- Section 6724(d)(2), as amended by the preceding provisions of this Act, is amended-- (i) by striking ``or'' at the end of subparagraph (LL), (ii) by striking the period at the end of subparagraph (MM) and inserting a comma, and (iii) by inserting after subparagraph (MM) the following new subparagraphs: ``(NN) section 6039K(c) (relating to disposition of qualified opportunity fund investments), or ``(OO) section 6039L (relating to information required from certain qualified opportunity zone businesses and qualified rural opportunity zone businesses).''. (3) Electronic filing.--Section 6011(e) is amended by adding at the end the following new paragraph: ``(8) Qualified opportunity funds and qualified rural opportunity funds.--Notwithstanding paragraphs (1) and (2), any return filed by a qualified opportunity fund or qualified rural opportunity fund under section 6039K shall be filed on magnetic media or other machine-readable form.''. (4) Clerical amendments.-- (A) The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by inserting after the item relating to section 6039J the following new items: ``Sec. 6039K. Returns with respect to qualified opportunity funds and qualified rural opportunity funds. ``Sec. 6039L. Information required from qualified opportunity zone businesses and qualified rural opportunity zone businesses.''. (B) The table of sections for part II of subchapter B of chapter 68 is amended by inserting after the item relating to section 6725 the following new item: ``Sec. 6726. Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds.''. (5) Effective date.--The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act. (e) Secretary Reporting of Data on Opportunity Zone and Rural Opportunity Zone Tax Incentives.-- (1) In general.--In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2028, for necessary expenses of the Internal Revenue Service to make the reports described in paragraph (2). (2) Reports.--As soon as practical after the date of the enactment of this Act, and annually thereafter, the Secretary of the Treasury, or the Secretary's delegate (referred to in this section as the ``Secretary'') shall make publicly available a report on qualified opportunity funds. (3) Information included.--The report required under paragraph (2) shall include, to the extent available, the following information: (A) The number of qualified opportunity funds. (B) The aggregate dollar amount of assets held in qualified opportunity funds. (C) The aggregate dollar amount of investments made by qualified opportunity funds in qualified opportunity fund property, stated separately for each North American Industry Classification System (NAICS) code. (D) The percentage of population census tracts designated as qualified opportunity zones that have received qualified opportunity fund investments. (E) For each population census tract designated as a qualified opportunity zone, the approximate average monthly number of full-time equivalent employees of the qualified opportunity zone businesses in such qualified opportunity zone for the preceding 12-month period (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such qualified opportunity fund businesses as determined appropriate by the Secretary. (F) The percentage of the total amount of investments made by qualified opportunity funds in-- (i) qualified opportunity zone property which is real property; and (ii) other qualified opportunity zone property. (G) For each population census tract, the aggregate approximate number of residential units resulting from investments made by qualified opportunity funds in real property. (H) The aggregate dollar amount of investments made by qualified opportunity funds in each population census tract. (4) Additional information.-- (A) In general.--Beginning with the report submitted under paragraph (2) for the 6th year after the date of the enactment of this Act, the Secretary shall include in such report the impacts and outcomes of a designation of a population census tract as a qualified opportunity zone as measured by economic indicators, such as job creation, poverty reduction, new business starts, and other metrics as determined by the Secretary. (B) Semi-decennial information.-- (i) In general.--In the case of any report submitted under paragraph (2) in the 6th year or the 11th year after the date of the enactment of this Act, the Secretary shall include the following information: (I) For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) between the 5-year period ending on the date of the enactment of Public Law 115-97 and the most recent 5-year period for which data is available. (II) For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) for the most recent 5-year period for which data is available between such population census tracts and similar population census tracts that were not designated as a qualified opportunity zone. (ii) Control groups.--For purposes of clause (i), the Secretary may combine population census tracts into such groups as the [[Page S3734]] Secretary determines appropriate for purposes of making comparisons. (iii) Factors listed.--The factors listed in this clause are the following: (I) The unemployment rate. (II) The number of persons working in the population census tract, including the percentage of such persons who were not residents in the population census tract in the preceding year. (III) Individual, family, and household poverty rates. (IV) Median family income of residents of the population census tract. (V) Demographic information on residents of the population census tract, including age, income, education, race, and employment. (VI) The average percentage of income of residents of the population census tract spent on rent annually. (VII) The number of residences in the population census tract. (VIII) The rate of home ownership in the population census tract. (IX) The average value of residential property in the population census tract. (X) The number of affordable housing units in the population census tract. (XI) The number of new business starts in the population census tract. (XII) The distribution of employees in the population census tract by North American Industry Classification System (NAICS) code. (5) Protection of identifiable return information.--In making reports required under this subsection, the Secretary-- (A) shall establish appropriate procedures to ensure that any amounts reported do not disclose taxpayer return information that can be associated with any particular taxpayer or competitive or proprietary information, and (B) if necessary to protect taxpayer return information, may combine information required with respect to individual population census tracts into larger geographic areas. (6) Definitions.--Any term used in this subsection which is also used in subchapter Z of chapter 1 of the Internal Revenue Code of 1986 shall have the meaning given such term under such subchapter. (7) Reports on qualified rural opportunity funds.--The Secretary shall make publicly available, with respect to qualified rural opportunity funds, separate reports as required under this subsection, applied-- (A) by substituting ``qualified rural opportunity'' for ``qualified opportunity'' each place it appears, (B) by substituting a reference to this Act for ``Public Law 115-97'', and (C) by treating any reference (after the application of subparagraph (A)) to qualified rural opportunity zone stock, qualified rural opportunity zone partnership interest, qualified rural opportunity zone business, or qualified opportunity zone business property as stock, interest, business, or property, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z- 2(b)(2)(C)(i) of the Internal Revenue Code of 1986. SEC. 70422. PERMANENT ENHANCEMENT OF LOW-INCOME HOUSING TAX CREDIT. (a) Permanent State Housing Credit Ceiling Increase for Low-income Housing Credit.-- (1) In general.--Section 42(h)(3)(I) is amended-- (A) by striking ``2018, 2019, 2020, and 2021,'' and inserting ``beginning after December 31, 2025,'', (B) by striking ``1.125'' and inserting ``1.12'', and (C) by striking ``2018, 2019, 2020, and 2021'' in the heading and inserting ``calendar years after 2025''. (2) Effective date.--The amendments made by this subsection shall apply to calendar years beginning after December 31, 2025. (b) Tax-exempt Bond Financing Requirement.-- (1) In general.--Section 42(h)(4) is amended by striking subparagraph (B) and inserting the following: ``(B) Special rule where minimum percent of buildings is financed with tax-exempt bonds subject to volume cap.--For purposes of subparagraph (A), paragraph (1) shall not apply to any portion of the credit allowable under subsection (a) with respect to a building if-- ``(i) 50 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), or ``(ii)(I) 25 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), and ``(II) 1 or more of such obligations-- ``(aa) are part of an issue the issue date of which is after December 31, 2025, and ``(bb) provide the financing for not less than 5 percent of the aggregate basis of such building and the land on which the building is located.''. (2) Effective date.-- (A) In general.--The amendment made by this subsection shall apply to buildings placed in service in taxable years beginning after December 31, 2025. (B) Rehabilitation expenditures treated as separate new building.--In the case of any building with respect to which any expenditures are treated as a separate new building under section 42(e) of the Internal Revenue Code of 1986, for purposes of subparagraph (A), both the existing building and the separate new building shall be treated as having been placed in service on the date such expenditures are treated as placed in service under section 42(e)(4) of such Code. SEC. 70423. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT. (a) In General.--Section 45D(f)(1)(H) is amended by striking ``for for each of calendar years 2020 through 2025'' and inserting `` for each calendar year after 2019''. (b) Carryover of Unused Limitation.--Section 45D(f)(3) is amended-- (1) by striking ``If the'' and inserting the following: ``(A) In general.--If the'', and (2) by striking the second sentence and inserting the following: ``(B) Limitation.--No amount may be carried under subparagraph (A) to any calendar year afer the fifth calendar year after the calendar year in which the excess described in such subparagraph occurred. For purposes of this subparagraph, any excess described in subparagraph (A) with respect to any calendar year before 2026 shall be treated as occurring in calendar year 2025.''. (c) Effective Date.--The amendments made by this section shall apply to calendar years beginning after December 31, 2025. SEC. 70424. PERMANENT AND EXPANDED REINSTATEMENT OF PARTIAL DEDUCTION FOR CHARITABLE CONTRIBUTIONS OF INDIVIDUALS WHO DO NOT ELECT TO ITEMIZE. (a) In General.--Section 170(p) is amended-- (1) by striking ``$300 ($600'' and inserting ``$1,000 ($2,000'', and (2) by striking ``beginning in 2021''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70425. 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS. (a) In General.-- (1) In general.--Paragraph (1) of section 170(b) is amended by adding at the end the following new subparagraph: ``(I) 0.5-percent floor.--Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer's contribution base for the taxable year. The preceding sentence shall be applied-- ``(i) first, by taking into account charitable contributions to which subparagraph (D) applies to the extent thereof, ``(ii) second, by taking into account charitable contributions to which subparagraph (C) applies to the extent thereof, ``(iii) third, by taking into account charitable contributions to which subparagraph (B) applies to the extent thereof, ``(iv) fourth, by taking into account charitable contributions to which subparagraph (E) applies to the extent thereof, ``(v) fifth, by taking into account charitable contributions to which subparagraph (A) applies to the extent thereof, and ``(vi) sixth, by taking into account charitable contributions to which subparagraph (G) applies to the extent thereof.''. (2) Application of carryforward.--Paragraph (1) of section 170(d) is amended by adding at the end the following new subparagraph: ``(C) Contributions disallowed by 0.5-percent floor carried forward only from years in which limitation is exceeded.-- ``(i) In general.--In the case of any taxable year from which an excess is carried forward (determined without regard to this subparagraph) under any carryover rule, the applicable carryover rule shall be applied by increasing the excess determined under such applicable carryover rule for the contribution year (before the application of subparagraph (B)) by the amount attributable to the charitable contributions to which such rule applies which is not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I). ``(ii) Carryover rule.--For purposes of this subparagraph, the term `carryover rule' means-- ``(I) subparagraph (A) of this paragraph, ``(II) subparagraphs (C)(ii), (D)(ii), (E)(ii), and (G)(ii) of subsection (b)(1), and ``(III) the second sentence of subsection (b)(1)(B). ``(iii) Applicable carryover rule.--For purposes of this subparagraph, the term `applicable carryover rule' means any carryover rule applicable to charitable contributions which were (in whole or in part) not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I).''. (3) Coordination with deduction for nonitemizers.--Section 170(p), as amended by this Act, is further amended by inserting ``, (b)(1)(I),'' after ``subsections (b)(1)(G)(ii)''. (b) Modification of Limitation for Cash Contributions.-- (1) In general.--Clause (i) of section 170(b)(1)(G) is amended to read as follows: ``(i) In general.--For taxable years beginning after December 31, 2017, any contribution of cash to an organization described in subparagraph (A) shall be allowed as a deduction under subsection (a) to the extent that the aggregate of such contributions does not exceed the excess of-- ``(I) 60 percent of the taxpayer's contribution base for the taxable year, over [[Page S3735]] ``(II) the aggregate amount of contributions taken into account under subparagraph (A) for such taxable year.''. (2) Coordination with other limitations.-- (A) In general.--Clause (iii) of section 170(b)(1)(G) is amended-- (i) by striking ``subparagraphs (a) and (b)'' in the heading and inserting ``subparagraph (a)'', and (ii) in subclause (II), by striking ``, and subparagraph (B)'' and all that follows through ``this subparagraph''. (B) Other contributions.--Subparagraph (B) of section 170(b)(1) is amended-- (i) by striking ``to which subparagraph (A)'' both places it appears and inserting ``to which subparagraph (A) or (G)'', and (ii) in clause (ii), by striking ``over the amount'' and all that follows through ``subparagraph (C)).'' and inserting ``over-- ``(I) the amount of charitable contributions allowable under subparagraph (A) (determined without regard to subparagraph (C)) and subparagraph (G), reduced by ``(II) so much of the contributions taken into account under subparagraph (G) as does not exceed 10 percent of the taxpayer's contribution base.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70426. 1-PERCENT FLOOR ON DEDUCTION OF CHARITABLE CONTRIBUTIONS MADE BY CORPORATIONS. (a) In General.--Section 170(b)(2)(A) is amended to read as follows: ``(A) In general.--Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section for any taxable year, other than any contribution to which subparagraph (B) or (C) applies, shall be allowed only to the extent that the aggregate of such contributions-- ``(i) exceeds 1 percent of the taxpayer's taxable income for the taxable year, and ``(ii) does not exceed 10 percent of the taxpayer's taxable income for the taxable year.''. (b) Application of Carryforward.--Section 170(d)(2) is amended to read as follows: ``(2) Corporations.-- ``(A) In general.--Any charitable contribution taken into account under subsection (b)(2)(A) for any taxable year which is not allowed as a deduction by reason of clause (ii) thereof shall be taken into account as a charitable contribution for the succeeding taxable year, except that, for purposes of determining under this subparagraph whether such contribution is allowed in such succeeding taxable year, contributions in such succeeding taxable year (determined without regard to this paragraph) shall be taken into account under subsection (b)(2)(A) before any contribution taken into account by reason of this paragraph. ``(B) 5-year carryforward.--No charitable contribution may be carried forward under subparagraph (A) to any taxable year following the fifth taxable year after the taxable year in which the charitable contribution was first taken into account. For purposes of the preceding sentence, contributions shall be treated as allowed on a first-in first-out basis. ``(C) Contributions disallowed by 1-percent floor carried forward only from years in which 10 percent limitation is exceeded.--In the case of any taxable year from which a charitable contribution is carried forward under subparagraph (A) (determined without regard this subparagraph), subparagraph (A) shall be applied by substituting `clause (i) or (ii)' for `clause (ii)'. ``(D) Special rule for net operating loss carryovers.--The amount of charitable contributions carried forward under subparagraph (A) shall be reduced to the extent that such carryfoward would (but for this subparagraph) reduce taxable income (as computed for purposes of the second sentence of section 172(b)(2)) and increase a net operating loss carryover under section 172 to a succeeding taxable year.''. (c) Conforming Amendments.--Subparagraphs (B)(ii) and (C)(ii) of section 170(b)(2) are each amended by inserting ``other than subparagraph (C) thereof'' after ``subsection (d)(2)''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70427. PERMANENT INCREASE IN LIMITATION ON COVER OVER OF TAX ON DISTILLED SPIRITS. (a) In General.--Paragraph (1) of section 7652(f) is amended to read as follows: ``(1) $13.25, or''. (b) Effective Date.--The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2025. SEC. 70428. NONPROFIT COMMUNITY DEVELOPMENT ACTIVITIES IN REMOTE NATIVE VILLAGES. (a) In General.--For purposes of subchapter F of chapter 1 of the Internal Revenue Code of 1986, any activity substantially related to participation or investment in fisheries in the Bering Sea and Aleutian Islands statistical and reporting areas (as described in Figure 1 of section 679 of title 50, Code of Federal Regulations) carried on by an entity identified in section 305(i)(1)(D) of the Magnuson- Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in effect on the date of enactment of this section) shall be considered substantially related to the exercise or performance of the purpose constituting the basis of such entity's exemption under section 501(a) of such Code if the conduct of such activity is in furtherance of 1 or more of the purposes specified in section 305(i)(1)(A) of such Act (as so in effect). For purposes of this paragraph, activities substantially related to participation or investment in fisheries include the harvesting, processing, transportation, sales, and marketing of fish and fish products of the Bering Sea and Aleutian Islands statistical and reporting areas. (b) Application to Certain Wholly Owned Subsidiaries.--If the assets of a trade or business relating to an activity described in subsection (a) of any subsidiary wholly owned by an entity identified in section 305(i)(1)(D) of the Magnuson- Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in effect on the date of enactment of this section) are transferred to such entity (including in liquidation of such subsidiary) not later than 18 months after the date of the enactment of this Act-- (1) no gain or income resulting from such transfer shall be recognized to either such subsidiary or such entity under such Code, and (2) all income derived from such subsidiary from such transferred trade or business shall be exempt from taxation under such Code. (c) Effective Date.--This section shall take effect on the date of the enactment of this Act and shall remain effective during the existence of the western Alaska community development quota program established by Section 305(i)(1) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)), as amended. SEC. 70429. ADJUSTMENT OF CHARITABLE DEDUCTION FOR CERTAIN EXPENSES INCURRED IN SUPPORT OF NATIVE ALASKAN SUBSISTENCE WHALING. (a) In General.--Section 170(n)(1) of the Internal Revenue Code of 1986 is amended by striking ``$10,000'' and inserting ``$50,000''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70430. EXCEPTION TO PERCENTAGE OF COMPLETION METHOD OF ACCOUNTING FOR CERTAIN RESIDENTIAL CONSTRUCTION CONTRACTS. (a) In General.--Section 460(e) is amended-- (1) in paragraph (1)-- (A) by striking ``home construction contract'' both places it appears and inserting ``residential construction contract'', and (B) by inserting ``(determined by substituting `3-year' for `2-year' in subparagraph (B)(i) for any residential construction contract which is not a home construction contract)'' after ``the requirements of clauses (i) and (ii) of subparagraph (B)'', (2) by striking paragraph (4) and redesignating paragraph (5) as paragraph (4), and (3) in subparagraph (A) of paragraph (4), as so redesignated, by striking ``paragraph (4)'' and inserting ``paragraph (3)''. (b) Application of Exception for Purposes of Alternative Minimum Tax.--Section 56(a)(3) is amended by striking ``any home construction contract (as defined in section 460(e)(6))'' and inserting ``any residential construction contract (as defined in section 460(e)(4))''. (c) Effective Date.--The amendments made by this section shall apply to contracts entered into after the date of the enactment of this Act. Subchapter D--Permanent Investments in Small Business and Rural America SEC. 70431. EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION. (a) Phased Increase in Exclusion for Gain From Qualified Small Business Stock.-- (1) In general.--Section 1202(a)(1) is amended to read as follows: ``(1) In general.-- In the case of a taxpayer other than a corporation, gross income shall not include-- ``(A) except as provided in paragraphs (3) and (4), 50 percent of any gain from the sale or exchange of qualified small business stock acquired on or before the applicable date and held for more than 5 years, and ``(B) the applicable percentage of any gain from the sale or exchange of qualified small business stock acquired after the applicable date and held for at least 3 years.''. (2) Applicable percentage.--Section 1202(a) is amended by adding at the end the following new paragraph: ``(5) Applicable percentage.--The applicable percentage under paragraph (1) shall be determined under the following table: ``Years stock held: Applicable percentage: 3 years.........................................................50%.... 4 years.........................................................75%.... 5 years or more..............................................100%''.... (3) Applicable date; acquisition date.--Section 1202(a), as amended by paragraph (2), is amended by adding at the end the following new paragraph: ``(6) Applicable date; acquisition date.--For purposes of this section-- ``(A) Applicable date.--The term `applicable date' means the date of the enactment of this paragraph. ``(B) Acquisition date.--In the case of any stock which would (but for this paragraph) be treated as having been acquired before, on, or after the applicable date, whichever is applicable, the acquisition date for purposes of this section shall be the first day on which such stock was held by the taxpayer determined after the application of section 1223.''. (4) Continued treatment as not item of tax preference.-- (A) In general.--Section 57(a)(7) is amended by striking ``An amount'' and inserting [[Page S3736]] ``In the case of stock acquired on or before the date of the enactment of the Creating Small Business Jobs Act of 2010, an amount''. (B) Conforming amendment.--Section 1202(a)(4) is amended-- (i) by striking ``, and'' at the end of subparagraph (B) and inserting a period, and (ii) by striking subparagraph (C). (5) Other conforming amendments.-- (A) Paragraphs (3)(A) and (4)(A) of section 1202(a) are each amended by striking ``paragraph (1)'' and inserting ``paragraph (1)(A)''. (B) Paragraph (4)(A) of section 1202(a) is amended by inserting ``and on or before the applicable date'' after ``2010''. (C) Sections 1202(b)(2), 1202(g)(2)(A), and 1202(j)(1)(A) are each amended by striking ``more than 5 years'' and inserting ``at least 3 years (more than 5 years in the case of stock acquired on or before the applicable date)''. (6) Effective dates.-- (A) In general.--Except as provided in subparagraph (B), the amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act. (B) Continued treatment as not item of tax preference.--The amendments made by paragraph (4) shall take effect as if included in the enactment of section 2011 of the Creating Small Business Jobs Act of 2010. (b) Increase in Per Issuer Limitation.-- (1) In general.--Subparagraph (A) of section 1202(b)(1) is amended to read as follows: ``(A) the applicable dollar limit for the taxable year, or''. (2) Applicable dollar limit.--Section 1202 (b) is amended by adding at the end the following: ``(4) Applicable dollar limit.--For purposes of paragraph (1)(A), the applicable dollar limit for any taxable year with respect to eligible gain from 1 or more dispositions by a taxpayer of qualified business stock of a corporation is-- ``(A) if such stock was acquired by the taxpayer on or before the applicable date, $10,000,000, reduced by the aggregate amount of eligible gain taken into account by the taxpayer under subsection (a) for prior taxable years and attributable to dispositions of stock issued by such corporation and acquired by the taxpayer before, on, or after the applicable date, and ``(B) if such stock was acquired by the taxpayer after the applicable date, $15,000,000, reduced by the sum of-- ``(i) the aggregate amount of eligible gain taken into account by the taxpayer under subsection (a) for prior taxable years and attributable to dispositions of stock issued by such corporation and acquired by the taxpayer before, on, or after the applicable date, plus ``(ii) the aggregate amount of eligible gain taken into account by the taxpayer under subsection (a) for the taxable year and attributable to dispositions of stock issued by such corporation and acquired by the taxpayer on or before the applicable date. ``(5) Inflation adjustment.-- ``(A) In general.--In the case of any taxable year beginning after 2026, the $15,000,000 amount in paragraph (4)(B) shall be increased by an amount equal to -- ``(i) such dollar amount, multiplied by ``(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under this subparagraph is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000. ``(B) No increase once limit reached.--If, for any taxable year, the eligible gain attributable to dispositions of stock issued by a corporation and acquired by the taxpayer after the applicable date exceeds the applicable dollar limit, then notwithstanding any increase under subparagraph (A) for any subsequent taxable year, the applicable dollar limit for such subsequent taxable year shall be zero.''. (3) Separate returns.--Subparagraph (A) of section 1202(b)(3) is amended to read as follows: ``(A) Separate returns.--In the case of a separate return by a married individual for any taxable year-- ``(i) paragraph (4)(A) shall be applied by substituting `$5,000,000' for `$10,000,000', and ``(ii) paragraph (4)(B) shall be applied by substituting one-half of the dollar amount in effect under such paragraph for the taxable year for the amount so in effect.''. (4) Effective date.--The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act. (c) Increase in Limit in Aggregate Gross Assets.-- (1) In general.--Subparagraphs (A) and (B) of section 1202(d)(1) are each amended by striking ``$50,000,000'' and inserting ``$75,000,000''. (2) Inflation adjustment.--Section 1202(b) is amended by adding at the end the following: ``(4) Inflation adjustment.--In the case of any taxable year beginning after 2026, the $75,000,000 amounts in paragraphs (1)(A) and (1)(B) shall each be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under this paragraph is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000.''. (3) Effective date.--The amendments made by this subsection shall apply to stock issued after the date of the enactment of this Act. SEC. 70432. REPEAL OF REVISION TO DE MINIMIS RULES FOR THIRD PARTY NETWORK TRANSACTIONS. (a) Reinstatement of Exception for De Minimis Payments as in Effect Prior to Enactment of American Rescue Plan Act of 2021.-- (1) In general.--Section 6050W(e) is amended to read as follows: ``(e) Exception for De Minimis Payments by Third Party Settlement Organizations.--A third party settlement organization shall be required to report any information under subsection (a) with respect to third party network transactions of any participating payee only if-- ``(1) the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions exceeds $20,000, and ``(2) the aggregate number of such transactions exceeds 200.''. (2) Effective date.--The amendment made by this subsection shall take effect as if included in section 9674 of the American Rescue Plan Act. (b) Application of De Minimis Rule for Third Party Network Transactions to Backup Withholding.-- (1) In general.--Section 3406(b) is amended by adding at the end the following new paragraph: ``(8) Other reportable payments include payments in settlement of third party network transactions only where aggregate transactions exceed reporting threshold for the calendar year.-- ``(A) In general.--Any payment in settlement of a third party network transaction required to be shown on a return required under section 6050W which is made during any calendar year shall be treated as a reportable payment only if-- ``(i) the aggregate number of transactions with respect to the participating payee during such calendar year exceeds the number of transactions specified in section 6050W(e)(2), and ``(ii) the aggregate amount of transactions with respect to the participating payee during such calendar year exceeds the dollar amount specified in section 6050W(e)(1) at the time of such payment. ``(B) Exception if third party network transactions made in prior year were reportable.--Subparagraph (A) shall not apply with respect to payments to any participating payee during any calendar year if one or more payments in settlement of third party network transactions made by the payor to the participating payee during the preceding calendar year were reportable payments.''. (2) Effective date.--The amendment made by this subsection shall apply to calendar years beginning after December 31, 2024. SEC. 70433. INCREASE IN THRESHOLD FOR REQUIRING INFORMATION REPORTING WITH RESPECT TO CERTAIN PAYEES. (a) In General.--Section 6041(a) is amended by striking ``$600'' and inserting ``$2,000''. (b) Inflation Adjustment.--Section 6041 is amended by adding at the end the following new subsection: ``(h) Inflation Adjustment.--In the case of any calendar year after 2026, the dollar amount in subsection (a) shall be increased by an amount equal to-- ``(1) such dollar amount, multiplied by ``(2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.''. (c) Application to Reporting on Remuneration for Services.--Section 6041A(a)(2) is amended by striking ``is $600 or more'' and inserting ``equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)''. (d) Application to Backup Withholding.--Section 3406(b)(6) is amended-- (1) by striking ``$600'' in subparagraph (A) and inserting ``the dollar amount in effect for such calendar year under section 6041(a)'', and (2) by striking ``Only Where Aggregate for Calendar Year Is $600 or More'' in the heading and inserting ``Only Where in Excess of Threshold''. (e) Conforming Amendments.-- (1) The heading of section 6041(a) is amended by striking ``of $600 or More'' and inserting ``Exceeding Threshold''. (2) Section 6041(a) is amended by striking ``taxable year'' and inserting ``calendar year''. (f) Effective Date.--The amendments made by this section shall apply with respect to payments made after December 31, 2025. SEC. 70434. TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING PRODUCTIONS. (a) Election to Treat Costs as Expenses.--Section 181(a)(1) is amended by striking ``qualified film or television production, and any qualified live theatrical production,'' and inserting ``qualified film or television production, any qualified live theatrical production, and any qualified sound recording production''. [[Page S3737]] (b) Dollar Limitation.--Section 181(a)(2) is amended by adding at the end the following new subparagraph: ``(C) Qualified sound recording production.--Paragraph (1) shall not apply to so much of the aggregate cost of any qualified sound recording production, or to so much of the aggregate, cumulative cost of all such qualified sound recording productions in the taxable year, as exceeds $150,000.''. (c) No Other Deduction or Amortization Deduction Allowable.--Section 181(b) is amended by striking ``qualified film or television production or any qualified live theatrical production'' and inserting ``qualified film or television production, any qualified live theatrical production, or any qualified sound recording production''. (d) Election.--Section 181(c)(1) is amended by striking ``qualified film or television production or any qualified live theatrical production'' and inserting ``qualified film or television production, any qualified live theatrical production, or any qualified sound recording production''. (e) Qualified Sound Recording Production Defined.--Section 181 is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection: ``(f) Qualified Sound Recording Production.--For purposes of this section, the term `qualified sound recording production' means a sound recording (as defined in section 101 of title 17, United States Code) produced and recorded in the United States.''. (f) Application of Termination.--Section 181(h), as redesignated by subsection (e), is amended by striking ``qualified film and television productions or qualified live theatrical productions'' and inserting ``qualified film and television productions, qualified live theatrical productions, or qualified sound recording productions''. (g) Bonus Depreciation.-- (1) Qualified sound recording production as qualified property.--Section 168(k)(2)(A)(i) is amended-- (A) by striking ``or'' at the end of subclause (IV), by inserting ``or'' at the end of subclause (V), and by inserting after subclause (V) the following: ``(VI) which is a qualified sound recording production (as defined in subsection (f) of section 181) for which a deduction would have been allowable under section 181 without regard to subsections (a)(2) and (h) of such section or this subsection, and'', and (B) in subclauses (IV) and (V) (as so amended) by striking ``without regard to subsections (a)(2) and (g)'' both places it appears and inserting ``without regard to subsections (a)(2) and (h)''. (2) Production placed in service.--Section 168(k)(2)(H) is amended by striking ``and'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``, and'', and by adding after clause (ii) the following: ``(iii) a qualified sound recording production shall be considered to be placed in service at the time of initial release or broadcast.''. (h) Conforming Amendments.-- (1) The heading for section 181 is amended to read as follows: ``treatment of certain qualified productions.''. (2) The table of sections for part VI of subchapter B of chapter 1 is amended by striking the item relating to section 181 and inserting the following new item: ``Sec. 181. Treatment of certain qualified productions.''. (i) Effective Date.--The amendments made by this section shall apply to productions commencing in taxable years ending after the date of the enactment of this Act. SEC. 70435. EXCLUSION OF INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL PROPERTY. (a) In General.--Part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 139K the following new section: ``SEC. 139L. INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL PROPERTY. ``(a) In General.--Gross income shall not include 25 percent of the interest received by a qualified lender on any qualified real estate loan. ``(b) Qualified Lender.--For purposes of this section, the term `qualified lender' means-- ``(1) any bank or savings association the deposits of which are insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.), ``(2) any State- or federally-regulated insurance company, ``(3) any entity wholly owned, directly or indirectly, by a company that is treated as a bank holding company for purposes of section 8 of the International Banking Act of 1978 (12 U.S.C. 3106) if-- ``(A) such entity is organized, incorporated, or established under the laws of the United States or any State, and ``(B) the principal place of business of such entity is in the United States (including any territory of the United States), ``(4) any entity wholly owned, directly or indirectly, by a company that is considered an insurance holding company under the laws of any State if such entity satisfies the requirements described in subparagraphs (A) and (B) of paragraph (3), and ``(5) with respect to interest received on a qualified real estate loan secured by real estate described in subsection (c)(3)(A), any federally chartered instrumentality of the United States established under section 8.1(a) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-1(a)). ``(c) Qualified Real Estate Loan.--For purposes of this section-- ``(1) In general.--The term `qualified real estate loan' means any loan-- ``(A) secured by-- ``(i) rural or agricultural real estate, or ``(ii) a leasehold mortgage (with a status as a lien) on rural or agricultural real estate, ``(B) made to a person other than a specified foreign entity (as defined in section 7701(a)(51)), and ``(C) made after the date of the enactment of this section. For purposes of the preceding sentence, the determination of whether property securing such loan is rural or agricultural real estate shall be made as of the time the interest income on such loan is accrued. ``(2) Refinancings.--For purposes of subparagraphs (A) and (C) of paragraph (1), a loan shall not be treated as made after the date of the enactment of this section to the extent that the proceeds of such loan are used to refinance a loan which was made on or before the date of the enactment of this section (or, in the case of any series of refinancings, the original loan was made on or before such date). ``(3) Rural or agricultural real estate.--The term `rural or agricultural real estate' means-- ``(A) any real property which is substantially used for the production of one or more agricultural products, ``(B) any real property which is substantially used in the trade or business of fishing or seafood processing, and ``(C) any aquaculture facility. Such term shall not include any property which is not located in a State or a possession of the United States. ``(4) Aquaculture facility.--The term `aquaculture facility' means any land, structure, or other appurtenance that is used for aquaculture (including any hatchery, rearing pond, raceway, pen, or incubator). ``(d) Coordination With Section 265.--25 percent of any qualified real estate loan shall be treated as an obligation described in section 265(a)(2) the interest on which is wholly exempt from the taxes imposed by this subtitle.''. (b) Clerical Amendment.--The table of sections for part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 139K the following new item: ``Sec. 139L. Interest on loans secured by rural or agricultural real property.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. SEC. 70436. REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR CERTAIN DEVICES. (a) Transfer Tax.--Section 5811(a) is amended to read as follows: ``(a) Rate.--There shall be levied, collected, and paid on firearms transferred a tax at the rate of-- ``(1) $200 for each firearm transferred in the case of a machinegun or a destructive device, and ``(2) $0 for any firearm transferred which is not described in paragraph (1).''. (b) Making Tax.--Section 5821(a) is amended to read as follows: ``(a) Rate.--There shall be levied, collected, and paid upon the making of a firearm a tax at the rate of-- ``(1) $200 for each firearm made in the case of a machinegun or a destructive device, and ``(2) $0 for any firearm made which is not described in paragraph (1).''. (c) Conforming Amendment.--Section 4182(a) is amended by adding at the end the following: ``For purposes of the preceding sentence, any firearm described in section 5811(a)(2) shall be deemed to be a firearm on which the tax provided by section 5811 has been paid.'' (d) Effective Date.--The amendments made by this section shall apply to calendar quarters beginning more than 90 days after the date of the enactment of this Act. SEC. 70437. TREATMENT OF CAPITAL GAINS FROM THE SALE OF CERTAIN FARMLAND PROPERTY. (a) In General.--Part IV of subchapter O of chapter 1 is amended by redesignating section 1062 as section 1063 and by inserting after section 1061 the following new section: ``SEC. 1062. GAIN FROM THE SALE OR EXCHANGE OF QUALIFIED FARMLAND PROPERTY TO QUALIFIED FARMERS. ``(a) Election to Pay Tax in Installments.--In the case of gain from the sale or exchange of qualified farmland property to a qualified farmer, at the election of the taxpayer, the portion of the net income tax of such taxpayer for the taxable year of the sale or exchange which is equal to the applicable net tax liability shall be paid in 4 equal installments. ``(b) Rules Relating to Installment Payments.-- ``(1) Date for payment of installments.--If an election is made under subsection (a), the first installment shall be paid on the due date (determined without regard to any extension of time for filing the return) for the return of tax for the taxable year in which the sale or exchange occurs and each succeeding installment shall be paid on the due date (as so determined) for the return of tax [[Page S3738]] for the taxable year following the taxable year with respect to which the preceding installment was made. ``(2) Acceleration of payment.-- ``(A) In general.--If there is an addition to tax for failure to timely pay any installment required under this section, then the unpaid portion of all remaining installments shall be due on the date of such failure. ``(B) Individuals.--In the case of an individual, if the individual dies, then the unpaid portion of all remaining installment shall be paid on the due date for the return of tax for the taxable year in which the taxpayer dies. ``(C) C corporations.--In the case of a taxpayer which is a C corporation, trust, or estate, if there is a liquidation or sale of substantially all the assets of the taxpayer (including in a title 11 or similar case), a cessation of business by the taxpayer (in the case of a C corporation), or any similar circumstance, then the unpaid portion of all remaining installments shall be due on the date of such event (or in the case of a title 11 or similar case, the day before the petition is filed). The preceding sentence shall not apply to the sale of substantially all the assets of a taxpayer to a buyer if such buyer enters into an agreement with the Secretary under which such buyer is liable for the remaining installments due under this subsection in the same manner as if such buyer were the taxpayer. ``(3) Proration of deficiency to installments.--If an election is made under subsection (a) to pay the applicable net tax liability in installments and a deficiency has been assessed with respect to such applicable net tax liability, the deficiency shall be prorated to the installments payable under subsection (a). The part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as, and as a part of, such installment. The part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the Secretary. This section shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax. ``(c) Election.-- ``(1) In general.--Any election under subsection (a) shall be made not later than the due date for the return of tax for the taxable year described in subsection (a). ``(2) Partnerships and s corporations.--In the case of a sale or exchange described in subsection (a) by a partnership or S corporation, the election under subsection (a) shall be made at the partner or shareholder level. The Secretary may prescribe such regulations or other guidance as necessary to carry out the purposes of this paragraph. ``(d) Definitions.--For purposes of this section-- ``(1) Applicable net tax liability.-- ``(A) In general.--The applicable net tax liability with respect to the sale or exchange of any property described in subsection (a) is the excess (if any) of-- ``(i) such taxpayer's net income tax for the taxable year, over ``(ii) such taxpayer's net income tax for such taxable year determined without regard to any gain recognized from the sale or exchange of such property. ``(B) Net income tax.--The term `net income tax' means the regular tax liability reduced by the credits allowed under subparts A, B, and D of part IV of subchapter A. ``(2) Qualified farmland property.-- ``(A) In general.--The term `qualified farmland property' means real property located in the United States-- ``(i) which-- ``(I) has been used by the taxpayer as a farm for farming purposes, or ``(II) leased by the taxpayer to a qualified farmer for farming purposes, during substantially all of the 10-year period ending on the date of the qualified sale or exchange, and ``(ii) which is subject to a covenant or other legally enforceable restriction which prohibits the use of such property other than as a farm for farming purposes for any period before the date that is 10 years after the date of the sale or exchange described in subsection (a). For purposes of clause (i), property which is used or leased by a partnership or S corporation in a manner described in such clause shall be treated as used or leased in such manner by each person who holds a direct or indirect interest in such partnership or S corporation. ``(B) Farm; farming purposes.--The terms `farm' and `farming purposes' have the respective meanings given such terms under section 2032A(e). ``(3) Qualified farmer.--The term `qualified farmer' means any individual who is actively engaged in farming (within the meaning of subsections (b) and (c) of section 1001 of the Food Security Act of 1986 (7 U.S.C. 1308-1(b) and (c))). ``(e) Return Requirement.--A taxpayer making an election under subsection (a) shall include with the return for the taxable year of the sale or exchange described in subsection (a) a copy of the covenant or other legally enforceable restriction described in subsection (d)(2)(A)(ii).''. (b) Clerical Amendment.--The table of sections for part IV of subchapter O of chapter 1 is amended by redesignating the item relating to section 1062 as relating to section 1063 and by inserting after the item relating to section 1061 the following new item: ``Sec. 1062. Gain from the sale or exchange of qualified farmland property to qualified farmers.''. (c) Effective Date.--The amendments made by this section shall apply to sales or exchanges in taxable years beginning after the date of the enactment of this Act. SEC. 70438. EXTENSION OF RULES FOR TREATMENT OF CERTAIN DISASTER-RELATED PERSONAL CASUALTY LOSSES. For purposes of applying section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (division EE of Public Law 116-260), section 301 of such Act shall be applied by substituting the date of the enactment of this section for ``the date of the enactment of this Act'' each place it appears. CHAPTER 5--ENDING GREEN NEW DEAL SPENDING, PROMOTING AMERICA-FIRST ENERGY, AND OTHER REFORMS Subchapter A--Termination of Green New Deal Subsidies SEC. 70501. TERMINATION OF PREVIOUSLY-OWNED CLEAN VEHICLE CREDIT. Section 25E(g) is amended by striking ``December 31, 2032'' and inserting ``September 30, 2025''. SEC. 70502. TERMINATION OF CLEAN VEHICLE CREDIT. (a) In General.--Section 30D(h) is amended by striking ``placed in service after December 31, 2032'' and inserting ``acquired after September 30, 2025''. (b) Conforming Amendments.--Section 30D(e) is amended-- (1) in paragraph (1)(B)-- (A) in clause (iii), by inserting ``and'' after the comma at the end, (B) in clause (iv), by striking ``, and'' and inserting a period, and (C) by striking clause (v), and (2) in paragraph (2)(B)-- (A) in clause (ii), by inserting ``and'' after the comma at the end, (B) in clause (iii), by striking the comma at the end and inserting a period, and (C) by striking clauses (iv) through (vi). SEC. 70503. TERMINATION OF QUALIFIED COMMERCIAL CLEAN VEHICLES CREDIT. Section 45W(g) is amended by striking ``December 31, 2032'' and inserting ``September 30, 2025''. SEC. 70504. TERMINATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT. Section 30C(i) is amended by striking ``December 31, 2032'' and inserting ``June 30, 2026''. SEC. 70505. TERMINATION OF ENERGY EFFICIENT HOME IMPROVEMENT CREDIT. (a) In General.--Section 25C(h) is amended by striking ``placed in service'' and all that follows through ``December 31, 2032'' and inserting ``placed in service after December 31, 2025''. (b) Conforming Amendment.--Section 25C(d)(2)(C) is amended to read as follows: ``(C) Any oil furnace or hot water boiler which-- ``(i) meets or exceeds 2021 Energy Star efficiency criteria, and ``(ii) is rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of an eligible fuel.''. SEC. 70506. TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT. (a) In General.--Section 25D(h) is amended by striking ``to property placed in service after December 31, 2034'' and inserting ``with respect to any expenditures made after December 31, 2025''. (b) Conforming Amendments.--Section 25D(g) is amended-- (1) in paragraph (2), by inserting ``and'' after the comma at the end, (2) in paragraph (3), by striking `` and before January 1, 2033, 30 percent,'' and inserting ``30 percent.'', and (3) by striking paragraphs (4) and (5). SEC. 70507. TERMINATION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION. Section 179D is amended by adding at the end the following new subsection: ``(i) Termination.--This section shall not apply with respect to property the construction of which begins after June 30, 2026.''. SEC. 70508. TERMINATION OF NEW ENERGY EFFICIENT HOME CREDIT. Section 45L(h) is amended by striking ``December 31, 2032'' and inserting ``June 30, 2026''. SEC. 70509. TERMINATION OF COST RECOVERY FOR ENERGY PROPERTY AND QUALIFIED CLEAN ENERGY FACILITIES, PROPERTY, AND TECHNOLOGY. (a) Energy Property.--Section 168(e)(3)(B)(vi), as amended by section 13703 of Public Law 117-169, is amended-- (1) by striking subclause (I), and (2) by redesignating subclauses (II) and (III) as subclauses (I) and (II), respectively. (b) Qualified Clean Energy Facilities, Property, and Technology.--Section 168(e)(3)(B), as amended by section 13703 of Public Law 117-169 and by subsection (a), is amended-- (1) in clause (vi)(II), by adding ``and'' at the end, (2) in clause (vii), by striking ``, and'' and inserting a period, and (3) by striking clause (viii). (c) Effective Dates.-- (1) Energy property.--The amendments made by subsection (a) shall apply to property the construction of which begins after December 31, 2024. (2) Qualified clean energy facilities, property, and technology.--The amendments made by subsection (b) shall apply to [[Page S3739]] property placed in service after the date of enactment of this Act. SEC. 70510. MODIFICATIONS OF ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT. (a) Restrictions Relating to Prohibited Foreign Entities.-- Section 45U(c) is amended by adding at the end the following new paragraph: ``(3) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). ``(B) Other prohibited foreign entities.--No credit shall be determined under subsection (a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign- influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof).''. (b) Prohibition With Respect to Nuclear Power Facilities Using Nuclear Fuel Produced in Covered Nations or by Covered Entities.--Section 45U, as amended by subsection (a) of this section, is amended-- (1) in subsection (b)(1)-- (A) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and (B) by inserting after subparagraph (A) the following new subparagraph: ``(B) which satisfies the requirements described in subsection (c)(4),'', and (2) in subsection (c), by adding at the end the following new paragraph: ``(4) Restrictions relating to use of certain imported nuclear fuel.-- ``(A) In general.--For any taxable year, the requirements described in this paragraph with respect to any nuclear facility are that-- ``(i) with respect to any nuclear fuel used by such facility during such taxable year, such fuel was not-- ``(I) produced in a covered nation or by a covered entity, ``(II) exchanged with, traded for, or substituted for nuclear fuel described in subclause (I), or ``(III) otherwise obtained in lieu of nuclear fuel described in subclause (I) in a manner which is designed to circumvent the purposes of this paragraph, and ``(ii) the taxpayer shall certify to the Secretary (at such time and in such form and manner as the Secretary may prescribe) that any fuel used by such facility during such taxable year complies with the requirements described in clause (i). ``(B) Exception.--The requirements described in subparagraph (A) shall not apply with respect to any nuclear fuel which was acquired by the taxpayer pursuant to a binding written contract in effect before January 1, 2023, and which was not modified in any material respect on or after such date. ``(C) Other definitions.--In this paragraph-- ``(i) Covered entity.--The term `covered entity' means an entity organized under the laws of, or otherwise subject to the jurisdiction of, the government of a covered nation. ``(ii) Covered nation.--The term `covered nation' has the same meaning given such term under section 4872(f) of title 10, United States Code.''. (c) Effective Dates.-- (1) Restrictions relating to prohibited foreign entities.-- The amendments made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Restrictions relating to use of certain imported nuclear fuel.--The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2027. SEC. 70511. TERMINATION OF CLEAN HYDROGEN PRODUCTION CREDIT. Section 45V(c)(3)(C) is amended by striking ``January 1, 2033'' and inserting ``January 1, 2028''. SEC. 70512. TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT. (a) Termination for Wind and Solar Facilities.--Section 45Y(d) is amended-- (1) in paragraph (1), by striking ``The amount of'' and inserting ``Subject to paragraph (4), the amount of'', and (2) by striking paragraph (3) and inserting the following new paragraphs: ``(3) Applicable year.--For purposes of this subsection, the term `applicable year' means calendar year 2032. ``(4) Termination for wind and solar facilities.-- ``(A) In general.--This section shall not apply with respect to any applicable facility placed in service after December 31, 2027. ``(B) Applicable facility.--For purposes of this paragraph, the term `applicable facility' means a qualified facility which-- ``(i) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or ``(ii) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins).''. (b) Restrictions Relating to Prohibited Foreign Entities.-- Section 45Y is amended-- (1) in subsection (b)(1), by adding at the end the following new subparagraph: ``(E) Material assistance from prohibited foreign entities.--The term `qualified facility' shall not include any facility for which construction begins after December 31, 2025 (or, in the case of an applicable facility, as defined in subsection (d)(4)(B), after June 16, 2025), if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).'', and (2) in subsection (g), by adding at the end the following new paragraph: ``(13) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year if the taxpayer is-- ``(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(ii) a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). ``(B) Effective control.--In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such determination relates to a qualified facility described in subsection (b)(1).''. (c) Definitions Relating to Prohibited Foreign Entities.-- Section 7701(a) is amended by adding at the end the following new paragraphs: ``(51) Prohibited foreign entity.-- ``(A) In general.-- ``(i) Definition.--The term `prohibited foreign entity' means a specified foreign entity or a foreign-influenced entity. ``(ii) Determination.-- ``(I) In general.--Subject to subclause (II), for any taxable year, the determination as to whether an entity is a specified foreign entity or foreign-influenced entity shall be made as of the last day of such taxable year. ``(II) Initial taxable year.--For purposes of the first taxable year beginning after the date of enactment of this paragraph, the determination as to whether an entity is a specified foreign entity described in clauses (i) through (iv) of subparagraph (B) shall be made as of the first day of such taxable year. ``(B) Specified foreign entity.--For purposes of this paragraph, the term `specified foreign entity' means-- ``(i) a foreign entity of concern described in subparagraph (A), (B), (D), or (E) of section 9901(8) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 15 U.S.C. 4651), ``(ii) an entity identified as a Chinese military company operating in the United States in accordance with section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 10 U.S.C. 113 note), ``(iii) an entity included on a list required by clause (i), (ii), (iv), or (v) of section 2(d)(2)(B) of Public Law 117-78 (135 Stat. 1527), ``(iv) an entity specified under section 154(b) of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec. 4651), or ``(v) a foreign-controlled entity. ``(C) Foreign-controlled entity.--For purposes of subparagraph (B), the term `foreign-controlled entity' means-- ``(i) the government (including any level of government below the national level) of a covered nation, ``(ii) an agency or instrumentality of a government described in clause (i), ``(iii) a person who is a citizen or national of a covered nation, provided that such person is not an individual who is a citizen, national, or lawful permanent resident of the United States, ``(iv) an entity or a qualified business unit (as defined in section 989(a)) incorporated or organized under the laws of, or having its principal place of business in, a covered nation, or ``(v) an entity (including subsidiary entities) controlled (as determined under subparagraph (G)) by an entity described in clause (i), (ii), (iii), or (iv). ``(D) Foreign-influenced entity.-- ``(i) In general.--For purposes of subparagraph (A), the term `foreign-influenced entity' means an entity-- ``(I) with respect to which, during the taxable year-- ``(aa) a specified foreign entity has the direct authority to appoint a covered officer of such entity, ``(bb) a single specified foreign entity owns at least 25 percent of such entity, ``(cc) one or more specified foreign entities own in the aggregate at least 40 percent of such entity, or ``(dd) at least 15 percent of the debt of such entity has been issued, in the aggregate, to 1 or more specified foreign entities, or ``(II) which, during the previous taxable year, made a payment to a specified foreign entity pursuant to a contract, agreement, or other arrangement which entitles such specified foreign entity (or an entity related to such specified foreign entity) to exercise effective control over-- ``(aa) any qualified facility or energy storage technology of the taxpayer (or any person related to the taxpayer), or ``(bb) with respect to any eligible component produced by the taxpayer (or any person related to the taxpayer)-- [[Page S3740]] ``(AA) the extraction, processing, or recycling of any applicable critical mineral, or ``(BB) the production of an eligible component which is not an applicable critical mineral. ``(ii) Effective control.-- ``(I) In general.-- ``(aa) General rule.--Subject to subclause (II), for purposes of clause (i)(II), the term `effective control' means 1 or more agreements or arrangements similar to those described in subclauses (II) and (III) which provide 1 or more contractual counterparties of a taxpayer with specific authority over key aspects of the production of eligible components, energy generation in a qualified facility, or energy storage which are not included in the measures of control through authority, ownership, or debt held which are described in clause (i)(I). ``(bb) Guidance.--The Secretary shall issue such guidance as is necessary to carry out the purposes of this clause, including the establishment of rules to prevent entities from evading, circumventing, or abusing the application of the restrictions described subparagraph (C) and subclauses (II) and (III) of this clause through a contract, agreement, or other arrangement. ``(II) Application of rules prior to issuance of guidance.--During any period prior to the date that the guidance described in subclause (I)(bb) is issued by the Secretary, for purposes of clause (i)(II), the term `effective control' means the unrestricted contractual right of a contractual counterparty to-- ``(aa) determine the quantity or timing of production of an eligible component produced by the taxpayer, ``(bb) determine the amount or timing of activities related to the production of electricity undertaken at a qualified facility of the taxpayer or the storage of electrical energy in energy storage technology of the taxpayer, ``(cc) determine which entity may purchase or use the output of a production unit of the taxpayer that produces eligible components, ``(dd) determine which entity may purchase or use the output of a qualified facility of the taxpayer, ``(ee) restrict access to data critical to production or storage of energy undertaken at a qualified facility of the taxpayer, or to the site of production or any part of a qualified facility or energy storage technology of the taxpayer, to the personnel or agents of such contractual counterparty, or ``(ff) on an exclusive basis, maintain, repair, or operate any plant or equipment which is necessary to the production by the taxpayer of eligible components or electricity. ``(III) Licensing and other agreements.-- ``(aa) In general.--In addition to subclause (II), for purposes of clause (i)(II), the term `effective control' means, with respect to a licensing agreement for the provision of intellectual property or any other contract, agreement, or other arrangement entered into with a contractual counterparty which is related to such licensing agreement and to a qualified facility, energy storage technology, or the production of an eligible component, any of the following: ``(AA) A contractual right retained by the contractual counterparty to specify or otherwise direct 1 or more sources of components, subcomponents, or applicable critical minerals utilized in a qualified facility, energy storage technology, or in the production of an eligible component. ``(BB) A contractual right retained by the contractual counterparty to direct the operation of any qualified facility, any energy storage technology, or any production unit that produces an eligible component. ``(CC) A contractual right retained by the contractual counterparty to limit the taxpayer's utilization of intellectual property related to the operation of a qualified facility or energy storage technology, or in the production of an eligible component. ``(DD) A contractual right retained by the contractual counterparty to receive royalties under the licensing agreement or any similar agreement (or payments under any related agreement) beyond the 10th year of the agreement (including modifications or extensions thereof). ``(EE) A contractual right retained by the contractual counterparty to direct or otherwise require the taxpayer to enter into an agreement for the provision of services for a duration longer than 2 years (including any modifications or extensions thereof). ``(FF) Such contract, agreement, or other arrangement does not provide the licensee with all the technical data, information, and know-how necessary to enable the licensee to produce the eligible component or components subject to the contract, agreement, or other arrangement without further involvement from the contractual counterparty or a specified foreign entity. ``(GG) Such contract, agreement, or other arrangement was entered into (or modified) on or after June 16, 2025. ``(bb) Exception.-- ``(AA) In general.--Item (aa) shall not apply in the case of a bona fide purchase or sale of intellectual property. ``(BB) Bona fide purchase or sale.--For purposes of item (aa), any purchase or sale of intellectual property where the agreement provides that ownership of the intellectual property reverts to the contractual counterparty after a period of time shall not be considered a bona-fide purchase or sale. ``(IV) Persons related to the taxpayer.--For purposes of subclauses (I), (II), and (III), the term `taxpayer' shall include any person related to the taxpayer. ``(V) Contractual counterparty.--For purposes of this clause, the term `contractual counterparty' means an entity with which the taxpayer has entered into a contract, agreement, or other arrangement. ``(iii) Guidance.--Not later than December 31, 2026, the Secretary shall issue such guidance as is necessary to carry out the purposes of this subparagraph, including establishment of rules to prevent entities from evading, circumventing, or abusing the application of the restrictions against impermissible technology licensing arrangements with specified foreign entities, such as through temporary transfers of intellectual property, retention by a specified foreign entity of a reversionary interest in transferred intellectual property, or otherwise. ``(E) Publicly traded entities.-- ``(i) In general.-- ``(I) Nonapplication of certain foreign-controlled entity rules.--Subparagraph (C)(v) shall not apply in the case of any entity the securities of which are regularly traded on-- ``(aa) a national securities exchange which is registered with the Securities and Exchange Commission, ``(bb) the national market system established pursuant to section 11A of the Securities and Exchange Act of 1934, or ``(cc) any other exchange or other market which the Secretary has determined in guidance issued under section 1296(e)(1)(A)(ii) has rules adequate to carry out the purposes of part VI of subchapter P of chapter 1 of subtitle A. ``(II) Nonapplication of certain foreign-influenced entity rules.--Subparagraph (D)(i)(I) shall not apply in the case of any entity-- ``(aa) the securities of which are regularly traded in a manner described in subclause (I), or ``(bb) for which not less than 80 percent of the equity securities of such entity are owned directly or indirectly by an entity which is described in item (aa). ``(III) Exclusion of exchanges or markets in covered nations.--Subclause (I)(cc) shall not apply with respect to any exchange or market which-- ``(aa) is incorporated or organized under the laws of a covered nation, or ``(bb) has its principal place of business in a covered nation. ``(ii) Additional foreign-controlled entity requirements for publicly traded companies.--In the case of an entity described in clause (i)(I), such entity shall be deemed to be a foreign-controlled entity under subparagraph (C)(v) if such entity is controlled (as determined under subparagraph (G)) by-- ``(I) 1 or more specified foreign entities (as determined without regard to subparagraph (B)(v)) that are each required to report their beneficial ownership pursuant to a rule described in clause (iii)(I)(bb), or ``(II) 1 or more foreign-controlled entities (as determined without regard to subparagraph (C)(v)) that are each required to report their beneficial ownership pursuant to a rule described in such clause. ``(iii) Additional foreign-influenced entity requirements for publicly traded companies.--In the case of an entity described in clause (i)(II), such entity shall be deemed to be a foreign-influenced entity under subparagraph (D)(i)(I) if-- ``(I) during the taxable year-- ``(aa) a specified foreign entity has the authority to appoint a covered officer of such entity, ``(bb) a single specified foreign entity required to report its beneficial ownership under Rule 13d-3 of the Securities and Exchange Act of 1934 (or, in the case of an exchange or market described in clause (i)(I)(cc), an equivalent rule) owns not less than 25 percent of such entity, or ``(cc) 1 or more specified foreign entities that are each required to report their beneficial ownership under Rule 13d- 3 of the Securities and Exchange Act of 1934 own, in the aggregate, not less than 40 percent of such entity, or ``(II) such entity has issued debt, as part of an original issuance, in excess of 15 percent of its publicly-traded debt to 1 or more specified foreign entities. ``(F) Covered officer.--For purposes of this paragraph, the term `covered officer' means, with respect to an entity-- ``(i) a member of the board of directors, board of supervisors, or equivalent governing body, ``(ii) an executive-level officer, including the president, chief executive officer, chief operating officer, chief financial officer, general counsel, or senior vice president, or ``(iii) an individual having powers or responsibilities similar to those of officers or members described in clause (i) or (ii). ``(G) Determination of control.--For purposes of subparagraph (C)(v), the term `control' means-- ``(i) in the case of a corporation, ownership (by vote or value) of more than 50 percent of the stock in such corporation, ``(ii) in the case of a partnership, ownership of more than 50 percent of the profits interests or capital interests in such partnership, or ``(iii) in any other case, ownership of more than 50 percent of the beneficial interests in the entity. ``(H) Determination of ownership.--For purposes of this section, section 318(a)(2) [[Page S3741]] shall apply for purposes of determining ownership of stock in a corporation. Similar principles shall apply for purposes of determining ownership of interests in any other entity. ``(I) Other definitions.--For purposes of this paragraph-- ``(i) Applicable critical mineral.--The term `applicable critical mineral' has the same meaning given such term under section 45X(c)(6). ``(ii) Covered nation.--The term `covered nation' has the same meaning given such term under section 4872(f)(2) of title 10, United States Code. ``(iii) Eligible component.--The term `eligible component' has the same meaning given such term under section 45X(c)(1). ``(iv) Energy storage technology.--The term `energy storage technology' has the same meaning given such term under section 48E(c)(2). ``(v) Qualified facility.--The term `qualified facility' means-- ``(I) a qualified facility, as defined in section 45Y(b)(1), and ``(II) a qualified facility, as defined in section 48E(b)(3). ``(vi) Related.--The term `related' shall have the same meaning given such term under sections 267(b) and 707(b). ``(J) Beginning of construction.--For purposes of applying any provision under this paragraph, the beginning of construction with respect to any property shall be determined pursuant to rules similar to the rules under Internal Revenue Service Notice 2013-29 and Internal Revenue Service Notice 2018-59 (as well as any subsequently issued guidance clarifying, modifying, or updating either such Notice), as in effect on January 1, 2025. ``(K) Regulations and guidance.--The Secretary may prescribe such regulations and guidance as may be necessary or appropriate to carry out the provisions of this paragraph, including rules to prevent the circumvention of any rules or restrictions with respect to prohibited foreign entities. ``(52) Material assistance from a prohibited foreign entity.-- ``(A) In general.--The term `material assistance from a prohibited foreign entity' means-- ``(i) with respect to any qualified facility or energy storage technology, a material assistance cost ratio which is less than the threshold percentage applicable under subparagraph (B), or ``(ii) with respect to any facility which produces eligible components, a material assistance cost ratio which is less than the threshold percentage applicable under subparagraph (C). ``(B) Threshold percentage for qualified facilities and energy storage technology.--For purposes of subparagraph (A)(i), the threshold percentage shall be-- ``(i) in the case of a qualified facility the construction of which begins-- ``(I) after June 16, 2025, and before January 1, 2026, 37.5 percent, ``(II) during calendar year 2026, 40 percent, ``(III) during calendar year 2027, 45 percent, ``(IV) during calendar year 2028, 50 percent, ``(V) during calendar year 2029, 55 percent, and ``(VI) after December 31, 2029, 60 percent, and ``(ii) in the case of energy storage technology the construction of which begins-- ``(I) during calendar year 2026, 55 percent, ``(II) during calendar year 2027, 60 percent, ``(III) during calendar year 2028, 65 percent, ``(IV) during calendar year 2029, 70 percent, and ``(V) after December 31, 2029, 75 percent. ``(C) Threshold percentage for eligible components.-- ``(i) In general.--For purposes of subparagraph (A)(ii), the threshold percentage shall be-- ``(I) in the case of any solar energy component (as such term is defined in section 45X(c)(3)(A)) which is sold-- ``(aa) during calendar year 2026, 50 percent, ``(bb) during calendar year 2027, 60 percent, ``(cc) during calendar year 2028, 70 percent, ``(dd) during calendar year 2029, 80 percent, and ``(ee) after December 31, 2029, 85 percent, ``(II) in the case of any wind energy component (as such term is defined in section 45X(c)(4)(A)) which is sold-- ``(aa) during calendar year 2026, 85 percent, and ``(bb) during calendar year 2027, 90 percent, ``(III) in the case of any inverter described in subparagraphs (B) through (G) of section 45X(c)(2) which is sold-- ``(aa) during calendar year 2026, 50 percent, ``(bb) during calendar year 2027, 55 percent, ``(cc) during calendar year 2028, 60 percent, ``(dd) during calendar year 2029, 65 percent, and ``(ee) after December 31, 2029, 70 percent, ``(IV) in the case of any qualifying battery component (as such term is defined in section 45X(c)(5)(A)) which is sold-- ``(aa) during calendar year 2026, 60 percent, ``(bb) during calendar year 2027, 65 percent, ``(cc) during calendar year 2028, 70 percent, ``(dd) during calendar year 2029, 80 percent, and ``(ee) after December 31, 2029, 85 percent, and ``(V) subject to clause (ii), in the case of any applicable critical mineral (as such term is defined in section 45X(c)(6)) which is sold-- ``(aa) after December 31, 2025, and before January 1, 2030, 0 percent, ``(bb) during calendar year 2030, 25 percent, ``(cc) during calendar year 2031, 30 percent, ``(dd) during calendar year 2032, 40 percent, and ``(ee) after December 31, 2032, 50 percent. ``(ii) Adjusted threshold percentage for applicable critical minerals.--Not later than December 31, 2027, the Secretary shall issue threshold percentages for each of the applicable critical minerals described in section 45X(c)(6)), which shall-- ``(I) apply in lieu of the threshold percentage determined under clause (i)(V) for each calendar year, and ``(II) equal or exceed the threshold percentage which would otherwise apply with respect to such applicable critical mineral under such clause for such calendar year, taking into account-- ``(aa) domestic geographic availability, ``(bb) supply chain constraints, ``(cc) domestic processing capacity needs, and ``(dd) national security concerns. ``(D) Material assistance cost ratio.-- ``(i) Qualified facilities and energy storage technology.-- For purposes of subparagraph (A)(i), the term `material assistance cost ratio' means the amount (expressed as a percentage) equal to the quotient of-- ``(I) an amount equal to-- ``(aa) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are incorporated into the qualified facility or energy storage technology upon completion of construction, minus ``(bb) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are-- ``(AA) incorporated into the qualified facility or energy storage technology upon completion of construction, and ``(BB) mined, produced, or manufactured by a prohibited foreign entity, divided by ``(II) the amount described in subclause (I)(aa). ``(ii) Eligible components.--For purposes of subparagraph (A)(ii), the term `material assistance cost ratio' means the amount (expressed as a percentage) equal to the quotient of-- ``(I) an amount equal to-- ``(aa) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer for production of such eligible component, minus ``(bb) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer for production of such eligible component that are attributable to a prohibited foreign entity, divided by ``(II) the amount described in subclause (I)(aa). ``(iii) Safe harbor tables.-- ``(I) In general.--Not later than December 31, 2026, the Secretary shall issue safe harbor tables (and such other guidance as deemed necessary) to-- ``(aa) identify the percentage of total direct costs of any manufactured product which is attributable to a prohibited foreign entity, ``(bb) identify the percentage of total direct material costs of any eligible component which is attributable to a prohibited foreign entity, and ``(cc) provide all rules necessary to determine the amount of a taxpayer's material assistance from a prohibited foreign entity within the meaning of this paragraph. ``(II) Safe harbors prior to issuance.--For purposes of this paragraph, prior to the date on which the Secretary issues the safe harbor tables described in subclause (I), and for construction of a qualified facility or energy storage technology which begins on or before the date which is 60 days after the date of issuance of such tables, a taxpayer may-- ``(aa) use the tables included in Internal Revenue Service Notice 2025-08 to establish the percentage of the total direct costs of any listed eligible component and any manufactured product, and ``(bb) rely on a certification by the supplier of the manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component-- ``(AA) of the total direct costs or the total direct material costs, as applicable, of such product or component that was not produced or manufactured by a prohibited foreign entity, or ``(BB) that such product or component was not produced or manufactured by a prohibited foreign entity. ``(III) Exception.--Notwithstanding subclauses (I) and (II)-- ``(aa) if the taxpayer knows (or has reason to know) that a manufactured product or eligible component was produced or manufactured by a prohibited foreign entity, the taxpayer shall treat all direct costs with respect to such manufactured product, or all direct material costs with respect to such eligible component, as attributable to a prohibited foreign entity, and ``(bb) if the taxpayer knows (or has reason to know) that the certification referred to in subclause (II)(bb) pertaining to a manufactured product or eligible component is inaccurate, the taxpayer may not rely on such certification. ``(IV) Certification requirement.--In a manner consistent with Treasury Regulation [[Page S3742]] section 1.45X-4(c)(4)(i) (as in effect on the date of enactment of this paragraph), the certification referred to in subclause (II)(bb) shall-- ``(aa) include-- ``(AA) the supplier's employer identification number, or ``(BB) any such similar identification number issued by a foreign government, ``(bb) be signed under penalties of perjury, ``(cc) be retained by the supplier and the taxpayer for a period of not less than 6 years and shall be provided to the Secretary upon request, and ``(dd) be from the supplier from which the taxpayer purchased any manufactured product, eligible component, or constituent elements, materials, or subcomponents of an eligible component, stating either-- ``(AA) that such property was not produced or manufactured by a prohibited foreign entity and that the supplier is not aware that any prior supplier in the chain of production of that property is a prohibited foreign entity, ``(BB) for purposes of section 45X, the total direct material costs for each component, constituent element, material, or subcomponent that were not produced or manufactured by a prohibited foreign entity, or ``(CC) for purposes of section 45Y or section 48E, the total direct costs attributable to all manufactured products that were not produced or manufactured by a prohibited foreign entity. ``(iv) Existing contract.--Upon the election of the taxpayer (in such form and manner as the Secretary shall designate), in the case of any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component which is-- ``(I) acquired by the taxpayer, or manufactured or assembled by or for the taxpayer, pursuant to a binding written contract which was entered into prior to June 16, 2025, and ``(II)(aa) placed into service before January 1, 2030 (or, in the case of an applicable facility, as defined in section 45Y(d)(4)(B), before January 1, 2028), or ``(bb) in the case of a constituent element, material, or subcomponent, used in a product sold before January 1, 2030, the cost to the taxpayer with respect to such product, component, element, material, or subcomponent shall not be included for purposes of determining the material assistance cost ratio under this subparagraph. ``(v) Anti-circumvention rules.--The Secretary shall prescribe such regulations and guidance as may be necessary or appropriate to prevent circumvention of the rules under this subparagraph, including prevention of-- ``(I) any abuse of the exception provided under clause (iv) through the stockpiling of any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component during any period prior to the application of the requirements under this paragraph, or ``(II) any evasion with respect to the requirements of this subparagraph where the facts and circumstances demonstrate that the beginning of construction of a qualified facility or energy storage technology has not in fact occurred. ``(E) Other definitions.--For purposes of this paragraph-- ``(i) Eligible component.--The term `eligible component' means-- ``(I) any property described in section 45X(c)(1), or ``(II) any component which is identified by the Secretary pursuant to regulations or guidance issued under subparagraph (G). ``(ii) Energy storage technology.--The term `energy storage technology' has the same meaning given such term under section 48E(c)(2). ``(iii) Manufactured product.--The term `manufactured product' means-- ``(I) a manufactured product which is a component of a qualified facility, as described in section 45Y(g)(11)(B) and any guidance issued thereunder, or ``(II) any product which is identified by the Secretary pursuant to regulations or guidance issued under subparagraph (G). ``(iv) Qualified facility.--The term `qualified facility' means-- ``(I) a qualified facility, as defined in section 45Y(b)(1), ``(II) a qualified facility, as defined in section 48E(b)(3), and ``(III) any qualified interconnection property (as defined in section 48E(b)(4)) which is part of the qualified investment with respect to a qualified facility (as described in section 48E(b)(1)). ``(F) Beginning of construction.--Rules similar to the rules under paragraph (51)(J) shall apply for purposes of this paragraph. ``(G) Regulations and guidance.--The Secretary may prescribe such regulations and guidance as may be necessary or appropriate to carry out the provisions of this paragraph, including-- ``(i) identification of components or products for purposes of clauses (i) and (iii) of subparagraph (E), and ``(ii) for purposes of subparagraph (A)(ii), rules to address facilities which produce more than one eligible component.''. (d) Denial of Credit for Certain Wind and Solar Leasing Arrangements.--Section 45Y is amended by adding at the end the following new subsection: ``(h) Denial of Credit for Wind and Solar Leasing Arrangements.--No credit shall be determined under this section with respect to any production of electricity during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.''. (e) Emissions Rates Tables.--Section 45Y(b)(2)(C) is amended by adding at the end the following new clause: ``(iii) Existing studies.--For purposes of clause (i), in determining greenhouse gas emissions rates for types or categories of facilities for the purpose of determining whether a facility satisfies the requirements under paragraph (1), the Secretary shall consider studies published on or before the date of enactment of this clause which demonstrate a net lifecycle greenhouse gas emissions rate which is not greater than zero using widely accepted lifecycle assessment concepts, such as concepts described in standards developed by the International Organization for Standardization.''. (f) Nuclear Energy Communities.-- (1) In general.--Section 45(b)(11) is amended-- (A) in subparagraph (B)-- (i) in clause (ii)(II), by striking ``or'' at the end, (ii) in clause (iii)(II), by striking the period at the end and inserting ``, or'', and (iii) by adding at the end the following new clause: ``(iv) for purposes of any qualified facility which is an advanced nuclear facility, a metropolitan statistical area which has (or, at any time during the period beginning after December 31, 2009, had) 0.17 percent or greater direct employment related to the advancement of nuclear power, including employment related to-- ``(I) an advanced nuclear facility, ``(II) advanced nuclear power research and development, ``(III) nuclear fuel cycle research, development, or production, including mining, enrichment, manufacture, storage, disposal, or recycling of nuclear fuel, and ``(IV) the manufacturing or assembly of components used in an advanced nuclear facility.'', and (B) by adding at the end the following new subparagraph: ``(C) Advanced nuclear facilities.-- ``(i) In general.--Subject to clause (ii), for purposes of subparagraph (B)(iv), the term `advanced nuclear facility' means any nuclear facility the reactor design for which is approved in the manner described in section 45J(d)(2). ``(ii) Special rule.--For purposes of clause (i), a facility shall be deemed to have a reactor design which is approved in the manner described in section 45J(d)(2) if the Nuclear Regulatory Commission has authorized construction and issued a site-specific construction permit or combined license with respect to such facility.''. (2) Nonapplication for clean electricity investment credit.--Section 48E(a)(3)(A)(i) is amended by inserting ``, as applied without regard to clause (iv) thereof'' after ``section 45(b)(11)(B)''. (g) Conforming Amendments.-- (1) Paragraph (1) of section 48D(c) is amended to read as follows: ``(1) is not a specified foreign entity (as defined in section 7701(a)(51)(B)), and''. (2) Section 45Y(b)(1) is amended-- (A) by redesignating subparagraph (D) as subparagraph (E), and (B) by inserting after subparagraph (C) the following new subparagraph: ``(D) Determination of capacity.--For purposes of subparagraph (C), additions of capacity of a facility shall be determined in any reasonable manner, including based on-- ``(i) determinations by, or reports to, the Federal Energy Regulatory Commission (including interconnection agreements), the Nuclear Regulatory Commission, or any similar entity, reflecting additions of capacity, ``(ii) determinations or reports reflecting additions of capacity made by an independent professional engineer, ``(iii) reports to, or issued by, regional transmission organizations or independent system operators reflecting additions of capacity, or ``(iv) any other method or manner provided by the Secretary.''. (h) Prohibition on Transfer of Credits to Specified Foreign Entities.--Section 6418(g) is amended by adding at the end the following new paragraph: ``(5) Prohibition on transfer of credits to specified foreign entities.--With respect to any eligible credit described in clause (iii), (iv), (vi), (vii), (viii), or (xi) of subsection (f)(1)(A), an eligible taxpayer may not elect to transfer any portion of such credit to a taxpayer that is a specified foreign entity (as defined in section 7701(a)(51)(B)).''. (i) Extension of Period of Limitations for Errors Relating to Determining of Material Assistance From a Prohibited Foreign Entity.--Section 6501 is amended-- (1) by redesignating subsection (o) as subsection (p), and (2) by inserting after subsection (n) the following new subsection: ``(o) Material Assistance From a Prohibited Foreign Entity.--In the case of a deficiency attributable to an error with respect to the determination under section 7701(a)(52) for any taxable year, such deficiency may be assessed at any time within 6 years after the return for such year was filed.''. [[Page S3743]] (j) Imposition of Accuracy-related Penalties.-- (1) In general.--Section 6662 is amended by adding at the end the following new subsection: ``(m) Substantial Understatement of Income Tax Due to Disallowance of Applicable Energy Credits.-- ``(1) In general.--In the case of a taxpayer for which there is a disallowance of an applicable energy credit for any taxable year, for purposes of determining whether there is a substantial understatement of income tax for such taxable year, subsection (d)(1) shall be applied-- ``(A) in subparagraphs (A) and (B), by substituting `1 percent' for `10 percent' each place it appears, and ``(B) without regard to subparagraph (C). ``(2) Disallowance of an applicable energy credit.--For purposes of this subsection, the term `disallowance of an applicable energy credit' means the disallowance of a credit under section 45X, 45Y, or 48E by reason of overstating the material assistance cost ratio (as determined under section 7701(a)(52)) with respect to any qualified facility, energy storage technology, or facility which produces eligible components.''. (2) Conforming amendment.--Section 6417(d)(6) is amended by adding at the end the following new subparagraph: ``(D) Disallowance of an applicable energy credit.--In the case of an applicable entity which made an election under subsection (a) with respect to an applicable credit for which there is a disallowance described in section 6662(m)(2), subparagraph (A) shall apply with respect to any excessive payment resulting from such disallowance.''. (k) Penalty for Substantial Misstatements on Certification Provided by Supplier.-- (1) In general.--Part I of subchapter B of chapter 68 is amended by inserting after section 6695A the following new section: ``SEC. 6695B. PENALTY FOR SUBSTANTIAL MISSTATEMENTS ON CERTIFICATION PROVIDED BY SUPPLIER. ``(a) Imposition of Penalty.--If-- ``(1) a person-- ``(A) provides a certification described in clause (iii)(II)(bb) of section 7701(a)(52)(D) with respect to any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component, and ``(B) knows, or reasonably should have known, that the certification would be used in connection with a determination under such section, ``(2) such certification is inaccurate or false with respect to-- ``(A) whether such property was produced or manufactured by a prohibited foreign entity, or ``(B) the total direct costs or total direct material costs of such property that was not produced or manufactured by a prohibited foreign entity that were provided on such certification, and ``(3) the inaccuracy or falsity described in paragraph (2) resulted in the disallowance of an applicable energy credit (as defined in section 6662(m)(2)) and an understatement of income tax (within the meaning of section 6662(d)(2)) for the taxable year in an amount which exceeds the lesser of-- ``(A) 5 percent of the tax required to be shown on the return for the taxable year, or ``(B) $100,000, then such person shall pay a penalty in the amount determined under subsection (b). ``(b) Amount of Penalty.--The amount of the penalty imposed under subsection (a) on any person with respect to a certification shall be equal to the greater of-- ``(1) 10 percent of the amount of the underpayment (as defined in section 6664(a)) solely attributable to the inaccuracy or falsity described in subsection (a)(2), or ``(2) $5,000. ``(c) Exception.--No penalty shall be imposed under subsection (a) if the person establishes to the satisfaction of the Secretary that any inaccuracy or falsity described in subsection (a)(2) is due to a reasonable cause and not willful neglect. ``(d) Definitions.--Any term used in this section which is also used in section 7701(a)(52) shall have the meaning given such term in such section.''. (2) Clerical amendments.-- (A) Section 6696 is amended-- (i) in the heading, by striking ``and 6695a'' and inserting ``6695a, and 6695b'', (ii) in subsections (a), (b), and (e), by striking ``and 6695A'' each place it appears and inserting ``6695A, and 6695B'', (iii) in subsection (c), by striking ``or 6695A'' and inserting ``6695A, or 6695B'', and (iv) in subsection (d)-- (I) in paragraph (1), by inserting ``(or, in the case of any penalty under section 6695B, 6 years)'' after ``assessed within 3 years'', and (II) in paragraph (2), by inserting ``(or, in the case of any claim for refund of an overpayment of any penalty assessed under section 6695B, 6 years)'' after ``filed within 3 years''. (B) The table of sections for part I of subchapter B of chapter 68 is amended by inserting after item relating to section 6695A the following new item: ``Sec. 6695B. Penalty for substantial misstatements on certification provided by supplier.''. (l) Excise Tax on Facilities That Receive Material Assistance From Prohibited Foreign Entities.-- (1) In general.--Subtitle D is amended by adding at the end the following new chapter: ``CHAPTER 50B--MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTITIES ``Sec. 5000E-1. Imposition of tax. ``SEC. 5000E-1. IMPOSITION OF TAX. ``(a) In General.--In the case of an applicable facility for which there is a material assistance cost ratio violation, a tax is hereby imposed for the taxable year in which such facility is placed in service in the amount determined under subsection (d) with respect to such facility. ``(b) Applicable Facility.--For purposes of this section, the term `applicable facility' means a facility owned by the taxpayer-- ``(1) which-- ``(A) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or ``(B) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), and ``(2) either-- ``(A) the construction of which begins after the date of the enactment of this section and before January 1, 2028, and which is placed in service after December 31, 2027, or ``(B) the construction of which begins after December 31, 2027, and before January 1, 2036. ``(c) Material Assistance Cost Ratio Violation.--For purposes of this section, the term `material assistance cost ratio violation' means, with respect to an applicable facility, that the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)). ``(d) Amount of Tax.-- ``(1) In general.--The amount determined under this subsection with respect to any applicable facility shall be equal to the applicable percentage of the amount equal to the product of-- ``(A) the amount (expressed in percentage points) by which the threshold percentage (as determined under section 7701(a)(52)(B)(i)) exceeds the material assistance cost ratio (as determined under section 7701(a)(52)(D)(i)), multiplied by ``(B) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are incorporated into the applicable facility upon completion of construction (as determined under section 7701(a)(52)(D)(i)(I)). ``(2) Applicable percentage.--For purposes of paragraph (1), the applicable percentage shall be-- ``(A) in the case of a facility described in subparagraph (A) of subsection (b)(1), 30 percent, or ``(B) in the case of a facility described in subparagraph (B) of such subsection, 50 percent. ``(e) Rule of Application.--For purposes of this section, with respect to the application of section 7701(a)(52) or any provision thereof, such section shall be applied by substituting `applicable facility' for `qualified facility' each place it appears.''. (2) Clerical amendment.--The table of chapters for subtitle D is amended by inserting after the item relating to chapter 50A the following new item: ``Chapter 50B--Material Assistance From Prohibited Foreign Entities''. (m) Effective Dates.-- (1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Material assistance from prohibited foreign entities.-- The amendments made by subsection (b)(1) shall apply to facilities for which construction begins after June 16, 2025. (3) Excise tax on facilities that receive material assistance from prohibited foreign entities.--The amendments made by subsection (l) shall apply to facilities for which construction begins after June 16, 2025. (4) Penalty for substantial misstatements on certification provided by supplier.--The amendments made by subsection (k) shall apply to certifications provided after December 31, 2025. (5) Termination for wind and solar facilities.--The amendments made by subsection (a) shall apply to facilities the construction of which begins after the date of enactment of this Act. SEC. 70513. TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT. (a) Termination for Wind and Solar Facilities.--Section 48E(e) is amended-- (1) in paragraph (1), by striking ``The amount of'' and inserting ``Subject to paragraph (4), the amount of'', and (2) by adding at the end the following new paragraph: ``(4) Termination for wind and solar facilities.-- ``(A) In general.--This section shall not apply to any qualified property placed in service by the taxpayer after December 31, 2027, which is part of an applicable facility. ``(B) Applicable facility.--For purposes of this paragraph, the term `applicable facility' means a qualified facility which-- ``(i) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to [[Page S3744]] any requirement under such section with respect to the date on which construction of property begins), or ``(ii) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins). ``(C) Exception.--This paragraph shall not apply with respect to any energy storage technology which is placed in service at any applicable facility.''. (b) Restrictions Relating to Prohibited Foreign Entities.-- (1) In general.--Section 48E is amended-- (A) in subsection (b)-- (i) by redesignating paragraph (6) as paragraph (7), and (ii) by inserting after paragraph (5) the following new paragraph: ``(6) Material assistance from prohibited foreign entities.-- ``(A) In general.--Subject to subparagraph (B), the terms `qualified facility' and `qualified interconnection property' shall not include any facility or property the construction, reconstruction, or erection of which begins after December 31, 2025, if the construction, reconstruction, or erection of such facility or property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)). ``(B) Applicable facilities.--The term `qualified facility' shall not include any applicable facility (as defined in subsection (e)(4)(B)) for which construction begins after June 16, 2025, if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).'', and (B) in subsection (c), by adding at the end the following new paragraph: ``(3) Material assistance from prohibited foreign entities.--The term `energy storage technology' shall not include any property the construction of which begins after December 31, 2025, if the construction of such property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).''. (2) Additional restrictions.--Section 48E(d) is amended by adding at the end the following new paragraph: ``(6) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year if the taxpayer is-- ``(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(ii) a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). ``(B) Effective control.--In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such determination relates to a qualified facility described in subsection (b)(3) or energy storage technology described in subsection (c)(2).''. (3) Recapture.-- (A) In general.--Section 50(a) is amended-- (i) by redesignating paragraphs (4) through (6) as paragraphs (5) through (7), respectively, (ii) by inserting after paragraph (3) the following new paragraph: ``(4) Payments to prohibited foreign entities.-- ``(A) In general.--If there is an applicable payment made by a specified taxpayer before the close of the 10-year period beginning on the date such taxpayer placed in service investment credit property which is eligible for the clean electricity investment credit under section 48E(a), then the tax under this chapter for the taxable year in which such applicable payment occurs shall be increased by 100 percent of the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero any credit determined under section 46 which is attributable to the clean electricity investment credit under section 48E(a) with respect to such property. ``(B) Applicable payment.--For purposes of this paragraph, the term `applicable payment' means, with respect to any taxable year, a payment or payments described in section 7701(a)(51)(D)(i)(II). ``(C) Specified taxpayer.--For purposes of this paragraph, the term `specified taxpayer' means any taxpayer who has been allowed a credit under section 48E(a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph.'', (iii) in paragraph (5), as redesignated by clause (i), by striking ``or any applicable transaction to which paragraph (3)(A) applies,'' and inserting ``any applicable transaction to which paragraph (3)(A) applies, or any applicable payment to which paragraph (4)(A) applies,'', and (iv) in paragraph (7), as redesignated by clause (i), by striking ``or (3)'' and inserting ``(3), or (4)''. (B) Conforming amendments.-- (i) Section 1371(d)(1) is amended by striking ``section 50(a)(5)'' and inserting ``section 50(a)(6)''. (ii) Section 6418(g)(3) is amended by striking ``subsection (a)(5)'' each place it appears and inserting ``subsection (a)(7)''. (c) Denial of Credit for Expenditures for Certain Wind and Solar Leasing Arrangements.-- (1) In general.--Section 48E is amended-- (A) by redesignating subsection (i) as subsection (j), and (B) by inserting after subsection (h) the following new subsection: ``(i) Denial of Credit for Expenditures for Wind and Solar Leasing Arrangements.--No credit shall be determined under this section for any qualified investment during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.''. (2) Conforming rules.--Section 50 is amended by adding at the end the following new subsection: ``(e) Rules for Geothermal Heat Pumps.--For purposes of this section and section 168, the ownership of energy property described in section 48(a)(3)(A)(vii) shall be determined without regard to whether such property is readily usable by a person other than the lessee or service recipient.''. (d) Domestic Content Rules.--Subparagraph (B) of section 48E(a)(3) is amended to read as follows: ``(B) Domestic content.--Rules similar to the rules of section 48(a)(12) shall apply, except that, for purposes of subparagraph (B) of such section and the application of rules similar to the rules of section 45(b)(9)(B), the adjusted percentage (as determined under section 45(b)(9)(C)) shall be determined as follows: ``(i) In the case of any qualified investment with respect to any qualified facility the construction of which begins before June 16, 2025, 40 percent (or, in the case of a qualified facility which is an offshore wind facility, 20 percent). ``(ii) In the case of any qualified investment with respect to any qualified facility the construction of which begins on or after June 16, 2025, and before January 1, 2026, 45 percent (or, in the case of a qualified facility which is an offshore wind facility, 27.5 percent). ``(iii) In the case of any qualified investment with respect to any qualified facility the construction of which begins during calendar year 2026, 50 percent (or, in the case of a qualified facility which is an offshore wind facility, 35 percent). ``(iv) In the case of any qualified investment with respect to any qualified facility the construction of which begins after December 31, 2026, 55 percent.''. (e) Elimination of Energy Credit for Certain Energy Property.--Section 48(a)(2) is amended-- (1) in subparagraph (A)(ii), by striking ``2 percent'' and inserting ``0 percent'', and (2) by adding at the end the following new subparagraph: ``(C) Nonapplication of increases to energy percentage.-- For purposes of energy property described in subparagraph (A)(ii), the energy percentage applicable to such property pursuant to such subparagraph shall not be increased or otherwise adjusted by any provision of this section.''. (f) Application of Clean Electricity Investment Credit to Qualified Fuel Cell Property.--Section 48E, as amended by subsection (c), is amended-- (1) by redesignating subsection (j) as subsection (k), and (2) by inserting after subsection (i) the following new subsection: ``(j) Application to Qualified Fuel Cell Property.--For purposes of this section, in the case of any qualified fuel cell property (as defined in section 48(c)(1), as applied without regard to subparagraph (E) thereof)-- ``(1) subsection (b)(3)(A) shall be applied without regard to clause (iii) thereof, ``(2) for purposes of subsection (a)(1), the applicable percentage shall be 30 percent and such percentage shall not be increased or otherwise adjusted by any other provision of this section, and ``(3) subsection (g) shall not apply.''. (g) Effective Dates.-- (1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025. (3) Elimination of energy credit for certain energy property.--The amendments made by subsection (e) shall apply to property the construction of which begins on or after June 16, 2025. (4) Application of clean electricity investment credit to qualified fuel cell property.--The amendments made by subsection (f) shall apply to property the construction of which begins after December 31, 2025. (5) Termination for wind and solar facilities.--The amendments made by subsection (a) shall apply to facilities the construction of which begins after the date of enactment of this Act. SEC. 70514. PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING PRODUCTION CREDIT. (a) Modification of Provision Relating to Sale of Integrated Components.--Paragraph (4) of section 45X(d) is amended to read as follows: ``(4) Sale of integrated components.-- ``(A) In general.--For purposes of this section, a person shall be treated as having sold an eligible component to an unrelated person if-- [[Page S3745]] ``(i) such component (referred to in this paragraph as the `primary component') is integrated, incorporated, or assembled into another eligible component (referred to in this paragraph as the `secondary component') produced within the same manufacturing facility as the primary component, and ``(ii) the secondary component is sold to an unrelated person. ``(B) Additional requirements.--Subparagraph (A) shall only apply with respect to a secondary component for which not less than 65 percent of the total direct material costs which are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer to produce such secondary component are attributable to primary components which are mined, produced, or manufactured in the United States.''. (b) Phase Out and Termination.--Section 45X(b)(3) is amended-- (1) in the heading, by inserting ``and termination'' after ``Phase out'', (2) in subparagraph (A), in the matter preceding clause (i), by striking ``subparagraph (C)'' and inserting ``subparagraphs (C) and (D)'', and (3) by striking subparagraph (C) and inserting the following: ``(C) Phase out for applicable critical minerals other than metallurgical coal.-- ``(i) In general.--In the case of any applicable critical mineral (other than metallurgical coal) produced after December 31, 2030, the amount determined under this subsection with respect to such mineral shall be equal to the product of-- ``(I) the amount determined under paragraph (1) with respect to such mineral, as determined without regard to this subparagraph, multiplied by ``(II) the phase out percentage under clause (ii). ``(ii) Phase out percentage for applicable critical minerals other than metallurgical coal.--The phase out percentage under this clause is equal to-- ``(I) in the case of any applicable critical mineral produced during calendar year 2031, 75 percent, ``(II) in the case of any applicable critical mineral produced during calendar year 2032, 50 percent, ``(III) in the case of any applicable critical mineral produced during calendar year 2033, 25 percent, and ``(IV) in the case of any applicable critical mineral produced after December 31, 2033, 0 percent. ``(D) Termination for wind energy components.--This section shall not apply to any wind energy component produced and sold after December 31, 2027. ``(E) Termination for metallurgical coal.--This section shall not apply to any metallurgical coal produced after December 31, 2029.''. (c) Restrictions Relating to Prohibited Foreign Entities.-- Section 45X is amended-- (1) in subsection (c)(1), by adding at the end the following new subparagraph: ``(C) Material assistance from prohibited foreign entities.--In the case of taxable years beginning after the date of enactment of this subparagraph, the term `eligible component' shall not include any property which includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52), as applied by substituting `used in a product sold before January 1, 2027' for `used in a product sold before January 1, 2030' in subparagraph (D)(iii)(V)(bb) thereof).'', and (2) in subsection (d), as amended by subsection (a) of this section, by adding at the end the following new paragraph: ``(4) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year if the taxpayer is-- ``(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(ii) a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). ``(B) Effective control.--In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such determination relates to an eligible component described in subsection (c)(1).''. (d) Modification of Definition of Battery Module.--Section 45X(c)(5)(B)(iii) is amended-- (1) in subclause (I)(bb), by striking ``and'' at the end, (2) in subclause (II), by striking the period at the end and inserting ``, and'', and (3) by adding at the end the following new subclause: ``(III) which is comprised of all other essential equipment needed for battery functionality, such as current collector assemblies and voltage sense harnesses, thermal collection assemblies, or other essential energy collection equipment.''. (e) Inclusion of Metallurgical Coal as an Applicable Critical Mineral for Purposes of the Advanced Manufacturing Production Credit.-- (1) In general.--Section 45X(c)(6) is amended-- (A) by redesignating subparagraphs (R) through (Z) as subparagraphs (S) through (AA), respectively, and (B) by inserting after subparagraph (Q) the following new subparagraph: ``(R) Metallurgical coal.--Metallurgical coal which is suitable for use in the production of steel (within the meaning of the notice published by the Department of Energy entitled `Critical Material List; Addition of Metallurgical Coal Used for Steelmaking' (90 Fed. Reg. 22711 (May 29, 2025))), regardless of whether such production occurs inside or outside of the United States.''. (2) Credit amount.--Section 45X(b)(1)(M) is amended by inserting ``(2.5 percent in the case of metallurgical coal)'' after ``10 percent''. (f) Effective Dates.-- (1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Modification of provision relating to sale of integrated components.--The amendment made by subsection (a) shall apply to components sold during taxable years beginning after December 31, 2026. SEC. 70515. RESTRICTION ON THE EXTENSION OF ADVANCED ENERGY PROJECT CREDIT PROGRAM. (a) In General.--Section 48C(e)(3)(C) is amended by striking ``shall be increased'' and inserting ``shall not be increased''. (b) Effective Date.--The amendment made by this section shall take effect on the date of enactment of this Act. Subchapter B--Enhancement of America-first Energy Policy SEC. 70521. EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT. (a) Prohibition on Foreign Feedstocks.-- (1) In general.--Section 45Z(f)(1)(A) is amended-- (A) in clause (i)(II)(bb), by striking ``and'' at the end, (B) in clause (ii), by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following new clause: ``(iii) such fuel is exclusively derived from a feedstock which was produced or grown in the United States, Mexico, or Canada.''. (2) Effective date.--The amendments made by this subsection shall apply to transportation fuel produced after December 31, 2025. (b) Prohibition on Negative Emission Rates.-- (1) In general.--Section 45Z(b)(1) is amended-- (A) by striking subparagraph (C) and inserting the following: ``(C) Rounding of emissions rate.--The Secretary may round the emissions rates under subparagraph (B) to the nearest multiple of 5 kilograms of CO2e per mmBTU.'', and (B) by adding at the end the following new subparagraph: ``(E) Prohibition on negative emission rates.--For purposes of this section, the emissions rate for a transportation fuel may not be less than zero.''. (2) Effective date.--The amendments made by this subsection shall apply to emissions rates published for transportation fuel produced after December 31, 2025. (c) Determination of Emissions Rate.-- (1) In general.--Section 45Z(b)(1)(B) is amended by adding at the end the following new clauses: ``(iv) Exclusion of indirect land use changes.-- Notwithstanding clauses (i), (ii), and (iii), the emissions rate shall be adjusted as necessary to exclude any emissions attributed to indirect land use change. Any such adjustment shall be based on regulations or methodologies determined by the Secretary. ``(v) Animal manures.--With respect to any transportation fuel which is derived from animal manure, the Secretary-- ``(I) shall provide a distinct emissions rate with respect to such fuel based on the specific animal manure feedstock, which may include dairy manure, swine manure, poultry manure, or any other sources as are determined appropriate by the Secretary, and ``(II) notwithstanding subparagraph (E), may provide an emissions rate that is less than zero.''. (2) Conforming amendment.--Section 45Z(b)(1)(B)(i) is amended by striking ``clauses (ii) and (iii)'' and inserting ``clauses (ii), (iii), (iv), and (v)''. (3) Effective date.--The amendments made by this subsection shall apply to emissions rates published for transportation fuel produced after December 31, 2025. (d) Extension of Clean Fuel Production Credit.--Section 45Z(g) is amended by striking ``December 31, 2027'' and inserting ``December 31, 2029''. (e) Preventing Double Credit.--Section 45Z(d)(5) is amended-- (1) in subparagraph (A)-- (A) in clause (ii), by striking ``and'' at the end, (B) in clause (iii), by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following new clause: ``(iv) is not produced from a fuel for which a credit under this section is allowable.'', and (2) by adding at the end the following new subparagraph: ``(C) Regulations and guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of subparagraph (A)(iv).''. (f) Sales to Unrelated Persons.--Section 45Z(f)(3) is amended by adding at the end the [[Page S3746]] following: ``The Secretary may prescribe additional related person rules similar to the rule described in the preceding sentence for entities which are not described in such sentence, including rules for related persons with respect to which the taxpayer has reason to believe will sell fuel to an unrelated person in a manner described in subsection (a)(4).''. (g) Treatment of Sustainable Aviation Fuel.-- (1) Coordination of credits.-- (A) In general.--Section 45Z(a)(3) is amended-- (i) in the heading, by striking ``Special'' and inserting ``Adjusted'', and (ii) by adding at the end the following new subparagraph: ``(C) Coordination of credits.--In the case of a transportation fuel which is sustainable aviation fuel which is sold before October 1, 2025, the amount of the credit determined under paragraph (1) with respect to any gallon of such fuel shall be reduced by an amount equal to the amount of the sustainable aviation fuel credit allowable under section 6426(k)(1).''. (B) Effective date.--The amendments made by this paragraph shall apply to fuel sold after December 31, 2024. (2) Elimination of special rate.-- (A) In general.--Section 45Z(a)(3), as amended by paragraph (1), is amended by-- (i) striking subparagraph (A), and (ii) by redesignating subparagraph (C) as subparagraph (A). (B) Conforming amendment.--Section 45Z(c)(1) is amended by striking ``, the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii)'' and inserting ``and the $1.00 amount in subsection (a)(2)(B)''. (C) Effective date.--The amendments made by this paragraph shall apply to fuel produced after December 31, 2025. (h) Sustainable Aviation Fuel Credit.--Section 6426(k) is amended by adding at the end the following new paragraph: ``(4) Termination.--This subsection shall not apply to any sale or use for any period after September 30, 2025.''. (i) Registration of Producers of Fuel Eligible for Clean Fuel Production Credit.-- (1) In general.--Section 13704(b)(5) of Public Law 117-169 is amended by striking ``after `section 6426(k)(3)),' '' and inserting ``after `section 40B),' ''. (2) Effective date.--The amendment made by this subsection shall apply to transportation fuel produced after December 31, 2024. (j) Extension and Modification of Small Agri-biodiesel Producer Credit.-- (1) In general.--Section 40A is amended-- (A) in subsection (b)(4)-- (i) in subparagraph (A), by striking ``10 cents'' and inserting ``20 cents'', (ii) in subparagraph (B), by inserting ``in a manner which complies with the requirements under section 45Z(f)(1)(A)(iii)'' after ``produced by an eligible small agri-biodiesel producer'', and (iii) by adding at the end the following new subparagraph: ``(D) Coordination with clean fuel production credit.--The credit determined under this paragraph with respect to any gallon of fuel shall be in addition to any credit determined under section 45Z with respect to such gallon of fuel.'', and (B) in subsection (g), by inserting ``(or, in the case of the small agri-biodiesel producer credit, any sale or use after December 31, 2026)'' after ``December 31, 2024''. (2) Transfer of credit.--Section 6418(f)(1)(A) is amended by adding at the end the following new clause: ``(xii) So much of the biodiesel fuels credit determined under section 40A which consists of the small agri-biodiesel producer credit determined under subsection (b)(4) of such section.''. (3) Effective date.--The amendments made by this subsection shall apply to fuel sold or used after June 30, 2025. (k) Restrictions Relating to Prohibited Foreign Entities.-- (1) In general.--Section 45Z(f) is amended by adding at the end the following new paragraph: ``(8) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). ``(B) Other prohibited foreign entities.--No credit shall be determined under subsection (a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign- influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof).''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after the date of enactment of this Act. SEC. 70522. RESTRICTIONS ON CARBON OXIDE SEQUESTRATION CREDIT. (a) Restrictions Relating to Prohibited Foreign Entities.-- Section 45Q(f) is amended by adding at the end the following new paragraph: ``(10) Restrictions relating to prohibited foreign entities.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is-- ``(A) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(B) a foreign-influenced entity (as defined in section 7701(a)(51)(D), determined without regard to clause (i)(II) thereof).''. (b) Parity for Different Uses and Utilizations of Qualified Carbon Oxide.--Section 45Q is amended-- (1) in subsection (a)-- (A) in paragraph (2)(B)(ii), by adding ``and'' at the end, (B) in paragraph (3), by striking subparagraph (B) and inserting the following: ``(B)(i) disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in clause (ii) or (iii), ``(ii) used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project and disposed of by the taxpayer in secure geological storage, or ``(iii) utilized by the taxpayer in a manner described in subsection (f)(5).'', and (C) by striking paragraph (4), (2) in subsection (b)-- (A) in paragraph (1)-- (i) by striking subparagraph (A) and inserting the following: ``(A) In general.--Except as provided in subparagraph (B) or (C), the applicable dollar amount shall be an amount equal to-- ``(i) for any taxable year beginning in a calendar year after 2024 and before 2027, $17, and ``(ii) for any taxable year beginning in a calendar year after 2026, an amount equal to the product of $17 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting `2025' for `1990'.'', and (ii) in subparagraph (B), by striking ``shall be applied'' and all that follows through the period and inserting ``shall be applied by substituting `$36' for `$17' each place it appears.'', (B) in paragraph (2)(B), by striking ``paragraphs (3)(A) and (4)(A)'' and inserting ``paragraph (3)(A)'', and (C) in paragraph (3), by striking ``the dollar amounts applicable under paragraph (3) or (4)'' and inserting ``the dollar amount applicable under paragraph (3)'', (3) in subsection (f)-- (A) in paragraph (5)(B)(i), by striking ``(4)(B)(ii)'' and inserting ``(3)(B)(iii)'', and (B) in paragraph (9), by striking ``paragraphs (3) and (4) of subsection (a)'' and inserting ``subsection (a)(3)'', and (4) in subsection (h)(3)(A)(ii), by striking ``paragraph (3)(A) or (4)(A) of subsection (a)'' and inserting ``subsection (a)(3)(A)''. (c) Conforming Amendment.--Section 6417(d)(3)(C)(i)(II)(bb) is amended by striking ``paragraph (3)(A) or (4)(A) of section 45Q(a)'' and inserting ``section 45Q(a)(3)(A)''. (d) Effective Dates.-- (1) Restrictions relating to prohibited foreign entities.-- The amendment made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Parity for different uses and utilizations of qualified carbon oxide.--The amendments made subsections (b) and (c) shall apply to facilities or equipment placed in service after the date of enactment of this Act. SEC. 70523. INTANGIBLE DRILLING AND DEVELOPMENT COSTS TAKEN INTO ACCOUNT FOR PURPOSES OF COMPUTING ADJUSTED FINANCIAL STATEMENT INCOME. (a) In General.--Section 56A(c)(13) is amended-- (1) by striking subparagraph (A) and inserting the following: ``(A) reduced by-- ``(i) depreciation deductions allowed under section 167 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the year, and ``(ii) any deduction allowed for expenses under section 263(c) (including any deduction for such expenses under section 59(e) or 291(b)(2)) with respect to property described therein to the extent of the amount allowed as deductions in computing taxable income for the year, and'', and (2) by striking subparagraph (B)(i) and inserting the following: ``(i) to disregard any amount of-- ``(I) depreciation expense that is taken into account on the taxpayer's applicable financial statement with respect to such property, and ``(II) depletion expense that is taken into account on the taxpayer's applicable financial statement with respect to the intangible drilling and development costs of such property, and''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70524. INCOME FROM HYDROGEN STORAGE, CARBON CAPTURE, ADVANCED NUCLEAR, HYDROPOWER, AND GEOTHERMAL ENERGY ADDED TO QUALIFYING INCOME OF CERTAIN PUBLICLY TRADED PARTNERSHIPS. (a) In General.--Section 7704(d)(1)(E) is amended-- (1) by striking ``income and gains derived from the exploration'' and inserting the following: ``income and gains derived from-- ``(i) the exploration''. (2) by inserting ``or'' before ``industrial source'', and [[Page S3747]] (3) by striking ``or the transportation or storage'' and all that follows and inserting the following: ``(ii) the transportation or storage of-- ``(I) any fuel described in subsection (b), (c), (d), (e), or (k) of section 6426, or any alcohol fuel defined in section 6426(b)(4)(A) or any biodiesel fuel as defined in section 40A(d)(1) or sustainable aviation fuel as defined in section 40B(d)(1), or ``(II) liquified hydrogen or compressed hydrogen, ``(iii) in the case of a qualified facility (as defined in section 45Q(d), without regard to any date by which construction of the facility or equipment is required to begin) not less than 50 percent of the total carbon oxide production of which is qualified carbon oxide (as defined in section 45Q(c))-- ``(I) the generation, availability for such generation, or storage of electric power at such facility, or ``(II) the capture of carbon dioxide by such facility, ``(iv) the production of electricity from any advanced nuclear facility (as defined in section 45J(d)(2)), ``(v) the production of electricity or thermal energy exclusively using a qualified energy resource described in subparagraph (D) or (H) of section 45(c)(1), or ``(vi) the operation of energy property described in clause (iii) or (vii) of section 48(a)(3)(A) (determined without regard to any requirement under such section with respect to the date on which construction of property begins).''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70525. ALLOW FOR PAYMENTS TO CERTAIN INDIVIDUALS WHO DYE FUEL. (a) In General.--Subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: ``SEC. 6435. DYED FUEL. ``(a) In General.--If a person establishes to the satisfaction of the Secretary that such person meets the requirements of subsection (b) with respect to diesel fuel or kerosene, then the Secretary shall pay to such person an amount (without interest) equal to the tax described in subsection (b)(2)(A) with respect to such diesel fuel or kerosene. ``(b) Requirements.-- ``(1) In general.--A person meets the requirements of this subsection with respect to diesel fuel or kerosene if such person removes from a terminal eligible indelibly dyed diesel fuel or kerosene. ``(2) Eligible indelibly dyed diesel fuel or kerosene defined.--The term `eligible indelibly dyed diesel fuel or kerosene' means diesel fuel or kerosene-- ``(A) with respect to which a tax under section 4081 was previously paid (and not credited or refunded), and ``(B) which is exempt from taxation under section 4082(a). ``(c) Cross Reference.--For civil penalty for excessive claims under this section, see section 6675.''. (b) Conforming Amendments.-- (1) Section 6206 is amended-- (A) by striking ``or 6427'' each place it appears and inserting ``6427, or 6435'', and (B) by striking ``6420 and 6421'' and inserting ``6420, 6421, and 6435''. (2) Section 6430 is amended-- (A) by striking ``or'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``, or'', and by adding at the end the following new paragraph: ``(4) which are removed as eligible indelibly dyed diesel fuel or kerosene under section 6435.''. (3) Section 6675 is amended-- (A) in subsection (a), by striking ``or 6427 (relating to fuels not used for taxable purposes)'' and inserting ``6427 (relating to fuels not used for taxable purposes), or 6435 (relating to eligible indelibly dyed fuel)'', and (B) in subsection (b)(1), by striking ``6421, or 6427,'' and inserting ``6421, 6427, or 6435,''. (4) The table of sections for subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: ``Sec. 6435. Dyed fuel.''. (c) Effective Date.--The amendments made by this section shall apply to eligible indelibly dyed diesel fuel or kerosene removed on or after the date that is 180 days after the date of the enactment of this section. Subchapter C--Other Reforms SEC. 70531. MODIFICATIONS TO DE MINIMIS ENTRY PRIVILEGE FOR COMMERCIAL SHIPMENTS. (a) Civil Penalty.-- (1) Additional penalty imposed.--Section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) is amended by adding at the end the following new subsection: ``(c) Any person who enters, introduces, facilitates, or attempts to introduce an article into the United States using the privilege of this section, the importation of which violates any other provision of United States customs law, shall be assessed, in addition to any other penalty permitted by law, a civil penalty of up to $5,000 for the first violation and up to $10,000 for each subsequent violation.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect 30 days after the date of the enactment of this Act. (b) Repeal of Commercial Shipment Exception.-- (1) Repeal.--Section 321(a)(2) of such Act (19 U.S.C. 1321(a)(2)) is amended by striking ``of this Act, or'' and all that follows through ``subdivision (2); and'' and inserting ``of this Act; and''. (2) Conforming repeal.--Subsection (c) of such section 321, as added by subsection (a) of this section, is repealed. (3) Effective date.--The amendments made by this subsection shall take effect on July 1, 2027. CHAPTER 6--ENHANCING DEDUCTION AND INCOME TAX CREDIT GUARDRAILS, AND OTHER REFORMS SEC. 70601. MODIFICATION AND EXTENSION OF LIMITATION ON EXCESS BUSINESS LOSSES OF NONCORPORATE TAXPAYERS. (a) Rule Made Permanent.--Section 461(l)(1) is amended by striking ``and before January 1, 2029,'' each place it appears. (b) Adjustment of Amounts for Calculation of Excess Business Loss.--Section 461(l)(3)(C) is amended-- (1) in the matter preceding clause (i), by striking ``December 31, 2018'' and inserting ``December 31, 2025'', and (2) in clause (ii), by striking ``2017'' and inserting ``2024''. (c) Effective Dates.-- (1) Rule made permanent.--The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2026. (2) Adjustment of amounts for calculation of excess business loss.--The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2025. SEC. 70602. TREATMENT OF PAYMENTS FROM PARTNERSHIPS TO PARTNERS FOR PROPERTY OR SERVICES. (a) In General.--Section 707(a)(2) is amended by striking ``Under regulations prescribed'' and inserting ``Except as provided''. (b) Effective Date.--The amendment made by this section shall apply to services performed, and property transferred, after the date of the enactment of this Act. (c) Rule of Construction.--Nothing in this section, or the amendments made by this section, shall be construed to create any inference with respect to the proper treatment under section 707(a) of the Internal Revenue Code of 1986 with respect to payments from a partnership to a partner for services performed, or property transferred, on or before the date of the enactment of this Act. SEC. 70603. EXCESSIVE EMPLOYEE REMUNERATION FROM CONTROLLED GROUP MEMBERS AND ALLOCATION OF DEDUCTION. (a) Application of Aggregation Rules.--Section 162(m) is amended by adding at the end the following new paragraph: ``(7) Remuneration from controlled group members.-- ``(A) In general.--In the case of any publicly held corporation which is a member of a controlled group-- ``(i) paragraph (1) shall be applied by substituting `specified covered employee' for `covered employee', and ``(ii) if any person which is a member of such controlled group (other than such publicly held corporation) provides applicable employee remuneration to an individual who is a specified covered employee of such controlled group and the aggregate amount described in subparagraph (B)(ii) with respect to such specified covered employee exceeds $1,000,000-- ``(I) paragraph (1) shall apply to such person with respect to such remuneration, and ``(II) paragraph (1) shall apply to such publicly held corporation and to each such related person by substituting `the allocable limitation amount' for `$1,000,000'. ``(B) Allocable limitation amount.--For purposes of this paragraph, the term `allocable limitation amount' means, with respect to any member of the controlled group referred to in subparagraph (A) with respect to any specified covered employee of such controlled group, the amount which bears the same ratio to $1,000,000 as-- ``(i) the amount of applicable employee remuneration provided by such member with respect to such specified covered employee, bears to ``(ii) the aggregate amount of applicable employee remuneration provided by all such members with respect to such specified covered employee. ``(C) Specified covered employee.--For purposes of this paragraph, the term `specified covered employee' means, with respect to any controlled group-- ``(i) any employee described in subparagraph (A), (B), or (D) of paragraph (3), with respect to the publicly held corporation which is a member of such controlled group, and ``(ii) any employee who would be described in subparagraph (C) of paragraph (3) if such subparagraph were applied by taking into account the employees of all members of the controlled group. ``(D) Controlled group.--For purposes of this paragraph, the term `controlled group' means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. [[Page S3748]] SEC. 70604. THIRD PARTY LITIGATION FUNDING REFORM. (a) In General.--Subtitle D, as amended by the preceding provisions of this Act, is amended by adding at the end the following new chapter: ``CHAPTER 50C--LITIGATION FINANCING ``Sec. 5000F-1. Tax imposed. ``Sec. 5000F-2. Definitions. ``Sec. 5000F-3. Special rules. ``SEC. 5000F-1. TAX IMPOSED. ``(a) In General.--A tax is hereby imposed for each taxable year in an amount equal to 31.8 percent of any qualified litigation proceeds received by a covered party. ``(b) Application of Tax for Pass-through Entities.--In the case of a covered party that is a partnership, S corporation, or other pass-through entity, the tax imposed under subsection (a) shall be applied at the entity level. ``SEC. 5000F-2. DEFINITIONS. ``In this chapter-- ``(1) Civil action.-- ``(A) In general.--The term `civil action' means any civil action, administrative proceeding, claim, or cause of action. ``(B) Multiple actions.--The term `civil action' may, unless otherwise indicated, include more than 1 civil action. ``(2) Covered party.-- ``(A) In general.--The term `covered party' means, with respect to any civil action, any third party (including an individual, corporation, partnership, or sovereign wealth fund) to such action which-- ``(i) receives funds pursuant to a litigation financing agreement, and ``(ii) is not an attorney representing a party to such civil action. ``(B) Inclusion of domestic and foreign entities.-- Subparagraph (A) shall apply to any third party without regard to whether such party is created or organized in the United States or under the law of the United States or of any State. ``(3) Litigation financing agreement.-- ``(A) In general.--The term `litigation financing agreement' means, with respect to any civil action, a written agreement-- ``(i) whereby a third party agrees to provide funds to one of the named parties or any law firm affiliated with such civil action, and ``(ii) which creates a direct or collateralized interest in the proceeds of such action (by settlement, verdict, judgment or otherwise) which-- ``(I) is based, in whole or in part, on a funding-based obligation to-- ``(aa) such civil action, ``(bb) the appearing counsel, ``(cc) any contractual co-counsel, or ``(dd) the law firm of such counsel or co-counsel, and ``(II) is executed with-- ``(aa) any attorney representing a party to such civil action, ``(bb) any co-counsel in such civil action with a contingent fee interest in the representation of such party, ``(cc) any third party that has a collateral-based interest in the contingency fees of the counsel or co-counsel firm which is related, in whole or part, to the fees derived from representing such party, or ``(dd) any named party in such civil action. ``(B) Substantially similar agreements.--The term `litigation financing agreement' shall include any contract (including any option, forward contract, futures contract, short position, swap, or similar contract) or other agreement which, as determined by the Secretary, is substantially similar to an agreement described in subparagraph (A). ``(C) Exceptions.--The term `litigation financing agreement' shall not include any agreement-- ``(i) under which the total amount of funds described in subparagraph (A)(i) with respect to an individual civil action is less than $10,000, or ``(ii) in which the third party described in subparagraph (A)-- ``(I) has a right to receive proceeds which are derived from, or pursuant to, such agreement that are limited to-- ``(aa) repayment of the principal of a loan, ``(bb) repayment of the principal of a loan plus any interest on such loan, provided that the rate of interest does not exceed the greater of-- ``(AA) 7 percent, or ``(BB) a rate equal to twice the average annual yield on 30-year United States Treasury securities (as determined for the year preceding the date on which such agreement was executed), or ``(cc) reimbursement of attorney's fees, or ``(II) bears a relationship described in section 267(b) to the named party receiving the payment described in subparagraph (A)(i). ``(4) Qualified litigation proceeds.-- ``(A) In general.--The term `qualified litigation proceeds' means, with respect to any taxable year, an amount equal to the realized gains, net income, or other profit received by a covered party during such taxable year which is derived from, or pursuant to, any litigation financing agreement. ``(B) Anti-netting.--Any gains, income, or profit described in subparagraph (A) shall not be reduced or offset by any ordinary or capital loss in the taxable year. ``(C) Prohibition on exclusion of certain amounts.--In determining the amount of realized gain under subparagraph (A), amounts described in section 104(a)(2) and 892(a)(1) shall not be excluded. ``SEC. 5000F-3. SPECIAL RULES. ``(a) Withholding of Tax on Litigation Proceeds.--Any applicable person having the control, receipt, or custody of any proceeds from a civil action (by settlement, judgment, or otherwise) with respect to which such person had entered into a litigation financing agreement shall deduct and withhold from such proceeds a tax equal to 15.9 percent of the qualified litigation proceeds which are required to be paid to a third party pursuant to such agreement. ``(b) Applicable Person.--For purposes of this section, the term `applicable person' means any person which-- ``(1) is a named party in a civil action or a law firm affiliated with such civil action, and ``(2) has entered into a litigation financing agreement with respect to such civil action. ``(c) Application of Withholding Provisions.-- ``(1) Liability for withheld tax.--Every person required to deduct and withhold any tax under this chapter is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payments made in accordance with the provisions of this chapter. ``(2) Withheld tax as credit to recipient of qualified litigation proceeds.--Qualified litigation proceeds on which any tax is required to be withheld at the source under this chapter shall be included in the return of the recipient of such proceeds, but any amount of tax so withheld shall be credited against the amount of tax as computed in such return. ``(3) Tax paid by recipient of qualified litigation proceeds.--If-- ``(A) any person, in violation of the provisions of this chapter, fails to deduct and withhold any tax under this chapter, and ``(B) thereafter the tax against which such tax may be credited is paid, the tax so required to be deducted and withheld shall not be collected from such person, but this paragraph shall in no case relieve such person from liability for interest or any penalties or additions to the tax otherwise applicable in respect of such failure to deduct and withhold. ``(4) Refunds and credits with respect to withheld tax.-- Where there has been an overpayment of tax under this chapter, any refund or credit made under chapter 65 shall be made to the withholding agent unless the amount of such tax was actually withheld by the withholding agent.''. (b) Exclusion From Definition of Capital Asset.--Section 1221(a) is amended-- (1) in paragraph (7), by striking ``or'' at the end, (2) in paragraph (8), by striking the period at the end and inserting ``; or'', and (3) by adding at the end the following new paragraph: ``(9) any financial arrangement created by, or any proceeds derived from, a litigation financing agreement (as defined under section 5000F-2).''. (c) Removal From Gross Income.--Part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 139L the following new section: ``SEC. 139M. QUALIFIED LITIGATION PROCEEDS. ``Gross income shall not include any qualified litigation proceeds (as defined in section 5000F-2).''. (d) Clerical Amendments.-- (1) Section 7701(a)(16) is amended by inserting ``5000F- 3(c)(1),'' before ``1441''. (2) The table of chapters for subtitle D, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to chapter 50B the following new item: ``chapter 50c--litigation financing''. (3) The table of sections for part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 139L the following new item: ``Sec. 139M. Qualified litigation proceeds.''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70605. EXCISE TAX ON CERTAIN REMITTANCE TRANSFERS. (a) In General.--Chapter 36 is amended by inserting after subchapter B the following new subchapter: ``Subchapter C--Remittance Transfers ``Sec. 4475. Imposition of tax. ``SEC. 4475. IMPOSITION OF TAX. ``(a) In General.--There is hereby imposed on any remittance transfer a tax equal to 1 percent of the amount of such transfer. ``(b) Payment of Tax.-- ``(1) In general.--The tax imposed by this section with respect to any remittance transfer shall be paid by the sender with respect to such transfer. ``(2) Collection of tax.--The remittance transfer provider with respect to any remittance transfer shall collect the amount of the tax imposed under subsection (a) with respect to such transfer from the sender and remit such tax quarterly to the Secretary at such time and in such manner as provided by the Secretary, ``(3) Secondary liability.--Where any tax imposed by subsection (a) is not paid at the time the transfer is made, then to the extent that such tax is not collected, such tax shall be paid by the remittance transfer provider. ``(c) Tax Limited to Cash and Similar Instruments.--The tax imposed under subsection (a) shall apply only to any remittance transfer for which the sender provides [[Page S3749]] cash, a money order, a cashier's check, or any other similar physical instrument (as determined by the Secretary) to the remittance transfer provider. ``(d) Nonapplication to Certain Noncash Remittance Transfers.--Subsection (a) shall not apply to any remittance transfer for which the funds being transferred are-- ``(1) withdrawn from an account held in or by a financial institution-- ``(A) which is described in subparagraphs (A) through (H) of section 5312(a)(2) of title 31, United States Code, and ``(B) that is subject to the requirements under subchapter II of chapter 53 of such title, or ``(2) funded with a debit card or a credit card which is issued in the United States. ``(e) Definitions.--For purposes of this section-- ``(1) In general.--The terms `remittance transfer', `remittance transfer provider', and `sender' shall each have the respective meanings given such terms by section 919(g) of the Electronic Fund Transfer Act (15 U.S.C. 1693o-1(g)). ``(2) Credit card.--The term `credit card' has the same meaning given such term under section 920(c)(3) of the Electronic Fund Transfer Act (15 U.S.C. 1693o-2(c)(3)). ``(3) Debit card.--The term `debit card' has the same meaning given such term under section 920(c)(2) of the Electronic Fund Transfer Act (15 U.S.C. 1693o-2(c)(2)), without regard to subparagraph (B) of such section. ``(f) Application of Anti-conduit Rules.--For purposes of section 7701(l), with respect to any multiple-party arrangements involving the sender, a remittance transfer shall be treated as a financing transaction.''. (b) Conforming Amendment.--The table of subchapters for chapter 36 is amended by inserting after the item relating to subchapter B the following new item: ``subchapter c--remittance transfers''. (c) Effective Date.--The amendments made by this section shall apply to transfers made after December 31, 2025. SEC. 70606. ENFORCEMENT PROVISIONS WITH RESPECT TO COVID- RELATED EMPLOYEE RETENTION CREDITS. (a) Assessable Penalty for Failure to Comply With Due Diligence Requirements.-- (1) In general.--Any COVID-ERTC promoter which provides aid, assistance, or advice with respect to any COVID-ERTC document and which fails to comply with due diligence requirements imposed by the Secretary with respect to determining eligibility for, or the amount of, any credit or advance payment of a credit under section 3134 of the Internal Revenue Code of 1986, shall pay a penalty of $1,000 for each such failure. (2) Due diligence requirements.--The due diligence requirements referred to in paragraph (1) shall be similar to the due diligence requirements imposed under section 6695(g) of the Internal Revenue Code of 1986. (3) Restriction to documents used in connection with returns or claims for refund.--Paragraph (1) shall not apply with respect to any COVID-ERTC document unless such document constitutes, or relates to, a return or claim for refund. (4) Treatment as assessable penalty, etc.--For purposes of the Internal Revenue Code of 1986, the penalty imposed under paragraph (1) shall be treated as a penalty which is imposed under section 6695(g) of such Code and assessed under section 6201 of such Code. (5) Secretary.--For purposes of this subsection, the term ``Secretary'' means the Secretary of the Treasury or the Secretary's delegate. (b) COVID-ERTC Promoter.--For purposes of this section-- (1) In general.--The term ``COVID-ERTC promoter'' means, with respect to any COVID-ERTC document, any person which provides aid, assistance, or advice with respect to such document if-- (A) such person charges or receives a fee for such aid, assistance, or advice which is based on the amount of the refund or credit with respect to such document and, with respect to such person's taxable year in which such person provided such assistance or the preceding taxable year, the aggregate of the gross receipts of such person for aid, assistance, and advice with respect to all COVID-ERTC documents exceeds 20 percent of the gross receipts of such person for such taxable year, or (B) with respect to such person's taxable year in which such person provided such assistance or the preceding taxable year-- (i) the aggregate of the gross receipts of such person for aid, assistance, and advice with respect to all COVID-ERTC documents exceeds 50 percent of the gross receipts of such person for such taxable year, or (ii) both-- (I) such aggregate gross receipts exceed 20 percent of the gross receipts of such person for such taxable year, and (II) the aggregate of the gross receipts of such person for aid, assistance, and advice with respect to all COVID-ERTC documents (determined after application of paragraph (3)) exceeds $500,000. (2) Exception for certified professional employer organizations.--The term ``COVID-ERTC promoter'' shall not include a certified professional employer organization (as defined in section 7705 of the Internal Revenue Code of 1986). (3) Aggregation rule.--For purposes of paragraph (1), all persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986, or subsection (m) or (o) of section 414 of such Code, shall be treated as 1 person. (4) Short taxable years.--In the case of any taxable year of less than 12 months, a person shall be treated as a COVID- ERTC promoter if such person is described in paragraph (1) either with respect to such taxable year or by treating any reference to such taxable year as a reference to the calendar year in which such taxable year begins. (c) COVID-ERTC Document.--For purposes of this section, the term ``COVID-ERTC document'' means any return, affidavit, claim, or other document related to any credit or advance payment of a credit under section 3134 of the Internal Revenue Code of 1986, including any document related to eligibility for, or the calculation or determination of any amount directly related to, any such credit or advance payment. (d) Limitation on Credits and Refunds.--Notwithstanding section 6511 of the Internal Revenue Code of 1986, no credit under section 3134 of the Internal Revenue Code of 1986 shall be allowed, and no refund with respect to any such credit shall be made, after the date of the enactment of this Act, unless a claim for such credit or refund was filed by the taxpayer on or before January 31, 2024. (e) Extension of Limitation on Assessment.--Section 3134(l) is amended to read as follows: ``(l) Extension of Limitation on Assessment.-- ``(1) In general.--Notwithstanding section 6501, the limitation on the time period for the assessment of any amount attributable to a credit claimed under this section shall not expire before the date that is 6 years after the latest of-- ``(A) the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed, ``(B) the date on which such return is treated as filed under section 6501(b)(2), or ``(C) the date on which the claim for credit or refund with respect to such credit is made. ``(2) Deduction for wages taken into account in determining improperly claimed credit.-- ``(A) In general.--Notwithstanding section 6511, in the case of an assessment attributable to a credit claimed under this section, the limitation on the time period for credit or refund of any amount attributable to a deduction for improperly claimed ERTC wages shall not expire before the time period for such assessment expires under paragraph (1). ``(B) Improperly claimed ertc wages.--For purposes of this paragraph, the term `improperly claimed ERTC wages' means, with respect to an assessment attributable to a credit claimed under this section, the wages with respect to which a deduction would not have been allowed if the portion of the credit to which such assessment relates had been properly claimed.''. (f) Amendment to Penalty for Erroneous Claim for Refund or Credit.--Section 6676(a) is amended by striking ``income tax'' and inserting ``income or employment tax''. (g) Effective Dates.-- (1) In general.--The provisions of this section shall apply to aid, assistance, and advice provided after the date of the enactment of this Act. (2) Limitation on credits and refunds.--Subsection (d) shall apply to credits and refunds allowed or made after the date of the enactment of this Act. (3) Extension of limitation on assessment.--The amendment made by subsection (e) shall apply to assessments made after the date of the enactment of this Act. (4) Amendment to penalty for erroneous claim for refund or credit.--The amendment made by subsection (f) shall apply to claims for credit or refund after the date of the enactment of this Act. (h) Regulations.--The Secretary (as defined in subsection (a)(5)) shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section (and the amendments made by this section). SEC. 70607. SOCIAL SECURITY NUMBER REQUIREMENT FOR AMERICAN OPPORTUNITY AND LIFETIME LEARNING CREDITS. (a) Social Security Number of Taxpayer Required.--Section 25A(g)(1) is amended to read as follows: ``(1) Identification requirement.-- ``(A) Social security number requirement.--No credit shall be allowed under subsection (a) to an individual unless the individual includes on the return of tax for the taxable year-- ``(i) such individual's social security number, and ``(ii) in the case of a credit with respect to the qualified tuition and related expenses of an individual other than the taxpayer or the taxpayer's spouse, the name and social security number of such individual. ``(B) Institution.--No American Opportunity Tax Credit shall be allowed under this section unless the taxpayer includes the employer identification number of any institution to which the taxpayer paid qualified tuition and related expenses taken into account under this section on the return of tax for the taxable year. ``(C) Social security number defined.--For purposes of this paragraph, the term `social security number' shall have the meaning given such term in section 24(h)(7).''. (b) Omission Treated as Mathematical or Clerical Error.-- Section 6213(g)(2)(J) is amended by striking ``TIN'' and inserting [[Page S3750]] ``social security number or employer identification number''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70608. TASK FORCE ON THE REPLACEMENT OF DIRECT FILE. Out of any money in the Treasury not otherwise appropriated, there is hereby appropriated for the fiscal year ending September 30, 2026, $15,000,000, to remain available until September 30, 2026, for necessary expenses of the Department of the Treasury to deliver to Congress, within 90 days following the date of the enactment of this Act, a report on-- (1) the cost of enhancing and establishing public-private partnerships which provide for free tax filing for up to 70 percent of all taxpayers calculated by adjusted gross income, and to replace any direct e-file programs run by the Internal Revenue Service; (2) taxpayer opinions and preferences regarding a taxpayer- funded, government-run service or a free service provided by the private sector; (3) assessment of the feasibility of a new approach, how to make the options consistent and simple for taxpayers across all participating providers, and how to provide features to address taxpayer needs; and (4) the cost (including options for differential coverage based on taxpayer adjusted gross income and return complexity) of developing and running a free direct e-file tax return system, including costs to build and administer each release. Subtitle B--Health CHAPTER 1--MEDICAID Subchapter A--Reducing Fraud and Improving Enrollment Processes SEC. 71101. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO ELIGIBILITY AND ENROLLMENT IN MEDICARE SAVINGS PROGRAMS. The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on September 21, 2023, and titled ``Streamlining Medicaid; Medicare Savings Program Eligibility Determination and Enrollment'' (88 Fed. Reg. 65230) and shall not implement, administer, or enforce the amendments made to the following sections of title 42, Code of Federal Regulations: (1) Section 406.21(c). (2) Section 435.4. (3) Section 435.601. (4) Section 435.909. (5) Section 435.911. (6) Section 435.952. SEC. 71102. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO ELIGIBILITY AND ENROLLMENT FOR MEDICAID, CHIP, AND THE BASIC HEALTH PROGRAM. The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on April 2, 2024, and titled ``Medicaid Program; Streamlining the Medicaid, Children's Health Insurance Program, and Basic Health Program Application, Eligibility Determination, Enrollment, and Renewal Processes'' (89 Fed. Reg. 22780) and shall not implement, administer, or enforce the amendments made to the following sections of title 42, Code of Federal Regulations: (1) Part 431.-- (A) Section 431.10(c)(1)(i)(A)(2). (B) Section 431.10(c)(1)(i)(A)(3). (C) Section 431.213(d). (2) Part 435.-- (A) Section 435.222. (B) Section 435.223. (C) Section 435.407. (D) Section 435.601. (E) Section 435.608. (F) Section 435.831(g). (G) Section 435.907. (H) Section 435.911(c). (I) Section 435.912. (J) Section 435.916. (K) Section 435.919. (L) Section 435.940. (M) Section 435.952. (N) Section 435.1200. (3) Part 436.-- (A) Section 436.608. (B) Section 436.831(g). (4) Part 447.--Section 447.56(a)(1)(v). (5) Part 457.-- (A) Section 457.65(d). (B) Section 457.340(d). (C) Section 457.340(f). (D) Section 457.344. (E) Section 457.348. (F) Section 457.350. (G) Section 457.480. (H) Section 457.570. (I) Section 457.805(b). (J) Section 457.810(a). (K) Section 457.960. (L) Section 457.1140(d)(4). (M) Section 457.1170. (N) Section 457.1180. SEC. 71103. REDUCING DUPLICATE ENROLLMENT UNDER THE MEDICAID AND CHIP PROGRAMS. (a) Medicaid.-- (1) In general.--Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended-- (A) in subsection (a)-- (i) in paragraph (86), by striking ``and'' at the end; (ii) in paragraph (87), by striking the period and inserting ``; and''; and (iii) by inserting after paragraph (87) the following new paragraph: ``(88) provide-- ``(A) beginning not later than January 1, 2027, in the case of 1 of the 50 States and the District of Columbia, for a process to regularly obtain address information for individuals enrolled under such plan (or a waiver of such plan) in accordance with subsection (vv); and ``(B) beginning not later than October 1, 2029-- ``(i) for the State to submit to the system established by the Secretary under subsection (uu), with respect to an individual enrolled or seeking to enroll under such plan, not less frequently than once each month and during each determination or redetermination of the eligibility of such individual for medical assistance under such plan (or waiver of such plan)-- ``(I) the social security number of such individual, if such individual has a social security number and is required to provide such number to enroll under such plan (or waiver); and ``(II) such other information with respect to such individual as determined necessary by the Secretary for purposes of preventing individuals from simultaneously being enrolled under State plans (or waivers of such plans) of multiple States; ``(ii) for the use of such system to prevent such simultaneous enrollment; and ``(iii) in the case that such system indicates that an individual enrolled or seeking to enroll under such plan (or waiver of such plan) is enrolled under a State plan (or waiver of such a plan) of another State, for the taking of appropriate action (as determined by the Secretary) to identify whether such an individual resides in the State and disenroll an individual from the State plan of such State if such individual does not reside in such State (unless such individual meets such an exception as the Secretary may specify).''; and (B) by adding at the end the following new subsections: ``(uu) Prevention of Enrollment Under Multiple State Plans.-- ``(1) In general.--Not later than October 1, 2029, the Secretary shall establish a system to be utilized by the Secretary and States to prevent an individual from being simultaneously enrolled under the State plans (or waivers of such plans) of multiple States. Such system shall-- ``(A) provide for the receipt of information submitted by a State under subsection (a)(88)(B)(i); and ``(B) not less than once each month, transmit information to a State (or allow the Secretary to transmit information to a State) regarding whether an individual enrolled or seeking to enroll under the State plan of such State (or waiver of such plan) is enrolled under the State plan (or waiver of such plan) of another State. ``(2) Standards.--The Secretary shall establish such standards as determined necessary by the Secretary to limit and protect information submitted under such system and ensure the privacy of such information, consistent with subsection (a)(7). ``(3) Implementation funding.--There are appropriated to the Secretary, out of amounts in the Treasury not otherwise appropriated, in addition to amounts otherwise available-- ``(A) for fiscal year 2026, $10,000,000 for purposes of establishing the system and standards required under this subsection, to remain available until expended; and ``(B) for fiscal year 2029, $20,000,000 for purposes of maintaining such system, to remain available until expended. ``(vv) Process to Obtain Enrollee Address Information.-- ``(1) In general.--For purposes of subsection (a)(88)(A), a process to regularly obtain address information for individuals enrolled under a State plan (or a waiver of such plan) shall obtain address information from reliable data sources described in paragraph (2) and take such actions as the Secretary shall specify with respect to any changes to such address based on such information. ``(2) Reliable data sources described.--For purposes of paragraph (1), the reliable data sources described in this paragraph are the following: ``(A) Mail returned to the State by the United States Postal Service with a forwarding address. ``(B) The National Change of Address Database maintained by the United States Postal Service. ``(C) A managed care entity (as defined in section 1932(a)(1)(B)) or prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D)) that has a contract under the State plan if the address information is provided to such entity or plan directly from, or verified by such entity or plan directly with, such individual. ``(D) Other data sources as identified by the State and approved by the Secretary.''. (2) Conforming amendments.-- (A) PARIS.--Section 1903(r)(3) of the Social Security Act (42 U.S.C. 1396b(r)(3)) is amended-- (i) by striking ``In order'' and inserting ``(A) In order''; (ii) by striking ``through the Public'' and inserting ``through-- ``(i) the Public''; [[Page S3751]] (iii) by striking the period at the end and inserting ``; and ``(ii) beginning October 1, 2029, the system established by the Secretary under section 1902(uu).''; and (iv) by adding at the end the following new subparagraph: ``(B) Beginning October 1, 2029, the Secretary may determine that a State is not required to have in operation an eligibility determination system which provides for data matching (for purposes of address verification under section 1902(vv)) through the system described in subparagraph (A)(i) to meet the requirements of this paragraph.''. (B) Managed care.--Section 1932 of the Social Security Act (42 U.S.C. 1396u-2) is amended by adding at the end the following new subsection: ``(j) Transmission of Address Information.--Beginning January 1, 2027, each contract under a State plan with a managed care entity (as defined in section 1932(a)(1)(B)) or with a prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D)), shall provide that such entity or plan shall promptly transmit to the State any address information for an individual enrolled with such entity or plan that is provided to such entity or plan directly from, or verified by such entity or plan directly with, such individual.''. (b) CHIP.-- (1) In general.--Section 2107(e)(1) of the Social Security Act (42 U.S.C. 1397gg(e)(1)) is amended-- (A) by redesignating subparagraphs (H) through (U) as subparagraphs (I) through (V), respectively; and (B) by inserting after subparagraph (G) the following new subparagraph: ``(H) Section 1902(a)(88) (relating to address information for enrollees and prevention of simultaneous enrollments).''. (2) Managed care.--Section 2103(f)(3) of the Social Security Act (42 U.S.C. 1397cc(f)(3)) is amended by striking ``and (e)'' and inserting ``(e), and (j)''. SEC. 71104. ENSURING DECEASED INDIVIDUALS DO NOT REMAIN ENROLLED. Section 1902 of the Social Security Act (42 U.S.C. 1396a), as amended by section 71103, is further amended-- (1) in subsection (a)-- (A) in paragraph (87), by striking ``; and'' and inserting a semicolon; (B) in paragraph (88), by striking the period at the end and inserting ``; and''; and (C) by inserting after paragraph (88) the following new paragraph: ``(89) provide that the State shall comply with the eligibility verification requirements under subsection (ww), except that this paragraph shall apply only in the case of the 50 States and the District of Columbia.''; and (2) by adding at the end the following new subsection: ``(ww) Verification of Certain Eligibility Criteria.-- ``(1) In general.--For purposes of subsection (a)(89), the eligibility verification requirements, beginning January 1, 2028, are as follows: ``(A) Quarterly screening to verify enrollee status.--The State shall, not less frequently than quarterly, review the Death Master File (as such term is defined in section 203(d) of the Bipartisan Budget Act of 2013) or a successor system that provides such information needed to determine whether any individuals enrolled for medical assistance under the State plan (or waiver of such plan) are deceased. ``(B) Disenrollment under state plan.--If the State determines, based on information obtained from the Death Master File, that an individual enrolled for medical assistance under the State plan (or waiver of such plan) is deceased, the State shall-- ``(i) treat such information as factual information confirming the death of a beneficiary; ``(ii) disenroll such individual from the State plan (or waiver of such plan) in accordance with subsection (a)(3); and ``(iii) discontinue any payments for medical assistance under this title made on behalf of such individual (other than payments for any items or services furnished to such individual prior to the death of such individual). ``(C) Reinstatement of coverage in the event of error.--If a State determines that an individual was misidentified as deceased based on information obtained from the Death Master File and was erroneously disenrolled from medical assistance under the State plan (or waiver of such plan) based on such misidentification, the State shall immediately re-enroll such individual under the State plan (or waiver of such plan), retroactive to the date of such disenrollment. ``(2) Rule of construction.--Nothing under this subsection shall be construed to preclude the ability of a State to use other electronic data sources to timely identify potentially deceased beneficiaries, so long as the State is also in compliance with the requirements of this subsection (and all other requirements under this title relating to Medicaid eligibility determination and redetermination).''. SEC. 71105. ENSURING DECEASED PROVIDERS DO NOT REMAIN ENROLLED. Section 1902(kk)(1) of the Social Security Act (42 U.S.C. 1396a(kk)(1)) is amended-- (1) by striking ``The State'' and inserting: ``(A) In general.--The State''; and (2) by adding at the end the following new subparagraph: ``(B) Provider screening against death master file.-- Beginning January 1, 2028, as part of the enrollment (or reenrollment or revalidation of enrollment) of a provider or supplier under this title, and not less frequently than quarterly during the period that such provider or supplier is so enrolled, the State conducts a check of the Death Master File (as such term is defined in section 203(d) of the Bipartisan Budget Act of 2013) to determine whether such provider or supplier is deceased.''. SEC. 71106. PAYMENT REDUCTION RELATED TO CERTAIN ERRONEOUS EXCESS PAYMENTS UNDER MEDICAID. (a) In General.--Section 1903(u)(1) of the Social Security Act (42 U.S.C. 1396b(u)(1)) is amended-- (1) in subparagraph (A), by inserting ``for any audits conducted by the Secretary, or, at the option of the Secretary, audits conducted by the State'' after ``exceeds 0.03''; (2) in subparagraph (B)-- (A) by striking ``The Secretary'' and inserting ``(i) Subject to clause (ii), the Secretary''; and (B) by adding at the end the following new clause: ``(ii) The amount waived under clause (i) for a fiscal year may not exceed an amount equal to the erroneous excess payments for medical assistance described in subparagraph (D)(i)(II) made for such fiscal year.''. (3) in subparagraph (C), by striking ``he'' in each place it appears and inserting ``the Secretary'' in each such place; and (4) in subparagraph (D)(i)-- (A) in subclause (I), by striking ``and'' at the end; (B) in subclause (II), by striking the period at the end and inserting ``, or payments where insufficient information is available to confirm eligibility, and''; and (C) by adding at the end the following new subclause: ``(III) payments (other than payments described in subclause (I)) for items and services furnished to an individual who is not eligible for medical assistance under the State plan (or a waiver of such plan) with respect to such items and services, or payments where insufficient information is available to confirm eligibility.''. (b) Effective Date.--The amendments made by subsection (a) shall apply beginning with respect to fiscal year 2030. SEC. 71107. ELIGIBILITY REDETERMINATIONS. (a) In General.--Section 1902(e)(14) of the Social Security Act (42 U.S.C. 1396a(e)(14)) is amended by adding at the end the following new subparagraph: ``(L) Frequency of eligibility redeterminations for certain individuals.-- ``(i) In general.--Subject to clause (ii), with respect to redeterminations of eligibility for medical assistance under a State plan (or waiver of such plan) scheduled on or after the first day of the first quarter that begins after December 31, 2026, a State shall make such a redetermination once every 6 months for the following individuals: ``(I) Individuals enrolled under subsection (a)(10)(A)(i)(VIII). ``(II) Individuals described in such subsection who are otherwise enrolled under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in subsection (a)(10)(A)(i)(VIII). ``(ii) Exemption.--The requirements described in clause (i) shall not apply to any individual described in subsection (xx)(9)(A)(ii)(II). ``(iii) State defined.--For purposes of this subparagraph, the term `State' means 1 of the 50 States or the District of Columbia.''. (b) Guidance.--Not later than 180 days after the date of enactment of this section, the Secretary of Health and Human Services, acting through the Administrator of the Centers for Medicare & Medicaid Services, shall issue guidance relating to the implementation of the amendments made by this section. SEC. 71108. REVISING HOME EQUITY LIMIT FOR DETERMINING ELIGIBILITY FOR LONG-TERM CARE SERVICES UNDER THE MEDICAID PROGRAM. (a) Revising Home Equity Limit.--Section 1917(f)(1) of the Social Security Act (42 U.S.C. 1396p(f)(1)) is amended-- (1) in subparagraph (B)-- (A) by striking ``A State'' and inserting ``(i) A State''; (B) in clause (i), as inserted by subparagraph (A)-- (i) by striking `` `$500,000' '' and inserting ``the amount specified in subparagraph (A)''; and (ii) by inserting ``, in the case of an individual's home that is located on a lot that is zoned for agricultural use,'' after ``apply subparagraph (A)''; and (C) by adding at the end the following new clause: ``(ii) A State may elect, without regard to the requirements of section 1902(a)(1) (relating to statewideness) and section 1902(a)(10)(B) (relating to comparability), to apply subparagraph (A), in the case of an individual's home that is not described in clause (i), by substituting for the amount specified in such subparagraph, an amount that exceeds such amount, but does not exceed $1,000,000.''; and (2) in subparagraph (C)-- [[Page S3752]] (A) by inserting ``(other than the amount specified in subparagraph (B)(ii) (relating to certain non-agricultural homes))'' after ``specified in this paragraph''; and (B) by adding at the end the following new sentence: ``In the case that application of the preceding sentence would result in a dollar amount (other than the amount specified in subparagraph (B)(i) (relating to certain agricultural homes)) exceeding $1,000,000, such amount shall be deemed to be equal to $1,000,000.''. (b) Clarification.--Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended-- (1) in subsection (r)(2), by adding at the end the following new subparagraph: ``(C) This paragraph shall not be construed as permitting a State to determine the eligibility of an individual for medical assistance with respect to nursing facility services or other long-term care services without application of the limit under section 1917(f)(1).''; and (2) in subsection (e)(14)(D)(iv)-- (A) by striking ``Subparagraphs'' and inserting ``(I) In general.--Subparagraphs''; and (B) by adding at the end the following new subclause: ``(II) Application of home equity interest limit.--Section 1917(f) shall apply for purposes of determining the eligibility of an individual for medical assistance with respect to nursing facility services or other long-term care services.''. (c) Effective Date.--The amendments made by subsection (a) shall apply beginning on January 1, 2028. SEC. 71109. ALIEN MEDICAID ELIGIBILITY. (a) Medicaid.--Section 1903(v) of the Social Security Act (42 U.S.C. 1396b(v)) is amended-- (1) in paragraph (1), by striking ``and (4)''and inserting ``, (4), and (5)''; and (2) by adding at the end the following new paragraph: ``(5) Notwithstanding the preceding paragraphs of this subsection, beginning on October 1, 2026, except as provided in paragraphs (2) and (4), in no event shall payment be made to a State under this section for medical assistance furnished to an individual unless such individual is-- ``(A) a resident of 1 of the 50 States, the District of Columbia, or a territory of the United States; and ``(B) either-- ``(i) a citizen or national of the United States; ``(ii) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act, excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country; ``(iii) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(iv) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.''. (b) CHIP.--Section 2107(e)(1) of the Social Security Act, as amended by section 71103(b), is further amended-- (1) by redesignating subparagraphs (R) through (V) as paragraphs (S) through (W), respectively; and (2) by inserting after paragraph (Q) the following: ``(R) Section 1903(v)(5) (relating to payments for medical assistance furnished to aliens), except in relation to payments for services provided under section 2105(a)(1)(D)(ii).''. SEC. 71110. EXPANSION FMAP FOR CERTAIN STATES PROVIDING PAYMENTS FOR HEALTH CARE FURNISHED TO CERTAIN INDIVIDUALS. Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended-- (1) in subsection (y)-- (A) in paragraph (1)(E), by inserting ``(or, for calendar quarters beginning on or after October 1, 2027, in the case such State is a specified State with respect to such calendar quarter, 80 percent)'' after ``thereafter''; and (B) in paragraph (2), by adding at the end the following new subparagraph: ``(C) Specified state.--The term `specified State' means, with respect to a quarter, a State that-- ``(i) provides any form of financial assistance from a State general fund during such quarter, in whole or in part, whether or not made under a State plan (or waiver of such plan) under this title or under another program established by the State, to or on behalf of an alien who is not a qualified alien and is not a child or pregnant woman who is lawfully residing in the United States and eligible for medical assistance pursuant to section 1903(v)(4) or for child health assistance or pregnancy-related assistance pursuant to section 2107(e)(1)(Q), for the purchasing of health insurance coverage (as defined in section 2791(b)(1) of the Public Health Service Act) for an alien who is not a qualified alien and is not such a child or pregnant woman; or ``(ii) provides any form of comprehensive health benefits coverage, except such coverage required by Federal law, during such quarter, whether or not under a State plan (or waiver of such plan) under this title or under another program established by the State, and regardless of the source of funding for such coverage, to an alien who is not a qualified alien and is not such a child or pregnant woman. ``(D) Immigration terms.-- ``(i) Alien.--The term `alien' has the meaning given such term in section 101(a) of the Immigration and Nationality Act. ``(ii) Qualified alien.--The term `qualified alien' has the meaning given such term in section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, except that the references to `(in the opinion of the agency providing such benefits)' in subsection (c) of such section 431 shall be treated as references to `(in the opinion of the State in which such comprehensive health benefits coverage or such financial assistance is provided, as applicable)'.''; and (2) in subsection (z)(2)-- (A) in subparagraph (A), by striking ``for such year'' and inserting ``for such quarter''; and (B) in subparagraph (B)(i)-- (i) in the matter preceding subclause (I), by striking ``for a year'' and inserting ``for a calendar quarter in a year''; and (ii) in subclause (II), by striking ``for the year'' and inserting ``for the quarter for the State''. SEC. 71111. EXPANSION FMAP FOR EMERGENCY MEDICAID. Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended by adding at the end the following new subsection: ``(kk) FMAP for Treatment of an Emergency Medical Condition.--Notwithstanding subsection (y) and (z), beginning on October 1, 2026, the Federal medical assistance percentage for payments for care and services described in paragraph (2) of subsection 1903(v) furnished to an alien described in paragraph (1) of such subsection shall not exceed the Federal medical assistance percentage determined under subsection (b) for such State.''. Subchapter B--Preventing Wasteful Spending SEC. 71112. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO STAFFING STANDARDS FOR LONG-TERM CARE FACILITIES UNDER THE MEDICARE AND MEDICAID PROGRAMS. The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on May 10, 2024, and titled ``Medicare and Medicaid Programs; Minimum Staffing Standards for Long-Term Care Facilities and Medicaid Institutional Payment Transparency Reporting'' (89 Fed. Reg. 40876) and shall not implement, administer, or enforce the amendments made to the following sections of part 483 of title 42, Code of Federal Regulations: (1) Section 483.5. (2) Section 483.35. SEC. 71113. REDUCING STATE MEDICAID COSTS. (a) In General.--Section 1902(a)(34) of the Social Security Act (42 U.S.C. 1396a(a)(34)) is amended to read as follows: ``(34) provide that in the case of any individual who has been determined to be eligible for medical assistance under the plan and-- ``(A) is enrolled under paragraph (10)(A)(i)(VIII), such assistance will be made available to the individual for care and services included under the plan and furnished in or after the month before the month in which the individual made application (or application was made on the individual's behalf in the case of a deceased individual) for such assistance if such individual was (or upon application would have been) eligible for such assistance at the time such care and services were furnished; or ``(B) is not described in subparagraph (A), such assistance will be made available to the individual for care and services included under the plan and furnished in or after the second month before the month in which the individual made application (or application was made on the individual's behalf in the case of a deceased individual) for such assistance if such individual was (or upon application would have been) eligible for such assistance at the time such care and services were furnished;''. (b) Definition of Medical Assistance.--Section 1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) is amended by striking ``in or after the third month before the month in which the recipient makes application for assistance'' and inserting ``, with respect to an individual described in section 1902(a)(34)(A), in or after the month before the month in which the recipient makes application for assistance, and with respect to an individual described in section 1902(a)(34)(B), in or after the second month before the month in which the recipient makes application for assistance''. (c) CHIP.--Section 2102(b)(1)(B) of the Social Security Act (42 U.S.C. 1397bb(b)(1)(B)) is amended-- (1) in clause (iv), by striking ``and'' at the end; (2) in clause (v), by striking the period and inserting ``; and''; and (3) by adding at the end the following new clause: ``(vi) shall, in the case that the State elects to provide child health or pregnancy-related assistance to an individual for any [[Page S3753]] period prior to the month in which the individual made application for such assistance (or application was made on behalf of the individual), provide that such assistance is not made available to such individual for items and services included under the State child health plan (or waiver of such plan) that are furnished before the second month preceding the month in which such individual made application (or application was made on behalf of such individual) for assistance.''. (d) Effective Date.--The amendments made by this section shall apply to medical assistance, child health assistance, and pregnancy-related assistance with respect to individuals whose eligibility for such medical assistance, child health assistance, or pregnancy-related assistance is based on an application made on or after the first day of the first quarter that begins after December 31, 2026. SEC. 71114. PROHIBITING FEDERAL MEDICAID AND CHIP FUNDING FOR CERTAIN ITEMS AND SERVICES. (a) Medicaid.--Section 1903(i) of the Social Security Act (42 U.S.C. 1396b(i)) is amended-- (1) in paragraph (26), by striking ``; or'' and inserting a semicolon; (2) in paragraph (27), by striking the period at the end and inserting ``; or''; (3) by inserting after paragraph (27) the following new paragraph: ``(28) with respect to any amount expended for specified gender transition procedures (as defined in section 1905(ll)) furnished to an individual enrolled in a State plan (or waiver of such plan).''; and (4) in the flush left matter at the end, by striking ``and (18),'' and inserting ``(18), and (28)''. (b) CHIP.--Section 2107(e)(1)(O) of the Social Security Act (42 U.S.C. 1397gg(e)(1)(O)), as redesignated by section 71103(b)(1)(A), is amended by striking ``and (17)'' and inserting ``(17), and (28)''. (c) Specified Gender Transition Procedures Defined.-- Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended by adding at the end the following new subsection: ``(ll) Specified Gender Transition Procedures.-- ``(1) In general.--For purposes of section 1903(i)(28), except as provided in paragraph (2) , the term `specified gender transition procedure' means, with respect to an individual, any of the following when performed for the purpose of intentionally changing the body of such individual (including by disrupting the body's development, inhibiting its natural functions, or modifying its appearance) to no longer correspond to the individual's sex: ``(A) Performing any surgery, including-- ``(i) castration; ``(ii) sterilization; ``(iii) orchiectomy; ``(iv) scrotoplasty; ``(v) vasectomy; ``(vi) tubal ligation; ``(vii) hysterectomy; ``(viii) oophorectomy; ``(ix) ovariectomy; ``(x) metoidioplasty; ``(xi) clitoroplasty; ``(xii) reconstruction of the fixed part of the urethra with or without a metoidioplasty or a phalloplasty; ``(xiii) penectomy; ``(xiv) phalloplasty; ``(xv) vaginoplasty; ``(xvi) vaginectomy; ``(xvii) vulvoplasty; ``(xviii) reduction thyrochondroplasty; ``(xix) chondrolaryngoplasty; ``(xx) mastectomy; and ``(xxi) any plastic, cosmetic, or aesthetic surgery that feminizes or masculinizes the facial or other body features of an individual. ``(B) Any placement of chest implants to create feminine breasts or any placement of erection or testicular prostheses. ``(C) Any placement of fat or artificial implants in the gluteal region. ``(D) Administering, prescribing, or dispensing to an individual medications, including-- ``(i) gonadotropin-releasing hormone (GnRH) analogues or other puberty-blocking drugs to stop or delay normal puberty; and ``(ii) testosterone, estrogen, or other androgens to an individual at doses that are supraphysiologic than would normally be produced endogenously in a healthy individual of the same age and sex. ``(2) Exception.--Paragraph (1) shall not apply to the following when furnished to an individual by a health care provider if the individual is a minor with the consent of such individual's parent or legal guardian: ``(A) Puberty suppression or blocking prescription drugs for the purpose of normalizing puberty for an individual experiencing precocious puberty. ``(B) Medically necessary procedures or treatments to correct for-- ``(i) a medically verifiable disorder of sex development, including-- ``(I) 46,XX chromosomes with virilization; ``(II) 46,XY chromosomes with undervirilization; and ``(III) both ovarian and testicular tissue; ``(ii) sex chromosome structure, sex steroid hormone production, or sex hormone action, if determined to be abnormal by a physician through genetic or biochemical testing; ``(iii) infection, disease, injury, or disorder caused or exacerbated by a previous procedure described in paragraph (1), or a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the individual in danger of death or impairment of a major bodily function unless the procedure is performed, not including procedures performed for the alleviation of mental distress; or ``(iv) procedures to restore or reconstruct the body of the individual in order to correspond to the individual's sex after one or more previous procedures described in paragraph (1), which may include the removal of a pseudo phallus or breast augmentation. ``(3) Sex.--For purposes of paragraph (1), the term `sex' means either male or female, as biologically determined and defined in paragraphs (4) and (5), respectively. ``(4) Female.--For purposes of paragraph (3), the term `female' means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes eggs for fertilization. ``(5) Male.--For purposes of paragraph (3), the term `male' means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes sperm for fertilization.''. SEC. 71115. FEDERAL PAYMENTS TO PROHIBITED ENTITIES. (a) In General.--No Federal funds that are considered direct spending and provided to carry out a State plan under title XIX of the Social Security Act or a waiver of such a plan shall be used to make payments to a prohibited entity for items and services furnished during the 1-year period beginning on the date of the enactment of this Act, including any payments made directly to the prohibited entity or under a contract or other arrangement between a State and a covered organization. (b) Definitions.--In this section: (1) Prohibited entity.--The term ``prohibited entity'' means an entity, including its affiliates, subsidiaries, successors, and clinics-- (A) that, as of the first day of the first quarter beginning after the date of enactment of this Act-- (i) is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; (ii) is an essential community provider described in section 156.235 of title 45, Code of Federal Regulations (as in effect on the date of enactment of this Act), that is primarily engaged in family planning services, reproductive health, and related medical care; and (iii) provides for abortions, other than an abortion-- (I) if the pregnancy is the result of an act of rape or incest; or (II) in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed; and (B) for which the total amount of Federal and State expenditures under the Medicaid program under title XIX of the Social Security Act for medical assistance furnished in fiscal year 2023 made directly, or by a covered organization, to the entity or to any affiliates, subsidiaries, successors, or clinics of the entity, or made to the entity or to any affiliates, subsidiaries, successors, or clinics of the entity as part of a nationwide health care provider network, exceeded $800,000. (2) Direct spending.--The term ``direct spending'' has the meaning given that term under section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)). (3) Covered organization.--The term ``covered organization'' means a managed care entity (as defined in section 1932(a)(1)(B) of the Social Security Act (42 U.S.C. 1396u-2(a)(1)(B))) or a prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D) of such Act (42 U.S.C. 1396b(m)(9)(D))). (4) State.--The term ``State'' has the meaning given such term in section 1101 of the Social Security Act (42 U.S.C. 1301). Subchapter C--Stopping Abusive Financing Practices SEC. 71116. SUNSETTING INCREASED FMAP INCENTIVE. Section 1905(ii)(3) of the Social Security Act (42 U.S.C. 1396d(ii)(3)) is amended-- (1) by striking ``which has not'' and inserting the following: ``which-- ``(A) has not''; (2) in subparagraph (A), as so inserted, by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following new subparagraph: ``(B) begins to expend amounts for all such individuals prior to January 1, 2026.''. SEC. 71117. PROVIDER TAXES. (a) Change in Threshold for Hold Harmless Provision of Broad-based Health Care Related Taxes.--Section 1903(w)(4) of the Social Security Act (42 U.S.C. 1396b(w)(4)) is amended-- (1) in subparagraph (C)(ii), by inserting ``, and for fiscal years beginning on or after October 1, 2026, the applicable percent determined under subparagraph (D) shall be substituted for `6 percent' each place it appears'' after ``each place it appears''; and (2) by inserting after subparagraph (C)(ii), the following new subparagraph: ``(D)(i) For purposes of subparagraph (C)(ii), the applicable percent determined under this subparagraph is-- [[Page S3754]] ``(I) in the case of a non-expansion State and a class of health care items or services described in section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025)-- ``(aa) if, on the date of enactment of this subparagraph, the non-expansion State has enacted a tax and imposes such tax on such class and the Secretary determines that the tax is within the hold harmless threshold as of that date, the applicable percent of net patient revenue attributable to such class that has been so determined; and ``(bb) if, on the date of enactment of this subparagraph, the non-expansion State has not enacted or does not impose a tax with respect to such class, 0 percent; and ``(II) in the case of an expansion State and a class of health care items or services described in section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025), subject to clause (iv)-- ``(aa) if, on the date of enactment of this subparagraph, the expansion State has enacted a tax and imposes such tax on such class and the Secretary determines that the tax is within the hold harmless threshold as of that date, the lower of-- ``(AA) the applicable percent of net patient revenue attributable to such class that has been so determined; and ``(BB) the applicable percent specified in clause (ii) for the fiscal year; and ``(bb) if, on the date of enactment of this subparagraph, the expansion State has not enacted or does not impose a tax with respect to such class, 0 percent. ``(ii) For purposes of clause (i)(II)(aa)(BB), the applicable percent is-- ``(I) for fiscal year 2028, 5.5 percent; ``(II) for fiscal year 2029, 5 percent; ``(III) for fiscal year 2030, 4.5 percent; ``(IV) for fiscal year 2031, 4 percent; and ``(V) for fiscal year 2032 and each subsequent fiscal year, 3.5 percent. ``(iii) For purposes of clause (i): ``(I) Expansion state.--The term `expansion State' means a State that, beginning on January 1, 2014, or on any date thereafter, elects to provide medical assistance to all individuals described in section 1902(a)(10)(A)(i)(VIII) under the State plan under this title or under a waiver of such plan. ``(II) Non-expansion state.--The term `non-expansion State' means a State that is not an expansion State. ``(iv) In the case of a tax of an expansion State in effect on the date of enactment of this clause, that applies to a class of health care items or services that is described in paragraph (3) or (4) of section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025), and for which, on such date of enactment, is within the hold harmless threshold (as determined by the Secretary), the applicable percent of net patient revenue attributable to such class that has been so determined shall apply for a fiscal year instead of the applicable percent specified in clause (ii) for the fiscal year.''. (b) Non-application to Territories.--The amendments made by this section shall only apply with respect to a State that is 1 of the 50 States or the District of Columbia. (c) Implementation Funding.--For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services, $6,000,000 for fiscal year 2026, to remain available until expended. SEC. 71118. STATE DIRECTED PAYMENTS. (a) In General.--Subject to subsection (b), the Secretary of Health and Human Services (in this section referred to as the Secretary) shall revise section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a successor regulation) such that, with respect to a payment described in such section made for a service furnished during a rating period beginning on or after the date of the enactment of this Act, the total payment rate for such service is limited to-- (1) in the case of a State that provides coverage to all individuals described in section 1902(a)(10)(A)(i)(VIII) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) under the State plan (or waiver of such plan) of such State under title XIX of such Act, 100 percent of the specified total published Medicare payment rate (or, in the absence of a specified total published Medicare payment rate, the payment rate under a Medicaid State plan (or under a waiver of such plan)); or (2) in the case of a State other than a State described in paragraph (1), 110 percent of the specified total published Medicare payment rate (or, in the absence of a specified total published Medicare payment rate, the payment rate under a Medicaid State plan (or under a waiver of such plan)). (b) Grandfathering Certain Payments.--In the case of a payment described in section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a successor regulation) for which written prior approval (or a good faith effort to receive such approval, as determined by the Secretary) was made before May 1, 2025, or a payment described in such section for a rural hospital (as defined in subsection (d)(2)) for which written prior approval (or a good faith effort to receive such approval, as determined by the Secretary) was made by the date of enactment of this Act, for the rating period occurring within 180 days of the date of the enactment of this Act, beginning with the rating period on or after January 1, 2028, the total amount of such payment shall be reduced by 10 percentage points each year until the total payment rate for such service is equal to the rate for such service specified in subsection (a). (c) Treatment of Expansion States.--The revisions described in subsection (a) shall provide that, with respect to a State that begins providing the coverage described in paragraph (1) of such subsection on or after the date of the enactment of this Act, the limitation described in such paragraph shall apply to such State with respect to a payment described in section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a successor regulation) for a service furnished during a rating period beginning on or after the date of enactment of this Act. (d) Definitions.--In this section: (1) Rating period.--The term ``rating period'' has the meaning given such term in section 438.2 of title 42, Code of Federal Regulations (or a successor regulation). (2) Rural hospital.--The term ``rural hospital'' means the following: (A) A subsection (d) hospital (as defined in paragraph (1)(B) of section 1886(d)) that-- (i) is located in a rural area (as defined in paragraph (2)(D) of such section); (ii) is treated as being located in a rural area pursuant to paragraph (8)(E) of such section; or (iii) is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). (B) A critical access hospital (as defined in section 1861(mm)(1)). (C) A sole community hospital (as defined in section 1886(d)(5)(D)(iii)). (D) A Medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv)). (E) A low-volume hospital (as defined in section 1886(d)(12)(C)). (F) A rural emergency hospital (as defined in section 1861(kkk)(2)). (3) State.--The term ``State'' means 1 of the 50 States or the District of Columbia. (4) Total published medicare payment rate.--The term ``total published Medicare payment rate'' means amounts calculated as payment for specific services including the service furnished that have been developed under part A or part B of title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.). (5) Written prior approval.--The term ``written prior approval'' has the meaning given such term in section 438.6(c)(2)(i) of title 42, Code of Federal Regulations (or a successor regulation). (e) Funding.--There are appropriated out of any monies in the Treasury not otherwise appropriated $7,000,000 for each of fiscal years 2026 through 2033 for purposes of carrying out this section, to remain available until expended. SEC. 71119. REQUIREMENTS REGARDING WAIVER OF UNIFORM TAX REQUIREMENT FOR MEDICAID PROVIDER TAX. (a) In General.--Section 1903(w) of the Social Security Act (42 U.S.C. 1396b(w)) is amended-- (1) in paragraph (3)(E), by inserting after clause (ii)(II) the following new clause: ``(iii) For purposes of clause (ii)(I), a tax is not considered to be generally redistributive if any of the following conditions apply: ``(I) Within a permissible class, the tax rate imposed on any taxpayer or tax rate group (as defined in paragraph (7)(J)) explicitly defined by its relatively lower volume or percentage of Medicaid taxable units (as defined in paragraph (7)(H)) is lower than the tax rate imposed on any other taxpayer or tax rate group explicitly defined by its relatively higher volume or percentage of Medicaid taxable units. ``(II) Within a permissible class, the tax rate imposed on any taxpayer or tax rate group (as so defined) based upon its Medicaid taxable units (as so defined) is higher than the tax rate imposed on any taxpayer or tax rate group based upon its non-Medicaid taxable unit (as defined in paragraph (7)(I)). ``(III) The tax excludes or imposes a lower tax rate on a taxpayer or tax rate group (as so defined) based on or defined by any description that results in the same effect as described in subclause (I) or (II) for a taxpayer or tax rate group. Characteristics that may indicate such type of exclusion include the use of terminology to establish a tax rate group-- ``(aa) based on payments or expenditures made under the program under this title without mentioning the term `Medicaid' (or any similar term) to accomplish the same effect as described in subclause (I) or (II); or ``(bb) that closely approximates a taxpayer or tax rate group under the program under this title, to the same effect as described in subclause (I) or (II).''; and (2) in paragraph (7), by adding at the end the following new subparagraphs: ``(H) The term `Medicaid taxable unit' means a unit that is being taxed within a health care related tax that is applicable to the program under this title. Such term includes a unit that is used as the basis for-- ``(i) payment under the program under this title (such as Medicaid bed days); ``(ii) Medicaid revenue; ``(iii) costs associated with the program under this title (such as Medicaid charges, claims, or expenditures); and [[Page S3755]] ``(iv) other units associated with the program under this title, as determined by the Secretary. ``(I) The term `non-Medicaid taxable unit' means a unit that is being taxed within a health care related tax that is not applicable to the program under this title. Such term includes a unit that is used as the basis for-- ``(i) payment by non-Medicaid payers (such as non-Medicaid bed days); ``(ii) non-Medicaid revenue; ``(iii) costs that are not associated with the program under this title (such as non-Medicaid charges, non-Medicaid claims, or non-Medicaid expenditures); and ``(iv) other units not associated with the program under this title, as determined by the Secretary. ``(J) The term `tax rate group' means a group of entities contained within a permissible class of a health care related tax that are taxed at the same rate.''. (b) Non-application to Territories.--The amendments made by this section shall only apply with respect to a State that is 1 of the 50 States or the District of Columbia. (c) Effective Date.--The amendments made by this section shall take effect upon the date of enactment of this Act, subject to any applicable transition period determined appropriate by the Secretary of Health and Human Services, not to exceed 3 fiscal years. SEC. 71120. REQUIRING BUDGET NEUTRALITY FOR MEDICAID DEMONSTRATION PROJECTS UNDER SECTION 1115. (a) In General.--Section 1115 of the Social Security Act (42 U.S.C. 1315) is amended by adding at the end the following new subsection: ``(g) Requirement of Budget Neutrality for Medicaid Demonstration Projects.-- ``(1) In general.--Beginning January 1 2027, the Secretary may not approve an application for (or renewal or amendment of) an experimental, pilot, or demonstration project undertaken under subsection (a) to promote the objectives of title XIX in a State (in this subsection referred to as a `Medicaid demonstration project') unless the Chief Actuary for the Centers for Medicare & Medicaid Services certifies that such project, based on expenditures for the State program in the preceding fiscal year or, in the case of a renewal, the duration of the preceding waiver, is not expected to result in an increase in the amount of Federal expenditures compared to the amount that such expenditures would otherwise be in the absence of such project. For purposes of this subsection, expenditures for the coverage of populations and services that the State could have otherwise provided through its Medicaid State plan or other authority under title XIX, including expenditures that could be made under such authority but for the provision of such services at a different site of service than authorized under such State plan or other authority, shall be considered expenditures in the absence of such a project. ``(2) Treatment of savings.--In the event that expenditures with respect to a State under a Medicaid demonstration project are, during an approval period for such project, less than the amount of such expenditures that would have otherwise been made in the absence of such project, the Secretary shall specify the methodology to be used with respect to the subsequent approval period for such project for purposes of taking the difference between such expenditures into account.''. (b) Implementation Funding.--For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services, $5,000,000 for each of fiscal years 2026 and 2027, to remain available until expended. Subchapter D--Increasing Personal Accountability SEC. 71121. REQUIREMENT FOR STATES TO ESTABLISH MEDICAID COMMUNITY ENGAGEMENT REQUIREMENTS FOR CERTAIN INDIVIDUALS. (a) In General.--Section 1902 of the Social Security Act (42 U.S.C. 1396a), as amended by sections 71103 and 71104, is further amended by adding at the end the following new subsection: ``(xx) Community Engagement Requirement for Applicable Individuals.-- ``(1) In general.--Except as provided in paragraph (11), beginning not later than the first day of the first quarter that begins after December 31, 2026, or, at the option of the State under a waiver or demonstration project under section 1115 or the State plan, such earlier date as the State may specify, subject to the succeeding provisions of this subsection, a State shall provide, as a condition of eligibility for medical assistance for an applicable individual, that such individual is required to demonstrate community engagement under paragraph (2)-- ``(A) in the case of an applicable individual who has filed an application for medical assistance under a State plan (or a waiver of such plan) under this title, for 1 or more but not more than 3 (as specified by the State) consecutive months immediately preceding the month during which such individual applies for such medical assistance; and ``(B) in the case of an applicable individual enrolled and receiving medical assistance under a State plan (or under a waiver of such plan) under this title, for 1 or more (as specified by the State) months, whether or not consecutive-- ``(i) during the period between such individual's most recent determination (or redetermination, as applicable) of eligibility and such individual's next regularly scheduled redetermination of eligibility (as verified by the State as part of such regularly scheduled redetermination of eligibility); or ``(ii) in the case of a State that has elected under paragraph (4) to conduct more frequent verifications of compliance with the requirement to demonstrate community engagement, during the period between the most recent and next such verification with respect to such individual. ``(2) Community engagement compliance described.--Subject to paragraph (3), an applicable individual demonstrates community engagement under this paragraph for a month if such individual meets 1 or more of the following conditions with respect to such month, as determined in accordance with criteria established by the Secretary through regulation: ``(A) The individual works not less than 80 hours. ``(B) The individual completes not less than 80 hours of community service. ``(C) The individual participates in a work program for not less than 80 hours. ``(D) The individual is enrolled in an educational program at least half-time. ``(E) The individual engages in any combination of the activities described in subparagraphs (A) through (D), for a total of not less than 80 hours. ``(F) The individual has a monthly income that is not less than the applicable minimum wage requirement under section 6 of the Fair Labor Standards Act of 1938, multiplied by 80 hours. ``(G) The individual had an average monthly income over the preceding 6 months that is not less than the applicable minimum wage requirement under section 6 of the Fair Labor Standards Act of 1938 multiplied by 80 hours, and is a seasonal worker, as described in section 45R(d)(5)(B) of the Internal Revenue Code of 1986 . ``(3) Exceptions.-- ``(A) Mandatory exception for certain individuals.--The State shall deem an applicable individual to have demonstrated community engagement under paragraph (2) for a month, and may elect to not require an individual to verify information resulting in such deeming, if-- ``(i) for part or all of such month, the individual-- ``(I) was a specified excluded individual (as defined in paragraph (9)(A)(ii)); or ``(II) was-- ``(aa) under the age of 19; ``(bb) entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII; or ``(cc) described in any of subclauses (I) through (VII) of subsection (a)(10)(A)(i); or ``(ii) at any point during the 3-month period ending on the first day of such month, the individual was an inmate of a public institution. ``(B) Optional exception for short-term hardship events.-- ``(i) In general.--The State plan (or waiver of such plan) may provide, in the case of an applicable individual who experiences a short-term hardship event during a month, that the State shall, under procedures established by the State (in accordance with standards specified by the Secretary), in the case of a short-term hardship event described in clause (ii)(II) and, upon the request of such individual, a short- term hardship event described in subclause (I) or (III) of clause (ii), deem such individual to have demonstrated community engagement under paragraph (2) for such month. ``(ii) Short-term hardship event defined.--For purposes of this subparagraph, an applicable individual experiences a short-term hardship event during a month if, for part or all of such month-- ``(I) such individual receives inpatient hospital services, nursing facility services, services in an intermediate care facility for individuals with intellectual disabilities, inpatient psychiatric hospital services, or such other services of similar acuity (including outpatient care relating to other services specified in this subclause) as the Secretary determines appropriate; ``(II) such individual resides in a county (or equivalent unit of local government)-- ``(aa) in which there exists an emergency or disaster declared by the President pursuant to the National Emergencies Act or the Robert T. Stafford Disaster Relief and Emergency Assistance Act; or ``(bb) that, subject to a request from the State to the Secretary, made in such form, at such time, and containing such information as the Secretary may require, has an unemployment rate that is at or above the lesser of-- ``(AA) 8 percent; or ``(BB) 1.5 times the national unemployment rate; or ``(III) such individual or their dependent must travel outside of their community for an extended period of time to receive medical services necessary to treat a serious or complex medical condition (as described in paragraph (9)(A)(ii)(V)(ee)) that are not available within their community of residence. ``(4) Option to conduct more frequent compliance verifications.--With respect to an applicable individual enrolled and receiving medical assistance under a State plan (or a waiver of such plan) under this title, the State shall verify (in accordance with procedures specified by the Secretary) that each such individual has met the requirement to demonstrate community engagement under paragraph (1) during each such individual's [[Page S3756]] regularly scheduled redetermination of eligibility, except that a State may provide for such verifications more frequently. ``(5) Ex parte verifications.--For purposes of verifying that an applicable individual has met the requirement to demonstrate community engagement under paragraph (1), or determining such individual to be deemed to have demonstrated community engagement under paragraph (3), or that an individual is a specified excluded individual under paragraph (9)(A)(ii), the State shall, in accordance with standards established by the Secretary, establish processes and use reliable information available to the State (such as payroll data or payments or encounter data under this title for individuals and data on payments to such individuals for the provision of services covered under this title) without requiring, where possible, the applicable individual to submit additional information. ``(6) Procedure in the case of noncompliance.-- ``(A) In general.--If a State is unable to verify that an applicable individual has met the requirement to demonstrate community engagement under paragraph (1) (including, if applicable, by verifying that such individual was deemed to have demonstrated community engagement under paragraph (3)) the State shall (in accordance with standards specified by the Secretary)-- ``(i) provide such individual with the notice of noncompliance described in subparagraph (B); ``(ii)(I) provide such individual with a period of 30 calendar days, beginning on the date on which such notice of noncompliance is received by the individual, to-- ``(aa) make a satisfactory showing to the State of compliance with such requirement (including, if applicable, by showing that such individual was or should be deemed to have demonstrated community engagement under paragraph (3)); or ``(bb) make a satisfactory showing to the State that such requirement does not apply to such individual on the basis that such individual does not meet the definition of applicable individual under paragraph (9)(A); and ``(II) if such individual is enrolled under the State plan (or a waiver of such plan) under this title, continue to provide such individual with medical assistance during such 30-calendar-day period; and ``(iii) if no such satisfactory showing is made and the individual is not a specified excluded individual described in paragraph (9)(A)(ii), deny such individual's application for medical assistance under the State plan (or waiver of such plan) or, as applicable, disenroll such individual from the plan (or waiver of such plan) not later than the end of the month following the month in which such 30-calendar-day period ends, provided that-- ``(I) the State first determines whether, with respect to the individual, there is any other basis for eligibility for medical assistance under the State plan (or waiver of such plan) or for another insurance affordability program; and ``(II) the individual is provided written notice and granted an opportunity for a fair hearing in accordance with subsection (a)(3). ``(B) Notice.--The notice of noncompliance provided to an applicable individual under subparagraph (A)(i) shall include information (in accordance with standards specified by the Secretary) on-- ``(i) how such individual may make a satisfactory showing of compliance with such requirement (as described in subparagraph (A)(ii)) or make a satisfactory showing that such requirement does not apply to such individual on the basis that such individual does not meet the definition of applicable individual under paragraph (9)(A); and ``(ii) how such individual may reapply for medical assistance under the State plan (or a waiver of such plan) under this title in the case that such individuals' application is denied or, as applicable, in the case that such individual is disenrolled from the plan (or waiver). ``(7) Treatment of noncompliant individuals in relation to certain other provisions.-- ``(A) Certain fmap increases.--A State shall not be treated as not providing medical assistance to all individuals described in section 1902(a)(10)(A)(i)(VIII), or as not expending amounts for all such individuals under the State plan (or waiver of such plan), solely because such an individual is determined ineligible for medical assistance under the State plan (or waiver) on the basis of a failure to meet the requirement to demonstrate community engagement under paragraph (1). ``(B) Other provisions.--For purposes of section 36B(c)(2)(B) of the Internal Revenue Code of 1986, an individual shall be deemed to be eligible for minimum essential coverage described in section 5000A(f)(1)(A)(ii) of such Code for a month if such individual would have been eligible for medical assistance under a State plan (or a waiver of such plan) under this title but for a failure to meet the requirement to demonstrate community engagement under paragraph (1). ``(8) Outreach.-- ``(A) In general.--In accordance with standards specified by the Secretary, beginning not later than the date that precedes December 31, 2026 (or, if the State elects under paragraph (1) to specify an earlier date, such earlier date) by the number of months specified by the State under paragraph (1)(A) plus 3 months, and periodically thereafter, the State shall notify applicable individuals enrolled under a State plan (or waiver) under this title of the requirement to demonstrate community engagement under this subsection. Such notice shall include information on-- ``(i) how to comply with such requirement, including an explanation of the exceptions to such requirement under paragraph (3) and the definition of the term `applicable individual' under paragraph (9)(A); ``(ii) the consequences of noncompliance with such requirement; and ``(iii) how to report to the State any change in the individual's status that could result in-- ``(I) the applicability of an exception under paragraph (3) (or the end of the applicability of such an exception); or ``(II) the individual qualifying as a specified excluded individual under paragraph (9)(A)(ii). ``(B) Form of outreach notice.--A notice required under subparagraph (A) shall be delivered-- ``(i) by regular mail (or, if elected by the individual, in an electronic format); and ``(ii) in 1 or more additional forms, which may include telephone, text message, an internet website, other commonly available electronic means, and such other forms as the Secretary determines appropriate. ``(9) Definitions.--In this subsection: ``(A) Applicable individual.-- ``(i) In general.--The term `applicable individual' means an individual (other than a specified excluded individual (as defined in clause (ii)))-- ``(I) who is eligible to enroll (or is enrolled) under the State plan under subsection (a)(10)(A)(i)(VIII); or ``(II) who-- ``(aa) is otherwise eligible to enroll (or is enrolled) under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and as determined in accordance with standards prescribed by the Secretary in regulations); and ``(bb) has attained the age of 19 and is under 65 years of age, is not pregnant, is not entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII, and is not otherwise eligible to enroll under such plan. ``(ii) Specified excluded individual.--For purposes of clause (i), the term `specified excluded individual' means an individual, as determined by the State (in accordance with standards specified by the Secretary)-- ``(I) who is described in subsection (a)(10)(A)(i)(IX); ``(II) who-- ``(aa) is an Indian or an Urban Indian (as such terms are defined in paragraphs (13) and (28) of section 4 of the Indian Health Care Improvement Act); ``(bb) is a California Indian described in section 809(a) of such Act; or ``(cc) has otherwise been determined eligible as an Indian for the Indian Health Service under regulations promulgated by the Secretary; ``(III) who is the parent, guardian, caretaker relative, or family caregiver (as defined in section 2 of the RAISE Family Caregivers Act) of a dependent child 13 years of age and under or a disabled individual; ``(IV) who is a veteran with a disability rated as total under section 1155 of title 38, United States Code; ``(V) who is medically frail or otherwise has special medical needs (as defined by the Secretary), including an individual-- ``(aa) who is blind or disabled (as defined in section 1614); ``(bb) with a substance use disorder; ``(cc) with a disabling mental disorder; ``(dd) with a physical, intellectual or developmental disability that significantly impairs their ability to perform 1 or more activities of daily living; or ``(ee) with a serious or complex medical condition; ``(VI) who-- ``(aa) is in compliance with any requirements imposed by the State pursuant to section 407; or ``(bb) is a member of a household that receives supplemental nutrition assistance program benefits under the Food and Nutrition Act of 2008 and is not exempt from a work requirement under such Act; ``(VII) who is participating in a drug addiction or alcoholic treatment and rehabilitation program (as defined in section 3(h) of the Food and Nutrition Act of 2008); ``(VIII) who is an inmate of a public institution; or ``(IX) who is pregnant or entitled to postpartum medical assistance under paragraph (5) or (16) of subsection (e). ``(B) Educational program.--The term `educational program' includes-- ``(i) an institution of higher education (as defined in section 101 of the Higher Education Act of 1965); and ``(ii) a program of career and technical education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006). ``(C) State.--The term `State' means 1 of the 50 States or the District of Columbia. ``(D) Work program.--The term `work program' has the meaning given such term in section 6(o)(1) of the Food and Nutrition Act of 2008. ``(10) Prohibiting waiver of community engagement requirements.--Notwithstanding section 1115(a), the provisions of this subsection may not be waived. ``(11) Special implementation rule.-- [[Page S3757]] ``(A) In general.--Subject to subparagraph (C), the Secretary may exempt a State from compliance with the requirements of this subsection if-- ``(i) the State submits to the Secretary a request for such exemption, made in such form and at such time as the Secretary may require, and including the information specified in subparagraph (B); and ``(ii) the Secretary determines that based on such request, the State is demonstrating a good faith effort to comply with the requirements of this subsection. ``(B) Good faith effort determination.--In determining whether a State is demonstrating a good faith effort for purposes of subparagraph (A)(ii), the Secretary shall consider-- ``(i) any actions taken by the State toward compliance with the requirements of this subsection; ``(ii) any significant barriers to or challenges in meeting such requirements, including related to funding, design, development, procurement, or installation of necessary systems or resources; ``(iii) the State's detailed plan and timeline for achieving full compliance with such requirements, including any milestones of such plan (as defined by the Secretary); and ``(iv) any other criteria determined appropriate by the Secretary. ``(C) Duration of exemption.-- ``(i) In general.--An exemption granted under subparagraph (A) shall expire not later than December 31, 2028, and may not be renewed beyond such date. ``(ii) Early termination.--The Secretary may terminate an exemption granted under subparagraph (A) prior to the expiration date of such exemption if the Secretary determined that the State has-- ``(I) failed to comply with the reporting requirements described in subparagraph (D); or ``(II) based on the information provided pursuant to subparagraph (D), failed to make continued good faith efforts toward compliance with the requirements of this subsection. ``(D) Reporting requirements.--A State granted an exemption under subparagraph (A) shall submit to the Secretary-- ``(i) quarterly progress reports on the State's status in achieving the milestones toward full compliance described in subparagraph (B)(iii); and ``(ii) information on specific risks or newly identified barriers or challenges to full compliance, including the State's plan to mitigate such risks, barriers, or challenges.''. (b) Conforming Amendment.--Section 1902(a)(10)(A)(i)(VIII) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) is amended by striking ``subject to subsection (k)'' and inserting ``subject to subsections (k) and (xx)''. (c) Prohibiting Conflicts of Interest.--A State shall not use a Medicaid managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D)), or other contractor to determine beneficiary compliance under such section unless the contractor has no direct or indirect financial relationship with any Medicaid managed care entity or other specified entity that is responsible for providing or arranging for coverage of medical assistance for individuals enrolled with the entity pursuant to a contract with such State. (d) Interim Final Rulemaking.--Not later than June 1, 2026, the Secretary of Health and Human Services shall promulgate an interim final rule for purposes of implementing the provisions of, and the amendments made by, this section. Any action taken to implement the provisions of, and the amendments made by, this section shall not be subject to the provisions of section 553 of title 5, United States Code. (e) Development of Government Efficiency Grants to States.-- (1) In general.--In order for States to establish systems necessary to carry out the provisions of, and amendments made by, this section [or other sections of this chapter that pertain to conducting eligibility determinations or redeterminations], the Secretary of Health and Human Services shall-- (A) out of amounts appropriated under paragraph (3)(A), award to each State a grant equal to the amount specified in paragraph (2) for such State; and (B) out of amounts appropriated under paragraph (3)(B), distribute an equal amount among such States. (2) Amount specified.--For purposes of paragraph (1)(A), the amount specified in this paragraph is an amount that bears the same ratio to the amount appropriated under paragraph (3)(A) as the number of applicable individuals (as defined in section 1902(xx) of the Social Security Act, as added by subsection (a)) residing in such State bears to the total number of such individuals residing in all States, as of March 31, 2025. (3) Funding.--There are appropriated, out of any monies in the Treasury not otherwise appropriated-- (A) $100,000,000 for fiscal year 2026 for purposes of awarding grants under paragraph (1)(A), to remain available until expended; and (B) $100,000,000 for fiscal year 2026 for purposes of award grants under paragraph (1)(B), to remain available until expended. (4) Definition.--In this subsection, the term ``State'' means 1 of the 50 States and the District of Columbia. (f) Implementation Funding.--For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services, $50,000,000 for fiscal year 2026, to remain available until expended. SEC. 71122. MODIFYING COST SHARING REQUIREMENTS FOR CERTAIN EXPANSION INDIVIDUALS UNDER THE MEDICAID PROGRAM. (a) In General.--Section 1916 of the Social Security Act (42 U.S.C. 1396o) is amended-- (1) in subsection (a), in the matter preceding paragraph (1), by inserting ``(other than, beginning October 1, 2028, specified individuals (as defined in subsection (k)(3)))'' after ``individuals''; and (2) by adding at the end the following new subsection: ``(k) Special Rules for Certain Expansion Individuals.-- ``(1) Premiums.--Beginning October 1, 2028, the State plan shall provide that in the case of a specified individual (as defined in paragraph (3)) who is eligible under the plan, no enrollment fee, premium, or similar charge will be imposed under the plan. ``(2) Required imposition of cost sharing.-- ``(A) In general.--Subject to subparagraph (B) and subsection (j), in the case of a specified individual, the State plan shall, beginning October 1, 2028, provide for the imposition of such deductions, cost sharing, or similar charges determined appropriate by the State (in an amount greater than $0) with respect to certain care, items, or services furnished to such an individual, as determined by the State. ``(B) Limitations.-- ``(i) Exclusion of certain services.--In no case may a deduction, cost sharing, or similar charge be imposed under the State plan with respect to care, items, or services described in any of subparagraphs (B) through (J) of subsection (a)(2), or any primary care services, mental health care services, substance use disorder services, or services provided by a Federally qualified health center (as defined in 1905(l)(2)), certified community behavioral health clinic (as defined in section 1905(jj)(2)), or rural health clinic (as defined in 1905(l)(1)), furnished to a specified individual. ``(ii) Item and service limitation.-- ``(I) In general.--Except as provided in subclause (II), in no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to care or an item or service furnished to a specified individual exceed $35. ``(II) Special rules for prescription drugs.--In no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to a prescription drug furnished to a specified individual exceed the limit that would be applicable under paragraph (2)(A)(i) or (2)(B) of section 1916A(c) with respect to such drug and individual if such drug so furnished were subject to cost sharing under such section. ``(iii) Maximum limit on cost sharing.--The total aggregate amount of deductions, cost sharing, or similar charges imposed under the State plan for all individuals in the family may not exceed 5 percent of the family income of the family involved, as applied on a quarterly or monthly basis (as specified by the State). ``(C) Cases of nonpayment.--Notwithstanding subsection (e), a State may permit a provider participating under the State plan to require, as a condition for the provision of care, items, or services to a specified individual entitled to medical assistance under this title for such care, items, or services, the payment of any deductions, cost sharing, or similar charges authorized to be imposed with respect to such care, items, or services. Nothing in this subparagraph shall be construed as preventing a provider from reducing or waiving the application of such deductions, cost sharing, or similar charges on a case-by-case basis. ``(3) Specified individual defined.--For purposes of this subsection, the term `specified individual' means an individual who has a family income (as determined in accordance with section 1902(e)(14)) that exceeds the poverty line (as defined in section 2110(c)(5)) applicable to a family of the size involved and-- ``(A) is enrolled under section 1902(a)(10)(A)(i)(VIII); or ``(B) is described in such subsection and otherwise enrolled under a waiver of the State plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in section 1902(a)(10)(A)(i)(VIII). ``(4) State defined.--For purposes of this subsection, the term `State' means 1 of the 50 States or the District of Columbia.''. (b) Conforming Amendments.-- (1) Required application.--Section 1902(a)(14) of the Social Security Act (42 U.S.C. 1396a(a)(14)) is amended by inserting ``and provide for imposition of such deductions, cost sharing, or similar charges for care, items, or services furnished to specified individuals (as defined in paragraph (3) of section 1916(k)) in accordance with paragraph (2) of such section'' after ``section 1916''. (2) Nonapplicability of alternative cost sharing.--Section 1916A(a)(1) of the Social Security Act (42 U.S.C. 1396o- 1(a)(1)) is amended, in the second sentence, by striking ``or (j)'' and inserting ``(j), or (k)''. [[Page S3758]] Subchapter E--Expanding Access to Care SEC. 71123. MAKING CERTAIN ADJUSTMENTS TO COVERAGE OF HOME OR COMMUNITY-BASED SERVICES UNDER MEDICAID. (a) Expanding HCBS Coverage Under Section 1915(c) Waivers.--Section 1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) is amended-- (1) in paragraph (3), by inserting ``paragraph (11) or'' before ``subsection (h)(2)''; and (2) by adding at the end the following new paragraph: ``(11) Expanding Coverage for Home or Community-based Services.-- ``(A) In general.--Beginning July 1, 2028, notwithstanding paragraph (1), the Secretary may approve a waiver that is standalone from any other waiver approved under this subsection to include as medical assistance under the State plan of such State payment for part or all of the cost of home or community-based services (other than room and board (as described in paragraph (1))) approved by the Secretary which are provided pursuant to a written plan of care to individuals described in subparagraph (B)(iii). A waiver approved under this paragraph shall be for an initial term of 3 years and, upon the request of the State, shall be extended for additional 5-year periods unless the Secretary determines that for the previous waiver period the requirements specified under this subsection (excluding those excepted under subparagraph (B)) have not been met. ``(B) State requirements.--In addition to the requirements specified under this subsection (except for the requirements described in subparagraphs (C) and (D) of paragraph (2) and any other requirement specified under this subsection that the Secretary determines to be inapplicable in the context of a waiver that does not require individuals to have a determination described in paragraph (1)), a State shall meet the following requirements as a condition of waiver approval: ``(i) As of the date that such State requests a waiver under this subsection to provide home or community-based services to individuals described in clause (iii), all other waivers (if any) granted under this subsection to such State meet the requirements of this subsection. ``(ii) The State demonstrates to the Secretary that approval of a waiver under this subsection with respect to individuals described in clause (iii) will not result in a material increase of the average amount of time that individuals with respect to whom a determination described in paragraph (1) has been made will need to wait to receive home or community-based services under any other waiver granted under this subsection, as determined by the Secretary. ``(iii) The State establishes needs-based criteria, subject to the approval of the Secretary, regarding who will be eligible for home or community-based services under a waiver approved under this paragraph without requiring such individual to have a determination described in paragraph (1), and specifies the home or community-based services such individuals so eligible will receive. ``(iv) The State establishes needs-based criteria for determining whether an individual described in clause (iii) requires the level of care provided in a hospital, nursing facility, or an intermediate care facility for individuals with developmental disabilities under the State plan or under any waiver of such plan that are more stringent than the needs-based criteria established under clause (iii) for determining eligibility for home or community-based services. ``(v) The State attests that the State's average per capita expenditure for medical assistance under the State plan (or waiver of such plan) provided with respect to such individuals enrolled in a waiver under this paragraph will not exceed the State's average per capita expenditure for medical assistance for individuals receiving institutional care under the State plan (or waiver of such plan) for the duration that the waiver under this paragraph is in effect. ``(vi) The State provides to the Secretary data (in such form and manner as the Secretary may specify) regarding the number of individuals described in clause (iii) with respect to a State seeking approval of a waiver under this subsection, to whom the State will make such services available under such waiver. ``(vii) The State agrees to provide to the Secretary, not less frequently than annually, data for purposes of paragraph (2)(E) (in such form and manner as the Secretary may specify) regarding, with respect to each preceding year in which a waiver under this subsection to provide home or community- based services to individuals described in clause (iii) was in effect-- ``(I) the cost (as such term is defined by the Secretary) of such services furnished to individuals described in clause (iii), broken down by type of service; ``(II) with respect to each type of home or community-based service provided under the waiver, the length of time that such individuals have received such service; ``(III) a comparison between the data described in subclause (I) and any comparable data available with respect to individuals with respect to whom a determination described in paragraph (1) has been made and with respect to individuals receiving institutional care under this title; and ``(IV) the number of individuals who have received home or community-based services under the waiver during the preceding year. ``(C) Limitation on payments.--No payments made to carry out this paragraph shall be used to make payments to a third party on behalf of an individual practitioner for benefits such as health insurance, skills training, and other benefits customary for employees, in the case of a class of practitioners for which the program established under this title is the primary source of revenue.''. (b) Implementation Funding.-- (1) In general.--There are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services-- (A) for fiscal year 2026, $50,000,000 for purposes of carrying out the provisions of, and the amendments made by, this section, to remain available until expended; and (B) for fiscal year 2027, $100,000,000 for purposes of making payments to States, subject to paragraph (2), to support State systems to deliver home or community-based services under section1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) (as amended by this section), to remain available until expended. (2) Payments based on state hcbs eligible population.-- Payments to States from amounts made available by paragraph (1)(B) shall be made, with respect to a State, on the basis of the proportion of the population of the State that is eligible for home or community-based services under section1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) (as amended by this section), as compared to all States. SEC. 71124. DETERMINATION OF FMAP FOR HIGH-POVERTY STATES. Section 1905(b) of the Social Security Act (42 U.S.C. 1396d) is amended in the first sentence-- (1) by striking ``and (6)'' and inserting ``(6)''; and (2) by inserting before the period the following: ``, and (7) only for purposes of payments for medical assistance under this title (excluding any such payments that are based on the enhanced FMAP described in section 2105(b)), in the case of a State for which the Secretary issues under the authority of section 673(2) of the Omnibus Budget Reconciliation Act of 1981 a separate poverty guideline for any calendar year occurring during or after the date of enactment of this clause that is higher than the poverty guideline issued by the Secretary for such calendar year that is applicable to the majority of States, the regular Federal medical assistance percentage determined for such a State under this subsection (without regard to any adjustments to such percentage) for the 1st fiscal year quarter that begins after such date of enactment, and for each fiscal year quarter beginning thereafter, shall be increased (after such determination but prior to any other increase which may be applicable and in no case to exceed 100 percent) by, in the case of the State with the highest separate poverty guideline for the calendar year, 25 percent of the average regular Federal medical assistance percentage determined (without regard to any adjustments to such percentage) for the fiscal year for States which did not have a separate poverty guideline issued for them for such calendar year, and in the case of the State with the second highest separate poverty guideline for the calendar year, 15 percent of the average regular Federal medical assistance percentage determined (without regard to any adjustments to such percentage) for the fiscal year for States which did not have a separate poverty guideline issued for them for such calendar year''. CHAPTER 2--MEDICARE Subchapter A--Strengthening Eligibility Requirements SEC. 71201. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVIDUALS. Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is amended by adding at the end the following new section: ``SEC. 1899C. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVIDUALS. ``(a) In General.--Subject to subsection (b), an individual may be entitled to, or enrolled for, benefits under this title only if the individual is-- ``(1) a citizen or national of the United States; ``(2) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act; ``(3) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(4) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. ``(b) Application to Individuals Currently Entitled to or Enrolled for Benefits.-- ``(1) In general.--In the case of an individual who is entitled to, or enrolled for, benefits under this title as of the date of the enactment of this section, subsection (a) shall apply beginning on the date that is 18 months after such date of enactment. ``(2) Review by commissioner of social security.-- ``(A) In general.--Not later than 1 year after the date of the enactment of this section, the Commissioner of Social Security shall complete a review of individuals entitled to, or enrolled for, benefits under this title as of such date of enactment for purposes of identifying individuals not described [[Page S3759]] in any of paragraphs (1) through (4) of subsection (a). ``(B) Notice.--The Commissioner of Social Security shall notify each individual identified under the review conducted under subparagraph (A) that such individual's entitlement to, or enrollment for, benefits under this title will be terminated as of the date that is 18 months after the date of the enactment of this section. Such notification shall be made as soon as practicable after such identification and in a manner designed to ensure such individual's comprehension of such notification.''. Subchapter B--Improving Services for Seniors SEC. 71202. TEMPORARY PAYMENT INCREASE UNDER THE MEDICARE PHYSICIAN FEE SCHEDULE TO ACCOUNT FOR EXCEPTIONAL CIRCUMSTANCES. (a) In General.--Section 1848(t)(1) of the Social Security Act (42 U.S.C. 1395w-4(t)(1)) is amended-- (1) in the matter preceding subparagraph (A), by striking ``and 2024'' and inserting ``2024, and 2026''; (2) in subparagraph (D), by striking ``and'' at the end; (3) in subparagraph (E), by striking the period at the end and inserting ``; and''; and (4) by adding at the end the following new subparagraph: ``(F) such services furnished on or after January 1, 2026, and before January 1, 2027, by 2.5 percent.''. (b) Conforming Amendment.--Section 1848(c)(2)(B)(iv)(V) of the Social Security Act (42 U.S.C. 1395w-4(c)(2)(B)(iv)(V)) is amended by striking ``or 2024'' and inserting ``2024, or 2026''. SEC. 71203. EXPANDING AND CLARIFYING THE EXCLUSION FOR ORPHAN DRUGS UNDER THE DRUG PRICE NEGOTIATION PROGRAM. (a) In General.--Section 1192(e) of the Social Security Act (42 U.S.C. 1320f-1(e)) is amended-- (1) in paragraph (1), in the matter preceding subparagraph (A), by striking ``and (3)'' and inserting ``through (4)''; (2) in paragraph (3)(A)-- (A) by striking ``only one rare disease or condition'' and inserting ``one or more rare diseases or conditions''; and (B) by striking ``such disease or condition'' and inserting ``one or more such rare diseases or conditions (as such term is defined in section 526(a)(2) of the Federal Food, Drug, and Cosmetic Act)''; and (3) by adding at the end the following new paragraph: ``(4) Treatment of former orphan drugs.--In the case of a drug or biological product that, as of the date of the approval or licensure of such drug or biological product, is a drug or biological product described in paragraph (3)(A), paragraph (1)(A)(ii) or (1)(B)(ii) (as applicable) shall apply as if the reference to `the date of such approval' or `the date of such licensure', respectively, were instead a reference to `the first day after the date of such approval for which such drug is not a drug described in paragraph (3)(A)' or `the first day after the date of such licensure for which such biological product is not a biological product described in paragraph (3)(A)', respectively.''. (b) Application.--The amendments made by subsection (a) shall apply with respect to initial price applicability years (as defined in section 1191(b) of the Social Security Act (42 U.S.C. 1320f(b))) beginning on or after January 1, 2028. SEC. 71204. APPLICATION OF COST-OF-LIVING ADJUSTMENT TO NON- LABOR RELATED PORTION FOR HOSPITAL OUTPATIENT DEPARTMENT SERVICES FURNISHED IN ALASKA AND HAWAII. Section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)) is amended by adding at the end the following new paragraph: ``(23) Application of cost-of-living adjustment to non- labor related portion for hospital outpatient department services furnished in alaska and hawaii.-- ``(A) In general.--With respect to OPD services furnished on or after January 1, 2027, the Secretary shall provide for adjustments to the payment amounts under this subsection for such services in the same manner that is provided under section 1886(d)(5)(H) with respect to the application of the cost-of-living adjustment to the non-labor related portion of such payment amounts to take into account the unique circumstances of hospitals located in Alaska or Hawaii. Such adjustment shall not apply to payment amounts for a separately payable drug, biological, or medical device. ``(B) Application without regard to budget neutrality.-- Adjustments to payment amounts made under this paragraph-- ``(i) shall not be considered an adjustment under paragraph (2)(E); and ``(ii) shall not be implemented in a budget neutral manner.''. CHAPTER 3--HEALTH TAX Subchapter A--Improving Eligibility Criteria SEC. 71301. PERMITTING PREMIUM TAX CREDIT ONLY FOR CERTAIN INDIVIDUALS. (a) In General.--Section 36B(e)(1) is amended by inserting ``or, in the case of aliens who are lawfully present, are not eligible aliens'' after ``individuals who are not lawfully present''. (b) Eligible Aliens.--Section 36B(e)(2) is amended-- (1) by striking ``For purposes of this section, an individual'' and inserting ``For purposes of this section-- ``(A) In general.--An individual'', and (2) by adding at the end the following new subparagraph: ``(B) Eligible aliens.--An individual who is an alien and lawfully present shall be treated as an eligible alien if such individual is, and is reasonably expected to be for the entire period of enrollment for which the credit under this section is being claimed-- ``(i) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), ``(ii) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(iii) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G)).''. (c) Conforming Amendments.-- (1) Verification of information.--Section 1411 of the Patient Protection and Affordable Care Act (42 U.S.C. 18081) is amended-- (A) in subsection (a)-- (i) in paragraph (1), by striking ``and section 36B(e) of the Internal Revenue Code of 1986''; and (ii) in paragraph (2)-- (I) in subparagraph (A), by striking ``and'' at the end; (II) in subparagraph (B), by adding ``and'' at the end; and (III) by adding at the end the following new subparagraph: ``(C) in the case such individual is an alien lawfully present in the United States, whether such individual is an eligible alien (within the meaning of section 36B(e)(2) of such Code);''; (B) in subsection (b)(3), by adding at the end the following new subparagraph: ``(D) Immigration status.--In the case the individual's eligibility is based on an attestation of the enrollee's immigration status, an attestation that such individual is an eligible alien (within the meaning of 36B(e)(2) of the Internal Revenue Code of 1986).''; and (C) in subsection (c)(2)(B)(ii), by adding at the end the following new subclause: ``(III) In the case of an individual described in clause (i)(I) with respect to whom a premium tax credit under section 36B of the Internal Revenue Code of 1986 is being claimed, the attestation that the individual is an eligible alien (within the meaning of section 36B(e)(2) of such Code).''. (2) Advance determinations.--Section 1412(d) of the Patient Protection and Affordable Care Act (42 U.S.C. 18082(d)) is amended by inserting before the period at the end the following: ``, or credits under section 36B of the Internal Revenue Code of 1986 for aliens who are not eligible aliens (within the meaning of section 36B(e)(2) of such Code)''. (3) Effective date.--The amendments made by this subsection shall apply with respect to plan years beginning on or after January 1, 2027. (d) Clerical Amendments.-- (1) The heading for section 36B(e) is amended by inserting ``and Not Eligible Aliens'' after ``Individuals Not Lawfully Present''. (2) The heading for section 36B(e)(2) is amended by inserting ``; eligible aliens'' after ``lawfully present''. (e) Requirement to Maintain Minimum Essential Coverage.-- Section 5000A(d)(3) is amended by striking ``an alien lawfully present in the United States'' and inserting ``an eligible alien (within the meaning of section 36B(e)(2))''. (f) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (g) Effective Date.--The amendments made by this section (other than the amendments made by subsection (c)) shall apply to taxable years beginning after December 31, 2026. SEC. 71302. DISALLOWING PREMIUM TAX CREDIT DURING PERIODS OF MEDICAID INELIGIBILITY DUE TO ALIEN STATUS. (a) In General.--Section 36B(c)(1) is amended by striking subparagraph (B). (b) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. Subchapter B--Preventing Waste, Fraud, and Abuse SEC. 71303. REQUIRING VERIFICATION OF ELIGIBILITY FOR PREMIUM TAX CREDIT. (a) In General.--Section 36B(c) is amended by adding at the end the following new paragraphs: ``(5) Exchange enrollment verification requirement.-- ``(A) In general.--The term `coverage month' shall not include, with respect to any individual covered by a qualified health plan enrolled in through an Exchange, any month beginning before the Exchange verifies, using applicable enrollment information that shall be provided or verified by the applicant, such individual's eligibility-- [[Page S3760]] ``(i) to enroll in the plan through the Exchange, and ``(ii) for any advance payment under section 1412 of the Patient Protection and Affordable Care Act of the credit allowed under this section. ``(B) Applicable enrollment information.--For purposes of subparagraph (A), applicable enrollment information shall include affirmation of at least the following information (to the extent relevant in determining eligibility described in subparagraph (A)): ``(i) Household income and family size. ``(ii) Whether the individual is an eligible alien. ``(iii) Any health coverage status or eligibility for coverage. ``(iv) Place of residence. ``(v) Such other information as may be determined by the Secretary (in consultation with the Secretary of Health and Human Services) as necessary to the verification prescribed under subparagraph (A). ``(C) Verification of past months.--In the case of a month that begins before verification prescribed by subparagraph (A), such month shall be treated as a coverage month if, and only if, the Exchange verifies for such month (using applicable enrollment information that shall be provided or verified by the applicant) such individual's eligibility to have so enrolled and for any such advance payment. ``(D) Exchange participation; coordination with other procedures for determining eligibility.--An individual shall not, solely by reason of failing to meet the requirements of this paragraph with respect to a month, be treated for such month as ineligible to enroll in a qualified health plan through an Exchange. ``(E) Waiver for certain special enrollment periods.--The Secretary may waive the application of subparagraph (A) in the case of an individual who enrolls in a qualified health plan through an Exchange for 1 or more months of the taxable year during a special enrollment period provided by the Exchange on the basis of a change in the family size of the individual. ``(F) Information and reliance on third-party sources.--An Exchange shall be permitted to use any data available to the Exchange and any reliable third-party sources in collecting information for verification by the applicant. ``(6) Exchange compliance with filing requirements.--The term `coverage month' shall not include, with respect to any individual covered by a qualified health plan enrolled in through an Exchange, any month for which the Exchange does not meet the requirements of section 155.305(f)(4)(iii) of title 45, Code of Federal Regulations (as published in the Federal Register on June 25, 2025 (90 FR 27074), applied as though it applied to all plan years after 2025), with respect to the individual.''. (b) Pre-enrollment Verification Process Required.--Section 36B(c)(3)(A) is amended-- (1) by striking ``health plan.--The term'' and inserting ``health plan.-- `` ``(i) In general.--The term'', and (2) by adding at the end the following new clause: ``(ii) Pre-enrollment verification process required.--Such term shall not include any plan enrolled in through an Exchange, unless such Exchange provides a process for pre- enrollment verification through which any applicant may, beginning not later than August 1, verify with the Exchange the applicant's household income and eligibility for enrollment in such plan for plan years beginning in the subsequent year.''. (c) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2027. SEC. 71304. DISALLOWING PREMIUM TAX CREDIT IN CASE OF CERTAIN COVERAGE ENROLLED IN DURING SPECIAL ENROLLMENT PERIOD. (a) In General.--Section 36B(c)(3)(A), as amended by the preceding provisions of this Act, is amended by adding at the end the following new clause: ``(iii) Exception in case of certain special enrollment periods.--Such term shall not include any plan enrolled in during a special enrollment period provided for by an Exchange-- ``(I) on the basis of the relationship of the individual's expected household income to such a percentage of the poverty line (or such other amount) as is prescribed by the Secretary of Health and Human Services for purposes of such period, and ``(II) not in connection with the occurrence of an event or change in circumstances specified by the Secretary of Health and Human Services for such purposes.''. (b) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (c) Effective Date.--The amendments made by this section shall apply with respect to plan years beginning after December 31, 2025. SEC. 71305. ELIMINATING LIMITATION ON RECAPTURE OF ADVANCE PAYMENT OF PREMIUM TAX CREDIT. (a) In General.--Section 36B(f)(2) is amended by striking subparagraph (B). (b) Conforming Amendments.-- (1) Section 36B(f)(2) is amended by striking ``advance payments.--'' and all that follows through ``If the advance payments'' and inserting the following: ``advance payments.-- If the advance payments''. (2) Section 35(g)(12)(B)(ii) is amended by striking ``then section 36B(f)(2)(B) shall be applied by substituting the amount determined under clause (i) for the amount determined under section 36B(f)(2)(A)'' and inserting ``then the amount determined under clause (i) shall be substituted for the amount determined under section 36B(f)(2)''. (c) Special Rule for Certain Individuals Treated as Applicable Taxpayers.--Paragraph (1) of section 36B(c) is amended by adding at the end the following new subparagraph: ``(E) Special rule for certain individuals treated as applicable taxpayers.--In the case of a taxable year beginning after December 31, 2025, if an individual-- ``(i) is determined by an Exchange at the time of enrollment in a qualified health plan through such Exchange to have a projected annual household income for the taxable year which equals or exceeds 100 percent of an amount equal to the poverty line for a family of the size involved, and ``(ii) receives an advance payment of the credit under this section for 1 or more months during such taxable year under section 1412 of the Patient Protection and Affordable Care Act, such individual shall not fail to be treated as an applicable taxpayer for such taxable year solely because the actual household income of the individual for the taxable year is less than 100 percent of an amount equal to the poverty line for a family of the size involved, unless the Secretary determines that the individual provided incorrect information to the Exchange with intentional or reckless disregard for the facts.''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. Subchapter C--Enhancing Choice for Patients SEC. 71306. PERMANENT EXTENSION OF SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR TELEHEALTH SERVICES. (a) In General.--Subparagraph (E) of section 223(c)(2) is amended to read as follows: ``(E) Safe harbor for absence of deductible for telehealth.--A plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for telehealth and other remote care services.''. (b) Certain Coverage Disregarded.--Clause (ii) of section 223(c)(1)(B) is amended by striking ``(in the case of months or plan years to which paragraph (2)(E) applies)''. (c) Effective Date.--The amendments made by this section shall apply to plan years beginning after December 31, 2024. SEC. 71307. ALLOWANCE OF BRONZE AND CATASTROPHIC PLANS IN CONNECTION WITH HEALTH SAVINGS ACCOUNTS. (a) In General.--Section 223(c)(2) is amended by adding at the end the following new subparagraph: ``(H) Bronze and catastrophic plans treated as high deductible health plans.--The term `high deductible health plan' shall include any plan which is-- ``(i) available as individual coverage through an Exchange established under section 1311 or 1321 of the Patient Protection and Affordable Care Act, and ``(ii) described in subsection (d)(1)(A) or (e) of section 1302 of such Act.''. (b) Effective Date.--The amendment made by this section shall apply to months beginning after December 31, 2025. SEC. 71308. TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENTS. (a) In General.--Section 223(c)(1) is amended by adding at the end the following new subparagraph: ``(E) Treatment of direct primary care service arrangements.-- ``(i) In general.--A direct primary care service arrangement shall not be treated as a health plan for purposes of subparagraph (A)(ii). ``(ii) Direct primary care service arrangement.--For purposes of this subparagraph-- ``(I) In general.--The term `direct primary care service arrangement' means, with respect to any individual, an arrangement under which such individual is provided medical care (as defined in section 213(d)) consisting solely of primary care services provided by primary care practitioners (as defined in section 1833(x)(2)(A) of the Social Security Act, determined without regard to clause (ii) thereof), if the sole compensation for such care is a fixed periodic fee. ``(II) Limitation.--With respect to any individual for any month, such term shall not include any arrangement if the aggregate fees for all direct primary care service arrangements (determined without regard to this subclause) with respect to such individual for such month exceed $150 (twice such dollar amount in the case of an individual with any direct primary care service arrangement (as so determined) that covers more than one individual). ``(iii) Certain services specifically excluded from treatment as primary care services.--For purposes of this subparagraph, the term `primary care services' shall not include-- ``(I) procedures that require the use of general anesthesia, [[Page S3761]] ``(II) prescription drugs (other than vaccines), and ``(III) laboratory services not typically administered in an ambulatory primary care setting. The Secretary, after consultation with the Secretary of Health and Human Services, shall issue regulations or other guidance regarding the application of this clause.''. (b) Direct Primary Care Service Arrangement Fees Treated as Medical Expenses.--Section 223(d)(2)(C) is amended by striking ``or'' at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ``, or'', and by adding at the end the following new clause: ``(v) any direct primary care service arrangement.''. (c) Inflation Adjustment.--Section 223(g)(1) is amended-- (1) by striking ``in subsections (b)(2) and (c)(2)(A)'' and inserting ``in subsections (b)(2), (c)(2)(A), and in the case of taxable years beginning after 2026, (c)(1)(E)(ii)(II)'', (2) in subparagraph (B), by striking ``clause (ii)'' in clause (i) and inserting ``clauses (ii) and (iii)'', by striking ``and'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``, and'', and by inserting after clause (ii) the following new clause: ``(iii) in the case of the dollar amount in subsection (c)(1)(E)(ii)(II), `calendar year 2025'.'', and (3) by inserting ``, (c)(1)(E)(ii)(II),'' after ``(b)(2)'' in the last sentence. (d) Effective Date.--The amendments made by this section shall apply to months beginning after December 31, 2025. CHAPTER 4--PROTECTING RURAL HOSPITALS AND PROVIDERS SEC. 71401. RURAL HEALTH TRANSFORMATION PROGRAM. (a) In General.--Section 2105 of the Social Security Act (42 U.S.C. 1397ee) is amended by adding at the end the following new subsection: ``(h) Rural Health Transformation Program.-- ``(1) Appropriation.-- ``(A) In general.--There are appropriated, out of any money in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services (in this subsection referred to as the `Administrator'), to provide allotments to States for purposes of carrying out the activities described in paragraph (6)-- ``(i) $10,000,000,000 for fiscal year 2028; ``(ii) $10,000,000,000 for fiscal year 2029; ``(iii) $2,000,000,000 for fiscal year 2030; ``(iv) $2,000,000,000 for fiscal year 2031; and ``(v) $1,000,000,000 for fiscal year 2032. ``(B) Unexpended or unobligated funds.-- ``(i) In general.--Any amounts appropriated under subparagraph (A) that are unexpended or unobligated as of October 1, 2034, shall be returned to the Treasury of the United States. ``(ii) Redistribution of unexpended or unobligated funds.-- In carrying out subparagraph (A), the Administrator shall, not later than March 31, 2030, and annually thereafter through March 31, 2034-- ``(I) determine the amount of funds, if any, that are available under such subparagraph for a previous fiscal year, are unexpended or unobligated with respect to such fiscal year, and will not be available to a State in the current fiscal year, pursuant to clause (iii); and ``(II) if the Administrator determines that any such funds from a previous fiscal year remain, redistribute such funds in the current fiscal year to States that have an application approved under this subsection for such fiscal year in accordance with an allotment methodology specified by the Administrator. ``(iii) Availability of funds.-- ``(I) In general.--Amounts allotted to a State under this subsection for a year shall be available for expenditure by the State through the end of the fiscal year following the fiscal year in which such amounts are allotted. ``(II) Availability of amounts redistributed.--Amounts redistributed to a State under clause (ii) with respect to a fiscal year shall be available for expenditure by the State through the end of the fiscal year following the fiscal year in which such amounts are redistributed (except in the case of amounts redistributed in fiscal year 2034 which shall only be available for expenditure through September 30, 2034). ``(iv) Misuse of funds.--If the Administrator determines that a State is not using amounts allotted or redistributed to the State under this subsection in a manner consistent with the description provided by the State in its application approved under paragraph (2), the Administrator may withhold payments to, or reduce payments to, or recover previous payments from, the State under this subsection as the Administrator deems appropriate, and any amounts so withheld, or that remain after any such reduction, or so recovered, shall be returned to the Treasury of the United States. ``(2) Application.-- ``(A) In general.--To be eligible for an allotment under this subsection, a State shall submit to the Administrator during an application submission period to be specified by the Administrator (but that ends not later than April 1, 2027) an application in such form and manner as the Administrator may specify, that includes-- ``(i) a detailed rural health transformation plan, developed in consultation with the State Office of Rural Health-- ``(I) to improve access to hospitals, other health care providers, and health care items and services furnished to rural residents of the State; ``(II) to improve health care outcomes of rural residents of the State; ``(III) to prioritize the use of new and emerging technologies that emphasize prevention and chronic disease management; ``(IV) to initiate, foster, and strengthen local and regional strategic partnerships between rural hospitals and other health care providers in order to promote measurable quality improvement, increase financial stability, maximize economies of scale, and share best practices in care delivery; ``(V) to enhance economic opportunity for, and the supply of, health care clinicians through enhanced recruitment and training; ``(VI) to prioritize data and technology driven solutions that help rural hospitals and other rural health care providers furnish high-quality health care services as close to a patient's home as is possible; ``(VII) that outlines strategies to manage long-term financial solvency and operating models of rural hospitals in the State; and ``(VIII) that identifies specific causes driving the accelerating rate of stand-alone rural hospitals becoming at risk of closure, conversion, or service reduction; ``(ii) a certification that none of the amounts provided under this subsection shall be used by the State for an expenditure that is attributable to an intergovernmental transfer, certified public expenditure, or any other expenditure to finance the non-Federal share of expenditures required under any provision of law, including under the State plan established under this title, the State plan established under title XIX, or under a waiver of such plans; and ``(iii) such other information as the Administrator may require. ``(B) Deadline for approval.--Not later than September 30, 2027, the Administrator shall approve or deny all applications submitted for an allotment under this subsection. ``(C) One-time application.--If an application of a State for an allotment under this subsection is approved by the Administrator, the State shall be eligible for an allotment under this subsection for each of fiscal years 2028 through 2032, except as provided in paragraph (1)(B)(iv). ``(D) Eligibility.--Only the 50 States shall be eligible for an allotment under this subsection and all references in this subsection to a State shall be treated as only referring to the 50 States. ``(3) Allotments.-- ``(A) In general.--For each of fiscal years 2028 through 2032, the Administrator shall determine under subparagraph (B) the amount of the allotment for such fiscal year for each State with an approved application under this subsection. ``(B) Amount determined.--From the amounts appropriated under paragraph (1)(A) for each of fiscal years 2028 through 2032, the Administrator shall allot-- ``(i) 50 percent of the amounts appropriated for each such fiscal year equally among all States with an approved application under this subsection; and ``(ii) 50 percent of the amounts appropriated for each such fiscal year among all such States in an amount to be determined by the Administrator in accordance with subparagraph (C). ``(C) Considerations.--In determining the amount to be allotted to a State under subparagraph (B)(ii) for a fiscal year, the Administrator shall consider the following: ``(i) The percentage of the State population that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(ii) The proportion of rural health facilities (as defined in subparagraph (D)) in the State relative to the number of rural health facilities nationwide. ``(iii) The situation of hospitals in the State, as described in section 1902(a)(13)(A)(iv). ``(iv) Any other factors that the Administrator determines appropriate. ``(D) Rural health facility defined.--For the purposes of subparagraph (C)(ii), the term `rural health facility' means the following: ``(i) A subsection (d) hospital (as defined in paragraph (1)(B) of section 1886(d)) that-- ``(I) is located in a rural area (as defined in paragraph (2)(D) of such section); ``(II) is treated as being located in a rural area pursuant to paragraph (8)(E) of such section; or ``(III) is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(ii) A critical access hospital (as defined in section 1861(mm)(1)). ``(iii) A sole community hospital (as defined in section 1886(d)(5)(D)(iii)). ``(iv) A Medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv)). ``(v) A low-volume hospital (as defined in section 1886(d)(12)(C)). ``(vi) A rural emergency hospital (as defined in section 1861(kkk)(2)). [[Page S3762]] ``(vii) A rural health clinic (as defined in section 1861(aa)(2)). ``(viii) A Federally qualified health center (as defined in section 1861(aa)(4)). ``(ix) A community mental health center (as defined in section 1861(ff)(3)(B)). ``(x) A health center that is receiving a grant under section 330 of the Public Health Service Act. ``(xi) An opioid treatment program (as defined in section 1861(jjj)(2)) that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(xii) A certified community behavioral health clinic (as defined in section 1905(jj)(2)) that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(4) No matching payment.--A State approved for an allotment under this subsection for a fiscal year shall not be required to provide any matching funds as a condition for receiving payments from the allotment. ``(5) Terms and conditions.--The Administrator shall specify such terms and conditions for allotments to States provided under this subsection as the Administrator deems appropriate, including the following: ``(A) Each State shall submit to the Administrator (at a time, and in a form and manner, specified by the Administrator)-- ``(i) a plan for the State to use its allotment to carry out 3 or more of the activities described in paragraph (6); and ``(ii) annual reports on the use of allotments, including such additional information as the Administrator determines appropriate. ``(B) Not more than 10 percent of the amount allotted to a State for a fiscal year may be used by the State for administrative expenses. ``(C) In the event that a State uses amounts from an allotment to provide payments to health care providers in accordance with subparagraph (B) or (J) of paragraph (6), the State shall ensure that such amounts are not used to reimburse any expense or loss that-- ``(i) has been reimbursed from any other source; or ``(ii) any other source is obligated to reimburse. ``(6) Use of funds.--Amounts allotted to a State under this subsection shall be used for 3 or more of the following health-related activities: ``(A) Promoting evidence-based, measurable interventions to improve prevention and chronic disease management. ``(B) Providing payments to health care providers, as defined by the Administrator, for the provision of health care items or services, as specified by the Administrator. ``(C) Promoting consumer-facing, technology-driven solutions for the prevention and management of chronic diseases. ``(D) Providing training and technical assistance for the development and adoption of technology-enabled solutions that improve care delivery in rural hospitals, including remote monitoring, robotics, artificial intelligence, and other advanced technologies. ``(E) Recruiting and retaining clinical workforce talent to rural areas, with commitments to serve rural communities for a minimum of 5 years. ``(F) Providing technical assistance, software, and hardware for significant information technology advances designed to improve efficiency, enhance cybersecurity capability development, and improve patient health outcomes. ``(G) Assisting rural communities to right size their health care delivery systems by identifying needed preventative, ambulatory, pre-hospital, emergency, acute inpatient care, outpatient care, and post-acute care service lines. ``(H) Supporting access to opioid use disorder treatment services (as defined in section 1861(jjj)(1)), other substance use disorder treatment services, and mental health services. ``(I) Developing projects that support innovative models of care that include value-based care arrangements and alternative payment models, as appropriate. ``(J) Additional uses designed to promote sustainable access to high quality rural health care services, as determined by the Administrator. ``(7) Exemptions.--Paragraphs (2), (3), (5), (6), (8), (10), (11), and (12) of subsection (c) do not apply to payments under this subsection. ``(8) Review.--There shall be no administrative or judicial review under section 1116 or otherwise of amounts allotted or redistributed to States under this subsection, payments to States withheld or reduced under this subsection, or previous payments recovered from States under this subsection.''. (b) Conforming Amendments.--Title XXI of the Social Security Act (42 U.S.C. 1397aa) is amended-- (1) in section 2101-- (A) in subsection (a), in the matter preceding paragraph (1), by striking ``The purpose'' and inserting ``Except with respect to the rural health transformation program established in section 2105(h), the purpose''; and (B) in subsection (b), in the matter preceding paragraph (1), by inserting ``subsection (a) or (g) of'' before ``section 2105''; (2) in section 2105(c)(1), by striking ``and may not include'' and inserting ``or to carry out the rural health transformation program established in subsection (h) and, except in the case of amounts made available under subsection (h), may not include''; and (3) in section 2106(a)(1), by inserting ``subsection (a) or (g) of'' before ``section 2105''. (c) Implementation.--The Administrator of the Centers for Medicare & Medicaid Services shall implement this section, including the amendments made by this section, by program instruction or other forms of program guidance. Subtitle C--Increase in Debt Limit SEC. 72001. MODIFICATION OF LIMITATION ON THE PUBLIC DEBT. The limitation under section 3101(b) of title 31, United States Code, as most recently increased by section 401(b) of Public Law 118-5 (31 U.S.C. 3101 note), is increased by $5,000,000,000,000. TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS Subtitle A--Exemption of Certain Assets SEC. 80001. EXEMPTION OF CERTAIN ASSETS. (a) Exemption of Certain Assets.--Section 480(f)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended-- (1) by striking ``net value of the'' and inserting the following: ``net value of-- ``(A) the''; (2) by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following: ``(B) a family farm on which the family resides; ``(C) a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family; or ``(D) a commercial fishing business and related expenses, including fishing vessels and permits owned and controlled by the family.''. (b) Effective Date and Application.--The amendments made by subsection (a) shall take effect on July 1, 2026, and shall apply with respect to award year 2026-2027 and each subsequent award year, as determined under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). Subtitle B--Loan Limits SEC. 81001. ESTABLISHMENT OF LOAN LIMITS FOR GRADUATE AND PROFESSIONAL STUDENTS AND PARENT BORROWERS; TERMINATION OF GRADUATE AND PROFESSIONAL PLUS LOANS. Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is amended-- (1) in paragraph (3)-- (A) in the paragraph heading, by inserting ``and federal direct plus loans'' after ``loans''; (B) by striking subparagraph (A) and inserting the following: ``(A) Termination of authority to make interest subsidized loans to graduate and professional students.--Subject to subparagraph (B), and notwithstanding any provision of this part or part B-- ``(i) for any period of instruction beginning on or after July 1, 2012, a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part; and ``(ii) for any period of instruction beginning on July 1, 2012, and ending on June 30, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the maximum annual amount for such student determined under section 428H, plus an amount equal to the amount of Federal Direct Stafford loans the student would have received in the absence of this subparagraph.''; and (C) by adding at the end the following: ``(C) Termination of authority to make federal direct plus loans to graduate and professional students.--Subject to paragraph (8) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2026, a graduate or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part.''; and (2) by adding at the end the following: ``(4) Graduate and professional annual and aggregate limits for federal direct unsubsidized stafford loans beginning july 1, 2026.-- ``(A) Annual limits beginning july 1, 2026.--Subject to paragraphs (7)(A) and (8), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans-- ``(i) a graduate student, who is not a professional student, may borrow in any academic year or its equivalent shall be $20,500; and ``(ii) a professional student may borrow in any academic year or its equivalent shall be $50,000. ``(B) Aggregate limits.--Subject to paragraphs (6), (7)(A), and (8), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans, in addition to the amount borrowed for undergraduate education, that-- ``(i) a graduate student-- ``(I) who is not (and has not been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be $100,000; or ``(II) who is (or has been) a professional student, may borrow for programs of study [[Page S3763]] described in subparagraph (C)(i) shall be an amount equal to-- ``(aa) $200,000; minus ``(bb) the amount such student borrowed for programs of study described in subparagraph (C)(ii); and ``(ii) a professional student-- ``(I) who is not (and has not been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be $200,000; or ``(II) who is (or has been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be an amount equal to-- ``(aa) $200,000; minus ``(bb) the amount such student borrowed for programs of study described in subparagraph (C)(i). ``(C) Definitions.-- ``(i) Graduate student.--The term `graduate student' means a student enrolled in a program of study that awards a graduate credential (other than a professional degree) upon completion of the program. ``(ii) Professional student.--In this paragraph, the term `professional student' means a student enrolled in a program of study that awards a professional degree, as defined under section 668.2 of title 34, Code of Federal Regulations (as in effect on the date of enactment of this paragraph), upon completion of the program. ``(5) Parent borrower annual and aggregate limits for federal direct plus loans beginning july 1, 2026.-- ``(A) Annual limits.--Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, for each dependent student, the total maximum annual amount of Federal Direct PLUS loans that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $20,000. ``(B) Aggregate limits.--Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, for each dependent student, the total maximum aggregate amount of Federal Direct PLUS loans that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $65,000, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan. ``(6) Lifetime maximum aggregate amount for all students.-- Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, the maximum aggregate amount of loans made, insured, or guaranteed under this title that a student may borrow (other than a Federal Direct PLUS loan, or loan under section 428B, made to the student as a parent borrower on behalf of a dependent student) shall be $257,500, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan. ``(7) Additional rules regarding annual loan limits.-- ``(A) Less than full-time enrollment.--Notwithstanding any provision of this part or part B, in any case in which a student is enrolled in a program of study of an institution of higher education on less than a full-time basis during any academic year, the amount of a loan that student may borrow for an academic year or its equivalent shall be reduced in direct proportion to the degree to which that student is not so enrolled on a full-time basis, rounded to the nearest whole percentage point, as provided in a schedule of reductions published by the Secretary computed for purposes of this subparagraph. ``(B) Institutionally determined limits.--Notwithstanding the annual loan limits established under this section and, for undergraduate students, under this part and part B, beginning on July 1, 2026, an institution of higher education (at the discretion of a financial aid administrator at the institution) may limit the total amount of loans made under this part for a program of study for an academic year that a student may borrow, and that a parent may borrow on behalf of such student, as long as any such limit is applied consistently to all students enrolled in such program of study. ``(8) Interim exception for certain students.-- ``(A) Application of prior limits.--Paragraphs (3)(C), (4), (5), and (6) shall not apply, and paragraph (3)(A)(ii) shall apply as such paragraph was in effect for periods of instruction ending before June 30, 2026, during the expected time to credential described in subparagraph (B), with respect to an individual who, as of June 30, 2026-- ``(i) is enrolled in a program of study at an institution of higher education; and ``(ii) has received a loan (or on whose behalf a loan was made) under this part for such program of study. ``(B) Expected time to credential.--For purposes of this paragraph, the expected time to credential of an individual shall be equal to the lesser of-- ``(i) three academic years; or ``(ii) the period determined by calculating the difference between-- ``(I) the program length for the program of study in which the individual is enrolled; and ``(II) the period of such program of study that such individual has completed as of the date of the determination under this subparagraph. ``(C) Definition of program length.--In this paragraph, the term `program length' means the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution of higher education for a full-time student to complete the requirements for a specific program of study.''. Subtitle C--Loan Repayment SEC. 82001. LOAN REPAYMENT. (a) Transition to Income-based Repayment Plans.-- (1) Selection.--The Secretary of Education shall take such steps as may be necessary to ensure that before July 1, 2028, each borrower who has one or more loans that are in a repayment status in accordance with, or an administrative forbearance associated with, an income contingent repayment plan authorized under section 455(e) of the Higher Education Act of 1965 (referred to in this subsection as ``covered income contingent loans'') selects one of the following income-based repayment plans that is otherwise applicable, and for which that borrower is otherwise eligible, for the repayment of the covered income contingent loans of the borrower: (A) The Repayment Assistance Plan under section 455(q) of the Higher Education Act of 1965. (B) The income-based repayment plan under section 493C of the Higher Education Act of 1965. (C) Any other repayment plan as authorized under section 455(d)(1) of the Higher Education Act of 1965. (2) Commencement of new repayment plan.--Beginning on July 1, 2028, a borrower described in paragraph (1) shall begin repaying the covered income contingent loans of the borrower in accordance with the repayment plan selected under paragraph (1), unless the borrower chooses to begin repaying in accordance with the repayment plan selected under paragraph (1) before such date. (3) Failure to select.--In the case of a borrower described in paragraph (1) who fails to select a repayment plan in accordance with such paragraph, the Secretary of Education shall-- (A) enroll the covered income contingent loans of such borrower in-- (i) the Repayment Assistance Plan under section 455(q) of the Higher Education Act of 1965 with respect to loans that are eligible for the Repayment Assistance Plan under such subsection; or (ii) the income-based repayment plan under section 493C of such Act, with respect to loans that are not eligible for the Repayment Assistance Plan; and (B) require the borrower to begin repaying covered income contingent loans according to the plans under subparagraph (A) on July 1, 2028. (b) Repayment Plans.--Section 455(d) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)) is amended-- (1) in paragraph (1)-- (A) in the matter preceding subparagraph (A), by inserting ``before July 1, 2026, who has not received a loan made under this part on or after July 1, 2026,'' after ``made under this part''; (B) in subparagraph (D)-- (i) by inserting ``before June 30, 2028,'' before ``an income contingent repayment plan''; and (ii) by striking ``and'' after the semicolon; (C) in subparagraph (E)-- (i) by striking ``that enables borrowers who have a partial financial hardship to make a lower monthly payment''; (ii) by striking ``a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan under section 428B made on behalf of a dependent student'' and inserting ``an excepted Consolidation Loan (as defined in section 493C(a)(2))''; and (iii) by striking the period at the end and inserting ``; and''; and (D) by adding at the end the following: ``(F) beginning on July 1, 2026, the income-based Repayment Assistance Plan under subsection (q), provided that-- ``(i) such Plan shall not be available for the repayment of excepted loans (as defined in paragraph (7)(E)); and ``(ii) the borrower is required to pay each outstanding loan of the borrower made under this part under such Repayment Assistance Plan, except that a borrower of an excepted loan (as defined in paragraph (7)(E)) may repay the excepted loan separately from other loans under this part obtained by the borrower.''; (2) in paragraph (5), by amending subparagraph (B) to read as follows: ``(B) repay the loan pursuant to an income-based repayment plan under subsection (q) or section 493C, as applicable.''; and (3) by adding at the end the following: ``(6) Termination and limitation of repayment authority.-- ``(A) Sunset of repayment plans available before july 1, 2026.--Paragraphs (1) through (4) of this subsection shall only apply to loans made under this part before July 1, 2026. ``(B) Prohibitions.--The Secretary may not, for any loan made under this part on or after July 1, 2026-- ``(i) authorize a borrower of such a loan to repay such loan pursuant to a repayment plan that is not described in paragraph (7)(A); or ``(ii) carry out or modify a repayment plan that is not described in such paragraph. ``(7) Repayment plans for loans made on or after july 1, 2026.-- ``(A) Design and selection.--Beginning on July 1, 2026, the Secretary shall offer a borrower of a loan made under this part on or [[Page S3764]] after such date (including such a borrower who also has a loan made under this part before such date) two plans for repayment of the borrower's loans under this part, including principal and interest on such loans. The borrower shall be entitled to accelerate, without penalty, repayment on such loans. The borrower may choose-- ``(i) a standard repayment plan-- ``(I) with a fixed monthly repayment amount paid over a fixed period of time equal to the applicable period determined under subclause (II); and ``(II) with the applicable period of time for repayment determined based on the total outstanding principal of all loans of the borrower made under this part before, on, or after July 1, 2026, at the time the borrower is entering repayment under such plan, as follows-- ``(aa) for a borrower with total outstanding principal of less than $25,000, a period of 10 years; ``(bb) for a borrower with total outstanding principal of not less than $25,000 and less than $50,000, a period of 15 years; ``(cc) for a borrower with total outstanding principal of not less than $50,000 and less than $100,000, a period of 20 years; and ``(dd) for a borrower with total outstanding principal of $100,000 or more, a period of 25 years; or ``(ii) the income-based Repayment Assistance Plan under subsection (q). ``(B) Selection by secretary.--If a borrower of a loan made under this part on or after July 1, 2026, does not select a repayment plan described in subparagraph (A), the Secretary shall provide the borrower with the standard repayment plan described in subparagraph (A)(i). ``(C) Selection applies to all outstanding loans.--A borrower is required to pay each outstanding loan of the borrower made under this part under the same selected repayment plan, except that a borrower who selects the Repayment Assistance Plan and also has an excepted loan that is not eligible for repayment under such Repayment Assistance Plan shall repay the excepted loan separately from other loans under this part obtained by the borrower. ``(D) Changes of repayment plan.--A borrower may change the borrower's selection of-- ``(i) the standard repayment plan under subparagraph (A)(i), or the Secretary's selection of such plan for the borrower under subparagraph (B), as the case may be, to the Repayment Assistance Plan under subparagraph (A)(ii) at any time; and ``(ii) the Repayment Assistance Plan under subparagraph (A)(ii) to the standard repayment plan under subparagraph (A)(i) at any time. ``(E) Repayment for borrowers with excepted loans made on or after july 1, 2026.-- ``(i) Standard repayment plan required.--Notwithstanding subparagraphs (A) through (D), beginning on July 1, 2026, the Secretary shall require a borrower who has received an excepted loan made on or after such date (including such a borrower who also has an excepted loan made before such date) to repay each excepted loan, including principal and interest on those excepted loans, under the standard repayment plan under subparagraph (A)(i). The borrower shall be entitled to accelerate, without penalty, repayment on such loans. ``(ii) Excepted loan defined.--For the purposes of this paragraph, the term `excepted loan' means a loan with an outstanding balance that is-- ``(I) a Federal Direct PLUS Loan that is made on behalf of a dependent student; or ``(II) a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on-- ``(aa) an excepted PLUS loan, as defined in section 493C(a)(1); or ``(bb) an excepted consolidation loan (as such term is defined in section 493C(a)(2)(A), notwithstanding subparagraph (B) of such section).''. (c) Elimination of Authority to Provide Income Contingent Repayment Plans.-- (1) Repeal.--Subsection (e) of section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e(e)) is repealed. (2) Further amendments to eliminate income contingent repayment.-- (A) Section 428 of the Higher Education Act of 1965 (20 U.S.C. 1078) is amended-- (i) in subsection (b)(1)(D), by striking ``be subject to income contingent repayment in accordance with subsection (m)'' and inserting ``be subject to income-based repayment in accordance with subsection (m)''; and (ii) in subsection (m)-- (I) in the subsection heading, by striking ``Income Contingent and''; (II) by amending paragraph (1) to read as follows: ``(1) Authority of secretary to require.--The Secretary may require borrowers who have defaulted on loans made under this part that are assigned to the Secretary under subsection (c)(8) to repay those loans pursuant to an income-based repayment plan under section 493C.''; and (III) in the heading of paragraph (2), by striking ``income contingent or''. (B) Section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078-3) is amended-- (i) in subsection (a)(3)(B)(i)(V)(aa), by striking ``for the purposes of obtaining income contingent repayment or income-based repayment'' and inserting ``for the purposes of qualifying for an income-based repayment plan under section 455(q) or section 493C, as applicable''; (ii) in subsection (b)(5), by striking ``be repaid either pursuant to income contingent repayment under part D of this title, pursuant to income-based repayment under section 493C, or pursuant to any other repayment provision under this section'' and inserting ``be repaid pursuant to an income- based repayment plan under section 493C or any other repayment provision under this section''; and (iii) in subsection (c)-- (I) in paragraph (2)(A), by striking ``or by the terms of repayment pursuant to income contingent repayment offered by the Secretary under subsection (b)(5)'' and inserting ``or by the terms of repayment pursuant to an income-based repayment plan under section 493C''; and (II) in paragraph (3)(B), by striking ``except as required by the terms of repayment pursuant to income contingent repayment offered by the Secretary under subsection (b)(5)'' and inserting ``except as required by the terms of repayment pursuant to an income-based repayment plan under section 493C''. (C) Section 485(d)(1) of the Higher Education Act of 1965 (20 U.S.C. 1092(d)(1)) is amended by striking ``income- contingent and''. (D) Section 494(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1098h(a)(2)) is amended-- (i) in the paragraph heading, by striking ``Income- contingent and income-based'' and inserting ``Income-based''; and (ii) in subparagraph (A)-- (I) in the matter preceding clause (i), by striking ``income-contingent or''; and (II) in clause (ii)(I), by striking ``section 455(e)(8) or the equivalent procedures established under section 493C(c)(2)(B), as applicable'' and inserting ``section 493C(c)(2)''. (3) Effective date.--The amendments made by this subsection shall take effect on July 1, 2028. (d) Repayment Assistance Plan.--Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following new subsection: ``(q) Repayment Assistance Plan.-- ``(1) In general.--Notwithstanding any other provision of this Act, beginning on July 1, 2026, the Secretary shall carry out an income-based repayment plan (to be known as the `Repayment Assistance Plan'), that shall have the following terms and conditions: ``(A) The total monthly repayment amount owed by a borrower for all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan shall be equal to the applicable monthly payment of a borrower calculated under paragraph (4)(B), except that the borrower may not be precluded from repaying an amount that exceeds such amount for any month. ``(B) The Secretary shall apply the borrower's applicable monthly payment under this paragraph first toward interest due on each such loan, next toward any fees due on each loan, and then toward the principal of each loan. ``(C) Any principal due and not paid under subparagraph (B) or paragraph (2)(B) shall be deferred. ``(D) A borrower who is not in a period of deferment or forbearance shall make an applicable monthly payment for each month until the earlier of-- ``(i) the date on which the outstanding balance of principal and interest due on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is $0; or ``(ii) the date on which the borrower has made 360 qualifying monthly payments. ``(E) The Secretary shall cancel any outstanding balance of principal and interest due on a loan made under this part to a borrower-- ``(i) who, for any period of time, participated in the Repayment Assistance Plan under this subsection; ``(ii) whose most recent payment for such loan prior to the loan cancellation under this subparagraph was made under such Repayment Assistance Plan; and ``(iii) who has made 360 qualifying monthly payments on such loan. ``(F) For the purposes of this subsection, the term `qualifying monthly payment' means any of the following: ``(i) An on-time applicable monthly payment under this subsection. ``(ii) An on-time monthly payment under the standard repayment plan under subsection (d)(7)(A)(i) of not less than the monthly payment required under such plan. ``(iii) A monthly payment under any repayment plan (excluding the Repayment Assistance Plan under this subsection) of not less than the monthly payment that would be required under a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years. ``(iv) A monthly payment under section 493C of not less than the monthly payment required under such section, including a monthly payment equal to the minimum payment amount permitted under such section. ``(v) A monthly payment made before July 1, 2028, under an income contingent repayment plan carried out under section 455(d)(1)(D) (or under an alternative repayment plan in lieu of repayment under such an income contingent repayment plan, if placed in such an alternative repayment plan by the Secretary) of not less than the monthly payment required under such a [[Page S3765]] plan, including a monthly payment equal to the minimum payment amount permitted under such a plan. ``(vi) A month when the borrower did not make a payment because the borrower was in deferment under subsection (f)(2)(B) or due to an economic hardship described in subsection (f)(2)(D). ``(vii) A month that ended before the date of enactment of this subsection when the borrower did not make a payment because the borrower was in a period of deferment or forbearance described in section 685.209(k)(4)(iv) of title 34, Code of Federal Regulations (as in effect on the date of enactment of this subsection). ``(G) The procedures established by the Secretary under section 493C(c) shall apply for annually determining the borrower's eligibility for the Repayment Assistance Plan, including verification of a borrower's annual income and the annual amount due on the total amount of loans eligible to be repaid under this subsection, and such other procedures as are necessary to effectively implement income-based repayment under this subsection. With respect to carrying out section 494(a)(2) for the Repayment Assistance Plan, an individual may elect to opt out of the disclosures required under section 494(a)(2)(A)(ii) in accordance with the procedures established under section 493C(c)(2). ``(2) Balance assistance for distressed borrowers.-- ``(A) Interest subsidy.--With respect to a borrower of a loan made under this part, for each month for which such a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment is insufficient to pay the total amount of interest that accrues for the month on all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection, the amount of interest accrued and not paid for the month shall not be charged to the borrower. ``(B) Matching principal payment.--With respect to a borrower of a loan made under this part and not in a period of deferment or forbearance, for each month for which a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment reduces the total outstanding principal balance of all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection by less than $50, the Secretary shall reduce such total outstanding principal balance of the borrower by an amount that is equal to-- ``(i) the amount that is the lesser of-- ``(I) $50; or ``(II) the total amount paid by the borrower for such month pursuant to paragraph (1)(A); minus ``(ii) the total amount paid by the borrower for such month pursuant to paragraph (1)(A) that is applied to such total outstanding principal balance. ``(3) Additional documents.--A borrower who chooses, or is required, to repay a loan under this subsection, and for whom adjusted gross income is unavailable or does not reasonably reflect the borrower's current income, shall provide to the Secretary other documentation of income satisfactory to the Secretary, which documentation the Secretary may use to determine repayment under this subsection. ``(4) Definitions.--In this subsection: ``(A) Adjusted gross income.--The term `adjusted gross income', when used with respect to a borrower, means the adjusted gross income (as such term is defined in section 62 of the Internal Revenue Code of 1986) of the borrower (and the borrower's spouse, as applicable) for the most recent taxable year, except that, in the case of a married borrower who files a separate Federal income tax return, the term does not include the adjusted gross income of the borrower's spouse. ``(B) Applicable monthly payment.-- ``(i) In general.--Except as provided in clause (ii), (iii), or (vi), the term `applicable monthly payment' means, when used with respect to a borrower, the amount equal to-- ``(I) the applicable base payment of the borrower, divided by 12; minus ``(II) $50 for each dependent of the borrower (which, in the case of a married borrower filing a separate Federal income tax return, shall include only each dependent that the borrower claims on that return). ``(ii) Minimum amount.--In the case of a borrower with an applicable monthly payment amount calculated under clause (i) that is less than $10, the applicable monthly payment of the borrower shall be $10. ``(iii) Final payment.--In the case of a borrower whose total outstanding balance of principal and interest on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is less than the applicable monthly payment calculated pursuant to clause (i) or (ii), as applicable, then the applicable monthly payment of the borrower shall be the total outstanding balance of principal and interest on all such loans. ``(iv) Base payment.--The amount of the applicable base payment for a borrower with an adjusted gross income of-- ``(I) not more than $10,000, is $120; ``(II) more than $10,000 and not more than $20,000, is 1 percent of such adjusted gross income; ``(III) more than $20,000 and not more than $30,000, is 2 percent of such adjusted gross income; ``(IV) more than $30,000 and not more than $40,000, is 3 percent of such adjusted gross income; ``(V) more than $40,000 and not more than $50,000, is 4 percent of such adjusted gross income; ``(VI) more than $50,000 and not more than $60,000, is 5 percent of such adjusted gross income; ``(VII) more than $60,000 and not more than $70,000, is 6 percent of such adjusted gross income; ``(VIII) more than $70,000 and not more than $80,000, is 7 percent of such adjusted gross income; ``(IX) more than $80,000 and not more than $90,000, is 8 percent of such adjusted gross income; ``(X) more than $90,000 and not more than $100,000, is 9 percent of such adjusted gross income; and ``(XI) more than $100,000, is 10 percent of such adjusted gross income. ``(v) Dependent.--For the purposes of this paragraph, the term `dependent' means an individual who is a dependent under section 152 of the Internal Revenue Code of 1986. ``(vi) Special rule.--In the case of a borrower who is required by the Secretary to provide information to the Secretary to determine the applicable monthly payment of the borrower under this subparagraph, and who does not comply with such requirement, the applicable monthly payment of the borrower shall be-- ``(I) the sum of the monthly payment amounts the borrower would have paid for each of the borrower's loans made under this part under a standard repayment plan with a fixed monthly repayment amount, paid over a period of 10 years, based on the outstanding principal due on such loan when such loan entered repayment; and ``(II) determined pursuant to this clause until the date on which the borrower provides such information to the Secretary.''. (e) Federal Consolidation Loans.--Section 455(g) of the Higher Education Act of 1965 (20 U.S.C. 1087e(g)) is amended by adding at the end the following new paragraph: ``(3) Consolidation loans made on or after july 1, 2026.--A Federal Direct Consolidation Loan offered to a borrower under this part on or after July 1, 2026, may only be repaid pursuant to a repayment plan described in clause (i) or (ii) of subsection (d)(7)(A) of this section, as applicable, and the repayment schedule of such a Consolidation Loan shall be determined in accordance with such repayment plan.''. (f) Income-Based Repayment.-- (1) Amendments.-- (A) Excepted consolidation loan defined.--Section 493C(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1098e(a)(2)) is amended to read as follows: ``(2) Excepted consolidation loan.-- ``(A) In general.--The term `excepted consolidation loan' means-- ``(i) a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on an excepted PLUS loan; or ``(ii) a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on a consolidation loan under section 428C, or a Federal Direct Consolidation Loan described in clause (i). ``(B) Exclusion.--The term `excepted consolidation loan' does not include a Federal Direct Consolidation Loan described in subparagraph (A) that, on any date during the period beginning on the date of enactment of this subparagraph and ending on June 30, 2028, was being repaid-- ``(i) pursuant to the Income Contingent Repayment (ICR) plan in accordance with section 685.209(b) of title 34, Code of Federal Regulations (as in effect on June 30, 2023); or ``(ii) pursuant to another income driven repayment plan.''. (B) Termination of partial financial hardship eligibility.--Section 493C(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 1098e(a)(3)) is amended to read as follows: ``(3) Applicable amount.--The term `applicable amount' means 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which-- ``(A) the borrower's, and the borrower's spouse's (if applicable), adjusted gross income; exceeds ``(B) 150 percent of the poverty line applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)).''. (C) Terms of income-based repayment.--Section 493C(b) of the Higher Education Act of 1965 (20 U.S.C. 1098e(b)) is amended-- (i) by amending paragraph (1) to read as follows: ``(1) a borrower of any loan made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), may elect to have the borrower's aggregate monthly payment for all such loans not exceed the applicable amount divided by 12;''; (ii) by striking paragraph (6) and inserting the following: ``(6) if the monthly payment amount calculated under this section for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) exceeds the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection (referred to in this paragraph as the `standard monthly repayment amount'), or if the borrower no longer wishes to continue the election under this subsection, then-- [[Page S3766]] ``(A) the maximum monthly payment required to be paid for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) shall be the standard monthly repayment amount; and ``(B) the amount of time the borrower is permitted to repay such loans may exceed 10 years;''; (iii) in paragraph (7)(B)(iv), by inserting ``(as such section was in effect on the day before the date of the repeal of section 455(e)'' after ``section 455(d)(1)(D)''; and (iv) in paragraph (8), by inserting ``or the Repayment Assistance Program under section 455(q)'' after ``standard repayment plan''. (D) Eligibility determinations.--Section 493C(c) of the Higher Education Act of 1965 (20 U.S.C. 1098e(c)) is amended to read as follows: ``(c) Eligibility Determinations; Automatic Recertification.-- ``(1) In general.--The Secretary shall establish procedures for annually determining, in accordance with paragraph (2), the borrower's eligibility for income-based repayment, including the verification of a borrower's annual income and the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), and such other procedures as are necessary to effectively implement income-based repayment under this section. The Secretary shall consider, but is not limited to, the procedures established in accordance with section 455(e)(1) (as in effect on the day before the date of repeal of subsection (e) of section 455) or in connection with income sensitive repayment schedules under section 428(b)(9)(A)(iii) or 428C(b)(1)(E). ``(2) Automatic recertification.-- ``(A) In general.--The Secretary shall establish and implement, with respect to any borrower enrolled in an income-based repayment program under this section or under section 455(q), procedures to-- ``(i) use return information disclosed under section 6103(l)(13) of the Internal Revenue Code of 1986, pursuant to approval provided under section 494, to determine the repayment obligation of the borrower without further action by the borrower; ``(ii) allow the borrower (or the spouse of the borrower), at any time, to opt out of disclosure under such section 6103(l)(13) and instead provide such information as the Secretary may require to determine the repayment obligation of the borrower (or withdraw from the repayment plan under this section or under section 455(q), as the case may be); and ``(iii) provide the borrower with an opportunity to update the return information so disclosed before the determination of the repayment obligation of the borrower. ``(B) Applicability.--Subparagraph (A) shall apply to each borrower of a loan eligible to be repaid under this section or under section 455(q), who, on or after the date on which the Secretary establishes procedures under such subparagraph (A)-- ``(i) selects, or is required to repay such loan pursuant to, an income-based repayment plan under this section or under section 455(q); or ``(ii) recertifies income or family size under such plan.''. (E) Special terms for new borrowers on and after july 1, 2014.--Section 493C(e) of the Higher Education Act of 1965 (20 U.S.C. 1098e(e)) is amended-- (i) in the subsection heading, by inserting ``and Before July 1, 2026'' after ``After July 1, 2014'' ; and (ii) by inserting ``and before July 1, 2026'' after ``after July 1, 2014''. (2) Effective date and application.--The amendments made by this subsection shall take effect on the date of enactment of this title, and shall apply with respect to any borrower who is in repayment before, on, or after the date of enactment of this title. (g) FFEL Adjustment.--Section 428(b)(9)(A)(v) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(9)(A)(v)) is amended by striking ``who has a partial financial hardship''. SEC. 82002. DEFERMENT; FORBEARANCE. (a) Sunset of Economic Hardship and Unemployment Deferments.--Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended-- (1) by striking the subsection heading and inserting the following: ``Deferment; Forbearance''; (2) in paragraph (2)-- (A) in subparagraph (B), by striking ``not in'' and inserting ``subject to paragraph (7), not in'' ; and (B) in subparagraph (D), by striking ``not in'' and inserting ``subject to paragraph (7), not in''; and (3) by adding at the end the following: ``(7) Sunset of unemployment and economic hardship deferments.--A borrower who receives a loan made under this part on or after July 1, 2027, shall not be eligible to defer such loan under subparagraph (B) or (D) of paragraph (2).''. (b) Forbearance on Loans Made Under This Part on or After July 1, 2027.--Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended by adding at the end the following: ``(8) Forbearance on loans made under this part on or after july 1, 2027.--A borrower who receives a loan made under this part on or after July 1, 2027, may only be eligible for a forbearance on such loan pursuant to section 428(c)(3)(B) that does not exceed 9 months during any 24-month period.''. SEC. 82003. LOAN REHABILITATION. (a) Updating Loan Rehabilitation Limits.-- (1) FFEL and direct loans.--Section 428F(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1078-6(a)(5)) is amended by striking ``one time'' and inserting ``two times''. (2) Perkins loans.--Section 464(h)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(h)(1)(D)) is amended by striking ``once'' and inserting ``twice''. (3) Effective date.--The amendments made by this subsection shall take effect beginning on July 1, 2027, and shall apply with respect to any loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.). (b) Minimum Monthly Payment Amount.--Section 428F(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1078- 6(a)(1)(B)) is amended by adding at the end the following: ``With respect to a borrower who has 1 or more loans made under part D on or after July 1, 2027 that are described in subparagraph (A), the total monthly payment of the borrower for all such loans shall not be less than $10.''. SEC. 82004. PUBLIC SERVICE LOAN FORGIVENESS. Section 455(m)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(1)(A)) is amended-- (1) in clause (iii), by striking ``; or'' and inserting a semicolon; (2) in clause (iv), by striking ``; and'' and inserting ``(as in effect on the day before the date of the repeal of subsection (e) of this section); or''; and (3) by adding at the end the following new clause: ``(v) on-time payments under the Repayment Assistance Plan under subsection (q); and''. SEC. 82005. STUDENT LOAN SERVICING. Paragraph (1) of section 458(a) of the Higher Education Act of 1965 (20 U.S.C. 1087h(a)(1)) is amended to read as follows: ``(1) Additional mandatory funds for servicing.--There shall be available to the Secretary (in addition to any other amounts appropriated under any appropriations Act for administrative costs under this part and part B and out of any money in the Treasury not otherwise appropriated) $1,000,000,000 to be obligated for administrative costs under this part and part B, including the costs of servicing the direct student loan programs under this part, which shall remain available until expended.''. Subtitle D--Pell Grants SEC. 83001. ELIGIBILITY. (a) Foreign Income and Federal Pell Grant Eligibility.-- (1) Adjusted gross income defined.--Section 401(a)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A)) is amended to read as follows: ``(A) the term `adjusted gross income' means-- ``(i) in the case of a dependent student, for the second tax year preceding the academic year-- ``(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student's parents; plus ``(II) for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student's parents; and ``(ii) in the case of an independent student, for the second tax year preceding the academic year-- ``(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student (and the student's spouse, if applicable); plus ``(II) for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student (and the student's spouse, if applicable);''. (2) Sunset.--Section 401(b)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended-- (A) by striking ``A student'' and inserting ``For each academic year beginning before July 1, 2026, a student''; and (B) by inserting ``, as in effect for such academic year,'' after ``section 479A(b)(1)(B)(v)''. (3) Conforming amendments.-- (A) In general.--Section 479A(b)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is amended-- (i) by striking clause (v); and (ii) by redesignating clauses (vi) and (vii) as clauses (v) and (vi), respectively. (B) Effective date.--The amendment made by subparagraph (A) shall take effect on July 1, 2026. (b) Federal Pell Grant Ineligibility Due to a High Student Aid Index.-- (1) In general.--Section 401(b)(1) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)) is amended by adding at the end the following: ``(F) Ineligibility of students with a high student aid index.--Notwithstanding subparagraphs (A) through (E), a student shall not be eligible for a Federal Pell Grant under this subsection for an academic year in which the student has a student aid index that equals or exceeds twice the amount of the total maximum Federal Pell Grant for such academic year.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect on July 1, 2026. [[Page S3767]] SEC. 83002. WORKFORCE PELL GRANTS. (a) In General.--Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) is amended by adding at the end the following: ``(k) Workforce Pell Grant Program.-- ``(1) In general.--For the award year beginning on July 1, 2026, and each subsequent award year, the Secretary shall award grants (to be known as `Workforce Pell Grants') to eligible students under paragraph (2) in accordance with this subsection. ``(2) Eligible students.--To be eligible to receive a Workforce Pell Grant under this subsection for any period of enrollment, a student shall meet the eligibility requirements for a Federal Pell Grant under this section, except that the student-- ``(A) shall be enrolled, or accepted for enrollment, in an eligible program under section 481(b)(3) (hereinafter referred to as an `eligible workforce program'); and ``(B) may not-- ``(i) be enrolled, or accepted for enrollment, in a program of study that leads to a graduate credential; or ``(ii) have attained such a credential. ``(3) Terms and conditions of awards.--The Secretary shall award Workforce Pell Grants under this subsection in the same manner and with the same terms and conditions as the Secretary awards Federal Pell Grants under this section, except that-- ``(A) each use of the term `eligible program' (except in subsection (b)(9)(A)) shall be substituted by `eligible workforce program under section 481(b)(3)'; ``(B) the provisions of subsection (d)(2) shall not be applicable to eligible workforce programs; and ``(C) a student who is eligible for a grant equal to less than the amount of the minimum Federal Pell Grant because the eligible workforce program in which the student is enrolled or accepted for enrollment is less than an academic year (in hours of instruction or weeks of duration) may still be eligible for a Workforce Pell Grant in an amount that is prorated based on the length of the program. ``(4) Prevention of double benefits.--No eligible student described in paragraph (2) may concurrently receive a grant under both this subsection and-- ``(A) subsection (b); or ``(B) subsection (c). ``(5) Duration limit.--Any period of study covered by a Workforce Pell Grant awarded under this subsection shall be included in determining a student's duration limit under subsection (d)(5).''. (b) Program Eligibility for Workforce Pell Grants.--Section 481(b) of the Higher Education Act of 1965 (20 U.S.C. 1088(b)) is amended-- (1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and (2) by inserting after paragraph (2) the following: ``(3)(A) A program is an eligible program for purposes of the Workforce Pell Grant program under section 401(k) only if-- ``(i) it is a program of at least 150 clock hours of instruction, but less than 600 clock hours of instruction, or an equivalent number of credit hours, offered by an eligible institution during a minimum of 8 weeks, but less than 15 weeks; ``(ii) it is not offered as a correspondence course, as defined in 600.2 of title 34, Code of Federal Regulations (as in effect on July 1, 2021); ``(iii) the Governor of a State, after consultation with the State board, determines that the program-- ``(I) provides an education aligned with the requirements of high-skill, high-wage (as identified by the State pursuant to section 122 of the Carl D. Perkins Career and Technical Education Act (20 U.S.C. 2342)), or in-demand industry sectors or occupations; ``(II) meets the hiring requirements of potential employers in the sectors or occupations described in subclause (I); ``(III) either-- ``(aa) leads to a recognized postsecondary credential that is stackable and portable across more than one employer; or ``(bb) with respect to students enrolled in the program-- ``(AA) prepares such students for employment in an occupation for which there is only one recognized postsecondary credential; and ``(BB) provides such students with such a credential upon completion of such program; and ``(IV) prepares students to pursue 1 or more certificate or degree programs at 1 or more institutions of higher education (which may include the eligible institution providing the program), including by ensuring-- ``(aa) that a student, upon completion of the program and enrollment in such a related certificate or degree program, will receive academic credit for the Workforce Pell program that will be accepted toward meeting such certificate or degree program requirements; and ``(bb) the acceptability of such credit toward meeting such certificate or degree program requirements; and ``(iv) after the Governor of such State makes the determination that the program meets the requirements under clause (iii), the Secretary determines that-- ``(I) the program has been offered by the eligible institution for not less than 1 year prior to the date on which the Secretary makes a determination under this clause; ``(II) for each award year, the program has a verified completion rate of at least 70 percent, within 150 percent of the normal time for completion; ``(III) for each award year, the program has a verified job placement rate of at least 70 percent, measured 180 days after completion; and ``(IV) for each award year, the total amount of the published tuition and fees of the program for such year is an amount that does not exceed the value-added earnings of students who received Federal financial aid under this title and who completed the program 3 years prior to the award year, as such earnings are determined by calculating the difference between-- ``(aa) the median earnings of such students, as adjusted by the State and metropolitan area regional price parities of the Bureau of Economic Analysis based on the location of such program; and ``(bb) 150 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)) for such year. ``(B) In this paragraph: ``(i) The term `eligible institution' means an eligible institution for purposes of section 401. ``(ii) The term `Governor' means the chief executive of a State. ``(iii) The terms `in-demand industry sector or occupation', `recognized postsecondary credential', and `State board' have the meanings given such terms in section 3 of the Workforce Innovation and Opportunity Act.''. (c) Effective Date; Applicability.--The amendments made by this section shall take effect on July 1, 2026, and shall apply with respect to award year 2026-2027 and each succeeding award year. SEC. 83003. PELL SHORTFALL. Section 401(b)(7)(A)(iii) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(7)(A)(iii)) is amended by striking ``$2,170,000,000'' and inserting ``$12,670,000,000''. SEC. 83004. FEDERAL PELL GRANT EXCLUSION RELATING TO OTHER GRANT AID. Section 401(d) of the Higher Education Act of 1965 (20 U.S.C. 1070a(d)) is amended by adding at the end the following: ``(6) Exclusion.--Beginning on July 1, 2026, and notwithstanding this subsection or subsection (b), a student shall not be eligible for a Federal Pell Grant under subsection (b) during any period for which the student receives grant aid from non-Federal sources, including States, institutions of higher education, or private sources, in an amount that equals or exceeds the student's cost of attendance for such period.''. Subtitle E--Accountability SEC. 84001. INELIGIBILITY BASED ON LOW EARNING OUTCOMES. Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d) is amended-- (1) in subsection (a)-- (A) in paragraph (5), by striking ``and'' after the semicolon; (B) by redesignating paragraph (6) as paragraph (7); and (C) by inserting after paragraph (5) the following: ``(6) provide assurances that, beginning July 1, 2026, the institution will comply with all requirements of subsection (c); and''; (2) in subsection (b)(2), by striking ``and (6)'' and inserting ``(6), and (7)''; (3) by redesignating subsection (c) as subsection (d); and (4) by inserting after subsection (b) the following: ``(c) Ineligibility for Certain Programs Based on Low Earning Outcomes.-- ``(1) In general.--Notwithstanding section 481(b), an institution of higher education subject to this subsection shall not use funds under this part for student enrollment in an educational program offered by the institution that is described in paragraph (2). ``(2) Low-earning outcome programs described.--An educational program at an institution is described in this paragraph if the program awards an undergraduate degree, graduate or professional degree, or graduate certificate, for which the median earnings (as determined by the Secretary) of the programmatic cohort of students who received funds under this title for enrollment in such program, who completed such program during the academic year that is 4 years before the year of the determination, who are not enrolled in any institution of higher education, and who are working, are, for not less than 2 of the 3 years immediately preceding the date of the determination, less than the median earnings of a working adult described in paragraph (3) for the corresponding year. ``(3) Calculation of median earnings.-- ``(A) Working adult.--For purposes of applying paragraph (2) to an educational program at an institution, a working adult described in this paragraph is a working adult who, for the corresponding year-- ``(i) is aged 25 to 34; ``(ii) is not enrolled in an institution of higher education; and ``(iii)(I) in the case of a determination made for an educational program that awards a baccalaureate or lesser degree, has only a high school diploma or its recognized equivalent; or ``(II) in the case of a determination made for a graduate or professional program, has only a baccalaureate degree. ``(B) Source of data.--For purposes of applying paragraph (2) to an educational program at an institution, the median earnings [[Page S3768]] of a working adult, as described in subparagraph (A), shall be based on data from the Bureau of the Census-- ``(i) with respect to an educational program that awards a baccalaureate or lesser degree-- ``(I) for the State in which the institution is located; or ``(II) if fewer than 50 percent of the students enrolled in the institution reside in the State where the institution is located, for the entire United States; and ``(ii) with respect to an educational program that is a graduate or professional program-- ``(I) for the lowest median earnings of-- ``(aa) a working adult in the State in which the institution is located; ``(bb) a working adult in the same field of study (as determined by the Secretary, such as by using the 2-digit CIP code) in the State in which the institution is located; and ``(cc) a working adult in the same field of study (as so determined) in the entire United States; or ``(II) if fewer than 50 percent of the students enrolled in the institution reside in the State where the institution is located, for the lower median earnings of-- ``(aa) a working adult in the entire United States; or ``(bb) a working adult in the same field of study (as so determined) in the entire United States. ``(4) Small programmatic cohorts.--For any year for which the programmatic cohort described in paragraph (2) for an educational program of an institution is fewer than 30 individuals, the Secretary shall-- ``(A) first, aggregate additional years of programmatic data in order to achieve a cohort of at least 30 individuals; and ``(B) second, in cases in which the cohort (including the individuals added under subparagraph (A)) is still fewer than 30 individuals, aggregate additional cohort years of programmatic data for educational programs of equivalent length in order to achieve a cohort of at least 30 individuals. ``(5) Appeals process.--An educational program shall not lose eligibility under this subsection unless the institution has had the opportunity to appeal the programmatic median earnings of students working and not enrolled determination under paragraph (2), through a process established by the Secretary. During such appeal, the Secretary may permit the educational program to continue to participate in the program under this part. ``(6) Notice to students.-- ``(A) In general.--If an educational program of an institution of higher education subject to this subsection does not meet the cohort median earning requirements, as described in paragraph (2), for one year during the applicable covered period but has not yet failed to meet such requirements for 2 years during such covered period, the institution shall promptly inform each student enrolled in the educational program of the eligible program's low cohort median earnings and that the educational program is at risk of losing its eligibility for funds under this part. ``(B) Covered period.--In this paragraph, the term `covered period' means the period of the 3 years immediately preceding the date of a determination made under paragraph (2). ``(7) Regaining programmatic eligibility.--The Secretary shall establish a process by which an institution of higher education that has an educational program that has lost eligibility under this subsection may, after a period of not less than 2 years of such program's ineligibility, apply to regain such eligibility, subject to the requirements established by the Secretary that further the purpose of this subsection.''. Subtitle F--Regulatory Relief SEC. 85001. DELAY OF RULE RELATING TO BORROWER DEFENSE TO REPAYMENT. (a) Delay.--Beginning on the date of enactment of this section, for loans that first originate before July 1, 2035, the provisions of subpart D of part 685 of title 34, Code of Federal Regulations (relating to borrower defense to repayment), as added or amended by the final regulations published by the Department of Education on November 1, 2022, and titled ``Institutional Eligibility Under the Higher Education Act of 1965, as Amended; Student Assistance General Provisions; Federal Perkins Loan Program; Federal Family Education Loan Program; and William D. Ford Federal Direct Loan Program'' (87 Fed. Reg. 65904) shall not be in effect. (b) Effect.--Beginning on the date of enactment of this section, with respect to loans that first originate before July 1, 2035, any regulations relating to borrower defense to repayment that took effect on July 1, 2020, are restored and revived as such regulations were in effect on such date. SEC. 85002. DELAY OF RULE RELATING TO CLOSED SCHOOL DISCHARGES. (a) Delay.--Beginning on the date of enactment of this section, for loans that first originate before July 1, 2035, the provisions of sections 674.33(g), 682.402(d), and 685.214 of title 34, Code of Federal Regulations (relating to closed school discharges), as added or amended by the final regulations published by the Department of Education on November 1, 2022, and titled ``Institutional Eligibility Under the Higher Education Act of 1965, as Amended; Student Assistance General Provisions; Federal Perkins Loan Program; Federal Family Education Loan Program; and William D. Ford Federal Direct Loan Program'' (87 Fed. Reg. 65904), shall not be in effect. (b) Effect.--Beginning on the date of enactment of this section, with respect to loans that first originate before July 1, 2035, the portions of the Code of Federal Regulations described in subsection (a) and amended by the final regulations described in subsection (a) shall be in effect as if the amendments made by such final regulations had not been made. Subtitle G--Limitation on Authority SEC. 86001. LIMITATION ON PROPOSING OR ISSUING REGULATIONS AND EXECUTIVE ACTIONS. Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended by inserting after section 492 the following: ``SEC. 492A. LIMITATION ON PROPOSING OR ISSUING REGULATIONS AND EXECUTIVE ACTIONS. ``(a) Proposed or Final Regulations and Executive Actions.--Beginning on the date of enactment of this section, the Secretary may not issue a proposed regulation, final regulation, or executive action to implement this title if the Secretary determines that the regulation or executive action will increase the subsidy cost (as `cost' is defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of a loan program under this title by more than $100,000,000. ``(b) Relationship to Other Requirements.--The requirements of subsection (a) shall not be construed to affect any other cost analysis required under any source of law for a regulation implementing this title.''. Subtitle H--Garden of Heroes SEC. 87001. GARDEN OF HEROES. In addition to amounts otherwise available, there are appropriated to the National Endowment for the Humanities for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available through fiscal year 2028, $40,000,000 for the procurement of statues as described in Executive Order 13934 (85 Fed. Reg. 41165; relating to building and rebuilding monuments to American heroes), Executive Order 13978 (86 Fed. Reg. 6809; relating to building the National Garden of American Heroes), and Executive Order 14189 (90 Fed. Reg. 8849; relating to celebrating America's birthday). Subtitle I--Office of Refugee Resettlement SEC. 88001. POTENTIAL SPONSOR VETTING FOR UNACCOMPANIED ALIEN CHILDREN APPROPRIATION. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Office of Refugee Resettlement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until September 30, 2028, for the purposes described in subsection (b). (b) Use of Funds.--The funds made available under subsection (a) may only be used for the Office of Refugee Resettlement to support costs associated with-- (1) background checks on potential sponsors, which shall include-- (A) the name of the potential sponsor and of all adult residents of the potential sponsor's household; (B) the social security number or tax payer identification number of the potential sponsor and of all adult residents of the potential sponsor's household; (C) the date of birth of the potential sponsor and of all adult residents of the potential sponsor's household; (D) the validated location of the residence at which the unaccompanied alien child will be placed; (E) an in-person or virtual interview with, and suitability study concerning, the potential sponsor and all adult residents of the potential sponsor's household; (F) contact information for the potential sponsor and for all adult residents of the potential sponsor's household; and (G) the results of all background and criminal records checks for the potential sponsor and for all adult residents of the potential sponsor's household, which shall include, at a minimum, an investigation of the public records sex offender registry, a public records background check, and a national criminal history check based on fingerprints; (2) home studies of potential sponsors of unaccompanied alien children; (3) determining whether an unaccompanied alien child poses a danger to self or others by conducting an examination of the unaccompanied alien child for gang-related tattoos and other gang-related markings and covering such tattoos or markings while the child is in the care of the Office of Refugee Resettlement; (4) data systems improvement and sharing that supports the health, safety, and well being of unaccompanied alien children by determining the appropriateness of potential sponsors of unaccompanied alien children and of adults residing in the household of the potential sponsor and by assisting with the identification and investigation of child labor exploitation and child trafficking; and (5) coordinating and communicating with State child welfare agencies regarding the placement of unaccompanied alien children in such States by the Office of Refugee Resettlement. (c) Definitions.--In this section: (1) Potential sponsor.--The term ``potential sponsor'' means an individual or entity who applies for the custody of an unaccompanied alien child. [[Page S3769]] (2) Unaccompanied alien child.--The term ``unaccompanied alien child'' has the meaning given such term in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g)). TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS Subtitle A--Homeland Security Provisions SEC. 90001. BORDER INFRASTRUCTURE AND WALL SYSTEM. In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $46,550,000,000 for necessary expenses relating to the following elements of the border infrastructure and wall system: (1) Construction, installation, or improvement of new or replacement primary, waterborne, and secondary barriers. (2) Access roads. (3) Barrier system attributes, including cameras, lights, sensors, and other detection technology. (4) Any work necessary to prepare the ground at or near the border to allow U.S. Customs and Border Protection to conduct its operations, including the construction and maintenance of the barrier system. SEC. 90002. U.S. CUSTOMS AND BORDER PROTECTION PERSONNEL, FLEET VEHICLES, AND FACILITIES. (a) In General.--In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, the following: (1) Personnel.--$4,100,000,000, to remain available until September 30, 2029, to hire and train additional Border Patrol agents, Office of Field Operations officers, Air and Marine agents, rehired annuitants, and U.S. Customs and Border Protection field support personnel. (2) Retention, hiring, and performance bonuses.-- $2,052,630,000, to remain available until September 30, 2029, to provide recruitment bonuses, performance awards, or annual retention bonuses to eligible Border Patrol agents, Office of Field Operations officers, and Air and Marine agents. (3) Vehicles.--$855,000,000, to remain available until September 30, 2029, for the repair of existing patrol units and the lease or acquisition of additional patrol units. (4) Facilities.--$5,000,000,000 for necessary expenses relating to lease, acquisition, construction, design, or improvement of facilities and checkpoints owned, leased, or operated by U.S. Customs and Border Protection. (b) Restriction.--None of the funds made available by subsection (a) may be used to recruit, hire, or train personnel for the duties of processing coordinators after October 31, 2028. SEC. 90003. DETENTION CAPACITY. (a) In General.--In addition to any amounts otherwise appropriated, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $45,000,000,000, for single adult alien detention capacity and family residential center capacity. (b) Duration and Standards.--Aliens may be detained at family residential centers, as described in subsection (a), pending a decision, under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), on whether the aliens are to be removed from the United States and, if such aliens are ordered removed from the United States, until such aliens are removed. The detention standards for the single adult detention capacity described in subsection (a) shall be set in the discretion of the Secretary of Homeland Security, consistent with applicable law. (c) Definition of Family Residential Center.--In this section, the term ``family residential center'' means a facility used by the Department of Homeland Security to detain family units of aliens (including alien children who are not unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g)))) who are encountered or apprehended by the Department of Homeland Security, regardless whether the facility is licensed by the State or a political subdivision of the State in which the facility is located. SEC. 90004. BORDER SECURITY, TECHNOLOGY, AND SCREENING. (a) In General.--In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $6,168,000,000 for the following: (1) Procurement and integration of new nonintrusive inspection equipment and associated civil works, including artificial intelligence, machine learning, and other innovative technologies, as well as other mission support, to combat the entry or exit of illicit narcotics at ports of entry and along the southwest, northern, and maritime borders. (2) Air and Marine operations' upgrading and procurement of new platforms for rapid air and marine response capabilities. (3) Upgrades and procurement of border surveillance technologies along the southwest, northern, and maritime borders. (4) Necessary expenses, including the deployment of technology, relating to the biometric entry and exit system under section 7208 of the Intelligence Reform and Terrorism Prevention Act of 2004 (8 U.S.C. 1365b). (5) Screening persons entering or exiting the United States. (6) Initial screenings of unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))), consistent with the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 (Public Law 110-457; 122 Stat. 5044). (7) Enhancing border security by combating drug trafficking, including fentanyl and its precursor chemicals, at the southwest, northern, and maritime borders. (8) Commemorating efforts and events related to border security. (b) Restrictions.--None of the funds made available under subsection (a) may be used for the procurement or deployment of surveillance towers along the southwest border and northern border that have not been tested and accepted by U.S. Customs and Border Protection to deliver autonomous capabilities. (c) Definition of Autonomous.--In this section, with respect to capabilities, the term ``autonomous'' means a system designed to apply artificial intelligence, machine learning, computer vision, or other algorithms to accurately detect, identify, classify, and track items of interest in real time such that the system can make operational adjustments without the active engagement of personnel or continuous human command or control. SEC. 90005. STATE AND LOCAL ASSISTANCE. (a) State Homeland Security Grant Programs.-- (1) In general.--In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, to be administered under the State Homeland Security Grant Program authorized under section 2004 of the Homeland Security Act of 2002 (6 U.S.C. 605), to enhance State, local, and Tribal security through grants, contracts, cooperative agreements, and other activities-- (A) $500,000,000 for State and local capabilities to detect, identify, track, or monitor threats from unmanned aircraft systems (as such term is defined in section 44801 of title 49, United States Code), consistent with titles 18 and 49 of the United States Code; (B) $625,000,000 for security and other costs related to the 2026 FIFA World Cup; (C) $1,000,000,000 for security, planning, and other costs related to the 2028 Olympics; and (D) $450,000,000 for the Operation Stonegarden Grant Program. (2) Terms and conditions.--None of the funds made available under subparagraph (B) or (C) of paragraph (1) shall be subject to the requirements of section 2004(e)(1) or section 2008(a)(12) of the Homeland Security Act of 2002 (6 U.S.C. 605(e)(1), 609(a)(12)). (b) State Border Security Reinforcement Fund.-- (1) Establishment.--There is established, in the Department of Homeland Security, a fund to be known as the ``State Border Security Reinforcement Fund.'' (2) Purposes.--The Secretary of Homeland Security shall use amounts appropriated or otherwise made available for the Fund for grants to eligible States and units of local government for any of the following purposes: (A) Construction or installation of a border wall, border fencing or other barrier, or buoys along the southern border of the United States, which may include planning, procurement of materials, and personnel costs related to such construction or installation. (B) Any work necessary to prepare the ground at or near land borders to allow construction and maintenance of a border wall or other barrier fencing. (C) Detection and interdiction of illicit substances and aliens who have unlawfully entered the United States and have committed a crime under Federal, State, or local law, and transfer or referral of such aliens to the Department of Homeland Security as provided by law. (D) Relocation of aliens who are unlawfully present in the United States from small population centers to other domestic locations. (3) Appropriation.--In addition to amounts otherwise available for the purposes described in paragraph (2), there is appropriated for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to the Department of Homeland Security for the State Border Security Reinforcement Fund established by paragraph (1), $10,000,000,000, to remain available until September 30, 2034, for qualified expenses for such purposes. (4) Eligibility.--The Secretary of Homeland Security may provide grants from the fund established by paragraph (1) to State agencies and units of local governments for expenditures made for completed, ongoing, or new activities, in accordance with law, that occurred on or after January 20, 2021. (5) Application.--Each State desiring to apply for a grant under this subsection shall submit an application to the Secretary containing such information in support of the application as the Secretary may require. The Secretary shall require that each State include in its application the purposes for which the State seeks the funds and a description of how the State plans to allocate [[Page S3770]] the funds. The Secretary shall begin to accept applications not later than 90 days after the date of the enactment of this Act. (6) Terms and conditions.--Nothing in this subsection shall authorize any State or local government to exercise immigration or border security authorities reserved exclusively to the Federal Government under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.) or the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.). The Federal Emergency Management Agency may use not more than 1 percent of the funds made available under this subsection for the purpose of administering grants provided for in this section. SEC. 90006. PRESIDENTIAL RESIDENCE PROTECTION. (a) In General.--In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until September 30, 2029, for the reimbursement of extraordinary law enforcement personnel costs for protection activities directly and demonstrably associated with any residence of the President designated pursuant to section 3 or 4 of the Presidential Protection Assistance Act of 1976 (Public Law 94-524; 18 U.S.C. 3056 note) to be secured by the United States Secret Service. (b) Availability.--Funds appropriated under this section shall be available only for costs that a State or local agency-- (1) incurred or incurs on or after July 1, 2024; (2) demonstrates to the Administrator of the Federal Emergency Management Agency as being-- (A) in excess of typical law enforcement operation costs; (B) directly attributable to the provision of protection described in this section; and (C) associated with a nongovernmental property designated pursuant to section 3 or 4 of the Presidential Protection Assistance Act of 1976 (Public Law 94-524; 18 U.S.C. 3056 note) to be secured by the United States Secret Service; and (3) certifies to the Administrator as compensating protection activities requested by the United States Secret Service. (c) Terms and Conditions.--The Federal Emergency Management Agency may use not more than 3 percent of the funds made available under this section for the purpose of administering grants provided for in this section. SEC. 90007. DEPARTMENT OF HOMELAND SECURITY APPROPRIATIONS FOR BORDER SUPPORT. In addition to amounts otherwise available, there are appropriated to the Secretary of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000,000, to remain available until September 30, 2029, for reimbursement of costs incurred in undertaking activities in support of the Department of Homeland Security's mission to safeguard the borders of the United States. Subtitle B--Governmental Affairs Provisions SEC. 90101. FEHB IMPROVEMENTS. (a) Short Title.--This section may be cited as the ``FEHB Protection Act of 2025''. (b) Definitions.--In this section: (1) Director.--The term ``Director'' means the Director of the Office of Personnel Management. (2) Health benefits plan; member of family.--The terms ``health benefits plan'' and ``member of family'' have the meanings given those terms in section 8901 of title 5, United States Code. (3) Open season.--The term ``open season'' means an open season described in section 890.301(f) of title 5, Code of Federal Regulations, or any successor regulation. (4) Program.--The term ``Program'' means the health insurance programs carried out under chapter 89 of title 5, United States Code, including the program carried out under section 8903c of that title. (5) Qualifying life event.--The term ``qualifying life event'' has the meaning given the term in section 892.101 of title 5, Code of Federal Regulations, or any successor regulation. (c) Verification Requirements.--Not later than 1 year after the date of enactment of this Act, the Director shall issue regulations and implement a process to verify-- (1) the veracity of any qualifying life event through which an enrollee in the Program seeks to add a member of family with respect to the enrollee to a health benefits plan under the Program; and (2) that, when an enrollee in the Program seeks to add a member of family with respect to the enrollee to the health benefits plan of the enrollee under the Program, including during any open season, the individual so added is a qualifying member of family with respect to the enrollee. (d) Fraud Risk Assessment.--In any fraud risk assessment conducted with respect to the Program on or after the date of enactment of this Act, the Director shall include an assessment of individuals who are enrolled in, or covered under, a health benefits plan under the Program even though those individuals are not eligible to be so enrolled or covered. (e) Family Member Eligibility Verification Audit.-- (1) In general.--During the 3-year period beginning on the date that is 1 year after the date of enactment of this Act, the Director shall carry out a comprehensive audit regarding members of family who are covered under an enrollment in a health benefits plan under the Program. (2) Contents.--With respect to the audit carried out under paragraph (1), the Director shall review marriage certificates, birth certificates, and other appropriate documents that are necessary to determine eligibility to enroll in a health benefits plan under the Program. (f) Disenrollment or Removal.--Not later than 180 days after the date of enactment of this Act, the Director shall develop a process by which any individual enrolled in, or covered under, a health benefits plan under the Program who is not eligible to be so enrolled or covered shall be disenrolled or removed from enrollment in, or coverage under, that health benefits plan. (g) Earned Benefits and Health Care Administrative Services Associated Oversight and Audit Funding.--Section 8909 of title 5, United States Code, is amended-- (1) in subsection (a)(2), by inserting before the period at the end the following: ``, except that the amounts required to be set aside under subsection (b)(2) shall not be subject to the limitations that may be specified annually by Congress''; and (2) in subsection (b)-- (A) by redesignating paragraph (2) as paragraph (3); and (B) by inserting after paragraph (1) the following: ``(2) In fiscal year 2026, $66,000,000, to be derived from all contributions, and to remain available until the end of fiscal year 2035, for the Director of the Office to carry out subsections (c) through (f) of the FEHB Protection Act of 2025.''. SEC. 90102. PANDEMIC RESPONSE ACCOUNTABILITY COMMITTEE. (a) Pandemic Response Accountability Committee Funding Availability.--In addition to amounts otherwise available, there is appropriated for fiscal year 2026, out of any money in the Treasury not otherwise appropriated, $88,000,000, to remain available until expended, for the Pandemic Response Accountability Committee to support oversight of the Coronavirus response and of funds provided in this Act or any other Act pertaining to the Coronavirus pandemic. (b) CARES Act.--Section 15010 of the CARES Act (Public Law 116-136; 134 Stat. 533) is amended-- (1) in subsection (a)(6)-- (A) in subparagraph (E), by striking ``or'' at the end; (B) in subparagraph (F), by striking ``and'' at the end and inserting ``or''; and (C) by adding at the end the following: ``(G) the Act titled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14'; and''; and (2) in subsection (k), by striking ``2025'' and inserting ``2034''. SEC. 90103. APPROPRIATION FOR THE OFFICE OF MANAGEMENT AND BUDGET. In addition to amounts otherwise available, there is appropriated to the Office of Management and Budget for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2029, 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 SEC. 100001. APPLICABILITY OF THE IMMIGRATION LAWS. (a) Applicability.--The fees under this subtitle shall apply to aliens in the circumstances described in this subtitle. (b) Terms.--The terms used under this subtitle shall have the meanings given such terms in section 101 of the Immigration and Nationality Act (8 U.S.C. 1101). (c) References to Immigration and Nationality Act.--Except as otherwise expressly provided, any reference in this subtitle to a section or other provision shall be considered to be to a section or other provision of the Immigration and Nationality Act (8 U.S.C. 1101 et seq.). SEC. 100002. ASYLUM FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security or the Attorney General, as applicable, shall require the payment of a fee, equal to the amount specified in this section, by any alien who files an application for asylum under section 208 (8 U.S.C. 1158) at the time such application is filed. (b) Initial Amount.--During fiscal year 2025, the amount specified in this section shall be the greater of-- (1) $100; or (2) such amount as the Secretary or the Attorney General, as applicable, may establish, by rule. (c) Annual Adjustments for Inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (1) the amount of the fee required under this section for the most recently concluded fiscal year; and (2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (d) Disposition of Asylum Fee Proceeds.--During each fiscal year-- [[Page S3771]] (1) 50 percent of the fees received from aliens filing applications with the Attorney General-- (A) shall be credited to the Executive Office for Immigration Review; and (B) may be retained and expended without further appropriation; (2) 50 percent of fees received from aliens filing applications with the Secretary of Homeland Security-- (A) shall be credited to U.S. Citizenship and Immigration Services; (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended without further appropriation; and (3) any amounts received in fees required under this section that were not credited to the Executive Office for Immigration Review pursuant to paragraph (1) or to U.S. Citizenship and Immigration Services pursuant to paragraph (2) shall be deposited into the general fund of the Treasury. (e) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100003. EMPLOYMENT AUTHORIZATION DOCUMENT FEES. (a) Asylum Applicants.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien who files an initial application for employment authorization under section 208(d)(2) (8 U.S.C. 1158(d)(2)) at the time such initial employment authorization application is filed. (2) Initial amount.--During fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $550; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this section for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (4) Disposition of employment authorization document fees.--During each fiscal year-- (A) 25 percent of the fees collected pursuant to this subsection-- (i) shall be credited to U.S. Citizenship and Immigration Services; (ii) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (iii) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation, provided that not less than 50 percent is used to detect and prevent immigration benefit fraud; and (B) any amounts collected pursuant to this subsection that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. (b) Parolees.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien paroled into the United States for any initial application for employment authorization at the time such initial application is filed. Each initial employment authorization shall be valid for a period of 1 year or for the duration of the alien's parole, whichever is shorter. (2) Initial amount.--During fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $550; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (4) Disposition of parolee employment authorization application fees.--All of the fees collected pursuant to this subsection shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. (c) Temporary Protected Status.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien who files an initial application for employment authorization under section 244(a)(1)(B) (8 U.S.C. 1254a(a)(1)(B)) at the time such initial application is filed. Each initial employment authorization shall be valid for a period of 1 year, or for the duration of the alien's temporary protected status, whichever is shorter. (2) Initial amount.--During fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $550; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (4) Disposition of employment authorization application fees collected from aliens granted temporary protected status.--All of the fees collected pursuant to this subsection shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. SEC. 100004. IMMIGRATION PAROLE FEE. (a) In General.--Except as provided under subsection (b), the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this section and in addition to any other fee authorized by law, by any alien who is paroled into the United States. (b) Exceptions.--An alien shall not be subject to the fee otherwise required under subsection (a) if the alien establishes, to the satisfaction of the Secretary of Homeland Security, on an individual, case-by-case basis, that the alien is being paroled because-- (1)(A) the alien has a medical emergency; and (B)(i) the alien cannot obtain necessary treatment in the foreign state in which the alien is residing; or (ii) the medical emergency is life-threatening and there is insufficient time for the alien to be admitted to the United States through the normal visa process; (2)(A) the alien is the parent or legal guardian of an alien described in paragraph (1); and (B) the alien described in paragraph (1) is a minor; (3)(A) the alien is needed in the United States to donate an organ or other tissue for transplant; and (B) there is insufficient time for the alien to be admitted to the United States through the normal visa process; (4)(A) the alien has a close family member in the United States whose death is imminent; and (B) the alien could not arrive in the United States in time to see such family member alive if the alien were to be admitted to the United States through the normal visa process; (5)(A) the alien is seeking to attend the funeral of a close family member; and (B) the alien could not arrive in the United States in time to attend such funeral if the alien were to be admitted to the United States through the normal visa process; (6) the alien is an adopted child-- (A) who has an urgent medical condition; (B) who is in the legal custody of the petitioner for a final adoption-related visa; and (C) whose medical treatment is required before the expected award of a final adoption-related visa; (7) the alien-- (A) is a lawful applicant for adjustment of status under section 245 (8 U.S.C. 1255); and (B) is returning to the United States after temporary travel abroad; (8) the alien-- (A) has been returned to a contiguous country pursuant to section 235(b)(2)(C) (8 U.S.C. 1225(b)(2)(C)); and (B) is being paroled into the United States to allow the alien to attend the alien's immigration hearing; (9) the alien has been granted the status of Cuban and Haitian entrant (as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422; 8 U.S.C. 1522 note); or (10) the Secretary of Homeland Security determines that a significant public benefit has resulted or will result from the parole of an alien-- (A) who has assisted or will assist the United States Government in a law enforcement matter; (B) whose presence is required by the United States Government in furtherance of such law enforcement matter; and (C)(i) who is inadmissible or does not satisfy the eligibility requirements for admission as a nonimmigrant; or (ii) for which there is insufficient time for the alien to be admitted to the United States through the normal visa process. [[Page S3772]] (c) Initial Amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (1) $1,000; or (2) such amount as the Secretary of Homeland Security may establish, by rule. (d) Annual Adjustments for Inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (1) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (e) Disposition of Fees Collected From Aliens Granted Parole.--All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. (f) No Fee Waiver.--Except as provided in subsection (b), fees required to be paid under this section shall not be waived or reduced. SEC. 100005. SPECIAL IMMIGRANT JUVENILE FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this section, by any alien, parent, or legal guardian of an alien applying for special immigrant juvenile status under section 101(a)(27)(J) (8 U.S.C. 1101(a)(27)(J)). (b) Initial Amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (1) $250; or (2) such amount as the Secretary of Homeland Security may establish, by rule. (c) Annual Adjustments for Inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (1) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (d) Disposition of Special Immigrant Juvenile Fees.--All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. SEC. 100006. TEMPORARY PROTECTED STATUS FEE. Section 244(c)(1)(B) of the Immigration and Nationality Act (8 U.S.C. 1254a(c)(1)(B)) is amended-- (1) by striking ``The Attorney General'' and inserting the following: ``(i) In general.--The Attorney General''; (2) in clause (i), as redesignated, by striking ``$50'' and inserting ``$500, subject to the adjustments required under clause (ii)''; and (3) by adding at the end the following: ``(ii) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the maximum amount of the fee authorized under clause (i) shall be equal to the sum of-- ``(I) the maximum amount of the fee authorized under this subparagraph for the most recently concluded fiscal year; and ``(II) the product resulting from the multiplication of the amount referred to in subclause (I) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. ``(iii) Disposition of temporary protected status fees.-- All of the fees collected pursuant to this subparagraph shall be deposited into the general fund of the Treasury. ``(iv) No fee waiver.--Fees required to be paid under this subparagraph shall not be waived or reduced.''. SEC. 100007. VISA INTEGRITY FEE. (a) Visa Integrity Fee.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien issued a nonimmigrant visa at the time of such issuance. (2) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $250; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar. (4) Disposition of visa integrity fees.--All of the fees collected pursuant to this section that are not reimbursed pursuant to subsection (b) shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. (b) Fee Reimbursement.--The Secretary of Homeland Security may provide a reimbursement to an alien of the fee required under subsection (a) for the issuance of a nonimmigrant visa after the expiration of such nonimmigrant visa's period of validity if such alien demonstrates that he or she-- (1) after admission to the United States pursuant to such nonimmigrant visa, complied with all conditions of such nonimmigrant visa, including the condition that an alien shall not accept unauthorized employment; and (2)(A) has not sought to extend his or her period of admission during such period of validity and departed the United States not later than 5 days after the last day of such period; or (B) during such period of validity, was granted an extension of such nonimmigrant status or an adjustment to the status of a lawful permanent resident. SEC. 100008. FORM I-94 FEE. (a) Fee Authorized.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any alien who submits an application for a Form I-94 Arrival/Departure Record. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $24; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar. (c) Disposition of Form I-94 Fees.--During each fiscal year-- (1) 20 percent of the fees collected pursuant to this section-- (A) shall be deposited into the Land Border Inspection Fee Account in accordance with section 286(q)(2) (8 U.S.C. 1356(q)(2)); and (B) shall be made available to U.S. Customs and Border Protection to retain and spend without further appropriation for the purpose of processing Form I-94; and (2) any amounts not deposited into the Land Border Inspection Fee Account pursuant to paragraph (1)(A) shall be deposited in the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100009. ANNUAL ASYLUM FEE. (a) Fee Authorized.--In addition to any other fee authorized by law, for each calendar year that an alien's application for asylum remains pending, the Secretary of Homeland Security or the Attorney General, as applicable, shall require the payment of a fee, equal to the amount specified in subsection (b), by such alien. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $100; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar. (c) Disposition of Annual Asylum Fees.--All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100010. FEE RELATING TO RENEWAL AND EXTENSION OF EMPLOYMENT AUTHORIZATION FOR PAROLEES. (a) In General.--In addition to any other fee authorized by law, the Secretary of [[Page S3773]] Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), for any parolee who seeks a renewal or extension of employment authorization based on a grant of parole. The employment authorization for each alien paroled into the United States, or any renewal or extension of such parole, shall be valid for a period of 1 year or for the duration of the alien's parole, whichever is shorter. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $275; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Disposition of Fees Relating to Renewal and Extension of Employment Authorization for Parolees.--During each fiscal year-- (1) 25 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Citizenship and Immigration Services; (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100011. FEE RELATING TO RENEWAL OR EXTENSION OF EMPLOYMENT AUTHORIZATION FOR ASYLUM APPLICANTS. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee of not less than $275 by any alien who has applied for asylum for each renewal or extension of employment authorization based on such application. (b) Termination.--Each initial employment authorization, or renewal or extension of such authorization, shall terminate-- (1) immediately following the denial of an asylum application by an asylum officer, unless the case is referred to an immigration judge; (2) on the date that is 30 days after the date on which an immigration judge denies an asylum application, unless the alien makes a timely appeal to the Board of Immigration Appeals; or (3) immediately following the denial by the Board of Immigration Appeals of an appeal of a denial of an asylum application. (c) Disposition of Fees Relating to Renewal and Extension of Employment Authorization for Asylum Applicants.--During each fiscal year-- (1) 25 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Citizenship and Immigration Services; (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100012. FEE RELATING TO RENEWAL AND EXTENSION OF EMPLOYMENT AUTHORIZATION FOR ALIENS GRANTED TEMPORARY PROTECTED STATUS. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any alien at the time such alien seeks a renewal or extension of employment authorization based on a grant of temporary protected status. Any employment authorization for an alien granted temporary protected status, or any renewal or extension of such employment authorization, shall be valid for a period of 1 year or for the duration of the designation of temporary protected status, whichever is shorter. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $275; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Disposition of Fees Relating to Renewal and Extension of Employment Authorization for Temporary Protected Status Applicants.--During each fiscal year-- (1) 25 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Citizenship and Immigration Services; (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100013. FEES RELATING TO APPLICATIONS FOR ADJUSTMENT OF STATUS. (a) Fee for Filing an Application to Adjust Status to That of a Lawful Permanent Resident.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien who files an application with an immigration court to adjust the alien's status to that of a lawful permanent resident, or whose application to adjust his or her status to that of a lawful permanent resident is adjudicated in immigration court. Such fee shall be paid at the time such application is filed or before such application is adjudicated by the immigration court. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,500; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of adjustment of status application fees.-- During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (b) Fee for Filing Application for Waiver of Grounds of Inadmissibility.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for a waiver of a ground of inadmissibility, or before such application is adjudicated by the immigration court. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,050; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of waiver of ground of admissibility application fees.--During each fiscal year-- [[Page S3774]] (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (c) Fee for Filing an Application for Temporary Protected Status.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for temporary protected status, or before such application is adjudicated by the immigration court. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $500; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of temporary protected status application fees.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) Fee for Filing an Appeal of a Decision of an Immigration Judge.-- (1) In general.--Except as provided in paragraph (3), the Attorney General shall require, in addition to any other fees authorized by law, the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an appeal from a decision of an immigration judge. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $900; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Exception.--The fee required under paragraph (1) shall not apply to the appeal of a bond decision. (4) Disposition of fees for appealing immigration judge decisions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (e) Fee for Filing an Appeal From a Decision of an Officer of the Department of Homeland Security.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an appeal of a decision of an officer of the Department of Homeland Security. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $900; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for appealing department of homeland security officer decisions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (f) Fee for Filing an Appeal From a Decision of an Adjudicating Official in a Practitioner Disciplinary Case.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any practitioner at the time such practitioner files an appeal from a decision of an adjudicating official in a practitioner disciplinary case. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,325; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for appealing department of homeland security officer decisions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (g) Fee for Filing a Motion to Reopen or a Motion to Reconsider.-- (1) In general.--Except as provided in paragraph (3), in addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files a motion to reopen or motion to reconsider a decision of an immigration judge or the Board of Immigration Appeals. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $900; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Exceptions.--The fee required under paragraph (1) shall not apply to-- (A) a motion to reopen a removal order entered in absentia if such motion is filed in accordance with section 240(b)(5)(C)(ii) (8 U.S.C. 1229a(b)(5)(C)(ii)); or (B) a motion to reopen a deportation order entered in absentia if such motion is filed in accordance with section 242B(c)(3)(B) prior to April 1, 1997. [[Page S3775]] (4) Disposition of fees for filing certain motions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (h) Fee for Filing Application for Suspension of Deportation.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for suspension of deportation. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $600; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for filing application for suspension of deportation.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (i) Fee for Filing Application for Cancellation of Removal for Certain Permanent Residents.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court an application for cancellation of removal for an alien who is a lawful permanent resident. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $600; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for filing application for cancellation of removal.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (j) Fee for Filing an Application for Cancellation of Removal and Adjustment of Status for Certain Nonpermanent Residents.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien who is not a lawful permanent resident at the time such alien files an application with an immigration court for cancellation of removal and adjustment of status for any alien. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,500; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for filing application for cancellation of removal.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (k) Limitation on Use of Funds.--No fees collected pursuant to this section may be expended by the Executive Office for Immigration Review for the Legal Orientation Program, or for any successor program. SEC. 100014. ELECTRONIC SYSTEM FOR TRAVEL AUTHORIZATION FEE. Section 217(h)(3)(B) (8 U.S.C. 1187(h)(3)(B)) is amended-- (1) in clause (i)-- (A) in subclause (I), by striking ``and'' at the end; (B) in subclause (II)-- (i) by inserting ``of not less than $10'' after ``an amount''; and (ii) by striking the period at the end and inserting ``; and''; and (C) by adding at the end the following: ``(III) not less than $13 per travel authorization.''; (2) in clause (iii), by striking ``October 31, 2028'' and inserting ``October 31, 2034''; and (3) by adding at the end the following: ``(iv) Subsequent adjustment.--During fiscal year 2026 and each subsequent fiscal year, the amount specified in clause (i)(II) for a fiscal year shall be equal to the sum of-- ``(I) the amount of the fee required under this subparagraph during the most recently concluded fiscal year; and ``(II) the product of the amount referred to in subclause (I) multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.''. SEC. 100015. ELECTRONIC VISA UPDATE SYSTEM FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, in the amount specified in subsection (b), by any alien subject to the Electronic Visa Update System at the time of such alien's enrollment in such system. (b) Amount Specified.-- (1) In general.--For fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $30; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026 and each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of-- (A) the amount of the fee required under this subsection during the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $0.25. (c) Disposition of Electronic Visa Update System Fees.-- (1) In general.--Section 286 (8 U.S.C. 1356) is amended by adding at the end the following: ``(w) CBP Electronic Visa Update System Account.-- ``(1) Establishment.--There is established in the general fund of the Treasury a separate account, which shall be known as the `CBP Electronic Visa Update System Account' (referred to in this subsection as the `Account'). ``(2) Deposits.--There shall be deposited into the Account an amount equal to the difference between-- ``(A) all of the fees received pursuant to section 100015 of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress); and [[Page S3776]] ``(B) an amount equal to $5 multiplied by the number of payments collected pursuant to such section. ``(3) Appropriation.--Amounts deposited in the Account-- ``(A) are hereby appropriated to make payments and offset program costs in accordance with section 100015 of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress), without further appropriation; and ``(B) shall remain available until expended for any U.S. Customs and Border Protection costs associated with administering the CBP Electronic Visa Update System.''. (2) Remaining fees.--Of the fees collected pursuant to this section, an amount equal to $5 multiplied by the number of payments collected pursuant to this section shall be deposited to the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100016. FEE FOR ALIENS ORDERED REMOVED IN ABSENTIA. (a) In General.--As partial reimbursement for the cost of arresting an alien described in this section, the Secretary of Homeland Security, except as provided in subsection (c), shall require the payment of a fee, equal to the amount specified in subsection (b) on any alien who-- (1) is ordered removed in absentia pursuant to section 240(b)(5) (8 U.S.C. 1229a(b)(5)); and (2) is subsequently arrested by U.S. Immigration and Customs Enforcement. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $5,000; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Exception.--The fee described in this section shall not apply to any alien who was ordered removed in absentia if such order was rescinded pursuant to section 240(b)(5)(C) (8 U.S.C. 1229a(b)(5)(C)). (d) Disposition of Removal in Absentia Fees.--During each fiscal year-- (1) 50 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Immigration and Customs Enforcement; (B) shall be deposited into the Detention and Removal Office Fee Account; and (C) may be retained and expended by U.S. Immigration and Customs Enforcement without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Immigration and Customs Enforcement pursuant to paragraph (1) shall be deposited into the general fund of the Treasury. (e) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100017. INADMISSIBLE ALIEN APPREHENSION FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any inadmissible alien at the time such alien is apprehended between ports of entry. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $5,000; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Disposition of Inadmissible Alien Apprehension Fees.-- During each fiscal year-- (1) 50 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Immigration and Customs Enforcement; (B) shall be deposited into the Detention and Removal Office Fee Account; and (C) may be retained and expended by U.S. Immigration and Customs Enforcement without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Immigration and Customs Enforcement pursuant to paragraph (1) shall be deposited into the general fund of the Treasury. (d) Disposition of Inadmissible Alien Apprehension Fees.-- All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. SEC. 100018. AMENDMENT TO AUTHORITY TO APPLY FOR ASYLUM. Section 208(d)(3) (8 U.S.C. 1158(d)(3)) is amended-- (1) in the first sentence, by striking ``may'' and inserting ``shall''; (2) by striking ``Such fees shall not exceed'' and all that follows and inserting the following: ``Nothing in this paragraph may be construed to limit the authority of the Attorney General to set additional adjudication and naturalization fees in accordance with section 286(m).''. PART II--IMMIGRATION AND LAW ENFORCEMENT FUNDING SEC. 100051. APPROPRIATION FOR THE DEPARTMENT OF HOMELAND SECURITY. In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $2,055,000,000, to remain available through September 30, 2029, for the following purposes: (1) Immigration and enforcement activities.--Hiring and training of additional U.S. Customs and Border Protection agents, and the necessary support staff, to carry out immigration enforcement activities. (2) Departures and removals.--Funding for transportation costs and related costs associated with the departure or removal of aliens. (3) Personnel assignments.--Funding for the assignment of Department of Homeland Security employees and State officers to carry out immigration enforcement activities pursuant to sections 103(a) and 287(g) of the Immigration and Nationality Act (8 U.S.C. 1103(a) and 1357(g)). (4) Background checks.--Hiring additional staff and investing the necessary resources to enhance screening and vetting of all aliens seeking entry into United States, consistent with section 212 of such Act (8 U.S.C. 1182), or intending to remain in the United States, consistent with section 237 of such Act (8 U.S.C. 1227). (5) Protecting alien children from exploitation.--In instances of aliens and alien children entering the United States without a valid visa, funding is provided for the purposes of-- (A) collecting fingerprints, in accordance with section 262 of the Immigration and Nationality Act (8 U.S.C. 1302) and subsections (a)(3) and (b) of section 235 of such Act (8 U.S.C. 1225); and (B) collecting DNA, in accordance with sections 235(d) and 287(b) of the Immigration and Nationality Act (8 U.S.C. 1225(d) and 1357(b)). (6) Transporting and return of aliens from contiguous territory.--Transporting and facilitating the return, pursuant to section 235(b)(2)(C) of the Immigration and Nationality Act (8 U.S.C. 1225(b)(2)(C)), of aliens arriving from contiguous territory. (7) State and local participation.--Funding for State and local participation in homeland security efforts for purposes of-- (A) ending the presence of criminal gangs and criminal organizations throughout the United States; (B) addressing crime and public safety threats; (C) combating human smuggling and trafficking networks throughout the United States; (D) supporting immigration enforcement activities; and (E) providing reimbursement for State and local participation in such efforts. (8) Removal of specified unaccompanied alien children.-- (A) In general.--Funding removal operations for specified unaccompanied alien children. (B) Use of funds.--Amounts made available under this paragraph shall only be used for permitting a specified unaccompanied alien child to withdraw the application for admission of the child pursuant to section 235(a)(4) of the Immigration and Nationality Act (8 U.S.C. 1225(a)(4)). (C) Definitions.--In this paragraph: (i) Specified unaccompanied alien child.--The term ``specified unaccompanied alien child'' means an unaccompanied alien child (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))) who the Secretary of Homeland Security determines on a case-by-case basis-- (I) has been found by an immigration officer at a land border or port of entry of the United States and is inadmissible under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.); (II) has not been a victim of severe forms of trafficking in persons, and there is no credible evidence that such child is at risk of being trafficked upon return of the child to the child's country of nationality or country of last habitual residence; and (III) does not have a fear of returning to the child's country of nationality or country of last habitual residence owing to a credible fear of persecution. (ii) Severe forms of trafficking in persons.--The term ``severe forms of trafficking in persons'' has the meaning given such term in section 103 of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7102). (9) Expedited removal of criminal aliens.--Funding for the expedited removal of criminal aliens, in accordance with the [[Page S3777]] provisions of section 235(b)(1) of the Immigration and Nationality Act (8 U.S.C. 1225(b)(1)). (10) Removal of certain criminal aliens without further hearings.--Funding for the removal of certain criminal aliens without further hearings, in accordance with the provisions of section 235(c) of the Immigration and Nationality Act (8 U.S.C. 1225(c)). (11) Criminal and gang checks for unaccompanied alien children.--Funding for criminal and gang checks of unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))) who are 12 years of age and older, including the examination of such unaccompanied alien children for gang-related tattoos and other gang-related markings. (12) Information technology.--Information technology investments to support immigration purposes, including improvements to fee and revenue collections. SEC. 100052. APPROPRIATION FOR U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT. In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $29,850,000,000, to remain available through September 30, 2029, for the following purposes: (1) Hiring and training.--Hiring and training additional U.S. Immigration and Customs Enforcement personnel, including officers, agents, investigators, and support staff, to carry out immigration enforcement activities and prioritizing and streamlining the hiring of retired U.S. Immigration and Customs Enforcement personnel. (2) Performance, retention, and signing bonuses.-- (A) In general.--Providing performance, retention, and signing bonuses for qualified U.S. Immigration and Customs Enforcement personnel in accordance with this subsection. (B) Performance bonuses.--The Director of U.S. Immigration and Customs Enforcement, at the Director's discretion, may provide performance bonuses to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who demonstrates exemplary service. (C) Retention bonuses.--The Director of U.S. Immigration and Customs Enforcement may provide retention bonuses to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who commits to 2 years of additional service with U.S. Immigration and Customs Enforcement to carry out immigration enforcement activities. (D) Signing bonuses.--The Director of U.S. Immigration and Customs Enforcement may provide a signing bonus to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who-- (i) is hired on or after the date of the enactment of this Act; and (ii) who commits to 5 years of service with U.S. Immigration and Customs Enforcement to carry out immigration enforcement activities. (E) Service agreement.--In providing a retention or signing bonus under this paragraph, the Director of U.S. Immigration and Customs Enforcement shall provide each qualifying individual with a written service agreement that includes-- (i) the commencement and termination dates of the required service period (or provisions for the determination of such dates); (ii) the amount of the bonus; and (iii) any other term or condition under which the bonus is payable, subject to the requirements of this paragraph, including-- (I) the conditions under which the agreement may be terminated before the agreed-upon service period has been completed; and (II) the effect of a termination described in subclause (I). (3) Recruitment, hiring, and onboarding.--Facilitating the recruitment, hiring, and onboarding of additional U.S. Immigration and Customs Enforcement personnel to carry out immigration enforcement activities, including by-- (A) investing in information technology, recruitment, and marketing; and (B) hiring staff necessary to carry out information technology, recruitment, and marketing activities. (4) Transportation.--Funding for transportation costs and related costs associated with alien departure or removal operations. (5) Information technology.--Funding for information technology investments to support enforcement and removal operations, including improvements to fee collections. (6) Facility upgrades.--Funding for facility upgrades to support enforcement and removal operations. (7) Fleet modernization.--Funding for fleet modernization to support enforcement and removal operations. (8) Family unity.--Promoting family unity by-- (A) maintaining the care and custody, during the period in which a charge described in clause (i) is pending, in accordance with applicable laws, of an alien who-- (i) is charged only with a misdemeanor offense under section 275(a) of the Immigration and Nationality Act (8 U.S.C. 1325(a)); and (ii) entered the United States with the alien's child who has not attained 18 years of age; and (B) detaining such an alien with the alien's child. (9) 287(g) agreements.--Expanding, facilitating, and implementing agreements under section 287(g) of the Immigration and Nationality Act (8 U.S.C. 1357(g)). (10) Victims of immigration crime engagement office.-- Hiring and training additional staff to carry out the mission of the Victims of Immigration Crime Engagement Office and for providing nonfinancial assistance to the victims of crimes perpetrated by aliens who are present in the United States without authorization. (11) Office of the principal legal advisor.--Hiring additional attorneys and the necessary support staff within the Office of the Principal Legal Advisor to represent the Department of Homeland Security in immigration enforcement and removal proceedings. SEC. 100053. APPROPRIATION FOR FEDERAL LAW ENFORCEMENT TRAINING CENTERS. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for the Federal Law Enforcement Training Centers for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $750,000,000, to remain available until September 30, 2029, for the purposes described in subsections (b) and (c). (b) Training.--Not less than $285,000,000 of the amounts available under subsection (a) shall be for supporting the training of newly hired Federal law enforcement personnel employed by the Department of Homeland Security and State and local law enforcement agencies operating in support of the Department of Homeland Security. (c) Facilities.--Not more than $465,000,000 of the amounts available under subsection (a) shall be for procurement, construction and maintenance of, improvements to, training equipment for, and related expenses, of facilities of the Federal Law Enforcement Training Centers. SEC. 100054. APPROPRIATION FOR THE DEPARTMENT OF JUSTICE. In addition to amounts otherwise available, there is appropriated to the Attorney General for the Department of Justice for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $3,330,000,000, to remain available through September 30, 2029, for the following purposes: (1) Executive office for immigration review.-- (A) In general.--Hiring immigration judges and necessary support staff for the Executive Office for Immigration Review to address the backlog of petitions, cases, and removals. (B) Staffing level.--Effective November 1, 2028, the Executive Office for Immigration Review shall be comprised of not more than 800 immigration judges, along with the necessary support staff. (2) Combating drug trafficking.--Funding efforts to combat drug trafficking (including trafficking of fentanyl and its precursor chemicals) and illegal drug use. (3) Prosecution of immigration matters.--Funding efforts to investigate and prosecute immigration matters, gang-related crimes involving aliens, child trafficking and smuggling involving aliens within the United States, unlawful voting by aliens, violations of the Alien Registration Act, 1940 (54 Stat., chapter 439), and violations of or fraud relating to title IV of the Personal Responsibility and Work Opportunity Act of 1996 (Public Law 104-193; 110 Stat. 2277), including hiring additional Department of Justice personnel to investigate and prosecute such matters. (4) Nonparty or other injunctive relief.--Hiring additional attorneys and necessary support staff for the purpose of continuing implementation of assignments by the Attorney General pursuant to sections 516, 517, and 518 of title 28, United States Code, to conduct litigation and attend to the interests of the United States in suits pending in a court of the United States or in a court of a State in suits seeking nonparty or other injunctive relief against the Federal Governmeogies.nt. (5) Edward byrne memorial justice assistance grant program and office of community oriented policing.-- (A) In general.--Increasing funding for the Edward Byrne Memorial Justice Assistance Grant Program and the Office of Community Oriented Policing for initiatives associated with-- (i) investigating and prosecuting violent crime; (ii) criminal enforcement initiatives; and (iii) immigration enforcement and removal efforts. (B) Limitations.--No funds made available under this subsection shall be made available to community violence intervention and prevention initiative programs. (C) Eligibility.--To be eligible to receive funds made available under this subsection, a State or local government shall be in full compliance, as determined by the Attorney General, with section 642 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1373). (6) Fiscally responsible lawsuit settlements.--Hiring additional attorneys and necessary support staff for the purpose of maximizing lawsuit settlements that require the payment of fines and penalties to the Treasury of the United States in lieu of providing for the payment to any person or entity other than the United States, other than a payment that provides restitution or otherwise directly remedies actual harm directly and proximately caused by the party making the payment, or constitutes payment for [[Page S3778]] services rendered in connection with the case. (7) Compensation for incarceration of criminal aliens.-- (A) In general.--Providing compensation to a State or political subdivision of a State for the incarceration of criminal aliens. (B) Use of funds.--The amounts made available under subparagraph (A) shall only be used to compensate a State or political subdivision of a State, as appropriate, with respect to the incarceration of an alien who-- (i) has been convicted of a felony or 2 or more misdemeanors; and (ii)(I) entered the United States without inspection or at any time or place other than as designated by the Secretary of Homeland Security; (II) was the subject of removal proceedings at the time the alien was taken into custody by the State or a political subdivision of the State; or (III) was admitted as a nonimmigrant and, at the time the alien was taken into custody by the State or a political subdivision of the State, has failed to maintain the nonimmigrant status in which the alien was admitted, or to which it was changed, or to comply with the conditions of any such status. (C) Limitation.--Amounts made available under this subsection shall be distributed to more than 1 State. The amounts made available under subparagraph (A) may not be used to compensate any State or political subdivision of a State if the State or political subdivision of the State prohibits or in any way restricts a Federal, State, or local government entity, official, or other personnel from doing any of the following: (i) Complying with the immigration laws (as defined in section 101(a)(17) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(17))). (ii) Assisting or cooperating with Federal law enforcement entities, officials, or other personnel regarding the enforcement of the immigration laws. (iii) Undertaking any of the following law enforcement activities as such activities relate to information regarding the citizenship or immigration status, lawful or unlawful, the inadmissibility or deportability, and the custody status, of any individual: (I) Making inquiries to any individual to obtain such information regarding such individual or any other individuals. (II) Notifying the Federal Government regarding the presence of individuals who are encountered by law enforcement officials or other personnel of a State or political subdivision of a State. (III) Complying with requests for such information from Federal law enforcement entities, officials, or other personnel. SEC. 100055. BRIDGING IMMIGRATION-RELATED DEFICITS EXPERIENCED NATIONWIDE REIMBURSEMENT FUND. (a) Establishment.--There is established within the Department of Justice a fund, to be known as the ``Bridging Immigration-related Deficits Experienced Nationwide (BIDEN) Reimbursement Fund'' (referred to in this section as the ``Fund''). (b) Use of Funds.--The Attorney General shall use amounts appropriated or otherwise made available for the Fund for grants to eligible States, State agencies, and units of local government, pursuant to their existing statutory authorities, for any of the following purposes: (1) Locating and apprehending aliens who have committed a crime under Federal, State, or local law, in addition to being unlawfully present in the United States. (2) Collection and analysis of law enforcement investigative information within the United States to counter gang or other criminal activity. (3) Investigating and prosecuting-- (A) crimes committed by aliens within the United States; and (B) drug and human trafficking crimes committed within the United States. (4) Court operations related to the prosecution of-- (A) crimes committed by aliens; and (B) drug and human trafficking crimes. (5) Temporary criminal detention of aliens. (6) Transporting aliens described in paragraph (1) within the United States to locations related to the apprehension, detention, and prosecution of such aliens. (7) Vehicle maintenance, logistics, transportation, and other support provided to law enforcement agencies by a State agency to enhance the ability to locate and apprehend aliens who have committed crimes under Federal, State, or local law, in addition to being unlawfully present in the United States. (c) Appropriation.--In addition to amounts otherwise available for the purposes described in subsection (b), there is appropriated to the Attorney General for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, not to exceed $3,500,000,000, to remain available until September 30, 2028, for the Fund for qualified and documented expenses that achieve any such purpose. (d) Grant Eligibility of Completed, Ongoing, or New Activities.--The Attorney General may provide grants under this section to State agencies and units of local government for expenditures made by State agencies or units of local government for completed, ongoing, or new activities determined to be eligible for such grant funding that occurred on or after January 20, 2021. Amounts made available under this section shall be distributed to more than 1 State. SEC. 100056. APPROPRIATION FOR THE BUREAU OF PRISONS. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Prisons for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $5,000,000,000, to remain available through September 30, 2029, for the purposes described in subsections (b) and (c). (b) Salaries and Benefits.--Not less than $3,000,000,000 of the amounts made available under subsection (a) shall be for hiring and training of new employees, including correctional officers, medical professionals, and facilities and maintenance employees, the necessary support staff, and for additional funding for salaries and benefits for the current workforce of the Bureau of Prisons. (c) Facilities.--Not more than $2,000,000,000 of the amounts made available under subsection (a) shall be for addressing maintenance and repairs to facilities maintained or operated by the Bureau of Prisons. SEC. 100057. APPROPRIATION FOR THE UNITED STATES SECRET SERVICE. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Director of the United States Secret Service (referred to in this section as the ``Director'') for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,170,000,000, to remain available through September 30, 2029, for the purposes described in subsection (b). (b) Use of Funds.--Amounts made available under subsection (a) may only be used for-- (1) additional United States Secret Service resources, including personnel, training facilities, programming, and technology; and (2) performance, retention, and signing bonuses for qualified United States Secret Service personnel in accordance with subsection (c). (c) Performance, Retention, and Signing Bonuses.-- (1) Performance bonuses.--The Director, at the Director's discretion, may provide performance bonuses to any Secret Service agent, officer, or analyst who demonstrates exemplary service. (2) Retention bonuses.--The Director may provide retention bonuses to any Secret Service agent, officer, or analyst who commits to 2 years of additional service with the Secret Service. (3) Signing bonuses.--The Director may provide a signing bonus to any Secret Service agent, officer, or analyst who-- (A) is hired on or after the date of the enactment of this Act; and (B) commits to 5 years of service with the United States Secret Service. (4) Service agreement.--In providing a retention or signing bonus under this subsection, the Director shall provide each qualifying individual with a written service agreement that includes-- (A) the commencement and termination dates of the required service period (or provisions for the determination of such dates); (B) the amount of the bonus; and (C) any other term or condition under which the bonus is payable, subject to the requirements under this subsection, including-- (i) the conditions under which the agreement may be terminated before the agreed-upon service period has been completed; and (ii) the effect of a termination described in clause (i). Subtitle B--Judiciary Matters SEC. 100101. APPROPRIATION TO THE ADMINISTRATIVE OFFICE OF THE UNITED STATES COURTS. In addition to amounts otherwise available, there is appropriated to the Director of the Administrative Office of the United States Courts, out of amounts in the Treasury not otherwise appropriated, $1,250,000 for each of fiscal years 2025 through 2028, for the purpose of continuing analyses and reporting pursuant to section 604(a)(2) of title 28, United States Code, to examine the state of the dockets of the courts and to prepare and transmit statistical data and reports as to the business of the courts, including an assessment of the number, frequency, and related metrics of judicial orders issuing non-party relief against the Federal Government and their aggregate cost impact on the taxpayers of the United States, as determined by each court when imposing securities for the issuance of preliminary injunctions or temporary restraining orders against the Federal Government pursuant to rule 65(c) of the Federal Rules of Civil Procedure. SEC. 100102. APPROPRIATION TO THE FEDERAL JUDICIAL CENTER. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Director of the Federal Judicial Center, out of amounts in the Treasury not otherwise appropriated, $1,000,000 for each of fiscal years 2025 through 2028, for the purpose described in subsection (b). (b) Use of Funds.--The Federal Judicial Center shall use the amounts appropriated under subsection (a) for the continued implementation of programs pursuant to section 620(b)(3) of title 28, United States Code, to stimulate, create, develop, and conduct programs of continuing education and training for personnel of the judicial branch, including training on the absence of constitutional and statutory authority supporting legal claims that seek non-party relief against the Federal Government, and strategic approaches for mitigating the aggregate cost [[Page S3779]] impact of such legal claims on the taxpayers of the United States. Subtitle C--Radiation Exposure Compensation Matters SEC. 100201. EXTENSION OF FUND. Section 3(d) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) by striking the first sentence and inserting ``The Fund shall terminate on December 31, 2028.''; and (2) by striking ``the end of that 2-year period'' and inserting ``such date''. SEC. 100202. CLAIMS RELATING TO ATMOSPHERIC TESTING. (a) Leukemia Claims Relating to Trinity Test in New Mexico and Tests at the Nevada Site.--Section 4(a)(1)(A) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in clause (i)-- (A) in subclause (I), by striking ``October 31, 1958'' and inserting ``November 6, 1962''; (B) in subclause (II)-- (i) by striking ``in the affected area'' and inserting ``in an affected area''; and (ii) by striking ``or'' after the semicolon; (C) by redesignating subclause (III) as subclause (IV); and (D) by inserting after subclause (II) the following: ``(III) was physically present in an affected area for a period of at least 1 year during the period beginning on September 24, 1944, and ending on November 6, 1962; or''; and (2) in clause (ii)(I), by striking ``physical presence described in subclause (I) or (II) of clause (i) or onsite participation described in clause (i)(III)'' and inserting ``physical presence described in subclause (I), (II), or (III) of clause (i) or onsite participation described in clause (i)(IV)''. (b) Amounts for Claims Related to Leukemia.--Section 4(a)(1) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in subparagraph (A), by striking ``an amount'' and inserting ``the amount''; (2) by striking subparagraph (B) and inserting the following: ``(B) Amount.--If the conditions described in subparagraph (C) are met, an individual who is described in subparagraph (A) shall receive $100,000.''; and (3) in subparagraph (C), by adding at the end the following: ``(iv) No payment under this paragraph previously has been made to the individual, on behalf of the individual, or to a survivor of the individual.''. (c) Conditions for Claims Related to Leukemia.--Section 4(a)(1)(C) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) by striking clause (i); and (2) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively. (d) Specified Diseases Claims Relating to Trinity Test in New Mexico and Tests at the Nevada Site.--Section 4(a)(2) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in subparagraph (A)-- (A) by striking ``in the affected area'' and inserting ``in an affected area''; (B) by striking ``2 years'' and inserting ``1 year''; and (C) by striking ``October 31, 1958,'' and inserting ``November 6, 1962;''; (2) in subparagraph (B)-- (A) by striking ``in the affected area'' and inserting ``in an affected area''; and (B) by striking ``, or'' at the end and inserting a semicolon; (3) by redesignating subparagraph (C) as subparagraph (D); and (4) by inserting after subparagraph (B) the following: ``(C) was physically present in an affected area for a period of at least 1 year during the period beginning on September 24, 1944, and ending on November 6, 1962; or''. (e) Amounts for Claims Related to Specified Diseases.-- Section 4(a)(2) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended in the matter following subparagraph (D) (as redesignated by subsection (d) of this section)-- (1) by striking ``$50,000 (in the case of an individual described in subparagraph (A) or (B)) or $75,000 (in the case of an individual described in subparagraph (C)),'' and inserting ``$100,000''; (2) in clause (i), by striking ``, and'' and inserting a semicolon; (3) in clause (ii), by striking the period at the end and inserting ``; and''; and (4) by adding at the end the following: ``(iii) no payment under this paragraph previously has been made to the individual, on behalf of the individual, or to a survivor of the individual.''. (f) Downwind States.--Section 4(b)(1) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended to read as follows: ``(1) `affected area' means-- ``(A) except as provided under subparagraph (B)-- ``(i) the States of New Mexico, Utah, and Idaho; ``(ii) in the State of Nevada, the counties of White Pine, Nye, Lander, Lincoln, Eureka, and that portion of Clark County that consists of townships 13 through 16 at ranges 63 through 71; and ``(iii) in the State of Arizona, the counties of Coconino, Yavapai, Navajo, Apache, and Gila, and Mohave; and ``(B) with respect to a claim by an individual under subsection (a)(1)(A)(i)(III) or subsection (a)(2)(C), only New Mexico; and''. SEC. 100203. CLAIMS RELATING TO URANIUM MINING. (a) Employees of Mines and Mills.--Section 5(a)(1)(A)(i) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended to read as follows: ``(i)(I) was employed in a uranium mine or uranium mill (including any individual who was employed in the transport of uranium ore or vanadium-uranium ore from such mine or mill) located in Colorado, New Mexico, Arizona, Wyoming, South Dakota, Washington, Utah, Idaho, North Dakota, Oregon, or Texas at any time during the period beginning on January 1, 1942, and ending on December 31, 1990; or ``(II) was employed as a core driller in a State referred to in subclause (I) during the period described in such subclause; and''. (b) Miners.--Section 5(a)(1)(A)(ii)(I) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended by inserting ``or renal cancer or any other chronic renal disease, including nephritis and kidney tubal tissue injury'' after ``nonmalignant respiratory disease''. (c) Millers, Core Drillers, and Ore Transporters.--Section 5(a)(1)(A)(ii)(II) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) by inserting ``, core driller,'' after ``was a miller''; (2) by inserting ``, or was involved in remediation efforts at such a uranium mine or uranium mill,'' after ``ore transporter''; (3) by inserting ``(I)'' after ``clause (i)''; and (4) by striking ``or renal cancers'' and all that follows and inserting ``or renal cancer or any other chronic renal disease, including nephritis and kidney tubal tissue injury; or''. (d) Combined Work Histories.--Section 5(a)(1)(A)(ii) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note), as amended by subsection (c), is further amended-- (1) in subclause (I), by striking ``or'' at the end; and (2) by adding at the end the following: ``(III)(aa) does not meet the conditions of subclause (I) or (II); ``(bb) worked, during the period described in clause (i)(I), in 2 or more of the following positions: miner, miller, core driller, and ore transporter; ``(cc) meets the requirements under paragraph (4) or (5); and ``(dd) submits written medical documentation that the individual developed lung cancer, a nonmalignant respiratory disease, renal cancer, or any other chronic renal disease, including nephritis and kidney tubal tissue injury after exposure to radiation through work in one or more of the positions referred to in item (bb);''. (e) Special Rules Relating to Combined Work Histories.-- Section 5(a) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended by adding at the end the following: ``(4) Special rule relating to combined work histories for individuals with at least one year of experience.--An individual meets the requirements under this paragraph if the individual worked in one or more of the positions referred to in paragraph (1)(A)(ii)(III)(bb) for a period of at least one year during the period described in paragraph (1)(A)(i)(I). ``(5) Special rule relating to combined work histories for miners.--An individual meets the requirements of this paragraph if the individual, during the period described in paragraph (1)(A)(i)(I), worked as a miner and was exposed to such number of working level months that the Attorney General determines, when combined with the exposure of such individual to radiation through work as a miller, core driller, or ore transporter during the period described in paragraph (1)(A)(i)(I), results in such individual being exposed to a total level of radiation that is greater or equal to the level of exposure of an individual described in paragraph (4).''. (f) Definition of Core Driller.--Section 5(b) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in paragraph (7), by striking ``and'' at the end; (2) in paragraph (8), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following: ``(9) the term `core driller' means any individual employed to engage in the act or process of obtaining cylindrical rock samples of uranium or vanadium by means of a borehole drilling machine for the purpose of mining uranium or vanadium.''. SEC. 100204. CLAIMS RELATING TO MANHATTAN PROJECT WASTE.-- The Radiation Exposure Compensation Act (Public Law 101- 426; 42 U.S.C. 2210 note) is amended by inserting after section 5 the following: ``SEC. 5A. CLAIMS RELATING TO MANHATTAN PROJECT WASTE. ``(a) In General.--A claimant shall receive compensation for a claim made under this Act, as described in subsection (b) or (c), if-- ``(1) a claim for compensation is filed with the Attorney General-- ``(A) by an individual described in paragraph (2); or ``(B) on behalf of that individual by an authorized agent of that individual, if the individual is deceased or incapacitated, such as-- ``(i) an executor of estate of that individual; or [[Page S3780]] ``(ii) a legal guardian or conservator of that individual; ``(2) that individual, or if applicable, an authorized agent of that individual, demonstrates that such individual-- ``(A) was physically present in an affected area for a period of at least 2 years after January 1, 1949; and ``(B) contracted a specified disease after such period of physical presence; ``(3) the Attorney General certifies that the identity of that individual, and if applicable, the authorized agent of that individual, is not fraudulent or otherwise misrepresented; and ``(4) the Attorney General determines that the claimant has satisfied the applicable requirements of this Act. ``(b) Losses Available to Living Affected Individuals.-- ``(1) In general.--In the event of a claim qualifying for compensation under subsection (a) that is submitted to the Attorney General to be eligible for compensation under this section at a time when the individual described in subsection (a)(2) is living, the amount of compensation under this section shall be in an amount that is the greater of $50,000 or the total amount of compensation for which the individual is eligible under paragraph (2). ``(2) Losses due to medical expenses.--A claimant described in paragraph (1) shall be eligible to receive, upon submission of contemporaneous written medical records, reports, or billing statements created by or at the direction of a licensed medical professional who provided contemporaneous medical care to the claimant, additional compensation in the amount of all documented out-of-pocket medical expenses incurred as a result of the specified disease suffered by that claimant, such as any medical expenses not covered, paid for, or reimbursed through-- ``(A) any public or private health insurance; ``(B) any employee health insurance; ``(C) any workers' compensation program; or ``(D) any other public, private, or employee health program or benefit. ``(3) Limitation.--No claimant is eligible to receive compensation under this subsection with respect to medical expenses unless the submissions described in paragraph (2) with respect to such expenses are submitted on or before December 31, 2028. ``(c) Payments to Beneficiaries of Deceased Individuals.-- In the event that an individual described in subsection (a)(2) who qualifies for compensation under subsection (a) is deceased at the time of submission of the claim-- ``(1) a surviving spouse may, upon submission of a claim and records sufficient to satisfy the requirements of subsection (a) with respect to the deceased individual, receive compensation in the amount of $25,000; or ``(2) in the event that there is no surviving spouse, the surviving children, minor or otherwise, of the deceased individual may, upon submission of a claim and records sufficient to satisfy the requirements of subsection (a) with respect to the deceased individual, receive compensation in the total amount of $25,000, paid in equal shares to each surviving child. ``(d) Affected Areas.--For purposes of this section, the term `affected area' means-- ``(1) in the State of Missouri, the ZIP Codes of 63031, 63033, 63034, 63042, 63045, 63074, 63114, 63135, 63138, 63044, 63121, 63140, 63145, 63147, 63102, 63304, 63134, 63043, 63341, 63368, and 63367; ``(2) in the State of Tennessee, the ZIP Codes of 37716, 37840, 37719, 37748, 37763, 37828, 37769, 37710, 37845, 37887, 37829, 37854, 37830, and 37831; ``(3) in the State of Alaska, the ZIP Codes of 99546 and 99547; and ``(4) in the State of Kentucky, the ZIP Codes of 42001, 42003, and 42086. ``(e) Specified Disease.--For purposes of this section, the term `specified disease' means any of the following: ``(1) Any leukemia, provided that the initial exposure occurred after 20 years of age and the onset of the disease was at least 2 years after first exposure. ``(2) Any of the following diseases, provided that the onset was at least 2 years after the initial exposure: ``(A) Multiple myeloma. ``(B) Lymphoma, other than Hodgkin's disease. ``(C) Primary cancer of the-- ``(i) thyroid; ``(ii) male or female breast; ``(iii) esophagus; ``(iv) stomach; ``(v) pharynx; ``(vi) small intestine; ``(vii) pancreas; ``(viii) bile ducts; ``(ix) gall bladder; ``(x) salivary gland; ``(xi) urinary bladder; ``(xii) brain; ``(xiii) colon; ``(xiv) ovary; ``(xv) bone; ``(xvi) renal; ``(xvii) liver, except if cirrhosis or hepatitis B is indicated; or ``(xviii) lung. ``(f) Physical Presence.-- ``(1) In general.--For purposes of this section, the Attorney General may not determine that a claimant has satisfied the requirements under subsection (a) unless demonstrated by submission of-- ``(A) contemporaneous written residential documentation or at least 1 additional employer-issued or government-issued document or record that the claimant, for at least 2 years after January 1, 1949, was physically present in an affected area; or ``(B) other documentation determined by the Attorney General to demonstrate that the claimant, for at least 2 years after January 1, 1949, was physically present in an affected area. ``(2) Types of physical presence.--For purposes of determining physical presence under this section, a claimant shall be considered to have been physically present in an affected area if-- ``(A) the claimant's primary residence was in the affected area; ``(B) the claimant's place of employment was in the affected area; or ``(C) the claimant attended school in the affected area. ``(g) Disease Contraction in Affected Areas.--For purposes of this section, the Attorney General may not determine that a claimant has satisfied the requirements under subsection (a) unless the claimant submits-- ``(1) written medical records or reports created by or at the direction of a licensed medical professional, created contemporaneously with the provision of medical care to the claimant, that the claimant, after a period of physical presence in an affected area, contracted a specified disease; or ``(2) other documentation determined by the Attorney General to demonstrate that the claimant contracted a specified disease after a period of physical presence in an affected area.''. SEC. 100205. LIMITATIONS ON CLAIMS. Section 8(a) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended by striking ``2 years after the date of enactment of the RECA Extension Act of 2022'' and inserting ``December 31, 2027''. ______ SA 2361. Ms. HIRONO submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. FUNDING TO INCREASE THE TOTAL MAXIMUM FEDERAL PELL GRANT AWARD PER STUDENT. Section 401(b)(5)(A)(i) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)(A)(i)) is amended by inserting ``for award years 2024-2025 and 2025-2026, and $8,460 for award year 2026-2027 and each subsequent award year'' after ``$1,060''. ______ SA 2362. Ms. HIRONO submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. FUNDING TO INCREASE THE TOTAL MAXIMUM FEDERAL PELL GRANT AWARD PER STUDENT. Section 401(b)(5)(A)(i) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)(A)(i)) is amended by inserting ``for award years 2024-2025 and 2025-2026, and $20,060 for award year 2026-2027 and each subsequent award year'' after ``$1,060''. ______ SA 2363. Mr. PAUL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 72001, strike ``$5,000,000,000,000'' and insert ``$500,000,000,000''. ______ SA 2364. Mr. PAUL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70106 and insert the following: SEC. 70106. EXTENSION AND ENHANCEMENT OF INCREASED ESTATE AND GIFT TAX EXEMPTION AMOUNTS. (a) In General.--Section 2010(c)(3) is amended-- (1) in subparagraph (A) by striking ``$5,000,000'' and inserting ``$30,000,000'', (2) in subparagraph (B)-- (A) in the mater preceding clause (i), by striking ``2011'' and inserting ``2026'', and (B) in clause (ii), by striking ``calendar year 2010'' and inserting ``calendar year 2025'', and (3) by striking subparagraph (C). (b) Effective Date.--The amendments made by this section shall apply to estates of decedents dying and gifts made after December 31, 2025. ______ SA 2365. Mr. PAUL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. [[Page S3781]] Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70106 and insert the following: SEC. 70106. REPEAL OF ESTATE AND GENERATION-SKIPPING TRANSFER TAXES. (a) Estate Tax Repeal.--Subchapter C of chapter 11 of subtitle B is amended by adding at the end the following new section: ``SEC. 2210. TERMINATION. ``(a) In General.--Except as provided in subsection (b), this chapter shall not apply to the estates of decedents dying on or after the date of the enactment of this section. ``(b) Certain Distributions From Qualified Domestic Trusts.--In applying section 2056A with respect to the surviving spouse of a decedent dying before the date of the enactment of this section-- ``(1) section 2056A(b)(1)(A) shall not apply to distributions made after the 10-year period beginning on such date, and ``(2) section 2056A(b)(1)(B) shall not apply on or after such date.''. (b) Generation-Skipping Transfer Tax Repeal.--Subchapter G of chapter 13 of subtitle B is amended by adding at the end the following new section: ``SEC. 2664. TERMINATION. ``This chapter shall not apply to generation-skipping transfers on or after the date of the enactment of this section.''. (c) Conforming Amendments.-- (1) The table of sections for subchapter C of chapter 11 is amended by adding at the end the following new item: ``Sec. 2210. Termination.''. (2) The table of sections for subchapter G of chapter 13 is amended by adding at the end the following new item: ``Sec. 2664. Termination.''. (d) Effective Date.--The amendments made by this section shall apply to the estates of decedents dying, and generation-skipping transfers, after the date of the enactment of this Act. ______ SA 2366. Mr. PAUL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. 15-PERCENT CORPORATE TAX RATE. (a) In General.--Section 11(b) is amended by striking ``21 percent'' and inserting ``15 percent''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act. (c) Normalization Requirements.--Rules similar to the rules of section 13001(d) of Public Law 115-97 shall apply. ______ SA 2367. Mr. PAUL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 72001. ______ SA 2368. Mr. PAUL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike all after the first word clause and insert the following: SHORT TITLE. This Act may be cited as the ``One Big Beautiful Bill Act''. SEC. 2. TABLE OF CONTENTS. The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY Subtitle A--Nutrition Sec. 10101. Re-evaluation of thrifty food plan. Sec. 10102. Modifications to SNAP work requirements for able-bodied adults. Sec. 10103. Availability of standard utility allowances based on receipt of energy assistance. Sec. 10104. Restrictions on internet expenses. Sec. 10105. Matching funds requirements. Sec. 10106. Administrative cost sharing. Sec. 10107. National education and obesity prevention grant program. Sec. 10108. Alien SNAP eligibility. Subtitle B--Forestry Sec. 10201. Rescission of amounts for forestry. Subtitle C--Commodities Sec. 10301. Effective reference price; reference price. Sec. 10302. Base acres. Sec. 10303. Producer election. Sec. 10304. Price loss coverage. Sec. 10305. Agriculture risk coverage. Sec. 10306. Equitable treatment of certain entities. Sec. 10307. Payment limitations. Sec. 10308. Adjusted gross income limitation. Sec. 10309. Marketing loans. Sec. 10310. Repayment of marketing loans. Sec. 10311. Economic adjustment assistance for textile mills. Sec. 10312. Sugar program updates. Sec. 10313. Dairy policy updates. Sec. 10314. Implementation. Subtitle D--Disaster Assistance Programs Sec. 10401. Supplemental agricultural disaster assistance. Subtitle E--Crop Insurance Sec. 10501. Beginning farmer and rancher benefit. Sec. 10502. Area-based crop insurance coverage and affordability. Sec. 10503. Administrative and operating expense adjustments. Sec. 10504. Premium support. Sec. 10505. Program compliance and integrity. Sec. 10506. Reviews, compliance, and integrity. Sec. 10507. Poultry insurance pilot program. Subtitle F--Additional Investments in Rural America Sec. 10601. Conservation. Sec. 10602. Supplemental agricultural trade promotion program. Sec. 10603. Nutrition. Sec. 10604. Research. Sec. 10605. Energy. Sec. 10606. Horticulture. Sec. 10607. Miscellaneous. TITLE II--COMMITTEE ON ARMED SERVICES Sec. 20001. Enhancement of Department of Defense resources for improving the quality of life for military personnel. Sec. 20002. Enhancement of Department of Defense resources for shipbuilding. Sec. 20003. Enhancement of Department of Defense resources for integrated air and missile defense. Sec. 20004. Enhancement of Department of Defense resources for munitions and defense supply chain resiliency. Sec. 20005. Enhancement of Department of Defense resources for scaling low-cost weapons into production. Sec. 20006. Enhancement of Department of Defense resources for improving the efficiency and cybersecurity of the Department of Defense. Sec. 20007. Enhancement of Department of Defense resources for air superiority. Sec. 20008. Enhancement of resources for nuclear forces. Sec. 20009. Enhancement of Department of Defense resources to improve capabilities of United States Indo-Pacific Command. Sec. 20010. Enhancement of Department of Defense resources for improving the readiness of the Department of Defense. Sec. 20011. Improving Department of Defense border support and counter- drug missions. Sec. 20012. Department of Defense oversight. Sec. 20013. Military construction projects authorized. Sec. 20014. Multi-year operational plan. TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS Sec. 30001. Funding cap for the Bureau of Consumer Financial Protection. Sec. 30002. Rescission of funds for Green and Resilient Retrofit Program for Multifamily Housing. Sec. 30003. Securities and Exchange Commission Reserve Fund. Sec. 30004. Appropriations for Defense Production Act. TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION Sec. 40001. Coast Guard mission readiness. Sec. 40002. Spectrum auctions. Sec. 40003. Air traffic control improvements. Sec. 40004. Space launch and reentry licensing and permitting user fees. Sec. 40005. Mars missions, Artemis missions, and Moon to Mars program. Sec. 40006. Corporate average fuel economy civil penalties. Sec. 40007. Payments for lease of Metropolitan Washington Airports. Sec. 40008. Rescission of certain amounts for the National Oceanic and Atmospheric Administration. Sec. 40009. Reduction in annual transfers to Travel Promotion Fund. Sec. 40010. Treatment of unobligated funds for alternative fuel and low-emission aviation technology. Sec. 40011. Rescission of amounts appropriated to Public Wireless Supply Chain Innovation Fund. Sec. 40012. Support for artificial intelligence under the Broadband Equity, Access, and Deployment Program. [[Page S3782]] TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES Subtitle A--Oil and Gas Leasing Sec. 50101. Onshore oil and gas leasing. Sec. 50102. Offshore oil and gas leasing. Sec. 50103. Royalties on extracted methane. Sec. 50104. Alaska oil and gas leasing. Sec. 50105. National Petroleum Reserve-Alaska. Subtitle B--Mining Sec. 50201. Coal leasing. Sec. 50202. Coal royalty. Sec. 50203. Leases for known recoverable coal resources. Sec. 50204. Authorization to mine Federal coal. Subtitle C--Lands Sec. 50301. Mandatory disposal of Bureau of Land management land for housing. Sec. 50302. Timber sales and long-term contracting for the Forest Service and the Bureau of Land Management. Sec. 50303. Renewable energy fees on Federal land. Sec. 50304. Renewable energy revenue sharing. Sec. 50305. Rescission of National Park Service and Bureau of Land Management funds. Sec. 50306. Celebrating America's 250th anniversary. Subtitle D--Energy Sec. 50401. Strategic Petroleum Reserve. Sec. 50402. Repeals; rescissions. Sec. 50403. Energy dominance financing. Sec. 50404. Transformational artificial intelligence models. Subtitle E--Water Sec. 50501. Water conveyance and surface water storage enhancement. TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS Sec. 60001. Rescission of funding for clean heavy-duty vehicles. Sec. 60002. Repeal of Greenhouse Gas Reduction Fund. Sec. 60003. Rescission of funding for diesel emissions reductions. Sec. 60004. Rescission of funding to address air pollution. Sec. 60005. Rescission of funding to address air pollution at schools. Sec. 60006. Rescission of funding for the low emissions electricity program. Sec. 60007. Rescission of funding for section 211(o) of the Clean Air Act. Sec. 60008. Rescission of funding for implementation of the American Innovation and Manufacturing Act. Sec. 60009. Rescission of funding for enforcement technology and public information. Sec. 60010. Rescission of funding for greenhouse gas corporate reporting. Sec. 60011. Rescission of funding for environmental product declaration assistance. Sec. 60012. Rescission of funding for methane emissions and waste reduction incentive program for petroleum and natural gas systems. Sec. 60013. Rescission of funding for greenhouse gas air pollution plans and implementation grants. Sec. 60014. Rescission of funding for environmental protection agency efficient, accurate, and timely reviews. Sec. 60015. Rescission of funding for low-embodied carbon labeling for construction materials. Sec. 60016. Rescission of funding for environmental and climate justice block grants. Sec. 60017. Rescission of funding for ESA recovery plans. Sec. 60018. Rescission of funding for environmental and climate data collection. Sec. 60019. Rescission of neighborhood access and equity grant program. Sec. 60020. Rescission of funding for Federal building assistance. Sec. 60021. Rescission of funding for low-carbon materials for Federal buildings. Sec. 60022. Rescission of funding for GSA emerging and sustainable technologies. Sec. 60023. Rescission of environmental review implementation funds. Sec. 60024. Rescission of low-carbon transportation materials grants. Sec. 60025. John F. Kennedy Center for the Performing Arts. Sec. 60026. Project sponsor opt-in fees for environmental reviews. TITLE VII--FINANCE Subtitle A--Tax Sec. 70001. References to the Internal Revenue Code of 1986, etc. Chapter 1--Providing Permanent Tax Relief for Middle-class Families and Workers Sec. 70101. Extension and enhancement of reduced rates. Sec. 70102. Extension and enhancement of increased standard deduction. Sec. 70103. Termination of deduction for personal exemptions other than temporary senior deduction. Sec. 70104. Extension and enhancement of increased child tax credit. Sec. 70105. Extension and enhancement of deduction for qualified business income. Sec. 70106. Extension and enhancement of increased estate and gift tax exemption amounts. Sec. 70107. Extension of increased alternative minimum tax exemption amounts and modification of phaseout thresholds. Sec. 70108. Extension and modification of limitation on deduction for qualified residence interest. Sec. 70109. Extension and modification of limitation on casualty loss deduction. Sec. 70110. Termination of miscellaneous itemized deductions other than educator expenses. Sec. 70111. Limitation on tax benefit of itemized deductions. Sec. 70112. Extension and modification of qualified transportation fringe benefits. Sec. 70113. Extension and modification of limitation on deduction and exclusion for moving expenses. Sec. 70114. Extension and modification of limitation on wagering losses. Sec. 70115. Extension and enhancement of increased limitation on contributions to ABLE accounts. Sec. 70116. Extension and enhancement of savers credit allowed for ABLE contributions. Sec. 70117. Extension of rollovers from qualified tuition programs to ABLE accounts permitted. Sec. 70118. Extension of treatment of certain individuals performing services in the Sinai Peninsula and enhancement to include additional areas. Sec. 70119. Extension and modification of exclusion from gross income of student loans discharged on account of death or disability. Sec. 70120. Limitation on individual deductions for certain state and local taxes, etc. Chapter 2--Delivering on Presidential Priorities to Provide New Middle- class Tax Relief Sec. 70201. No tax on tips. Sec. 70202. No tax on overtime. Sec. 70203. No tax on car loan interest. Sec. 70204. Trump accounts and contribution pilot program. Chapter 3--Establishing Certainty and Competitiveness for American Job Creators subchapter a--permanent u.s. business tax reform and boosting domestic investment Sec. 70301. Full expensing for certain business property. Sec. 70302. Full expensing of domestic research and experimental expenditures. Sec. 70303. Modification of limitation on business interest. Sec. 70304. Extension and enhancement of paid family and medical leave credit. Sec. 70305. Exceptions from limitations on deduction for business meals. Sec. 70306. Increased dollar limitations for expensing of certain depreciable business assets. Sec. 70307. Special depreciation allowance for qualified production property. Sec. 70308. Enhancement of advanced manufacturing investment credit. Sec. 70309. Spaceports are treated like airports under exempt facility bond rules. subchapter b--permanent america-first international tax reforms PART I--Foreign Tax Credit Sec. 70311. Modifications related to foreign tax credit limitation. Sec. 70312. Modifications to determination of deemed paid credit for taxes properly attributable to tested income. Sec. 70313. Sourcing certain income from the sale of inventory produced in the United States. PART II--Foreign-derived Deduction Eligible Income and Net CFC Tested Income Sec. 70321. Modification of deduction for foreign-derived deduction eligible income and net CFC tested income. Sec. 70322. Determination of deduction eligible income. Sec. 70323. Rules related to deemed intangible income. PART III--Base Erosion Minimum Tax Sec. 70331. Extension and modification of base erosion minimum tax amount. PART IV--Business Interest Limitation Sec. 70341. Coordination of business interest limitation with interest capitalization provisions. Sec. 70342. Definition of adjusted taxable income for business interest limitation. PART V--Other International Tax Reforms Sec. 70351. Permanent extension of look-thru rule for related controlled foreign corporations. Sec. 70352. Repeal of election for 1-month deferral in determination of taxable year of specified foreign corporations. Sec. 70353. Restoration of limitation on downward attribution of stock ownership in applying constructive ownership rules. [[Page S3783]] Sec. 70354. Modifications to pro rata share rules. Chapter 4--Investing in American Families, Communities, and Small Businesses subchapter a--permanent investments in families and children Sec. 70401. Enhancement of employer-provided child care credit. Sec. 70402. Enhancement of adoption credit. Sec. 70403. Recognizing Indian tribal governments for purposes of determining whether a child has special needs for purposes of the adoption credit. Sec. 70404. Enhancement of the dependent care assistance program. Sec. 70405. Enhancement of child and dependent care tax credit. subchapter b--permanent investments in students and reforms to tax- exempt institutions Sec. 70411. Tax credit for contributions of individuals to scholarship granting organizations. Sec. 70412. Exclusion for employer payments of student loans. Sec. 70413. Additional expenses treated as qualified higher education expenses for purposes of 529 accounts. Sec. 70414. Certain postsecondary credentialing expenses treated as qualified higher education expenses for purposes of 529 accounts. Sec. 70415. Modification of excise tax on investment income of certain private colleges and universities. Sec. 70416. Expanding application of tax on excess compensation within tax-exempt organizations. subchapter c--permanent investments in community development Sec. 70421. Permanent renewal and enhancement of opportunity zones. Sec. 70422. Permanent enhancement of low-income housing tax credit. Sec. 70423. Permanent extension of new markets tax credit. Sec. 70424. Permanent and expanded reinstatement of partial deduction for charitable contributions of individuals who do not elect to itemize. Sec. 70425. 0.5 percent floor on deduction of contributions made by individuals. Sec. 70426. 1-percent floor on deduction of charitable contributions made by corporations. Sec. 70427. Permanent increase in limitation on cover over of tax on distilled spirits. Sec. 70428. Nonprofit community development activities in remote native villages. Sec. 70429. Adjustment of charitable deduction for certain expenses incurred in support of Native Alaskan subsistence whaling. Sec. 70430. Exception to percentage of completion method of accounting for certain residential construction contracts. subchapter d--permanent investments in small business and rural america Sec. 70431. Expansion of qualified small business stock gain exclusion. Sec. 70432. Repeal of revision to de minimis rules for third party network transactions. Sec. 70433. Increase in threshold for requiring information reporting with respect to certain payees. Sec. 70434. Treatment of certain qualified sound recording productions. Sec. 70435. Exclusion of interest on loans secured by rural or agricultural real property. Sec. 70436. Reduction of transfer and manufacturing taxes for certain devices. Sec. 70437. Treatment of capital gains from the sale of certain farmland property. Sec. 70438. Extension of rules for treatment of certain disaster- related personal casualty losses. Chapter 5--Ending Green New Deal Spending, Promoting America-first Energy, and Other Reforms subchapter a--termination of green new deal subsidies Sec. 70501. Termination of previously-owned clean vehicle credit. Sec. 70502. Termination of clean vehicle credit. Sec. 70503. Termination of qualified commercial clean vehicles credit. Sec. 70504. Termination of alternative fuel vehicle refueling property credit. Sec. 70505. Termination of energy efficient home improvement credit. Sec. 70506. Termination of residential clean energy credit. Sec. 70507. Termination of energy efficient commercial buildings deduction. Sec. 70508. Termination of new energy efficient home credit. Sec. 70509. Termination of cost recovery for energy property and qualified clean energy facilities, property, and technology. Sec. 70510. Modifications of zero-emission nuclear power production credit. Sec. 70511. Termination of clean hydrogen production credit. Sec. 70512. Termination and restrictions on clean electricity production credit. Sec. 70513. Termination and restrictions on clean electricity investment credit. Sec. 70514. Phase-out and restrictions on advanced manufacturing production credit. Sec. 70515. Restriction on the extension of advanced energy project credit program. subchapter b--enhancement of america-first energy policy Sec. 70521. Extension and modification of clean fuel production credit. Sec. 70522. Restrictions on carbon oxide sequestration credit. Sec. 70523. Intangible drilling and development costs taken into account for purposes of computing adjusted financial statement income. Sec. 70524. Income from hydrogen storage, carbon capture, advanced nuclear, hydropower, and geothermal energy added to qualifying income of certain publicly traded partnerships. Sec. 70525. Allow for payments to certain individuals who dye fuel. subchapter c--other reforms Sec. 70531. Modifications to de minimis entry privilege for commercial shipments. Chapter 6--Enhancing Deduction and Income Tax Credit Guardrails, and Other Reforms Sec. 70601. Modification and extension of limitation on excess business losses of noncorporate taxpayers. Sec. 70602. Treatment of payments from partnerships to partners for property or services. Sec. 70603. Excessive employee remuneration from controlled group members and allocation of deduction. Sec. 70604. Third party litigation funding reform. Sec. 70605. Excise tax on certain remittance transfers. Sec. 70606. Enforcement provisions with respect to COVID-related employee retention credits. Sec. 70607. Social security number requirement for American Opportunity and Lifetime Learning credits. Sec. 70608. Task force on the replacement of Direct File. Subtitle B--Health Chapter 1--Medicaid subchapter a--reducing fraud and improving enrollment processes Sec. 71101. Moratorium on implementation of rule relating to eligibility and enrollment in Medicare Savings Programs. Sec. 71102. Moratorium on implementation of rule relating to eligibility and enrollment for Medicaid, CHIP, and the Basic Health Program. Sec. 71103. Reducing duplicate enrollment under the Medicaid and CHIP programs. Sec. 71104. Ensuring deceased individuals do not remain enrolled. Sec. 71105. Ensuring deceased providers do not remain enrolled. Sec. 71106. Payment reduction related to certain erroneous excess payments under Medicaid. Sec. 71107. Eligibility redeterminations. Sec. 71108. Revising home equity limit for determining eligibility for long-term care services under the Medicaid program. Sec. 71109. Alien Medicaid eligibility. Sec. 71110. Expansion FMAP for certain States providing payments for health care furnished to certain individuals. Sec. 71111. Expansion FMAP for emergency Medicaid. subchapter b--preventing wasteful spending Sec. 71112. Moratorium on implementation of rule relating to staffing standards for long-term care facilities under the Medicare and Medicaid programs. Sec. 71113. Reducing State Medicaid costs. Sec. 71114. Prohibiting Federal Medicaid and CHIP funding for certain items and services. Sec. 71115. Federal payments to prohibited entities. subchapter c--stopping abusive financing practices Sec. 71116. Sunsetting increased FMAP incentive. Sec. 71117. Provider taxes. Sec. 71118. State directed payments. Sec. 71119. Requirements regarding waiver of uniform tax requirement for Medicaid provider tax. Sec. 71120. Requiring budget neutrality for Medicaid demonstration projects under section 1115. subchapter d--increasing personal accountability Sec. 71121. Requirement for States to establish Medicaid community engagement requirements for certain individuals. [[Page S3784]] Sec. 71122. Modifying cost sharing requirements for certain expansion individuals under the Medicaid program. subchapter e--expanding access to care Sec. 71123. Making certain adjustments to coverage of home or community-based services under Medicaid. Sec. 71124. Determination of FMAP for high-poverty States. Chapter 2--Medicare subchapter a--strengthening eligibility requirements Sec. 71201. Limiting Medicare coverage of certain individuals. subchapter b--improving services for seniors Sec. 71202. Temporary payment increase under the medicare physician fee schedule to account for exceptional circumstances. Sec. 71203. Expanding and clarifying the exclusion for orphan drugs under the Drug Price Negotiation Program. Sec. 71204. Application of cost-of-living adjustment to non-labor related portion for hospital outpatient department services furnished in Alaska and Hawaii. Chapter 3--Health Tax subchapter a--improving eligibility criteria Sec. 71301. Permitting premium tax credit only for certain individuals. Sec. 71302. Disallowing premium tax credit during periods of medicaid ineligibility due to alien status. subchapter b--preventing waste, fraud, and abuse Sec. 71303. Requiring verification of eligibility for premium tax credit. Sec. 71304. Disallowing premium tax credit in case of certain coverage enrolled in during special enrollment period. Sec. 71305. Eliminating limitation on recapture of advance payment of premium tax credit. subchapter c--enhancing choice for patients Sec. 71306. Permanent extension of safe harbor for absence of deductible for telehealth services. Sec. 71307. Allowance of bronze and catastrophic plans in connection with health savings accounts. Sec. 71308. Treatment of direct primary care service arrangements. Chapter 4--Protecting Rural Hospitals and Providers Sec. 71401. Rural Health Transformation Program. Subtitle C--Increase in Debt Limit Sec. 72001. Modification of limitation on the public debt. TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS Subtitle A--Exemption of Certain Assets Sec. 80001. Exemption of certain assets. Subtitle B--Loan Limits Sec. 81001. Establishment of loan limits for graduate and professional students and parent borrowers; termination of graduate and professional PLUS loans. Subtitle C--Loan Repayment Sec. 82001. Loan repayment. Sec. 82002. Deferment; forbearance. Sec. 82003. Loan rehabilitation. Sec. 82004. Public service loan forgiveness. Sec. 82005. Student loan servicing. Subtitle D--Pell Grants Sec. 83001. Eligibility. Sec. 83002. Workforce Pell Grants. Sec. 83003. Pell shortfall. Sec. 83004. Federal Pell Grant exclusion relating to other grant aid. Subtitle E--Accountability Sec. 84001. Ineligibility based on low earning outcomes. Subtitle F--Regulatory Relief Sec. 85001. Delay of rule relating to borrower defense to repayment. Sec. 85002. Delay of rule relating to closed school discharges. Subtitle G--Limitation on Authority Sec. 86001. Limitation on proposing or issuing regulations and executive actions. Subtitle H--Garden of Heroes Sec. 87001. Garden of Heroes. Subtitle I--Office of Refugee Resettlement Sec. 88001. Potential sponsor vetting for unaccompanied alien children appropriation. TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS Subtitle A--Homeland Security Provisions Sec. 90001. Border infrastructure and wall system. Sec. 90002. U.S. Customs and Border Protection personnel, fleet vehicles, and facilities. Sec. 90003. Detention capacity. Sec. 90004. Border security, technology, and screening. Sec. 90005. State and local assistance. Sec. 90006. Presidential residence protection. Sec. 90007. Department of Homeland Security appropriations for border support. Subtitle B--Governmental Affairs Provisions Sec. 90101. FEHB improvements. Sec. 90102. Pandemic Response Accountability Committee. Sec. 90103. Appropriation for the Office of Management and Budget. TITLE X--COMMITTEE ON THE JUDICIARY Subtitle A--Immigration and Law Enforcement Matters PART I--Immigration Fees Sec. 100001. Applicability of the immigration laws. Sec. 100002. Asylum fee. Sec. 100003. Employment authorization document fees. Sec. 100004. Immigration parole fee. Sec. 100005. Special immigrant juvenile fee. Sec. 100006. Temporary protected status fee. Sec. 100007. Visa integrity fee. Sec. 100008. Form I-94 fee. Sec. 100009. Annual asylum fee. Sec. 100010. Fee relating to renewal and extension of employment authorization for parolees. Sec. 100011. Fee relating to renewal or extension of employment authorization for asylum applicants. Sec. 100012. Fee relating to renewal and extension of employment authorization for aliens granted temporary protected status. Sec. 100013. Fees relating to applications for adjustment of status. Sec. 100014. Electronic System for Travel Authorization fee. Sec. 100015. Electronic Visa Update System fee. Sec. 100016. Fee for aliens ordered removed in absentia. Sec. 100017. Inadmissible alien apprehension fee. Sec. 100018. Amendment to authority to apply for asylum. PART II--Immigration and Law Enforcement Funding Sec. 100051. Appropriation for the Department of Homeland Security. Sec. 100052. Appropriation for U.S. Immigration and Customs Enforcement. Sec. 100053. Appropriation for Federal Law Enforcement Training Centers. Sec. 100054. Appropriation for the Department of Justice. Sec. 100055. Bridging Immigration-related Deficits Experienced Nationwide Reimbursement Fund. Sec. 100056. Appropriation for the Bureau of Prisons. Sec. 100057. Appropriation for the United States Secret Service. Subtitle B--Judiciary Matters Sec. 100101. Appropriation to the Administrative Office of the United States Courts. Sec. 100102. Appropriation to the Federal Judicial Center. Subtitle C--Radiation Exposure Compensation Matters Sec. 100201. Extension of fund. Sec. 100202. Claims relating to atmospheric testing. Sec. 100203. Claims relating to uranium mining. Sec. 100205. Limitations on claims. TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY Subtitle A--Nutrition SEC. 10101. RE-EVALUATION OF THRIFTY FOOD PLAN. (a) In General.--Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) is amended by striking subsection (u) and inserting the following: ``(u) Thrifty Food Plan.-- ``(1) In general.--The term `thrifty food plan' means the diet required to feed a family of 4 persons consisting of a man and a woman ages 20 through 50, a child ages 6 through 8, and a child ages 9 through 11 using the items and quantities of food described in the report of the Department of Agriculture entitled `Thrifty Food Plan, 2021', and each successor report updated pursuant to this subsection, subject to the conditions that-- ``(A) the relevant market baskets of the thrifty food plan shall only be changed pursuant to paragraph (4); ``(B) the cost of the thrifty food plan shall be the basis for uniform allotments for all households, regardless of the actual composition of the household; and ``(C) the cost of the thrifty food plan may only be adjusted in accordance with this subsection. ``(2) Household adjustments.--The Secretary shall make household adjustments using the following ratios of household size as a percentage of the maximum 4-person allotment: ``(A) For a 1-person household, 30 percent. ``(B) For a 2-person household, 55 percent. ``(C) For a 3-person household, 79 percent. ``(D) For a 4-person household, 100 percent. ``(E) For a 5-person household, 119 percent. ``(F) For a 6-person household, 143 percent. ``(G) For a 7-person household, 158 percent. ``(H) For an 8-person household, 180 percent. ``(I) For a household of 9 persons or more, an additional 22 percent per person, which additional percentage shall not total more than 200 percent. ``(3) Allowable cost adjustments.--The Secretary shall-- [[Page S3785]] ``(A) make cost adjustments in the thrifty food plan for Hawaii and the urban and rural parts of Alaska to reflect the cost of food in Hawaii and urban and rural Alaska; ``(B) make cost adjustments in the separate thrifty food plans for Guam and the Virgin Islands of the United States to reflect the cost of food in those States, but not to exceed the cost of food in the 50 States and the District of Columbia; and ``(C) on October 1, 2025, and on each October 1 thereafter, adjust the cost of the thrifty food plan to reflect changes in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor, for the most recent 12-month period ending in June. ``(4) Re-evaluation of market baskets.-- ``(A) Re-evaluation.--Not earlier than October 1, 2027, the Secretary may re-evaluate the market baskets of the thrifty food plan based on current food prices, food composition data, consumption patterns, and dietary guidance. ``(B) Cost neutrality.--The Secretary shall not increase the cost of the thrifty food plan based on a re-evaluation under this paragraph.''. (b) Conforming Amendments.-- (1) Section 16(c)(1)(A)(ii)(II) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(A)(ii)(II)) is amended by striking ``section 3(u)(4)'' and inserting ``section 3(u)(3)''. (2) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ``section 3(u)(4)'' and inserting ``section 3(u)(3)''. (3) Section 27(a)(2) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)(2))) is amended by striking ``section 3(u)(4)'' each place it appears and inserting ``section 3(u)(3)''. SEC. 10102. MODIFICATIONS TO SNAP WORK REQUIREMENTS FOR ABLE- BODIED ADULTS. (a) Exceptions.--Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended by striking paragraph (3) and inserting the following: ``(3) Exceptions.--Paragraph (2) shall not apply to an individual if the individual is-- ``(A) under 18, or over 65, years of age; ``(B) medically certified as physically or mentally unfit for employment; ``(C) a parent or other member of a household with responsibility for a dependent child under 14 years of age; ``(D) otherwise exempt under subsection (d)(2); ``(E) a pregnant woman; ``(F) an Indian or an Urban Indian (as such terms are defined in paragraphs (13) and (28) of section 4 of the Indian Health Care Improvement Act); or ``(G) a California Indian described in section 809(a) of the Indian Health Care Improvement Act.''. (b) Standardizing Enforcement.--Section 6(o)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)(4)) is amended-- (1) in subparagraph (A), by striking clause (ii) and inserting the following: ``(ii) is in a noncontiguous State and has an unemployment rate that is at or above 1.5 times the national unemployment rate8 percent.''; and (2) by adding at the end the following: ``(C) Definition of noncontiguous state.-- ``(i) In general.--In this paragraph, the term `noncontiguous State' means a State that is not 1 of the contiguous 48 States or the District of Columbia. ``(ii) Exclusions.--The term `noncontiguous State' does not include Gaum or the Virgin Islands of the United States.''. (c) Waiver for Noncontiguous States.--Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended-- (1) by redesignating paragraph (7) as paragraph (8); and (2) by inserting after paragraph (6) the following: ``(7) Exemption for noncontiguous states.-- ``(A) Definition of noncontiguous state.-- ``(i) In general.--In this paragraph, the term `noncontiguous State' means a State that is not 1 of the contiguous 48 States or the District of Columbia. ``(ii) Exclusions.--In this paragraph, the term `noncontiguous State' does not include Guam or the Virgin Islands of the United States. ``(B) Exemption.--Subject to subparagraph (D), the Secretary may exempt individuals in a noncontiguous State from compliance with the requirements of paragraph (2) if-- ``(i) the State agency submits to the Secretary a request for that exemption, made in such form and at such time as the Secretary may require, and including the information described in subparagraph (C); and ``(ii) the Secretary determines that based on that request, the State agency is demonstrating a good faith effort to comply with the requirements of paragraph (2). ``(C) Good faith effort determination.--In determining whether a State agency is demonstrating a good faith effort for purposes of subparagraph (B)(ii), the Secretary shall consider-- ``(i) any actions taken by the State agency toward compliance with the requirements of paragraph (2); ``(ii) any significant barriers to or challenges in meeting those requirements, including barriers or challenges relating to funding, design, development, procurement, or installation of necessary systems or resources; ``(iii) the detailed plan and timeline of the State agency for achieving full compliance with those requirements, including any milestones (as defined by the Secretary); and ``(iv) any other criteria determined appropriate by the Secretary. ``(D) Duration of exemption.-- ``(i) In general.--An exemption granted under subparagraph (B) shall expire not later than December 31, 2028, and may not be renewed beyond that date. ``(ii) Early termination.--The Secretary may terminate an exemption granted under subparagraph (B) prior to the expiration date of that exemption if the Secretary determines that the State agency-- ``(I) has failed to comply with the reporting requirements described in subparagraph (E); or ``(II) based on the information provided pursuant to subparagraph (E), failed to make continued good faith efforts toward compliance with the requirements of this subsection. ``(E) Reporting requirements.--A State agency granted an exemption under subparagraph (B) shall submit to the Secretary-- ``(i) quarterly progress reports on the status of the State agency in achieving the milestones toward full compliance described in subparagraph (C)(iii); and ``(ii) information on specific risks or newly identified barriers or challenges to full compliance, including the plan of the State agency to mitigate those risks, barriers, or challenges.''. SEC. 10103. AVAILABILITY OF STANDARD UTILITY ALLOWANCES BASED ON RECEIPT OF ENERGY ASSISTANCE. (a) Standard Utility Allowance.--Section 5(e)(6)(C)(iv)(I) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)(iv)(I)) is amended by inserting ``with an elderly or disabled member'' after ``households''. (b) Third-party Energy Assistance Payments.--Section 5(k)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(k)(4)) is amended-- (1) in subparagraph (A), by inserting ``without an elderly or disabled member'' before ``shall be''; and (2) in subparagraph (B), by inserting ``with an elderly or disabled member'' before ``under a State law''. SEC. 10104. RESTRICTIONS ON INTERNET EXPENSES. Section 5(e)(6) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)) is amended by adding at the end the following: ``(E) Restrictions on internet expenses.--Any service fee associated with internet connection shall not be used in computing the excess shelter expense deduction under this paragraph.''. SEC. 10105. MATCHING FUNDS REQUIREMENTS. (a) In General.--Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended-- (1) by striking ``(a) Subject to'' and inserting the following: ``(a) Program.-- ``(1) Establishment.--Subject to''; and (2) by adding at the end the following: ``(2) State quality control incentive.-- ``(A) Definition of payment error rate.--In this paragraph, the term `payment error rate' has the meaning given the term in section 16(c)(2). ``(B) State cost share.-- ``(i) In general.--Beginning in fiscal year 2028, if the payment error rate of a State as determined under clause (ii) is-- ``(I) less than 6 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 100 percent, and the State share shall be 0 percent; ``(II) equal to or greater than 6 percent but less than 8 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 95 percent, and the State share shall be 5 percent; ``(III) equal to or greater than 8 percent but less than 10 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 90 percent, and the State share shall be 10 percent; and ``(IV) equal to or greater than 10 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 85 percent, and the State share shall be 15 percent. ``(ii) Elections.-- ``(I) Fiscal year 2028.--For fiscal year 2028, to calculate the applicable State share under clause (i), a State may elect to use the payment error rate of the State from fiscal year 2025 or 2026. ``(II) Fiscal year 2029 and thereafter.--For fiscal year 2029 and each fiscal year thereafter, to calculate the applicable State share under clause (i), the Secretary shall use the payment error rate of the State for the third fiscal year preceding the fiscal year for which the State share is being calculated. ``(3) Maximum federal payment.--The Secretary may not pay towards the cost of an allotment described in paragraph (1) an amount that is greater than the applicable Federal share under paragraph (2). ``(4) Waiver authority.-- ``(A) In general.--The Secretary may waive the requirement under paragraph (2) for a noncontiguous State (excluding Guam and the Virgin Islands of the United States) for a period of not more than 2 years if-- ``(i) the Secretary determines that the waiver is necessary; and [[Page S3786]] ``(ii) the noncontiguous State is-- ``(I) actively implementing a corrective action plan (as described in section 275.17 of title 7, Code of Federal Regulations (or a successor regulation)); and ``(II) carrying out any other activities determined necessary by the Secretary to reduce its payment error rate (as defined in paragraph (2)). ``(B) Termination of authority.--The waiver authority under subparagraph (A) shall terminate on the date that is 4 years after the date of enactment of this paragraph.''. (b) Limitation on Authority.--Section 13(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in the first sentence by inserting ``or the payment or disposition of a State share under section 4(a)(2)'' after ``16(c)(1)(D)(i)(II)''. SEC. 10106. ADMINISTRATIVE COST SHARING. Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the matter preceding paragraph (1) by striking ``agency an amount equal to 50 per centum'' and inserting ``agency, through fiscal year 2026, 50 percent, and for fiscal year 2027 and each fiscal year thereafter, 25 percent,''. SEC. 10107. NATIONAL EDUCATION AND OBESITY PREVENTION GRANT PROGRAM. Section 28(d)(1)(F) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a(d)(1)(F)) is amended by striking ``for fiscal year 2016 and each subsequent fiscal year'' and inserting ``for each of fiscal years 2016 through 2025''. SEC. 10108. ALIEN SNAP ELIGIBILITY. Section 6(f) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(f)) is amended to read as follows: ``(f) No individual who is a member of a household otherwise eligible to participate in the supplemental nutrition assistance program under this section shall be eligible to participate in the supplemental nutrition assistance program as a member of that or any other household unless he or she is-- ``(1) a resident of the United States; and ``(2) either-- ``(A) a citizen or national of the United States; ``(B) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act, excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country; ``(C) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(D) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The income (less, at State option, a pro rata share) and financial resources of the individual rendered ineligible to participate in the supplemental nutrition assistance program under this subsection shall be considered in determining the eligibility and the value of the allotment of the household of which such individual is a member.''. Subtitle B--Forestry SEC. 10201. RESCISSION OF AMOUNTS FOR FORESTRY. The unobligated balances of amounts appropriated by the following provisions of Public Law 117-169 are rescinded: (1) Paragraphs (3) and (4) of section 23001(a) (136 Stat. 2023). (2) Paragraphs (1) through (4) of section 23002(a) (136 Stat. 2025). (3) Section 23003(a)(2) (136 Stat. 2026). (4) Section 23005 (136 Stat. 2027). Subtitle C--Commodities SEC. 10301. EFFECTIVE REFERENCE PRICE; REFERENCE PRICE. (a) Effective Reference Price.--Section 1111(8)(B)(ii) of the Agricultural Act of 2014 (7 U.S.C. 9011(8)(B)(ii)) is amended by striking ``85'' and inserting ``beginning with the crop year 2025, 88''. (b) Reference Price.--Section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011) is amended by striking paragraph (19) and inserting the following: ``(19) Reference price.-- ``(A) In general.--Effective beginning with the 2025 crop year, subject to subparagraphs (B) and (C), the term `reference price', with respect to a covered commodity for a crop year, means the following: ``(i) For wheat, $6.35 per bushel. ``(ii) For corn, $4.10 per bushel. ``(iii) For grain sorghum, $4.40 per bushel. ``(iv) For barley, $5.45 per bushel. ``(v) For oats, $2.65 per bushel. ``(vi) For long grain rice, $16.90 per hundredweight. ``(vii) For medium grain rice, $16.90 per hundredweight. ``(viii) For soybeans, $10.00 per bushel. ``(ix) For other oilseeds, $23.75 per hundredweight. ``(x) For peanuts, $630.00 per ton. ``(xi) For dry peas, $13.10 per hundredweight. ``(xii) For lentils, $23.75 per hundredweight. ``(xiii) For small chickpeas, $22.65 per hundredweight. ``(xiv) For large chickpeas, $25.65 per hundredweight. ``(xv) For seed cotton, $0.42 per pound. ``(B) Effectiveness.--Effective beginning with the 2031 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price in the previous crop year multiplied by 1.005. ``(C) Limitation.--In no case shall a reference price for a covered commodity exceed 113 percent of the reference price for such covered commodity listed in subparagraph (A).''. SEC. 10302. BASE ACRES. Section 1112 of the Agricultural Act of 2014 (7 U.S.C. 9012) is amended-- (1) in subsection (d)(3)(A), by striking ``2023'' and inserting ``2031''; and (2) by adding at the end the following: ``(e) Additional Base Acres.-- ``(1) In general.--As soon as practicable after the date of enactment of this subsection, and notwithstanding subsection (a), the Secretary shall provide notice to owners of eligible farms pursuant to paragraph (3) and allocate to those eligible farms a total of not more than an additional 30,000,000 base acres in the manner provided in this subsection. An owner of a farm that is eligible to receive an allocation of base acres may elect to not receive that allocation by notifying the Secretary not later than 90 days after receipt of the notice provided by the Secretary under this paragraph. ``(2) Content of notice.--The notice under paragraph (1) shall include the following: ``(A) Information that the allocation is occurring. ``(B) Information regarding the eligibility of the farm for an allocation of base acres under paragraph (3). ``(C) Information regarding how an owner may appeal a determination of ineligibility for an allocation of base acres under paragraph (3) through an appeals process established by the Secretary. ``(3) Eligibility.-- ``(A) In general.--Subject to subparagraph (D), effective beginning with the 2026 crop year, a farm is eligible to receive an allocation of base acres if, with respect to the farm, the amount described in subparagraph (B) exceeds the amount described in subparagraph (C). ``(B) 5-year average sum.--The amount described in this subparagraph, with respect to a farm, is the sum of-- ``(i) the 5-year average of-- ``(I) the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage or other similar purposes for the 2019 through 2023 crop years; and ``(II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; plus ``(ii) the lesser of-- ``(I) 15 percent of the total acres on the farm; and ``(II) the 5-year average of-- ``(aa) the acreage planted on the farm to eligible noncovered commodities for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and ``(bb) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to eligible noncovered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary. ``(C) Total number of base acres for covered commodities.-- The amount described in this subparagraph, with respect to a farm, is the total number of base acres for covered commodities on the farm (excluding unassigned crop base), as in effect on September 30, 2024. ``(D) Effect of no recent plantings of covered commodities.--In the case of a farm for which the amount determined under clause (i) of subparagraph (B) is equal to zero, that farm shall be ineligible to receive an allocation of base acres under this subsection. ``(E) Acreage planted on the farm to eligible noncovered commodities defined.--In this paragraph, the term `acreage planted on the farm to eligible noncovered commodities' means acreage planted on a farm to commodities other than covered commodities, trees, bushes, vines, grass, or pasture (including cropland that was idle or fallow), as determined by the Secretary. ``(4) Number of base acres.--Subject to paragraphs (3) and (8), the number of base acres allocated to an eligible farm shall-- ``(A) be equal to the difference obtained by subtracting the amount determined under subparagraph (C) of paragraph (3) from the amount determined under subparagraph (B) of that paragraph; and ``(B) include unassigned crop base. ``(5) Allocation of acres.-- ``(A) Allocation.--The Secretary shall allocate the number of base acres under paragraph (4) among those covered commodities planted on the farm at any time during the 2019 through 2023 crop years. ``(B) Allocation formula.--The allocation of additional base acres for covered commodities shall be in proportion to the ratio of-- ``(i) the 5-year average of-- ``(I) the acreage planted on the farm to each covered commodity for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and ``(II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to that covered commodity because of drought, flood, or [[Page S3787]] other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; to ``(ii) the 5-year average determined under paragraph (3)(B)(i). ``(C) Inclusion of all 5 years in average.--For the purpose of determining a 5-year acreage average under subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not planted. ``(D) Treatment of multiple planting or prevented planting.--For the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2019 through 2023 crop years to covered commodities, if the acreage that was planted or prevented from being planted was devoted to another covered commodity in the same crop year (other than a covered commodity produced under an established practice of double cropping), the owner may elect the covered commodity to be used for that crop year in determining the 5-year average, but may not include both the initial covered commodity and the subsequent covered commodity. ``(E) Limitation.--The allocation of additional base acres among covered commodities on a farm under this paragraph may not result in a total number of base acres for the farm in excess of the total number of acres on the farm. ``(6) Reduction by the secretary.--In carrying out this subsection, if the total number of eligible acres allocated to base acres across all farms in the United States under this subsection would exceed 30,000,000 acres, the Secretary shall apply an across-the-board, pro-rata reduction to the number of eligible acres to ensure the number of allocated base acres under this subsection is equal to 30,000,000 acres. ``(7) Payment yield.--Beginning with crop year 2026, for the purpose of making price loss coverage payments under section 1116, the Secretary shall establish payment yields to base acres allocated under this subsection equal to-- ``(A) the payment yield established on the farm for the applicable covered commodity; and ``(B) if no such payment yield for the applicable covered commodity exists, a payment yield-- ``(i) equal to the average payment yield for the covered commodity for the county in which the farm is situated; or ``(ii) determined pursuant to section 1113(c). ``(8) Treatment of new owners.--In the case of a farm for which the owner on the date of enactment of this subsection was not the owner for the 2019 through 2023 crop years, the Secretary shall use the planting history of the prior owner or owners of that farm for purposes of determining-- ``(A) eligibility under paragraph (3); ``(B) eligible acres under paragraph (4); and ``(C) the allocation of acres under paragraph (5).''. SEC. 10303. PRODUCER ELECTION. (a) In General.--Section 1115 of the Agricultural Act of 2014 (7 U.S.C. 9015) is amended-- (1) in subsection (a), in the matter preceding paragraph (1), by striking ``2023'' and inserting ``2031''; (2) in subsection (c)-- (A) in the matter preceding paragraph (1)-- (i) by striking ``crop year or'' and inserting ``crop year,''; and (ii) by inserting ``or the 2026 crop year,'' after ``2019 crop year,''; (B) in paragraph (1)-- (i) by striking ``crop year or'' and inserting ``crop year,''; and (ii) by inserting ``or the 2026 crop year,'' after ``2019 crop year,''; and (C) in paragraph (2)-- (i) in subparagraph (A), by striking ``and'' at the end; (ii) in subparagraph (B), by striking the period at the end and inserting ``; and''; and (iii) by adding at the end the following: ``(C) the same coverage for each covered commodity on the farm for the 2027 through 2031 crop years as was applicable for the 2025 crop year.''; and (3) by adding at the end the following: ``(i) Higher of Price Loss Coverage Payments and Agriculture Risk Coverage Payments.--For the 2025 crop year, the Secretary shall, on a covered commodity-by-covered commodity basis, make the higher of price loss coverage payments under section 1116 and agriculture risk coverage county coverage payments under section 1117 to the producers on a farm for the payment acres for each covered commodity on the farm.''. (b) Federal Crop Insurance Supplemental Coverage Option.-- Section 508(c)(4)(C)(iv) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)(C)(iv)) is amended by striking ``Crops for which the producer has elected under section 1116 of the Agricultural Act of 2014 to receive agriculture risk coverage and acres'' and inserting ``Acres''. SEC. 10304. PRICE LOSS COVERAGE. Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is amended-- (1) in subsection (a)(2), in the matter preceding subparagraph (A), by striking ``2023'' and inserting ``2031''; (2) in subsection (c)(1)(B)-- (A) in the subparagraph heading, by striking ``2023'' and inserting ``2031''; and (B) in the matter preceding clause (i), by striking ``2023'' and inserting ``2031''; (3) in subsection (d), in the matter preceding paragraph (1), by striking ``2025'' and inserting ``2031''; and (4) in subsection (g)-- (A) by striking ``subparagraph (F) of section 1111(19)'' and inserting ``paragraph (19)(A)(vi) of section 1111''; and (B) by striking ``2012 through 2016'' each place it appears and inserting ``2017 through 2021''. SEC. 10305. AGRICULTURE RISK COVERAGE. Section 1117 of the Agricultural Act of 2014 (7 U.S.C. 9017) is amended-- (1) in subsection (a), in the matter preceding paragraph (1), by striking ``2023'' and inserting ``2031''; (2) in subsection (c)-- (A) in paragraph (1), by inserting ``for each of the 2014 through 2024 crop years and 90 percent of the benchmark revenue for each of the 2025 through 2031 crop years'' before the period at the end; (B) by striking ``2023'' each place it appears and inserting ``2031''; and (C) in paragraph (4)(B), in the subparagraph heading, by striking ``2023'' and inserting ``2031''; (3) in subsection (d)(1), by striking subparagraph (B) and inserting the following: ``(B)(i) for each of the 2014 through 2024 crop years, 10 percent of the benchmark revenue for the crop year applicable under subsection (c); and ``(ii) for each of the 2025 through 2031 crop years, 12 percent of the benchmark revenue for the crop year applicable under subsection (c).''; and (4) in subsections (e), (g)(5), and (i)(5), by striking ``2023'' each place it appears and inserting ``2031''. SEC. 10306. EQUITABLE TREATMENT OF CERTAIN ENTITIES. (a) In General.--Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended-- (1) in subsection (a)-- (A) by redesignating paragraph (5) as paragraph (6); and (B) by inserting after paragraph (4) the following: ``(5) Qualified pass-through entity.--The term `qualified pass-through entity' means-- ``(A) a partnership (within the meaning of subchapter K of chapter 1 of the Internal Revenue Code of 1986); ``(B) an S corporation (as defined in section 1361 of that Code); ``(C) a limited liability company that does not affirmatively elect to be treated as a corporation; and ``(D) a joint venture or general partnership.''; (2) in subsections (b) and (c), by striking ``except a joint venture or general partnership'' each place it appears and inserting ``except a qualified pass-through entity''; and (3) in subsection (d), by striking ``subtitle B of title I of the Agricultural Act of 2014 or''. (b) Attribution of Payments.--Section 1001(e)(3)(B)(ii) of the Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended-- (1) in the clause heading, by striking ``joint ventures and general partnerships'' and inserting ``qualified pass-through entities''; (2) by striking ``a joint venture or a general partnership'' and inserting ``a qualified pass-through entity''; (3) by striking ``joint ventures and general partnerships'' and inserting ``qualified pass-through entities''; and (4) by striking ``the joint venture or general partnership'' and inserting ``the qualified pass-through entity''. (c) Persons Actively Engaged in Farming.--Section 1001A(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308- 1(b)(2)) is amended-- (1) subparagraphs (A) and (B), by striking ``a general partnership, a participant in a joint venture'' each place it appears and inserting ``a qualified pass-through entity''; and (2) in subparagraph (C), by striking ``a general partnership, joint venture, or similar entity'' and inserting ``a qualified pass-through entity or a similar entity''. (d) Joint and Several Liability.--Section 1001B(d) of the Food Security Act of 1985 (7 U.S.C. 1308-2(d)) is amended by striking ``partnerships and joint ventures'' and inserting ``qualified pass-through entities''. (e) Exclusion From AGI Calculation.--Section 1001D(d) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(d)) is amended by striking ``, general partnership, or joint venture'' each place it appears. SEC. 10307. PAYMENT LIMITATIONS. Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended-- (1) in subsection (b)-- (A) by striking ``The'' and inserting ``Subject to subsection (i), the''; and (B) by striking ``$125,000'' and inserting ``$155,000''; (2) in subsection (c)-- (A) by striking ``The'' and inserting ``Subject to subsection (i), the''; and (B) by striking ``$125,000'' and inserting ``$155,000''; and (3) by adding at the end the following: ``(i) Adjustment.--For the 2025 crop year and each crop year thereafter, the Secretary shall annually adjust the amounts described in subsections (b) and (c) for inflation based on the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.''. SEC. 10308. ADJUSTED GROSS INCOME LIMITATION. Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(b)) is amended-- [[Page S3788]] (1) in paragraph (1), by striking ``paragraph (3)'' and inserting ``paragraphs (3) and (4)''; and (2) by adding at the end the following: ``(4) Exception for certain operations.-- ``(A) Definitions.--In this paragraph: ``(i) Excepted payment or benefit.--The term `excepted payment or benefit' means-- ``(I) a payment or benefit under subtitle E of title I of the Agricultural Act of 2014 (7 U.S.C. 9081 et seq.); ``(II) a payment or benefit under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and ``(III) a payment or benefit described in paragraph (2)(C) received on or after October 1, 2024. ``(ii) Farming, ranching, or silviculture activities.--The term `farming, ranching, or silviculture activities' includes agri-tourism, direct-to-consumer marketing of agricultural products, the sale of agricultural equipment owned by the person or legal entity, and other agriculture-related activities, as determined by the Secretary. ``(B) Exception.--In the case of an excepted payment or benefit, the limitation established by paragraph (1) shall not apply to a person or legal entity during a crop, fiscal, or program year, as appropriate, if greater than or equal to 75 percent of the average gross income of the person or legal entity derives from farming, ranching, or silviculture activities.''. SEC. 10309. MARKETING LOANS. (a) Availability of Nonrecourse Marketing Assistance Loans for Loan Commodities.--Section 1201(b)(1) of the Agricultural Act of 2014 (7 U.S.C. 9031(b)(1)) is amended by striking ``2023'' and inserting ``2031''. (b) Loan Rates for Nonrecourse Marketing Assistance Loans.--Section 1202 of the Agricultural Act of 2014 (7 U.S.C. 9032) is amended-- (1) in subsection (b)-- (A) in the subsection heading, by striking ``2023'' and inserting ``2025''; and (B) in the matter preceding paragraph (1), by striking ``2023'' and inserting ``2025''; (2) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; (3) by inserting after subsection (b) the following: ``(c) 2026 Through 2031 Crop Years.--For purposes of each of the 2026 through 2031 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following: ``(1) In the case of wheat, $3.72 per bushel. ``(2) In the case of corn, $2.42 per bushel. ``(3) In the case of grain sorghum, $2.42 per bushel. ``(4) In the case of barley, $2.75 per bushel. ``(5) In the case of oats, $2.20 per bushel. ``(6) In the case of upland cotton, $0.55 per pound. ``(7) In the case of extra long staple cotton, $1.00 per pound. ``(8) In the case of long grain rice, $7.70 per hundredweight. ``(9) In the case of medium grain rice, $7.70 per hundredweight. ``(10) In the case of soybeans, $6.82 per bushel. ``(11) In the case of other oilseeds, $11.10 per hundredweight for each of the following kinds of oilseeds: ``(A) Sunflower seed. ``(B) Rapeseed. ``(C) Canola. ``(D) Safflower. ``(E) Flaxseed. ``(F) Mustard seed. ``(G) Crambe. ``(H) Sesame seed. ``(I) Other oilseeds designated by the Secretary. ``(12) In the case of dry peas, $6.87 per hundredweight. ``(13) In the case of lentils, $14.30 per hundredweight. ``(14) In the case of small chickpeas, $11.00 per hundredweight. ``(15) In the case of large chickpeas, $15.40 per hundredweight. ``(16) In the case of graded wool, $1.60 per pound. ``(17) In the case of nongraded wool, $0.55 per pound. ``(18) In the case of mohair, $5.00 per pound. ``(19) In the case of honey, $1.50 per pound. ``(20) In the case of peanuts, $390 per ton.''; (4) in subsection (d) (as so redesignated), by striking ``(a)(11) and (b)(11)'' and inserting ``(a)(11), (b)(11), and (c)(11)''; and (5) in subsection (e) (as so redesignated), in paragraph (1), by striking ``$0.25'' and inserting ``$0.30''. (c) Payment of Cotton Storage Costs.--Section 1204(g) of the Agricultural Act of 2014 (7 U.S.C. 9034(g)) is amended-- (1) by striking ``Effective'' and inserting the following: ``(1) Crop years 2014 through 2025.--Effective''; (2) in paragraph (1) (as so designated), by striking ``2023'' and inserting ``2025''; and (3) by adding at the end the following: ``(2) Payment of cotton storage costs.--Effective for each of the 2026 through 2031 crop years, the Secretary shall make cotton storage payments for upland cotton and extra long staple cotton available in the same manner as the Secretary provided storage payments for the 2006 crop of upland cotton, except that the payment rate shall be equal to the lesser of-- ``(A) the submitted storage charge for the current marketing year; and ``(B) in the case of storage in-- ``(i) California or Arizona, a payment rate of $4.90; and ``(ii) any other State, a payment rate of $3.00.''. (d) Loan Deficiency Payments.-- (1) Continuation.--Section 1205(a)(2)(B) of the Agricultural Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is amended by striking ``2023'' and inserting ``2031''. (2) Payments in lieu of ldps.--Section 1206 of the Agricultural Act of 2014 (7 U.S.C. 9036) is amended, in subsections (a) and (d), by striking ``2023'' each place it appears and inserting ``2031''. (e) Special Competitive Provisions for Extra Long Staple Cotton.--Section 1208(a) of the Agricultural Act of 2014 (7 U.S.C. 9038(a)) is amended, in the matter preceding paragraph (1), by striking ``2026'' and inserting ``2032''. (f) Availability of Recourse Loans.--Section 1209 of the Agricultural Act of 2014 (7 U.S.C. 9039) is amended, in subsections (a)(2), (b), and (c), by striking ``2023'' each place it appears and inserting ``2031''. SEC. 10310. REPAYMENT OF MARKETING LOANS. Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is amended-- (1) in subsection (b)-- (A) by redesignating paragraph (1) as subparagraph (A) and indenting appropriately; (B) in the matter preceding subparagraph (A) (as so redesignated), by striking ``The Secretary'' and inserting the following: ``(1) In general.--The Secretary''; and (C) by striking paragraph (2) and inserting the following: ``(B)(i) in the case of long grain rice and medium grain rice, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section; or ``(ii) in the case of upland cotton, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section. ``(2) Refund for upland cotton.--In the case of a repayment for a marketing assistance loan for upland cotton at a rate described in paragraph (1)(B)(ii), the Secretary shall provide to the producer a refund (if any) in an amount equal to the difference between the lowest prevailing world market price, as determined and adjusted by the Secretary in accordance with this section, during the 30-day period following the date on which the producer repays the marketing assistance loan and the repayment rate.''; (2) in subsection (c)-- (A) by striking the period at the end and inserting ``; and''; (B) by striking ``at the loan rate'' and inserting the following: ``at a rate that is the lesser of-- ``(1) the loan rate''; and (C) by adding at the end the following: ``(2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.''; (3) in subsection (d)-- (A) in paragraph (1), by striking ``and medium grain rice'' and inserting ``medium grain rice, and extra long staple cotton''; (B) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately; (C) in the matter preceding subparagraph (A) (as so redesignated), by striking ``For purposes'' and inserting the following: ``(1) In general.--For purposes''; and (D) by adding at the end the following: ``(2) Upland cotton.--In the case of upland cotton, for any period when price quotations for Middling (M) 1\3/32\-inch cotton are available, the formula under paragraph (1)(A) shall be based on the average of the 3 lowest-priced growths that are quoted.''; and (4) in subsection (e)-- (A) in the subsection heading, by inserting ``Extra Long Staple Cotton,'' after ``Upland Cotton,''; (B) in paragraph (2)-- (i) in the paragraph heading, by inserting ``Upland'' before ``Cotton''; and (ii) in subparagraph (B), in the matter preceding clause (i), by striking ``2024'' and inserting ``2032''; (C) by redesignating paragraph (3) as paragraph (4); and (D) by inserting after paragraph (2) the following: ``(3) Extra long staple cotton.--The prevailing world market price for extra long staple cotton determined under subsection (d)-- ``(A) shall be adjusted to United States quality and location, with the adjustment to include the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and ``(B) may be further adjusted, during the period beginning on the date of enactment of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress) and ending on July 31, 2032, if the Secretary determines the adjustment is necessary-- ``(i) to minimize potential loan forfeitures; ``(ii) to minimize the accumulation of stocks of extra long staple cotton by the Federal Government; ``(iii) to ensure that extra long staple cotton produced in the United States can be marketed freely and competitively; and ``(iv) to ensure an appropriate transition between current- crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if-- ``(I) there are insufficient current-crop price quotations; and [[Page S3789]] ``(II) the forward-crop price quotation is the lowest such quotation available.''. SEC. 10311. ECONOMIC ADJUSTMENT ASSISTANCE FOR TEXTILE MILLS. Section 1207(c) of the Agricultural Act of 2014 (7 U.S.C. 9037(c)) is amended by striking paragraph (2) and inserting the following: ``(2) Value of assistance.--The value of the assistance provided under paragraph (1) shall be-- ``(A) for the period beginning on August 1, 2013, and ending on July 31, 2025, 3 cents per pound; and ``(B) beginning on August 1, 2025, 5 cents per pound.''. SEC. 10312. SUGAR PROGRAM UPDATES. (a) Loan Rate Modifications.--Section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended-- (1) in subsection (a)-- (A) in paragraph (4), by striking ``and'' at the end; (B) in paragraph (5), by striking ``2023 crop years.'' and inserting ``2024 crop years; and''; and (C) by adding at the end the following: ``(6) 24.00 cents per pound for raw cane sugar for each of the 2025 through 2031 crop years.''; (2) in subsection (b)-- (A) in paragraph (1), by striking ``and'' at the end; (B) in paragraph (2), by striking ``2023 crop years.'' and inserting ``2024 crop years; and''; and (C) by adding at the end the following: ``(3) a rate that is equal to 136.55 percent of the loan rate per pound of raw cane sugar under subsection (a)(6) for each of the 2025 through 2031 crop years.''; and (3) in subsection (i), by striking ``2023'' and inserting ``2031''. (b) Adjustments to Commodity Credit Corporation Storage Rates.--Section 167 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7287) is amended-- (1) by striking subsection (a) and inserting the following: ``(a) In General.--For the 2025 crop year and each subsequent crop year, the Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in an amount that is not less than-- ``(1) in the case of refined sugar, 34 cents per hundredweight per month; and ``(2) in the case of raw cane sugar, 27 cents per hundredweight per month.''; and (2) in subsection (b)-- (A) in the subsection heading, by striking ``Subsequent'' and inserting ``Prior''; and (B) by striking ``and subsequent'' and inserting ``through 2024''. (c) Modernizing Beet Sugar Allotments.-- (1) Sugar estimates.--Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by striking ``2023'' and inserting ``2031''. (2) Allocation to processors.--Section 359c(g)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc(g)(2)) is amended-- (A) by striking ``In the case'' and inserting the following: ``(A) In general.--Except as provided in subparagraph (B), in the case''; and (B) by adding at the end the following: ``(B) Exception.--If the Secretary makes an upward adjustment under paragraph (1)(A), in adjusting allocations among beet sugar processors, the Secretary shall give priority to beet sugar processors with available sugar.''. (3) Timing of reassignment.--Section 359e(b)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)(2)) is amended-- (A) by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively, and indenting appropriately; (B) in the matter preceding clause (i) (as so redesignated), by striking ``If the Secretary'' and inserting the following: ``(A) In general.--If the Secretary''; and (C) by adding at the end the following: ``(B) Timing.--In carrying out subparagraph (A), the Secretary shall-- ``(i) make an initial determination based on the World Agricultural Supply and Demand Estimates approved by the World Agricultural Outlook Board for January that shall be applicable to the crop year for which allotments are required; and ``(ii) provide for an initial reassignment under subparagraph (A)(i) not later than 30 days after the date on which the World Agricultural Supply and Demand Estimates described in clause (i) is released.''. (d) Reallocations of Tariff-rate Quota Shortfall.--Section 359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) is amended by adding at the end the following: ``(c) Reallocation.-- ``(1) Initial reallocation.--Subject to paragraph (3), following the establishment of the tariff-rate quotas under subsection (a) for a quota year, the Secretary shall-- ``(A) determine which countries do not intend to fulfill their allocation for the quota year; and ``(B) reallocate any forecasted shortfall in the fulfillment of the tariff-rate quotas as soon as practicable. ``(2) Subsequent reallocation.--Subject to paragraph (3), not later than March 1 of a quota year, the Secretary shall reallocate any additional forecasted shortfall in the fulfillment of the tariff-rate quotas for raw cane sugar established under subsection (a)(1) for that quota year. ``(3) Cessation of effectiveness.--Paragraphs (1) and (2) shall cease to be in effect if-- ``(A) the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico, signed December 19, 2014, is terminated; and ``(B) no countervailing duty order under subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) is in effect with respect to sugar from Mexico. ``(d) Refined Sugar.-- ``(1) Definition of domestic sugar industry.--In this subsection, the term `domestic sugar industry' means domestic-- ``(A) sugar beet producers and processors; ``(B) producers and processors of sugar cane; and ``(C) refiners of raw cane sugar. ``(2) Study required.-- ``(A) In general.--Not later than 180 days after the date of enactment of this subsection, the Secretary shall conduct a study on whether the establishment of additional terms and conditions with respect to refined sugar imports is necessary and appropriate. ``(B) Elements.--In conducting the study under subparagraph (A), the Secretary shall examine the following: ``(i) The need for-- ``(I) defining `refined sugar' as having a minimum polarization of 99.8 degrees or higher; ``(II) establishing a standard for color- or reflectance- based units for refined sugar such as those utilized by the International Commission of Uniform Methods of Sugar Analysis; ``(III) prescribing specifications for packaging type for refined sugar; ``(IV) prescribing specifications for transportation modes for refined sugar; ``(V) requiring evidence that sugar imported as refined sugar will not undergo further refining in the United States; ``(VI) prescribing appropriate terms and conditions to avoid unlawful sugar imports; and ``(VII) establishing other definitions, terms and conditions, or other requirements. ``(ii) The potential impact of modifications described in each of subclauses (I) through (VII) of clause (i) on the domestic sugar industry. ``(iii) Whether, based on the needs described in clause (i) and the impact described in clause (ii), the establishment of additional terms and conditions is appropriate. ``(C) Consultation.--In conducting the study under subparagraph (A), the Secretary shall consult with representatives of the domestic sugar industry and users of refined sugar. ``(D) Report.--Not later than 1 year after the date of enactment of this subsection, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the study conducted under subparagraph (A). ``(3) Establishment of additional terms and conditions permitted.-- ``(A) In general.--Based on the findings in the report submitted under paragraph (2)(D), and after providing notice to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Secretary may issue regulations in accordance with subparagraph (B) to establish additional terms and conditions with respect to refined sugar imports that are necessary and appropriate. ``(B) Promulgation of regulations.--The Secretary may issue regulations under subparagraph (A) if the regulations-- ``(i) do not have an adverse impact on the domestic sugar industry; and ``(ii) are consistent with the requirements of this part, section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272), and obligations under international trade agreements that have been approved by Congress.''. (e) Clarification of Tariff-rate Quota Adjustments.-- Section 359k(b)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk(b)(1)) is amended, in the matter preceding subparagraph (A), by striking ``if there is an'' and inserting ``for the sole purpose of responding directly to an''. (f) Period of Effectiveness.--Section 359l(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking ``2023'' and inserting ``2031''. SEC. 10313. DAIRY POLICY UPDATES. (a) Dairy Margin Coverage Production History.-- (1) Definition.--Section 1401(8) of the Agricultural Act of 2014 (7 U.S.C. 9051(8)) is amended by striking ``when the participating dairy operation first registers to participate in dairy margin coverage''. (2) Production history of participating dairy operations.-- Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is amended by striking subsections (a) and (b) and inserting the following: ``(a) Production History.--Except as provided in subsection (b), the production history of a dairy operation for dairy margin coverage is equal to the highest annual milk marketings of the participating dairy operation during any 1 of the 2021, 2022, or 2023 calendar years. ``(b) Election by New Dairy Operations.--In the case of a participating dairy operation that has been in operation for less than a [[Page S3790]] year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the production history of the participating dairy operation: ``(1) The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount. ``(2) An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.''. (b) Dairy Margin Coverage Payments.--Section 1406(a)(1)(C) of the Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(C)) is amended by striking ``5,000,000'' each place it appears and inserting ``6,000,000''. (c) Premiums for Dairy Margins.-- (1) Tier i.--Section 1407(b) of the Agricultural Act of 2014 (7 U.S.C. 9057(b)) is amended-- (A) in the subsection heading, by striking ``5,000,000'' and inserting ``6,000,000''; and (B) in paragraph (1), by striking ``5,000,000'' and inserting ``6,000,000''. (2) Tier ii.--Section 1407(c) of the Agricultural Act of 2014 (7 U.S.C. 9057(c)) is amended-- (A) in the subsection heading, by striking ``5,000,000'' and inserting ``6,000,000''; and (B) in paragraph (1), by striking ``5,000,000'' and inserting ``6,000,000''. (3) Premium discounts.--Section 1407(g) of the Agricultural Act of 2014 (7 U.S.C. 9057(g)) is amended-- (A) in paragraph (1)-- (i) by striking ``2019 through 2023'' and inserting ``2026 through 2031''; and (ii) by striking ``January 2019'' and inserting ``January 2026''; and (B) in paragraph (2), by striking ``2023'' each place it appears and inserting ``2031''. (d) Duration.--Section 1409 of the Agricultural Act of 2014 (7 U.S.C. 9059) is amended by striking ``2025'' and inserting ``2031''. SEC. 10314. IMPLEMENTATION. Section 1614(c) of the Agricultural Act of 2014 (7 U.S.C. 9097(c)) is amended by adding at the end the following: ``(5) Further funding.--The Secretary shall make available to carry out subtitle C of title I of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress) and the amendments made by that subtitle $50,000,000, to remain available until expended, of which-- ``(A) not less than $5,000,000 shall be used to carry out paragraphs (3) and (4) of subsection (b); ``(B) $3,000,000 shall be used for activities described in paragraph (3)(A); ``(C) $3,000,000 shall be used for activities described in paragraph (3)(B); ``(D) $9,000,000 shall be used-- ``(i) to carry out mandatory surveys of dairy production cost and product yield information to be reported by manufacturers required to report under section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b), for all products processed in the same facility or facilities; and ``(ii) to publish the results of such surveys biennially; and ``(E) $1,000,000 shall be used to conduct the study under subsection (d) of section 359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk).''. Subtitle D--Disaster Assistance Programs SEC. 10401. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. (a) Livestock Indemnity Payments.--Section 1501(b) of the Agricultural Act of 2014 (7 U.S.C. 9081(b)) is amended-- (1) by striking paragraph (2) and inserting the following: ``(2) Payment rates.-- ``(A) Losses due to predation.--Indemnity payments to an eligible producer on a farm under paragraph (1)(A) shall be made at a rate of 100 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary. ``(B) Losses due to adverse weather or disease.--Indemnity payments to an eligible producer on a farm under subparagraph (B) or (C) of paragraph (1) shall be made at a rate of 75 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary. ``(C) Determination of market value.--In determining the market value described in subparagraphs (A) and (B), the Secretary may consider the ability of eligible producers to document regional price premiums for affected livestock that exceed the national average market price for those livestock. ``(D) Applicable date defined.--In this paragraph, the term `applicable date' means, with respect to livestock, as applicable-- ``(i) the day before the date of death of the livestock; or ``(ii) the day before the date of the event that caused the harm to the livestock that resulted in a reduced sale price.''; and (2) by adding at the end the following: ``(5) Additional payment for unborn livestock.-- ``(A) In general.--In the case of unborn livestock death losses incurred on or after January 1, 2024, the Secretary shall make an additional payment to eligible producers on farms that have incurred such losses in excess of the normal mortality due to a condition specified in paragraph (1). ``(B) Payment rate.--Additional payments under subparagraph (A) shall be made at a rate-- ``(i) determined by the Secretary; and ``(ii) less than or equal to 85 percent of the payment rate established with respect to the lowest weight class of the livestock, as determined by the Secretary, acting through the Administrator of the Farm Service Agency. ``(C) Payment amount.--The amount of a payment to an eligible producer that has incurred unborn livestock death losses shall be equal to the payment rate determined under subparagraph (B) multiplied, in the case of livestock described in-- ``(i) subparagraph (A), (B), or (F) of subsection (a)(4), by 1; ``(ii) subparagraph (D) of such subsection, by 2; ``(iii) subparagraph (E) of such subsection, by 12; and ``(iv) subparagraph (G) of such subsection, by the average number of birthed animals (for one gestation cycle) for the species of each such livestock, as determined by the Secretary. ``(D) Unborn livestock death losses defined.--In this paragraph, the term `unborn livestock death losses' means losses of any livestock described in subparagraph (A), (B), (D), (E), (F), or (G) of subsection (a)(4) that was gestating on the date of the death of the livestock.''. (b) Livestock Forage Disaster Program.--Section 1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014 (7 U.S.C. 9081(c)(3)(D)(ii)(I)) is amended-- (1) by striking ``1 monthly payment'' and inserting ``2 monthly payments''; and (2) by striking ``county for at least 8 consecutive'' and inserting the following: ``county for not less than-- ``(aa) 4 consecutive weeks during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph in an amount equal to 1 monthly payment using the monthly payment rate determined under subparagraph (B); or ``(bb) 7 of the previous 8 consecutive''. (c) Emergency Assistance for Livestock, Honey Bees, and Farm-raised Fish.-- (1) In general.--Section 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 9081(d)) is amended by adding at the end the following: ``(5) Assistance for losses due to bird depredation.-- ``(A) Definition of farm-raised fish.--In this paragraph, the term `farm-raised fish' means fish propagated and reared in a controlled fresh water environment. ``(B) Payments.--Eligible producers of farm-raised fish, including fish grown as food for human consumption, shall be eligible to receive payments under this subsection to aid in the reduction of losses due to piscivorous birds. ``(C) Payment rate.-- ``(i) In general.--The payment rate for payments under subparagraph (B) shall be determined by the Secretary, taking into account-- ``(I) costs associated with the deterrence of piscivorous birds; ``(II) the value of lost fish and revenue due to bird depredation; and ``(III) costs associated with disease loss from bird depredation. ``(ii) Minimum rate.--The payment rate for payments under subparagraph (B) shall be not less than $600 per acre of farm-raised fish. ``(D) Payment amount.--The amount of a payment under subparagraph (B) shall be the product obtained by multiplying-- ``(i) the applicable payment rate under subparagraph (C); and ``(ii) 85 percent of the total number of acres of farm- raised fish farms that the eligible producer has in production for the calendar year.''. (2) Emergency assistance for honeybees.--In determining honeybee colony losses eligible for assistance under section 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 9081(d)), the Secretary shall utilize a normal mortality rate of 15 percent. (d) Tree Assistance Program.--Section 1501(e) of the Agricultural Act of 2014 (7 U.S.C. 9081(e)) is amended-- (1) in paragraph (2)(B), by striking ``15 percent (adjusted for normal mortality)'' and inserting ``normal mortality''; and (2) in paragraph (3)-- (A) in subparagraph (A)(i), by striking ``15 percent mortality (adjusted for normal mortality)'' and inserting ``normal mortality''; and (B) in subparagraph (B)-- (i) by striking ``50'' and inserting ``65''; and (ii) by striking ``15 percent damage or mortality (adjusted for normal tree damage and mortality)'' and inserting ``normal tree damage or mortality''. Subtitle E--Crop Insurance SEC. 10501. BEGINNING FARMER AND RANCHER BENEFIT. (a) Definitions.-- (1) In general.--Section 502(b)(3) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)(3)) is amended by striking ``5'' and inserting ``10''. (2) Conforming amendment.--Section 522(c)(7) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)(7)) is amended by striking subparagraph (F). (b) Increase in Assistance.--Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following: ``(9) Additional support.-- ``(A) In general.--In addition to any other provision of this subsection (except paragraph (2)(A)) regarding payment of a portion [[Page S3791]] of premiums, a beginning farmer or rancher shall receive additional premium assistance that is the number of percentage points specified in subparagraph (B) greater than the premium assistance that would otherwise be available for the applicable policy, plan of insurance, and coverage level selected by the beginning farmer or rancher. ``(B) Percentage points adjustments.--The percentage points referred to in subparagraph (A) are the following: ``(i) For each of the first and second reinsurance years that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 5 percentage points. ``(ii) For the third reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 3 percentage points. ``(iii) For the fourth reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 1 percentage point.''. SEC. 10502. AREA-BASED CROP INSURANCE COVERAGE AND AFFORDABILITY. (a) Coverage Level.--Section 508(c)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)) is amended-- (1) in subparagraph (A), by striking clause (ii) and inserting the following: ``(ii) may be purchased at any level not to exceed-- ``(I) in the case of the individual yield or revenue coverage, 85 percent; ``(II) in the case of individual yield or revenue coverage aggregated across multiple commodities, 90 percent; and ``(III) in the case of area yield or revenue coverage (as determined by the Corporation), 95 percent.''; and (2) in subparagraph (C)-- (A) in clause (ii), by striking ``14'' and inserting ``10''; and (B) in clause (iii)(I), by striking ``86'' and inserting ``90''. (b) Premium Subsidy.--Section 508(e)(2)(H)(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)(H)(i)) is amended by striking ``65'' and inserting ``80''. SEC. 10503. ADMINISTRATIVE AND OPERATING EXPENSE ADJUSTMENTS. Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by adding at the end the following: ``(10) Additional expenses.-- ``(A) In general.--Beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, in addition to the terms and conditions of the Standard Reinsurance Agreement, to cover additional expenses for loss adjustment procedures, the Corporation shall pay an additional administrative and operating expense subsidy to approved insurance providers for eligible contracts. ``(B) Payment amount.--In the case of an eligible contract, the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium. ``(C) Definitions.--In this paragraph: ``(i) Eligible contract.--The term `eligible contract'-- ``(I) means a crop insurance contract entered into by an approved insurance provider in an eligible State; and ``(II) does not include a contract for-- ``(aa) catastrophic risk protection under subsection (b); ``(bb) an area-based plan of insurance or similar plan of insurance, as determined by the Corporation; or ``(cc) a policy under which an approved insurance provider does not incur loss adjustment expenses, as determined by the Corporation. ``(ii) Eligible state.--The term `eligible State' means a State in which, with respect to an insurance year, the loss ratio for eligible contracts is greater than 120 percent of the total net book premium written by all approved insurance providers. ``(11) Specialty crops.-- ``(A) Minimum reimbursement.--Beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, the rate of reimbursement to approved insurance providers and agents for administrative and operating expenses with respect to crop insurance contracts covering agricultural commodities described in section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) shall be equal to or greater than the percentage that is the greater of the following: ``(i) 17 percent of the premium used to define loss ratio. ``(ii) The percent 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. ``(B) Other contracts.--In carrying out subparagraph (A), the Corporation shall not reduce, with respect to any reinsurance year, the amount or the rate of reimbursement to approved insurance providers and agents under the Standard Reinsurance Agreement described in clause (ii) of such subparagraph for administrative and operating expenses with respect to contracts covering agricultural commodities that are not subject to such subparagraph. ``(C) Administration.--The requirements of this paragraph and the adjustments made pursuant to this paragraph shall not be considered a renegotiation under paragraph (8)(A). ``(12) A&O inflation adjustment.-- ``(A) In general.--Subject to subparagraph (B), beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agreement in effect for the reinsurance year in order to account for inflation, in a manner consistent with the increases provided with respect to the 2011 through 2015 reinsurance years under the enclosure included in Risk Management Agency Bulletin numbered MGR-10-007 and dated June 30, 2010. ``(B) Special rule for 2026 reinsurance year.--The increase under subparagraph (A) for the 2026 reinsurance year shall not exceed the percentage change for the preceding reinsurance year included in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. ``(C) Administration.--An increase under subparagraph (A)-- ``(i) shall apply with respect to all contracts covering agricultural commodities that were subject to an increase during the period of the 2011 through 2015 reinsurance years under the enclosure referred to in that subparagraph; and ``(ii) shall not be considered a renegotiation under paragraph (8)(A).''. SEC. 10504. PREMIUM SUPPORT. Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended-- (1) in subparagraph (C)(i), by striking ``64'' and inserting ``69''; (2) in subparagraph (D)(i), by striking ``59'' and inserting ``64''; (3) in subparagraph (E)(i), by striking ``55'' and inserting ``60''; (4) in subparagraph (F)(i), by striking ``48'' and inserting ``51''; and (5) in subparagraph (G)(i), by striking ``38'' and inserting ``41''. SEC. 10505. PROGRAM COMPLIANCE AND INTEGRITY. Section 515(l)(2) of the Federal Crop Insurance Act (7 U.S.C. 1515(l)(2)) is amended by striking ``than'' and all that follows through the period at the end and inserting the following: ``than-- ``(A) $4,000,000 for each of fiscal years 2009 through 2025; and ``(B) $6,000,000 for fiscal year 2026 and each subsequent fiscal year.''. SEC. 10506. REVIEWS, COMPLIANCE, AND INTEGRITY. Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(C)(i)) is amended, in the matter preceding subclause (I), by striking ``for each fiscal year'' and inserting ``for each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter''. SEC. 10507. POULTRY INSURANCE PILOT PROGRAM. Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is amended by adding at the end the following: ``(j) Poultry Insurance Pilot Program.-- ``(1) In general.--Notwithstanding subsection (a)(2), the Corporation shall establish a pilot program under which contract poultry growers, including growers of broilers and laying hens, may elect to receive index-based insurance from extreme weather-related risk resulting in increased utility costs (including costs of natural gas, propane, electricity, water, and other appropriate costs, as determined by the Corporation) associated with poultry production. ``(2) Stakeholder engagement.--The Corporation shall engage with poultry industry stakeholders in establishing the pilot program under paragraph (1). ``(3) Location.--The pilot program established under paragraph (1) shall be conducted in a sufficient number of counties to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among producers in the top poultry producing States, as determined by the Corporation. ``(4) Approval of policy or plan.--Notwithstanding section 508(l), the Board shall approve a policy or plan of insurance based on the pilot program under paragraph (1)-- ``(A) in accordance with section 508(h); and ``(B) not later than 2 years after the date of enactment of this subsection.''. Subtitle F--Additional Investments in Rural America SEC. 10601. CONSERVATION. (a) In General.--Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended-- (1) in paragraph (2), by striking subparagraphs (A) through (F) and inserting the following: ``(A) $625,000,000 for fiscal year 2026; ``(B) $650,000,000 for fiscal year 2027; ``(C) $675,000,000 for fiscal year 2028; ``(D) $700,000,000 for fiscal year 2029; ``(E) $700,000,000 for fiscal year 2030; and ``(F) $700,000,000 for fiscal year 2031.''; and (2) in paragraph (3)-- (A) in subparagraph (A), by striking clauses (i) through (v) and inserting the following: ``(i) $2,655,000,000 for fiscal year 2026; ``(ii) $2,855,000,000 for fiscal year 2027; ``(iii) $3,255,000,000 for fiscal year 2028; ``(iv) $3,255,000,000 for fiscal year 2029; ``(v) $3,255,000,000 for fiscal year 2030; and ``(vi) $3,255,000,000 for fiscal year 2031; and''; and (B) in subparagraph (B), by striking clauses (i) through (v) and inserting the following: ``(i) $1,300,000,000 for fiscal year 2026; ``(ii) $1,325,000,000 for fiscal year 2027; ``(iii) $1,350,000,000 for fiscal year 2028; [[Page S3792]] ``(iv) $1,375,000,000 for fiscal year 2029; ``(v) $1,375,000,000 for fiscal year 2030; and ``(vi) $1,375,000,000 for fiscal year 2031.''. (b) Regional Conservation Partnership Program.--Section 1271D of the Food Security Act of 1985 (16 U.S.C. 3871d) is amended by striking subsection (a) and inserting the following: ``(a) Availability of Funding.--Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out the program, to the maximum extent practicable-- ``(1) $425,000,000 for fiscal year 2026; ``(2) $450,000,000 for fiscal year 2027; ``(3) $450,000,000 for fiscal year 2028; ``(4) $450,000,000 for fiscal year 2029; ``(5) $450,000,000 for fiscal year 2030; and ``(6) $450,000,000 for fiscal year 2031.''. (c) Grassroots Source Water Protection Program.--Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb- 2(b)) is amended-- (1) in paragraph (1), by striking ``2023'' and inserting ``2031''; and (2) in paragraph (3)-- (A) in subparagraph (A), by striking ``and'' at the end; (B) in subparagraph (B), by striking the period at the end and inserting ``; and''; and (C) by adding at the end the following: ``(C) $1,000,000 beginning in fiscal year 2026, to remain available until expended.''. (d) Voluntary Public Access and Habitat Incentive Program.--Section 1240R(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb-5(f)(1)) is amended-- (1) by striking ``2023, and'' and inserting ``2023,''; and (2) by inserting ``, and $70,000,000 for the period of fiscal years 2025 through 2031'' before the period at the end. (e) Watershed Protection and Flood Prevention.--Section 15 of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012a) is amended by striking ``$50,000,000 for fiscal year 2019 and each fiscal year thereafter'' and inserting ``$150,000,000 for fiscal year 2026 and each fiscal year thereafter, to remain available until expended''. (f) Feral Swine Eradication and Control Pilot Program.-- Section 2408(g)(1) of the Agriculture Improvement Act of 2018 (7 U.S.C. 8351 note; Public Law 115-334) is amended-- (1) by striking ``2023 and'' and inserting ``2023,''; and (2) by inserting ``, and $105,000,000 for the period of fiscal years 2025 through 2031'' before the period at the end. (g) Rescission.--The unobligated balances of amounts appropriated by section 21001(a) of Public Law 117-169 (136 Stat. 2015) are rescinded. SEC. 10602. SUPPLEMENTAL AGRICULTURAL TRADE PROMOTION PROGRAM. (a) In General.--The Secretary of Agriculture shall carry out a program to encourage the accessibility, development, maintenance, and expansion of commercial export markets for United States agricultural commodities. (b) Funding.--Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall make available to carry out this section $285,000,000 for fiscal year 2027 and each fiscal year thereafter. SEC. 10603. NUTRITION. Section 203D(d)(5) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7507(d)(5)) is amended by striking ``2024'' and inserting ``2031''. SEC. 10604. RESEARCH. (a) Urban, Indoor, and Other Emerging Agricultural Production Research, Education, and Extension Initiative.-- Section 1672E(d)(1)(B) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925g(d)(1)(B)) is amended by striking ``fiscal year 2024, to remain available until expended'' and inserting ``each of fiscal years 2024 through 2031''. (b) Foundation for Food and Agriculture Research.--Section 7601(g)(1)(A) of the Agricultural Act of 2014 (7 U.S.C. 5939(g)(1)(A)) is amended by adding at the end the following: ``(iv) Further funding.--Not later than 30 days after the date of enactment of this clause, of the funds of the Commodity Credit Corporation, the Secretary shall transfer to the Foundation to carry out this section $37,000,000, to remain available until expended.''. (c) Scholarships for Students at 1890 Institutions.-- Section 1446(b)(1) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222a(b)(1)) is amended by adding at the end the following: ``(C) Further funding.--Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $60,000,000 for fiscal year 2026, to remain available until expended.''. (d) Assistive Technology Program for Farmers With Disabilities.--Section 1680 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5933) is amended-- (1) in subsection (c)(2), by inserting ``and subsection (d)'' after ``paragraph (1)''; and (2) by adding at the end the following: ``(d) Mandatory Funding.--Subject to subsection (c)(2), of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $8,000,000 for fiscal year 2026, to remain available until expended.''. (e) Specialty Crop Research Initiative.--Section 412(k)(1)(B) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632(k)(1)(B)) is amended by striking ``section $80,000,000 for fiscal year 2014'' and inserting the following: ``section-- ``(i) $80,000,000 for each of fiscal years 2014 through 2025; and ``(ii) $175,000,000 for fiscal year 2026''. (f) Research Facilities Act.--Section 6 of the Research Facilities Act (7 U.S.C. 390d) is amended-- (1) in subsection (c), by striking ``subsection (a)'' and inserting ``subsections (a) and (e)''; and (2) by adding at the end the following: ``(e) Mandatory Funding.--Subject to subsections (b), (c), and (d), of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out the competitive grant program under section 4 $125,000,000 for fiscal year 2026 and each fiscal year thereafter.''. SEC. 10605. ENERGY. Section 9005(g)(1)(F) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8105(g)(1)(F)) is amended by striking ``2024'' and inserting ``2031''. SEC. 10606. HORTICULTURE. (a) Plant Pest and Disease Management and Disaster Prevention.--Section 420(f) of the Plant Protection Act (7 U.S.C. 7721(f)) is amended-- (1) in paragraph (5), by striking ``and'' at the end; (2) by redesignating paragraph (6) as paragraph (7); (3) by inserting after paragraph (5) the following: ``(6) $75,000,000 for each of fiscal years 2018 through 2025; and''; and (4) in paragraph (7) (as so redesignated), by striking ``$75,000,000 for fiscal year 2018'' and inserting ``$90,000,000 for fiscal year 2026''. (b) Specialty Crop Block Grants.--Section 101(l)(1) of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is amended-- (1) in subparagraph (D), by striking ``and'' at the end; (2) by redesignating subparagraph (E) as subparagraph (F); (3) by inserting after subparagraph (D) the following: ``(E) $85,000,000 for each of fiscal years 2018 through 2025; and''; and (4) in subparagraph (F) (as so redesignated), by striking ``$85,000,000 for fiscal year 2018'' and inserting ``$100,000,000 for fiscal year 2026''. (c) Organic Production and Market Data Initiative.--Section 7407(d)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5925c(d)(1)) is amended-- (1) in subparagraph (B), by striking ``and'' at the end; (2) in subparagraph (C), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following: ``(D) $10,000,000 for the period of fiscal years 2026 through 2031.''. (d) Modernization and Improvement of International Trade Technology Systems and Data Collection.--Section 2123(c)(4) of the Organic Foods Production Act of 1990 (7 U.S.C. 6522(c)(4)) is amended, in the matter preceding subparagraph (A), by striking ``and $1,000,000 for fiscal year 2024'' and inserting ``, $1,000,000 for fiscal years 2024 and 2025, and $5,000,000 for fiscal year 2026''. (e) National Organic Certification Cost-share Program.-- Section 10606(d)(1)(C) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523(d)(1)(C)) is amended by striking ``2024'' and inserting ``2031''. (f) Multiple Crop and Pesticide Use Survey.--Section 10109(c) of the Agriculture Improvement Act of 2018 (Public Law 115-334; 132 Stat. 4907) is amended by adding at the end the following: ``(3) Further mandatory funding.--Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $5,000,000 for fiscal year 2026, to remain available until expended.''. SEC. 10607. MISCELLANEOUS. (a) Animal Disease Prevention and Management.--Section 10409A(d)(1) of the Animal Health Protection Act (7 U.S.C. 8308a(d)(1)) is amended-- (1) in subparagraph (B)-- (A) in the heading, by striking ``Subsequent fiscal years'' and inserting ``Fiscal years 2023 through 2025''; and (B) by striking ``fiscal year 2023 and each fiscal year thereafter'' and inserting ``each of fiscal years 2023 through 2025''; and (2) by adding at the end the following: ``(C) Fiscal years 2026 through 2030.--Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $233,000,000 for each of fiscal years 2026 through 2030, of which-- ``(i) not less than $10,000,000 shall be made available for each such fiscal year to carry out subsection (a); ``(ii) not less than $70,000,000 shall be made available for each such fiscal year to carry out subsection (b); and ``(iii) not less than $153,000,000 shall be made available for each such fiscal year to carry out subsection (c). ``(D) Subsequent fiscal years.--Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $75,000,000 for fiscal year 2031 and each fiscal year thereafter, of which not less than $45,000,000 shall be made available for each of those fiscal years to carry out subsection (b).''. (b) Sheep Production and Marketing Grant Program.--Section 209(c) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1627a(c)) is amended-- (1) by striking ``2019, and'' and inserting ``2019,''; and [[Page S3793]] (2) by inserting ``and $3,000,000 for fiscal year 2026,'' after ``fiscal year 2024,'' (c) Pima Agriculture Cotton Trust Fund.--Section 12314 of the Agricultural Act of 2014 (7 U.S.C. 2101 note; Public Law 113-79) is amended-- (1) in subsection (b), in the matter preceding paragraph (1), by striking ``2024'' and inserting ``2031''; and (2) in subsection (h), by striking ``2024''and inserting ``2031''. (d) Agriculture Wool Apparel Manufacturers Trust Fund.-- Section 12315 of the Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113-79) is amended by striking ``2024'' each place it appears and inserting ``2031''. (e) Wool Research and Promotion.--Section 12316(a) of the Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113- 79) is amended by striking ``2024'' and inserting ``2031''. (f) Emergency Citrus Disease Research and Development Trust Fund.--Section 12605(d) of the Agriculture Improvement Act of 2018 (7 U.S.C. 7632 note; Public Law 115-334) is amended by striking ``2024'' and inserting ``2031''. TITLE II--COMMITTEE ON ARMED SERVICES SEC. 20001. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR IMPROVING THE QUALITY OF LIFE FOR MILITARY PERSONNEL. (a) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $230,480,000 for restoration and modernization costs under the Marine Corps Barracks 2030 initiative; (2) $119,000,000 for base operating support costs under the Marine Corps; (3) $1,000,000,000 for Army, Navy, Air Force, and Space Force sustainment, restoration, and modernization of military unaccompanied housing; (4) $2,000,000,000 for the Defense Health Program; (5) $2,900,000,000 to supplement the basic allowance for housing payable to members of the Army, Air Force, Navy, Marine Corps, and Space Force , notwithstanding section 403 of title 37, United States Code; (6) $50,000,000 for bonuses, special pays, and incentive pays for members of the Army, Air Force, Navy, Marine Corps, and Space Force pursuant to titles 10 and 37, United States Code; (7) $10,000,000 for the Defense Activity for Non- Traditional Education Support's Online Academic Skills Course program for members of the Army, Air Force, Navy, Marine Corps, and Space Force; (8) $100,000,000 for tuition assistance for members of the Army, Air Force, Navy, Marine Corps, and Space Force pursuant to title 10, United States Code; (9) $100,000,000 for child care fee assistance for members of the Army, Air Force, Navy, Marine Corps, and Space Force under part II of chapter 88 of title 10, United States Code; (10) $590,000,000 to increase the Temporary Lodging Expense Allowance under chapter 8 of title 37, United States Code, to 21 days; (11) $100,000,000 for Department of Defense Impact Aid payments to local educational agencies under section 2008 of title 10, United States Code; (12) $10,000,000 for military spouse professional licensure under section 1784 of title 10, United States Code; (13) $6,000,000 for Armed Forces Retirement Home facilities; (14) $100,000,000 for the Defense Community Infrastructure Program; (15) $100,000,000 for Defense Advanced Research Projects Agency (DARPA) casualty care research; and (16) $62,000,000 for modernization of Department of Defense childcare center staffing. (b) Temporary Increase in Percentage of Value of Authorized Investment in Certain Privatized Military Housing Projects.-- (1) In general.--During the period beginning on the date of the enactment of this section and ending on September 30, 2029, the Secretary concerned shall apply-- (A) paragraph (1) of subsection (c) of section 2875 of title 10, United States Code, by substituting ``60 percent'' for ``33 \1/3\ percent''; and (B) paragraph (2) of such subsection by substituting ``60 percent'' for ``45 percent''. (2) Secretary concerned defined.--In this subsection, the term ``Secretary concerned'' has the meaning given such term in section 101 of title 10, United States Code. (c) Temporary Authority for Acquisition or Construction of Privatized Military Unaccompanied Housing.--Section 2881a of title 10, United States Code, is amended-- (1) by striking the heading and inserting ``Temporary authority for acquisition or construction of privatized military unaccompanied housing''; (2) by striking ``Secretary of the Navy'' each place it appears and inserting ``Secretary concerned''; (3) by striking ``under the pilot projects'' each place it appears and inserting ``pursuant to this section''; (4) in subsection (a)-- (A) by striking the heading and inserting ``In General''; and (B) by striking ``carry out not more than three pilot projects under the authority of this section or another provision of this subchapter to use the private sector'' and inserting ``use the authority under this subchapter to enter into contracts with appropriate private sector entities''; (5) in subsection (c), by striking ``privatized housing'' and inserting ``privatized housing units''; (6) by redesignating subsection (f) as subsection (e); and (7) in subsection (e) (as so redesignated)-- (A) by striking ``under the pilot programs'' and inserting ``under this section''; and (B) by striking ``September 30, 2009'' and inserting ``September 30, 2029''. SEC. 20002. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR SHIPBUILDING. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $250,000,000 for the expansion of accelerated Training in Defense Manufacturing program; (2) $250,000,000 for United States production of turbine generators for shipbuilding industrial base; (3) $450,000,000 for United States additive manufacturing for wire production and machining capacity for shipbuilding industrial base; (4) $492,000,000 for next-generation shipbuilding techniques; (5) $85,000,000 for United States-made steel plate for shipbuilding industrial base; (6) $50,000,000 for machining capacity for naval propellers for shipbuilding industrial base; (7) $110,000,000 for rolled steel and fabrication facility for shipbuilding industrial base; (8) $400,000,000 for expansion of collaborative campus for naval shipbuilding; (9) $450,000,000 for application of autonomy and artificial intelligence to naval shipbuilding; (10) $500,000,000 for the adoption of advanced manufacturing techniques in the shipbuilding industrial base; (11) $500,000,000 for additional dry-dock capability; (12) $50,000,000 for the expansion of cold spray repair technologies; (13) $450,000,000 for additional maritime industrial workforce development programs; (14) $750,000,000 for additional supplier development across the naval shipbuilding industrial base; (15) $250,000,000 for additional advanced manufacturing processes across the naval shipbuilding industrial base; (16) $4,600,000,000 for a second Virginia-class submarine in fiscal year 2026; (17) $5,400,000,000 for two additional Guided Missile Destroyer (DDG) ships; (18) $160,000,000 for advanced procurement for Landing Ship Medium; (19) $1,803,941,000 for procurement of Landing Ship Medium; (20) $295,000,000 for development of a second Landing Craft Utility shipyard and production of additional Landing Craft Utility; (21) $100,000,000 for advanced procurement for light replenishment oiler program; (22) $600,000,000 for the lease or purchase of new ships through the National Defense Sealift Fund; (23) $2,725,000,000 for the procurement of T-AO oilers; (24) $500,000,000 for cost-to-complete for rescue and salvage ships; (25) $300,000,000 for production of ship-to-shore connectors; (26) $1,470,000,000 for the implementation of a multi-ship amphibious warship contract; (27) $80,000,000 for accelerated development of vertical launch system reloading at sea; (28) $250,000,000 for expansion of Navy corrosion control programs; (29) $159,000,000 for leasing of ships for Marine Corps operations; (30) $1,534,000,000 for expansion of small unmanned surface vessel production; (31) $2,100,000,000 for development, procurement, and integration of purpose-built medium unmanned surface vessels; (32) $1,300,000,000 for expansion of unmanned underwater vehicle production; (33) $188,360,000 for the development and testing of maritime robotic autonomous systems and enabling technologies; (34) $174,000,000 for the development of a Test Resource Management Center robotic autonomous systems proving ground; (35) $250,000,000 for the development, production, and integration of wave-powered unmanned underwater vehicles; and (36) $150,000,000 for retention of inactive reserve fleet ships. SEC. 20003. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR INTEGRATED AIR AND MISSILE DEFENSE. (a) Next Generation Missile Defense Technologies.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $250,000,000 for development and testing of directed energy capabilities by the Under Secretary for Research and Engineering; (2) $500,000,000 for national security space launch infrastructure; (3) $2,000,000,000 for air moving target indicator military satellites; (4) $400,000,000 for expansion of Multi-Service Advanced Capability Hypersonic Test Bed program; (5) $5,600,000,000 for development of space-based and boost phase intercept capabilities; [[Page S3794]] (6) $7,200,000,000 for the development, procurement, and integration of military space-based sensors; and (7) $2,550,000,000 for the development, procurement, and integration of military missile defense capabilities. (b) Layered Homeland Defense.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $2,200,000,000 for acceleration of hypersonic defense systems; (2) $800,000,000 for accelerated development and deployment of next-generation intercontinental ballistic missile defense systems; (3) $408,000,000 for Army space and strategic missile test range infrastructure restoration and modernization in the United States Indo-Pacific Command area of operations west of the international dateline; (4) $1,975,000,000 for improved ground-based missile defense radars; and (5) $530,000,000 for the design and construction of Missile Defense Agency missile instrumentation range safety ship. SEC. 20004. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR MUNITIONS AND DEFENSE SUPPLY CHAIN RESILIENCY. (a) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $400,000,000 for the development, production, and integration of Navy and Air Force long-range anti-ship missiles; (2) $380,000,000 for production capacity expansion for Navy and Air Force long-range anti-ship missiles; (3) $490,000,000 for the development, production, and integration of Navy and Air Force long-range air-to-surface missiles; (4) $94,000,000 for the development, production, and integration of alternative Navy and Air Force long-range air- to-surface missiles; (5) $630,000,000 for the development, production, and integration of long-range Navy air defense and anti-ship missiles; (6) $688,000,000 for the development, production, and integration of long-range multi-service cruise missiles; (7) $250,000,000 for production capacity expansion and supplier base strengthening of long-range multi-service cruise missiles; (8) $70,000,000 for the development, production, and integration of short-range Navy and Marine Corps anti-ship missiles; (9) $100,000,000 for the development of an anti-ship seeker for short-range Army ballistic missiles; (10) $175,000,000 for production capacity expansion for next-generation Army medium-range ballistic missiles; (11) $50,000,000 for the mitigation of diminishing manufacturing sources for medium-range air-to-air missiles; (12) $250,000,000 for the procurement of medium-range air- to-air missiles; (13) $225,000,000 for the expansion of production capacity for medium-range air-to-air missiles; (14) $50,000,000 for the development of second sources for components of short-range air-to-air missiles; (15) $325,000,000 for production capacity improvements for air-launched anti-radiation missiles; (16) $50,000,000 for the accelerated development of Army next-generation medium-range anti-ship ballistic missiles; (17) $114,000,000 for the production of Army next- generation medium-range ballistic missiles; (18) $300,000,000 for the production of Army medium-range ballistic missiles; (19) $85,000,000 for the accelerated development of Army long-range ballistic missiles; (20) $400,000,000 for the production of heavyweight torpedoes; (21) $200,000,000 for the development, procurement, and integration of mass-producible autonomous underwater munitions; (22) $70,000,000 for the improvement of heavyweight torpedo maintenance activities; (23) $200,000,000 for the production of lightweight torpedoes; (24) $500,000,000 for the development, procurement, and integration of maritime mines; (25) $50,000,000 for the development, procurement, and integration of new underwater explosives; (26) $55,000,000 for the development, procurement, and integration of lightweight multi-mission torpedoes; (27) $80,000,000 for the production of sonobuoys; (28) $150,000,000 for the development, procurement, and integration of air-delivered long-range maritime mines; (29) $61,000,000 for the acceleration of Navy expeditionary loitering munitions deployment; (30) $50,000,000 for the acceleration of one-way attack unmanned aerial systems with advanced autonomy; (31) $1,000,000,000 for the expansion of the one-way attack unmanned aerial systems industrial base; (32) $200,000,000 for investments in solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code; (33) $400,000,000 for investments in the emerging solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code; (34) $42,000,000 for investments in second sources for large-diameter solid rocket motors for hypersonic missiles; (35) $1,000,000,000 for the creation of next-generation automated munitions production factories; (36) $170,000,000 for the development of advanced radar depot for repair, testing, and production of radar and electronic warfare systems; (37) $25,000,000 for the expansion of the Department of Defense industrial base policy analysis workforce; (38) $30,300,000 for the repair of Army missiles; (39) $100,000,000 for the production of small and medium ammunition; (40) $2,000,000,000 for additional activities to improve the United States stockpile of critical minerals through the National Defense Stockpile Transaction Fund, authorized by subchapter III of chapter 5 of title 50, United States Code; (41) $10,000,000 for the expansion of the Department of Defense armaments cooperation workforce; (42) $500,000,000 for the expansion of the Defense Exportability Features program; (43) $350,000,000 for production of Navy long-range air and missile defense interceptors; (44) $93,000,000 for replacement of Navy long-range air and missile defense interceptors; (45) $100,000,000 for development of a second solid rocket motor source for Navy air defense and anti ship missiles; (46) $65,000,000 for expansion of production capacity of Missile Defense Agency long-range anti-ballistic missiles; (47) $225,000,000 for expansion of production capacity for Navy air defense and anti-ship missiles; (48) $103,300,000 for expansion of depot level maintenance facility for Navy long-range air and missile defense interceptors; (49) $18,000,000 for creation of domestic source for guidance section of Navy short-range air defense missiles; (50) $65,000,000 for integration of Army medium-range air and missile defense interceptor with Navy ships; (51) $176,100,000 for production of Army long-range movable missile defense radar; (52) $167,000,000 for accelerated fielding of Army short- range gun-based air and missile defense system; (53) $40,000,000 for development of low-cost alternatives to air and missile defense interceptors; (54) $50,000,000 for acceleration of Army next-generation shoulder-fired air defense system; (55) $91,000,000 for production of Army next-generation shoulder-fired air defense system; (56) $500,000,000 for development, production, and integration of counter-unmanned aerial systems programs; (57) $350,000,000 for development, production, and integration of non-kinetic counter-unmanned aerial systems programs; (58) $250,000,000 for development, production, and integration of land-based counter-unmanned aerial systems programs; (59) $200,000,000 for development, production, and integration of ship-based counter-unmanned aerial systems programs; (60) $400,000,000 for acceleration of hypersonic strike programs; (61) $167,000,000 for procurement of additional launchers for Army medium-range air and missile defense interceptors; (62) $500,000,000 for expansion of defense advanced manufacturing techniques; (63) $1,000,000 for establishment of the Joint Energetics Transition Office; (64) $200,000,000 for acceleration of Army medium-range air and missile defense interceptors; (65) $150,000,000 for additive manufacturing for propellant; (66) $250,000,000 for expansion and acceleration of penetrating munitions production; and (67) $50,000,000 for development, procurement, and integration of precision extended-range artillery. (b) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $3,300,000,000 for grants and purchase commitments made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code. (c) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $5,000,000,000 for investments in critical minerals supply chains made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code. (d) Appropriations.--In addition to amounts otherwise available, there is appropriated to the Secretary of Defense, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $500,000,000 to the ``Department of Defense Credit Program Account'' to carry out the capital assistance program, including loans, loan guarantees, and technical assistance, established under section 149(e) of title 10, United States Code, for critical minerals and related industries and projects, including related Covered Technology Categories: Provided, That-- [[Page S3795]] (1) such amounts are available to subsidize gross obligations for the principal amount of direct loans, and total loan principal, any part of which is to be guaranteed, not to exceed $100,000,000,000; and (2) such amounts are available to cover all costs and expenditures as provided under section 149(e)(5)(B) of title 10, United States Code. SEC. 20005. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR SCALING LOW-COST WEAPONS INTO PRODUCTION. (a) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $25,000,000 for the Office of Strategic Capital Global Technology Scout program; (2) $1,400,000,000 for the expansion of the small unmanned aerial system industrial base; (3) $400,000,000 for the development and deployment of the Joint Fires Network and associated joint battle management capabilities; (4) $400,000,000 for the expansion of advanced command-and- control tools to combatant commands and military departments; (5) $100,000,000 for the development of shared secure facilities for the defense industrial base; (6) $50,000,000 for the creation of additional Defense Innovation Unit OnRamp Hubs; (7) $600,000,000 for the acceleration of Strategic Capabilities Office programs; (8) $650,000,000 for the expansion of Mission Capabilities office joint prototyping and experimentation activities for military innovation; (9) $500,000,000 for the accelerated development and integration of advanced 5G/6G technologies for military use; (10) $25,000,000 for testing of simultaneous transmit and receive technology for military spectrum agility; (11) $50,000,000 for the development, procurement, and integration of high-altitude stratospheric balloons for military use; (12) $120,000,000 for the development, procurement, and integration of long-endurance unmanned aerial systems for surveillance; (13) $40,000,000 for the development, procurement, and integration of alternative positioning and navigation technology to enable military operations in contested electromagnetic environments; (14) $750,000,000 for the acceleration of innovative military logistics and energy capability development and deployment; (15) $125,000,000 for the acceleration of development of small, portable modular nuclear reactors for military use; (16) $1,000,000,000 for the expansion of programs to accelerate the procurement and fielding of innovative technologies; (17) $90,000,000 for the development of reusable hypersonic technology for military strikes; (18) $2,000,000,000 for the expansion of Defense Innovation Unit scaling of commercial technology for military use; (19) $500,000,000 to prevent delays in delivery of attritable autonomous military capabilities; (20) $1,500,000,000 for the development, procurement, and integration of low-cost cruise missiles; (21) $124,000,000 for improvements to Test Resource Management Center artificial intelligence capabilities; (22) $145,000,000 for the development of artificial intelligence to enable one-way attack unmanned aerial systems and naval systems; (23) $250,000,000 for the development of the Test Resource Management Center digital test environment; (24) $250,000,000 for the advancement of the artificial intelligence ecosystem; (25) $250,000,000 for the expansion of Cyber Command artificial intelligence lines of effort; (26) $250,000,000 for the acceleration of the Quantum Benchmarking Initiative; (27) $1,000,000,000 for the expansion and acceleration of qualification activities and technical data management to enhance competition in defense industrial base; (28) $400,000,000 for the expansion of the defense manufacturing technology program; (29) $1,685,000,000 for military cryptographic modernization activities; (30) $90,000,000 for APEX Accelerators, the Mentor-Protege Program, and cybersecurity support to small non-traditional contractors; (31) $250,000,000 for the development, procurement, and integration of Air Force low-cost counter-air capabilities; (32) $10,000,000 for additional Air Force wargaming activities; and (33) $20,000,000 for the Office of Strategic Capital workforce. (b) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $1,000,000,000 to the ``Department of Defense Credit Program Account'' to carry out the capital assistance program, including loans, loan guarantees, and technical assistance, established under section 149(e) of title 10, United States Code: Provided, That-- (1) such amounts are available to subsidize gross obligations for the principal amount of direct loans, and total loan principal, any part of which is to be guaranteed, not to exceed $100,000,000,000; and (2) such amounts are available to cover all costs and expenditures as provided under section 149(e)(5)(B) of title 10, United States Code. SEC. 20006. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR IMPROVING THE EFFICIENCY AND CYBERSECURITY OF THE DEPARTMENT OF DEFENSE. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $150,000,000 for business systems replacement to accelerate the audits of the financial statements of the Department of Defense pursuant to chapter 9A and section 2222 of title 10, United States Code; (2) $200,000,000 for the deployment of automation and artificial intelligence to accelerate the audits of the financial statements of the Department of Defense pursuant to chapter 9A and section 2222 of title 10, United States Code; (3) $10,000,000 for the improvement of the budgetary and programmatic infrastructure of the Office of the Secretary of Defense; and (4) $20,000,000 for defense cybersecurity programs of the Defense Advanced Research Projects Agency. SEC. 20007. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR AIR SUPERIORITY. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $3,150,000,000 to increase F-15EX aircraft production; (2) $361,220,000 to prevent the retirement of F-22 aircraft; (3) $127,460,000 to prevent the retirement of F-15E aircraft; (4) $187,000,000 to accelerate installation of F-16 electronic warfare capability; (5) $116,000,000 for C-17A Mobility Aircraft Connectivity; (6) $84,000,000 for KC-135 Mobility Aircraft Connectivity; (7) $440,000,000 to increase C-130J production; (8) $474,000,000 to increase EA-37B production; (9) $678,000,000 to accelerate the Collaborative Combat Aircraft program; (10) $400,000,000 to accelerate production of the F-47 aircraft; (11) $750,000,000 accelerate the FA/XX aircraft; (12) $100,000,000 for production of Advanced Aerial Sensors; (13) $160,000,000 to accelerate V-22 nacelle and reliability and safety improvements; (14) $100,000,000 to accelerate production of MQ-25 aircraft; (15) $270,000,000 for development, procurement, and integration of Marine Corps unmanned combat aircraft; (16) $96,000,000 for the procurement and integration of infrared search and track pods; (17) $50,000,000 for the procurement and integration of additional F-15EX conformal fuel tanks; (18) $600,000,000 for the development, procurement, and integration of Air Force long-range strike aircraft; and (19) $500,000,000 for the development, procurement, and integration of Navy long-range strike aircraft. SEC. 20008. ENHANCEMENT OF RESOURCES FOR NUCLEAR FORCES. (a) DOD Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $2,500,000,000 for risk reduction activities for the Sentinel intercontinental ballistic missile program; (2) $4,500,000,000 only for expansion of production capacity of B-21 long-range bomber aircraft and the purchase of aircraft only available through the expansion of production capacity; (3) $500,000,000 for improvements to the Minuteman III intercontinental ballistic missile system; (4) $100,000,000 for capability enhancements to intercontinental ballistic missile reentry vehicles; (5) $148,000,000 for the expansion of D5 missile motor production; (6) $400,000,000 to accelerate the development of Trident D5LE2 submarine-launched ballistic missiles; (7) $2,000,000,000 to accelerate the development, procurement, and integration of the nuclear-armed sea- launched cruise missile; (8) $62,000,000 to convert Ohio-class submarine tubes to accept additional missiles, not to be obligated before March 1, 2026; (9) $168,000,000 to accelerate the production of the Survivable Airborne Operations Center program; (10) $65,000,000 to accelerate the modernization of nuclear command, control, and communications; (11) $210,300,000 for the increased production of MH-139 helicopters; and (12) $150,000,000 to accelerate the development, procurement, and integration of military nuclear weapons delivery programs. (b) NNSA Appropriations.--In addition to amounts otherwise available, there are appropriated to the Administrator of the National Nuclear Security Administration for fiscal year 2025, out of any money in the [[Page S3796]] Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $200,000,000 to perform National Nuclear Security Administration Phase 1 studies pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (2) $540,000,000 to address deferred maintenance and repair needs of the National Nuclear Security Administration pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (3) $1,000,000,000 to accelerate the construction of National Nuclear Security Administration facilities pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (4) $400,000,000 to accelerate the development, procurement, and integration of the warhead for the nuclear- armed sea-launched cruise missile pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (5) $750,000,000 to accelerate primary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (6) $750,000,000 to accelerate secondary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (7) $120,000,000 to accelerate domestic uranium enrichment centrifuge deployment for defense purposes pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (8) $10,000,000 for National Nuclear Security Administration evaluation of spent fuel reprocessing technology; and (9) $115,000,000 for accelerating nuclear national security missions through artificial intelligence. SEC. 20009. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES TO IMPROVE CAPABILITIES OF UNITED STATES INDO- PACIFIC COMMAND. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $365,000,000 for Army exercises and operations in the Western Pacific area of operations; (2) $53,000,000 for Special Operations Command exercises and operations in the Western Pacific area of operations; (3) $47,000,000 for Marine Corps exercises and operations in Western Pacific area of operations; (4) $90,000,000 for Air Force exercises and operations in Western Pacific area of operations; (5) $532,600,000 for the Pacific Air Force biennial large- scale exercise; (6) $19,000,000 for the development of naval small craft capabilities; (7) $35,000,000 for military additive manufacturing capabilities in the United States Indo-Pacific Command area of operations west of the international dateline; (8) $450,000,000 for the development of airfields within the area of operations of United States Indo-Pacific Command; (9) $1,100,000,000 for development of infrastructure within the area of operations of United States Indo-Pacific Command; (10) $124,000,000 for mission networks for United States Indo-Pacific Command; (11) $100,000,000 for Air Force regionally based cluster pre-position base kits; (12) $115,000,000 for exploration and development of existing Arctic infrastructure; (13) $90,000,000 for the accelerated development of non- kinetic capabilities; (14) $20,000,000 for United States Indo-Pacific Command military exercises; (15) $143,000,000 for anti-submarine sonar arrays; (16) $30,000,000 for surveillance and reconnaissance capabilities for United States Africa Command; (17) $30,000,000 for surveillance and reconnaissance capabilities for United States Indo-Pacific Command; (18) $500,000,000 for the development, coordination, and deployment of economic competition effects within the Department of Defense; (19) $10,000,000 for the expansion of Department of Defense workforce for economic competition; (20) $1,000,000,000 for offensive cyber operations; (21) $500,000,000 for personnel and operations costs associated with forces assigned to United States Indo-Pacific Command; (22) $300,000,000 for the procurement of mesh network communications capabilities for Special Operations Command Pacific; (23) $850,000,000 for the replenishment of military articles; (24) $200,000,000 for acceleration of Guam Defense System program; (25) $68,000,000 for Space Force facilities improvements; (26) $150,000,000 for ground moving target indicator military satellites; (27) $528,000,000 for DARC and SILENTBARKER military space situational awareness programs; (28) $80,000,000 for Navy Operational Support Division; (29) $1,000,000,000 for the X-37B military spacecraft program; (30) $3,650,000,000 for the development, procurement, and integration of United States military satellites and the protection of United States military satellites. (31) $125,000,000 for the development, procurement, and integration of military space communications. (32) $350,000,000 for the development, procurement, and integration of military space command and control systems. SEC. 20010. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR IMPROVING THE READINESS OF THE DEPARTMENT OF DEFENSE. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $1,400,000,000 for a pilot program on OPN-8 maritime spares and repair rotable pool; (2) $700,000,000 for a pilot program on OPN-8 maritime spares and repair rotable pool for amphibious ships; (3) $2,118,000,000 for spares and repairs to keep Air Force aircraft mission capable; (4) $1,500,000,000 for Army depot modernization and capacity enhancement; (5) $2,000,000,000 for Navy depot and shipyard modernization and capacity enhancement; (6) $250,000,000 for Air Force depot modernization and capacity enhancement; (7) $1,640,000,000 for Special Operations Command equipment, readiness, and operations; (8) $500,000,000 for National Guard unit readiness; (9) $400,000,000 for Marine Corps readiness and capabilities; (10) $20,000,000 for upgrades to Marine Corps utility helicopters; (11) $310,000,000 for next-generation vertical lift, assault, and intra-theater aeromedical evacuation aircraft; (12) $75,000,000 for the procurement of anti-lock braking systems for Army wheeled transport vehicles; (13) $230,000,000 for the procurement of Army wheeled combat vehicles; (14) $63,000,000 for the development of advanced rotary- wing engines; (15) $241,000,000 for the development, procurement, and integration of Marine Corps amphibious vehicles; (16) $250,000,000 for the procurement of Army tracked combat transport vehicles; (17) $98,000,000 for additional Army light rotary-wing capabilities; (18) $1,500,000,000 for increased depot maintenance and shipyard maintenance activities; (19) $2,500,000,000 for Air Force facilities sustainment, restoration, and modernization; (20) $92,500,000 for the completion of Robotic Combat Vehicle prototyping; (21) $125,000,000 for Army operations; (22) $10,000,000 for the Air Force Concepts, Development, and Management Office; and (23) $320,000,000 for Joint Special Operations Command. SEC. 20011. IMPROVING DEPARTMENT OF DEFENSE BORDER SUPPORT AND COUNTER-DRUG MISSIONS. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $1,000,000,000 for the deployment of military personnel in support of border operations, operations and maintenance activities in support of border operations, counter-narcotics and counter-transnational criminal organization mission support, the operation of national defense areas and construction in national defense areas, and the temporary detention of migrants on Department of Defense installations, in accordance with chapter 15 of title 10, United States Code. SEC. 20012. DEPARTMENT OF DEFENSE OVERSIGHT. In addition to amounts otherwise available, there is appropriated to the Inspector General of the Department of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available through September 30, 2029, to monitor Department of Defense activities for which funding is appropriated in this title, including-- (1) programs with mutual technological dependencies; (2) programs with related data management and data ownership considerations; and (3) programs particularly vulnerable to supply chain disruptions and long lead time components. SEC. 20013. MILITARY CONSTRUCTION PROJECTS AUTHORIZED. (a) Authorization of Appropriations.--Funds are hereby authorized to be appropriated for military construction, land acquisition, and military family housing functions of each military department (as defined in section 101(a) of title 10, United States Code) as specified in this title. (b) Spending Plan.--Not later than 30 days after the date of the enactment of this title, the Secretary of each military department shall submit to the Committees on Armed Services of the Senate and House of Representatives a detailed spending plan by project for all funds made available by this title to be expended on military construction projects. SEC. 20014. MULTI-YEAR OPERATIONAL PLAN. (a) In General.--Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense and the Administrator of the National Nuclear Security Administration shall submit to the Committees on Armed Services of the Senate and the House of Representatives a plan detailing [[Page S3797]] how the funds appropriated to the Department of Defense and the National Nuclear Security Administration under the Act will be spent over the four-year period ending with fiscal year 2029. (b) Quarterly Updates.-- (1) In general.--Not later than the last day of each calendar quarter beginning during the applicable period, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the plan established under subsection (a), including-- (A) any updates to the plan; (B) progress made in implementing the plan; and (C) any changes in circumstances or challenges in implementing the plan. (2) Applicable period.--For purposes of paragraph (1), the applicable period is the period beginning one year after the date the plan required under subsection (a) is due and ending on September 30, 2029. (c) Reduction in Appropriation.-- (1) In general.--In the case of any failure to submit a plan required under subsection (a) or a report required under subsection (b) by the date specified in paragraph (2), the amounts made available to the Department of Defense under this Act shall be reduced by $100,000 for each day after such specified date that the report has not been submitted to Congress. (2) Specified date.--For purposes of the reduction in appropriations under paragraph (1), the specified date is the date that is 60 days after the date the plan or report is required to be submitted under subsection (a) or (b), as the case may be. TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS SEC. 30001. FUNDING CAP FOR THE BUREAU OF CONSUMER FINANCIAL PROTECTION. Section 1017(a)(2)(A)(iii) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497(a)(2)(A)(iii)) is amended by striking ``12'' and inserting ``6.5''. SEC. 30002. RESCISSION OF FUNDS FOR GREEN AND RESILIENT RETROFIT PROGRAM FOR MULTIFAMILY HOUSING. The unobligated balances of amounts made available under section 30002(a) of the Act entitled ``An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14'', approved August 16, 2022 (Public Law 117-169; 136 Stat. 2027) are rescinded. SEC. 30003. SECURITIES AND EXCHANGE COMMISSION RESERVE FUND. (a) In General.--Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d) is amended-- (1) by striking subsection (i); and (2) by redesignating subsections (j) and (k) as subsections (i) and (j), respectively. (b) Technical and Conforming Amendment.--Section 21F(g)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 78u- 6(g)(2)) is amended to read as follows: ``(a) Use of Fund.--The Fund shall be available to the Commission, without further appropriation or fiscal year limitation, for paying awards to whistleblowers as provided in subsection (b).''. (c) Transition Provision.--During the period beginning on the date of enactment of this Act and ending on October 1, 2025, the Securities and Exchange Commission may expend amounts in the Securities and Exchange Commission Reserve Fund that were obligated before the date of enactment of this Act for any program, project, or activity that is ongoing (as of the day before the date of enactment of this Act) in accordance with subsection (i) of section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d), as in effect on the day before the date of enactment of this Act. (d) Transfer of Remaining Amounts.--Effective on October 1, 2025, the obligated and unobligated balances of amounts in the Securities and Exchange Commission Reserve Fund shall be transferred to the general fund of the Treasury. (e) Closing of Account.--For the purposes of section 1555 of title 31, United States Code, the Securities and Exchange Commission Reserve Fund shall be considered closed, and thereafter shall not be available for obligation or expenditure for any purpose, upon execution of the transfer required under subsection (d). SEC. 30004. APPROPRIATIONS FOR DEFENSE PRODUCTION ACT. In addition to amounts otherwise available, there is appropriated for fiscal year 2025, out of amounts not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2027, to carry out the Defense Production Act (50 U.S.C. 4501 et seq.). TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION SEC. 40001. COAST GUARD MISSION READINESS. (a) In General.--Chapter 11 of title 14, United States Code, is amended by adding at the end the following: ``Subchapter V--Coast Guard Mission Readiness ``Sec. 1181. Special appropriations ``In addition to amounts otherwise available, there is appropriated to the Coast Guard for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $24,593,500,000, to remain available until September 30, 2029, notwithstanding paragraphs (1) and (2) of section 1105(a) and sections 1131, 1132, 1133, and 1156, to use expedited processes to procure or acquire new operational assets and systems, to maintain existing assets and systems, to design, construct, plan, engineer, and improve necessary shore infrastructure, and to enhance operational resilience for monitoring, search and rescue, interdiction, hardening of maritime approaches, and navigational safety, of which-- ``(1) $1,142,500,000 is provided for procurement and acquisition of fixed-wing aircraft, equipment related to such aircraft and training simulators and program management for such aircraft, to provide for security of the maritime border; ``(2) $2,283,000,000 is provided for procurement and acquisition of rotary-wing aircraft, equipment related to such aircraft and training simulators and program management for such aircraft, to provide for security of the maritime border; ``(3) $266,000,000 is provided for procurement and acquisition of long-range unmanned aircraft and base stations, equipment related to such aircraft and base stations, and program management for such aircraft and base stations, to provide for security of the maritime border; ``(4) $4,300,000,000 is provided for procurement of Offshore Patrol Cutters, equipment related to such cutters, and program management for such cutters, to provide operational presence and security of the maritime border and for interdiction of persons and controlled substances; ``(5) $1,000,000,000 is provided for procurement of Fast Response Cutters, equipment related to such cutters, and program management for such cutters, to provide operational presence and security of the maritime border and for interdiction of persons and controlled substances; ``(6) $4,300,000,000 is provided for procurement of Polar Security Cutters, equipment related to such cutters, and program management for such cutters, to ensure timely presence of the Coast Guard in the Arctic and Antarctic regions; ``(7) $3,500,000,000 is provided for procurement of Arctic Security Cutters, equipment related to such cutters, and program management for such cutters, to ensure timely presence of the Coast Guard in the Arctic and Antarctic regions; ``(8) $816,000,000 is provided for procurement of light and medium icebreaking cutters, and equipment relating to such cutters, from shipyards that have demonstrated success in the cost-effective application of design standards and in delivering, on schedule and within budget, vessels of a size and tonnage that are not less than the size and tonnage of the cutters described in this paragraph, and for program management for such cutters, to expand domestic icebreaking capacity; ``(9) $162,000,000 is provided for procurement of Waterways Commerce Cutters, equipment related to such cutters, and program management for such cutters, to support aids to navigation, waterways and coastal security, and search and rescue in inland waterways; ``(10) $4,379,000,000 is provided for design, planning, engineering, recapitalization, construction, rebuilding, and improvement of, and program management for, shore facilities, of which-- ``(A) $425,000,000 is provided for design, planning, engineering, construction of, and program management for-- ``(i) the enlisted boot camp barracks and multi-use training center; and ``(ii) other related facilities at the enlisted boot camp; ``(B) $500,000,000 is provided for-- ``(i) construction, improvement, and dredging at the Coast Guard Yard; and ``(ii) acquisition of a floating drydock for the Coast Guard Yard; ``(C) not more than $2,729,500,000 is provided for homeports and hangars for cutters and aircraft for which funds are appropriated under paragraph (1) through (9); and ``(D) $300,000,000 is provided for homeporting of the existing polar icebreaker commissioned into service in 2025; ``(11) $2,200,000,000 is provided for aviation, cutter, and shore facility depot maintenance and maintenance of command, control, communication, computer, and cyber assets; ``(12) $170,000,000 is provided for improving maritime domain awareness on the maritime border, at United States ports, at land-based facilities and in the cyber domain; and ``(13) $75,000,000 is provided to contract the services of, acquire, or procure autonomous maritime systems.''. (b) Technical and Conforming Amendment.--The analysis for chapter 11 of title 14, United States Code, is amended by adding at the end the following: ``subchapter v--coast guard mission readiness ``1181. Special appropriations.''. SEC. 40002. SPECTRUM AUCTIONS. (a) Definitions.--In this section: (1) Assistant secretary.--The term ``Assistant Secretary'' means the Assistant Secretary of Commerce for Communications and Information. (2) Commission.--The term ``Commission'' means the Federal Communications Commission. (3) Covered band.--The term ``covered band''-- (A) except as provided in subparagraph (B), means the band of frequencies between 1.3 gigahertz and 10.5 gigahertz; and (B) does not include-- (i) the band of frequencies between 3.1 gigahertz and 3.45 gigahertz for purposes of auction, reallocation, modification, or withdrawal; or (ii) the band of frequencies between 7.4 gigahertz and 8.4 gigahertz for purposes of auction, reallocation, modification, or withdrawal. [[Page S3798]] (4) Full-power commercial licensed use cases.--The term ``full-power commercial licensed use cases'' means flexible use wireless broadband services with base station power levels sufficient for high-power, high-density, and wide-area commercial mobile services, consistent with the service rules under part 27 of title 47, Code of Federal Regulations, or any successor regulations, for wireless broadband deployments throughout the covered band. (b) General Auction Authority.-- (1) Amendment.--Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)) is amended by striking ``grant a license or permit under this subsection shall expire March 9, 2023'' and all that follows and inserting the following: "complete a system of competitive bidding under this subsection shall expire September 30, 2034, except that, with respect to the electromagnetic spectrum-- `` ``(A) between the frequencies of 3.1 gigahertz and 3.45 gigahertz, such authority shall not apply; and ``(B) between the frequencies of 7.4 gigahertz and 8.4 gigahertz, such authority shall not apply.''. (2) Spectrum auctions.--The Commission shall grant licenses through systems of competitive bidding, before the expiration of the general auction authority of the Commission under section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by paragraph (1) of this subsection, for not less than 300 megahertz, including by completing a system of competitive bidding not later than 2 years after the date of enactment of this Act for not less than 100 megahertz in the band between 3.98 gigahertz and 4.2 gigahertz. (c) Identification for Reallocation.-- (1) In general.--The Assistant Secretary, in consultation with the Commission, shall identify 500 megahertz of frequencies in the covered band for reallocation to non- Federal use, shared Federal and non-Federal use, or a combination thereof, for full-power commercial licensed use cases, that-- (A) as of the date of enactment of this Act, are allocated for Federal use; and (B) shall be in addition to the 300 megahertz of frequencies for which the Commission grants licenses under subsection (b)(2). (2) Schedule.--The Assistant Secretary shall identify the frequencies under paragraph (1) according to the following schedule: (A) Not later than 2 years after the date of enactment of this Act, the Assistant Secretary shall identify not less than 200 megahertz of frequencies within the covered band. (B) Not later than 4 years after the date of enactment of this Act, the Assistant Secretary shall identify any remaining bandwidth required to be identified under paragraph (1). (3) Required analysis.-- (A) In general.--In determining under paragraph (1) which specific frequencies within the covered band to reallocate, the Assistant Secretary shall determine the feasibility of the reallocation of frequencies. (B) Requirements.--In conducting the analysis under subparagraph (A), the Assistant Secretary shall assess net revenue potential, relocation or sharing costs, as applicable, and the feasibility of reallocating specific frequencies, with the goal of identifying the best approach to maximize net proceeds of systems of competitive bidding for the Treasury, consistent with section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)). (d) Auctions.--The Commission shall grant licenses for the frequencies identified for reallocation under subsection (c) through systems of competitive bidding in accordance with the following schedule: (1) Not later than 4 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for not less than 200 megahertz of the frequencies. (2) Not later than 8 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for any frequencies identified under subsection (c) that remain to be auctioned after compliance with paragraph (1) of this subsection. (e) Limitation.--The President shall modify or withdraw any frequency proposed for reallocation under this section not later than 60 days before the commencement of a system of competitive bidding scheduled by the Commission with respect to that frequency, if the President determines that such modification or withdrawal is necessary to protect the national security of the United States. (f) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Department of Commerce for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available through September 30, 2034, to provide additional support to the Assistant Secretary to-- (1) conduct a timely spectrum analysis of the bands of frequencies-- (A) between 2.7 gigahertz and 2.9 gigahertz; (B) between 4.4 gigahertz and 4.9 gigahertz; and (C) between 7.25 gigahertz and 7.4 gigahertz; and (2) publish a biennial report, with the last report to be published not later than June 30, 2034, on the value of all spectrum used by Federal entities (as defined in section 113(l) of the National Telecommunications and Information Administration Organization Act (47 U.S.C. 923(l))), that assesses the value of bands of frequencies in increments of not more than 100 megahertz. SEC. 40003. AIR TRAFFIC CONTROL IMPROVEMENTS. (a) In General.--For the purpose of the acquisition, construction, sustainment, and improvement of facilities and equipment necessary to improve or maintain aviation safety, in addition to amounts otherwise made available, there is appropriated to the Administrator of the Federal Aviation Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $4,750,000,000 for telecommunications infrastructure modernization and systems upgrades; (2) $3,000,000,000 for radar systems replacement; (3) $500,000,000 for runway safety technologies, runway lighting systems, airport surface surveillance technologies, and to carry out section 347 of the FAA Reauthorization Act of 2024; (4) $300,000,000 for Enterprise Information Display Systems; (5) $80,000,000 to acquire and install not less than 50 Automated Weather Observing Systems, to acquire and install not less than 60 Visual Weather Observing Systems, to acquire and install not less than 64 weather camera sites, and to acquire and install weather stations; (6) $40,000,000 to carry out section 44745 of title 49, United States Code, (except for activities described in paragraph (5)); (7) $1,900,000,000 for necessary actions to construct a new air route traffic control center (in this subsection referred to as ``ARTCC''): Provided, That not more than 2 percent of such amount is used for planning or administrative purposes: Provided further, That at least 3 existing ARTCCs are divested and integrated into the newly constructed ARTCC; (8) $100,000,000 to conduct an ARTCC Realignment and Consolidation Effort under which at least 10 existing ARTCCs are closed or consolidated to facilitate recapitalization of ARTCC facilities owned and operated by the Federal Aviation Administration; (9) $1,000,000,000 to support recapitalization and consolidation of terminal radar approach control facilities (in this subsection referred to as ``TRACONs''), the analysis and identification of TRACONs for divestment, consolidation, or integration, planning, site selection, facility acquisition, and transition activities and other appropriate activities for carrying out such divestment, consolidation, or integration, and the establishment of brand new TRACONs; (10) $350,000,000 for unstaffed infrastructure sustainment and replacement; (11) $50,000,000 to carry out section 961 of the FAA Reauthorization Act of 2024; (12) $300,000,000 to carry out section 619 of the FAA Reauthorization Act of 2024; (13) $50,000,000 to carry out section 621 of the FAA Reauthorization Act of 2024 and to deploy remote tower technology at untowered airports; and (14) $100,000,000 for air traffic controller advanced training technologies. (b) Quarterly Reporting.--Not later than 180 days after the date of enactment of this Act, and every 90 days thereafter, the Administrator of the Federal Aviation Administration shall submit to Congress a report that describes any expenditures under this section. SEC. 40004. SPACE LAUNCH AND REENTRY LICENSING AND PERMITTING USER FEES. (a) In General.--Chapter 509 of title 51, United States Code, is amended by adding at the end the following new section: ``Sec. 50924. Space launch and reentry licensing and permitting user fees ``(a) Fees.-- ``(1) In general.--The Secretary of Transportation shall impose a fee, which shall be deposited in the account established under subsection (b), on each launch or reentry carried out under a license or permit issued under section 50904 during 2026 or a subsequent year, in an amount equal to the lesser of-- ``(A) the amount specified in paragraph (2) for the year involved per pound of the weight of the payload; or ``(B) the amount specified in paragraph (3) for the year involved. ``(2) Paragraph (2) specified amount.--The amount specified in this paragraph is-- ``(A) for 2026, $0.25; ``(B) for 2027, $0.35; ``(C) for 2028, $0.50; ``(D) for 2029, $0.60; ``(E) for 2030, $0.75; ``(F) for 2031, $1; ``(G) for 2032, $1.25; ``(H) for 2033, $1.50; and ``(I) for 2034 and each subsequent year, the amount specified in this paragraph for the previous year increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) over the previous year. ``(3) Paragraph (3) specified amount.--The amount specified in this paragraph is-- ``(A) for 2026, $30,000; ``(B) for 2027, $40,000; ``(C) for 2028, $50,000; ``(D) for 2029, $75,000; ``(E) for 2030, $100,000; [[Page S3799]] ``(F) for 2031, $125,000; ``(G) for 2032, $170,000; ``(H) for 2033, $200,000; and ``(I) for 2034 and each subsequent year, the amount specified in this paragraph for the previous year increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) over the previous year. ``(b) Office of Commercial Space Transportation Launch and Reentry Licensing and Permitting Fund.--There is established in the Treasury of the United States a separate account, which shall be known as the `Office of Commercial Space Transportation Launch and Reentry Licensing and Permitting Fund', for the purposes of expenses of the Office of Commercial Space Transportation of the Federal Aviation Administration and to carry out section 630(b) of the FAA Reauthorization Act of 2024. 70 percent of the amounts deposited into the fund shall be available for such purposes and shall be available without further appropriation and without fiscal year limitation.''. (b) Clerical Amendment.--The table of sections for chapter 509 of title 51, United States Code, is amended by inserting after the item relating to section 50923 the following: ``50924. Space launch and reentry licensing and permitting user fees.''. SEC. 40005. MARS MISSIONS, ARTEMIS MISSIONS, AND MOON TO MARS PROGRAM. (a) In General.--Chapter 203 of title 51, United States Code, is amended by adding at the end the following: ``Sec. 20306. Special appropriations for Mars missions, Artemis missions, and Moon to Mars program ``(a) In General.--In addition to amounts otherwise available, there is appropriated to the Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $9,995,000,000, to remain available until September 30, 2032, to use as follows: ``(1) $700,000,000, to be obligated not later than fiscal year 2026, for the procurement, using a competitively bid, firm fixed-price contract with a United States commercial provider (as defined in section 50101(7)), of a high- performance Mars telecommunications orbiter-- ``(A) that-- ``(i) is capable of providing robust, continuous communications for-- ``(I) a Mars sample return mission, as described in section 432(3)(C) of the National Aeronautics and Space Administration Transition Authorization Act of 2017 (51 U.S.C. 20302 note; Public Law 115-10); and ``(II) future Mars surface, orbital, and human exploration missions; ``(ii) supports autonomous operations, onboard processing, and extended mission duration capabilities; and ``(iii) is selected from among the commercial proposals that-- ``(I) received funding from the Administration in fiscal year 2024 or 2025 for commercial design studies for Mars Sample Return; and ``(II) proposed a separate, independently launched Mars telecommunication orbiter supporting an end-to-end Mars sample return mission; and ``(B) which shall be delivered to the Administration not later than December 31, 2028. ``(2) $2,600,000,000 to meet the requirements of section 20302(a) using the program of record known, as of the date of the enactment of this section, as `Gateway', and as described in section 10811(b)(2)(B)(iv) of the National Aeronautics and Space Administration Authorization Act of 2022 (51 U.S.C. 20302 note; Public Law 117-167), of which not less than $750,000,000 shall be obligated for each of fiscal years 2026, 2027, and 2028. ``(3) $4,100,000,000 for expenses related to meeting the requirements of section 10812 of the National Aeronautics and Space Administration Authorization Act of 2022 (51 U.S.C. 20301; Public Law 117-167) for the procurement, transportation, integration, operation, and other necessary expenses of the Space Launch System for Artemis Missions IV and V, of which not less than $1,025,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. ``(4) $20,000,000 for expenses related to the continued procurement of the multi-purpose crew vehicle described in section 303 of the National Aeronautics and Space Administration Authorization Act of 2010 (42 U.S.C. 18323), known as the `Orion', for use with the Space Launch System on the Artemis IV Mission and reuse in subsequent Artemis Missions, of which not less than $20,000,000 shall be obligated not later than fiscal year 2026. ``(5) $1,250,000,000 for expenses related to the operation of the International Space Station and for the purpose of meeting the requirement under section 503(a) of the National Aeronautics and Space Administration Authorization Act of 2010 (42 U.S.C. 18353(a)), of which not less than $250,000,000 shall be obligated for such expenses for each of fiscal years 2025, 2026, 2027, 2028, and 2029. ``(6) $1,000,000,000 for infrastructure improvements at the manned spaceflight centers of the Administration, of which not less than-- ``(A) $120,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 12641 (53 Fed. Reg. 18816; relating to designating certain facilities of the National Aeronautics and Space Administration in the State of Mississippi as the John C. Stennis Space Center); ``(B) $250,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 11129 (28 Fed. Reg. 12787; relating to designating certain facilities of the National Aeronautics and Space Administration and of the Department of Defense, in the State of Florida, as the John F. Kennedy Space Center); ``(C) $300,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in the Joint Resolution entitled `Joint Resolution to designate the Manned Spacecraft Center in Houston, Texas, as the ``Lyndon B. Johnson Space Center'' in honor of the late President', approved February 17, 1973 (Public Law 93-8; 87 Stat. 7); ``(D) $100,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 10870 (25 Fed. Reg. 2197; relating to designating the facilities of the National Aeronautics and Space Administration at Huntsville, Alabama, as the George C. Marshall Space Flight Center); ``(E) $30,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the Michoud Assembly Facility in New Orleans, Louisiana; and ``(F) $85,000,000 shall be obligated to carry out subsection (b), of which not less than $5,000,000 shall be obligated for the transportation of the space vehicle described in that subsection, with the remainder transferred not later than the date that is 18 months after the date of the enactment of this section to the entity designated under that subsection, for the purpose of construction of a facility to house the space vehicle referred to in that subsection. ``(7) $325,000,000 to fulfill contract number 80JSC024CA002 issued by the National Aeronautics and Space Administration on June 26, 2024. ``(b) Space Vehicle Transfer.-- ``(1) In general.--Not later than 30 days after the date of the enactment of this section, the Administrator shall identify a space vehicle described in paragraph (2) to be-- ``(A) transferred to a field center of the Administration that is involved in the administration of the Commercial Crew Program (as described in section 302 of the National Aeronautics and Space Administration Transition Authorization Act of 2017 (51 U.S.C. 50111 note; Public Law 115-10)); and ``(B) placed on public exhibition at an entity within the Metropolitan Statistical Area where such center is located. ``(2) Space vehicle described.--A space vehicle described in this paragraph is a vessel that-- ``(A) has flown into space; ``(B) has carried astronauts; and ``(C) is selected with the concurrence of an entity designated by the Administrator. ``(3) Transfer.-- ``(A) In general.--Not later than 18 months after the date of the enactment of this section, the space vehicle identified under paragraph (1) shall be transferred to an entity designated by the Administrator. ``(B) Title.--Not later than 1 year after the date on which a space vehicle is identified under paragraph (1), the Federal Government shall, as applicable, transfer the title to the space vehicle to the entity designated by the Administrator. ``(C) Responsibility.--The transfer under this paragraph shall be carried out under the Administrator or acting Administrator. ``(c) Obligation of Funds.--Funds appropriated under subsection (a) shall be obligated as follows: ``(1) Not less than 50 percent of the total funds in subsection (a) shall be obligated not later than September 30, 2028. ``(2) 100 percent of funds shall be obligated not later than September 30, 2029. ``(3) All associated outlays shall occur not later than September 30, 2034.''. (b) Clerical Amendment.--The table of sections for chapter 203 of title 51, United States Code, is amended by adding at the end the following: ``20306. Special appropriations for Mars missions, Artemis missions, and Moon to Mars program.''. SEC. 40006. CORPORATE AVERAGE FUEL ECONOMY CIVIL PENALTIES. (a) In General.--Section 32912 of title 49, United States Code, is amended-- (1) in subsection (b), in the matter preceding paragraph (1), by striking ``$5'' and inserting ``$0.00''; and (2) in subsection (c)(1)(B), by striking ``$10'' and inserting ``$0.00''. (b) Effect; Applicability.--The amendments made by subsection (a) shall-- (1) take effect on the date of enactment of this section; and (2) apply to all model years of a manufacturer for which the Secretary of Transportation has not provided a notification pursuant to section 32903(b)(2)(B) of title 49, United States Code, specifying the penalty due for the average fuel economy of that manufacturer being less than the applicable standard prescribed under section 32902 of that title. [[Page S3800]] SEC. 40007. PAYMENTS FOR LEASE OF METROPOLITAN WASHINGTON AIRPORTS. Section 49104(b) of title 49, United States Code, is amended to read as follows: ``(b) Payments.-- ``(1) In general.--Subject to paragraph (2), under the lease, the Airports Authority must pay to the general fund of the Treasury annually an amount, computed using the GNP Price Deflator-- ``(A) during the period from 1987 to 2026, equal to $3,000,000 in 1987 dollars; and ``(B) for 2027 and subsequent years, equal to $15,000,000 in 2027 dollars. ``(2) Renegotiation.--The Secretary and the Airports Authority shall renegotiate the level of lease payments at least once every 10 years to ensure that in no year the amount specified in paragraph (1)(B) is less than $15,000,000 in 2027 dollars.''. SEC. 40008. RESCISSION OF CERTAIN AMOUNTS FOR THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION. Any unobligated balances of amounts appropriated or otherwise made available by sections 40001, 40002, 40003, and 40004 of Public Law 117-169 (136 Stat. 2028) are hereby rescinded. SEC. 40009. REDUCTION IN ANNUAL TRANSFERS TO TRAVEL PROMOTION FUND. Subsection (d)(2)(B) of the Travel Promotion Act of 2009 (22 U.S.C. 2131(d)(2)(B)) is amended by striking ``$100,000,000'' and inserting ``$20,000,000''. SEC. 40010. TREATMENT OF UNOBLIGATED FUNDS FOR ALTERNATIVE FUEL AND LOW-EMISSION AVIATION TECHNOLOGY. Out of the amounts made available by section 40007(a) of title IV of Public Law 117-169 (49 U.S.C. 44504 note), any unobligated balances of such amounts are hereby rescinded. SEC. 40011. RESCISSION OF AMOUNTS APPROPRIATED TO PUBLIC WIRELESS SUPPLY CHAIN INNOVATION FUND. Of the unobligated balances of amounts made available under section 106(a) of the CHIPS Act of 2022 (Public Law 117-167; 136 Stat. 1392), $850,000,000 are permanently rescinded. SEC. 40012. SUPPORT FOR ARTIFICIAL INTELLIGENCE UNDER THE BROADBAND EQUITY, ACCESS, AND DEPLOYMENT PROGRAM. (a) In General.--Section 60102 of division F of Public Law 117-58 (47 U.S.C. 1702) is amended-- (1) in subsection (a)(2)-- (A) by redesignating subparagraphs (B) through (N) as subparagraphs (F) through (R), respectively; (B) by redesignating subparagraph (A) as subparagraph (D); (C) by inserting before subparagraph (D), as so redesignated, the following: ``(A) Artificial intelligence.--The term `artificial intelligence' has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401). ``(B) Artificial intelligence model.--The term `artificial intelligence model' means a software component of an information system that implements artificial intelligence technology and uses computational, statistical, or machine- learning techniques to produce outputs from a defined set of inputs. ``(C) Artificial intelligence system.--The term `artificial intelligence system' means any data system, software, hardware, application, tool, or utility that operates, in whole or in part, using artificial intelligence.''; (D) by inserting after subparagraph (D), as so redesignated, the following: ``(E) Automated decision system.--The term `automated decision system' means any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues a simplified output, including a score, classification, or recommendation, to materially influence or replace human decision making.''; and (E) by striking subparagraph (O), as so redesignated, and inserting the following: ``(O) Project.--The term `project' means an undertaking by a subgrantee under this section to construct and deploy infrastructure for the provision of-- ``(i) broadband service; or ``(ii) artificial intelligence models, artificial intelligence systems, or automated decision systems.''; (2) in subsection (b), by adding at the end the following: ``(5) Appropriation for fiscal year 2025.-- ``(A) In general.--In addition to any amounts otherwise appropriated to the Program, there is appropriated to the Assistant Secretary for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended, to carry out the Program. ``(B) Set-aside for artificial intelligence infrastructure master services agreements.--Of the amount appropriated under subparagraph (A), $25,000,000 shall be used by the Assistant Secretary for the purpose of negotiating master services agreements on behalf of subgrantees of an eligible entity or political subdivision to enable access to quantity purchasing and licensing discounts for the construction, acquisition, and deployment of infrastructure for the provision of artificial intelligence models, artificial intelligence systems, or automated decision systems funded under this section.''; (3) in subsection (f)-- (A) in paragraph (5), by striking ``and'' at the end; (B) by redesignating paragraph (6) as paragraph (7); and (C) by inserting after paragraph (5) the following: ``(6) the construction and deployment of infrastructure for the provision of artificial intelligence models, artificial intelligence systems, or automated decision systems; and''; (4) in subsection (g)(3), by striking subparagraph (B) and inserting the following: ``(B) may, in addition to other authority under applicable law, deobligate grant funds awarded to an eligible entity that-- ``(i) violates paragraph (2); ``(ii) demonstrates an insufficient level of performance, or wasteful or fraudulent spending, as defined in advance by the Assistant Secretary; or ``(iii) if obligated any funds made available under subsection (b)(5)(A), is not in compliance with subsection (q) or (r); and''; (5) in subsection (j)(1)-- (A) in subparagraph (A)-- (i) in clause (iii), by striking ``and'' at the end; (ii) by redesignating clause (iv) as clause (v); and (iii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r); and''; (B) in subparagraph (B)-- (i) in clause (iii), by striking ``and'' at the end; (ii) by redesignating clause (iv) as clause (v); and (iii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r); and''; and (C) in subparagraph (C)-- (i) by redesignating clauses (iv) and (v) as clauses (v) and (vi), respectively; and (ii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r);''; and (6) by adding at the end the following: ``(p) Receipt of Funds Conditioned on Temporary Pause and Efficiencies.--On and after the date of enactment of this subsection, no funds made available under subsection (b)(5)(A) may be obligated to an eligible entity or a political subdivision thereof that is not in compliance with subsections (q) and (r). ``(q) Temporary Pause.-- ``(1) In general.--Except as provided in paragraph (2), no eligible entity or political subdivision thereof to which funds made available under subsection (b)(5)(A) are obligated on or after the date of enactment of this subsection may enforce, during the 10-year period beginning on the date of enactment of this subsection, any law or regulation of that eligible entity or a political subdivision thereof limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce. ``(2) Rule of construction.--Paragraph (1) may not be construed to prohibit the enforcement of any law or regulation-- ``(A) the primary purpose and effect of which is to-- ``(i) remove legal impediments to, or facilitate the deployment or operation of, an artificial intelligence model, artificial intelligence system, or automated decision system; or ``(ii) streamline licensing, permitting, routing, zoning, procurement, or reporting procedures in a manner that facilitates the adoption of artificial intelligence models, artificial intelligence systems, or automated decision systems; or ``(B) that does not impose any substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirement on artificial intelligence models, artificial intelligence systems, or automated decision systems unless that requirement is imposed under-- ``(i) Federal law; or ``(ii) a generally applicable law, such as a body of common law; and ``(C) that does not impose a fee or bond unless-- ``(i) the fee or bond is reasonable and cost-based; and ``(ii) under the fee or bond, artificial intelligence models, artificial intelligence systems, and automated decision systems are treated in the same manner as other models and systems that perform comparable functions. ``(r) Master Services Agreements.--An eligible entity, or political subdivision thereof, to which funds made available under subsection (b)(5)(A) are obligated on or after the date of enactment of this subsection shall certify to the Assistant Secretary either that-- ``(1) each subgrantee of the eligible entity or political subdivision is utilizing applicable master services agreements negotiated using amounts made available under subsection (b)(5)(B); or ``(2) each contract, license, purchase order, or services agreement entered into, procured, or made by a subgrantee of the eligible entity or political subdivision for purposes described in subsection (b)(5)(B) is at least as cost- effective as the terms of executable master services agreements, as applicable, negotiated by the Assistant Secretary using [[Page S3801]] amounts made available under subsection (b)(5)(B).''. (b) Technical and Conforming Amendments.--Section 60102(a)(1) of division F of Public Law 117-58 (47 U.S.C. 1702(a)(1)) is amended-- (1) in subparagraph (B), by striking ``a project'' and inserting ``a project described in subsection (a)(2)(O)(i)''; and (2) in subparagraph (D), by striking ``a project'' and inserting ``a project described in subsection (a)(2)(O)(i)''. TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES Subtitle A--Oil and Gas Leasing SEC. 50101. ONSHORE OIL AND GAS LEASING. (a) Repeal of Inflation Reduction Act Provisions.-- (1) Onshore oil and gas royalty rates.--Subsection (a) of section 50262 of Public Law 117-169 (136 Stat. 2056) is repealed, and any provision of law amended or repealed by that subsection is restored or revived as if that subsection had not been enacted into law. (2) Noncompetitive leasing.--Subsection (e) of section 50262 of Public Law 117-169 (136 Stat. 2057) is repealed, and any provision of law amended or repealed by that subsection is restored or revived as if that subsection had not been enacted into law. (b) Requirement to Immediately Resume Onshore Oil and Gas Lease Sales.-- (1) In general.--The Secretary of the Interior shall immediately resume quarterly onshore oil and gas lease sales in compliance with the Mineral Leasing Act (30 U.S.C. 181 et seq.). (2) Requirement.--The Secretary of the Interior shall ensure-- (A) that any oil and gas lease sale required under paragraph (1) is conducted immediately on completion of all applicable scoping, public comment, and environmental analysis requirements under the Mineral Leasing Act (30 U.S.C. 181 et seq.) and the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and (B) that the processes described in subparagraph (A) are conducted in a timely manner to ensure compliance with subsection (b)(1). (3) Lease of oil and gas lands.--Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C. 226(b)(1)(A)), as amended by subsection (a), is amended by inserting ``For purposes of the previous sentence, the term `eligible lands' means all lands that are subject to leasing under this Act and are not excluded from leasing by a statutory prohibition, and the term `available', with respect to eligible lands, means those lands that have been designated as open for leasing under a land use plan developed under section 202 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712) and that have been nominated for leasing through the submission of an expression of interest, are subject to drainage in the absence of leasing, or are otherwise designated as available pursuant to regulations adopted by the Secretary.'' after ``sales are necessary.''. (c) Quarterly Lease Sales.-- (1) In general.--In accordance with the Mineral Leasing Act (30 U.S.C. 181 et seq.), each fiscal year, the Secretary of the Interior shall conduct a minimum of 4 oil and gas lease sales of available land in each of the following States: (A) Wyoming. (B) New Mexico. (C) Colorado. (D) Utah. (E) Montana. (F) North Dakota. (G) Oklahoma. (H) Nevada. (I) Alaska. (2) Requirement.--In conducting a lease sale under paragraph (1) in a State described in that paragraph, the Secretary of the Interior-- (A) shall offer not less than 50 percent of available parcels nominated for oil and gas development under the applicable resource management plan in effect for relevant Bureau of Land Management resource management areas within the applicable State; and (B) shall not restrict the parcels offered to 1 Bureau of Land Management field office within the applicable State unless all nominated parcels are located within the same Bureau of Land Management field office. (3) Replacement sales.--The Secretary of the Interior shall conduct a replacement sale during the same fiscal year if-- (A) a lease sale under paragraph (1) is canceled, delayed, or deferred, including for a lack of eligible parcels; or (B) during a lease sale under paragraph (1) the percentage of acreage that does not receive a bid is equal to or greater than 25 percent of the acreage offered. (d) Mineral Leasing Act Reforms.--Section 17 of the Mineral Leasing Act (30 U.S.C. 226), as amended by subsection (a), is amended-- (1) by striking the section designation and all that follows through the end of subsection (a) and inserting the following: ``SEC. 17. LEASING OF OIL AND GAS PARCELS. ``(a) Leasing Authorized.-- ``(1) In general.--Any parcel of land subject to disposition under this Act that is known or believed to contain oil or gas deposits shall be made available for leasing, subject to paragraph (2), by the Secretary of the Interior, not later than 18 months after the date of receipt by the Secretary of an expression of interest in leasing the applicable parcel of land available for disposition under this section, if the Secretary determines that the parcel of land is open to oil or gas leasing under the approved resource management plan applicable to the planning area in which the parcel of land is located that is in effect on the date on which the expression of interest was submitted to the Secretary (referred to in this subsection as the `approved resource management plan'). ``(2) Resource management plans.-- ``(A) Lease terms and conditions.--A lease issued by the Secretary under this section with respect to an applicable parcel of land made available for leasing under paragraph (1)-- ``(i) shall be subject to the terms and conditions of the approved resource management plan; and ``(ii) may not require any stipulations or mitigation requirements not included in the approved resource management plan. ``(B) Effect of amendment.--The initiation of an amendment to an approved resource management plan shall not prevent or delay the Secretary from making the applicable parcel of land available for leasing in accordance with that approved resource management plan if the other requirements of this section have been met, as determined by the Secretary.''; (2) in subsection (p), by adding at the end the following: ``(4) Term.--A permit to drill approved under this subsection shall be valid for a single, non-renewable 4-year period beginning on the date that the permit to drill is approved.''; and (3) by striking subsection (q) and inserting the following: ``(q) Commingling of Production.--The Secretary of the Interior shall approve applications allowing for the commingling of production from 2 or more sources (including the area of an oil and gas lease, the area included in a drilling spacing unit, a unit participating area, a communitized area, or non-Federal property) before production reaches the point of royalty measurement regardless of ownership, the royalty rates, and the number or percentage of acres for each source if the applicant agrees to install measurement devices for each source, utilize an allocation method that achieves volume measurement uncertainty levels within plus or minus 2 percent during the production phase reported on a monthly basis, or utilize an approved periodic well testing methodology. Production from multiple oil and gas leases, drilling spacing units, communitized areas, or participating areas from a single wellbore shall be considered a single source. Nothing in this subsection shall prevent the Secretary of the Interior from continuing the current practice of exercising discretion to authorize higher percentage volume measurement uncertainty levels if appropriate technical and economic justifications have been provided.''. SEC. 50102. OFFSHORE OIL AND GAS LEASING. (a) Lease Sales.-- (1) Gulf of america region.-- (A) In general.--Notwithstanding the 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Program (and any successor leasing program that does not satisfy the requirements of this section), in addition to lease sales which may be held under that program, and except within areas subject to existing oil and gas leasing moratoria, the Secretary of the Interior shall conduct a minimum of 30 region-wide oil and gas lease sales, in a manner consistent with the schedule described in subparagraph (B), in the region identified in the map depicting lease terms and economic conditions accompanying the final notice of sale of the Bureau of Ocean Energy Management entitled ``Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254'' (85 Fed. Reg. 8010 (February 12, 2020)). (B) Timing requirement.--Of the not fewer than 30 region- wide lease sales required under this paragraph, the Secretary of the Interior shall-- (i) hold not fewer than 1 lease sale in the region described in subparagraph (A) by December 15, 2025; (ii) hold not fewer than 2 lease sales in that region in each of calendar years 2026 through 2039, 1 of which shall be held by March 15 of the applicable calendar year and 1 of which shall be held after March 15 but not later than August 15 of the applicable calendar year; and (iii) hold not fewer than 1 lease sale in that region in calendar year 2040, which shall be held by March 15, 2040. (2) Alaska region.-- (A) In general.--The Secretary of the Interior shall conduct a minimum of 6 offshore lease sales, in a manner consistent with the schedule described in subparagraph (B), in the Cook Inlet Planning Area as identified in the 2017- 2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled ``Notice of Availability of the 2017-2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program'' (81 Fed. Reg. 84612 (November 23, 2016))). (B) Timing requirement.--Of the not fewer than 6 lease sales required under this paragraph, the Secretary of the Interior shall hold not fewer than 1 lease sale in the area described in subparagraph (A) in each of calendar years 2026 through 2028, and in each of calendar years 2030 through 2032, by March 15 of the applicable calendar year. (b) Requirements.-- (1) Terms and stipulations for gulf of america sales.--In conducting lease sales [[Page S3802]] under subsection (a)(1), the Secretary of the Interior-- (A) shall, subject to subparagraph (C), offer the same lease form, lease terms, economic conditions, and lease stipulations 4 through 9 as contained in the final notice of sale of the Bureau of Ocean Energy Management entitled ``Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254'' (85 Fed. Reg. 8010 (February 12, 2020)); (B) may update lease stipulations 1 through 3 and 10 described in that final notice of sale to reflect current conditions for lease sales conducted under subsection (a)(1); (C) shall set the royalty rate at not less than 12\1/2\ percent but not greater than 16\2/3\ percent; and (D) shall, for a lease in water depths of 800 meters or deeper issued as a result of a sale, set the primary term for 10 years. (2) Terms and stipulations for alaska region sales.-- (A) In general.--In conducting lease sales under subsection (a)(2), the Secretary of the Interior shall offer the same lease form, lease terms, economic conditions, and stipulations as contained in the final notice of sale of the Bureau of Ocean Energy Management entitled ``Cook Inlet Planning Area Outer Continental Shelf Oil and Gas Lease Sale 244'' (82 Fed. Reg. 23291 (May 22, 2017)). (B) Revenue sharing.--Notwithstanding section 8(g) and section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g), 1338), and beginning in fiscal year 2034, of the bonuses, rents, royalties, and other revenues derived from lease sales conducted under subsection (a)(2)-- (i) 70 percent shall be paid to the State of Alaska; and (ii) 30 percent shall be deposited in the Treasury and credited to miscellaneous receipts. (3) Area offered for lease.-- (A) Gulf of america region.--For each offshore lease sale conducted under subsection (a)(1), the Secretary of the Interior shall-- (i) offer not fewer than 80,000,000 acres; or (ii) if there are fewer than 80,000,000 acres that are unleased and available, offer all unleased and available acres. (B) Alaska region.--For each offshore lease sale conducted under subsection (a)(2), the Secretary of the Interior shall-- (i) offer not fewer than 1,000,000 acres; or (ii) if there are fewer than 1,000,000 acres that are unleased and available, offer all unleased and available acres. (c) Offshore Commingling.--The Secretary of the Interior shall approve a request of an operator to commingle oil or gas production from multiple reservoirs within a single wellbore completed on the outer Continental Shelf in the Gulf of America Region unless the Secretary of the Interior determines that conclusive evidence establishes that the commingling-- (1) could not be conducted by the operator in a safe manner; or (2) would result in an ultimate recovery from the applicable reservoirs to be reduced in comparison to the expected recovery of those reservoirs if they had not been commingled. (d) Offshore Oil and Gas Royalty Rate.-- (1) Repeal.--Section 50261 of Public Law 117-169 (136 Stat. 2056) is repealed, and any provision of law amended or repealed by that section is restored or revived as if that section had not been enacted into law. (2) Royalty rate.--Section 8(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)) (as amended by paragraph (1)) is amended-- (A) in subparagraph (A), by striking ``not less than 12\1/ 2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''; (B) in subparagraph (C), by striking ``not less than 12\1/ 2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''; (C) in subparagraph (F), by striking ``no less than 12\1/2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''; and (D) in subparagraph (H), by striking ``no less than 12 and \1/2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''. (e) Limitations on Amount of Distributed Qualified Outer Continental Shelf Revenues.--Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) is amended-- (1) in subparagraph (B), by striking ``and'' at the end; (2) in subparagraph (C), by striking ``2055.'' and inserting ``2024;''; and (3) by adding at the end the following: ``(D) $650,000,000 for each of fiscal years 2025 through 2034; and ``(E) $500,000,000 for each of fiscal years 2035 through 2055.''. SEC. 50103. ROYALTIES ON EXTRACTED METHANE. Section 50263 of Public Law 117-169 (30 U.S.C. 1727) is repealed. SEC. 50104. ALASKA OIL AND GAS LEASING. (a) Definitions.--In this section: (1) Coastal plain.--The term ``Coastal Plain'' has the meaning given the term in section 20001(a) of Public Law 115- 97 (16 U.S.C. 3143 note). (2) Oil and gas program.--The term ``oil and gas program'' means the oil and gas program established under section 20001(b)(2) of Public Law 115-97 (16 U.S.C. 3143 note). (3) Secretary.--The term ``Secretary'' means the Secretary of the Interior, acting through the Bureau of Land Management. (b) Lease Sales Required.-- (1) In general.--Subject to paragraph (3), in addition to the lease sales required under section 20001(c)(1)(A) of Public Law 115-97 (16 U.S.C. 3143 note), the Secretary shall conduct not fewer than 4 lease sales area-wide under the oil and gas program by not later than 10 years after the date of enactment of this Act. (2) Terms and conditions.--In conducting lease sales under paragraph (1), the Secretary shall offer the same terms and conditions as contained in the record of decision described in the notice of availability of the Bureau of Land Management entitled ``Notice of Availability of the Record of Decision for the Final Environmental Impact Statement for the Coastal Plain Oil and Gas Leasing Program, Alaska'' (85 Fed. Reg. 51754 (August 21, 2020)). (3) Sale acreages; schedule.-- (A) Acreages.--In conducting the lease sales required under paragraph (1), the Secretary shall offer for lease under the oil and gas program-- (i) not fewer than 400,000 acres area-wide in each lease sale; and (ii) those areas that have the highest potential for the discovery of hydrocarbons. (B) Schedule.--The Secretary shall offer-- (i) the initial lease sale under paragraph (1) not later than 1 year after the date of enactment of this Act; (ii) a second lease sale under paragraph (1) not later than 3 years after the date of enactment of this Act; (iii) a third lease sale under paragraph (1) not later than 5 years after the date of enactment of this Act; and (iv) a fourth lease sale under paragraph (1) not later than 7 years after the date of enactment of this Act. (4) Rights-of-way.--Section 20001(c)(2) of Public Law 115- 97 (16 U.S.C. 3143 note) shall apply to leases awarded under this subsection. (5) Surface development.--Section 20001(c)(3) of Public Law 115-97 (16 U.S.C. 3143 note) shall apply to leases awarded under this subsection. (c) Receipts.--Notwithstanding section 35 of the Mineral Leasing Act (30 U.S.C. 191) and section 20001(b)(5) of Public Law 115-97 (16 U.S.C. 3143 note), of the amount of adjusted bonus, rental, and royalty receipts derived from the oil and gas program and operations on the Coastal Plain pursuant to this section-- (1)(A) for each of fiscal years 2025 through 2033, 50 percent shall be paid to the State of Alaska; and (B) for fiscal year 2034 and each fiscal year thereafter, 70 percent shall be paid to the State of Alaska; and (2) the balance shall be deposited into the Treasury as miscellaneous receipts. SEC. 50105. NATIONAL PETROLEUM RESERVE-ALASKA. (a) Definitions.--In this section: (1) NPR-A final environmental impact statement.--The term ``NPR-A final environmental impact statement'' means the final environmental impact statement published by the Bureau of Land Management entitled ``National Petroleum Reserve in Alaska Integrated Activity Plan Final Environmental Impact Statement'' and dated June 2020, including the errata sheet dated October 6, 2020, and excluding the errata sheet dated September 20, 2022. (2) NPR-A record of decision.--The term ``NPR-A record of decision'' means the record of decision published by the Bureau of Land Management entitled ``National Petroleum Reserve in Alaska Integrated Activity Plan Record of Decision'' and dated December 2020. (3) Program.--The term ``Program'' means the competitive oil and gas leasing, exploration, development, and production program established under section 107 of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a). (4) Secretary.--The term ``Secretary'' means the Secretary of the Interior. (b) Restoration of NPR-A Oil and Gas Leasing Program.-- Effective beginning on the date of enactment of this Act-- (1) the Secretary shall expeditiously restore and resume oil and gas lease sales under the Program for domestic energy production and Federal revenue, subject to the requirements of this section; and (2) the final rule of the Bureau of Land Management entitled ``Management and Protection of the National Petroleum Reserve in Alaska'' (89 Fed. Reg. 38712 (May 7, 2024)) shall have no force or effect until January 1, 2035. (c) Resumption of NPR-A Lease Sales.-- (1) In general.--Subject to paragraph (2), the Secretary shall conduct not fewer than 5 lease sales under the Program by not later than 10 years after the date of enactment of this Act. (2) Sales acreages; schedule.-- (A) Acreages.--In conducting the lease sales required under paragraph (1), the Secretary shall offer not fewer than 4,000,000 acres in each lease sale. (B) Schedule.--The Secretary shall offer-- (i) an initial lease sale under paragraph (1) not later than 1 year after the date of enactment of this Act; and (ii) an additional lease sale under paragraph (1) not later than every 2 years after the date of enactment of this Act. (d) Terms and Stipulations for NPR-A Lease Sales.--In conducting lease sales under subsection (c), the Secretary shall [[Page S3803]] offer the same lease form, lease terms, economic conditions, and stipulations as described in the NPR-A final environmental impact statement and the NPR-A record of decision. (e) Receipts.--Section 107(l) of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a(l)) is amended-- (1) by striking ``All receipts from'' and inserting the following: ``(1) In general.--Except as provided in paragraph (2), all receipts from''; and (2) by adding at the end the following: ``(2) Percent share for fiscal year 2034 and thereafter.-- Beginning in fiscal year 2034, of the receipts from sales, rentals, bonuses, and royalties on leases issued pursuant to this section after the date of enactment of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress)-- ``(A) 70 percent shall be paid to the State of Alaska; and ``(B) 30 percent shall be paid into the Treasury of the United States.''. Subtitle B--Mining SEC. 50201. COAL LEASING. (a) Definitions.--In this section: (1) Coal lease.--The term ``coal lease'' means a lease entered into by the United States as lessor, through the Bureau of Land Management, and an applicant on Bureau of Land Management Form 3400-012 (or a successor form that contains the terms of a coal lease). (2) Qualified application.--The term ``qualified application'' means an application for a coal lease pending as of the date of enactment of this Act or submitted within 90 days thereafter under the lease by application program administered by the Bureau of Land Management pursuant to the Mineral Leasing Act (30 U.S.C. 181 et seq.) for which any required environmental review has commenced or the Director of the Bureau of Land Management determines can commence within 90 days after receiving the application. (b) Coal Leasing Activities.--Not later than 90 days after the date of enactment of this Act, the Secretary of the Interior-- (1) shall-- (A) with respect to each qualified application-- (i) if not previously published for public comment, publish any required environmental review; (ii) establish the fair market value of the applicable coal tract; (iii) hold a lease sale with respect to the applicable coal tract; and (iv) identify the highest bidder at or above the fair market value and take all other intermediate actions necessary to identify the winning bidder and grant the qualified application; and (2) may-- (A) with respect to a previously issued coal lease, grant any additional approvals of the Department of the Interior required for mining activities to commence; and (B) after completing the actions required by clauses (i) through (iv) of paragraph (1)(A), grant the qualified application and issue the applicable lease to the person that submitted the qualified application if that person submitted the winning bid in the lease sale held under clause (iii) of paragraph (1)(A). SEC. 50202. COAL ROYALTY. (a) Rate.--Section 7(a) of the Mineral Leasing Act (30 U.S.C. 207(a)) is amended, in the fourth sentence, by striking ``12\1/2\ per centum'' and inserting ``12\1/2\ percent, except such amount shall be not more than 7 percent during the period that begins on the date of enactment of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress) and ends September 30, 2034,''. (b) Applicability to Existing Leases.--The amendment made by subsection (a) shall apply to a coal lease-- (1) issued under section 2 of the Mineral Leasing Act (30 U.S.C. 201) before, on, or after the date of the enactment of this Act; and (2) that has not been terminated. (c) Advance Royalties.--With respect to a lease issued under section 2 of the Mineral Leasing Act (30 U.S.C. 201) for which the lessee has paid advance royalties under section 7(b) of that Act (30 U.S.C. 207(b)), the Secretary of the Interior shall provide to the lessee a credit for the difference between the amount paid by the lessee in advance royalties for the lease before the date of the enactment of this Act and the amount the lessee would have been required to pay if the amendment made by subsection (a) had been made before the lessee paid advance royalties for the lease. SEC. 50203. LEASES FOR KNOWN RECOVERABLE COAL RESOURCES. Notwithstanding section 2(a)(3)(A) of the Mineral Leasing Act (30 U.S.C. 201(a)(3)(A)) and section 202(a) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712(a)), not later than 90 days after the date of enactment of this Act, the Secretary of the Interior shall make available for lease known recoverable coal resources of not less than 4,000,000 additional acres on Federal land located in the 48 contiguous States and Alaska subject to the jurisdiction of the Secretary, but which shall not include any Federal land within-- (1) a National Monument; (2) a National Recreation Area; (3) a component of the National Wilderness Preservation System; (4) a component of the National Wild and Scenic Rivers System; (5) a component of the National Trails System; (6) a National Conservation Area; (7) a unit of the National Wildlife Refuge System; (8) a unit of the National Fish Hatchery System; or (9) a unit of the National Park System. SEC. 50204. AUTHORIZATION TO MINE FEDERAL COAL. (a) Authorization.--In order to provide access to coal reserves in adjacent State or private land that without an authorization could not be mined economically, Federal coal reserves located in Federal land subject to a mining plan previously approved by the Secretary of the Interior as of the date of enactment of this Act and adjacent to coal reserves in adjacent State or private land are authorized to be mined. (b) Requirement.--Not later than 90 days after the date of enactment of this Act, the Secretary of the Interior shall, without substantial modification, take such steps as are necessary to authorize the mining of Federal land described in subsection (a). (c) NEPA.--Nothing in this section shall prevent a review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Subtitle C--Lands SEC. 50301. MANDATORY DISPOSAL OF BUREAU OF LAND MANAGEMENT LAND FOR HOUSING. (a) Definitions.--In this section: (1) Bureau of land management land.--The term ``Bureau of Land Management land'' has the meaning given the term ``public lands'' in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702). (2) Covered federal land.--The term ``covered Federal land'' means Bureau of Land Management land selected for disposal under this section. (3) Eligible state.--The term ``eligible State'' means any of the States of-- (A) Alaska; (B) Arizona; (C) California; (D) Colorado; (E) Idaho; (F) Nevada; (G) New Mexico; (H) Oregon; (I) Utah; (J) Washington; or (K) Wyoming. (4) Federally protected land.--The term ``federally protected land'' means-- (A) a National Monument; (B) a National Recreation Area; (C) a component of the National Wilderness Preservation System; (D) a component of the National Wild and Scenic Rivers System; (E) a component of the National Trails System; (F) a National Conservation Area; (G) a unit of the National Wildlife Refuge System; (H) a unit of the National Fish Hatchery System; or (I) a unit of the National Park System. (5) Population center.--The term ``population center'' means a census-designated place or incorporated municipality with a population of not less than 1,000 persons, as determined by the most recent census or official census estimate by the Census Bureau. (6) Secretary.--The term ``Secretary'' means the Secretary of the Interior (acting through the Director of the Bureau of Land Management). (7) Tract.--The term ``tract'' means a contiguous parcel of not more than 1 square mile. (b) Requirement.--Subject to valid existing rights and the requirements of this section, as soon as practicable after the date of enactment of this Act, the Secretary shall select for disposal not less than 0.25 percent and not more than 0.50 percent of Bureau of Land Management land, and shall, subject to subsection (f)(2), dispose of all right, title, and interest of the United States in and to those tracts selected for disposal under this section. (c) Selection Process; Priority for Disposal.-- (1) In general.--Notwithstanding section 202(a) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712(a)), not later than 60 days after the date of enactment of this Act and every 60 days thereafter, the Secretary shall publish a list of tracts of Bureau of Land Management land identified by the Secretary for disposal by the Secretary or nominated for disposal under paragraph (2) that have been selected by the Secretary for disposal under this section. (2) Nominations from qualified bidders.-- (A) In general.--Not later than 30 days after the date of enactment of this Act, the Secretary shall publish a notice soliciting nominations of tracts of Bureau of Land Management land for disposal by the Secretary under this section from qualified bidders, including States and units of local government. (B) Consultation.--Before selecting for disposal under this section any tract of Bureau of Land Management land nominated for disposal under subparagraph (A), the Secretary shall consult with-- (i) the Governor of the State in which the nominated tract is located regarding the [[Page S3804]] suitability of the area for residential development; (ii) each applicable unit of local government; and (iii) each applicable Indian Tribe. (C) Requirements.--A nomination of a tract of Bureau of Land Management land for disposal submitted by a qualified bidder under subparagraph (A) shall include a description of-- (i) the planned use of the tract of Bureau of Land Management land; and (ii) the extent to which the development of the tract of Bureau of Land Management land would address local housing needs (including housing supply and affordability) or any infrastructure and amenities to support local needs associated with housing. (3) Priority for disposal.--In selecting tracts of Bureau of Land Management land for disposal under this section, the Secretary shall prioritize the disposal of tracts of Bureau of Land Management land that, as determined by the Secretary-- (A) have the highest value; (B) are nominated by States or units of local governments; (C) are adjacent to existing developed areas; (D) have access to existing infrastructure; (E) are suitable for residential housing; (F) reduce checkerboard land patterns; or (G) are isolated tracts that are inefficient to manage. (d) Method of Disposal.--The Secretary shall dispose of tracts of covered Federal land under this section to a qualified bidder by competitive sale, auction, or other methods designed to secure not less than fair market value for the tracts of covered Federal land conveyed. (e) Right of First Refusal.--The Secretary shall provide a State or unit of local government in which a tract of covered Federal land is located a right of first refusal to purchase the applicable tract of covered Federal land. (f) Limitations.-- (1) Use.--A tract of covered Federal land disposed of under this section shall be used solely for the development of housing or to address any infrastructure and amenities to support local needs associated with housing. (2) Restrictive covenant.--As a condition of the conveyance of a tract of covered Federal land under this section, the conveyance shall include a restrictive covenant requiring that the tract of covered Federal land conveyed be used in accordance with the planned use of the tract of covered Federal land-- (A) as described pursuant to paragraph (2)(C)(i) of subsection (c), in the case of a tract of covered Federal land nominated under that paragraph; or (B) as identified by the Secretary, in the case of a tract of covered Federal land initially identified for disposal by the Secretary. (3) Excluded land.--The Secretary may not dispose of any tract of covered Federal land that is-- (A) federally protected land; (B) as of the date of the nomination or identification of the tract of covered Federal land, subject to-- (i) an existing grazing permit or lease; or (ii) a valid existing right that is incompatible with the development of housing or any infrastructure and amenities to support local needs associated with housing; (C) not located in an eligible State; or (D) not located within 5 miles of-- (i) the border of an incorporated municipality; or (ii) the center of the population center of a census- designated place. (4) Number of tracts.--A person may not purchase more than 2 tracts of covered Federal land in any 1 sale under this section unless the person owns land surrounding the tracts of covered Federal land to be sold under this section. (g) Disposition of Proceeds.-- (1) In general.--Subject to paragraphs (2) and (3) and any provision of an applicable State enabling Act, any proceeds from the disposal of a tract of covered Federal land under this section shall be deposited in the general fund of the Treasury. (2) Revenue sharing with unit of local government.-- (A) Distribution.--Notwithstanding paragraph (1), 5 percent of the gross proceeds from each sale of a tract of covered Federal land under this section (other than a sale to a unit of local government) shall be distributed to-- (i) the unit of local government with sole jurisdiction over the tract sold; or (ii) in a case in which more than 1 unit of local government has jurisdiction over the tract sold, the unit of local government that the Secretary determines exercises primary land use authority over the tract sold, as of the date of the sale. (B) Use.--Amounts distributed to a unit of local government under subparagraph (A) shall be used by the unit of local government solely for essential infrastructure directly supporting housing development or other associated infrastructure to support local housing needs, as determined by the Secretary. (3) Hunting, fishing, and recreational amenities; deferred maintenance backlog.--Notwithstanding paragraph (1), 10 percent of the gross proceeds from each sale of a tract of covered Federal land under this section shall be used by the Secretary-- (A) for hunting, fishing, and recreational amenities on Bureau of Land Management land in the State in which the tract sold is located; and (B) to address the deferred maintenance backlog on Bureau of Land Management land in the State in which the tract sold is located. (h) Deadline.--Not later than 10 years after the date of enactment of this Act, the Secretary shall complete all conveyances of tracts of covered Federal land required under this section. (i) Funding.--In addition to amounts otherwise made available, out of any funds in the Treasury not otherwise appropriated, there is appropriated to the Secretary to carry out this section $15,000,000 for fiscal year 2025, to remain available until expended. (j) Termination of Authority.--The authority to carry out this section terminates on September 30, 2034. SEC. 50302. TIMBER SALES AND LONG-TERM CONTRACTING FOR THE FOREST SERVICE AND THE BUREAU OF LAND MANAGEMENT. (a) Forest Service.-- (1) Definitions.--In this subsection: (A) Forest plan.--The term ``forest plan'' means a land and resource management plan prepared by the Secretary for a unit of the National Forest System pursuant to section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604). (B) National forest system.-- (i) In general.--The term ``National Forest System'' means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary. (ii) Exclusions.--The term ``National Forest System'' does not include any forest reserve not created from the public domain. (C) Secretary.--The term ``Secretary'' means the Secretary of Agriculture, acting through the Chief of the Forest Service. (2) Timber sales on public domain forest reserves.-- (A) In general.--For each of fiscal years 2026 through 2034, the Secretary shall sell timber annually on National Forest System land in a total quantity that is not less than 250,000,000 board-feet greater than the quantity of board- feet sold in the previous fiscal year. (B) Limitation.--The timber sales under subparagraph (A) shall be subject to the maximum allowable sale quantity of timber or the projected timber sale quantity under the applicable forest plan in effect on the date of enactment of this Act. (3) Long-term contracting for the forest service.-- (A) Long-term contracting.--For the period of fiscal years 2025 through 2034, the Secretary shall enter into not fewer than 40 long-term timber sale contracts with private persons or other public or private entities under subsection (a) of section 14 of the National Forest Management Act of 1976 (16 U.S.C. 472a) for the sale of national forest materials (as defined in subsection (e)(1) of that section) in the National Forest System. (B) Contract length.--The period of a timber sale contract entered into to meet the requirement under subparagraph (A) shall be not less than 20 years, with options for extensions or renewals, as determined by the Secretary. (C) Receipts.--Any monies derived from a timber sale contract entered into to meet the requirements under subparagraphs (A) and (B) shall be deposited in the general fund of the Treasury. (b) Bureau of Land Management.-- (1) Definitions.--In this subsection: (A) Public lands.--The term ``public lands'' has the meaning given the term in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702). (B) Resource management plan.--The term ``resource management plan'' means a land use plan prepared for public lands under section 202 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712). (C) Secretary.--The term ``Secretary'' means the Secretary of the Interior, acting through the Director of the Bureau of Land Management. (2) Timber sales on public lands.-- (A) In general.--For each of fiscal years 2026 through 2034, the Secretary shall sell timber annually on public lands in a total quantity that is not less than 20,000,000 board-feet greater than the quantity of board-feet sold in the previous fiscal year. (B) Limitation.--The timber sales under subparagraph (A) shall be subject to the applicable resource management plan in effect on the date of enactment of this Act. (3) Long-term contracting for the bureau of land management.-- (A) Long-term contracting.--For the period of fiscal years 2025 through 2034, the Secretary shall enter into not fewer than 5 long-term contracts with private persons or other public or private entities under section 1 of the Act of July 31, 1947 (commonly known as the ``Materials Act of 1947'') (61 Stat. 681, chapter 406; 30 U.S.C. 601), for the disposal of vegetative materials described in that section on public lands. (B) Contract length.--The period of a contract entered into to meet the requirement under subparagraph (A) shall be not less than 20 years, with options for extensions or renewals, as determined by the Secretary. (C) Receipts.--Any monies derived from a contract entered into to meet the requirements under subparagraphs (A) and (B) shall [[Page S3805]] be deposited in the general fund of the Treasury. SEC. 50303. RENEWABLE ENERGY FEES ON FEDERAL LAND. (a) Definitions.--In this section: (1) Annual adjustment factor.--The term ``Annual Adjustment Factor'' means 3 percent. (2) Encumbrance factor.--The term ``Encumbrance Factor'' means-- (A) 100 percent for a solar energy generation facility; and (B) an amount determined by the Secretary, but not less than 10 percent for a wind energy generation facility. (3) National forest system.-- (A) In general.--The term ``National Forest System'' means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary of Agriculture. (B) Exclusion.--The term ``National Forest System'' does not include any forest reserve not created from the public domain. (4) Per-acre rate.--The term ``Per-Acre Rate'', with respect to a right-of-way, means the average of the per-acre pastureland rental rates published in the Cash Rents Survey by the National Agricultural Statistics Service for the State in which the right-of-way is located over the 5 calendar-year period preceding the issuance or renewal of the right-of-way. (5) Project.--The term ``project'' means a system described in section 2801.9(a)(4) of title 43, Code of Federal Regulations (as in effect on the date of enactment of this Act). (6) Public land.--The term ``public land'' means-- (A) public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)); and (B) National Forest System land. (7) Renewable energy project.--The term ``renewable energy project'' means a project located on public land that uses wind or solar energy to generate energy. (8) Right-of-way.--The term ``right-of-way'' has the meaning given the term in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702). (9) Secretary.--The term ``Secretary'' means-- (A) the Secretary of the Interior, with respect to land controlled or administered by the Secretary of the Interior; and (B) the Secretary of Agriculture, with respect to National Forest System land. (b) Acreage Rent for Wind and Solar Rights-of-way.-- (1) In general.--Pursuant to section 504(g) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1764(g)), the Secretary shall, subject to paragraph (3) and not later than January 1 of each calendar year, collect from the holder of a right-of-way for a renewable energy project an acreage rent in an amount determined by the equation described in paragraph (2). (2) Calculation of acreage rent rate.-- (A) Equation.--The amount of an acreage rent collected under paragraph (1) shall be determined using the following equation: Acreage rent = A B ((1 + C)\D\K)). (B) Definitions.--For purposes of the equation described in subparagraph (A): (i) The letter ``A'' means the Per-Acre Rate. (ii) The letter ``B'' means the Encumbrance Factor. (iii) The letter ``C'' means the Annual Adjustment Factor. (iv) The letter ``D'' means the year in the term of the right-of-way. (3) Payment until production.--The holder of a right-of-way for a renewable energy project shall pay an acreage rent collected under paragraph (1) until the date on which energy generation begins. (c) Capacity Fees.-- (1) In general.--The Secretary shall, subject to paragraph (3), annually collect a capacity fee from the holder of a right-of-way for a renewable energy project based on the amount described in paragraph (2). (2) Calculation of capacity fee.--The amount of a capacity fee collected under paragraph (1) shall be equal to the greater of-- (A) an amount equal to the acreage rent described in subsection (b); and (B) 3.9 percent of the gross proceeds from the sale of electricity produced by the renewable energy project. (3) Multiple-use reduction factor.-- (A) Application.--The holder of a right-of-way for a wind energy generation project may request that the Secretary apply a multiple-use reduction factor of 10-percent to the amount of a capacity fee determined under paragraph (2) by submitting to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (B) Approval.--The Secretary may approve an application submitted under subparagraph (A) only if not less than 25 percent of the land within the area of the right-of-way is authorized for use, occupancy, or development with respect to an activity other than the generation of wind energy for the entirety of the year in which the capacity fee is collected. (C) Late determination.-- (i) In general.--If the Secretary approves an application under subparagraph (B) for a wind energy generation project after the date on which the holder of the right-of-way for the project begins paying a capacity fee, the Secretary shall apply the multiple-use reduction factor described in subparagraph (A) to the capacity fee for the first year beginning after the date of approval and each year thereafter for the period during which the right-of-way remains in effect. (ii) Refund.--The Secretary may not refund the holder of a right-of-way for the difference in the amount of a capacity fee paid in a previous year. (d) Late Payment Fee; Termination.-- (1) In general.--The Secretary may charge the holder of a right-of-way for a renewable energy project a late payment fee if the Secretary does not receive payment for the acreage rent under subsection (b) or the capacity fee under subsection (c) by the date that is 15 days after the date on which the payment was due. (2) Termination of right-of-way.--The Secretary may terminate a right-of-way for a renewable energy project if the Secretary does not receive payment for the acreage rent under subsection (b) or the capacity fee under subsection (c) by the date that is 90 days after the date on which the payment was due. SEC. 50304. RENEWABLE ENERGY REVENUE SHARING. (a) Definitions.--In this section: (1) County.--The term ``county'' includes a parish, township, borough, and any other similar, independent unit of local government. (2) Covered land.--The term ``covered land'' means land that is-- (A) public land administered by the Secretary; and (B) not excluded from the development of solar or wind energy under-- (i) a land use plan; or (ii) other Federal law. (3) National forest system.-- (A) In general.--The term ``National Forest System'' means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary of Agriculture. (B) Exclusion.--The term ``National Forest System'' does not include any forest reserve not created from the public domain. (4) Public land.--The term ``public land'' means-- (A) public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)); and (B) National Forest System land. (5) Renewable energy project.--The term ``renewable energy project'' means a system described in section 2801.9(a)(4) of title 43, Code of Federal Regulations (as in effect on the date of enactment of this Act), located on covered land that uses wind or solar energy to generate energy. (6) Secretary.--The term ``Secretary'' means-- (A) the Secretary of the Interior, with respect to land controlled or administered by the Secretary of the Interior; and (B) the Secretary of Agriculture, with respect to National Forest System land. (b) Disposition of Revenue.-- (1) Disposition of revenues.--Beginning on January 1, 2026, the amounts collected from a renewable energy project as bonus bids, rentals, fees, or other payments under a right- of-way, permit, lease, or other authorization shall-- (A) be deposited in the general fund of the Treasury; and (B) without further appropriation or fiscal year limitation, be allocated as follows: (i) 25 percent shall be paid from amounts in the general fund of the Treasury to the State within the boundaries of which the revenue is derived. (ii) 25 percent shall be paid from amounts in the general fund of the Treasury to each county in a State within the boundaries of which the revenue is derived, to be allocated among each applicable county based on the percentage of county land from which the revenue is derived. (2) Payments to states and counties.-- (A) In general.--Amounts paid to States and counties under paragraph (1) shall be used in accordance with the requirements of section 35 of the Mineral Leasing Act (30 U.S.C. 191). (B) Payments in lieu of taxes.--A payment to a county under paragraph (1) shall be in addition to a payment in lieu of taxes received by the county under chapter 69 of title 31, United States Code. (C) Timing.--The amounts required to be paid under paragraph (1)(B) for an applicable fiscal year shall be made available in the fiscal year that immediately follows the fiscal year for which the amounts were collected. SEC. 50305. RESCISSION OF NATIONAL PARK SERVICE AND BUREAU OF LAND MANAGEMENT FUNDS. There are rescinded the unobligated balances of amounts made available by the following sections of Public Law 117- 169 (commonly known as the ``Inflation Reduction Act of 2022'') (136 Stat. 1818): (1) Section 50221 (136 Stat. 2052). (2) Section 50222 (136 Stat. 2052). (3) Section 50223 (136 Stat. 2052). SEC. 50306. CELEBRATING AMERICA'S 250TH ANNIVERSARY. In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior (acting through the Director of the National Park Service) for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $150,000,000 for events, celebrations, and activities surrounding the observance and commemoration of the 250th anniversary of the founding of the United States, to remain available through fiscal year 2028. [[Page S3806]] Subtitle D--Energy SEC. 50401. STRATEGIC PETROLEUM RESERVE. (a) Energy Policy and Conservation Act Definitions.--In this section, the terms ``related facility'', ``storage facility'', and ``Strategic Petroleum Reserve'' have the meanings given those terms in section 152 of the Energy Policy and Conservation Act (42 U.S.C. 6232). (b) Appropriations.--In addition to amounts otherwise available, there is appropriated to the Department of Energy for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $218,000,000 for maintenance of, including repairs to, storage facilities and related facilities of the Strategic Petroleum Reserve; and (2) $171,000,000 to acquire, by purchase, petroleum products for storage in the Strategic Petroleum Reserve. (c) Repeal of Strategic Petroleum Reserve Drawdown and Sale Mandate.--Section 20003 of Public Law 115-97 (42 U.S.C. 6241 note) is repealed. SEC. 50402. REPEALS; RESCISSIONS. (a) Repeal and Rescission.--Section 50142 of Public Law 117-169 (136 Stat. 2044) (commonly known as the ``Inflation Reduction Act of 2022'') is repealed and the unobligated balance of amounts made available under that section (as in effect on the day before the date of enactment of this Act) is rescinded. (b) Rescissions.-- (1) In general.--The unobligated balances of amounts made available under the sections described in paragraph (2) are rescinded. (2) Sections described.--The sections referred to in paragraph (1) are the following sections of Public Law 117- 169 (commonly known as the ``Inflation Reduction Act of 2022''): (A) Section 50123 (42 U.S.C. 18795b). (B) Section 50141 (136 Stat. 2042). (C) Section 50144 (136 Stat. 2044). (D) Section 50145 (136 Stat. 2045). (E) Section 50151 (42 U.S.C. 18715). (F) Section 50152 (42 U.S.C. 18715a). (G) Section 50153 (42 U.S.C. 18715b). (H) Section 50161 (42 U.S.C. 17113b). SEC. 50403. ENERGY DOMINANCE FINANCING. (a) In General.--Section 1706 of the Energy Policy Act of 2005 (42 U.S.C. 16517) is amended-- (1) in subsection (a)-- (A) in paragraph (1), by striking ``or'' at the end; (B) in paragraph (2), by striking ``avoid'' and all that follows through the period at the end and inserting ``increase capacity or output; or''; and (C) by adding at the end the following: ``(3) 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.''; (2) by striking subsection (c); (3) by redesignating subsections (d) through (f) as subsections (c) through (e), respectively; (4) in subsection (c) (as so redesignated)-- (A) in paragraph (1), by adding ``and'' at the end; (B) by striking paragraph (2); and (C) by redesignating paragraph (3) as paragraph (2); (5) in subsection (e) (as so redesignated), by striking ``for--'' in the matter preceding paragraph (1) and all that follows through the period at the end of paragraph (2) and inserting ``for enabling the identification, leasing, development, production, processing, transportation, transmission, refining, and generation needed for energy and critical minerals.''; and (6) by adding at the end the following: ``(f) Funding.-- ``(1) In general.--In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available through September 30, 2028, to carry out activities under this section. ``(2) Administrative costs.--Of the amount made available under paragraph (1), the Secretary shall use not more than 3 percent for administrative expenses.''. (b) Commitment Authority.--Section 50144(b) of Public Law 117-169 (commonly known as the ``Inflation Reduction Act of 2022'') (136 Stat. 2045) is amended by striking ``2026'' and inserting ``2028''. SEC. 50404. TRANSFORMATIONAL ARTIFICIAL INTELLIGENCE MODELS. (a) Definitions.--In this section: (1) American science cloud.--The term ``American science cloud'' means a system of United States government, academic, and private sector programs and infrastructures utilizing cloud computing technologies to facilitate and support scientific research, data sharing, and computational analysis across various disciplines while ensuring compliance with applicable legal, regulatory, and privacy standards. (2) Artificial intelligence.--The term ``artificial intelligence'' has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401). (b) Transformational Models.--The Secretary of Energy shall-- (1) mobilize National Laboratories to partner with industry sectors within the United States to curate the scientific data of the Department of Energy across the National Laboratory complex so that the data is structured, cleaned, and preprocessed in a way that makes it suitable for use in artificial intelligence and machine learning models; and (2) initiate seed efforts for self-improving artificial intelligence models for science and engineering powered by the data described in paragraph (1). (c) Uses.-- (1) Microelectronics.--The curated data described in subsection (b)(1) may be used to rapidly develop next- generation microelectronics that have greater capabilities beyond Moore's law while requiring lower energy consumption. (2) New energy technologies.--The artificial intelligence models developed under subsection (b)(2) shall be provided to the scientific community through the American science cloud to accelerate innovation in discovery science and engineering for new energy technologies. (d) Appropriations.--There is appropriated, out of any funds in the Treasury not otherwise appropriated, $150,000,000, to remain available through September 30, 2026, to carry out this section. Subtitle E--Water SEC. 50501. WATER CONVEYANCE AND SURFACE WATER STORAGE ENHANCEMENT. In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior, acting through the Commissioner of Reclamation, for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $1,000,000,000, to remain available through September 30, 2034, for construction and associated activities that restore or increase the capacity or use of existing conveyance facilities constructed by the Bureau of Reclamation or for construction and associated activities that increase the capacity of existing Bureau of Reclamation surface water storage facilities, in a manner as determined by the Secretary of the Interior, acting through the Commissioner of Reclamation: Provided, That, for the purposes of section 203 of the Reclamation Reform Act of 1982 (43 U.S.C. 390cc) or section 3404(a) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575; 106 Stat. 4708), a contract or agreement entered into pursuant to this section shall not be treated as a new or amended contract: Provided further, That none of the funds provided under this section shall be reimbursable or subject to matching or cost-sharing requirements. TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS SEC. 60001. RESCISSION OF FUNDING FOR CLEAN HEAVY-DUTY VEHICLES. The unobligated balances of amounts made available to carry out section 132 of the Clean Air Act (42 U.S.C. 7432) are rescinded. SEC. 60002. REPEAL OF GREENHOUSE GAS REDUCTION FUND. Section 134 of the Clean Air Act (42 U.S.C. 7434) is repealed and the unobligated balances of amounts made available to carry out that section (as in effect on the day before the date of enactment of this Act) are rescinded. SEC. 60003. RESCISSION OF FUNDING FOR DIESEL EMISSIONS REDUCTIONS. The unobligated balances of amounts made available to carry out section 60104 of Public Law 117-169 (136 Stat. 2067) are rescinded. SEC. 60004. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION. The unobligated balances of amounts made available to carry out section 60105 of Public Law 117-169 (136 Stat. 2067) are rescinded. SEC. 60005. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION AT SCHOOLS. The unobligated balances of amounts made available to carry out section 60106 of Public Law 117-169 (136 Stat. 2069) are rescinded. SEC. 60006. RESCISSION OF FUNDING FOR THE LOW EMISSIONS ELECTRICITY PROGRAM. The unobligated balances of amounts made available to carry out section 135 of the Clean Air Act (42 U.S.C. 7435) are rescinded. SEC. 60007. RESCISSION OF FUNDING FOR SECTION 211(O) OF THE CLEAN AIR ACT. The unobligated balances of amounts made available to carry out section 60108 of Public Law 117-169 (136 Stat. 2070) are rescinded. SEC. 60008. RESCISSION OF FUNDING FOR IMPLEMENTATION OF THE AMERICAN INNOVATION AND MANUFACTURING ACT. The unobligated balances of amounts made available to carry out section 60109 of Public Law 117-169 (136 Stat. 2071) are rescinded. SEC. 60009. RESCISSION OF FUNDING FOR ENFORCEMENT TECHNOLOGY AND PUBLIC INFORMATION. The unobligated balances of amounts made available to carry out section 60110 of Public Law 117-169 (136 Stat. 2071) are rescinded. SEC. 60010. RESCISSION OF FUNDING FOR GREENHOUSE GAS CORPORATE REPORTING. The unobligated balances of amounts made available to carry out section 60111 of Public Law 117-169 (136 Stat. 2072) are rescinded. SEC. 60011. RESCISSION OF FUNDING FOR ENVIRONMENTAL PRODUCT DECLARATION ASSISTANCE. The unobligated balances of amounts made available to carry out section 60112 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat. 2072) are rescinded. [[Page S3807]] SEC. 60012. RESCISSION OF FUNDING FOR METHANE EMISSIONS AND WASTE REDUCTION INCENTIVE PROGRAM FOR PETROLEUM AND NATURAL GAS SYSTEMS. (a) Rescission.--The unobligated balances of amounts made available to carry out subsections (a) and (b) of section 136 of the Clean Air Act (42 U.S.C. 7436) are rescinded. (b) Period.--Section 136(g) of the Clean Air Act (42 U.S.C. 7436(g)) is amended by striking ``calendar year 2024'' and inserting ``calendar year 2034''. SEC. 60013. RESCISSION OF FUNDING FOR GREENHOUSE GAS AIR POLLUTION PLANS AND IMPLEMENTATION GRANTS. The unobligated balances of amounts made available to carry out section 137 of the Clean Air Act (42 U.S.C. 7437) are rescinded. SEC. 60014. RESCISSION OF FUNDING FOR ENVIRONMENTAL PROTECTION AGENCY EFFICIENT, ACCURATE, AND TIMELY REVIEWS. The unobligated balances of amounts made available to carry out section 60115 of Public Law 117-169 (136 Stat. 2077) are rescinded. SEC. 60015. RESCISSION OF FUNDING FOR LOW-EMBODIED CARBON LABELING FOR CONSTRUCTION MATERIALS. The unobligated balances of amounts made available to carry out section 60116 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat. 2077) are rescinded. SEC. 60016. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS. The unobligated balances of amounts made available to carry out section 138 of the Clean Air Act (42 U.S.C. 7438) are rescinded. SEC. 60017. RESCISSION OF FUNDING FOR ESA RECOVERY PLANS. The unobligated balances of amounts made available to carry out section 60301 of Public Law 117-169 (136 Stat. 2079) are rescinded. SEC. 60018. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE DATA COLLECTION. The unobligated balances of amounts made available to carry out section 60401 of Public Law 117-169 (136 Stat. 2079) are rescinded. SEC. 60019. RESCISSION OF NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM. The unobligated balances of amounts made available to carry out section 177 of title 23, United States Code, are rescinded. SEC. 60020. RESCISSION OF FUNDING FOR FEDERAL BUILDING ASSISTANCE. The unobligated balances of amounts made available to carry out section 60502 of Public Law 117-169 (136 Stat. 2083) are rescinded. SEC. 60021. RESCISSION OF FUNDING FOR LOW-CARBON MATERIALS FOR FEDERAL BUILDINGS. The unobligated balances of amounts made available to carry out section 60503 of Public Law 117-169 (136 Stat. 2083) are rescinded. SEC. 60022. RESCISSION OF FUNDING FOR GSA EMERGING AND SUSTAINABLE TECHNOLOGIES. The unobligated balances of amounts made available to carry out section 60504 of Public Law 117-169 (136 Stat. 2083) are rescinded. SEC. 60023. RESCISSION OF ENVIRONMENTAL REVIEW IMPLEMENTATION FUNDS. The unobligated balances of amounts made available to carry out section 178 of title 23, United States Code, are rescinded. SEC. 60024. RESCISSION OF LOW-CARBON TRANSPORTATION MATERIALS GRANTS. The unobligated balances of amounts made available to carry out section 179 of title 23, United States Code, are rescinded. SEC. 60025. JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS. (a) In General.--In addition to amounts otherwise available, there is appropriated for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $256,657,000, to remain available until September 30, 2029, for necessary expenses for capital repair, restoration, maintenance backlog, and security structures of the building and site of the John F. Kennedy Center for the Performing Arts. (b) Administrative Costs.--Of the amounts made available under subsection (a), not more than 3 percent may be used for administrative costs necessary to carry out this section. SEC. 60026. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS. Title I of the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) is amended by adding at the end the following: ``SEC. 112. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS. ``(a) Process.-- ``(1) Project sponsor.--A project sponsor that intends to pay a fee under this section for the preparation, or supervision of the preparation, of an environmental assessment or environmental impact statement for a project shall submit to the Council-- ``(A) a description of the project; and ``(B) a declaration of whether the project sponsor intends to prepare the environmental assessment or environmental impact statement under section 107(f). ``(2) Council on environmental quality.--Not later than 15 days after the date on which the Council receives information described in paragraph (1) from a project sponsor, the Council shall provide to the project sponsor notice of the amount of the fee to be paid under this section, as determined under subsection (b). ``(3) Payment of fee.--A project sponsor may pay a fee under this section after receipt of the notice described in paragraph (2). ``(4) Deadline for environmental reviews for which a fee is paid.--Notwithstanding section 107(g)(1)-- ``(A) an environmental assessment for which a fee is paid under this section shall be completed not later than 180 days after the date on which the fee is paid; and ``(B) an environmental impact statement for which a fee is paid under this section shall be completed not later than 1 year after the date of publication of the notice of intent to prepare the environmental impact statement. ``(b) Fee Amount.--The amount of a fee under this section shall be-- ``(1) 125 percent of the anticipated costs to prepare the environmental assessment or environmental impact statement; and ``(2) in the case of an environmental assessment or environmental impact statement to be prepared in whole or in part by a project sponsor under section 107(f), 125 percent of the anticipated costs to supervise preparation of, and, as applicable, prepare, the environmental assessment or environmental impact statement.''. TITLE VII--FINANCE Subtitle A--Tax SEC. 70001. REFERENCES TO THE INTERNAL REVENUE CODE OF 1986, ETC. (a) References.--Except as otherwise expressly provided, whenever in this title, an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (b) Certain Rules Regarding Effect of Rate Changes Not Applicable.--Section 15 of the Internal Revenue Code of 1986 shall not apply to any change in rate of tax by reason of any provision of, or amendment made by, this title. CHAPTER 1--PROVIDING PERMANENT TAX RELIEF FOR MIDDLE-CLASS FAMILIES AND WORKERS SEC. 70101. EXTENSION AND ENHANCEMENT OF REDUCED RATES. (a) In General.--Section 1(j) is amended-- (1) in paragraph (1), by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Inflation Adjustment.--Section 1(j)(3)(B)(i) is amended by inserting ``solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins,'' before ``subsection (f)(3)''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70102. EXTENSION AND ENHANCEMENT OF INCREASED STANDARD DEDUCTION. (a) In General.--Section 63(c)(7) is amended-- (1) by striking ``, and before January 1, 2026'' in the matter preceding subparagraph (A), and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Additional Increase in Standard Deduction.--Paragraph (7) of section 63(c) is amended-- (1) by striking ``$18,000'' both places it appears in subparagraphs (A)(i) and (B)(ii) and inserting ``$23,625'', (2) by striking ``$12,000'' both places it appears in subparagraphs (A)(ii) and (B)(ii) and inserting ``$15,750'', (3) by striking ``2018'' in subparagraph (B)(ii) and inserting ``2025'', and (4) by striking ``2017'' in subparagraph (B)(ii)(II) and inserting ``2024''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70103. TERMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS OTHER THAN TEMPORARY SENIOR DEDUCTION. (a) In General.--Section 151(d)(5) is amended-- (1) by striking ``2018 through 2025'' in the heading and inserting ``beginning after 2017'', (2) by striking ``, and before January 1, 2026'', and (3) by adding at the end the following new subparagraph: ``(C) Deduction for seniors.-- ``(i) In general.--In the case of a taxable year beginning before January 1, 2029, there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual with respect to the taxpayer. ``(ii) Qualified individual.--For purposes of clause (i), the term `qualified individual' means-- ``(I) the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and ``(II) in the case of a joint return, the taxpayer's spouse, if such spouse has attained age 65 before the close of the taxable year. ``(iii) Limitation based on modified adjusted gross income.-- ``(I) In general.--In the case of any taxpayer for any taxable year, the $6,000 amount in clause (i) shall be reduced (but not below zero) by 6 percent of so much of the taxpayer's modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). ``(II) Modified adjusted gross income.--For purposes of this clause, the term `modified adjusted gross income' means the adjusted gross income of the taxpayer for the [[Page S3808]] taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(iv) Social security number required.-- ``(I) In general.--Clause (i) shall not apply with respect to a qualified individual unless the taxpayer includes such qualified individual's social security number on the return of tax for the taxable year. ``(II) Social security number.--For purposes of subclause (I), the term `social security number' has the meaning given such term in section 24(h)(7). ``(v) Married individuals.--If the taxpayer is a married individual (within the meaning of section 7703), this subparagraph shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year.''. (b) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2) is amended by striking ``and'' at the end of subparagraph (U), by striking the period at the end of subparagraph (V) and inserting ``, and'', and by inserting after subparagraph (V) the following new subparagraph: ``(W) an omission of a correct social security number required under section 151(d)(5)(C) (relating to deduction for seniors).''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70104. EXTENSION AND ENHANCEMENT OF INCREASED CHILD TAX CREDIT. (a) Extension and Increase of Expanded Child Tax Credit.-- Section 24(h) is amended-- (1) in paragraph (1), by striking ``, and before January 1, 2026'', (2) in paragraph (2), by striking ``$2,000'' and inserting ``$2,200'', and (3) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Social Security Number Required.--Section 24(h)(7) is amended to read as follows: ``(7) Social security number required.-- ``(A) In general.--No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes on the return of tax for the taxable year-- ``(i) the taxpayer's social security number (or, in the case of a joint return, the social security number of at least 1 spouse), and ``(ii) the social security number of such qualifying child. ``(B) Social security number.--For purposes of this paragraph, the term `social security number' means a social security number issued to an individual by the Social Security Administration, but only if the social security number is issued-- ``(i) to a citizen of the United States or pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act, and ``(ii) before the due date for such return.''. (c) Inflation Adjustments.-- (1) In general.--Section 24(i) is amended to read as follows: ``(i) Inflation Adjustments.-- ``(1) Maximum amount of refundable credit.--In the case of a taxable year beginning after 2024, the $1,400 amount in subsection (h)(5) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `2017' for `2016' in subparagraph (A)(ii) thereof. ``(2) Special rule for adjustment of credit amount.--In the case of a taxable year beginning after 2025, the $2,200 amount in subsection (h)(2) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `2024' for `2016' in subparagraph (A)(ii) thereof. ``(3) Rounding.--If any increase under this subsection is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.''. (d) Conforming Amendment.--Section 24(h)(5) is amended to read as follows: ``(5) Maximum amount of refundable credit.--The amount determined under subsection (d)(1)(A) with respect to any qualifying child shall not exceed $1,400, and such subsection shall be applied without regard to paragraph (4) of this subsection.''. (e) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2)(I) is amended by striking ``section 24(e)'' and inserting ``section 24''. (f) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70105. EXTENSION AND ENHANCEMENT OF DEDUCTION FOR QUALIFIED BUSINESS INCOME. (a) Increase in Taxable Income Limitation Phase-in Amounts.-- (1) In general.--Subparagraph (B) of section 199A(b)(3) is amended by striking ``$50,000 ($100,000 in the case of a joint return)'' each place it appears and inserting ``$75,000 ($150,000 in the case of a joint return)''. (2) Conforming amendment.--Paragraph (3) of section 199A(d) is amended by striking ``$50,000 ($100,000 in the case of a joint return)'' each place it appears and inserting ``$75,000 ($150,000 in the case of a joint return)''. (b) Minimum Deduction for Active Qualified Business Income.-- (1) In general.--Subsection (i) of section 199A is amended to read as follows: ``(i) Minimum Deduction for Active Qualified Business Income.-- ``(1) In general.--In the case of an applicable taxpayer for any taxable year, the deduction allowed under subsection (a) for the taxable year shall be equal to the greater of-- ``(A) the amount of such deduction determined without regard to this subsection, or ``(B) $400. ``(2) Applicable taxpayer.--For purposes of this subsection-- ``(A) In general.--The term `applicable taxpayer' means, with respect to any taxable year, a taxpayer whose aggregate qualified business income with respect to all active qualified trades or businesses of the taxpayer for such taxable year is at least $1,000. ``(B) Active qualified trade or business.--The term `active qualified trade or business' means, with respect to any taxpayer for any taxable year, any qualified trade or business of the taxpayer in which the taxpayer materially participates (within the meaning of section 469(h)). ``(3) Inflation adjustment.--In the case of any taxable year beginning after 2026, the $400 amount in paragraph (1)(B) and the $1,000 amount in paragraph (2)(A) shall each be increased by an amount equal to -- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under this paragraph is not a multiple of $5, such increase shall be rounded to the nearest multiple of $5.''. (2) Conforming amendment.--Section 199A(a) is amended by inserting ``except as provided in subsection (i),'' before ``there''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70106. EXTENSION AND ENHANCEMENT OF INCREASED ESTATE AND GIFT TAX EXEMPTION AMOUNTS. (a) In General.--Section 2010(c)(3) is amended-- (1) in subparagraph (A) by striking ``$5,000,000'' and inserting ``$15,000,000'', (2) in subparagraph (B)-- (A) in the matter preceding clause (i), by striking ``2011'' and inserting ``2026'', and (B) in clause (ii), by striking ``calendar year 2010'' and inserting ``calendar year 2025'', and (3) by striking subparagraph (C). (b) Effective Date.--The amendments made by this section shall apply to estates of decedents dying and gifts made after December 31, 2025. SEC. 70107. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNTS AND MODIFICATION OF PHASEOUT THRESHOLDS. (a) In General.--Section 55(d)(4) is amended-- (1) in subparagraph (A), by striking ``, and before January 1, 2026'', and (2) by striking ``and Before 2026'' in the heading. (b) Modification of Inflation Adjustment.--Section 55(d)(4)(B) is amended-- (1) by striking ``2018'' and inserting ``2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I))'', and (2) by striking ``determined by substituting `calendar year 2017' for `calendar year 2016' in subparagraph (A)(ii) thereof.'' and inserting ``determined by substituting for `calendar year 2016' in subparagraph (A)(ii) thereof-- ``(1) `calendar year 2017', in the case of the $109,400 amount in subparagraph (A)(i)(I) and the $70,300 amount in subparagraph (A)(i)(II), and ``(2) `calendar year 2025', in the case of the $1,000,000 amount in subparagraph (A)(ii)(I).''. (c) Modification of Phaseout Amount.--Section 55(d)(4)(A)(ii) is amended by striking ``and'' at the end of subclause (II), and by adding at the end the following new subclause: ``(IV) by substituting `50 percent' for `25 percent', and''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70108. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION FOR QUALIFIED RESIDENCE INTEREST. (a) In General.--Section 163(h)(3)(F) is amended-- (1) in clause (i)-- (A) by striking ``, and before January 1, 2026'', (B) by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively, (C) by striking ``subclause (III)'' in subclause (V), as so redesignated, and inserting ``subclause (IV)'', and (D) by inserting after subclause (II) the following new subclause: ``(III) Mortgage insurance premiums treated as interest.-- Clause (iv) of subparagraph (E) shall not apply.'', (2) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively, and (3) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. [[Page S3809]] SEC. 70109. EXTENSION AND MODIFICATION OF LIMITATION ON CASUALTY LOSS DEDUCTION. (a) In General.--Section 165(h)(5) is amended-- (1) in subparagraph (A), by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Extension to State Declared Disasters.-- (1) In general.--Subparagraph (A) of section 165(h)(5), as amended by subsection (a), is further amended by striking ``(i)(5))'' and inserting ``(i)(5)) or a State declared disaster''. (2) Exception related to personal casualty gains.--Clause (i) of section 165(h)(5)(B) is amended by striking ``(as so defined)'' and inserting ``(as so defined) or a State declared disaster''. (3) State declared disaster.--Paragraph (5) of section 165(h) is amended by adding at the end the following new subparagraph: ``(C) State declared disaster.--For purposes of this paragraph-- ``(i) In general.--The term `State declared disaster' means, with respect to any State, any natural catastrophe (including any hurricane, tornado, storm, high water, wind- driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the State, which in the determination of the Governor of such State (or the Mayor, in the case of the District of Columbia) and the Secretary causes damage of sufficient severity and magnitude to warrant the application of the rules of this section. ``(ii) State.--The term `State' includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70110. TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTIONS OTHER THAN EDUCATOR EXPENSES. (a) In General.--Section 67(g) is amended-- (1) by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Deduction for Educator Expenses.-- (1) In general.--Section 67(b) is amended by striking ``and'' at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ``, and'', and by adding at the end the following new paragraph: ``(13) the deductions allowed by section 162 for educator expenses (as defined in subsection (g)).''. (2) Inclusion of coaches and certain nonathletic instructional equipment.--Section 67 is amended by redesignating subsection (g), as amended by this section, as subsection (h), and by inserting after subsection (f) the following new section: ``(g) Educator Expenses.--For purposes of subsection (b)(13), the term `educator expenses' means expenses of a type which would be described in section 62(a)(2)(D) if-- ``(1) such section were applied-- ``(A) without regard to the dollar limitation, ``(B) without regard to `(other than nonathletic supplies for courses of instruction in health or physical education)' in clause (ii) thereof, and ``(C) by substituting `as part of instructional activity' for `in the classroom' in clause (ii) thereof, and ``(2) section 62(d)(1)(A) were applied by inserting `, interscholastic sports administrator or coach,' after `counselor'.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70111. LIMITATION ON TAX BENEFIT OF ITEMIZED DEDUCTIONS. (a) In General.--Section 68 is amended to read as follows: ``(a) In General.--In the case of an individual, the amount of the itemized deductions otherwise allowable for the taxable year (determined without regard to this section) shall be reduced by \2/37\ of the lesser of-- ``(1) such amount of itemized deductions, or ``(2) so much of the taxable income of the taxpayer for the taxable year (determined without regard to this section and increased by such amount of itemized deductions) as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer. ``(b) Coordination With Other Limitations.--This section shall be applied after the application of any other limitation on the allowance of any itemized deduction.''. (b) Limitation Not Applicable to Determination of Deduction for Qualified Business Income.-- (1) In general.--Section 199A(e)(1) is amended by inserting ``without regard to section 68 and'' after ``shall be computed''. (2) Patrons of specified agricultural and horticultural cooperatives.--Section 199A(g)(2)(B) is amended by inserting ``section 68 or'' after ``without regard to''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70112. EXTENSION AND MODIFICATION OF QUALIFIED TRANSPORTATION FRINGE BENEFITS. (a) In General.--Section 132(f) is amended-- (1) by striking subparagraph (D) of paragraph (1), (2) in paragraph (2), by inserting ``and'' at the end of subparagraph (A), by striking ``, and'' at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C), (3) by striking ``(other than a qualified bicycle commuting reimbursement)'' in paragraph (4), (4) by striking subparagraph (F) of paragraph (5), and (5) by striking paragraph (8). (b) Inflation Adjustment.--Clause (ii) of section 132(f)(6)(A) is amended by striking ``1998'' in clause (ii) and inserting ``1997''. (c) Coordination With Disallowance of Certain Expenses.-- Subsection (l) of section 274 is amended-- (1) by striking ``Benefits.--'' and all that follows through ``No deduction'' and inserting ``Benefits.--No deduction'', and (2) by striking paragraph (2). (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70113. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION AND EXCLUSION FOR MOVING EXPENSES. (a) Extension of Limitation on Deduction.--Section 217(k) is amended-- (1) by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Allowance of Deduction for Members of the Intelligence Community.--Section 217(k), as amended by subsection (a), is further amended-- (1) by striking ``2017.--Except in the case'' and inserting ``2017.-- ``(1) In general.--Except in the case'', and (2) by adding at the end the following new paragraph: ``(2) Members of the intelligence community.--An employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment which requires relocation shall be treated for purposes of this section in the same manner as an individual to whom subsection (g) applies.''. (c) Extension of Limitation on Exclusion.--Section 132(g)(2) is amended-- (1) by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (d) Allowance of Exclusion for Members of the Intelligence Community.--Section 132(g)(2) of the Internal Revenue Code of 1986 is amended by inserting ``, or an employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment that requires relocation'' after ``change of station''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70114. EXTENSION AND MODIFICATION OF LIMITATION ON WAGERING LOSSES. (a) In General.--Section 165 is amended by striking subsection (d) and inserting the following: ``(d) Wagering Losses.-- ``(1) In general.--For purposes of losses from wagering transactions, the amount allowed as a deduction for any taxable year-- ``(A) shall be equal to 90 percent of the amount of such losses during such taxable year, and ``(B) shall be allowed only to the extent of the gains from such transactions during such taxable year. ``(2) Special rule.--For purposes of paragraph (1), the term `losses from wagering transactions' includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70115. EXTENSION AND ENHANCEMENT OF INCREASED LIMITATION ON CONTRIBUTIONS TO ABLE ACCOUNTS. (a) In General.--Section 529A(b)(2)(B) is amended-- (1) in clause (i), by inserting ``(determined by substituting `1996' for `1997' in paragraph (2)(B) thereof)'' after ``section 2503(b)'', and (2) in clause (ii), by striking ``before January 1, 2026''. (b) Effective Dates.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made after December 31, 2025. (2) Modified inflation adjustment.--The amendment made by subsection (a)(1) shall apply to taxable years beginning after December 31, 2025. SEC. 70116. EXTENSION AND ENHANCEMENT OF SAVERS CREDIT ALLOWED FOR ABLE CONTRIBUTIONS. (a) Extension.-- (1) In general.--Section 25B(d)(1) is amended to read as follows: ``(1) In general.--The term `qualified retirement savings contributions' means, with respect to any taxable year, the sum of-- [[Page S3810]] ``(A) the amount of contributions made by the eligible individual during such taxable year to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary, and ``(B) in the case of any taxable year beginning before January 1, 2027-- ``(i) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual, ``(ii) the amount of-- ``(I) any elective deferrals (as defined in section 402(g)(3)) of such individual, and ``(II) any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and ``(iii) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).''. (2) Coordination with secure 2.0 act of 2022 amendment.-- Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 is repealed, and the Internal Revenue Code of 1986 shall be applied and administered as though such paragraph were never enacted. (3) Effective date.--The amendments and repeal made by this subsection shall apply to taxable years ending after December 31, 2025. (b) Increase of Credit Amount.-- (1) In general.--Section 25B(a) is amended by striking ``$2,000'' and inserting ``$2,100''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2026. SEC. 70117. EXTENSION OF ROLLOVERS FROM QUALIFIED TUITION PROGRAMS TO ABLE ACCOUNTS PERMITTED. (a) In General.--Section 529(c)(3)(C)(i)(III) is amended by striking ``before January 1, 2026,''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70118. EXTENSION OF TREATMENT OF CERTAIN INDIVIDUALS PERFORMING SERVICES IN THE SINAI PENINSULA AND ENHANCEMENT TO INCLUDE ADDITIONAL AREAS. (a) Treatment Made Permanent.--Section 11026(a) of Public Law 115-97 is amended by striking ``, with respect to the applicable period''. (b) Kenya, Mali, Burkina Faso, and Chad Included as Hazardous Duty Areas.--Section 11026(b) of Public Law 115-97 is amended to read as follows: ``(b) Qualified Hazardous Duty Area.--For purposes of this section, the term `qualified hazardous duty area' means each of the following locations, but only during the period for which any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger), for services performed in such location: ``(1) the Sinai Peninsula of Egypt. ``(2) Kenya. ``(3) Mali. ``(4) Burkina Faso. ``(5) Chad.''. (c) Conforming Amendment.--Section 11026 of Public Law 115- 97 is amended by striking subsections (c) and (d). (d) Effective Date.--The amendments made by this section shall take effect on January 1, 2026. SEC. 70119. EXTENSION AND MODIFICATION OF EXCLUSION FROM GROSS INCOME OF STUDENT LOANS DISCHARGED ON ACCOUNT OF DEATH OR DISABILITY. (a) In General.--Section 108(f)(5) is amended to read as follows: ``(5) Discharges on account of death or disability.-- ``(A) In general.--In the case of an individual, gross income does not include any amount which (but for this subsection) would be includible in gross income for such taxable year by reason of the discharge (in whole or in part) of any loan described in subparagraph (B), if such discharge was-- ``(i) pursuant to subsection (a) or (d) of section 437 of the Higher Education Act of 1965 or the parallel benefit under part D of title IV of such Act (relating to the repayment of loan liability), ``(ii) pursuant to section 464(c)(1)(F) of such Act, or ``(iii) otherwise discharged on account of death or total and permanent disability of the student. ``(B) Loans discharged.--A loan is described in this subparagraph if such loan is-- ``(i) a student loan (as defined in paragraph (2)), or ``(ii) a private education loan (as defined in section 140(a) of the Consumer Credit Protection Act (15 U.S.C. 1650(a)). ``(C) Social security number requirement.-- ``(i) In general.--Subparagraph (A) shall not apply with respect to any discharge during any taxable year unless the taxpayer includes the taxpayer's social security number on the return of tax for such taxable year. ``(ii) Social security number.--For purposes of this subparagraph, the term `social security number' has the meaning given such term in section 24(h)(7).''. (b) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2), as amended by this Act, is further amended by striking ``and'' at the end of subparagraph (V), by striking the period at the end of subparagraph (W) and inserting ``, and'', and by inserting after subparagraph (W) the following new subparagraph: ``(X) an omission of a correct social security number required under section 108(f)(5)(C) (relating to discharges on account of death or disability).''. (c) Effective Date.--The amendments made by this section shall apply to discharges after December 31, 2025. SEC. 70120. LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE AND LOCAL TAXES, ETC. (a) In General.--Section 164(b)(6) is amended-- (1) by striking ``and before January 1, 2026'', and (2) by striking ``$10,000 ($5,000 in the case of a married individual filing a separate return)'' and inserting ``the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return)''. (b) Applicable Limitation Amount.--Section 164(b) is amended by adding at the end the following new paragraph: ``(7) Applicable limitation amount.-- ``(A) In general.--For purposes of paragraph (6), the term `applicable limitation amount' means-- ``(i) in the case of any taxable year beginning in calendar year 2025, $40,000, ``(ii) in the case of any taxable year beginning in calendar year 2026, $40,400, ``(iii) in the case of any taxable year beginning after calendar year 2026 and before 2030, 101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year, and ``(iv) in the case of any taxable year beginning after calendar year 2029, $10,000. ``(B) Phasedown based on modified adjusted gross income.-- ``(i) In general.--Except as provided in clause (iii), in the case of any taxable year beginning before January 1, 2030, the applicable limitation amount shall be reduced by 30 percent of the excess (if any) of the taxpayer's modified adjusted gross income over the threshold amount (half the threshold amount in the case of a married individual filing a separate return). ``(ii) Threshold amount.--For purposes of this subparagraph, the term `threshold amount' means-- ``(I) in the case of any taxable year beginning in calendar year 2025, $500,000, ``(II) in the case of any taxable year beginning in calendar year 2026, $505,000, and ``(III) in the case of any taxable year beginning after calendar year 2026, 101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year. ``(iii) Limitation on reduction.--The reduction under clause (i) shall not result in the applicable limitation amount being less than $10,000. ``(iv) Modified adjusted gross income.--For purposes of this paragraph, the term `modified adjusted gross income' means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. CHAPTER 2--DELIVERING ON PRESIDENTIAL PRIORITIES TO PROVIDE NEW MIDDLE- CLASS TAX RELIEF SEC. 70201. NO TAX ON TIPS. (a) Deduction Allowed.--Part VII of subchapter B of chapter 1 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section: ``SEC. 224. QUALIFIED TIPS. ``(a) In General.--There shall be allowed as a deduction an amount equal to the qualified tips received during the taxable year that are included on statements furnished to the individual pursuant to section 6041(d)(3), 6041A(e)(3), 6050W(f)(2), or 6051(a)(18), or reported by the taxpayer on Form 4137 (or successor). ``(b) Limitation.-- ``(1) In general.--The amount allowed as a deduction under this section for any taxable year shall not exceed $25,000. ``(2) Limitation based on adjusted gross income.-- ``(A) In general.--The amount allowable as a deduction under subsection (a) (after application of paragraph (1)) shall be reduced (but not below zero) by $100 for each $1,000 by which the taxpayer's modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return). ``(B) Modified adjusted gross income.--For purposes of this paragraph, the term `modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(c) Tips Received in Course of Trade or Business.--In the case of qualified tips received by an individual during any taxable year in the course of a trade or business (other than the trade or business of performing services as an employee) of such individual, such qualified tips shall be taken into account under subsection (a) only to the extent that the gross income for the taxpayer from such trade or business for such taxable year (including such qualified tips) exceeds the sum of the deductions (other than the deduction allowed under this section) allocable to the trade or business in which such qualified tips are received by the individual for such taxable year. ``(d) Qualified Tips.--For purposes of this section-- [[Page S3811]] ``(1) In general.--The term `qualified tips' means cash tips received by an individual in an occupation which customarily and regularly received tips on or before December 31, 2024, as provided by the Secretary. ``(2) Exclusions.--Such term shall not include any amount received by an individual unless-- ``(A) such amount is paid voluntarily without any consequence in the event of nonpayment, is not the subject of negotiation, and is determined by the payor, ``(B) the trade or business in the course of which the individual receives such amount is not a specified service trade or business (as defined in section 199A(d)(2)), and ``(C) such other requirements as may be established by the Secretary in regulations or other guidance are satisfied. For purposes of subparagraph (B), in the case of an individual receiving tips in the trade or business of performing services as an employee, such individual shall be treated as receiving tips in the course of a trade or business which is a specified service trade or business if the trade or business of the employer is a specified service trade or business. ``(3) Cash tips.--For purposes of paragraph (1), the term `cash tips' includes tips received from customers that are paid in cash or charged and, in the case of an employee, tips received under any tip-sharing arrangement. ``(e) Social Security Number Required.-- ``(1) In general.--No deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual's social security number. ``(2) Social security number defined.--For purposes of paragraph (1), the term `social security number' shall have the meaning given such term in section 24(h)(7). ``(f) Married Individuals.--If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year. ``(g) Regulations.--The Secretary shall prescribe such regulations or other guidance as may be necessary to prevent reclassification of income as qualified tips, including regulations or other guidance to prevent abuse of the deduction allowed by this section. ``(h) Termination.--No deduction shall be allowed under this section for any taxable year beginning after December 31, 2028.''. (b) Deduction Allowed to Non-itemizers.--Section 63(b) is amended by striking ``and'' at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting ``, and'', and by adding at the end the following new paragraph: ``(5) the deduction provided in section 224.''. (c) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of subparagraph (W), by striking the period at the end of subparagraph (X) and inserting ``, and'', and by inserting after subparagraph (X) the following new subparagraph: ``(Y) an omission of a correct social security number required under section 224(e) (relating to deduction for qualified tips).''. (d) Exclusion From Qualified Business Income.--Section 199A(c)(4) is amended by striking ``and'' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ``, and'', and by adding at the end the following new subparagraph: ``(D) any amount with respect to which a deduction is allowable to the taxpayer under section 224(a) for the taxable year.''. (e) Extension of Tip Credit to Beauty Service Business.-- (1) In general.--Section 45B(b)(2) is amended to read as follows: ``(2) Application only to certain lines of business.--In applying paragraph (1) there shall be taken into account only tips received from customers or clients in connection with the following services: ``(A) The providing, delivering, or serving of food or beverages for consumption, if the tipping of employees delivering or serving food or beverages by customers is customary. ``(B) The providing of any of the following services to a customer or client if the tipping of employees providing such services is customary: ``(i) Barbering and hair care. ``(ii) Nail care. ``(iii) Esthetics. ``(iv) Body and spa treatments.''. (2) Credit determined with respect to minimum wage in effect.--Section 45B(b)(1)(B) is amended-- (A) by striking ``as in effect on January 1, 2007, and'', and (B) by inserting ``, and in the case of food or beverage establishments, as in effect on January 1, 2007'' after ``without regard to section 3(m) of such Act''. (f) Reporting Requirements.-- (1) Returns for payments made in the course of a trade or business.-- (A) Statement furnished to secretary.--Section 6041(a) is amended by inserting ``(including a separate accounting of any such amounts reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)'' after ``such gains, profits, and income''. (B) Statement furnished to payee.--Section 6041(d) is amended by striking ``and'' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ``, and'', and by inserting after paragraph (2) the following new paragraph: ``(3) in the case of compensation to non-employees, the portion of payments that have been reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips.''. (2) Returns for payments made for services and direct sales.-- (A) Statement furnished to secretary.--Section 6041A(a) is amended by inserting ``(including a separate accounting of any such amounts reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)'' after ``amount of such payments''. (B) Statement furnished to payee.--Section 6041A(e) is amended by striking ``and'' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ``, and'', and by inserting after paragraph (2) the following new paragraph: ``(3) in the case of subsection (a), the portion of payments that have been reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips.''. (3) Returns relating to third party settlement organizations.-- (A) Statement furnished to secretary.--Section 6050W(a) is amended by striking ``and'' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ``and'', and by adding at the end the following new paragraph: ``(3) in the case of a third party settlement organization, the portion of reportable payment transactions that have been reasonably designated by payors as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips.''. (B) Statement furnished to payee.--Section 6050W(f)(2) is amended by inserting ``(including a separate accounting of any such amounts that have been reasonably designated by payors as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)'' after ``reportable payment transactions''. (4) Returns related to wages.--Section 6051(a) is amended by striking ``and'' at the end of paragraph (16), by striking the period at the end of paragraph (17) and inserting ``, and'', and by inserting after paragraph (17) the following new paragraph: ``(18) the total amount of cash tips reported by the employee under section 6053(a) and the occupation described in section 224(d)(1) such person.''. (g) Clerical Amendment.--The table of sections for part VII of subchapter B of chapter 1 is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item: ``Sec. 224. Qualified tips.''. (h) Published List of Occupations Traditionally Receiving Tips.--Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall publish a list of occupations which customarily and regularly received tips on or before December 31, 2024, for purposes of section 224(d)(1) of the Internal Revenue Code of 1986 (as added by subsection (a)). (i) Withholding.--The Secretary of the Treasury (or the Secretary's delegate) shall modify the procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 2025, to take into account the deduction allowed under section 224 of such Code (as added by this Act). (j) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. (k) Transition Rule.--In the case of any cash tips required to be reported for periods before January 1, 2026, persons required to file returns or statements under section 6041(a), 6041(d)(3), 6041A(a), 6041A(e)(3), 6050W(a), or 6050W(f)(2) of the Internal Revenue Code of 1986 (as amended by this section) may approximate a separate accounting of amounts designated as cash tips by any reasonable method specified by the Secretary. SEC. 70202. NO TAX ON OVERTIME. (a) Deduction Allowed.--Part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating section 225 as section 226 and by inserting after section 224 the following new section: ``SEC. 225. QUALIFIED OVERTIME COMPENSATION. ``(a) In General.--There shall be allowed as a deduction an amount equal to the qualified overtime compensation received during the taxable year and included on statements furnished to the individual pursuant to section 6041(d)(4) or 6051(a)(19). ``(b) Limitation.-- ``(1) In general.--The amount allowed as a deduction under this section for any taxable year shall not exceed $12,500 ($25,000 in the case of a joint return). ``(2) Limitation based on adjusted gross income.-- ``(A) In general.--The amount allowable as a deduction under subsection (a) (after application of paragraph (1)) shall be reduced (but not below zero) by $100 for each $1,000 by which the taxpayer's modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return). ``(B) Modified adjusted gross income.--For purposes of this paragraph, the term `modified adjusted gross income' means the [[Page S3812]] adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(c) Qualified Overtime Compensation.-- ``(1) In general.--For purposes of this section, the term `qualified overtime compensation' means overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (as used in such section) at which such individual is employed. ``(2) Exclusions.--Such term shall not include any qualified tip (as defined in section 224(d)). ``(d) Social Security Number Required.-- ``(1) In general.--No deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual's social security number. ``(2) Social security number defined.--For purposes of paragraph (1), the term `social security number' shall have the meaning given such term in section 24(h)(7). ``(e) Married Individuals.--If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year. ``(f) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent abuse of the deduction allowed by this section. ``(g) Termination.--No deduction shall be allowed under this section for any taxable year beginning after December 31, 2028.''. (b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting ``, and'', and by adding at the end the following new paragraph: ``(6) the deduction provided in section 225.''. (c) Reporting.-- (1) Requirement to include overtime compensation on w-2.-- Section 6051(a), as amended by the preceding provision of this Act, is amended by striking ``and'' at the end of paragraph (17), by striking the period at the end of paragraph (18) and inserting ``, and'', and by inserting after paragraph (18) the following new paragraph: ``(19) the total amount of qualified overtime compensation (as defined in section 225(c)).''. (2) Payments to persons not treated as employees under tax laws.-- (A) Statement furnished to secretary.--Section 6041(a), as amended by section 70201(e)(1)(A), is amended by inserting ``and a separate accounting of any amount of qualified overtime compensation (as defined in section 225(c))'' after ``occupation of the person receiving such tips''. (B) Statement furnished to payee.--Section 6041(d), as amended by section 70201(e)(1)(B), is amended by striking ``and'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``, and'', and by inserting after paragraph (3) the following new paragraph: ``(4) the portion of payments that are qualified overtime compensation (as defined in section 225(c)).''. (d) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of subparagraph (X), by striking the period at the end of subparagraph (Y) and inserting ``, and'', and by inserting after subparagraph (Y) the following new subparagraph: ``(Z) an omission of a correct social security number required under section 225(d) (relating to deduction for qualified overtime).''. (e) Clerical Amendment.--The table of sections for part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating the item relating to section 225 as an item relating to section 226 and by inserting after the item relating to section 224 the following new item: ``Sec. 225. Qualified overtime compensation.''. (f) Withholding.--The Secretary of the Treasury (or the Secretary's delegate) shall modify the procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 2025, to take into account the deduction allowed under section 225 of such Code (as added by this Act). (g) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. (h) Transition Rule.--In the case of qualified overtime compensation required to be reported for periods before January 1, 2026, persons required to file returns or statements under section 6051(a)(19), 6041(a), or 6041(d)(4) of the Internal Revenue Code of 1986 (as amended by this section) may approximate a separate accounting of amounts designated as qualified overtime compensation by any reasonable method specified by the Secretary. SEC. 70203. NO TAX ON CAR LOAN INTEREST. (a) In General.--Section 163(h) is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: ``(4) Special rules for taxable years 2025 through 2028 relating to qualified passenger vehicle loan interest.-- ``(A) In general.--In the case of taxable years beginning after December 31, 2024, and before January 1, 2029, for purposes of this subsection the term `personal interest' shall not include qualified passenger vehicle loan interest. ``(B) Qualified passenger vehicle loan interest defined.-- ``(i) In general.--For purposes of this paragraph, the term `qualified passenger vehicle loan interest' means any interest which is paid or accrued during the taxable year on indebtedness incurred by the taxpayer after December 31, 2024, for the purchase of, and that is secured by a first lien on, an applicable passenger vehicle for personal use. ``(ii) Exceptions.--Such term shall not include any amount paid or incurred on any of the following: ``(I) A loan to finance fleet sales. ``(II) A loan incurred for the purchase of a commercial vehicle that is not used for personal purposes. ``(III) Any lease financing. ``(IV) A loan to finance the purchase of a vehicle with a salvage title. ``(V) A loan to finance the purchase of a vehicle intended to be used for scrap or parts. ``(iii) VIN requirement.--Interest shall not be treated as qualified passenger vehicle loan interest under this paragraph unless the taxpayer includes the vehicle identification number of the applicable passenger vehicle described in clause (i) on the return of tax for the taxable year. ``(C) Limitations.-- ``(i) Dollar limit.--The amount of interest taken into account by a taxpayer under subparagraph (B) for any taxable year shall not exceed $10,000. ``(ii) Limitation based on modified adjusted gross income.-- ``(I) In general.--The amount which is otherwise allowable as a deduction under subsection (a) as qualified passenger vehicle loan interest (determined without regard to this clause and after the application of clause (i)) shall be reduced (but not below zero) by $200 for each $1,000 (or portion thereof) by which the modified adjusted gross income of the taxpayer for the taxable year exceeds $100,000 ($200,000 in the case of a joint return). ``(II) Modified adjusted gross income.--For purposes of this clause, the term `modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(D) Applicable passenger vehicle.--The term `applicable passenger vehicle' means any vehicle-- ``(i) the original use of which commences with the taxpayer, ``(ii) which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails), ``(iii) which has at least 2 wheels, ``(iv) which is a car, minivan, van, sport utility vehicle, pickup truck, or motorcycle, ``(v) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, and ``(vi) which has a gross vehicle weight rating of less than 14,000 pounds. Such term shall not include any vehicle the final assembly of which did not occur within the United States. ``(E) Other definitions and special rules.--For purposes of this paragraph-- ``(i) Final assembly.--For purposes of subparagraph (D), the term `final assembly' means the process by which a manufacturer produces a vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle. ``(ii) Treatment of refinancing.--Indebtedness described in subparagraph (B) shall include indebtedness that results from refinancing any indebtedness described in such subparagraph, and that is secured by a first lien on the applicable passenger vehicle with respect to which the refinanced indebtedness was incurred, but only to the extent the amount of such resulting indebtedness does not exceed the amount of such refinanced indebtedness. ``(iii) Related parties.--Indebtedness described in subparagraph (B) shall not include any indebtedness owed to a person who is related (within the meaning of section 267(b) or 707(b)(1)) to the taxpayer.''. (b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of paragraph (5), by striking the period at the end of paragraph (6) and inserting ``and'', and by adding at the end the following new paragraph: ``(7) so much of the deduction allowed by section 163(a) as is attributable to the exception under section 163(h)(4)(A).''. (c) Reporting.-- (1) In general.--Subpart B of part III of subchapter A of chapter 61 is amended by adding at the end the following new section: ``SEC. 6050AA. RETURNS RELATING TO APPLICABLE PASSENGER VEHICLE LOAN INTEREST RECEIVED IN TRADE OR BUSINESS FROM INDIVIDUALS. ``(a) In General.--Any person-- ``(1) who is engaged in a trade or business, and [[Page S3813]] ``(2) who, in the course of such trade or business, receives from any individual interest aggregating $600 or more for any calendar year on a specified passenger vehicle loan, shall make the return described in subsection (b) with respect to each individual from whom such interest was received at such time as the Secretary may provide. ``(b) Form and Manner of Returns.--A return is described in this subsection if such return-- ``(1) is in such form as the Secretary may prescribe, and ``(2) contains-- ``(A) the name and address of the individual from whom the interest described in subsection (a)(2) was received, ``(B) the amount of such interest received for the calendar year, ``(C) the amount of outstanding principal on the specified passenger vehicle loan as of the beginning of such calendar year, ``(D) the date of the origination of such loan, ``(E) the year, make, model, and vehicle identification number of the applicable passenger vehicle which secures such loan (or such other description of such vehicle as the Secretary may prescribe), and ``(F) such other information as the Secretary may prescribe. ``(c) Statements to Be Furnished to Individuals With Respect to Whom Information Is Required.--Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing-- ``(1) the name, address, and phone number of the information contact of the person required to make such return, and ``(2) the information described in subparagraphs (B), (C), (D), and (E) of subsection (b)(2) with respect to such individual (and such information as is described in subsection (b)(2)(F) with respect to such individual as the Secretary may provide for purposes of this subsection). The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made. ``(d) Definitions.--For purposes of this section-- ``(1) In general.--Terms used in this section which are also used in paragraph (4) of section 163(h) shall have the same meaning as when used in such paragraph. ``(2) Specified passenger vehicle loan.--The term `specified passenger vehicle loan' means the indebtedness described in section 163(h)(4)(B) with respect to any applicable passenger vehicle. ``(e) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent the duplicate reporting of information under this section. ``(f) Applicability.--No return shall be required under this section for any period to which section 163(h)(4) does not apply.''. (2) Penalties.--Section 6724(d) is amended-- (A) in paragraph (1)(B), by striking ``or'' at the end of clause (xxvii), by striking ``and'' at the end of clause (xxviii) and inserting ``or'', and by adding at the end the following new clause: ``(xxix) section 6050AA(a) (relating to returns relating to applicable passenger vehicle loan interest received in trade or business from individuals),'', and (B) in paragraph (2), by striking ``or'' at the end of subparagraph (KK), by striking the period at the end of subparagraph (LL) and inserting ``, or'', and by inserting after subparagraph (LL) the following new subparagraph: ``(MM) section 6050AA(c) (relating to statements relating to applicable passenger vehicle loan interest received in trade or business from individuals).''. (d) Conforming Amendments.-- (1) Section 56(e)(1)(B) is amended by striking ``section 163(h)(4)'' and inserting ``section 163(h)(5)''. (2) The table of sections for subpart B of part III of subchapter A of chapter 61 is amended by adding at the end the following new item: ``Sec. 6050AA. Returns relating to applicable passenger vehicle loan interest received in trade or business from individuals.''. (e) Effective Date.--The amendments made by this section shall apply to indebtedness incurred after December 31, 2024. SEC. 70204. TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM. (a) Trump Accounts.-- (1) In general.--Subchapter F of chapter 1 is amended by adding at the end the following new part: ``PART IX--TRUMP ACCOUNTS ``Sec. 530A. Trump accounts. ``SEC. 530A. TRUMP ACCOUNTS. ``(a) General Rule.--Except as provided in this section or under regulations or guidance established by the Secretary, a Trump account shall be treated for purposes of this title in the same manner as an individual retirement account under section 408(a). ``(b) Trump Account.--For purposes of this section-- ``(1) In general.--The term `Trump account' means an individual retirement account (as defined in section 408(a)) which is not designated as a Roth IRA and which meets the following requirements: ``(A) The account-- ``(i) is created or organized by the Secretary for the exclusive benefit of an eligible individual or such eligible individual's beneficiaries, or ``(ii) is-- ``(I) created or organized in the United States for the exclusive benefit of an individual who has not attained the age of 18 before the end of the calendar year, or such individual's beneficiaries, and ``(II) funded by a qualified rollover contribution. ``(B) The account is designated (in such manner as the Secretary shall prescribe) at the time of the establishment of the account as a Trump account. ``(C) The written governing instrument creating the account meets the following requirements: ``(i) No contribution will be accepted-- ``(I) before the date that is 12 months after the date of the enactment of this section, or ``(II) in the case of a contribution made in any calendar year before the calendar year in which the account beneficiary attains age 18, if such contribution would result in aggregate contributions (other than exempt contributions) for such calendar year in excess of the contribution limit specified in subsection (c)(2)(A). ``(ii) Except as provided in subsection (d), no distribution will be allowed before the first day of the calendar year in which the account beneficiary attains age 18. ``(iii) No part of the account funds will be invested in any asset other than an eligible investment during any period before the first day of the calendar year in which the account beneficiary attains age 18. ``(2) Eligible individual.--The term `eligible individual' means any individual-- ``(A) who has not attained the age of 18 before the close of the calendar year in which the election under subparagraph (C) is made, ``(B) for whom a social security number (within the meaning of section 24(h)(7)) has been issued before the date on which an election under subsection (C) is made, and ``(C) for whom-- ``(i) an election is made under this subparagraph by the Secretary if the Secretary determines (based on information available to the Secretary from tax returns or otherwise) that such individual meets the requirements of subparagraphs (A) and (B) and no prior election has been made for such individual under clause (ii), or ``(ii) an election is made under this subparagraph by a person other than the Secretary (at such time and in such manner as the Secretary may prescribe) for the establishment of a Trump account if no prior election has been made for such individual under clause (i). ``(3) Eligible investment.-- ``(A) In general.--The term `eligible investment' means any mutual fund or exchange traded fund which-- ``(i) tracks the returns of a qualified index, ``(ii) does not use leverage, ``(iii) does not have annual fees and expenses of more than 0.1 percent of the balance of the investment in the fund, and ``(iv) meets such other criteria as the Secretary determines appropriate for purposes of this section. ``(B) Qualified index.--The term `qualified index' means-- ``(i) the Standard and Poor's 500 stock market index, or ``(ii) any other index-- ``(I) which is comprised of equity investments in United States companies, and ``(II) for which regulated futures contracts (as defined in section 1256(g)(1)) are traded on a qualified board or exchange (as defined in section 1256(g)(7)). Such term shall not include any industry or sector-specific index, but may include an index based on market capitalization. ``(4) Account beneficiary.--The term `account beneficiary' means the individual on whose behalf the Trump account was established. ``(c) Treatment of Contributions.-- ``(1) No deduction allowed.--No deduction shall be allowed under section 219 for any contribution which is made before the first day of the calendar year in which the account beneficiary attains age 18. ``(2) Contribution limit.--In the case of any contribution made before the calendar year in which the account beneficiary attains age 18-- ``(A) In general.--The aggregate amount of contributions (other than exempt contributions) for such calendar year shall not exceed $5,000. ``(B) Exempt contribution.--For purposes of this paragraph, the term `exempt contribution' means-- ``(i) a qualified rollover contribution, ``(ii) any qualified general contribution, or ``(iii) any contribution provided under section 6434. ``(C) Cost-of-living adjustment.-- ``(i) In general.--In the case of any calendar year after 2027, the $5,000 amount under subparagraph (A) shall be increased by an amount equal to-- ``(I) such dollar amount, multiplied by ``(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting `calendar year 2026' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(ii) Rounding.--If any increase under this subparagraph is not a multiple of $100, such [[Page S3814]] amount shall be rounded to the next lower multiple of $100. ``(3) Timing of contributions.--Section 219(f)(3) shall not apply to any contribution made to a Trump account for any taxable year ending before the calendar year in which the account beneficiary attains age 18. ``(d) Distributions.-- ``(1) In general.--Except as otherwise provided in this subsection, no distribution shall be allowed before the first day of the calendar year in which the account beneficiary attains age 18. ``(2) Tax treatment of allowable distributions.--For purposes of applying section 72 to any amount distributed from a Trump account, the investment in the contract shall not include-- ``(A) any qualified general contribution, ``(B) any contribution provided under section 6434, and ``(C) the amount of any contribution which is excluded from gross income under section 128. ``(3) Qualified rollover contributions.--Paragraph (1) shall not apply to any distribution which is a qualified rollover contribution and the amount of such distribution shall not be included in the gross income of the beneficiary. ``(4) Qualified able rollover contributions.-- ``(A) In general.--Paragraph (1) shall not apply to any distribution which is a qualified ABLE rollover contribution and the amount of such distribution shall not be included in the gross income of the beneficiary. ``(B) Qualified able rollover contribution.--For purposes of this section, the term `qualified ABLE rollover contribution' means an amount which is paid during the calendar year in which the account beneficiary attains age 17 in a direct trustee-to-trustee transfer from a Trump account maintained for the benefit of the account beneficiary to an ABLE account (as defined in section 529A(e)(6)) for the benefit of the such account beneficiary, but only if the amount of such payment is equal to the entire balance of the Trump account from which the payment is made. ``(5) Distributions of excess contributions.--In the case of any contribution which is made before the calendar year in which the account beneficiary attains age 18 and which is in excess of the limitation in effect under subsection (c)(2)(A) for the calendar year-- ``(A) paragraph (1) shall not apply to the distribution of such excess, ``(B) the amount of such distribution shall not be included in gross income of the account beneficiary, and ``(C) the tax imposed by this chapter on the distributee for the taxable year in which the distribution is made shall be increased by 100 percent of the amount of net income attributable to such excess (determined without regard to subparagraph (B)). ``(6) Treatment of death of account beneficiary.--If, by reason of the death of the account beneficiary before the first day of the calendar year in which the account beneficiary attains age 18, any person acquires the account beneficiary's interest in the Trump account-- ``(A) paragraph (1) shall not apply, ``(B) such account shall cease to be a Trump account as of the date of death, and ``(C) an amount equal to the fair market value of the assets (reduced by the investment in the contract) in such account on such date shall-- ``(i) if such person is not the estate of such beneficiary, be includible in such person's gross income for the taxable year which includes such date, or ``(ii) if such person is the estate of such beneficiary, be includible in such beneficiary's gross income for the last taxable year of such beneficiary. ``(e) Qualified Rollover Contribution.--For purposes of this section, the term `qualified rollover contribution' means an amount which is paid in a direct trustee-to-trustee transfer from a Trump account maintained for the benefit of the account beneficiary to a Trump account maintained for such beneficiary, but only if the amount of such payment is equal to the entire balance of the Trump account from which the payment is made. ``(f) Qualified General Contribution.--For purposes of this section-- ``(1) In general.--The term `qualified general contribution' means any contribution which-- ``(A) is made by the Secretary pursuant to a general funding contribution, ``(B) is made to the Trump account of an account beneficiary in the qualified class of account beneficiaries specified in the general funding contribution, and ``(C) is in an amount which is equal to the ratio of-- ``(i) the amount of such general funding contribution, to ``(ii) the number of account beneficiaries in such qualified class. ``(2) General funding contribution.--The term `general funding contribution' means a contribution which-- ``(A) is made by-- ``(i) an entity described in section 170(c)(1) (other than a possession of the United States or a political subdivision thereof) or an Indian tribal government, or ``(ii) an organization described in section 501(c)(3) and exempt from tax under section 501(a), and ``(B) which specifies a qualified class of account beneficiaries to whom such contribution is to be distributed. ``(3) Qualified class.-- ``(A) In general.--The term `qualified class' means any of the following: ``(i) All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made. ``(ii) All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made and who reside in one or more States or other qualified geographic areas specified by the terms of the general funding contribution. ``(iii) All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made and who were born in one or more calendar years specified by the terms of the general funding contribution. ``(B) Qualified geographic area.--The term `qualified geographic area' means any geographic area in which not less than 5,000 account beneficiaries reside and which is designated by the Secretary as a qualified geographic area under this subparagraph. ``(g) Trustee Selection.--In the case of any Trump account created or organized by the Secretary, the Secretary shall take into account the following criteria in selecting the trustee: ``(1) The history of reliability and regulatory compliance of the trustee. ``(2) The customer service experience of the trustee. ``(3) The costs imposed by the trustee on the account or the account beneficiary. ``(h) Other Special Rules and Coordination With Individual Retirement Account Rules.-- ``(1) In general.--The rules of subsections (k) and (p) of section 408 shall not apply to a Trump account, and the rules of subsections (d) and (i) of section 408 shall not apply to a Trump account for any taxable year beginning before the calendar year in which the account beneficiary attains age 18. ``(2) Custodial accounts.--In the case of a Trump account, section 408(h) shall be applied by substituting `a Trump account described in section 530A(b)(1)' for `an individual retirement account described in subsection (a)'. ``(3) Contributions.--In the case of any taxable year beginning before the first day of the calendar year in which the account beneficiary attains age 18, a contribution to a Trump account shall not be taken into account in applying any contribution limit to any individual retirement plan other than a Trump account. ``(4) Distributions.--Section 408(d)(2) shall be applied separately with respect to Trump Accounts and other individual retirement plans. ``(5) Excess contributions.--For purposes of applying section 4973(b) to a Trump account for any taxable year beginning before the first day of the calendar year in which the account beneficiary attains age 18, the term `excess contributions' means the sum of-- ``(A) the amount by which the amount contributed to the account for the calendar year in which taxable year begins exceeds the amount permitted to be contributed to the account under subsection (c)(2), and ``(B) the amount determined under this paragraph for the preceding taxable year. For purposes of this paragraph, the excess contributions for a taxable year are reduced by the distributions to which subsection (d)(5) applies that are made during the taxable year or by the date prescribed by law (including extensions of time) for filing the account beneficiary's return for the taxable year. ``(i) Reports.-- ``(1) In general.--The trustee of a Trump account shall make such reports regarding such account to the Secretary and to the beneficiary of the account at such time and in such manner as may be required by the Secretary. Such reports shall include information with respect to-- ``(A) contributions (including the amount and source of any contribution in excess of $25 made from a person other than the Secretary, the account beneficiary, or the parent or legal guardian of the account beneficiary), ``(B) distributions (including distributions which are qualified rollover contributions), ``(C) the fair market value of the account, ``(D) the investment in the contract with respect to such account, and ``(E) such other matters as the Secretary may require. ``(2) Qualified rollover contributions.--Not later than 30 days after the date of any qualified rollover contribution, the trustee of the Trump account to which the contribution was made shall make a report to the Secretary. Such report shall include-- ``(A) the name, address, and social security number of the account beneficiary, ``(B) the name and address of such trustee, ``(C) the account number, ``(D) the routing number of the trustee, and ``(E) such other information as the Secretary may require. ``(3) Period of reporting.--This subsection shall not apply to any period after the calendar year in which the beneficiary attains age 17.''. (2) Qualified able rollover contributions exempt from able contribution limitation.-- [[Page S3815]] (A) In general.--Section 529A(b)(2)(B) is amended by inserting ``or received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)'' after ``except as provided in the case of contributions under subsection (c)(1)(C)''. (B) Prohibition on excess contributions.--The second sentence of section 529A(b)(6) is amended by inserting ``but do not include any contributions received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)'' before the period at the end. (C) Conforming amendment.--Section 4973(h)(1) is amended by inserting ``or contributions received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)'' after ``other than contributions under section 529A(c)(1)(C)''. (3) Failure to provide reports on trump accounts.--Section 6693(a)(2) is amended by striking ``and'' at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting ``, and'', and by inserting after subparagraph (F) the following new subparagraph: ``(G) section 530A(i) (relating to Trump accounts).''. (4) Clerical amendment.-- (A) The table of parts for subchapter F of chapter 1 is amended by adding at the end the following new item: ``PART IX--Trump Accounts''. (b) Employer Contributions.-- (1) In general.--Part III of subchapter B of chapter 1 is amended by inserting after section 127 the following new section: ``SEC. 128. EMPLOYER CONTRIBUTIONS TO TRUMP ACCOUNTS. ``(a) In General.--Gross income of an employee does not include amounts paid by the employer as a contribution to the Trump account of such employee or of any dependent of such employee if the amounts are paid or incurred pursuant to a program which is described in subsection (c). ``(b) Limitation.-- ``(1) In general.--The amount which may be excluded under subsection (a) with respect to any employee shall not exceed $2,500. ``(2) Inflation adjustment.-- ``(A) In general.--In the case of any taxable year beginning after 2027, the $2,500 amount in paragraph (1) shall be increased by an amount equal to-- ``(i) such dollar amount, multiplied by ``(ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting `calendar year 2026' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(B) Rounding.--If any increase determined under subparagraph (A) is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100. ``(c) Trump Account Contribution Program.--For purposes of this section, a Trump account contribution program is a separate written plan of an employer for the exclusive benefit of his employees to provide contributions to the Trump accounts of such employees or dependents of such employees which meets requirements similar to the requirements of paragraphs (2), (3), (6), (7), and (8) of section 129(d).''. (2) Clerical amendment.--The table of sections for part III of subchapter B of chapter 1 is amended by inserting after the item relating to section 127 the following new item: ``Sec. 128. Employer contributions to Trump accounts.''. (c) Certain Contributions Excluded From Gross Income.-- (1) In general.--Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section: ``SEC. 139J. CERTAIN CONTRIBUTIONS TO TRUMP ACCOUNTS. ``(a) In General.--Gross income of an account beneficiary shall not include any qualified general contribution to a Trump account of the account beneficiary. ``(b) Definitions.--Any term used in this section which is used in section 530A shall have the meaning given such term under section 530A.''. (2) Clerical amendment.--The table of sections for part III of subchapter B is amended by inserting before the item relating to section 140 the following new item: ``Sec. 139J. Certain contributions to Trump accounts.''. (d) Trump Accounts Contribution Pilot Program.-- (1) In general.--Subchapter B of chapter 65 is amended by adding at the end the following new section: ``SEC. 6434. TRUMP ACCOUNTS CONTRIBUTION PILOT PROGRAM. ``(a) In General.--In the case of an individual who makes an election under this section with respect to an eligible child of the individual, such eligible child shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year for which the election was made) in an amount equal to $1,000. ``(b) Refund of Payment.--The amount treated as a payment under subsection (a) shall be paid by the Secretary to the Trump account with respect to which such eligible child is the account beneficiary. ``(c) Eligible Child.--For purposes of this section, the term `eligible child ' means a qualifying child (as defined in section 152(c))-- ``(1) who is born after December 31, 2024, and before January 1, 2029, ``(2) with respect to whom no prior election has been made under this section by such individual or any other individual, ``(3) who is a United States citizen, and ``(4) at least one parent of whom was a United States citizen at the time of such qualifying child's birth. ``(d) Election.--An election under this section shall be made at such time and in such manner as the Secretary shall provide. ``(e) Social Security Number Required.-- ``(1) In general.--This section shall not apply to any taxpayer unless such individual includes with the election made under this section-- ``(A) such individual's social security number, and ``(B) the social security number of the eligible child with respect to whom the election is made. ``(2) Social security number defined.--For purposes of paragraph (1), the term `social security number' shall have the meaning given such term in section 24(h)(7), determined by substituting `before the date of the election made under section 6434' for `before the due date of such return' in subparagraph (B) thereof. ``(f) Exception From Reduction or Offset.--Any payment made to any individual under this section shall not be-- ``(1) subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 or any similar authority permitting offset, or ``(2) reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection. ``(g) Special Rule Regarding Interest.--The period determined under section 6611(a) with respect to any payment under this section shall not begin before January 1, 2028. ``(h) Mirror Code Possessions.--In the case of any possession of the United States with a mirror code tax system (as defined in section 24(k)), this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated. ``(i) Definitions.--For purposes of this section, the terms `Trump account' and `account beneficiary' have the meaning given such terms in section 530A(b).''. (2) Penalty for negligent claim or fraudulent claim.--Part I of subchapter A of chapter 68 is amended by adding at the end the following new section: ``SEC. 6659. IMPROPER CLAIM FOR TRUMP ACCOUNT CONTRIBUTION PILOT PROGRAM CREDIT. ``(a) In General.--In the case of any individual who makes an election under section 6434 with respect to an individual who is not an eligible child of the taxpayer-- ``(1) if such election was made due to negligence or disregard of the rules or regulations, there shall be imposed a penalty of $500, or ``(2) if such election was made due to fraud, there shall be imposed a penalty of $1,000. ``(b) Definitions.-- ``(1) Eligible child.--The term `eligible child' has the meaning given such term under section 6434. ``(2) Negligence; disregard.--The terms `negligence' and `disregard' have the same meaning as when such terms are used in section 6662.''. (3) Omission of correct social security number treated as mathematical or clerical error.--Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of subparagraph (Y), by striking the period at the end of subparagraph (Z) and inserting ``, and'', and by inserting after subparagraph (Z) the following new subparagraph: ``(AA) an omission of a correct social security number required under section 6434(e)(1) (relating to the Trump accounts contribution pilot program).''. (4) Conforming amendments.-- (A) The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item: ``Sec. 6434. Trump accounts contribution pilot program.''. (B) The table of sections for part I of subchapter A of chapter 68 is amended by inserting after the item relating to section 6658 the following new item: ``Sec. 6659. Improper claim for Trump account contribution pilot program credit.''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. (f) Funding.--In addition to amounts otherwise available, there is appropriated to the Department of the Treasury, out of any money in the Treasury not otherwise appropriated, $410,000,000, to remain available until September 30, 2034, to carry out the amendments made by this section. CHAPTER 3--ESTABLISHING CERTAINTY AND COMPETITIVENESS FOR AMERICAN JOB CREATORS Subchapter A--Permanent U.S. Business Tax Reform and Boosting Domestic Investment SEC. 70301. FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY. (a) Made Permanent.-- (1) In general.--Section 168(k)(2)(A) is amended by adding ``and'' at the end of clause (i), by striking ``, and'' at the end of clause (ii) and inserting a period, and by striking clause (iii). (2) Property with longer production periods.--Section 168(k)(2)(B) is amended-- [[Page S3816]] (A) in clause (i), by striking subclauses (II) and (III) and redesignating subclauses (IV), (V), and (VI), as subclauses (II), (III), and (IV), respectively, and (B) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively. (3) Self-constructed property.--Section 168(k)(2)(E) is amended by striking clause (i) and redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively. (4) Certain plants.--Section 168(k)(5)(A) is amended by striking ``planted before January 1, 2027, or is grafted before such date to a plant that has already been planted,'' in the matter preceding clause (i) and inserting ``planted or grafted''. (5) Conforming amendments.-- (A) Section 168(k)(2)(A)(ii) is amended by striking ``clause (ii) of subparagraph (E)'' and inserting ``clause (i) of subparagraph (E)''. (B) Section 168(k)(2)(C)(i) is amended by striking ``and subclauses (II) and (III) of subparagraph (B)(i)''. (C) Section 168(k)(2)(C)(ii) is amended by striking ``subparagraph (B)(iii)'' and inserting ``subparagraph (B)(ii)''. (D) Section 460(c)(6)(B) is amended by striking ``which'' and all that follows through the period and inserting ``which has a recovery period of 7 years or less.''. (b) 100 Percent Expensing.-- (1) In general.--Section 168(k) is amended-- (A) in paragraph (1)(A), by striking ``the applicable percentage'' and inserting ``100 percent'', and (B) by striking paragraphs (6) and (8). (2) Certain plants.--Section 168(k)(5)(A)(i) is amended by striking ``the applicable percentage'' and inserting ``100 percent''. (3) Transitional election of reduced percentage.--Section 168(k)(10) is amended by striking subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting before subparagraph (C) (as so redesignated) the following new subparagraphs: ``(A) In general.--In the case of qualified property placed in service by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (1)(A) shall be applied-- ``(i) in the case of property which is not described in clause (ii), by substituting `40 percent' for `100 percent', or ``(ii) in the case of property which is described in subparagraph (B) or (C) of paragraph (2), by substituting `60 percent' for `100 percent'. ``(B) Specified plants.--In the case of any specified plant planted or grafted by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (5)(A)(i) shall be applied by substituting `40 percent' for `100 percent'.''. (c) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants which are planted or grafted after January 19, 2025. (3) Transitional election of reduced percentage.--The amendment made by subsection (b)(3) shall apply to taxable years ending after January 19, 2025. (4) Acquisition date determination.--For purposes of paragraph (1), property shall not be treated as acquired after the date on which a written binding contract is entered into for such acquisition. SEC. 70302. FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERIMENTAL EXPENDITURES. (a) In General.--Part VI of subchapter B of chapter 1 is amended by inserting after section 174 the following new section: ``SEC. 174A. DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES. ``(a) Treatment as Expenses.--Notwithstanding section 263, there shall be allowed as a deduction any domestic research or experimental expenditures which are paid or incurred by the taxpayer during the taxable year. ``(b) Domestic Research or Experimental Expenditures.--For purposes of this section, the term `domestic research or experimental expenditures' means research or experimental expenditures paid or incurred by the taxpayer in connection with the taxpayer's trade or business other than such expenditures which are attributable to foreign research (within the meaning of section 41(d)(4)(F)). ``(c) Amortization of Certain Domestic Research or Experimental Expenditures.-- ``(1) In general.--At the election of the taxpayer, made in accordance with regulations or other guidance provided by the Secretary, in the case of domestic research or experimental expenditures which would (but for subsection (a)) be chargeable to capital account but not chargeable to property of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion), subsection (a) shall not apply and the taxpayer shall-- ``(A) charge such expenditures to capital account, and ``(B) be allowed an amortization deduction of such expenditures ratably over such period of not less than 60 months as may be selected by the taxpayer (beginning with the month in which the taxpayer first realizes benefits from such expenditures). ``(2) Time for and scope of election.--The election provided by paragraph (1) may be made for any taxable year, but only if made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof). The method so elected, and the period selected by the taxpayer, shall be adhered to in computing taxable income for the taxable year for which the election is made and for all subsequent taxable years unless, with the approval of the Secretary, a change to a different method (or to a different period) is authorized with respect to part or all of such expenditures. The election shall not apply to any expenditure paid or incurred during any taxable year before the taxable year for which the taxpayer makes the election. ``(d) Special Rules.-- ``(1) Land and other property.--This section shall not apply to any expenditure for the acquisition or improvement of land, or for the acquisition or improvement of property to be used in connection with the research or experimentation and of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion); but for purposes of this section allowances under section 167, and allowances under section 611, shall be considered as expenditures. ``(2) Exploration expenditures.--This section shall not apply to any expenditure paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral (including oil and gas). ``(3) Software development.--For purposes of this section, any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure.''. (b) Coordination With Certain Other Provisions.-- (1) Foreign research expenses.--Section 174 is amended-- (A) in subsection (a)-- (i) by striking ``a taxpayer's specified research or experimental expenditures'' and inserting ``a taxpayer's foreign research or experimental expenditures'', and (ii) by striking ``over the 5-year period (15-year period in the case of any specified research or experimental expenditures which are attributable to foreign research (within the meaning of section 41(d)(4)(F)))'' in paragraph (2)(B) and inserting ``over the 15-year period'', (B) in subsection (b)-- (i) by striking ``specified research'' and inserting ``foreign research'', (ii) by inserting ``and which are attributable to foreign research (within the meaning of section 41(d)(4)(F))'' before the period at the end, and (iii) by striking ``Specified'' in the heading thereof and inserting ``Foreign'', and (C) in subsection (d)-- (i) by striking ``specified research or experimental expenditures'' and inserting ``foreign research or experimental expenditures'', and (ii) by inserting ``or reduction to amount realized'' after ``no deduction''. (2) Research credit.-- (A) Section 41(d)(1)(A) is amended to read as follows: ``(A) with respect to which expenditures are treated as domestic research or experimental expenditures under section 174A,''. (B) Section 280C(c)(1) is amended to read as follows: ``(1) In general.--The domestic research or experimental expenditures otherwise taken into account under section 174A shall be reduced by the amount of the credit allowed under section 41(a).''. (3) AMT adjustment.--Section 56(b)(2) is amended-- (A) in subparagraph (A)-- (i) by striking ``or 174(a)'' in the matter preceding clause (i) and inserting ``, 174(a), or 174A(a)'', and (ii) by striking ``research and experimental expenditures described in section 174(a)'' in clause (ii) thereof and inserting ``foreign research or experimental expenditures described in section 174(a) and domestic research or experimental expenditures in section 174A(a)'', and (B) in subparagraph (C), by inserting ``or 174A(a)'' after ``174(a)''. (4) Optional 10-year writeoff.--Section 59(e)(2)(B) is amended by striking ``section 174(a) (relating to research and experimental expenditures)'' and inserting ``section 174A(a) (relating to domestic research or experimental expenditures)''. (5) Qualified small issue bonds.--Section 144(a)(4)(C)(iv) is amended by striking ``174(a)'' and inserting ``174A(a)''. (6) Start-up expenditures.--Section 195(c)(1) is amended by striking ``or 174'' in the last sentence and inserting ``174, or 174A''. (7) Capital expenditures.-- (A) Section 263(a)(1)(B) is amended by inserting ``or 174A'' after ``174''. (B) Section 263A(c)(2) is amended by inserting ``or 174A'' after ``174''. (8) Active business computer software royalties.--Section 543(d)(4)(A)(i) is amended by inserting ``174A,'' after ``174,''. (9) Source rules.--Section 864(g)(2) is amended-- [[Page S3817]] (A) by striking ``research and experimental expenditures within the meaning of section 174'' in the first sentence and inserting ``foreign research or experimental expenditures within the meaning of section 174 or domestic research or experimental expenditures within the meaning of section 174A'', and (B) in the last sentence-- (i) by striking ``treated as deferred expenses under subsection (b) of section 174'' and inserting ``allowed as an amortization deduction under section 174(a) or section 174A(c),'', and (ii) by striking ``such subsection'' and inserting ``such section (as the case may be)''. (10) Basis adjustment.--Section 1016(a)(14) is amended by striking ``deductions as deferred expenses under section 174(b)(1) (relating to research and experimental expenditures)'' and inserting ``deductions under section 174 or 174A(c)''. (11) Small business stock.--Section 1202(e)(2)(B) is amended by striking ``which may be treated as research and experimental expenditures under section 174'' and inserting ``which are treated as foreign research or experimental expenditures under section 174 or domestic research or experimental expenditures under section 174A''. (c) Change in Method of Accounting.-- (1) In general.--The amendments made by subsection (a) shall be treated as a change in method of accounting for purposes of section 481 of the Internal Revenue Code of 1986 and-- (A) such change shall be treated as initiated by the taxpayer, (B) such change shall be treated as made with the consent of the Secretary, and (C) such change shall be applied only on a cut-off basis for any domestic research or experimental expenditures (as defined in section 174A(b) of such Code (as added by this section) and determined by applying the rules of section 174A(d) of such Code) paid or incurred in taxable years beginning after December 31, 2024, and no adjustments under section 481(a) shall be made. (2) Special rules.--In the case of a taxable year which begins after December 31, 2024, and ends before the date of the enactment of this Act-- (A) paragraph (1)(C) shall not apply, and (B) the change in method of accounting under paragraph (1) shall be applied on a modified cut-off basis, taking into account for purposes of section 481(a) of such Code only the domestic research or experimental expenditures (as defined in section 174A(b) of such Code (as added by this section) and determined by applying the rules of section 174A(d) of such Code) paid or incurred in such taxable year but not allowed as a deduction in such taxable year. (d) Clerical Amendment.--The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 174 the following new item: ``Sec. 174A. Domestic research or experimental expenditures.''. (e) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection or subsection (f)(1), the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2024. (2) Treatment of foreign research or experimental expenditures upon disposition.-- (A) In general.--The amendment by subsection (b)(1)(C)(ii) shall apply to property disposed, retired, or abandoned after May 12, 2025. (B) No inference.--The amendment made by subsection (b)(1)(C)(ii) shall not be construed to create any inference with respect to the proper application of section 174(d) of the Internal Revenue Code of 1986 with respect to taxable years beginning before May 13, 2025. (3) Coordination with research credit.--The amendment made by subsection (b)(2)(B) shall apply to taxable years beginning after December 31, 2024. (4) No inference with respect to coordination with research credit for prior periods.--The amendment made by subsection (b)(2)(B) shall not be construed to create any inference with respect to the proper application of section 280C(c) of the Internal Revenue Code of 1986 with respect to taxable years beginning before January 1, 2025. (f) Transition Rules.-- (1) Election for retroactive application by certain small businesses.-- (A) In general.--At the election of an eligible taxpayer, paragraphs (1) and (3) of subsection (e) shall each be applied by substituting ``December 31, 2021'' for ``December 31, 2024''. An election made under this subparagraph shall be made in such manner as the Secretary may provide and not later than the date that is 1 year after the date of the enactment of this Act. The taxpayer shall file an amended return for each taxable year affected by such election. (B) Eligible taxpayer.--For purposes of this paragraph, the term ``eligible taxpayer'' means any taxpayer (other than a tax shelter prohibited from using the cash receipts and disbursements method of accounting under section 448(a)(3)) which meets the gross receipts test of section 448(c) for the first taxable year beginning after December 31, 2024. (C) Election treated as change in method of accounting.--In the case of any taxpayer which elects the application of subparagraph (A)-- (i) such election may be treated as a change in method of accounting for purposes of section 481 of such Code for the taxpayer's first taxable year affected by such election, (ii) such change shall be treated as initiated by the taxpayer for such taxable year, (iii) such change shall be treated as made with the consent of the Secretary, and (iv) subsection (c) shall not apply to such taxpayer. (D) Election regarding coordination with research credit.-- An election under section 280C(c)(2) of the Internal Revenue Code of 1986 (or revocation of such election) for any taxable year beginning after December 31, 2021, by an eligible taxpayer making an election under subparagraph (A) shall not fail to be treated as timely made (or as made on the return) if made during the 1-year period beginning on the date of the enactment of this Act on an amended return for such taxable year. (2) Election to deduct certain unamortized amounts paid or incurred in taxable years beginning before january 1, 2025.-- (A) In general.--In the case of any domestic research or experimental expenditures (as defined in section 174A, as added by subsection (a)) which are paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025, and which was charged to capital account, a taxpayer may elect-- (i) to deduct any remaining unamortized amount with respect to such expenditures in the first taxable year beginning after December 31, 2024, or (ii) to deduct such remaining unamortized amount with respect to such expenditures ratably over the 2-taxable year period beginning with the first taxable year beginning after December 31, 2024. (B) Change in method of accounting.--In the case of a taxpayer who makes an election under this paragraph-- (i) such taxpayer shall be treated as initiating a change in method of accounting for purposes of section 481 of the Internal Revenue Code of 1986 with respect to the expenditures to which the election applies, (ii) such change shall be treated as made with the consent of the Secretary, and (iii) such change shall be applied only on a cut-off basis for such expenditures and no adjustments under section 481(a) shall be made. (C) Regulations.--The Secretary of the Treasury (or the Secretary's delegate) shall publish such guidance or regulations as may be necessary to carry out the purposes of this paragraph, including regulations or guidance allowing for the deduction allowed under subparagraph (A) in the case of taxpayers with taxable years beginning after December 31, 2024, and ending before the date of the enactment of this Act. SEC. 70303. MODIFICATION OF LIMITATION ON BUSINESS INTEREST. (a) In General.--Section 163(j)(8)(A)(v) is amended by striking ``in the case of taxable years beginning before January 1, 2022,''. (b) Floor Plan Financing Applicable to Certain Trailers and Campers.--Section 163(j)(9)(C) is amended by adding at the end the following new flush sentence: ``Such term shall also include any trailer or camper which is designed to provide temporary living quarters for recreational, camping, or seasonal use and is designed to be towed by, or affixed to, a motor vehicle.''. (c) Effective Date and Special Rule.-- (1) In general.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. (2) Special rule for short taxable years.--The Secretary of the Treasury (or the Secretary's delegate) may prescribe such rules as are necessary or appropriate to provide for the application of the amendments made by this section in the case of any taxable year of less than 12 months that begins after December 31, 2024, and ends before the date of the enactment of this Act. SEC. 70304. EXTENSION AND ENHANCEMENT OF PAID FAMILY AND MEDICAL LEAVE CREDIT. (a) In General.--Section 45S is amended-- (1) in subsection (a)-- (A) by striking paragraph (1) and inserting the following: ``(1) In general.--For purposes of section 38, in the case of an eligible employer, the paid family and medical leave credit is an amount equal to either of the following (as elected by such employer): ``(A) The applicable percentage of the amount of wages paid to qualifying employees with respect to any period in which such employees are on family and medical leave. ``(B) If such employer has an insurance policy with regards to the provision of paid family and medical leave which is in force during the taxable year, the applicable percentage of the total amount of premiums paid or incurred by such employer during such taxable year with respect to such insurance policy.'', and (B) by adding at the end the following: ``(3) Rate of payment determined without regard to whether leave is taken.--For purposes of determining the applicable percentage with respect to paragraph (1)(B), the rate of payment under the insurance policy shall be determined without regard to whether any qualifying employees were on family and medical leave during the taxable year.'', (2) in subsection (b)(1), by striking ``credit allowed'' and inserting ``wages taken into account'', [[Page S3818]] (3) in subsection (c), by striking paragraphs (3) and (4) and inserting the following: ``(3) Aggregation rule.-- ``(A) In general.--Except as provided in subparagraph (B), all persons which are treated as a single employer under subsections (b) and (c) of section 414 shall be treated as a single employer. ``(B) Exception.-- ``(i) In general.--Subparagraph (A) shall not apply to any person who establishes to the satisfaction of the Secretary that such person has a substantial and legitimate business reason for failing to provide a written policy described in paragraph (1) or (2). ``(ii) Substantial and legitimate business reason.--For purposes of clause (i), the term `substantial and legitimate business reason' shall not include the operation of a separate line of business, the rate of wages or category of jobs for employees (or any similar basis), or the application of State or local laws relating to family and medical leave, but may include the grouping of employees of a common law employer. ``(4) Treatment of benefits mandated or paid for by state or local governments.--For purposes of this section, any leave which is paid by a State or local government or required by State or local law-- ``(A) except as provided in subparagraph (B), shall be taken into account in determining the amount of paid family and medical leave provided by the employer, and ``(B) shall not be taken into account in determining the amount of the paid family and medical leave credit under subsection (a).'', (4) in subsection (d)-- (A) in paragraph (1), by inserting ``(or, at the election of the employer, for not less than 6 months)'' after ``1 year or more'', (B) in paragraph (2)-- (i) by inserting ``, as determined on an annualized basis (pro-rata for part-time employees),'' after ``compensation'', and (ii) by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following: ``(3) is customarily employed for not less than 20 hours per week.'', and (5) by striking subsection (i). (b) No Double Benefit.--Section 280C(a) is amended-- (1) by striking ``45S(a)'' and inserting ``45S(a)(1)(A)'', and (2) by inserting after the first sentence the following: ``No deduction shall be allowed for that portion of the premiums paid or incurred for the taxable year which is equal to that portion of the paid family and medical leave credit which is determined for the taxable year under section 45S(a)(1)(B).''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70305. EXCEPTIONS FROM LIMITATIONS ON DEDUCTION FOR BUSINESS MEALS. (a) Exception to Denial of Deduction for Business Meals.-- Section 274(o), as added by section 13304 of Public Law 115- 97, is amended by striking ``No deduction'' and inserting ``Except in the case of an expense described in subsection (e)(8) or (n)(2)(C), no deduction''. (b) Meals Provided on Certain Fishing Boats and at Certain Fish Processing Facilities Not Subject to 50 Percent Limitation.--Section 274(n)(2)(C) of the Internal Revenue Code of 1986 is amended by striking ``or'' at the end of clause (iii) and by adding at the end the following new clause: ``(v) provided-- ``(I) on a fishing vessel, fish processing vessel, or fish tender vessel (as such terms are defined in section 2101 of title 46, United States Code), or ``(II) at a facility for the processing of fish for commercial use or consumption which-- ``(aa) is located in the United States north of 50 degrees north latitude, and ``(bb) is not located in a metropolitan statistical area (within the meaning of section 143(k)(2)(B)), or''. (c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred after December 31, 2025. SEC. 70306. INCREASED DOLLAR LIMITATIONS FOR EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS. (a) In General.--Section 179(b) is amended-- (1) in paragraph (1), by striking ``$1,000,000'' and inserting ``$2,500,000'', and (2) in paragraph (2), by striking ``$2,500,000'' and inserting ``$4,000,000''. (b) Conforming Amendments.--Section 179(b)(6)(A) is amended-- (1) by inserting ``(2025 in the case of the dollar amounts in paragraphs (1) and (2))'' after ``In the case of any taxable year beginning after 2018'', and (2) in clause (ii), by striking ``determined by substituting `calendar year 2017' for `calendar year 2016' in subparagraph (A)(ii) thereof.'' and inserting "determined by substituting in subparagraph (A)(ii) thereof-- `` ``(I) in the case of amounts in paragraphs (1) and (2), `calendar year 2024' for `calendar year 2016', and ``(II) in the case of the amount in paragraph (5)(A), `calendar year 2017' for `calendar year 2016'.''. (c) Effective Date.--The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2024. SEC. 70307. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED PRODUCTION PROPERTY. (a) In General.--Section 168 is amended by adding at the end the following new subsection: ``(n) Special Allowance for Qualified Production Property.-- ``(1) In general.--In the case of any qualified production property of a taxpayer making an election under this subsection-- ``(A) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 100 percent of the adjusted basis of the qualified production property, and ``(B) the adjusted basis of the qualified production property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year. ``(2) Qualified production property.--For purposes of this subsection-- ``(A) In general.--The term `qualified production property' means that portion of any nonresidential real property-- ``(i) to which this section applies, ``(ii) which is used by the taxpayer as an integral part of a qualified production activity, ``(iii) which is placed in service in the United States or any possession of the United States, ``(iv) the original use of which commences with the taxpayer, ``(v) the construction of which begins after January 19, 2025, and before January 1, 2029, ``(vi) which is designated by the taxpayer in the election made under this subsection, and ``(vii) which is placed in service before January 1, 2031. For purposes of clause (ii), in the case of property with respect to which the taxpayer is a lessor, property used by a lessee shall not be considered to be used by the taxpayer as part of a qualified production activity. ``(B) Special rule for certain property not previously used in qualified production activities.-- ``(i) In general.--In the case of property acquired by the taxpayer during the period described in subparagraph (A)(v), the requirements of clauses (iv) and (v) of subparagraph (A) shall be treated as satisfied if-- ``(I) such property was not used in a qualified production activity (determined without regard to the second sentence of subparagraph (D)) by any person at any time during the period beginning on January 1, 2021, and ending on May 12, 2025, ``(II) such property was not used by the taxpayer at any time prior to such acquisition, and ``(III) the acquisition of such property meets the requirements of paragraphs (2)(A), (2)(B), (2)(C), and (3) of section 179(d). ``(ii) Written binding contracts.--For purposes of determining under clause (i)-- ``(I) whether such property is acquired before the period described in subparagraph (A)(v), such property shall be treated as acquired not later than the date on which the taxpayer enters into a written binding contract for such acquisition, and ``(II) whether such property is acquired after such period, such property shall be treated as acquired not earlier than such date. ``(C) Exclusion of office space, etc.--The term `qualified production property' shall not include that portion of any nonresidential real property which is used for offices, administrative services, lodging, parking, sales activities, research activities, software development or engineering activities, or other functions unrelated to the manufacturing, production, or refining of tangible personal property. ``(D) Qualified production activity.--The term `qualified production activity' means the manufacturing, production, or refining of a qualified product. The activities of any taxpayer do not constitute manufacturing, production, or refining of a qualified product unless the activities of such taxpayer result in a substantial transformation of the property comprising the product. ``(E) Production.--The term `production' shall not include activities other than agricultural production and chemical production. ``(F) Qualified product.--The term `qualified product' means any tangible personal property if such property is not a food or beverage prepared in the same building as a retail establishment in which such property is sold. ``(G) Syndication.--For purposes of subparagraph (A)(iv), rules similar to the rules of subsection (k)(2)(E)(iii) shall apply. ``(H) Extension of placed in service date under certain circumstances.--The Secretary may extend the date under subparagraph (A)(vii) with respect to any property that meets the requirements of clauses (i) through (vi) of subparagraph (A) if the Secretary determines that an act of God (as defined in section 101(1) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980) prevents the taxpayer from placing such property in service before such date. ``(3) Deduction allowed in computing minimum tax.--For purposes of determining alternative minimum taxable income under section 55, the deduction under section 167 for qualified production property shall be determined under this section without regard to any adjustment under section 56. ``(4) Coordination with certain other provisions.-- ``(A) Other special depreciation allowances.--For purposes of subsections (k)(7), (l)(3)(D), and (m)(2)(B)(iii)-- [[Page S3819]] ``(i) qualified production property shall be treated as a separate class of property, and ``(ii) the taxpayer shall be treated as having made an election under such subsections with respect to such class. ``(B) Alternative depreciation property.--The term `qualified production property' shall not include any property to which the alternative depreciation system under subsection (g) applies. For purposes of subsection (g)(7)(A), qualified production property to which this subsection applies shall be treated as separate nonresidential real property. ``(5) Recapture.--If, at any time during the 10-year period beginning on the date that any qualified production property is placed in service by the taxpayer, such property ceases to be used as described in paragraph (2)(A)(ii) and is used by the taxpayer in a productive use not described in paragraph (2)(A)(ii)-- ``(A) section 1245 shall be applied-- ``(i) by treating such property as having been disposed of by the taxpayer as of the first time such property is so used in a productive use not described in paragraph (2)(A)(ii), and ``(ii) by treating the amount described in subparagraph (B) of section 1245(a)(1) with respect to such disposition as being not less than the amount described in subparagraph (A) of such section, and ``(B) the basis of the taxpayer in such property, and the taxpayer's allowance for depreciation with respect to such property, shall be appropriately adjusted to take into account amounts recognized by reason of subparagraph (A). ``(6) Election.-- ``(A) In general.--An election under this subsection for any taxable year shall-- ``(i) specify the nonresidential real property subject to the election and the portion of such property designated under paragraph (2)(A)(vi), and ``(ii) except as otherwise provided by the Secretary, be made on the taxpayer's return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may prescribe by regulations or other guidance. ``(B) Election.--Any election made under this subsection, and any specification contained in any such election, may not be revoked except with the consent of the Secretary (and the Secretary shall provide such consent only in extraordinary circumstances). ``(7) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance-- ``(A) providing rules for regarding what constitutes substantial transformation of property which are consistent with guidance provided under section 954(d), and ``(B) providing for the application of paragraph (5) with respect to a change in use described in such paragraph by a transferee following a fully or partially tax free transfer of qualified production property.''. (b) Treatment of Qualified Production Property as Section 1245 Property.--Section 1245(a)(3) is amended by striking ``or'' at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting ``, or'', and by adding at the end the following new subparagraph: ``(G) any qualified production property (as defined in section 168(n)(2)).''. (c) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. SEC. 70308. ENHANCEMENT OF ADVANCED MANUFACTURING INVESTMENT CREDIT. (a) In General.--Section 48D(a) is amended by striking ``25 percent'' and inserting ``35 percent''. (b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2025. SEC. 70309. SPACEPORTS ARE TREATED LIKE AIRPORTS UNDER EXEMPT FACILITY BOND RULES. (a) In General.--Section 142(a)(1) is amended to read as follows: ``(1) airports and spaceports,''. (b) Treatment of Ground Leases.--Section 142(b)(1) is amended by adding at the end the following new subparagraph: ``(C) Special rule for spaceport ground leases.--For purposes of subparagraph (A), spaceport property located on land leased by a governmental unit from the United States shall not fail to be treated as owned by a governmental unit if the requirements of this paragraph are met by the lease and any subleases of the property.''. (c) Definition of Spaceport.--Section 142 is amended by adding at the end the following new subsection: ``(p) Spaceport.-- ``(1) In general.--For purposes of subsection (a)(1), the term `spaceport' means any facility located at or in close proximity to a launch site or reentry site used for-- ``(A) manufacturing, assembling, or repairing spacecraft, space cargo, other facilities described in this paragraph, or any component of the foregoing, ``(B) flight control operations, ``(C) providing launch services and reentry services, or ``(D) transferring crew, spaceflight participants, or space cargo to or from spacecraft. ``(2) Additional terms.--For purposes of paragraph (1)-- ``(A) Space cargo.--The term `space cargo' includes satellites, scientific experiments, other property transported into space, and any other type of payload, whether or not such property returns from space. ``(B) Spacecraft.--The term `spacecraft' means a launch vehicle or a reentry vehicle. ``(C) Other terms.--The terms `launch site', `crew', `space flight participant', `launch services', `launch vehicle', `payload', `reentry services', `reentry site', a `reentry vehicle' shall have the respective meanings given to such terms by section 50902 of title 51, United States Code (as in effect on the date of enactment of this subsection). ``(3) Public use requirement.--Notwithstanding any other provision of law, a facility shall not be required to be available for use by the general public to be treated as a spaceport for purposes of this section. ``(4) Manufacturing facilities and industrial parks allowed.--With respect to spaceports, subsection (c)(2)(E) shall not apply to spaceport property described in paragraph (1)(A).''. (d) Exception From Federally Guaranteed Bond Prohibition.-- Section 149(b)(3) is amended by adding at the end the following new subparagraph: ``(F) Exception for spaceports.--A bond shall not be treated as federally guaranteed merely because of the payment of rent, user fees, or other charges by the United States (or any agency or instrumentality thereof) in exchange for the use of the spaceport by the United States (or any agency or instrumentality thereof).''. (e) Conforming Amendment.--The heading for section 142(c) is amended by inserting ``Spaceports,'' after ``Airports,''. (f) Effective Date.--The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. Subchapter B--Permanent America-first International Tax Reforms PART I--FOREIGN TAX CREDIT SEC. 70311. MODIFICATIONS RELATED TO FOREIGN TAX CREDIT LIMITATION. (a) Rules for Allocation of Certain Deductions to Foreign Source Net CFC Tested Income for Purposes of Foreign Tax Credit Limitation.--Section 904(b) is amended by adding at the end the following new paragraph: ``(5) Deductions treated as allocable to foreign source net cfc tested income.--Solely for purposes of the application of subsection (a) with respect to amounts described in subsection (d)(1)(A), the taxpayer's taxable income from sources without the United States shall be determined by allocating and apportioning-- ``(A) any deduction allowed under section 250(a)(1)(B) (and any deduction allowed under section 164(a)(3) for taxes imposed on amounts described in section 250(a)(1)(B)) to such income, ``(B) no amount of interest expense or research and experimental expenditures to such income, and ``(C) any other deduction to such income only if such deduction is directly allocable to such income. Any amount or deduction which would (but for subparagraphs (B) and (C)) have been allocated or apportioned to such income shall only be allocated or apportioned to income which is from sources within the United States.''. (b) Other Modifications.-- (1) Section 904(d)(2)(H)(i) is amended by striking ``paragraph (1)(B)'' and inserting ``paragraph (1)(D)''. (2) Section 904(d)(4)(C)(ii) is amended by striking ``paragraph (1)(A)'' and inserting ``paragraph (1)(C)''. (3) Section 951A(f)(1)(A) is amended by striking ``904(h)(1)'' and inserting ``904(h)''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70312. MODIFICATIONS TO DETERMINATION OF DEEMED PAID CREDIT FOR TAXES PROPERLY ATTRIBUTABLE TO TESTED INCOME. (a) Increase in Deemed Paid Credit.-- (1) In general.--Section 960(d)(1) is amended by striking ``80 percent'' and inserting ``90 percent''. (2) Gross up for deemed paid foreign tax credit.--Section 78 is amended-- (A) by striking ``subsections (a), (b), and (d)'' and inserting ``subsections (a) and (d)'', and (B) by striking ``80 percent'' and inserting ``90 percent''. (b) Disallowance of Foreign Tax Credit With Respect to Distributions of Previously Taxed Net CFC Tested Income.-- Section 960(d) is amended by adding at the end the following new paragraph: ``(4) Disallowance of foreign tax credit with respect to distributions of previously taxed net cfc tested income.--No credit shall be allowed under section 901 for 10 percent of any foreign income taxes paid or accrued (or deemed paid under subsection (b)(1)) with respect to any amount excluded from gross income under section 959(a) by reason of an inclusion in gross income under section 951A(a).''. (c) Effective Dates.-- (1) In general.--The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2025. (2) Disallowance.--The amendment made by subsection (b) shall apply to amounts distributed after June 28, 2025. [[Page S3820]] SEC. 70313. SOURCING CERTAIN INCOME FROM THE SALE OF INVENTORY PRODUCED IN THE UNITED STATES. (a) In General.--Section 904(b), as amended by section 70311, is amended by adding at the end the following new paragraph: ``(6) Source rules for certain inventory produced in the united states and sold through foreign branches.--For purposes of this section, if a United States person maintains an office or other fixed place of business in a foreign country (determined under rules similar to the rules of section 864(c)(5)), the portion of income which-- ``(A) is from the sale or exchange outside the United States of inventory property (within the meaning of section 865(i)(1))-- ``(i) which is produced in the United States, ``(ii) which is for use outside the United States, and ``(iii) to which the third sentence of section 863(b) applies, and ``(B) is attributable (determined under rules similar to the rules of section 864(c)(5)) to such office or other fixed place of business, shall be treated as from sources without the United States, except that the amount so treated shall not exceed 50 percent of the income from the sale or exchange of such inventory property.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. PART II--FOREIGN-DERIVED DEDUCTION ELIGIBLE INCOME AND NET CFC TESTED INCOME SEC. 70321. MODIFICATION OF DEDUCTION FOR FOREIGN-DERIVED DEDUCTION ELIGIBLE INCOME AND NET CFC TESTED INCOME. (a) In General.--Section 250(a) is amended-- (1) by striking ``37.5 percent'' in paragraph (1)(A) and inserting ``33.34 percent'', (2) by striking ``50 percent'' in paragraph (1)(B) and inserting ``40 percent'', and (3) by striking paragraph (3). (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70322. DETERMINATION OF DEDUCTION ELIGIBLE INCOME. (a) Sales or Other Dispositions of Certain Property.-- (1) In general.--Section 250(b)(3)(A)(i) is amended-- (A) by striking ``and'' at the end of subclause (V), (B) by striking ``over'' at the end of subclause (VI) and inserting ``and'', and (C) by adding at the end the following new subclause: ``(VII) except as otherwise provided by the Secretary, any income and gain from the sale or other disposition (including pursuant to a transaction subject to section 367(d)) of-- ``(aa) intangible property (as defined in section 367(d)(4)), and ``(bb) any other property of a type that is subject to depreciation, amortization, or depletion by the seller, over''. (2) Conforming amendment.--Section 250(b)(5)(E) is amended by inserting ``(other than paragraph (3)(A)(i)(VII))'' after ``For purposes of this subsection''. (3) Effective date.--The amendments made by this subsection shall apply to sales or other dispositions (including pursuant to a transaction subject to section 367(d) of the Internal Revenue Code of 1986) occurring after June 16, 2025. (b) Expense Apportionment Limited to Properly Allocable Expenses.-- (1) In general.--Section 250(b)(3)(A)(ii) is amended to read as follows: ``(ii) expenses and deductions (including taxes), other than interest expense and research or experimental expenditures, properly allocable to such gross income.''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2025. SEC. 70323. RULES RELATED TO DEEMED INTANGIBLE INCOME. (a) Taxation of Net CFC Tested Income.-- (1) In general.--Section 951A(a) is amended by striking ``global intangible low-taxed income'' and inserting ``net CFC tested income''. (2) Repeal of tax-free deemed return on foreign investments.--Section 951A, as amended by the preceding provisions of this Act, is amended by striking subsections (b) and (d) and by redesignating subsections (c), (e), and (f) as subsections (b), (c), and (d), respectively. (3) Conforming amendments.-- (A)(i) Section 250 is amended by striking ``global intangible low-taxed income'' each place it appears in subsections (a)(1)(B)(i), (a)(2), and (b)(3)(A)(i)(II) and inserting ``net CFC tested income''. (ii) The heading for section 250 of such Code is amended by striking ``global intangible low-taxed income'' and inserting ``net cfc tested income''. (iii) The item relating to section 250 in the table of sections for part VII of subchapter B of chapter 1 of such Code is amended by striking ``global intangible low-taxed income'' and inserting ``net CFC tested income''. (B) Section 951A(c)(1), as redesignated by paragraph (2), is amended by striking ``subsections (b), (c)(1)(A), and (c)(1)(B)'' and inserting ``subsections (b)(1)(A) and (b)(1)(B)''. (C) Section 951A(d), as redesignated by paragraph (2), is amended-- (i) by striking ``global intangible low-taxed income'' each place it appears and inserting ``net CFC tested income'', and (ii) by striking ``subsection (c)(1)(A)'' in paragraph (2)(B)(ii) and inserting ``subsection (b)(1)(A)''. (D) Section 960(d)(2) is amended-- (i) by striking ``global intangible low-taxed income'' in subparagraph (A) and inserting ``net CFC tested income'', and (ii) by striking ``section 951A(c)(1)(A)'' in subparagraph (B) and inserting ``section 951A(b)(1)(A)''. (E)(i) The heading for section 951A is amended by striking ``global intangible low-taxed income'' and inserting ``net cfc tested income''. (ii) The item relating to section 951A in the table of sections for subpart F of part III of subchapter N of chapter 1 is amended by striking ``Global intangible low-taxed income'' and inserting ``Net CFC tested income''. (b) Deduction for Foreign-derived Deduction Eligible Income.-- (1) In general.--Section 250(a)(1)(A) is amended by striking ``foreign-derived intangible income'' and inserting ``foreign-derived deduction eligible income''. (2) Conforming amendments.-- (A) Section 250(a)(2) is amended by striking ``foreign- derived intangible income'' each place it appears and inserting ``foreign-derived deduction eligible income''. (B) Section 250(b), as amended by subsection (a), is amended-- (i) by striking paragraphs (1) and (2), (ii) by redesignating paragraphs (4) and (5) as paragraphs (1) and (2), respectively, and by moving such paragraphs before paragraph (3), (iii) in paragraph (2)(B)(ii), as so redesignated, by striking ``paragraph (4)(B)'' and inserting ``paragraph (1)(B)'', and (iv) by striking ``Intangible'' in the heading thereof and inserting ``Deduction Eligible''. (C)(i) The heading for section 250 is amended by striking ``intangible'' in the heading thereof and inserting ``deduction eligible''. (ii) The heading for section 172(d)(9) is amended by striking ``intangible'' and inserting ``deduction eligible''. (iii) The item relating to section 250 in the table of sections for part VIII of subchapter B of chapter 1 is amended by striking ``intangible'' and inserting ``deduction eligible''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART III--BASE EROSION MINIMUM TAX SEC. 70331. EXTENSION AND MODIFICATION OF BASE EROSION MINIMUM TAX AMOUNT. (a) In General.--Section 59A(b) is amended-- (1) by striking ``10 percent'' in paragraph (1) and inserting ``10.5 percent'', and (2) by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (b) Conforming Amendments.-- (1) Section 59A(b)(1) is amended by striking ``Except as provided in paragraphs (2) and (3)'' and inserting ``Except as provided in paragraph (2)''. (2) Section 59A(b)(2), as redesignated by subsection (a)(2), is amended by striking ``the percentage otherwise in effect under paragraphs (1)(A) and (2)(A) shall each be increased'' and inserting ``the percentages otherwise in effect under paragraph (1)(A) shall be increased''. (3) Section 59A(e)(1)(C) is amended by striking ``in the case of a taxpayer described in subsection (b)(3)(B)'' and inserting ``in the case of a taxpayer described in subsection (b)(2)(B)''. (c) Other Modifications.-- (1) Section 59A(b)(2)(B)(ii), as redesignated by subsection (a)(2), is amended by striking ``registered securities dealer'' and inserting ``securities dealer registered''. (2) Section 59A(h)(2)(B) is amended by striking ``section 6038B(b)(2)'' and inserting ``section 6038A(b)(2)''. (3) Section 59A(i)(2) is amended-- (A) by striking ``subsection (g)'' and inserting ``subsection (h)'', and (B) by striking ``subsection (g)(3)'' and inserting ``subsection (h)(3)''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART IV--BUSINESS INTEREST LIMITATION SEC. 70341. COORDINATION OF BUSINESS INTEREST LIMITATION WITH INTEREST CAPITALIZATION PROVISIONS. (a) In General.--Section 163(j) is amended by redesignating paragraphs (10) and (11) as paragraphs (11) and (12) and by inserting after paragraph (9) the following: ``(10) Coordination with interest capitalization provisions.-- ``(A) In general.--In applying this subsection-- ``(i) the limitation under paragraph (1) shall apply to business interest without regard to whether the taxpayer would otherwise deduct such business interest or capitalize such business interest under an interest capitalization provision, and ``(ii) any reference in this subsection to a deduction for business interest shall be treated as including a reference to the capitalization of business interest. ``(B) Amount allowed applied first to capitalized interest.--The amount allowed after taking into account the limitation described in paragraph (1)-- [[Page S3821]] ``(i) shall be applied first to the aggregate amount of business interest which would otherwise be capitalized, and ``(ii) the remainder (if any) shall be applied to the aggregate amount of business interest which would be deducted. ``(C) Treatment of disallowed interest carried forward.--No portion of any business interest carried forward under paragraph (2) from any taxable year to any succeeding taxable year shall, for purposes of this title (including any interest capitalization provision which previously applied to such portion) be treated as interest to which an interest capitalization provision applies. ``(D) Interest capitalization provision.--For purposes of this section, the term `interest capitalization provision' means any provision of this subtitle under which interest-- ``(i) is required to be charged to capital account, or ``(ii) may be deducted or charged to capital account.''. (b) Certain Capitalized Interest Not Treated as Business Interest.--Section 163(j)(5) is amended by adding at the end the following new sentence: ``Such term shall not include any interest which is capitalized under section 263(g) or 263A(f).''. (c) Regulatory Authority.--Section 163(j), as amended by subsection (a), is amended by redesignating paragraphs (11) and (12) as paragraphs (12) and (13) and by inserting after paragraph (10) the following: ``(11) Regulatory authority.--The Secretary shall issue such regulations or guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or guidance to determine which business interest is taken into account under this subsection and section 59A(c)(3).''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70342. DEFINITION OF ADJUSTED TAXABLE INCOME FOR BUSINESS INTEREST LIMITATION. (a) In General.--Subparagraph (A) of section 163(j)(8) is amended-- (1) by striking ``and'' at the end of clause (iv), and (2) by adding at the end the following new clause: ``(vi) the amounts included in gross income under sections 951(a), 951A(a), and 78 (and the portion of the deductions allowed under sections 245A(a) (by reason of section 964(e)(4)) and 250(a)(1)(B) by reason of such inclusions), and''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART V--OTHER INTERNATIONAL TAX REFORMS SEC. 70351. PERMANENT EXTENSION OF LOOK-THRU RULE FOR RELATED CONTROLLED FOREIGN CORPORATIONS. (a) In General.--Section 954(c)(6)(C) is amended by striking ``and before January 1, 2026,''. (b) Effective Date.--The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025. SEC. 70352. REPEAL OF ELECTION FOR 1-MONTH DEFERRAL IN DETERMINATION OF TAXABLE YEAR OF SPECIFIED FOREIGN CORPORATIONS. (a) In General.--Section 898(c) is amended by striking paragraph (2) and redesignating paragraph (3) as paragraph (2). (b) Effective Date.--The amendments made by this section shall apply to taxable years of specified foreign corporations beginning after November 30, 2025. (c) Transition Rule.-- (1) In general.--In the case of a corporation that is a specified foreign corporation as of November 30, 2025, such corporation's first taxable year beginning after such date shall end at the same time as the first required year (within the meaning of section 898(c)(1) of the Internal Revenue Code of 1986) ending after such date. If any specified foreign corporation is required by the amendments made by this section to change its taxable year for its first taxable year beginning after November 30, 2025-- (A) such change shall be treated as initiated by such corporation, (B) such change shall be treated as having been made with the consent of the Secretary, and (C) the Secretary shall issue regulations or other guidance for allocating foreign taxes that are paid or accrued in such first taxable year and the succeeding taxable year among such taxable years in the manner the Secretary determines appropriate to carry out the purposes of this section. (2) Secretary.--For purposes of this subsection, the term ``Secretary'' means the Secretary of the Treasury or the Secretary's delegate. SEC. 70353. RESTORATION OF LIMITATION ON DOWNWARD ATTRIBUTION OF STOCK OWNERSHIP IN APPLYING CONSTRUCTIVE OWNERSHIP RULES. (a) In General.--Section 958(b) is amended-- (1) by inserting after paragraph (3) the following: ``(4) Subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States person.'', and (2) by striking ``Paragraph (1)'' in the last sentence and inserting ``Paragraphs (1) and (4)''. (b) Foreign Controlled United States Shareholders.--Subpart F of part III of subchapter N of chapter 1 is amended by inserting after section 951A the following new section: ``SEC. 951B. AMOUNTS INCLUDED IN GROSS INCOME OF FOREIGN CONTROLLED UNITED STATES SHAREHOLDERS. ``(a) In General.--In the case of any foreign controlled United States shareholder of a foreign controlled foreign corporation-- ``(1) this subpart (other than sections 951A, 951(b), and 957) shall be applied with respect to such shareholder (separately from, and in addition to, the application of this subpart without regard to this section)-- ``(A) by substituting `foreign controlled United States shareholder' for `United States shareholder' each place it appears therein, and ``(B) by substituting `foreign controlled foreign corporation' for `controlled foreign corporation' each place it appears therein, and ``(2) section 951A (and such other provisions of this subpart as provided by the Secretary) shall be applied with respect to such shareholder-- ``(A) by treating each reference to `United States shareholder' in such section as including a reference to such shareholder, and ``(B) by treating each reference to `controlled foreign corporation' in such section as including a reference to such foreign controlled foreign corporation. ``(b) Foreign Controlled United States Shareholder.--For purposes of this section, the term `foreign controlled United States shareholder' means, with respect to any foreign corporation, any United States person which would be a United States shareholder with respect to such foreign corporation if-- ``(1) section 951(b) were applied by substituting `more than 50 percent' for `10 percent or more', and ``(2) section 958(b) were applied without regard to paragraph (4) thereof. ``(c) Foreign Controlled Foreign Corporation.--For purposes of this section, the term `foreign controlled foreign corporation' means a foreign corporation, other than a controlled foreign corporation, which would be a controlled foreign corporation if section 957(a) were applied-- ``(1) by substituting `foreign controlled United States shareholders' for `United States shareholders', and ``(2) by substituting `section 958(b) (other than paragraph (4) thereof)' for `section 958(b)'. ``(d) Regulations.--The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance-- ``(1) to treat a foreign controlled United States shareholder or a foreign controlled foreign corporation as a United States shareholder or as a controlled foreign corporation, respectively, for purposes of provisions of this title other than this subpart (including any reporting requirement), and ``(2) with respect to the treatment of foreign controlled foreign corporations that are passive foreign investment companies (as defined in section 1297).''. (c) Clerical Amendment.--The table of sections for subpart F of part III of subchapter N of chapter 1 is amended by inserting after the item relating to section 951A the following new item: ``Sec. 951B. Amounts included in gross income of foreign controlled United States shareholders.''. (d) Effective Date.--The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025. (e) Special Rule.-- (1) In general.--Except to the extent provided by the Secretary of the Treasury (or the Secretary's delegate), the effective date of any amendment to the Internal Revenue Code of 1986 shall be applied by treating references to United States shareholders as references to foreign controlled United States shareholders, and by treating references to controlled foreign corporations as references to foreign controlled foreign corporations. (2) Definitions.--Any term used in paragraph (1) which is used in subpart F of part III of subchapter N of chapter 1 of the Internal Revenue Code of 1986 (as amended by this section) shall have the meaning given such term in such subpart. (f) No Inference.--The amendments made by this section shall not be construed to create any inference with respect to the proper application of any provision of the Internal Revenue Code of 1986 with respect to taxable years beginning before the taxable years to which such amendments apply. SEC. 70354. MODIFICATIONS TO PRO RATA SHARE RULES. (a) In General.--Subsection (a) of section 951 is amended to read as follows: ``(a) Amounts Included.-- ``(1) In general.--If a foreign corporation is a controlled foreign corporation at any time during a taxable year of the foreign corporation (in this subsection referred to as the `CFC year')-- ``(A) each United States shareholder which owns (within the meaning of section 958(a)) stock in such corporation on any day during the CFC year shall include in gross income such shareholder's pro rata share (determined under paragraph (2)) of the corporation's subpart F income for the CFC year, and ``(B) each United States shareholder which owns (within the meaning of section 958(a)) [[Page S3822]] stock in such corporation on the last day, in the CFC year, on which such corporation is a controlled foreign corporation shall include in gross income the amount determined under section 956 with respect to such shareholder for the CFC year (but only to the extent not excluded from gross income under section 959(a)(2)). ``(2) Pro rata share of subpart f income.--A United States shareholder's pro rata share of a controlled foreign corporation's subpart F income for a CFC year shall be the portion of such income which is attributable to-- ``(A) the stock of such corporation owned (within the meaning of section 958(a)) by such shareholder, and ``(B) any period of the CFC year during which-- ``(i) such shareholder owned (within the meaning of section 958(a)) such stock, ``(ii) such shareholder was a United States shareholder of such corporation, and ``(iii) such corporation was a controlled foreign corporation. ``(3) Taxable year of inclusion.--Any amount required to be included in gross income by a United States shareholder under paragraph (1) with respect to a CFC year shall be included in gross income for the shareholder's taxable year which includes the last day on which the shareholder owns (within the meaning of section 958(a)) stock in the controlled foreign corporation during such CFC year. ``(4) Regulatory authority.--The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance allowing taxpayers to elect, or requiring taxpayers, to close the taxable year of a controlled foreign corporation upon a direct or indirect disposition of stock of such corporation.''. (b) Coordination With Section 951A.--Section 951A(c), as redesignated by section 70323(a)(2), is amended-- (1) in paragraph (1), by striking ``in which or with which the taxable year of the controlled foreign corporation ends'' and inserting ``determined under section 951(a)(3)'', and (2) in paragraph (2), by striking ``the last day in the taxable year of such foreign corporation on which such foreign corporation is a controlled foreign corporation'' and inserting ``any day in such taxable year''. (c) Effective Dates.-- (1) In general.--The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025. (2) Transition rule for dividends.--A dividend paid (or deemed paid) by a controlled foreign corporation shall not be treated as a dividend for purposes of applying section 951(a)(2)(B) of the Internal Revenue Code of 1986 (as in effect before the amendments made by this section) if-- (A) such dividend-- (i) was paid (or deemed paid) on or before June 28, 2025, during the taxable year of such controlled foreign corporation which includes such date and the United States shareholder described in section 951(a)(1) of such Code (as so in effect) did not own (within the meaning of section 958(a) of such Code) the stock of such controlled foreign corporation during the portion of such taxable year on or before June 28, 2025, or (ii) was paid (or deemed paid) after June 28, 2025, and before such controlled foreign corporation's first taxable year beginning after December 31, 2025, and (B) such dividend does not increase the taxable income of a United States person (including by reason of a dividends received deduction, an exclusion from gross income, or an exclusion from subpart F income). CHAPTER 4--INVESTING IN AMERICAN FAMILIES, COMMUNITIES, AND SMALL BUSINESSES Subchapter A--Permanent Investments in Families and Children SEC. 70401. ENHANCEMENT OF EMPLOYER-PROVIDED CHILD CARE CREDIT. (a) Increase of Amount of Qualified Child Care Expenditures Taken Into Account.--Section 45F(a)(1) is amended by striking ``25 percent'' and inserting ``40 percent (50 percent in the case of an eligible small business)''. (b) Increase of Maximum Credit Amount.--Subsection (b) of section 45F is amended to read as follows: ``(b) Dollar Limitation.-- ``(1) In general.--The credit allowable under subsection (a) for any taxable year shall not exceed $500,000 ($600,000 in the case of an eligible small business). ``(2) Inflation adjustment.--In the case of any taxable year beginning after 2026, the $500,0000 and $600,000 amounts in paragraph (1) shall each be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof.''. (c) Eligible Small Business.--Section 45F(c) is amended by adding at the end the following new paragraph: ``(4) Eligible small business.--The term `eligible small business' means a business that meets the gross receipts test of section 448(c), determined-- ``(A) by substituting `5-taxable-year' for `3-taxable-year' in paragraph (1) thereof, and ``(B) by substituting `5-year' for `3-year' in paragraph (3)(A) thereof.''. (d) Credit Allowed for Third-party Intermediaries.--Section 45F(c)(1)(A)(iii) is amended by inserting ``, or under a contract with an intermediate entity that contracts with one or more qualified child care facilities to provide such child care services'' before the period at the end. (e) Treatment of Jointly Owned or Operated Child Care Facility.--Section 45F(c)(2) is amended by adding at the end the following new subparagraph: ``(C) Treatment of jointly owned or operated child care facility.--A facility shall not fail to be treated as a qualified child care facility of the taxpayer merely because such facility is jointly owned or operated by the taxpayer and other persons.''. (f) Regulations and Guidance.--Section 45F is amended by adding at the end the following new subsection: ``(g) Regulations and Guidance.--The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including guidance to carry out the purposes of paragraphs (1)(A)(iii) and (2)(C) of subsection (c).''. (g) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred after December 31, 2025. SEC. 70402. ENHANCEMENT OF ADOPTION CREDIT. (a) In General.--Section 23(a) is amended by adding at the end the following new paragraph: ``(4) Portion of credit refundable.--So much of the credit allowed under paragraph (1) as does not exceed $5,000 shall be treated as a credit allowed under subpart C and not as a credit allowed under this subpart.''. (b) Adjustments for Inflation.--Section 23(h) is amended to read as follows: ``(h) Adjustments for Inflation.-- ``(1) In general.--In the case of a taxable year beginning after December 31, 2002, each of the dollar amounts in paragraphs (3) and (4) of subsection (a) and paragraphs (1) and (2)(A)(i) of subsection (b) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2001' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(2) Rounding.--If any amount as increased under paragraph (1) is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10. ``(3) Special rule for refundable portion.--In the case of the dollar amount in subsection (a)(4), paragraph (1) shall be applied-- ``(A) by substituting `2025' for `2002' in the matter preceding subparagraph (A), and ``(B) by substituting `calendar year 2024' for `calendar year 2001' in subparagraph (B) thereof.''. (c) Exclusion of Refundable Portion of Credit From Carryforward.--Section 23(c)(1) is amended by striking ``credit allowable under subsection (a)'' and inserting ``portion of the credit allowable under subsection (a) which is allowed under this subpart''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70403. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF DETERMINING WHETHER A CHILD HAS SPECIAL NEEDS FOR PURPOSES OF THE ADOPTION CREDIT. (a) In General.--Section 23(d)(3) is amended-- (1) in subparagraph (A), by inserting ``or Indian tribal government'' after ``a State'', and (2) in subparagraph (B), by inserting ``or Indian tribal government'' after ``such State''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70404. ENHANCEMENT OF THE DEPENDENT CARE ASSISTANCE PROGRAM. (a) In General.--Section 129(a)(2)(A) is amended by striking ``$5,000 ($2,500'' and inserting ``$7,500 ($3,750''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70405. ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX CREDIT. (a) In General.--Paragraph (2) of section 21(a) is amended to read as follows: ``(2) Applicable percentage defined.--For purposes of paragraph (1), the term `applicable percentage' means 50 percent-- ``(A) reduced (but not below 35 percent) by 1 percentage point for each $2,000 or fraction thereof by which the taxpayer's adjusted gross income for the taxable year exceeds $15,000, and ``(B) further reduced (but not below 20 percent) by 1 percentage point for each $2,000 ($4,000 in the case of a joint return) or fraction thereof by which the taxpayer's adjusted gross income for the taxable year exceeds $75,000 ($150,000 in the case of a joint return).''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. [[Page S3823]] Subchapter B--Permanent Investments in Students and Reforms to Tax- exempt Institutions SEC. 70411. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP GRANTING ORGANIZATIONS. (a) Allowance of Credit for Contributions of Individuals to Scholarship Granting Organizations.-- (1) In general.--Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25E the following new section: ``SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION SCHOLARSHIPS. ``(a) Allowance of Credit.--In the case of an individual who is a citizen or resident of the United States (within the meaning of section 7701(a)(9)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the aggregate amount of qualified contributions made by the taxpayer during the taxable year. ``(b) Limitations.-- ``(1) In general.--The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed an amount equal to the greater of-- ``(A) 10 percent of the adjusted gross income of the taxpayer for the taxable year, or ``(B) $5,000. ``(2) Allocation of volume cap.--The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed the amount of the volume cap allocated by the Secretary to such taxpayer under subsection (h) with respect to qualified contributions made by the taxpayer during the taxable year. ``(3) Reduction based on state credit.--The amount allowed as a credit under subsection (a) for a taxable year shall be reduced by the amount allowed as a credit on any State tax return of the taxpayer for qualified contributions made by the taxpayer during the taxable year. ``(c) Definitions.--For purposes of this section-- ``(1) Eligible student.--The term `eligible student' means an individual who-- ``(A) is a member of a household with an income which, for the calendar year prior to the date of the application for a scholarship, is not greater than 300 percent of the area median gross income (as such term is used in section 42), and ``(B) is eligible to enroll in a public elementary or secondary school. ``(2) Qualified contribution.--The term `qualified contribution' means a charitable contribution (as defined by section 170(c)) to a scholarship granting organization in the form of cash or publicly traded securities (as defined in section 6050L(a)(2)(B)). ``(3) Qualified elementary or secondary education expense.--The term `qualified elementary or secondary education expense' means the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school: ``(A) Tuition. ``(B) Curriculum and curricular materials. ``(C) Books or other instructional materials. ``(D) Online educational materials. ``(E) Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor does not bear a relationship to the student which is described in section 152(d)(2) and-- ``(i) is licensed as a teacher in any State, ``(ii) has taught at-- ``(I) a public or private elementary or secondary school, or ``(II) an institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))), or ``(iii) is a subject matter expert in the relevant subject. ``(F) Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission. ``(G) Fees for dual enrollment in an institution of higher education. ``(H) Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies, but only if the practitioner or provider does not bear a relationship to the student which is described in section 152(d)(2). ``(4) Scholarship granting organization.--The term `scholarship granting organization' means any organization-- ``(A) which-- ``(i) is described in section 501(c)(3) and exempt from tax under section 501(a), and ``(ii) is not a private foundation, ``(B) substantially all of the activities of which are providing scholarships for qualified elementary or secondary education expenses of eligible students, ``(C) which prevents the co-mingling of qualified contributions with other amounts by maintaining one or more separate accounts exclusively for qualified contributions, ``(D) is approved to operate in the State in which such organization grants scholarships, and ``(E) which satisfies the requirements of subsection (d). ``(d) Requirements for Scholarship Granting Organizations.-- ``(1) In general.--An organization meets the requirements of this subsection if-- ``(A) such organization provides scholarships to 10 or more students who do not all attend the same school, ``(B) such organization spends not less than 90 percent of revenues on scholarships for eligible students, ``(C) such organization does not provide scholarships for any expenses other than qualified elementary or secondary education expenses, ``(D) such organization provides a scholarship to eligible students with a priority for-- ``(i) students awarded a scholarship the previous school year, and ``(ii) after application of clause (i), any eligible students who have a sibling who was awarded a scholarship from such organization, ``(E) such organization does not earmark or set aside contributions for scholarships on behalf of any particular student, ``(F) such organization-- ``(i) verifies the annual household income and family size of eligible students who apply for scholarships in a manner which complies with the requirement described in paragraph (2), and ``(ii) limits the awarding of scholarships to eligible students who are a member of a household for which the income does not exceed the amount established under subsection (c)(1)(A), ``(G) such organization-- ``(i) obtains from an independent certified public accountant annual financial and compliance audits, and ``(ii) certifies to the Secretary (at such time, and in such form and manner, as the Secretary may prescribe) that the audit described in clause (i) has been completed, and ``(H) no officer or board member of such organization has been convicted of a felony. ``(2) Income verification.--The requirement described in this paragraph is that the organization review all of the following documents which are applicable with respect to members of the household of the applicant for the calendar year prior to application for a scholarship: ``(A) Federal and State income tax returns or tax return transcripts with applicable schedules. ``(B) Income reporting statements for tax purposes or wage and income transcripts from the Internal Revenue Service. ``(C) Notarized income verification letter from employers. ``(D) Unemployment or workers compensation statements. ``(E) Benefit verification letters regarding public assistance payments and Supplemental Nutrition Assistance Program payments, including a list of household members. ``(3) Independent certified public accountant.--For purposes of paragraph (1)(F), the term `independent certified public accountant' means, with respect to an organization, a certified public accountant who is not a person described in section 465(b)(3)(A) with respect to such organization or any employee of such organization. ``(4) Prohibition on self-dealing.-- ``(A) In general.--A scholarship granting organization may not award a scholarship to-- ``(i) any disqualified person, or ``(ii) an eligible student if, during the taxable year or the period of the 3 taxable years preceding such taxable year, such scholarship granting organization has received a qualified contribution from an individual who bears a relationship to such student which is described in section 152(d)(2). ``(B) Disqualified person.--For purposes of this paragraph, a disqualified person shall be determined pursuant to rules similar to the rules of section 4946. ``(e) Denial of Double Benefit.--Any qualified contribution for which a credit is allowed under this section shall not be taken into account as a charitable contribution for purposes of section 170. ``(f) Carryforward of Unused Credit.-- ``(1) In general.--If the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section, section 23, and section 25D), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year. ``(2) Limitation.--No credit may be carried forward under this subsection to any taxable year following the fifth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis. ``(g) Rule of Construction.--Nothing in this section shall be construed to permit, allow, encourage, or authorize any Federal control over any aspect of any private or religious school. ``(h) Volume Cap.-- ``(1) In general.--The volume cap applicable under this section shall be $4,000,000,000 for calendar year 2027 and each calendar year thereafter. Such amount shall be allocated by the Secretary as provided in paragraph (2) to taxpayers with respect to qualified contributions made by such taxpayers, except that 10 percent of such amount shall be divided evenly among the States, and shall be available with respect to individuals residing in such States. [[Page S3824]] ``(2) First-come, first-served.--For purposes of applying the volume cap under this section, such volume cap for any calendar year shall be allocated by the Secretary on a first- come, first-served basis, as determined based on the time (during such calendar year) at which the taxpayer made the qualified contribution with respect to which the allocation is made. The Secretary shall not make any allocation of the volume cap for any calendar year after December 31 of such calendar year. ``(3) Real-time information.--For purposes of this section, the Secretary shall develop a system to track the amount of qualified contributions made during the calendar year for which a credit may be claimed under this section, with such information to be updated in real time. ``(4) State.--For purposes of this subsection, the term `State' means only the States and the District of Columbia. ``(i) Regulations and Guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance-- ``(1) providing for enforcement of the requirements under subsection (d)(4), and ``(2) with respect to recordkeeping or information reporting for purposes of administering the requirements of this section.''. (2) Conforming amendments.-- (A) Section 25(e)(1)(C) is amended by striking ``and 25D'' and inserting ``25D, and 25F''. (B) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25E the following new item: ``Sec. 25F. Qualified elementary and secondary education scholarships.''. (b) Exclusion From Gross Income for Scholarships for Qualified Elementary or Secondary Education Expenses of Eligible Students.-- (1) In general.--Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section: ``SEC. 139K. SCHOLARSHIPS FOR QUALIFIED ELEMENTARY OR SECONDARY EDUCATION EXPENSES OF ELIGIBLE STUDENTS. ``(a) In General.--In the case of an individual, gross income shall not include any amounts provided to such individual or any dependent of such individual pursuant to a scholarship for qualified elementary or secondary education expenses of an eligible student which is provided by a scholarship granting organization. ``(b) Definitions.--In this section, the terms `qualified elementary or secondary education expense', `eligible student', and `scholarship granting organization' have the same meaning given such terms under section 25F(c).''. (2) Conforming amendment.--The table of sections for part III of subchapter B of chapter 1 is amended by inserting before the item relating to section 140 the following new item: ``Sec. 139K. Scholarships for qualified elementary or secondary education expenses of eligible students.''. (c) Failure of Scholarship Granting Organizations to Make Distributions.-- (1) In general.--Chapter 42 is amended by adding at the end the following new subchapter: ``Subchapter I--Scholarship Granting Organizations ``Sec. 4969. Failure to distribute receipts. ``SEC. 4969. FAILURE TO DISTRIBUTE RECEIPTS. ``(a) In General.--In the case of any scholarship granting organization (as defined in section 25F) which has been determined by the Secretary to have failed to satisfy the requirement under subsection (b) for any taxable year, any contribution made to such organization during the first taxable year beginning after the date of such determination shall not be treated as a qualified contribution (as defined in section 25F(c)(2)) for purposes of section 25F. ``(b) Requirement.--The requirement described in this subsection is that the amount of receipts of the scholarship granting organization for the taxable year which are distributed before the distribution deadline with respect to such receipts shall not be less than the required distribution amount with respect to such taxable year. ``(c) Definitions.--For purposes of this section-- ``(1) Required distribution amount.-- ``(A) In general.--The required distribution amount with respect to a taxable year is the amount equal to 100 percent of the total receipts of the scholarship granting organization for such taxable year-- ``(i) reduced by the sum of such receipts that are retained for reasonable administrative expenses for the taxable year or are carried to the succeeding taxable year under subparagraph (C), and ``(ii) increased by the amount of the carryover under subparagraph (C) from the preceding taxable year. ``(B) Safe harbor for reasonable administrative expenses.-- For purposes of subparagraph (A)(i), if the percentage of total receipts of a scholarship granting organization for a taxable year which are used for administrative expenses is equal to or less than 10 percent, such expenses shall be deemed to be reasonable for purposes of such subparagraph. ``(C) Carryover.--With respect to the amount of the total receipts of a scholarship granting organization with respect to any taxable year, an amount not greater than 15 percent of such amount may, at the election of such organization, be carried to the succeeding taxable year. ``(2) Distributions.--The term `distribution' includes amounts which are formally committed but not distributed. A formal commitment described in the preceding sentence may include contributions set aside for eligible students for more than one year. ``(3) Distribution deadline.--The distribution deadline with respect to receipts for a taxable year is the first day of the third taxable year following the taxable year in which such receipts are received by the scholarship granting organization. ``(d) Regulations and Guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this section.''. (2) Clerical amendment.--The table of subchapters for chapter 42 is amended by adding at the end the following new item: ``subchapter i--scholarship granting organizations''. (d) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after December 31, 2026. (2) Exclusion from gross income.--The amendments made by subsection (b) shall apply to amounts received after December 31, 2026, in taxable years ending after such date. SEC. 70412. EXCLUSION FOR EMPLOYER PAYMENTS OF STUDENT LOANS. (a) In General.--Section 127(c)(1)(B) is amended by striking ``in the case of payments made before January 1, 2026,''. (b) Inflation Adjustment.--Section 127 is amended-- (1) by redesignating subsection (d) as subsection (e), and (2) by inserting after subsection (c) the following new subsection: ``(d) Inflation Adjustment.-- ``(1) In general.--In the case of any taxable year beginning after 2026, both of the $5,250 amounts in subsection (a)(2) shall each be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(2) Rounding.--If any increase under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.''. (c) Effective Date.--The amendment made by this section shall apply to payments made after December 31, 2025. SEC. 70413. ADDITIONAL EXPENSES TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 ACCOUNTS. (a) In General.-- (1) In general.--Section 529(c)(7) is amended to read as follows: ``(7) Treatment of elementary and secondary tuition.--Any reference in this section to the term `qualified higher education expense' shall include a reference to the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school: ``(A) Tuition. ``(B) Curriculum and curricular materials. ``(C) Books or other instructional materials. ``(D) Online educational materials. ``(E) Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and-- ``(i) is licensed as a teacher in any State, ``(ii) has taught at an eligible educational institution, or ``(iii) is a subject matter expert in the relevant subject. ``(F) Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission. ``(G) Fees for dual enrollment in an institution of higher education. ``(H) Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies.''. (2) Effective date.--The amendment made by this subsection shall apply to distributions made after the date of the enactment of this Act. (b) Increase in Limitation.-- (1) In general.--The last sentence of section 529(e)(3) is amended by striking ``$10,000'' and inserting ``$20,000''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2025. [[Page S3825]] SEC. 70414. CERTAIN POSTSECONDARY CREDENTIALING EXPENSES TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 ACCOUNTS. (a) In General.--Section 529(e)(3) is amended by adding at the end the following new subparagraph: ``(C) Certain postsecondary credentialing expenses.--The term `qualified higher education expenses' includes qualified postsecondary credentialing expenses (as defined in subsection (f)).''. (b) Qualified Postsecondary Credentialing Expenses.-- Section 529 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: ``(f) Qualified Postsecondary Credentialing Expenses.--For purposes of this section-- ``(1) In general.--The term `qualified postsecondary credentialing expenses' means-- ``(A) tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary in a recognized postsecondary credential program, or any other expense incurred in connection with enrollment in or attendance at a recognized postsecondary credential program if such expense would, if incurred in connection with enrollment or attendance at an eligible educational institution, be covered under subsection (e)(3)(A), ``(B) fees for testing if such testing is required to obtain or maintain a recognized postsecondary credential, and ``(C) fees for continuing education if such education is required to maintain a recognized postsecondary credential. ``(2) Recognized postsecondary credential program.--The term `recognized postsecondary credential program' means any program to obtain a recognized postsecondary credential if-- ``(A) such program is included on a State list prepared under section 122(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(d)), ``(B) such program is listed in the public directory of the Web Enabled Approval Management System (WEAMS) of the Veterans Benefits Administration, or successor directory such program, ``(C) an examination (developed or administered by an organization widely recognized as providing reputable credentials in the occupation) is required to obtain or maintain such credential and such organization recognizes such program as providing training or education which prepares individuals to take such examination, or ``(D) such program is identified by the Secretary, after consultation with the Secretary of Labor, as being a reputable program for obtaining a recognized postsecondary credential for purposes of this subparagraph. ``(3) Recognized postsecondary credential.--The term `recognized postsecondary credential' means-- ``(A) any postsecondary employment credential that is industry recognized and is-- ``(i) any postsecondary employment credential issued by a program that is accredited by the Institute for Credentialing Excellence, the National Commission on Certifying Agencies, or the American National Standards Institute, ``(ii) any postsecondary employment credential that is included in the Credentialing Opportunities On-Line (COOL) directory of credentialing programs (or successor directory) maintained by the Department of Defense or by any branch of the Armed Forces, or ``(iii) any postsecondary employment credential identified for purposes of this clause by the Secretary, after consultation with the Secretary of Labor, as being industry recognized, ``(B) any certificate of completion of an apprenticeship that is registered and certified with the Secretary of Labor under the Act of August 16, 1937 (commonly known as the `National Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), ``(C) any occupational or professional license issued or recognized by a State or the Federal Government (and any certification that satisfies a condition for obtaining such a license), and ``(D) any recognized postsecondary credential as defined in section 3(52) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(52)), provided through a program described in paragraph (2)(A).''. (c) Effective Date.--The amendments made by this section shall apply to distributions made after the date of the enactment of this Act. SEC. 70415. MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME OF CERTAIN PRIVATE COLLEGES AND UNIVERSITIES. (a) In General.--Section 4968 is amended to read as follows: ``SEC. 4968. EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE COLLEGES AND UNIVERSITIES. ``(a) Tax Imposed.--There is hereby imposed on each applicable educational institution for the taxable year a tax equal to the applicable percentage of the net investment income of such institution for the taxable year. ``(b) Applicable Percentage.--For purposes of this section, the term `applicable percentage' means-- ``(1) 1.4 percent in the case of an institution with a student adjusted endowment of at least $500,000, and not in excess of $750,000, ``(2) 4 percent in the case of an institution with a student adjusted endowment in excess of $750,000, and not in excess of $2,000,000, and ``(3) 8 percent in the case of an institution with a student adjusted endowment in excess of $2,000,000. ``(c) Applicable Educational Institution.--For purposes of this subchapter, the term `applicable educational institution' means an eligible educational institution (as defined in section 25A(f)(2))-- ``(1) which had at least 3,000 tuition-paying students during the preceding taxable year, ``(2) more than 50 percent of the tuition-paying students of which are located in the United States, ``(3) the student adjusted endowment of which is at least $500,000, and ``(4) which is not described in the first sentence of section 511(a)(2)(B) (relating to State colleges and universities). ``(d) Student Adjusted Endowment.--For purposes of this section, the term `student adjusted endowment' means, with respect to any institution for any taxable year-- ``(1) the aggregate fair market value of the assets of such institution (determined as of the end of the preceding taxable year), other than those assets which are used directly in carrying out the institution's exempt purpose, divided by ``(2) the number of students of such institution. ``(e) Determination of Number of Students.--For purposes of subsections (c) and (d), the number of students of an institution (including for purposes of determining the number of students at a particular location) shall be based on the daily average number of full-time students attending such institution (with part-time students taken into account on a full-time student equivalent basis). ``(f) Net Investment Income.--For purposes of this section-- ``(1) In general.--Net investment income shall be determined under rules similar to the rules of section 4940(c). ``(2) Override of certain regulatory exceptions.-- ``(A) Student loan interest.--Net investment income shall be determined by taking into account any interest income from a student loan made by the applicable educational institution (or any related organization) as gross investment income. ``(B) Federally-subsidized royalty income.-- ``(i) In general.--Net investment income shall be determined by taking into account any Federally-subsidized royalty income as gross investment income. ``(ii) Federally-subsidized royalty income.--For purposes of this subparagraph-- ``(I) In general.--The term `Federally-subsidized royalty income' means any otherwise-regulatory-exempt royalty income if any Federal funds were used in the research, development, or creation of the patent, copyright, or other intellectual or intangible property from which such royalty income is derived. ``(II) Otherwise-regulatory-exempt royalty income.--For purposes of this subparagraph, the term `otherwise- regulatory-exempt royalty income' means royalty income which (but for this subparagraph) would not be taken into account as gross investment income by reason of being derived from patents, copyrights, or other intellectual or intangible property which resulted from the work of students or faculty members in their capacities as such with the applicable educational institution. ``(III) Federal funds.--The term `Federal funds' includes any grant made by, and any payment made under any contract with, any Federal agency to the applicable educational institution, any related organization, or any student or faculty member referred to in subclause (II). ``(g) Assets and Net Investment Income of Related Organizations.-- ``(1) In general.--For purposes of subsections (d) and (f), assets and net investment income of any related organization with respect to an educational institution shall be treated as assets and net investment income, respectively, of the educational institution, except that-- ``(A) no such amount shall be taken into account with respect to more than 1 educational institution, and ``(B) unless such organization is controlled by such institution or is described in section 509(a)(3) with respect to such institution for the taxable year, assets and net investment income which are not intended or available for the use or benefit of the educational institution shall not be taken into account. ``(2) Related organization.--For purposes of this subsection, the term `related organization' means, with respect to an educational institution, any organization which-- ``(A) controls, or is controlled by, such institution, ``(B) is controlled by 1 or more persons which also control such institution, or ``(C) is a supported organization (as defined in section 509(f)(3)), or an organization described in section 509(a)(3), during the taxable year with respect to such institution. ``(h) Regulations.--The Secretary shall prescribe such regulations or other guidance as may be necessary to prevent avoidance of the tax under this section, including regulations or other guidance to prevent avoidance of such tax through the restructuring of endowment funds or other arrangements designed to reduce or eliminate the value of net investment income or assets subject to the tax imposed by this section.''. [[Page S3826]] (b) Requirement to Report Certain Information With Respect to Application of Excise Tax Based on Investment Income of Private Colleges and Universities.--Section 6033 is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection: ``(o) Requirement to Report Certain Information With Respect to Excise Tax Based on Investment Income of Private Colleges and Universities.--Each applicable educational institution described in section 4968(c) which is subject to the requirements of subsection (a) shall include on the return required under subsection (a)-- ``(1) the number of tuition-paying students taken into account under section 4968(c), and ``(2) the number of students of such institution (determined under the rules of section 4968(e)).''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70416. EXPANDING APPLICATION OF TAX ON EXCESS COMPENSATION WITHIN TAX-EXEMPT ORGANIZATIONS. (a) In General.--Section 4960(c)(2) is amended to read as follows: ``(2) Covered employee.--For purposes of this section, the term `covered employee' means any employee of an applicable tax-exempt organization (or any predecessor of such an organization) and any former employee of such an organization (or predecessor) who was such an employee during any taxable year beginning after December 31, 2016.''. (b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2025. Subchapter C--Permanent Investments in Community Development SEC. 70421. PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES. (a) Decennial Designations.-- (1) Determination period.--Section 1400Z-1(c)(2)(B) is amended by striking ``beginning on the date of the enactment of the Tax Cuts and Jobs Act'' and inserting ``beginning on the decennial determination date''. (2) Decennial determination date.--Section 1400Z-1(c)(2) is amended by adding at the end the following new subparagraph: ``(C) Decennial determination date.--The term `decennial determination date' means-- ``(i) July 1, 2026, and ``(ii) each July 1 of the year that is 10 years after the preceding decennial determination date under this subparagraph.''. (3) Repeal of special rule for puerto rico.--Section 1400Z- 1(b) is amended by striking paragraph (3). (4) Limitation on number of designations.--Section 1400Z- 1(d)(1) is amended-- (A) in paragraph (1)-- (i) by striking ``and subsection (b)(3)'', and (ii) by inserting ``during any period'' after ``the number of population census tracts in a State that may be designated as qualified opportunity zones under this section'', and (B) in paragraph (2), by inserting ``during any period'' before the period at the end. (5) Effective dates.-- (A) In general.--Except as provided in paragraph (2), the amendments made by this subsection shall take effect on the date of the enactment of this Act. (B) Puerto rico.--The amendment made by paragraph (3) shall take effect on December 31, 2026. (b) Qualification for Designations.-- (1) Determination of low-income communities.--Section 1400Z-1(c) is amended by striking all that precedes paragraph (2) and inserting the following: ``(c) Other Definitions.--For purposes of this section-- ``(1) Low-income communities.--The term `low-income community' means any population census tract if-- ``(A) such population census tract has a median family income that-- ``(i) in the case of a population census tract not located within a metropolitan area, does not exceed 70 percent of the statewide median family income, or ``(ii) in the case of a population census tract located within a metropolitan area, does not exceed 70 percent of the metropolitan area median family income, or ``(B) such population census tract-- ``(i) has a poverty rate of at least 20 percent, and ``(ii) has a median family income that-- ``(I) in the case of a population census tract not located within a metropolitan area, does not exceed 125 percent of the statewide median family income, or ``(II) in the case of a population census tract located within a metropolitan area, does not exceed 125 percent of the metropolitan area median family income.''. (2) Repeal of rule for contiguous census tracts.--Section 1400Z-1 is amended by striking subsection (e) and by redesignating subsection (f) as subsection (e). (3) Period for which designation is in effect.--Section 1400Z-1(e), as redesignated by paragraph (2), is amended to read as follows: ``(e) Period for Which Designation Is in Effect.-- ``(1) In general.--A designation as a qualified opportunity zone shall remain in effect for the period beginning on the applicable start date and ending on the day before the date that is 10 years after the applicable start date. ``(2) Applicable start date.--For purposes of this section, the term `applicable start date' means, with respect to any qualified opportunity zone designated under this section, the January 1 following the date on which such qualified opportunity zone was certified and designated by the Secretary under subsection (b)(1)(B).''. (4) Effective date.--The amendments made by this subsection shall apply to areas designated under section 1400Z-1 of the Internal Revenue Code of 1986 after the date of the enactment of this Act. (c) Application of Special Rules for Capital Gains.-- (1) Repeal of sunset on election.--Section 1400Z-2(a)(2) is amended to read as follows: ``(2) Election.--No election may be made under paragraph (1) with respect to a sale or exchange if an election previously made with respect to such sale or exchange is in effect.''. (2) Modification of rules for deferral of gain.--Section 1400Z-2(b) is amended to read as follows: ``(b) Deferral of Gain Invested in Opportunity Zone Property.-- ``(1) Year of inclusion.--Gain to which subsection (a)(1)(B) applies shall be included in gross income in the taxable year which includes the earlier of-- ``(A) the date on which such investment is sold or exchanged, or ``(B) the date which is 5 years after the date the investment in the qualified opportunity fund was made. ``(2) Amount includible.-- ``(A) In general.--The amount of gain included in gross income under subsection (a)(1)(B) shall be the excess of-- ``(i) the lesser of the amount of gain excluded under subsection (a)(1)(A) or the fair market value of the investment as determined as of the date described in paragraph (1), over ``(ii) the taxpayer's basis in the investment. ``(B) Determination of basis.-- ``(i) In general.--Except as otherwise provided in this subparagraph or subsection (c), the taxpayer's basis in the investment shall be zero. ``(ii) Increase for gain recognized under subsection (a)(1)(B).--The basis in the investment shall be increased by the amount of gain recognized by reason of subsection (a)(1)(B) with respect to such investment. ``(iii) Investments held for 5 years.-- ``(I) In general.--In the case of any investment held for at least 5 years, the basis of such investment shall be increased by an amount equal to 10 percent (30 percent in the case of any investment in a qualified rural opportunity fund) of the amount of gain deferred by reason of subsection (a)(1)(A). ``(II) Application of increase.--For purposes of this subsection, any increase in basis under this clause shall be treated as occurring before the date described in paragraph (1)(B). ``(C) Qualified rural opportunity fund.--For purposes of subparagraph (B)(iii)-- ``(i) Qualified rural opportunity fund.--The term `qualified rural opportunity fund' means a qualified opportunity fund that holds at least 90 percent of its assets in qualified opportunity zone property which-- ``(I) is qualified opportunity zone business property substantially all of the use of which, during substantially all of the fund's holding period for such property, was in a qualified opportunity zone comprised entirely of a rural area, or ``(II) is qualified opportunity zone stock, or a qualified opportunity zone partnership interest, in a qualified opportunity zone business in which substantially all of the tangible property owned or leased is qualified opportunity zone business property described in subsection (d)(3)(A)(i) and substantially all the use of which is in a qualified opportunity zone comprised entirely of a rural area. For purposes of the preceding sentence, property held in the fund shall be measured under rules similar to the rules of subsection (d)(1). ``(ii) Rural area.--The term `rural area' means any area other than-- ``(I) a city or town that has a population of greater than 50,000 inhabitants, and ``(II) any urbanized area contiguous and adjacent to a city or town described in subclause (I).''. (3) Special rule for investments held at least 10 years.-- Section 1400Z-2(c) is amended by striking ``makes an election under this clause'' and all that follows and inserting ``makes an election under this subsection, the basis of such investment shall be equal to-- ``(A) in the case of an investment sold before the date that is 30 years after the date of the investment, the fair market value of such investment on the date such investment is sold or exchanged, or ``(B) in any other case, the fair market value of such investment on the date that is 30 years after the date of the investment.''. (4) Determination of qualified opportunity zone property.-- (A) Qualified opportunity zone business property.--Section 1400Z-2(d)(2)(D)(i)(I) is amended by striking ``December 31, 2017'' and inserting ``the applicable start date (as defined in section 1400Z-1(e)(2)) with respect to the qualified opportunity zone described in subclause (III)''. (B) Qualified opportunity zone stock and partnership interests.--Section 1400Z-2(d)(2) is amended-- (i) by striking ``December 31, 2017,'' each place it appears in subparagraphs (B)(i)(I) [[Page S3827]] and (C)(i) and inserting ``the applicable date'', and (ii) by adding at the end the following new subparagraph: ``(E) Applicable date.--For purposes of this subparagraph, the term `applicable date' means, with respect to any corporation or partnership which is a qualified opportunity zone business, the earliest date described in subparagraph (D)(i)(I) with respect to the qualified opportunity zone business property held by such qualified opportunity zone business.''. (C) Special rule for improvement of existing structures in rural areas.--Section 1400Z-2(d)(2)(D)(ii) is amended by inserting ``(50 percent of such adjusted basis in the case of property in a qualified opportunity zone comprised entirely of a rural area (as defined in subsection (b)(2)(C)(ii))'' after ``the adjusted basis of such property''. (5) Effective dates.-- (A) In general.--Except as otherwise provided in this paragraph, the amendments made by this subsection shall apply to amounts invested in qualified opportunity funds after December 31, 2026. (B) Acquisition of qualified opportunity zone property.-- The amendments made by subparagraphs (A) and (B) of paragraph (4) shall apply to property acquired after December 31, 2026. (C) Substantial improvement.--The amendment made by paragraph (4)(C) shall take effect on the date of the enactment of this Act. (d) Information Reporting on Qualified Opportunity Funds and Qualified Rural Opportunity Funds.-- (1) Filing requirements for funds and investors.--Subpart A of part III of subchapter A of chapter 61 is amended by inserting after section 6039J the following new sections: ``SEC. 6039K. RETURNS WITH RESPECT TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS. ``(a) In General.--Every qualified opportunity fund shall file an annual return (at such time and in such manner as the Secretary may prescribe) containing the information described in subsection (b). ``(b) Information From Qualified Opportunity Funds.--The information described in this subsection is-- ``(1) the name, address, and taxpayer identification number of the qualified opportunity fund, ``(2) whether the qualified opportunity fund is organized as a corporation or a partnership, ``(3) the value of the total assets held by the qualified opportunity fund as of each date described in section 1400Z- 2(d)(1), ``(4) the value of all qualified opportunity zone property held by the qualified opportunity fund on each such date, ``(5) with respect to each investment held by the qualified opportunity fund in qualified opportunity zone stock or a qualified opportunity zone partnership interest-- ``(A) the name, address, and taxpayer identification number of the corporation in which such stock is held or the partnership in which such interest is held, as the case may be, ``(B) each North American Industry Classification System (NAICS) code that applies to the trades or businesses conducted by such corporation or partnership, ``(C) the population census tract or population census tracts in which the qualified opportunity zone business property of such corporation or partnership is located, ``(D) the amount of the investment in such stock or partnership interest as of each date described in section 1400Z-2(d)(1), ``(E) the value of tangible property held by such corporation or partnership on each such date which is owned by such corporation or partnership, ``(F) the value of tangible property held by such corporation or partnership on each such date which is leased by such corporation or partnership, ``(G) the approximate number of residential units (if any) for any real property held by such corporation or partnership, and ``(H) the approximate average monthly number of full-time equivalent employees of such corporation or partnership for the year (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such corporation or partnership as determined appropriate by the Secretary, ``(6) with respect to the items of qualified opportunity zone business property held by the qualified opportunity fund-- ``(A) the North American Industry Classification System (NAICS) code that applies to the trades or businesses in which such property is held, ``(B) the population census tract in which the property is located, ``(C) whether the property is owned or leased, ``(D) the aggregate value of the items of qualified opportunity zone property held by the qualified opportunity fund as of each date described in section 1400Z-2(d)(1), and ``(E) in the case of real property, the number of residential units (if any), ``(7) the approximate average monthly number of full-time equivalent employees for the year of the trades or businesses of the qualified opportunity fund in which qualified opportunity zone business property is held (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such trades or businesses as determined appropriate by the Secretary, ``(8) with respect to each person who disposed of an investment in the qualified opportunity fund during the year-- ``(A) the name, address, and taxpayer identification number of such person, ``(B) the date or dates on which the investment disposed was acquired, and ``(C) the date or dates on which any such investment was disposed and the amount of the investment disposed, and ``(9) such other information as the Secretary may require. ``(c) Statement Required to Be Furnished to Investors.-- Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return by reason of subsection (b)(8) (at such time and in such manner as the Secretary may prescribe) a written statement showing-- ``(1) the name, address, and phone number of the information contact of the person required to make such return, and ``(2) the information required to be shown on such return by reason of subsection (b)(8) with respect to the person whose name is required to be so set forth. ``(d) Definitions.--For purposes of this section-- ``(1) In general.--Any term used in this section which is also used in subchapter Z of chapter 1 shall have the meaning given such term under such subchapter. ``(2) Full-time equivalent employees.--The term `full-time equivalent employees' means, with respect to any month, the sum of-- ``(A) the number of full-time employees (as defined in section 4980H(c)(4)) for the month, plus ``(B) the number of employees determined (under rules similar to the rules of section 4980H(c)(2)(E)) by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 120. ``(e) Application to Qualified Rural Opportunity Funds.-- Every qualified rural opportunity fund (as defined in section 1400Z-2(b)(2)(C)) shall file the annual return required under subsection (a), and the statements required under subsection (c), applied-- ``(1) by substituting `qualified rural opportunity' for `qualified opportunity' each place it appears, ``(2) by substituting `section 1400Z-2(b)(2)(C)' for `section 1400Z-2(d)(1)' each place it appears, and ``(3) by treating any reference (after the application of paragraph (1)) to qualified rural opportunity zone stock, a qualified rural opportunity zone partnership interest, a qualified rural opportunity zone business, or qualified opportunity zone business property as stock, an interest, a business, or property, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z- 2(b)(2)(C)(i). ``SEC. 6039L. INFORMATION REQUIRED FROM QUALIFIED OPPORTUNITY ZONE BUSINESSES AND QUALIFIED RURAL OPPORTUNITY ZONE BUSINESSES. ``(a) In General.--Every applicable qualified opportunity zone business shall furnish to the qualified opportunity fund described in subsection (b) a written statement at such time, in such manner, and setting forth such information as the Secretary may by regulations prescribe for purposes of enabling such qualified opportunity fund to meet the requirements of section 6039K(b)(5). ``(b) Applicable Qualified Opportunity Zone Business.--For purposes of subsection (a), the term `applicable qualified opportunity zone business' means any qualified opportunity zone business-- ``(1) which is a trade or business of a qualified opportunity fund, ``(2) in which a qualified opportunity fund holds qualified opportunity zone stock, or ``(3) in which a qualified opportunity fund holds a qualified opportunity zone partnership interest. ``(c) Other Terms.--Any term used in this section which is also used in subchapter Z of chapter 1 shall have the meaning given such term under such subchapter. ``(d) Application to Qualified Rural Opportunity Businesses.--Every applicable qualified rural opportunity zone business (as defined in subsection (b) determined after application of the substitutions described in this sentence) shall furnish the written statement required under subsection (a), applied-- ``(1) by substituting `qualified rural opportunity' for `qualified opportunity' each place it appears, and ``(2) by treating any reference (after the application of paragraph (1)) to qualified rural opportunity zone stock, a qualified rural opportunity zone partnership interest, or a qualified rural opportunity zone business as stock, an interest, or a business, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z- 2(b)(2)(C)(i).''. (2) Penalties.-- (A) In general.--Part II of subchapter B of chapter 68 is amended by inserting after section 6725 the following new section: ``SEC. 6726. FAILURE TO COMPLY WITH INFORMATION REPORTING REQUIREMENTS RELATING TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS. ``(a) In General.--If any person required to file a return under section 6039K fails to file a complete and correct return under such [[Page S3828]] section in the time and in the manner prescribed therefor, such person shall pay a penalty of $500 for each day during which such failure continues. ``(b) Limitation.-- ``(1) In general.--The maximum penalty under this section on failures with respect to any 1 return shall not exceed $10,000. ``(2) Large qualified opportunity funds.--In the case of any failure described in subsection (a) with respect to a fund the gross assets of which (determined on the last day of the taxable year) are in excess of $10,000,000, paragraph (1) shall be applied by substituting `$50,000' for `$10,000'. ``(c) Penalty in Cases of Intentional Disregard.--If a failure described in subsection (a) is due to intentional disregard, then-- ``(1) subsection (a) shall be applied by substituting `$2,500' for `$500', ``(2) subsection (b)(1) shall be applied by substituting `$50,000' for `$10,000', and ``(3) subsection (b)(2) shall be applied by substituting `$250,000' for `$50,000'. ``(d) Inflation Adjustment.-- ``(1) In general.--In the case of any failure relating to a return required to be filed in a calendar year beginning after 2025, each of the dollar amounts in subsections (a), (b), and (c) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting `calendar year 2024' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(2) Rounding.-- ``(A) In general.--If the $500 dollar amount in subsection (a) and (c)(1) or the $2,500 amount in subsection (c)(1), after being increased under paragraph (1), is not a multiple of $10, such dollar amount shall be rounded to the next lowest multiple of $10. ``(B) Asset threshold.--If the $10,000,000 dollar amount in subsection (b)(2), after being increased under paragraph (1), is not a multiple of $10,000, such dollar amount shall be rounded to the next lowest multiple of $10,000. ``(C) Other dollar amounts.--If any dollar amount in subsection (b) or (c) (other than any amount to which subparagraph (A) or (B) applies), after being increased under paragraph (1), is not a multiple of $1,000, such dollar amount shall be rounded to the next lowest multiple of $1,000.''. (B) Information required to be sent to other taxpayers.-- Section 6724(d)(2), as amended by the preceding provisions of this Act, is amended-- (i) by striking ``or'' at the end of subparagraph (LL), (ii) by striking the period at the end of subparagraph (MM) and inserting a comma, and (iii) by inserting after subparagraph (MM) the following new subparagraphs: ``(NN) section 6039K(c) (relating to disposition of qualified opportunity fund investments), or ``(OO) section 6039L (relating to information required from certain qualified opportunity zone businesses and qualified rural opportunity zone businesses).''. (3) Electronic filing.--Section 6011(e) is amended by adding at the end the following new paragraph: ``(8) Qualified opportunity funds and qualified rural opportunity funds.--Notwithstanding paragraphs (1) and (2), any return filed by a qualified opportunity fund or qualified rural opportunity fund under section 6039K shall be filed on magnetic media or other machine-readable form.''. (4) Clerical amendments.-- (A) The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by inserting after the item relating to section 6039J the following new items: ``Sec. 6039K. Returns with respect to qualified opportunity funds and qualified rural opportunity funds. ``Sec. 6039L. Information required from qualified opportunity zone businesses and qualified rural opportunity zone businesses.''. (B) The table of sections for part II of subchapter B of chapter 68 is amended by inserting after the item relating to section 6725 the following new item: ``Sec. 6726. Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds.''. (5) Effective date.--The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act. (e) Secretary Reporting of Data on Opportunity Zone and Rural Opportunity Zone Tax Incentives.-- (1) In general.--In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2028, for necessary expenses of the Internal Revenue Service to make the reports described in paragraph (2). (2) Reports.--As soon as practical after the date of the enactment of this Act, and annually thereafter, the Secretary of the Treasury, or the Secretary's delegate (referred to in this section as the ``Secretary'') shall make publicly available a report on qualified opportunity funds. (3) Information included.--The report required under paragraph (2) shall include, to the extent available, the following information: (A) The number of qualified opportunity funds. (B) The aggregate dollar amount of assets held in qualified opportunity funds. (C) The aggregate dollar amount of investments made by qualified opportunity funds in qualified opportunity fund property, stated separately for each North American Industry Classification System (NAICS) code. (D) The percentage of population census tracts designated as qualified opportunity zones that have received qualified opportunity fund investments. (E) For each population census tract designated as a qualified opportunity zone, the approximate average monthly number of full-time equivalent employees of the qualified opportunity zone businesses in such qualified opportunity zone for the preceding 12-month period (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such qualified opportunity fund businesses as determined appropriate by the Secretary. (F) The percentage of the total amount of investments made by qualified opportunity funds in-- (i) qualified opportunity zone property which is real property; and (ii) other qualified opportunity zone property. (G) For each population census tract, the aggregate approximate number of residential units resulting from investments made by qualified opportunity funds in real property. (H) The aggregate dollar amount of investments made by qualified opportunity funds in each population census tract. (4) Additional information.-- (A) In general.--Beginning with the report submitted under paragraph (2) for the 6th year after the date of the enactment of this Act, the Secretary shall include in such report the impacts and outcomes of a designation of a population census tract as a qualified opportunity zone as measured by economic indicators, such as job creation, poverty reduction, new business starts, and other metrics as determined by the Secretary. (B) Semi-decennial information.-- (i) In general.--In the case of any report submitted under paragraph (2) in the 6th year or the 11th year after the date of the enactment of this Act, the Secretary shall include the following information: (I) For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) between the 5-year period ending on the date of the enactment of Public Law 115-97 and the most recent 5-year period for which data is available. (II) For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) for the most recent 5-year period for which data is available between such population census tracts and similar population census tracts that were not designated as a qualified opportunity zone. (ii) Control groups.--For purposes of clause (i), the Secretary may combine population census tracts into such groups as the Secretary determines appropriate for purposes of making comparisons. (iii) Factors listed.--The factors listed in this clause are the following: (I) The unemployment rate. (II) The number of persons working in the population census tract, including the percentage of such persons who were not residents in the population census tract in the preceding year. (III) Individual, family, and household poverty rates. (IV) Median family income of residents of the population census tract. (V) Demographic information on residents of the population census tract, including age, income, education, race, and employment. (VI) The average percentage of income of residents of the population census tract spent on rent annually. (VII) The number of residences in the population census tract. (VIII) The rate of home ownership in the population census tract. (IX) The average value of residential property in the population census tract. (X) The number of affordable housing units in the population census tract. (XI) The number of new business starts in the population census tract. (XII) The distribution of employees in the population census tract by North American Industry Classification System (NAICS) code. (5) Protection of identifiable return information.--In making reports required under this subsection, the Secretary-- (A) shall establish appropriate procedures to ensure that any amounts reported do not disclose taxpayer return information that can be associated with any particular taxpayer or competitive or proprietary information, and (B) if necessary to protect taxpayer return information, may combine information required with respect to individual population census tracts into larger geographic areas. (6) Definitions.--Any term used in this subsection which is also used in subchapter Z of chapter 1 of the Internal Revenue Code of 1986 shall have the meaning given such term under such subchapter. (7) Reports on qualified rural opportunity funds.--The Secretary shall make [[Page S3829]] publicly available, with respect to qualified rural opportunity funds, separate reports as required under this subsection, applied-- (A) by substituting ``qualified rural opportunity'' for ``qualified opportunity'' each place it appears, (B) by substituting a reference to this Act for ``Public Law 115-97'', and (C) by treating any reference (after the application of subparagraph (A)) to qualified rural opportunity zone stock, qualified rural opportunity zone partnership interest, qualified rural opportunity zone business, or qualified opportunity zone business property as stock, interest, business, or property, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z- 2(b)(2)(C)(i) of the Internal Revenue Code of 1986. SEC. 70422. PERMANENT ENHANCEMENT OF LOW-INCOME HOUSING TAX CREDIT. (a) Permanent State Housing Credit Ceiling Increase for Low-income Housing Credit.-- (1) In general.--Section 42(h)(3)(I) is amended-- (A) by striking ``2018, 2019, 2020, and 2021,'' and inserting ``beginning after December 31, 2025,'', (B) by striking ``1.125'' and inserting ``1.12'', and (C) by striking ``2018, 2019, 2020, and 2021'' in the heading and inserting ``calendar years after 2025''. (2) Effective date.--The amendments made by this subsection shall apply to calendar years beginning after December 31, 2025. (b) Tax-exempt Bond Financing Requirement.-- (1) In general.--Section 42(h)(4) is amended by striking subparagraph (B) and inserting the following: ``(B) Special rule where minimum percent of buildings is financed with tax-exempt bonds subject to volume cap.--For purposes of subparagraph (A), paragraph (1) shall not apply to any portion of the credit allowable under subsection (a) with respect to a building if-- ``(i) 50 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), or ``(ii)(I) 25 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), and ``(II) 1 or more of such obligations-- ``(aa) are part of an issue the issue date of which is after December 31, 2025, and ``(bb) provide the financing for not less than 5 percent of the aggregate basis of such building and the land on which the building is located.''. (2) Effective date.-- (A) In general.--The amendment made by this subsection shall apply to buildings placed in service in taxable years beginning after December 31, 2025. (B) Rehabilitation expenditures treated as separate new building.--In the case of any building with respect to which any expenditures are treated as a separate new building under section 42(e) of the Internal Revenue Code of 1986, for purposes of subparagraph (A), both the existing building and the separate new building shall be treated as having been placed in service on the date such expenditures are treated as placed in service under section 42(e)(4) of such Code. SEC. 70423. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT. (a) In General.--Section 45D(f)(1)(H) is amended by striking ``for for each of calendar years 2020 through 2025'' and inserting `` for each calendar year after 2019''. (b) Carryover of Unused Limitation.--Section 45D(f)(3) is amended-- (1) by striking ``If the'' and inserting the following: ``(A) In general.--If the'', and (2) by striking the second sentence and inserting the following: ``(B) Limitation.--No amount may be carried under subparagraph (A) to any calendar year afer the fifth calendar year after the calendar year in which the excess described in such subparagraph occurred. For purposes of this subparagraph, any excess described in subparagraph (A) with respect to any calendar year before 2026 shall be treated as occurring in calendar year 2025.''. (c) Effective Date.--The amendments made by this section shall apply to calendar years beginning after December 31, 2025. SEC. 70424. PERMANENT AND EXPANDED REINSTATEMENT OF PARTIAL DEDUCTION FOR CHARITABLE CONTRIBUTIONS OF INDIVIDUALS WHO DO NOT ELECT TO ITEMIZE. (a) In General.--Section 170(p) is amended-- (1) by striking ``$300 ($600'' and inserting ``$1,000 ($2,000'', and (2) by striking ``beginning in 2021''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70425. 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS. (a) In General.-- (1) In general.--Paragraph (1) of section 170(b) is amended by adding at the end the following new subparagraph: ``(I) 0.5-percent floor.--Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer's contribution base for the taxable year. The preceding sentence shall be applied-- ``(i) first, by taking into account charitable contributions to which subparagraph (D) applies to the extent thereof, ``(ii) second, by taking into account charitable contributions to which subparagraph (C) applies to the extent thereof, ``(iii) third, by taking into account charitable contributions to which subparagraph (B) applies to the extent thereof, ``(iv) fourth, by taking into account charitable contributions to which subparagraph (E) applies to the extent thereof, ``(v) fifth, by taking into account charitable contributions to which subparagraph (A) applies to the extent thereof, and ``(vi) sixth, by taking into account charitable contributions to which subparagraph (G) applies to the extent thereof.''. (2) Application of carryforward.--Paragraph (1) of section 170(d) is amended by adding at the end the following new subparagraph: ``(C) Contributions disallowed by 0.5-percent floor carried forward only from years in which limitation is exceeded.-- ``(i) In general.--In the case of any taxable year from which an excess is carried forward (determined without regard to this subparagraph) under any carryover rule, the applicable carryover rule shall be applied by increasing the excess determined under such applicable carryover rule for the contribution year (before the application of subparagraph (B)) by the amount attributable to the charitable contributions to which such rule applies which is not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I). ``(ii) Carryover rule.--For purposes of this subparagraph, the term `carryover rule' means-- ``(I) subparagraph (A) of this paragraph, ``(II) subparagraphs (C)(ii), (D)(ii), (E)(ii), and (G)(ii) of subsection (b)(1), and ``(III) the second sentence of subsection (b)(1)(B). ``(iii) Applicable carryover rule.--For purposes of this subparagraph, the term `applicable carryover rule' means any carryover rule applicable to charitable contributions which were (in whole or in part) not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I).''. (3) Coordination with deduction for nonitemizers.--Section 170(p), as amended by this Act, is further amended by inserting ``, (b)(1)(I),'' after ``subsections (b)(1)(G)(ii)''. (b) Modification of Limitation for Cash Contributions.-- (1) In general.--Clause (i) of section 170(b)(1)(G) is amended to read as follows: ``(i) In general.--For taxable years beginning after December 31, 2017, any contribution of cash to an organization described in subparagraph (A) shall be allowed as a deduction under subsection (a) to the extent that the aggregate of such contributions does not exceed the excess of-- ``(I) 60 percent of the taxpayer's contribution base for the taxable year, over ``(II) the aggregate amount of contributions taken into account under subparagraph (A) for such taxable year.''. (2) Coordination with other limitations.-- (A) In general.--Clause (iii) of section 170(b)(1)(G) is amended-- (i) by striking ``subparagraphs (a) and (b)'' in the heading and inserting ``subparagraph (a)'', and (ii) in subclause (II), by striking ``, and subparagraph (B)'' and all that follows through ``this subparagraph''. (B) Other contributions.--Subparagraph (B) of section 170(b)(1) is amended-- (i) by striking ``to which subparagraph (A)'' both places it appears and inserting ``to which subparagraph (A) or (G)'', and (ii) in clause (ii), by striking ``over the amount'' and all that follows through ``subparagraph (C)).'' and inserting ``over-- ``(I) the amount of charitable contributions allowable under subparagraph (A) (determined without regard to subparagraph (C)) and subparagraph (G), reduced by ``(II) so much of the contributions taken into account under subparagraph (G) as does not exceed 10 percent of the taxpayer's contribution base.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70426. 1-PERCENT FLOOR ON DEDUCTION OF CHARITABLE CONTRIBUTIONS MADE BY CORPORATIONS. (a) In General.--Section 170(b)(2)(A) is amended to read as follows: ``(A) In general.--Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section for any taxable year, other than any contribution to which subparagraph (B) or (C) applies, shall be allowed only to the extent that the aggregate of such contributions-- ``(i) exceeds 1 percent of the taxpayer's taxable income for the taxable year, and ``(ii) does not exceed 10 percent of the taxpayer's taxable income for the taxable year.''. (b) Application of Carryforward.--Section 170(d)(2) is amended to read as follows: ``(2) Corporations.-- ``(A) In general.--Any charitable contribution taken into account under subsection (b)(2)(A) for any taxable year which [[Page S3830]] is not allowed as a deduction by reason of clause (ii) thereof shall be taken into account as a charitable contribution for the succeeding taxable year, except that, for purposes of determining under this subparagraph whether such contribution is allowed in such succeeding taxable year, contributions in such succeeding taxable year (determined without regard to this paragraph) shall be taken into account under subsection (b)(2)(A) before any contribution taken into account by reason of this paragraph. ``(B) 5-year carryforward.--No charitable contribution may be carried forward under subparagraph (A) to any taxable year following the fifth taxable year after the taxable year in which the charitable contribution was first taken into account. For purposes of the preceding sentence, contributions shall be treated as allowed on a first-in first-out basis. ``(C) Contributions disallowed by 1-percent floor carried forward only from years in which 10 percent limitation is exceeded.--In the case of any taxable year from which a charitable contribution is carried forward under subparagraph (A) (determined without regard this subparagraph), subparagraph (A) shall be applied by substituting `clause (i) or (ii)' for `clause (ii)'. ``(D) Special rule for net operating loss carryovers.--The amount of charitable contributions carried forward under subparagraph (A) shall be reduced to the extent that such carryfoward would (but for this subparagraph) reduce taxable income (as computed for purposes of the second sentence of section 172(b)(2)) and increase a net operating loss carryover under section 172 to a succeeding taxable year.''. (c) Conforming Amendments.--Subparagraphs (B)(ii) and (C)(ii) of section 170(b)(2) are each amended by inserting ``other than subparagraph (C) thereof'' after ``subsection (d)(2)''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70427. PERMANENT INCREASE IN LIMITATION ON COVER OVER OF TAX ON DISTILLED SPIRITS. (a) In General.--Paragraph (1) of section 7652(f) is amended to read as follows: ``(1) $13.25, or''. (b) Effective Date.--The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2025. SEC. 70428. NONPROFIT COMMUNITY DEVELOPMENT ACTIVITIES IN REMOTE NATIVE VILLAGES. (a) In General.--For purposes of subchapter F of chapter 1 of the Internal Revenue Code of 1986, any activity substantially related to participation or investment in fisheries in the Bering Sea and Aleutian Islands statistical and reporting areas (as described in Figure 1 of section 679 of title 50, Code of Federal Regulations) carried on by an entity identified in section 305(i)(1)(D) of the Magnuson- Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in effect on the date of enactment of this section) shall be considered substantially related to the exercise or performance of the purpose constituting the basis of such entity's exemption under section 501(a) of such Code if the conduct of such activity is in furtherance of 1 or more of the purposes specified in section 305(i)(1)(A) of such Act (as so in effect). For purposes of this paragraph, activities substantially related to participation or investment in fisheries include the harvesting, processing, transportation, sales, and marketing of fish and fish products of the Bering Sea and Aleutian Islands statistical and reporting areas. (b) Application to Certain Wholly Owned Subsidiaries.--If the assets of a trade or business relating to an activity described in subsection (a) of any subsidiary wholly owned by an entity identified in section 305(i)(1)(D) of the Magnuson- Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in effect on the date of enactment of this section) are transferred to such entity (including in liquidation of such subsidiary) not later than 18 months after the date of the enactment of this Act-- (1) no gain or income resulting from such transfer shall be recognized to either such subsidiary or such entity under such Code, and (2) all income derived from such subsidiary from such transferred trade or business shall be exempt from taxation under such Code. (c) Effective Date.--This section shall take effect on the date of the enactment of this Act and shall remain effective during the existence of the western Alaska community development quota program established by Section 305(i)(1) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)), as amended. SEC. 70429. ADJUSTMENT OF CHARITABLE DEDUCTION FOR CERTAIN EXPENSES INCURRED IN SUPPORT OF NATIVE ALASKAN SUBSISTENCE WHALING. (a) In General.--Section 170(n)(1) of the Internal Revenue Code of 1986 is amended by striking ``$10,000'' and inserting ``$50,000''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70430. EXCEPTION TO PERCENTAGE OF COMPLETION METHOD OF ACCOUNTING FOR CERTAIN RESIDENTIAL CONSTRUCTION CONTRACTS. (a) In General.--Section 460(e) is amended-- (1) in paragraph (1)-- (A) by striking ``home construction contract'' both places it appears and inserting ``residential construction contract'', and (B) by inserting ``(determined by substituting `3-year' for `2-year' in subparagraph (B)(i) for any residential construction contract which is not a home construction contract)'' after ``the requirements of clauses (i) and (ii) of subparagraph (B)'', (2) by striking paragraph (4) and redesignating paragraph (5) as paragraph (4), and (3) in subparagraph (A) of paragraph (4), as so redesignated, by striking ``paragraph (4)'' and inserting ``paragraph (3)''. (b) Application of Exception for Purposes of Alternative Minimum Tax.--Section 56(a)(3) is amended by striking ``any home construction contract (as defined in section 460(e)(6))'' and inserting ``any residential construction contract (as defined in section 460(e)(4))''. (c) Effective Date.--The amendments made by this section shall apply to contracts entered into after the date of the enactment of this Act. Subchapter D--Permanent Investments in Small Business and Rural America SEC. 70431. EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION. (a) Phased Increase in Exclusion for Gain From Qualified Small Business Stock.-- (1) In general.--Section 1202(a)(1) is amended to read as follows: ``(1) In general.-- In the case of a taxpayer other than a corporation, gross income shall not include-- ``(A) except as provided in paragraphs (3) and (4), 50 percent of any gain from the sale or exchange of qualified small business stock acquired on or before the applicable date and held for more than 5 years, and ``(B) the applicable percentage of any gain from the sale or exchange of qualified small business stock acquired after the applicable date and held for at least 3 years.''. (2) Applicable percentage.--Section 1202(a) is amended by adding at the end the following new paragraph: ``(5) Applicable percentage.--The applicable percentage under paragraph (1) shall be determined under the following table: ``Years stock held: Applicable percentage: 3 years.........................................................50%.... 4 years.........................................................75%.... 5 years or more..............................................100%''.... (3) Applicable date; acquisition date.--Section 1202(a), as amended by paragraph (2), is amended by adding at the end the following new paragraph: ``(6) Applicable date; acquisition date.--For purposes of this section-- ``(A) Applicable date.--The term `applicable date' means the date of the enactment of this paragraph. ``(B) Acquisition date.--In the case of any stock which would (but for this paragraph) be treated as having been acquired before, on, or after the applicable date, whichever is applicable, the acquisition date for purposes of this section shall be the first day on which such stock was held by the taxpayer determined after the application of section 1223.''. (4) Continued treatment as not item of tax preference.-- (A) In general.--Section 57(a)(7) is amended by striking ``An amount'' and inserting ``In the case of stock acquired on or before the date of the enactment of the Creating Small Business Jobs Act of 2010, an amount''. (B) Conforming amendment.--Section 1202(a)(4) is amended-- (i) by striking ``, and'' at the end of subparagraph (B) and inserting a period, and (ii) by striking subparagraph (C). (5) Other conforming amendments.-- (A) Paragraphs (3)(A) and (4)(A) of section 1202(a) are each amended by striking ``paragraph (1)'' and inserting ``paragraph (1)(A)''. (B) Paragraph (4)(A) of section 1202(a) is amended by inserting ``and on or before the applicable date'' after ``2010''. (C) Sections 1202(b)(2), 1202(g)(2)(A), and 1202(j)(1)(A) are each amended by striking ``more than 5 years'' and inserting ``at least 3 years (more than 5 years in the case of stock acquired on or before the applicable date)''. (6) Effective dates.-- (A) In general.--Except as provided in subparagraph (B), the amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act. (B) Continued treatment as not item of tax preference.--The amendments made by paragraph (4) shall take effect as if included in the enactment of section 2011 of the Creating Small Business Jobs Act of 2010. (b) Increase in Per Issuer Limitation.-- (1) In general.--Subparagraph (A) of section 1202(b)(1) is amended to read as follows: ``(A) the applicable dollar limit for the taxable year, or''. (2) Applicable dollar limit.--Section 1202 (b) is amended by adding at the end the following: ``(4) Applicable dollar limit.--For purposes of paragraph (1)(A), the applicable dollar limit for any taxable year with respect to eligible gain from 1 or more dispositions by a taxpayer of qualified business stock of a corporation is-- ``(A) if such stock was acquired by the taxpayer on or before the applicable date, $10,000,000, reduced by the aggregate amount of eligible gain taken into account by the taxpayer under subsection (a) for prior taxable years and attributable to dispositions of stock issued by such corporation and acquired by the taxpayer before, on, or after the applicable date, and [[Page S3831]] ``(B) if such stock was acquired by the taxpayer after the applicable date, $15,000,000, reduced by the sum of-- ``(i) the aggregate amount of eligible gain taken into account by the taxpayer under subsection (a) for prior taxable years and attributable to dispositions of stock issued by such corporation and acquired by the taxpayer before, on, or after the applicable date, plus ``(ii) the aggregate amount of eligible gain taken into account by the taxpayer under subsection (a) for the taxable year and attributable to dispositions of stock issued by such corporation and acquired by the taxpayer on or before the applicable date. ``(5) Inflation adjustment.-- ``(A) In general.--In the case of any taxable year beginning after 2026, the $15,000,000 amount in paragraph (4)(B) shall be increased by an amount equal to -- ``(i) such dollar amount, multiplied by ``(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under this subparagraph is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000. ``(B) No increase once limit reached.--If, for any taxable year, the eligible gain attributable to dispositions of stock issued by a corporation and acquired by the taxpayer after the applicable date exceeds the applicable dollar limit, then notwithstanding any increase under subparagraph (A) for any subsequent taxable year, the applicable dollar limit for such subsequent taxable year shall be zero.''. (3) Separate returns.--Subparagraph (A) of section 1202(b)(3) is amended to read as follows: ``(A) Separate returns.--In the case of a separate return by a married individual for any taxable year-- ``(i) paragraph (4)(A) shall be applied by substituting `$5,000,000' for `$10,000,000', and ``(ii) paragraph (4)(B) shall be applied by substituting one-half of the dollar amount in effect under such paragraph for the taxable year for the amount so in effect.''. (4) Effective date.--The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act. (c) Increase in Limit in Aggregate Gross Assets.-- (1) In general.--Subparagraphs (A) and (B) of section 1202(d)(1) are each amended by striking ``$50,000,000'' and inserting ``$75,000,000''. (2) Inflation adjustment.--Section 1202(b) is amended by adding at the end the following: ``(4) Inflation adjustment.--In the case of any taxable year beginning after 2026, the $75,000,000 amounts in paragraphs (1)(A) and (1)(B) shall each be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under this paragraph is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000.''. (3) Effective date.--The amendments made by this subsection shall apply to stock issued after the date of the enactment of this Act. SEC. 70432. REPEAL OF REVISION TO DE MINIMIS RULES FOR THIRD PARTY NETWORK TRANSACTIONS. (a) Reinstatement of Exception for De Minimis Payments as in Effect Prior to Enactment of American Rescue Plan Act of 2021.-- (1) In general.--Section 6050W(e) is amended to read as follows: ``(e) Exception for De Minimis Payments by Third Party Settlement Organizations.--A third party settlement organization shall be required to report any information under subsection (a) with respect to third party network transactions of any participating payee only if-- ``(1) the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions exceeds $20,000, and ``(2) the aggregate number of such transactions exceeds 200.''. (2) Effective date.--The amendment made by this subsection shall take effect as if included in section 9674 of the American Rescue Plan Act. (b) Application of De Minimis Rule for Third Party Network Transactions to Backup Withholding.-- (1) In general.--Section 3406(b) is amended by adding at the end the following new paragraph: ``(8) Other reportable payments include payments in settlement of third party network transactions only where aggregate transactions exceed reporting threshold for the calendar year.-- ``(A) In general.--Any payment in settlement of a third party network transaction required to be shown on a return required under section 6050W which is made during any calendar year shall be treated as a reportable payment only if-- ``(i) the aggregate number of transactions with respect to the participating payee during such calendar year exceeds the number of transactions specified in section 6050W(e)(2), and ``(ii) the aggregate amount of transactions with respect to the participating payee during such calendar year exceeds the dollar amount specified in section 6050W(e)(1) at the time of such payment. ``(B) Exception if third party network transactions made in prior year were reportable.--Subparagraph (A) shall not apply with respect to payments to any participating payee during any calendar year if one or more payments in settlement of third party network transactions made by the payor to the participating payee during the preceding calendar year were reportable payments.''. (2) Effective date.--The amendment made by this subsection shall apply to calendar years beginning after December 31, 2024. SEC. 70433. INCREASE IN THRESHOLD FOR REQUIRING INFORMATION REPORTING WITH RESPECT TO CERTAIN PAYEES. (a) In General.--Section 6041(a) is amended by striking ``$600'' and inserting ``$2,000''. (b) Inflation Adjustment.--Section 6041 is amended by adding at the end the following new subsection: ``(h) Inflation Adjustment.--In the case of any calendar year after 2026, the dollar amount in subsection (a) shall be increased by an amount equal to-- ``(1) such dollar amount, multiplied by ``(2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.''. (c) Application to Reporting on Remuneration for Services.--Section 6041A(a)(2) is amended by striking ``is $600 or more'' and inserting ``equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)''. (d) Application to Backup Withholding.--Section 3406(b)(6) is amended-- (1) by striking ``$600'' in subparagraph (A) and inserting ``the dollar amount in effect for such calendar year under section 6041(a)'', and (2) by striking ``Only Where Aggregate for Calendar Year Is $600 or More'' in the heading and inserting ``Only Where in Excess of Threshold''. (e) Conforming Amendments.-- (1) The heading of section 6041(a) is amended by striking ``of $600 or More'' and inserting ``Exceeding Threshold''. (2) Section 6041(a) is amended by striking ``taxable year'' and inserting ``calendar year''. (f) Effective Date.--The amendments made by this section shall apply with respect to payments made after December 31, 2025. SEC. 70434. TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING PRODUCTIONS. (a) Election to Treat Costs as Expenses.--Section 181(a)(1) is amended by striking ``qualified film or television production, and any qualified live theatrical production,'' and inserting ``qualified film or television production, any qualified live theatrical production, and any qualified sound recording production''. (b) Dollar Limitation.--Section 181(a)(2) is amended by adding at the end the following new subparagraph: ``(C) Qualified sound recording production.--Paragraph (1) shall not apply to so much of the aggregate cost of any qualified sound recording production, or to so much of the aggregate, cumulative cost of all such qualified sound recording productions in the taxable year, as exceeds $150,000.''. (c) No Other Deduction or Amortization Deduction Allowable.--Section 181(b) is amended by striking ``qualified film or television production or any qualified live theatrical production'' and inserting ``qualified film or television production, any qualified live theatrical production, or any qualified sound recording production''. (d) Election.--Section 181(c)(1) is amended by striking ``qualified film or television production or any qualified live theatrical production'' and inserting ``qualified film or television production, any qualified live theatrical production, or any qualified sound recording production''. (e) Qualified Sound Recording Production Defined.--Section 181 is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection: ``(f) Qualified Sound Recording Production.--For purposes of this section, the term `qualified sound recording production' means a sound recording (as defined in section 101 of title 17, United States Code) produced and recorded in the United States.''. (f) Application of Termination.--Section 181(h), as redesignated by subsection (e), is amended by striking ``qualified film and television productions or qualified live theatrical productions'' and inserting ``qualified film and television productions, qualified live theatrical productions, or qualified sound recording productions''. (g) Bonus Depreciation.-- (1) Qualified sound recording production as qualified property.--Section 168(k)(2)(A)(i) is amended-- (A) by striking ``or'' at the end of subclause (IV), by inserting ``or'' at the end of subclause (V), and by inserting after subclause (V) the following: ``(VI) which is a qualified sound recording production (as defined in subsection (f) of [[Page S3832]] section 181) for which a deduction would have been allowable under section 181 without regard to subsections (a)(2) and (h) of such section or this subsection, and'', and (B) in subclauses (IV) and (V) (as so amended) by striking ``without regard to subsections (a)(2) and (g)'' both places it appears and inserting ``without regard to subsections (a)(2) and (h)''. (2) Production placed in service.--Section 168(k)(2)(H) is amended by striking ``and'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``, and'', and by adding after clause (ii) the following: ``(iii) a qualified sound recording production shall be considered to be placed in service at the time of initial release or broadcast.''. (h) Conforming Amendments.-- (1) The heading for section 181 is amended to read as follows: ``treatment of certain qualified productions.''. (2) The table of sections for part VI of subchapter B of chapter 1 is amended by striking the item relating to section 181 and inserting the following new item: ``Sec. 181. Treatment of certain qualified productions.''. (i) Effective Date.--The amendments made by this section shall apply to productions commencing in taxable years ending after the date of the enactment of this Act. SEC. 70435. EXCLUSION OF INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL PROPERTY. (a) In General.--Part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 139K the following new section: ``SEC. 139L. INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL PROPERTY. ``(a) In General.--Gross income shall not include 25 percent of the interest received by a qualified lender on any qualified real estate loan. ``(b) Qualified Lender.--For purposes of this section, the term `qualified lender' means-- ``(1) any bank or savings association the deposits of which are insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.), ``(2) any State- or federally-regulated insurance company, ``(3) any entity wholly owned, directly or indirectly, by a company that is treated as a bank holding company for purposes of section 8 of the International Banking Act of 1978 (12 U.S.C. 3106) if-- ``(A) such entity is organized, incorporated, or established under the laws of the United States or any State, and ``(B) the principal place of business of such entity is in the United States (including any territory of the United States), ``(4) any entity wholly owned, directly or indirectly, by a company that is considered an insurance holding company under the laws of any State if such entity satisfies the requirements described in subparagraphs (A) and (B) of paragraph (3), and ``(5) with respect to interest received on a qualified real estate loan secured by real estate described in subsection (c)(3)(A), any federally chartered instrumentality of the United States established under section 8.1(a) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-1(a)). ``(c) Qualified Real Estate Loan.--For purposes of this section-- ``(1) In general.--The term `qualified real estate loan' means any loan-- ``(A) secured by-- ``(i) rural or agricultural real estate, or ``(ii) a leasehold mortgage (with a status as a lien) on rural or agricultural real estate, ``(B) made to a person other than a specified foreign entity (as defined in section 7701(a)(51)), and ``(C) made after the date of the enactment of this section. For purposes of the preceding sentence, the determination of whether property securing such loan is rural or agricultural real estate shall be made as of the time the interest income on such loan is accrued. ``(2) Refinancings.--For purposes of subparagraphs (A) and (C) of paragraph (1), a loan shall not be treated as made after the date of the enactment of this section to the extent that the proceeds of such loan are used to refinance a loan which was made on or before the date of the enactment of this section (or, in the case of any series of refinancings, the original loan was made on or before such date). ``(3) Rural or agricultural real estate.--The term `rural or agricultural real estate' means-- ``(A) any real property which is substantially used for the production of one or more agricultural products, ``(B) any real property which is substantially used in the trade or business of fishing or seafood processing, and ``(C) any aquaculture facility. Such term shall not include any property which is not located in a State or a possession of the United States. ``(4) Aquaculture facility.--The term `aquaculture facility' means any land, structure, or other appurtenance that is used for aquaculture (including any hatchery, rearing pond, raceway, pen, or incubator). ``(d) Coordination With Section 265.--25 percent of any qualified real estate loan shall be treated as an obligation described in section 265(a)(2) the interest on which is wholly exempt from the taxes imposed by this subtitle.''. (b) Clerical Amendment.--The table of sections for part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 139K the following new item: ``Sec. 139L. Interest on loans secured by rural or agricultural real property.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. SEC. 70436. REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR CERTAIN DEVICES. (a) Transfer Tax.--Section 5811(a) is amended to read as follows: ``(a) Rate.--There shall be levied, collected, and paid on firearms transferred a tax at the rate of-- ``(1) $200 for each firearm transferred in the case of a machinegun or a destructive device, and ``(2) $0 for any firearm transferred which is not described in paragraph (1).''. (b) Making Tax.--Section 5821(a) is amended to read as follows: ``(a) Rate.--There shall be levied, collected, and paid upon the making of a firearm a tax at the rate of-- ``(1) $200 for each firearm made in the case of a machinegun or a destructive device, and ``(2) $0 for any firearm made which is not described in paragraph (1).''. (c) Conforming Amendment.--Section 4182(a) is amended by adding at the end the following: ``For purposes of the preceding sentence, any firearm described in section 5811(a)(2) shall be deemed to be a firearm on which the tax provided by section 5811 has been paid.'' (d) Effective Date.--The amendments made by this section shall apply to calendar quarters beginning more than 90 days after the date of the enactment of this Act. SEC. 70437. TREATMENT OF CAPITAL GAINS FROM THE SALE OF CERTAIN FARMLAND PROPERTY. (a) In General.--Part IV of subchapter O of chapter 1 is amended by redesignating section 1062 as section 1063 and by inserting after section 1061 the following new section: ``SEC. 1062. GAIN FROM THE SALE OR EXCHANGE OF QUALIFIED FARMLAND PROPERTY TO QUALIFIED FARMERS. ``(a) Election to Pay Tax in Installments.--In the case of gain from the sale or exchange of qualified farmland property to a qualified farmer, at the election of the taxpayer, the portion of the net income tax of such taxpayer for the taxable year of the sale or exchange which is equal to the applicable net tax liability shall be paid in 4 equal installments. ``(b) Rules Relating to Installment Payments.-- ``(1) Date for payment of installments.--If an election is made under subsection (a), the first installment shall be paid on the due date (determined without regard to any extension of time for filing the return) for the return of tax for the taxable year in which the sale or exchange occurs and each succeeding installment shall be paid on the due date (as so determined) for the return of tax for the taxable year following the taxable year with respect to which the preceding installment was made. ``(2) Acceleration of payment.-- ``(A) In general.--If there is an addition to tax for failure to timely pay any installment required under this section, then the unpaid portion of all remaining installments shall be due on the date of such failure. ``(B) Individuals.--In the case of an individual, if the individual dies, then the unpaid portion of all remaining installment shall be paid on the due date for the return of tax for the taxable year in which the taxpayer dies. ``(C) C corporations.--In the case of a taxpayer which is a C corporation, trust, or estate, if there is a liquidation or sale of substantially all the assets of the taxpayer (including in a title 11 or similar case), a cessation of business by the taxpayer (in the case of a C corporation), or any similar circumstance, then the unpaid portion of all remaining installments shall be due on the date of such event (or in the case of a title 11 or similar case, the day before the petition is filed). The preceding sentence shall not apply to the sale of substantially all the assets of a taxpayer to a buyer if such buyer enters into an agreement with the Secretary under which such buyer is liable for the remaining installments due under this subsection in the same manner as if such buyer were the taxpayer. ``(3) Proration of deficiency to installments.--If an election is made under subsection (a) to pay the applicable net tax liability in installments and a deficiency has been assessed with respect to such applicable net tax liability, the deficiency shall be prorated to the installments payable under subsection (a). The part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as, and as a part of, such installment. The part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the Secretary. This section shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax. ``(c) Election.-- ``(1) In general.--Any election under subsection (a) shall be made not later than the [[Page S3833]] due date for the return of tax for the taxable year described in subsection (a). ``(2) Partnerships and s corporations.--In the case of a sale or exchange described in subsection (a) by a partnership or S corporation, the election under subsection (a) shall be made at the partner or shareholder level. The Secretary may prescribe such regulations or other guidance as necessary to carry out the purposes of this paragraph. ``(d) Definitions.--For purposes of this section-- ``(1) Applicable net tax liability.-- ``(A) In general.--The applicable net tax liability with respect to the sale or exchange of any property described in subsection (a) is the excess (if any) of-- ``(i) such taxpayer's net income tax for the taxable year, over ``(ii) such taxpayer's net income tax for such taxable year determined without regard to any gain recognized from the sale or exchange of such property. ``(B) Net income tax.--The term `net income tax' means the regular tax liability reduced by the credits allowed under subparts A, B, and D of part IV of subchapter A. ``(2) Qualified farmland property.-- ``(A) In general.--The term `qualified farmland property' means real property located in the United States-- ``(i) which-- ``(I) has been used by the taxpayer as a farm for farming purposes, or ``(II) leased by the taxpayer to a qualified farmer for farming purposes, during substantially all of the 10-year period ending on the date of the qualified sale or exchange, and ``(ii) which is subject to a covenant or other legally enforceable restriction which prohibits the use of such property other than as a farm for farming purposes for any period before the date that is 10 years after the date of the sale or exchange described in subsection (a). For purposes of clause (i), property which is used or leased by a partnership or S corporation in a manner described in such clause shall be treated as used or leased in such manner by each person who holds a direct or indirect interest in such partnership or S corporation. ``(B) Farm; farming purposes.--The terms `farm' and `farming purposes' have the respective meanings given such terms under section 2032A(e). ``(3) Qualified farmer.--The term `qualified farmer' means any individual who is actively engaged in farming (within the meaning of subsections (b) and (c) of section 1001 of the Food Security Act of 1986 (7 U.S.C. 1308-1(b) and (c))). ``(e) Return Requirement.--A taxpayer making an election under subsection (a) shall include with the return for the taxable year of the sale or exchange described in subsection (a) a copy of the covenant or other legally enforceable restriction described in subsection (d)(2)(A)(ii).''. (b) Clerical Amendment.--The table of sections for part IV of subchapter O of chapter 1 is amended by redesignating the item relating to section 1062 as relating to section 1063 and by inserting after the item relating to section 1061 the following new item: ``Sec. 1062. Gain from the sale or exchange of qualified farmland property to qualified farmers.''. (c) Effective Date.--The amendments made by this section shall apply to sales or exchanges in taxable years beginning after the date of the enactment of this Act. SEC. 70438. EXTENSION OF RULES FOR TREATMENT OF CERTAIN DISASTER-RELATED PERSONAL CASUALTY LOSSES. For purposes of applying section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (division EE of Public Law 116-260), section 301 of such Act shall be applied by substituting the date of the enactment of this section for ``the date of the enactment of this Act'' each place it appears. CHAPTER 5--ENDING GREEN NEW DEAL SPENDING, PROMOTING AMERICA-FIRST ENERGY, AND OTHER REFORMS Subchapter A--Termination of Green New Deal Subsidies SEC. 70501. TERMINATION OF PREVIOUSLY-OWNED CLEAN VEHICLE CREDIT. Section 25E(g) is amended by striking ``December 31, 2032'' and inserting ``September 30, 2025''. SEC. 70502. TERMINATION OF CLEAN VEHICLE CREDIT. (a) In General.--Section 30D(h) is amended by striking ``placed in service after December 31, 2032'' and inserting ``acquired after September 30, 2025''. (b) Conforming Amendments.--Section 30D(e) is amended-- (1) in paragraph (1)(B)-- (A) in clause (iii), by inserting ``and'' after the comma at the end, (B) in clause (iv), by striking ``, and'' and inserting a period, and (C) by striking clause (v), and (2) in paragraph (2)(B)-- (A) in clause (ii), by inserting ``and'' after the comma at the end, (B) in clause (iii), by striking the comma at the end and inserting a period, and (C) by striking clauses (iv) through (vi). SEC. 70503. TERMINATION OF QUALIFIED COMMERCIAL CLEAN VEHICLES CREDIT. Section 45W(g) is amended by striking ``December 31, 2032'' and inserting ``September 30, 2025''. SEC. 70504. TERMINATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT. Section 30C(i) is amended by striking ``December 31, 2032'' and inserting ``June 30, 2026''. SEC. 70505. TERMINATION OF ENERGY EFFICIENT HOME IMPROVEMENT CREDIT. (a) In General.--Section 25C(h) is amended by striking ``placed in service'' and all that follows through ``December 31, 2032'' and inserting ``placed in service after December 31, 2025''. (b) Conforming Amendment.--Section 25C(d)(2)(C) is amended to read as follows: ``(C) Any oil furnace or hot water boiler which-- ``(i) meets or exceeds 2021 Energy Star efficiency criteria, and ``(ii) is rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of an eligible fuel.''. SEC. 70506. TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT. (a) In General.--Section 25D(h) is amended by striking ``to property placed in service after December 31, 2034'' and inserting ``with respect to any expenditures made after December 31, 2025''. (b) Conforming Amendments.--Section 25D(g) is amended-- (1) in paragraph (2), by inserting ``and'' after the comma at the end, (2) in paragraph (3), by striking `` and before January 1, 2033, 30 percent,'' and inserting ``30 percent.'', and (3) by striking paragraphs (4) and (5). SEC. 70507. TERMINATION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION. Section 179D is amended by adding at the end the following new subsection: ``(i) Termination.--This section shall not apply with respect to property the construction of which begins after June 30, 2026.''. SEC. 70508. TERMINATION OF NEW ENERGY EFFICIENT HOME CREDIT. Section 45L(h) is amended by striking ``December 31, 2032'' and inserting ``June 30, 2026''. SEC. 70509. TERMINATION OF COST RECOVERY FOR ENERGY PROPERTY AND QUALIFIED CLEAN ENERGY FACILITIES, PROPERTY, AND TECHNOLOGY. (a) Energy Property.--Section 168(e)(3)(B)(vi), as amended by section 13703 of Public Law 117-169, is amended-- (1) by striking subclause (I), and (2) by redesignating subclauses (II) and (III) as subclauses (I) and (II), respectively. (b) Qualified Clean Energy Facilities, Property, and Technology.--Section 168(e)(3)(B), as amended by section 13703 of Public Law 117-169 and by subsection (a), is amended-- (1) in clause (vi)(II), by adding ``and'' at the end, (2) in clause (vii), by striking ``, and'' and inserting a period, and (3) by striking clause (viii). (c) Effective Dates.-- (1) Energy property.--The amendments made by subsection (a) shall apply to property the construction of which begins after December 31, 2024. (2) Qualified clean energy facilities, property, and technology.--The amendments made by subsection (b) shall apply to property placed in service after the date of enactment of this Act. SEC. 70510. MODIFICATIONS OF ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT. (a) Restrictions Relating to Prohibited Foreign Entities.-- Section 45U(c) is amended by adding at the end the following new paragraph: ``(3) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). ``(B) Other prohibited foreign entities.--No credit shall be determined under subsection (a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign- influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof).''. (b) Prohibition With Respect to Nuclear Power Facilities Using Nuclear Fuel Produced in Covered Nations or by Covered Entities.--Section 45U, as amended by subsection (a) of this section, is amended-- (1) in subsection (b)(1)-- (A) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and (B) by inserting after subparagraph (A) the following new subparagraph: ``(B) which satisfies the requirements described in subsection (c)(4),'', and (2) in subsection (c), by adding at the end the following new paragraph: ``(4) Restrictions relating to use of certain imported nuclear fuel.-- ``(A) In general.--For any taxable year, the requirements described in this paragraph with respect to any nuclear facility are that-- ``(i) with respect to any nuclear fuel used by such facility during such taxable year, such fuel was not-- ``(I) produced in a covered nation or by a covered entity, ``(II) exchanged with, traded for, or substituted for nuclear fuel described in subclause (I), or ``(III) otherwise obtained in lieu of nuclear fuel described in subclause (I) in a manner [[Page S3834]] which is designed to circumvent the purposes of this paragraph, and ``(ii) the taxpayer shall certify to the Secretary (at such time and in such form and manner as the Secretary may prescribe) that any fuel used by such facility during such taxable year complies with the requirements described in clause (i). ``(B) Exception.--The requirements described in subparagraph (A) shall not apply with respect to any nuclear fuel which was acquired by the taxpayer pursuant to a binding written contract in effect before January 1, 2023, and which was not modified in any material respect on or after such date. ``(C) Other definitions.--In this paragraph-- ``(i) Covered entity.--The term `covered entity' means an entity organized under the laws of, or otherwise subject to the jurisdiction of, the government of a covered nation. ``(ii) Covered nation.--The term `covered nation' has the same meaning given such term under section 4872(f) of title 10, United States Code.''. (c) Effective Dates.-- (1) Restrictions relating to prohibited foreign entities.-- The amendments made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Restrictions relating to use of certain imported nuclear fuel.--The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2027. SEC. 70511. TERMINATION OF CLEAN HYDROGEN PRODUCTION CREDIT. Section 45V(c)(3)(C) is amended by striking ``January 1, 2033'' and inserting ``January 1, 2028''. SEC. 70512. TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT. (a) Termination for Wind and Solar Facilities.--Section 45Y(d) is amended-- (1) in paragraph (1), by striking ``The amount of'' and inserting ``Subject to paragraph (4), the amount of'', and (2) by striking paragraph (3) and inserting the following new paragraphs: ``(3) Applicable year.--For purposes of this subsection, the term `applicable year' means calendar year 2032. ``(4) Termination for wind and solar facilities.-- ``(A) In general.--This section shall not apply with respect to any applicable facility placed in service after December 31, 2027. ``(B) Applicable facility.--For purposes of this paragraph, the term `applicable facility' means a qualified facility which-- ``(i) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or ``(ii) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins).''. (b) Restrictions Relating to Prohibited Foreign Entities.-- Section 45Y is amended-- (1) in subsection (b)(1), by adding at the end the following new subparagraph: ``(E) Material assistance from prohibited foreign entities.--The term `qualified facility' shall not include any facility for which construction begins after December 31, 2025 (or, in the case of an applicable facility, as defined in subsection (d)(4)(B), after June 16, 2025), if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).'', and (2) in subsection (g), by adding at the end the following new paragraph: ``(13) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year if the taxpayer is-- ``(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(ii) a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). ``(B) Effective control.--In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such determination relates to a qualified facility described in subsection (b)(1).''. (c) Definitions Relating to Prohibited Foreign Entities.-- Section 7701(a) is amended by adding at the end the following new paragraphs: ``(51) Prohibited foreign entity.-- ``(A) In general.-- ``(i) Definition.--The term `prohibited foreign entity' means a specified foreign entity or a foreign-influenced entity. ``(ii) Determination.-- ``(I) In general.--Subject to subclause (II), for any taxable year, the determination as to whether an entity is a specified foreign entity or foreign-influenced entity shall be made as of the last day of such taxable year. ``(II) Initial taxable year.--For purposes of the first taxable year beginning after the date of enactment of this paragraph, the determination as to whether an entity is a specified foreign entity described in clauses (i) through (iv) of subparagraph (B) shall be made as of the first day of such taxable year. ``(B) Specified foreign entity.--For purposes of this paragraph, the term `specified foreign entity' means-- ``(i) a foreign entity of concern described in subparagraph (A), (B), (D), or (E) of section 9901(8) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 15 U.S.C. 4651), ``(ii) an entity identified as a Chinese military company operating in the United States in accordance with section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 10 U.S.C. 113 note), ``(iii) an entity included on a list required by clause (i), (ii), (iv), or (v) of section 2(d)(2)(B) of Public Law 117-78 (135 Stat. 1527), ``(iv) an entity specified under section 154(b) of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec. 4651), or ``(v) a foreign-controlled entity. ``(C) Foreign-controlled entity.--For purposes of subparagraph (B), the term `foreign-controlled entity' means-- ``(i) the government (including any level of government below the national level) of a covered nation, ``(ii) an agency or instrumentality of a government described in clause (i), ``(iii) a person who is a citizen or national of a covered nation, provided that such person is not an individual who is a citizen, national, or lawful permanent resident of the United States, ``(iv) an entity or a qualified business unit (as defined in section 989(a)) incorporated or organized under the laws of, or having its principal place of business in, a covered nation, or ``(v) an entity (including subsidiary entities) controlled (as determined under subparagraph (G)) by an entity described in clause (i), (ii), (iii), or (iv). ``(D) Foreign-influenced entity.-- ``(i) In general.--For purposes of subparagraph (A), the term `foreign-influenced entity' means an entity-- ``(I) with respect to which, during the taxable year-- ``(aa) a specified foreign entity has the direct authority to appoint a covered officer of such entity, ``(bb) a single specified foreign entity owns at least 25 percent of such entity, ``(cc) one or more specified foreign entities own in the aggregate at least 40 percent of such entity, or ``(dd) at least 15 percent of the debt of such entity has been issued, in the aggregate, to 1 or more specified foreign entities, or ``(II) which, during the previous taxable year, made a payment to a specified foreign entity pursuant to a contract, agreement, or other arrangement which entitles such specified foreign entity (or an entity related to such specified foreign entity) to exercise effective control over-- ``(aa) any qualified facility or energy storage technology of the taxpayer (or any person related to the taxpayer), or ``(bb) with respect to any eligible component produced by the taxpayer (or any person related to the taxpayer)-- ``(AA) the extraction, processing, or recycling of any applicable critical mineral, or ``(BB) the production of an eligible component which is not an applicable critical mineral. ``(ii) Effective control.-- ``(I) In general.-- ``(aa) General rule.--Subject to subclause (II), for purposes of clause (i)(II), the term `effective control' means 1 or more agreements or arrangements similar to those described in subclauses (II) and (III) which provide 1 or more contractual counterparties of a taxpayer with specific authority over key aspects of the production of eligible components, energy generation in a qualified facility, or energy storage which are not included in the measures of control through authority, ownership, or debt held which are described in clause (i)(I). ``(bb) Guidance.--The Secretary shall issue such guidance as is necessary to carry out the purposes of this clause, including the establishment of rules to prevent entities from evading, circumventing, or abusing the application of the restrictions described subparagraph (C) and subclauses (II) and (III) of this clause through a contract, agreement, or other arrangement. ``(II) Application of rules prior to issuance of guidance.--During any period prior to the date that the guidance described in subclause (I)(bb) is issued by the Secretary, for purposes of clause (i)(II), the term `effective control' means the unrestricted contractual right of a contractual counterparty to-- ``(aa) determine the quantity or timing of production of an eligible component produced by the taxpayer, ``(bb) determine the amount or timing of activities related to the production of electricity undertaken at a qualified facility of the taxpayer or the storage of electrical energy in energy storage technology of the taxpayer, ``(cc) determine which entity may purchase or use the output of a production unit of the taxpayer that produces eligible components, ``(dd) determine which entity may purchase or use the output of a qualified facility of the taxpayer, ``(ee) restrict access to data critical to production or storage of energy undertaken at a qualified facility of the taxpayer, or to the site of production or any part of a qualified [[Page S3835]] facility or energy storage technology of the taxpayer, to the personnel or agents of such contractual counterparty, or ``(ff) on an exclusive basis, maintain, repair, or operate any plant or equipment which is necessary to the production by the taxpayer of eligible components or electricity. ``(III) Licensing and other agreements.-- ``(aa) In general.--In addition to subclause (II), for purposes of clause (i)(II), the term `effective control' means, with respect to a licensing agreement for the provision of intellectual property or any other contract, agreement, or other arrangement entered into with a contractual counterparty which is related to such licensing agreement and to a qualified facility, energy storage technology, or the production of an eligible component, any of the following: ``(AA) A contractual right retained by the contractual counterparty to specify or otherwise direct 1 or more sources of components, subcomponents, or applicable critical minerals utilized in a qualified facility, energy storage technology, or in the production of an eligible component. ``(BB) A contractual right retained by the contractual counterparty to direct the operation of any qualified facility, any energy storage technology, or any production unit that produces an eligible component. ``(CC) A contractual right retained by the contractual counterparty to limit the taxpayer's utilization of intellectual property related to the operation of a qualified facility or energy storage technology, or in the production of an eligible component. ``(DD) A contractual right retained by the contractual counterparty to receive royalties under the licensing agreement or any similar agreement (or payments under any related agreement) beyond the 10th year of the agreement (including modifications or extensions thereof). ``(EE) A contractual right retained by the contractual counterparty to direct or otherwise require the taxpayer to enter into an agreement for the provision of services for a duration longer than 2 years (including any modifications or extensions thereof). ``(FF) Such contract, agreement, or other arrangement does not provide the licensee with all the technical data, information, and know-how necessary to enable the licensee to produce the eligible component or components subject to the contract, agreement, or other arrangement without further involvement from the contractual counterparty or a specified foreign entity. ``(GG) Such contract, agreement, or other arrangement was entered into (or modified) on or after June 16, 2025. ``(bb) Exception.-- ``(AA) In general.--Item (aa) shall not apply in the case of a bona fide purchase or sale of intellectual property. ``(BB) Bona fide purchase or sale.--For purposes of item (aa), any purchase or sale of intellectual property where the agreement provides that ownership of the intellectual property reverts to the contractual counterparty after a period of time shall not be considered a bona-fide purchase or sale. ``(IV) Persons related to the taxpayer.--For purposes of subclauses (I), (II), and (III), the term `taxpayer' shall include any person related to the taxpayer. ``(V) Contractual counterparty.--For purposes of this clause, the term `contractual counterparty' means an entity with which the taxpayer has entered into a contract, agreement, or other arrangement. ``(iii) Guidance.--Not later than December 31, 2026, the Secretary shall issue such guidance as is necessary to carry out the purposes of this subparagraph, including establishment of rules to prevent entities from evading, circumventing, or abusing the application of the restrictions against impermissible technology licensing arrangements with specified foreign entities, such as through temporary transfers of intellectual property, retention by a specified foreign entity of a reversionary interest in transferred intellectual property, or otherwise. ``(E) Publicly traded entities.-- ``(i) In general.-- ``(I) Nonapplication of certain foreign-controlled entity rules.--Subparagraph (C)(v) shall not apply in the case of any entity the securities of which are regularly traded on-- ``(aa) a national securities exchange which is registered with the Securities and Exchange Commission, ``(bb) the national market system established pursuant to section 11A of the Securities and Exchange Act of 1934, or ``(cc) any other exchange or other market which the Secretary has determined in guidance issued under section 1296(e)(1)(A)(ii) has rules adequate to carry out the purposes of part VI of subchapter P of chapter 1 of subtitle A. ``(II) Nonapplication of certain foreign-influenced entity rules.--Subparagraph (D)(i)(I) shall not apply in the case of any entity-- ``(aa) the securities of which are regularly traded in a manner described in subclause (I), or ``(bb) for which not less than 80 percent of the equity securities of such entity are owned directly or indirectly by an entity which is described in item (aa). ``(III) Exclusion of exchanges or markets in covered nations.--Subclause (I)(cc) shall not apply with respect to any exchange or market which-- ``(aa) is incorporated or organized under the laws of a covered nation, or ``(bb) has its principal place of business in a covered nation. ``(ii) Additional foreign-controlled entity requirements for publicly traded companies.--In the case of an entity described in clause (i)(I), such entity shall be deemed to be a foreign-controlled entity under subparagraph (C)(v) if such entity is controlled (as determined under subparagraph (G)) by-- ``(I) 1 or more specified foreign entities (as determined without regard to subparagraph (B)(v)) that are each required to report their beneficial ownership pursuant to a rule described in clause (iii)(I)(bb), or ``(II) 1 or more foreign-controlled entities (as determined without regard to subparagraph (C)(v)) that are each required to report their beneficial ownership pursuant to a rule described in such clause. ``(iii) Additional foreign-influenced entity requirements for publicly traded companies.--In the case of an entity described in clause (i)(II), such entity shall be deemed to be a foreign-influenced entity under subparagraph (D)(i)(I) if-- ``(I) during the taxable year-- ``(aa) a specified foreign entity has the authority to appoint a covered officer of such entity, ``(bb) a single specified foreign entity required to report its beneficial ownership under Rule 13d-3 of the Securities and Exchange Act of 1934 (or, in the case of an exchange or market described in clause (i)(I)(cc), an equivalent rule) owns not less than 25 percent of such entity, or ``(cc) 1 or more specified foreign entities that are each required to report their beneficial ownership under Rule 13d- 3 of the Securities and Exchange Act of 1934 own, in the aggregate, not less than 40 percent of such entity, or ``(II) such entity has issued debt, as part of an original issuance, in excess of 15 percent of its publicly-traded debt to 1 or more specified foreign entities. ``(F) Covered officer.--For purposes of this paragraph, the term `covered officer' means, with respect to an entity-- ``(i) a member of the board of directors, board of supervisors, or equivalent governing body, ``(ii) an executive-level officer, including the president, chief executive officer, chief operating officer, chief financial officer, general counsel, or senior vice president, or ``(iii) an individual having powers or responsibilities similar to those of officers or members described in clause (i) or (ii). ``(G) Determination of control.--For purposes of subparagraph (C)(v), the term `control' means-- ``(i) in the case of a corporation, ownership (by vote or value) of more than 50 percent of the stock in such corporation, ``(ii) in the case of a partnership, ownership of more than 50 percent of the profits interests or capital interests in such partnership, or ``(iii) in any other case, ownership of more than 50 percent of the beneficial interests in the entity. ``(H) Determination of ownership.--For purposes of this section, section 318(a)(2) shall apply for purposes of determining ownership of stock in a corporation. Similar principles shall apply for purposes of determining ownership of interests in any other entity. ``(I) Other definitions.--For purposes of this paragraph-- ``(i) Applicable critical mineral.--The term `applicable critical mineral' has the same meaning given such term under section 45X(c)(6). ``(ii) Covered nation.--The term `covered nation' has the same meaning given such term under section 4872(f)(2) of title 10, United States Code. ``(iii) Eligible component.--The term `eligible component' has the same meaning given such term under section 45X(c)(1). ``(iv) Energy storage technology.--The term `energy storage technology' has the same meaning given such term under section 48E(c)(2). ``(v) Qualified facility.--The term `qualified facility' means-- ``(I) a qualified facility, as defined in section 45Y(b)(1), and ``(II) a qualified facility, as defined in section 48E(b)(3). ``(vi) Related.--The term `related' shall have the same meaning given such term under sections 267(b) and 707(b). ``(J) Beginning of construction.--For purposes of applying any provision under this paragraph, the beginning of construction with respect to any property shall be determined pursuant to rules similar to the rules under Internal Revenue Service Notice 2013-29 and Internal Revenue Service Notice 2018-59 (as well as any subsequently issued guidance clarifying, modifying, or updating either such Notice), as in effect on January 1, 2025. ``(K) Regulations and guidance.--The Secretary may prescribe such regulations and guidance as may be necessary or appropriate to carry out the provisions of this paragraph, including rules to prevent the circumvention of any rules or restrictions with respect to prohibited foreign entities. ``(52) Material assistance from a prohibited foreign entity.-- ``(A) In general.--The term `material assistance from a prohibited foreign entity' means-- ``(i) with respect to any qualified facility or energy storage technology, a material assistance cost ratio which is less than the [[Page S3836]] threshold percentage applicable under subparagraph (B), or ``(ii) with respect to any facility which produces eligible components, a material assistance cost ratio which is less than the threshold percentage applicable under subparagraph (C). ``(B) Threshold percentage for qualified facilities and energy storage technology.--For purposes of subparagraph (A)(i), the threshold percentage shall be-- ``(i) in the case of a qualified facility the construction of which begins-- ``(I) after June 16, 2025, and before January 1, 2026, 37.5 percent, ``(II) during calendar year 2026, 40 percent, ``(III) during calendar year 2027, 45 percent, ``(IV) during calendar year 2028, 50 percent, ``(V) during calendar year 2029, 55 percent, and ``(VI) after December 31, 2029, 60 percent, and ``(ii) in the case of energy storage technology the construction of which begins-- ``(I) during calendar year 2026, 55 percent, ``(II) during calendar year 2027, 60 percent, ``(III) during calendar year 2028, 65 percent, ``(IV) during calendar year 2029, 70 percent, and ``(V) after December 31, 2029, 75 percent. ``(C) Threshold percentage for eligible components.-- ``(i) In general.--For purposes of subparagraph (A)(ii), the threshold percentage shall be-- ``(I) in the case of any solar energy component (as such term is defined in section 45X(c)(3)(A)) which is sold-- ``(aa) during calendar year 2026, 50 percent, ``(bb) during calendar year 2027, 60 percent, ``(cc) during calendar year 2028, 70 percent, ``(dd) during calendar year 2029, 80 percent, and ``(ee) after December 31, 2029, 85 percent, ``(II) in the case of any wind energy component (as such term is defined in section 45X(c)(4)(A)) which is sold-- ``(aa) during calendar year 2026, 85 percent, and ``(bb) during calendar year 2027, 90 percent, ``(III) in the case of any inverter described in subparagraphs (B) through (G) of section 45X(c)(2) which is sold-- ``(aa) during calendar year 2026, 50 percent, ``(bb) during calendar year 2027, 55 percent, ``(cc) during calendar year 2028, 60 percent, ``(dd) during calendar year 2029, 65 percent, and ``(ee) after December 31, 2029, 70 percent, ``(IV) in the case of any qualifying battery component (as such term is defined in section 45X(c)(5)(A)) which is sold-- ``(aa) during calendar year 2026, 60 percent, ``(bb) during calendar year 2027, 65 percent, ``(cc) during calendar year 2028, 70 percent, ``(dd) during calendar year 2029, 80 percent, and ``(ee) after December 31, 2029, 85 percent, and ``(V) subject to clause (ii), in the case of any applicable critical mineral (as such term is defined in section 45X(c)(6)) which is sold-- ``(aa) after December 31, 2025, and before January 1, 2030, 0 percent, ``(bb) during calendar year 2030, 25 percent, ``(cc) during calendar year 2031, 30 percent, ``(dd) during calendar year 2032, 40 percent, and ``(ee) after December 31, 2032, 50 percent. ``(ii) Adjusted threshold percentage for applicable critical minerals.--Not later than December 31, 2027, the Secretary shall issue threshold percentages for each of the applicable critical minerals described in section 45X(c)(6)), which shall-- ``(I) apply in lieu of the threshold percentage determined under clause (i)(V) for each calendar year, and ``(II) equal or exceed the threshold percentage which would otherwise apply with respect to such applicable critical mineral under such clause for such calendar year, taking into account-- ``(aa) domestic geographic availability, ``(bb) supply chain constraints, ``(cc) domestic processing capacity needs, and ``(dd) national security concerns. ``(D) Material assistance cost ratio.-- ``(i) Qualified facilities and energy storage technology.-- For purposes of subparagraph (A)(i), the term `material assistance cost ratio' means the amount (expressed as a percentage) equal to the quotient of-- ``(I) an amount equal to-- ``(aa) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are incorporated into the qualified facility or energy storage technology upon completion of construction, minus ``(bb) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are-- ``(AA) incorporated into the qualified facility or energy storage technology upon completion of construction, and ``(BB) mined, produced, or manufactured by a prohibited foreign entity, divided by ``(II) the amount described in subclause (I)(aa). ``(ii) Eligible components.--For purposes of subparagraph (A)(ii), the term `material assistance cost ratio' means the amount (expressed as a percentage) equal to the quotient of-- ``(I) an amount equal to-- ``(aa) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer for production of such eligible component, minus ``(bb) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer for production of such eligible component that are attributable to a prohibited foreign entity, divided by ``(II) the amount described in subclause (I)(aa). ``(iii) Safe harbor tables.-- ``(I) In general.--Not later than December 31, 2026, the Secretary shall issue safe harbor tables (and such other guidance as deemed necessary) to-- ``(aa) identify the percentage of total direct costs of any manufactured product which is attributable to a prohibited foreign entity, ``(bb) identify the percentage of total direct material costs of any eligible component which is attributable to a prohibited foreign entity, and ``(cc) provide all rules necessary to determine the amount of a taxpayer's material assistance from a prohibited foreign entity within the meaning of this paragraph. ``(II) Safe harbors prior to issuance.--For purposes of this paragraph, prior to the date on which the Secretary issues the safe harbor tables described in subclause (I), and for construction of a qualified facility or energy storage technology which begins on or before the date which is 60 days after the date of issuance of such tables, a taxpayer may-- ``(aa) use the tables included in Internal Revenue Service Notice 2025-08 to establish the percentage of the total direct costs of any listed eligible component and any manufactured product, and ``(bb) rely on a certification by the supplier of the manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component-- ``(AA) of the total direct costs or the total direct material costs, as applicable, of such product or component that was not produced or manufactured by a prohibited foreign entity, or ``(BB) that such product or component was not produced or manufactured by a prohibited foreign entity. ``(III) Exception.--Notwithstanding subclauses (I) and (II)-- ``(aa) if the taxpayer knows (or has reason to know) that a manufactured product or eligible component was produced or manufactured by a prohibited foreign entity, the taxpayer shall treat all direct costs with respect to such manufactured product, or all direct material costs with respect to such eligible component, as attributable to a prohibited foreign entity, and ``(bb) if the taxpayer knows (or has reason to know) that the certification referred to in subclause (II)(bb) pertaining to a manufactured product or eligible component is inaccurate, the taxpayer may not rely on such certification. ``(IV) Certification requirement.--In a manner consistent with Treasury Regulation section 1.45X-4(c)(4)(i) (as in effect on the date of enactment of this paragraph), the certification referred to in subclause (II)(bb) shall-- ``(aa) include-- ``(AA) the supplier's employer identification number, or ``(BB) any such similar identification number issued by a foreign government, ``(bb) be signed under penalties of perjury, ``(cc) be retained by the supplier and the taxpayer for a period of not less than 6 years and shall be provided to the Secretary upon request, and ``(dd) be from the supplier from which the taxpayer purchased any manufactured product, eligible component, or constituent elements, materials, or subcomponents of an eligible component, stating either-- ``(AA) that such property was not produced or manufactured by a prohibited foreign entity and that the supplier is not aware that any prior supplier in the chain of production of that property is a prohibited foreign entity, ``(BB) for purposes of section 45X, the total direct material costs for each component, constituent element, material, or subcomponent that were not produced or manufactured by a prohibited foreign entity, or ``(CC) for purposes of section 45Y or section 48E, the total direct costs attributable to all manufactured products that were not produced or manufactured by a prohibited foreign entity. ``(iv) Existing contract.--Upon the election of the taxpayer (in such form and manner as the Secretary shall designate), in the case of any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component which is-- ``(I) acquired by the taxpayer, or manufactured or assembled by or for the taxpayer, pursuant to a binding written contract which was entered into prior to June 16, 2025, and ``(II)(aa) placed into service before January 1, 2030 (or, in the case of an applicable facility, as defined in section 45Y(d)(4)(B), before January 1, 2028), or ``(bb) in the case of a constituent element, material, or subcomponent, used in a product sold before January 1, 2030, the cost to the taxpayer with respect to such product, component, element, material, or [[Page S3837]] subcomponent shall not be included for purposes of determining the material assistance cost ratio under this subparagraph. ``(v) Anti-circumvention rules.--The Secretary shall prescribe such regulations and guidance as may be necessary or appropriate to prevent circumvention of the rules under this subparagraph, including prevention of-- ``(I) any abuse of the exception provided under clause (iv) through the stockpiling of any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component during any period prior to the application of the requirements under this paragraph, or ``(II) any evasion with respect to the requirements of this subparagraph where the facts and circumstances demonstrate that the beginning of construction of a qualified facility or energy storage technology has not in fact occurred. ``(E) Other definitions.--For purposes of this paragraph-- ``(i) Eligible component.--The term `eligible component' means-- ``(I) any property described in section 45X(c)(1), or ``(II) any component which is identified by the Secretary pursuant to regulations or guidance issued under subparagraph (G). ``(ii) Energy storage technology.--The term `energy storage technology' has the same meaning given such term under section 48E(c)(2). ``(iii) Manufactured product.--The term `manufactured product' means-- ``(I) a manufactured product which is a component of a qualified facility, as described in section 45Y(g)(11)(B) and any guidance issued thereunder, or ``(II) any product which is identified by the Secretary pursuant to regulations or guidance issued under subparagraph (G). ``(iv) Qualified facility.--The term `qualified facility' means-- ``(I) a qualified facility, as defined in section 45Y(b)(1), ``(II) a qualified facility, as defined in section 48E(b)(3), and ``(III) any qualified interconnection property (as defined in section 48E(b)(4)) which is part of the qualified investment with respect to a qualified facility (as described in section 48E(b)(1)). ``(F) Beginning of construction.--Rules similar to the rules under paragraph (51)(J) shall apply for purposes of this paragraph. ``(G) Regulations and guidance.--The Secretary may prescribe such regulations and guidance as may be necessary or appropriate to carry out the provisions of this paragraph, including-- ``(i) identification of components or products for purposes of clauses (i) and (iii) of subparagraph (E), and ``(ii) for purposes of subparagraph (A)(ii), rules to address facilities which produce more than one eligible component.''. (d) Denial of Credit for Certain Wind and Solar Leasing Arrangements.--Section 45Y is amended by adding at the end the following new subsection: ``(h) Denial of Credit for Wind and Solar Leasing Arrangements.--No credit shall be determined under this section with respect to any production of electricity during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.''. (e) Emissions Rates Tables.--Section 45Y(b)(2)(C) is amended by adding at the end the following new clause: ``(iii) Existing studies.--For purposes of clause (i), in determining greenhouse gas emissions rates for types or categories of facilities for the purpose of determining whether a facility satisfies the requirements under paragraph (1), the Secretary shall consider studies published on or before the date of enactment of this clause which demonstrate a net lifecycle greenhouse gas emissions rate which is not greater than zero using widely accepted lifecycle assessment concepts, such as concepts described in standards developed by the International Organization for Standardization.''. (f) Nuclear Energy Communities.-- (1) In general.--Section 45(b)(11) is amended-- (A) in subparagraph (B)-- (i) in clause (ii)(II), by striking ``or'' at the end, (ii) in clause (iii)(II), by striking the period at the end and inserting ``, or'', and (iii) by adding at the end the following new clause: ``(iv) for purposes of any qualified facility which is an advanced nuclear facility, a metropolitan statistical area which has (or, at any time during the period beginning after December 31, 2009, had) 0.17 percent or greater direct employment related to the advancement of nuclear power, including employment related to-- ``(I) an advanced nuclear facility, ``(II) advanced nuclear power research and development, ``(III) nuclear fuel cycle research, development, or production, including mining, enrichment, manufacture, storage, disposal, or recycling of nuclear fuel, and ``(IV) the manufacturing or assembly of components used in an advanced nuclear facility.'', and (B) by adding at the end the following new subparagraph: ``(C) Advanced nuclear facilities.-- ``(i) In general.--Subject to clause (ii), for purposes of subparagraph (B)(iv), the term `advanced nuclear facility' means any nuclear facility the reactor design for which is approved in the manner described in section 45J(d)(2). ``(ii) Special rule.--For purposes of clause (i), a facility shall be deemed to have a reactor design which is approved in the manner described in section 45J(d)(2) if the Nuclear Regulatory Commission has authorized construction and issued a site-specific construction permit or combined license with respect to such facility.''. (2) Nonapplication for clean electricity investment credit.--Section 48E(a)(3)(A)(i) is amended by inserting ``, as applied without regard to clause (iv) thereof'' after ``section 45(b)(11)(B)''. (g) Conforming Amendments.-- (1) Paragraph (1) of section 48D(c) is amended to read as follows: ``(1) is not a specified foreign entity (as defined in section 7701(a)(51)(B)), and''. (2) Section 45Y(b)(1) is amended-- (A) by redesignating subparagraph (D) as subparagraph (E), and (B) by inserting after subparagraph (C) the following new subparagraph: ``(D) Determination of capacity.--For purposes of subparagraph (C), additions of capacity of a facility shall be determined in any reasonable manner, including based on-- ``(i) determinations by, or reports to, the Federal Energy Regulatory Commission (including interconnection agreements), the Nuclear Regulatory Commission, or any similar entity, reflecting additions of capacity, ``(ii) determinations or reports reflecting additions of capacity made by an independent professional engineer, ``(iii) reports to, or issued by, regional transmission organizations or independent system operators reflecting additions of capacity, or ``(iv) any other method or manner provided by the Secretary.''. (h) Prohibition on Transfer of Credits to Specified Foreign Entities.--Section 6418(g) is amended by adding at the end the following new paragraph: ``(5) Prohibition on transfer of credits to specified foreign entities.--With respect to any eligible credit described in clause (iii), (iv), (vi), (vii), (viii), or (xi) of subsection (f)(1)(A), an eligible taxpayer may not elect to transfer any portion of such credit to a taxpayer that is a specified foreign entity (as defined in section 7701(a)(51)(B)).''. (i) Extension of Period of Limitations for Errors Relating to Determining of Material Assistance From a Prohibited Foreign Entity.--Section 6501 is amended-- (1) by redesignating subsection (o) as subsection (p), and (2) by inserting after subsection (n) the following new subsection: ``(o) Material Assistance From a Prohibited Foreign Entity.--In the case of a deficiency attributable to an error with respect to the determination under section 7701(a)(52) for any taxable year, such deficiency may be assessed at any time within 6 years after the return for such year was filed.''. (j) Imposition of Accuracy-related Penalties.-- (1) In general.--Section 6662 is amended by adding at the end the following new subsection: ``(m) Substantial Understatement of Income Tax Due to Disallowance of Applicable Energy Credits.-- ``(1) In general.--In the case of a taxpayer for which there is a disallowance of an applicable energy credit for any taxable year, for purposes of determining whether there is a substantial understatement of income tax for such taxable year, subsection (d)(1) shall be applied-- ``(A) in subparagraphs (A) and (B), by substituting `1 percent' for `10 percent' each place it appears, and ``(B) without regard to subparagraph (C). ``(2) Disallowance of an applicable energy credit.--For purposes of this subsection, the term `disallowance of an applicable energy credit' means the disallowance of a credit under section 45X, 45Y, or 48E by reason of overstating the material assistance cost ratio (as determined under section 7701(a)(52)) with respect to any qualified facility, energy storage technology, or facility which produces eligible components.''. (2) Conforming amendment.--Section 6417(d)(6) is amended by adding at the end the following new subparagraph: ``(D) Disallowance of an applicable energy credit.--In the case of an applicable entity which made an election under subsection (a) with respect to an applicable credit for which there is a disallowance described in section 6662(m)(2), subparagraph (A) shall apply with respect to any excessive payment resulting from such disallowance.''. (k) Penalty for Substantial Misstatements on Certification Provided by Supplier.-- (1) In general.--Part I of subchapter B of chapter 68 is amended by inserting after section 6695A the following new section: ``SEC. 6695B. PENALTY FOR SUBSTANTIAL MISSTATEMENTS ON CERTIFICATION PROVIDED BY SUPPLIER. ``(a) Imposition of Penalty.--If-- ``(1) a person-- ``(A) provides a certification described in clause (iii)(II)(bb) of section 7701(a)(52)(D) with respect to any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component, and [[Page S3838]] ``(B) knows, or reasonably should have known, that the certification would be used in connection with a determination under such section, ``(2) such certification is inaccurate or false with respect to-- ``(A) whether such property was produced or manufactured by a prohibited foreign entity, or ``(B) the total direct costs or total direct material costs of such property that was not produced or manufactured by a prohibited foreign entity that were provided on such certification, and ``(3) the inaccuracy or falsity described in paragraph (2) resulted in the disallowance of an applicable energy credit (as defined in section 6662(m)(2)) and an understatement of income tax (within the meaning of section 6662(d)(2)) for the taxable year in an amount which exceeds the lesser of-- ``(A) 5 percent of the tax required to be shown on the return for the taxable year, or ``(B) $100,000, then such person shall pay a penalty in the amount determined under subsection (b). ``(b) Amount of Penalty.--The amount of the penalty imposed under subsection (a) on any person with respect to a certification shall be equal to the greater of-- ``(1) 10 percent of the amount of the underpayment (as defined in section 6664(a)) solely attributable to the inaccuracy or falsity described in subsection (a)(2), or ``(2) $5,000. ``(c) Exception.--No penalty shall be imposed under subsection (a) if the person establishes to the satisfaction of the Secretary that any inaccuracy or falsity described in subsection (a)(2) is due to a reasonable cause and not willful neglect. ``(d) Definitions.--Any term used in this section which is also used in section 7701(a)(52) shall have the meaning given such term in such section.''. (2) Clerical amendments.-- (A) Section 6696 is amended-- (i) in the heading, by striking ``and 6695a'' and inserting ``6695a, and 6695b'', (ii) in subsections (a), (b), and (e), by striking ``and 6695A'' each place it appears and inserting ``6695A, and 6695B'', (iii) in subsection (c), by striking ``or 6695A'' and inserting ``6695A, or 6695B'', and (iv) in subsection (d)-- (I) in paragraph (1), by inserting ``(or, in the case of any penalty under section 6695B, 6 years)'' after ``assessed within 3 years'', and (II) in paragraph (2), by inserting ``(or, in the case of any claim for refund of an overpayment of any penalty assessed under section 6695B, 6 years)'' after ``filed within 3 years''. (B) The table of sections for part I of subchapter B of chapter 68 is amended by inserting after item relating to section 6695A the following new item: ``Sec. 6695B. Penalty for substantial misstatements on certification provided by supplier.''. (l) Excise Tax on Facilities That Receive Material Assistance From Prohibited Foreign Entities.-- (1) In general.--Subtitle D is amended by adding at the end the following new chapter: ``CHAPTER 50B--MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTITIES ``Sec. 5000E-1. Imposition of tax. ``SEC. 5000E-1. IMPOSITION OF TAX. ``(a) In General.--In the case of an applicable facility for which there is a material assistance cost ratio violation, a tax is hereby imposed for the taxable year in which such facility is placed in service in the amount determined under subsection (d) with respect to such facility. ``(b) Applicable Facility.--For purposes of this section, the term `applicable facility' means a facility owned by the taxpayer-- ``(1) which-- ``(A) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or ``(B) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), and ``(2) either-- ``(A) the construction of which begins after the date of the enactment of this section and before January 1, 2028, and which is placed in service after December 31, 2027, or ``(B) the construction of which begins after December 31, 2027, and before January 1, 2036. ``(c) Material Assistance Cost Ratio Violation.--For purposes of this section, the term `material assistance cost ratio violation' means, with respect to an applicable facility, that the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)). ``(d) Amount of Tax.-- ``(1) In general.--The amount determined under this subsection with respect to any applicable facility shall be equal to the applicable percentage of the amount equal to the product of-- ``(A) the amount (expressed in percentage points) by which the threshold percentage (as determined under section 7701(a)(52)(B)(i)) exceeds the material assistance cost ratio (as determined under section 7701(a)(52)(D)(i)), multiplied by ``(B) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are incorporated into the applicable facility upon completion of construction (as determined under section 7701(a)(52)(D)(i)(I)). ``(2) Applicable percentage.--For purposes of paragraph (1), the applicable percentage shall be-- ``(A) in the case of a facility described in subparagraph (A) of subsection (b)(1), 30 percent, or ``(B) in the case of a facility described in subparagraph (B) of such subsection, 50 percent. ``(e) Rule of Application.--For purposes of this section, with respect to the application of section 7701(a)(52) or any provision thereof, such section shall be applied by substituting `applicable facility' for `qualified facility' each place it appears.''. (2) Clerical amendment.--The table of chapters for subtitle D is amended by inserting after the item relating to chapter 50A the following new item: ``Chapter 50B--Material Assistance From Prohibited Foreign Entities''. (m) Effective Dates.-- (1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Material assistance from prohibited foreign entities.-- The amendments made by subsection (b)(1) shall apply to facilities for which construction begins after June 16, 2025. (3) Excise tax on facilities that receive material assistance from prohibited foreign entities.--The amendments made by subsection (l) shall apply to facilities for which construction begins after June 16, 2025. (4) Penalty for substantial misstatements on certification provided by supplier.--The amendments made by subsection (k) shall apply to certifications provided after December 31, 2025. (5) Termination for wind and solar facilities.--The amendments made by subsection (a) shall apply to facilities the construction of which begins after the date of enactment of this Act. SEC. 70513. TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT. (a) Termination for Wind and Solar Facilities.--Section 48E(e) is amended-- (1) in paragraph (1), by striking ``The amount of'' and inserting ``Subject to paragraph (4), the amount of'', and (2) by adding at the end the following new paragraph: ``(4) Termination for wind and solar facilities.-- ``(A) In general.--This section shall not apply to any qualified property placed in service by the taxpayer after December 31, 2027, which is part of an applicable facility. ``(B) Applicable facility.--For purposes of this paragraph, the term `applicable facility' means a qualified facility which-- ``(i) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or ``(ii) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins). ``(C) Exception.--This paragraph shall not apply with respect to any energy storage technology which is placed in service at any applicable facility.''. (b) Restrictions Relating to Prohibited Foreign Entities.-- (1) In general.--Section 48E is amended-- (A) in subsection (b)-- (i) by redesignating paragraph (6) as paragraph (7), and (ii) by inserting after paragraph (5) the following new paragraph: ``(6) Material assistance from prohibited foreign entities.-- ``(A) In general.--Subject to subparagraph (B), the terms `qualified facility' and `qualified interconnection property' shall not include any facility or property the construction, reconstruction, or erection of which begins after December 31, 2025, if the construction, reconstruction, or erection of such facility or property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)). ``(B) Applicable facilities.--The term `qualified facility' shall not include any applicable facility (as defined in subsection (e)(4)(B)) for which construction begins after June 16, 2025, if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).'', and (B) in subsection (c), by adding at the end the following new paragraph: ``(3) Material assistance from prohibited foreign entities.--The term `energy storage technology' shall not include any property the construction of which begins after December 31, 2025, if the construction of such property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).''. (2) Additional restrictions.--Section 48E(d) is amended by adding at the end the following new paragraph: ``(6) Restrictions relating to prohibited foreign entities.-- [[Page S3839]] ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year if the taxpayer is-- ``(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(ii) a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). ``(B) Effective control.--In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such determination relates to a qualified facility described in subsection (b)(3) or energy storage technology described in subsection (c)(2).''. (3) Recapture.-- (A) In general.--Section 50(a) is amended-- (i) by redesignating paragraphs (4) through (6) as paragraphs (5) through (7), respectively, (ii) by inserting after paragraph (3) the following new paragraph: ``(4) Payments to prohibited foreign entities.-- ``(A) In general.--If there is an applicable payment made by a specified taxpayer before the close of the 10-year period beginning on the date such taxpayer placed in service investment credit property which is eligible for the clean electricity investment credit under section 48E(a), then the tax under this chapter for the taxable year in which such applicable payment occurs shall be increased by 100 percent of the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero any credit determined under section 46 which is attributable to the clean electricity investment credit under section 48E(a) with respect to such property. ``(B) Applicable payment.--For purposes of this paragraph, the term `applicable payment' means, with respect to any taxable year, a payment or payments described in section 7701(a)(51)(D)(i)(II). ``(C) Specified taxpayer.--For purposes of this paragraph, the term `specified taxpayer' means any taxpayer who has been allowed a credit under section 48E(a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph.'', (iii) in paragraph (5), as redesignated by clause (i), by striking ``or any applicable transaction to which paragraph (3)(A) applies,'' and inserting ``any applicable transaction to which paragraph (3)(A) applies, or any applicable payment to which paragraph (4)(A) applies,'', and (iv) in paragraph (7), as redesignated by clause (i), by striking ``or (3)'' and inserting ``(3), or (4)''. (B) Conforming amendments.-- (i) Section 1371(d)(1) is amended by striking ``section 50(a)(5)'' and inserting ``section 50(a)(6)''. (ii) Section 6418(g)(3) is amended by striking ``subsection (a)(5)'' each place it appears and inserting ``subsection (a)(7)''. (c) Denial of Credit for Expenditures for Certain Wind and Solar Leasing Arrangements.-- (1) In general.--Section 48E is amended-- (A) by redesignating subsection (i) as subsection (j), and (B) by inserting after subsection (h) the following new subsection: ``(i) Denial of Credit for Expenditures for Wind and Solar Leasing Arrangements.--No credit shall be determined under this section for any qualified investment during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.''. (2) Conforming rules.--Section 50 is amended by adding at the end the following new subsection: ``(e) Rules for Geothermal Heat Pumps.--For purposes of this section and section 168, the ownership of energy property described in section 48(a)(3)(A)(vii) shall be determined without regard to whether such property is readily usable by a person other than the lessee or service recipient.''. (d) Domestic Content Rules.--Subparagraph (B) of section 48E(a)(3) is amended to read as follows: ``(B) Domestic content.--Rules similar to the rules of section 48(a)(12) shall apply, except that, for purposes of subparagraph (B) of such section and the application of rules similar to the rules of section 45(b)(9)(B), the adjusted percentage (as determined under section 45(b)(9)(C)) shall be determined as follows: ``(i) In the case of any qualified investment with respect to any qualified facility the construction of which begins before June 16, 2025, 40 percent (or, in the case of a qualified facility which is an offshore wind facility, 20 percent). ``(ii) In the case of any qualified investment with respect to any qualified facility the construction of which begins on or after June 16, 2025, and before January 1, 2026, 45 percent (or, in the case of a qualified facility which is an offshore wind facility, 27.5 percent). ``(iii) In the case of any qualified investment with respect to any qualified facility the construction of which begins during calendar year 2026, 50 percent (or, in the case of a qualified facility which is an offshore wind facility, 35 percent). ``(iv) In the case of any qualified investment with respect to any qualified facility the construction of which begins after December 31, 2026, 55 percent.''. (e) Elimination of Energy Credit for Certain Energy Property.--Section 48(a)(2) is amended-- (1) in subparagraph (A)(ii), by striking ``2 percent'' and inserting ``0 percent'', and (2) by adding at the end the following new subparagraph: ``(C) Nonapplication of increases to energy percentage.-- For purposes of energy property described in subparagraph (A)(ii), the energy percentage applicable to such property pursuant to such subparagraph shall not be increased or otherwise adjusted by any provision of this section.''. (f) Application of Clean Electricity Investment Credit to Qualified Fuel Cell Property.--Section 48E, as amended by subsection (c), is amended-- (1) by redesignating subsection (j) as subsection (k), and (2) by inserting after subsection (i) the following new subsection: ``(j) Application to Qualified Fuel Cell Property.--For purposes of this section, in the case of any qualified fuel cell property (as defined in section 48(c)(1), as applied without regard to subparagraph (E) thereof)-- ``(1) subsection (b)(3)(A) shall be applied without regard to clause (iii) thereof, ``(2) for purposes of subsection (a)(1), the applicable percentage shall be 30 percent and such percentage shall not be increased or otherwise adjusted by any other provision of this section, and ``(3) subsection (g) shall not apply.''. (g) Effective Dates.-- (1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025. (3) Elimination of energy credit for certain energy property.--The amendments made by subsection (e) shall apply to property the construction of which begins on or after June 16, 2025. (4) Application of clean electricity investment credit to qualified fuel cell property.--The amendments made by subsection (f) shall apply to property the construction of which begins after December 31, 2025. (5) Termination for wind and solar facilities.--The amendments made by subsection (a) shall apply to facilities the construction of which begins after the date of enactment of this Act. SEC. 70514. PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING PRODUCTION CREDIT. (a) Modification of Provision Relating to Sale of Integrated Components.--Paragraph (4) of section 45X(d) is amended to read as follows: ``(4) Sale of integrated components.-- ``(A) In general.--For purposes of this section, a person shall be treated as having sold an eligible component to an unrelated person if-- ``(i) such component (referred to in this paragraph as the `primary component') is integrated, incorporated, or assembled into another eligible component (referred to in this paragraph as the `secondary component') produced within the same manufacturing facility as the primary component, and ``(ii) the secondary component is sold to an unrelated person. ``(B) Additional requirements.--Subparagraph (A) shall only apply with respect to a secondary component for which not less than 65 percent of the total direct material costs which are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer to produce such secondary component are attributable to primary components which are mined, produced, or manufactured in the United States.''. (b) Phase Out and Termination.--Section 45X(b)(3) is amended-- (1) in the heading, by inserting ``and termination'' after ``Phase out'', (2) in subparagraph (A), in the matter preceding clause (i), by striking ``subparagraph (C)'' and inserting ``subparagraphs (C) and (D)'', and (3) by striking subparagraph (C) and inserting the following: ``(C) Phase out for applicable critical minerals other than metallurgical coal.-- ``(i) In general.--In the case of any applicable critical mineral (other than metallurgical coal) produced after December 31, 2030, the amount determined under this subsection with respect to such mineral shall be equal to the product of-- ``(I) the amount determined under paragraph (1) with respect to such mineral, as determined without regard to this subparagraph, multiplied by ``(II) the phase out percentage under clause (ii). ``(ii) Phase out percentage for applicable critical minerals other than metallurgical coal.--The phase out percentage under this clause is equal to-- ``(I) in the case of any applicable critical mineral produced during calendar year 2031, 75 percent, ``(II) in the case of any applicable critical mineral produced during calendar year 2032, 50 percent, [[Page S3840]] ``(III) in the case of any applicable critical mineral produced during calendar year 2033, 25 percent, and ``(IV) in the case of any applicable critical mineral produced after December 31, 2033, 0 percent. ``(D) Termination for wind energy components.--This section shall not apply to any wind energy component produced and sold after December 31, 2027. ``(E) Termination for metallurgical coal.--This section shall not apply to any metallurgical coal produced after December 31, 2029.''. (c) Restrictions Relating to Prohibited Foreign Entities.-- Section 45X is amended-- (1) in subsection (c)(1), by adding at the end the following new subparagraph: ``(C) Material assistance from prohibited foreign entities.--In the case of taxable years beginning after the date of enactment of this subparagraph, the term `eligible component' shall not include any property which includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52), as applied by substituting `used in a product sold before January 1, 2027' for `used in a product sold before January 1, 2030' in subparagraph (D)(iii)(V)(bb) thereof).'', and (2) in subsection (d), as amended by subsection (a) of this section, by adding at the end the following new paragraph: ``(4) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year if the taxpayer is-- ``(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(ii) a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). ``(B) Effective control.--In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such determination relates to an eligible component described in subsection (c)(1).''. (d) Modification of Definition of Battery Module.--Section 45X(c)(5)(B)(iii) is amended-- (1) in subclause (I)(bb), by striking ``and'' at the end, (2) in subclause (II), by striking the period at the end and inserting ``, and'', and (3) by adding at the end the following new subclause: ``(III) which is comprised of all other essential equipment needed for battery functionality, such as current collector assemblies and voltage sense harnesses, thermal collection assemblies, or other essential energy collection equipment.''. (e) Inclusion of Metallurgical Coal as an Applicable Critical Mineral for Purposes of the Advanced Manufacturing Production Credit.-- (1) In general.--Section 45X(c)(6) is amended-- (A) by redesignating subparagraphs (R) through (Z) as subparagraphs (S) through (AA), respectively, and (B) by inserting after subparagraph (Q) the following new subparagraph: ``(R) Metallurgical coal.--Metallurgical coal which is suitable for use in the production of steel (within the meaning of the notice published by the Department of Energy entitled `Critical Material List; Addition of Metallurgical Coal Used for Steelmaking' (90 Fed. Reg. 22711 (May 29, 2025))), regardless of whether such production occurs inside or outside of the United States.''. (2) Credit amount.--Section 45X(b)(1)(M) is amended by inserting ``(2.5 percent in the case of metallurgical coal)'' after ``10 percent''. (f) Effective Dates.-- (1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Modification of provision relating to sale of integrated components.--The amendment made by subsection (a) shall apply to components sold during taxable years beginning after December 31, 2026. SEC. 70515. RESTRICTION ON THE EXTENSION OF ADVANCED ENERGY PROJECT CREDIT PROGRAM. (a) In General.--Section 48C(e)(3)(C) is amended by striking ``shall be increased'' and inserting ``shall not be increased''. (b) Effective Date.--The amendment made by this section shall take effect on the date of enactment of this Act. Subchapter B--Enhancement of America-first Energy Policy SEC. 70521. EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT. (a) Prohibition on Foreign Feedstocks.-- (1) In general.--Section 45Z(f)(1)(A) is amended-- (A) in clause (i)(II)(bb), by striking ``and'' at the end, (B) in clause (ii), by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following new clause: ``(iii) such fuel is exclusively derived from a feedstock which was produced or grown in the United States, Mexico, or Canada.''. (2) Effective date.--The amendments made by this subsection shall apply to transportation fuel produced after December 31, 2025. (b) Prohibition on Negative Emission Rates.-- (1) In general.--Section 45Z(b)(1) is amended-- (A) by striking subparagraph (C) and inserting the following: ``(C) Rounding of emissions rate.--The Secretary may round the emissions rates under subparagraph (B) to the nearest multiple of 5 kilograms of CO2e per mmBTU.'', and (B) by adding at the end the following new subparagraph: ``(E) Prohibition on negative emission rates.--For purposes of this section, the emissions rate for a transportation fuel may not be less than zero.''. (2) Effective date.--The amendments made by this subsection shall apply to emissions rates published for transportation fuel produced after December 31, 2025. (c) Determination of Emissions Rate.-- (1) In general.--Section 45Z(b)(1)(B) is amended by adding at the end the following new clauses: ``(iv) Exclusion of indirect land use changes.-- Notwithstanding clauses (i), (ii), and (iii), the emissions rate shall be adjusted as necessary to exclude any emissions attributed to indirect land use change. Any such adjustment shall be based on regulations or methodologies determined by the Secretary. ``(v) Animal manures.--With respect to any transportation fuel which is derived from animal manure, the Secretary-- ``(I) shall provide a distinct emissions rate with respect to such fuel based on the specific animal manure feedstock, which may include dairy manure, swine manure, poultry manure, or any other sources as are determined appropriate by the Secretary, and ``(II) notwithstanding subparagraph (E), may provide an emissions rate that is less than zero.''. (2) Conforming amendment.--Section 45Z(b)(1)(B)(i) is amended by striking ``clauses (ii) and (iii)'' and inserting ``clauses (ii), (iii), (iv), and (v)''. (3) Effective date.--The amendments made by this subsection shall apply to emissions rates published for transportation fuel produced after December 31, 2025. (d) Extension of Clean Fuel Production Credit.--Section 45Z(g) is amended by striking ``December 31, 2027'' and inserting ``December 31, 2029''. (e) Preventing Double Credit.--Section 45Z(d)(5) is amended-- (1) in subparagraph (A)-- (A) in clause (ii), by striking ``and'' at the end, (B) in clause (iii), by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following new clause: ``(iv) is not produced from a fuel for which a credit under this section is allowable.'', and (2) by adding at the end the following new subparagraph: ``(C) Regulations and guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of subparagraph (A)(iv).''. (f) Sales to Unrelated Persons.--Section 45Z(f)(3) is amended by adding at the end the following: ``The Secretary may prescribe additional related person rules similar to the rule described in the preceding sentence for entities which are not described in such sentence, including rules for related persons with respect to which the taxpayer has reason to believe will sell fuel to an unrelated person in a manner described in subsection (a)(4).''. (g) Treatment of Sustainable Aviation Fuel.-- (1) Coordination of credits.-- (A) In general.--Section 45Z(a)(3) is amended-- (i) in the heading, by striking ``Special'' and inserting ``Adjusted'', and (ii) by adding at the end the following new subparagraph: ``(C) Coordination of credits.--In the case of a transportation fuel which is sustainable aviation fuel which is sold before October 1, 2025, the amount of the credit determined under paragraph (1) with respect to any gallon of such fuel shall be reduced by an amount equal to the amount of the sustainable aviation fuel credit allowable under section 6426(k)(1).''. (B) Effective date.--The amendments made by this paragraph shall apply to fuel sold after December 31, 2024. (2) Elimination of special rate.-- (A) In general.--Section 45Z(a)(3), as amended by paragraph (1), is amended by-- (i) striking subparagraph (A), and (ii) by redesignating subparagraph (C) as subparagraph (A). (B) Conforming amendment.--Section 45Z(c)(1) is amended by striking ``, the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii)'' and inserting ``and the $1.00 amount in subsection (a)(2)(B)''. (C) Effective date.--The amendments made by this paragraph shall apply to fuel produced after December 31, 2025. (h) Sustainable Aviation Fuel Credit.--Section 6426(k) is amended by adding at the end the following new paragraph: ``(4) Termination.--This subsection shall not apply to any sale or use for any period after September 30, 2025.''. (i) Registration of Producers of Fuel Eligible for Clean Fuel Production Credit.-- [[Page S3841]] (1) In general.--Section 13704(b)(5) of Public Law 117-169 is amended by striking ``after `section 6426(k)(3)),' '' and inserting ``after `section 40B),' ''. (2) Effective date.--The amendment made by this subsection shall apply to transportation fuel produced after December 31, 2024. (j) Extension and Modification of Small Agri-biodiesel Producer Credit.-- (1) In general.--Section 40A is amended-- (A) in subsection (b)(4)-- (i) in subparagraph (A), by striking ``10 cents'' and inserting ``20 cents'', (ii) in subparagraph (B), by inserting ``in a manner which complies with the requirements under section 45Z(f)(1)(A)(iii)'' after ``produced by an eligible small agri-biodiesel producer'', and (iii) by adding at the end the following new subparagraph: ``(D) Coordination with clean fuel production credit.--The credit determined under this paragraph with respect to any gallon of fuel shall be in addition to any credit determined under section 45Z with respect to such gallon of fuel.'', and (B) in subsection (g), by inserting ``(or, in the case of the small agri-biodiesel producer credit, any sale or use after December 31, 2026)'' after ``December 31, 2024''. (2) Transfer of credit.--Section 6418(f)(1)(A) is amended by adding at the end the following new clause: ``(xii) So much of the biodiesel fuels credit determined under section 40A which consists of the small agri-biodiesel producer credit determined under subsection (b)(4) of such section.''. (3) Effective date.--The amendments made by this subsection shall apply to fuel sold or used after June 30, 2025. (k) Restrictions Relating to Prohibited Foreign Entities.-- (1) In general.--Section 45Z(f) is amended by adding at the end the following new paragraph: ``(8) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). ``(B) Other prohibited foreign entities.--No credit shall be determined under subsection (a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign- influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof).''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after the date of enactment of this Act. SEC. 70522. RESTRICTIONS ON CARBON OXIDE SEQUESTRATION CREDIT. (a) Restrictions Relating to Prohibited Foreign Entities.-- Section 45Q(f) is amended by adding at the end the following new paragraph: ``(10) Restrictions relating to prohibited foreign entities.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is-- ``(A) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(B) a foreign-influenced entity (as defined in section 7701(a)(51)(D), determined without regard to clause (i)(II) thereof).''. (b) Parity for Different Uses and Utilizations of Qualified Carbon Oxide.--Section 45Q is amended-- (1) in subsection (a)-- (A) in paragraph (2)(B)(ii), by adding ``and'' at the end, (B) in paragraph (3), by striking subparagraph (B) and inserting the following: ``(B)(i) disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in clause (ii) or (iii), ``(ii) used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project and disposed of by the taxpayer in secure geological storage, or ``(iii) utilized by the taxpayer in a manner described in subsection (f)(5).'', and (C) by striking paragraph (4), (2) in subsection (b)-- (A) in paragraph (1)-- (i) by striking subparagraph (A) and inserting the following: ``(A) In general.--Except as provided in subparagraph (B) or (C), the applicable dollar amount shall be an amount equal to-- ``(i) for any taxable year beginning in a calendar year after 2024 and before 2027, $17, and ``(ii) for any taxable year beginning in a calendar year after 2026, an amount equal to the product of $17 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting `2025' for `1990'.'', and (ii) in subparagraph (B), by striking ``shall be applied'' and all that follows through the period and inserting ``shall be applied by substituting `$36' for `$17' each place it appears.'', (B) in paragraph (2)(B), by striking ``paragraphs (3)(A) and (4)(A)'' and inserting ``paragraph (3)(A)'', and (C) in paragraph (3), by striking ``the dollar amounts applicable under paragraph (3) or (4)'' and inserting ``the dollar amount applicable under paragraph (3)'', (3) in subsection (f)-- (A) in paragraph (5)(B)(i), by striking ``(4)(B)(ii)'' and inserting ``(3)(B)(iii)'', and (B) in paragraph (9), by striking ``paragraphs (3) and (4) of subsection (a)'' and inserting ``subsection (a)(3)'', and (4) in subsection (h)(3)(A)(ii), by striking ``paragraph (3)(A) or (4)(A) of subsection (a)'' and inserting ``subsection (a)(3)(A)''. (c) Conforming Amendment.--Section 6417(d)(3)(C)(i)(II)(bb) is amended by striking ``paragraph (3)(A) or (4)(A) of section 45Q(a)'' and inserting ``section 45Q(a)(3)(A)''. (d) Effective Dates.-- (1) Restrictions relating to prohibited foreign entities.-- The amendment made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Parity for different uses and utilizations of qualified carbon oxide.--The amendments made subsections (b) and (c) shall apply to facilities or equipment placed in service after the date of enactment of this Act. SEC. 70523. INTANGIBLE DRILLING AND DEVELOPMENT COSTS TAKEN INTO ACCOUNT FOR PURPOSES OF COMPUTING ADJUSTED FINANCIAL STATEMENT INCOME. (a) In General.--Section 56A(c)(13) is amended-- (1) by striking subparagraph (A) and inserting the following: ``(A) reduced by-- ``(i) depreciation deductions allowed under section 167 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the year, and ``(ii) any deduction allowed for expenses under section 263(c) (including any deduction for such expenses under section 59(e) or 291(b)(2)) with respect to property described therein to the extent of the amount allowed as deductions in computing taxable income for the year, and'', and (2) by striking subparagraph (B)(i) and inserting the following: ``(i) to disregard any amount of-- ``(I) depreciation expense that is taken into account on the taxpayer's applicable financial statement with respect to such property, and ``(II) depletion expense that is taken into account on the taxpayer's applicable financial statement with respect to the intangible drilling and development costs of such property, and''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70524. INCOME FROM HYDROGEN STORAGE, CARBON CAPTURE, ADVANCED NUCLEAR, HYDROPOWER, AND GEOTHERMAL ENERGY ADDED TO QUALIFYING INCOME OF CERTAIN PUBLICLY TRADED PARTNERSHIPS. (a) In General.--Section 7704(d)(1)(E) is amended-- (1) by striking ``income and gains derived from the exploration'' and inserting the following: ``income and gains derived from-- ``(i) the exploration''. (2) by inserting ``or'' before ``industrial source'', and (3) by striking ``or the transportation or storage'' and all that follows and inserting the following: ``(ii) the transportation or storage of-- ``(I) any fuel described in subsection (b), (c), (d), (e), or (k) of section 6426, or any alcohol fuel defined in section 6426(b)(4)(A) or any biodiesel fuel as defined in section 40A(d)(1) or sustainable aviation fuel as defined in section 40B(d)(1), or ``(II) liquified hydrogen or compressed hydrogen, ``(iii) in the case of a qualified facility (as defined in section 45Q(d), without regard to any date by which construction of the facility or equipment is required to begin) not less than 50 percent of the total carbon oxide production of which is qualified carbon oxide (as defined in section 45Q(c))-- ``(I) the generation, availability for such generation, or storage of electric power at such facility, or ``(II) the capture of carbon dioxide by such facility, ``(iv) the production of electricity from any advanced nuclear facility (as defined in section 45J(d)(2)), ``(v) the production of electricity or thermal energy exclusively using a qualified energy resource described in subparagraph (D) or (H) of section 45(c)(1), or ``(vi) the operation of energy property described in clause (iii) or (vii) of section 48(a)(3)(A) (determined without regard to any requirement under such section with respect to the date on which construction of property begins).''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70525. ALLOW FOR PAYMENTS TO CERTAIN INDIVIDUALS WHO DYE FUEL. (a) In General.--Subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: ``SEC. 6435. DYED FUEL. ``(a) In General.--If a person establishes to the satisfaction of the Secretary that such person meets the requirements of subsection (b) with respect to diesel fuel or kerosene, then the Secretary shall pay to such person an amount (without interest) equal to the tax described in subsection (b)(2)(A) with respect to such diesel fuel or kerosene. ``(b) Requirements.-- ``(1) In general.--A person meets the requirements of this subsection with respect to [[Page S3842]] diesel fuel or kerosene if such person removes from a terminal eligible indelibly dyed diesel fuel or kerosene. ``(2) Eligible indelibly dyed diesel fuel or kerosene defined.--The term `eligible indelibly dyed diesel fuel or kerosene' means diesel fuel or kerosene-- ``(A) with respect to which a tax under section 4081 was previously paid (and not credited or refunded), and ``(B) which is exempt from taxation under section 4082(a). ``(c) Cross Reference.--For civil penalty for excessive claims under this section, see section 6675.''. (b) Conforming Amendments.-- (1) Section 6206 is amended-- (A) by striking ``or 6427'' each place it appears and inserting ``6427, or 6435'', and (B) by striking ``6420 and 6421'' and inserting ``6420, 6421, and 6435''. (2) Section 6430 is amended-- (A) by striking ``or'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``, or'', and by adding at the end the following new paragraph: ``(4) which are removed as eligible indelibly dyed diesel fuel or kerosene under section 6435.''. (3) Section 6675 is amended-- (A) in subsection (a), by striking ``or 6427 (relating to fuels not used for taxable purposes)'' and inserting ``6427 (relating to fuels not used for taxable purposes), or 6435 (relating to eligible indelibly dyed fuel)'', and (B) in subsection (b)(1), by striking ``6421, or 6427,'' and inserting ``6421, 6427, or 6435,''. (4) The table of sections for subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: ``Sec. 6435. Dyed fuel.''. (c) Effective Date.--The amendments made by this section shall apply to eligible indelibly dyed diesel fuel or kerosene removed on or after the date that is 180 days after the date of the enactment of this section. Subchapter C--Other Reforms SEC. 70531. MODIFICATIONS TO DE MINIMIS ENTRY PRIVILEGE FOR COMMERCIAL SHIPMENTS. (a) Civil Penalty.-- (1) Additional penalty imposed.--Section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) is amended by adding at the end the following new subsection: ``(c) Any person who enters, introduces, facilitates, or attempts to introduce an article into the United States using the privilege of this section, the importation of which violates any other provision of United States customs law, shall be assessed, in addition to any other penalty permitted by law, a civil penalty of up to $5,000 for the first violation and up to $10,000 for each subsequent violation.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect 30 days after the date of the enactment of this Act. (b) Repeal of Commercial Shipment Exception.-- (1) Repeal.--Section 321(a)(2) of such Act (19 U.S.C. 1321(a)(2)) is amended by striking ``of this Act, or'' and all that follows through ``subdivision (2); and'' and inserting ``of this Act; and''. (2) Conforming repeal.--Subsection (c) of such section 321, as added by subsection (a) of this section, is repealed. (3) Effective date.--The amendments made by this subsection shall take effect on July 1, 2027. CHAPTER 6--ENHANCING DEDUCTION AND INCOME TAX CREDIT GUARDRAILS, AND OTHER REFORMS SEC. 70601. MODIFICATION AND EXTENSION OF LIMITATION ON EXCESS BUSINESS LOSSES OF NONCORPORATE TAXPAYERS. (a) Rule Made Permanent.--Section 461(l)(1) is amended by striking ``and before January 1, 2029,'' each place it appears. (b) Adjustment of Amounts for Calculation of Excess Business Loss.--Section 461(l)(3)(C) is amended-- (1) in the matter preceding clause (i), by striking ``December 31, 2018'' and inserting ``December 31, 2025'', and (2) in clause (ii), by striking ``2017'' and inserting ``2024''. (c) Effective Dates.-- (1) Rule made permanent.--The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2026. (2) Adjustment of amounts for calculation of excess business loss.--The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2025. SEC. 70602. TREATMENT OF PAYMENTS FROM PARTNERSHIPS TO PARTNERS FOR PROPERTY OR SERVICES. (a) In General.--Section 707(a)(2) is amended by striking ``Under regulations prescribed'' and inserting ``Except as provided''. (b) Effective Date.--The amendment made by this section shall apply to services performed, and property transferred, after the date of the enactment of this Act. (c) Rule of Construction.--Nothing in this section, or the amendments made by this section, shall be construed to create any inference with respect to the proper treatment under section 707(a) of the Internal Revenue Code of 1986 with respect to payments from a partnership to a partner for services performed, or property transferred, on or before the date of the enactment of this Act. SEC. 70603. EXCESSIVE EMPLOYEE REMUNERATION FROM CONTROLLED GROUP MEMBERS AND ALLOCATION OF DEDUCTION. (a) Application of Aggregation Rules.--Section 162(m) is amended by adding at the end the following new paragraph: ``(7) Remuneration from controlled group members.-- ``(A) In general.--In the case of any publicly held corporation which is a member of a controlled group-- ``(i) paragraph (1) shall be applied by substituting `specified covered employee' for `covered employee', and ``(ii) if any person which is a member of such controlled group (other than such publicly held corporation) provides applicable employee remuneration to an individual who is a specified covered employee of such controlled group and the aggregate amount described in subparagraph (B)(ii) with respect to such specified covered employee exceeds $1,000,000-- ``(I) paragraph (1) shall apply to such person with respect to such remuneration, and ``(II) paragraph (1) shall apply to such publicly held corporation and to each such related person by substituting `the allocable limitation amount' for `$1,000,000'. ``(B) Allocable limitation amount.--For purposes of this paragraph, the term `allocable limitation amount' means, with respect to any member of the controlled group referred to in subparagraph (A) with respect to any specified covered employee of such controlled group, the amount which bears the same ratio to $1,000,000 as-- ``(i) the amount of applicable employee remuneration provided by such member with respect to such specified covered employee, bears to ``(ii) the aggregate amount of applicable employee remuneration provided by all such members with respect to such specified covered employee. ``(C) Specified covered employee.--For purposes of this paragraph, the term `specified covered employee' means, with respect to any controlled group-- ``(i) any employee described in subparagraph (A), (B), or (D) of paragraph (3), with respect to the publicly held corporation which is a member of such controlled group, and ``(ii) any employee who would be described in subparagraph (C) of paragraph (3) if such subparagraph were applied by taking into account the employees of all members of the controlled group. ``(D) Controlled group.--For purposes of this paragraph, the term `controlled group' means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70604. THIRD PARTY LITIGATION FUNDING REFORM. (a) In General.--Subtitle D, as amended by the preceding provisions of this Act, is amended by adding at the end the following new chapter: ``CHAPTER 50C--LITIGATION FINANCING ``Sec. 5000F-1. Tax imposed. ``Sec. 5000F-2. Definitions. ``Sec. 5000F-3. Special rules. ``SEC. 5000F-1. TAX IMPOSED. ``(a) In General.--A tax is hereby imposed for each taxable year in an amount equal to 31.8 percent of any qualified litigation proceeds received by a covered party. ``(b) Application of Tax for Pass-through Entities.--In the case of a covered party that is a partnership, S corporation, or other pass-through entity, the tax imposed under subsection (a) shall be applied at the entity level. ``SEC. 5000F-2. DEFINITIONS. ``In this chapter-- ``(1) Civil action.-- ``(A) In general.--The term `civil action' means any civil action, administrative proceeding, claim, or cause of action. ``(B) Multiple actions.--The term `civil action' may, unless otherwise indicated, include more than 1 civil action. ``(2) Covered party.-- ``(A) In general.--The term `covered party' means, with respect to any civil action, any third party (including an individual, corporation, partnership, or sovereign wealth fund) to such action which-- ``(i) receives funds pursuant to a litigation financing agreement, and ``(ii) is not an attorney representing a party to such civil action. ``(B) Inclusion of domestic and foreign entities.-- Subparagraph (A) shall apply to any third party without regard to whether such party is created or organized in the United States or under the law of the United States or of any State. ``(3) Litigation financing agreement.-- ``(A) In general.--The term `litigation financing agreement' means, with respect to any civil action, a written agreement-- ``(i) whereby a third party agrees to provide funds to one of the named parties or any law firm affiliated with such civil action, and ``(ii) which creates a direct or collateralized interest in the proceeds of such action (by settlement, verdict, judgment or otherwise) which-- ``(I) is based, in whole or in part, on a funding-based obligation to-- [[Page S3843]] ``(aa) such civil action, ``(bb) the appearing counsel, ``(cc) any contractual co-counsel, or ``(dd) the law firm of such counsel or co-counsel, and ``(II) is executed with-- ``(aa) any attorney representing a party to such civil action, ``(bb) any co-counsel in such civil action with a contingent fee interest in the representation of such party, ``(cc) any third party that has a collateral-based interest in the contingency fees of the counsel or co-counsel firm which is related, in whole or part, to the fees derived from representing such party, or ``(dd) any named party in such civil action. ``(B) Substantially similar agreements.--The term `litigation financing agreement' shall include any contract (including any option, forward contract, futures contract, short position, swap, or similar contract) or other agreement which, as determined by the Secretary, is substantially similar to an agreement described in subparagraph (A). ``(C) Exceptions.--The term `litigation financing agreement' shall not include any agreement-- ``(i) under which the total amount of funds described in subparagraph (A)(i) with respect to an individual civil action is less than $10,000, or ``(ii) in which the third party described in subparagraph (A)-- ``(I) has a right to receive proceeds which are derived from, or pursuant to, such agreement that are limited to-- ``(aa) repayment of the principal of a loan, ``(bb) repayment of the principal of a loan plus any interest on such loan, provided that the rate of interest does not exceed the greater of-- ``(AA) 7 percent, or ``(BB) a rate equal to twice the average annual yield on 30-year United States Treasury securities (as determined for the year preceding the date on which such agreement was executed), or ``(cc) reimbursement of attorney's fees, or ``(II) bears a relationship described in section 267(b) to the named party receiving the payment described in subparagraph (A)(i). ``(4) Qualified litigation proceeds.-- ``(A) In general.--The term `qualified litigation proceeds' means, with respect to any taxable year, an amount equal to the realized gains, net income, or other profit received by a covered party during such taxable year which is derived from, or pursuant to, any litigation financing agreement. ``(B) Anti-netting.--Any gains, income, or profit described in subparagraph (A) shall not be reduced or offset by any ordinary or capital loss in the taxable year. ``(C) Prohibition on exclusion of certain amounts.--In determining the amount of realized gain under subparagraph (A), amounts described in section 104(a)(2) and 892(a)(1) shall not be excluded. ``SEC. 5000F-3. SPECIAL RULES. ``(a) Withholding of Tax on Litigation Proceeds.--Any applicable person having the control, receipt, or custody of any proceeds from a civil action (by settlement, judgment, or otherwise) with respect to which such person had entered into a litigation financing agreement shall deduct and withhold from such proceeds a tax equal to 15.9 percent of the qualified litigation proceeds which are required to be paid to a third party pursuant to such agreement. ``(b) Applicable Person.--For purposes of this section, the term `applicable person' means any person which-- ``(1) is a named party in a civil action or a law firm affiliated with such civil action, and ``(2) has entered into a litigation financing agreement with respect to such civil action. ``(c) Application of Withholding Provisions.-- ``(1) Liability for withheld tax.--Every person required to deduct and withhold any tax under this chapter is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payments made in accordance with the provisions of this chapter. ``(2) Withheld tax as credit to recipient of qualified litigation proceeds.--Qualified litigation proceeds on which any tax is required to be withheld at the source under this chapter shall be included in the return of the recipient of such proceeds, but any amount of tax so withheld shall be credited against the amount of tax as computed in such return. ``(3) Tax paid by recipient of qualified litigation proceeds.--If-- ``(A) any person, in violation of the provisions of this chapter, fails to deduct and withhold any tax under this chapter, and ``(B) thereafter the tax against which such tax may be credited is paid, the tax so required to be deducted and withheld shall not be collected from such person, but this paragraph shall in no case relieve such person from liability for interest or any penalties or additions to the tax otherwise applicable in respect of such failure to deduct and withhold. ``(4) Refunds and credits with respect to withheld tax.-- Where there has been an overpayment of tax under this chapter, any refund or credit made under chapter 65 shall be made to the withholding agent unless the amount of such tax was actually withheld by the withholding agent.''. (b) Exclusion From Definition of Capital Asset.--Section 1221(a) is amended-- (1) in paragraph (7), by striking ``or'' at the end, (2) in paragraph (8), by striking the period at the end and inserting ``; or'', and (3) by adding at the end the following new paragraph: ``(9) any financial arrangement created by, or any proceeds derived from, a litigation financing agreement (as defined under section 5000F-2).''. (c) Removal From Gross Income.--Part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 139L the following new section: ``SEC. 139M. QUALIFIED LITIGATION PROCEEDS. ``Gross income shall not include any qualified litigation proceeds (as defined in section 5000F-2).''. (d) Clerical Amendments.-- (1) Section 7701(a)(16) is amended by inserting ``5000F- 3(c)(1),'' before ``1441''. (2) The table of chapters for subtitle D, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to chapter 50B the following new item: ``chapter 50c--litigation financing''. (3) The table of sections for part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 139L the following new item: ``Sec. 139M. Qualified litigation proceeds.''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70605. EXCISE TAX ON CERTAIN REMITTANCE TRANSFERS. (a) In General.--Chapter 36 is amended by inserting after subchapter B the following new subchapter: ``Subchapter C--Remittance Transfers ``Sec. 4475. Imposition of tax. ``SEC. 4475. IMPOSITION OF TAX. ``(a) In General.--There is hereby imposed on any remittance transfer a tax equal to 1 percent of the amount of such transfer. ``(b) Payment of Tax.-- ``(1) In general.--The tax imposed by this section with respect to any remittance transfer shall be paid by the sender with respect to such transfer. ``(2) Collection of tax.--The remittance transfer provider with respect to any remittance transfer shall collect the amount of the tax imposed under subsection (a) with respect to such transfer from the sender and remit such tax quarterly to the Secretary at such time and in such manner as provided by the Secretary, ``(3) Secondary liability.--Where any tax imposed by subsection (a) is not paid at the time the transfer is made, then to the extent that such tax is not collected, such tax shall be paid by the remittance transfer provider. ``(c) Tax Limited to Cash and Similar Instruments.--The tax imposed under subsection (a) shall apply only to any remittance transfer for which the sender provides cash, a money order, a cashier's check, or any other similar physical instrument (as determined by the Secretary) to the remittance transfer provider. ``(d) Nonapplication to Certain Noncash Remittance Transfers.--Subsection (a) shall not apply to any remittance transfer for which the funds being transferred are-- ``(1) withdrawn from an account held in or by a financial institution-- ``(A) which is described in subparagraphs (A) through (H) of section 5312(a)(2) of title 31, United States Code, and ``(B) that is subject to the requirements under subchapter II of chapter 53 of such title, or ``(2) funded with a debit card or a credit card which is issued in the United States. ``(e) Definitions.--For purposes of this section-- ``(1) In general.--The terms `remittance transfer', `remittance transfer provider', and `sender' shall each have the respective meanings given such terms by section 919(g) of the Electronic Fund Transfer Act (15 U.S.C. 1693o-1(g)). ``(2) Credit card.--The term `credit card' has the same meaning given such term under section 920(c)(3) of the Electronic Fund Transfer Act (15 U.S.C. 1693o-2(c)(3)). ``(3) Debit card.--The term `debit card' has the same meaning given such term under section 920(c)(2) of the Electronic Fund Transfer Act (15 U.S.C. 1693o-2(c)(2)), without regard to subparagraph (B) of such section. ``(f) Application of Anti-conduit Rules.--For purposes of section 7701(l), with respect to any multiple-party arrangements involving the sender, a remittance transfer shall be treated as a financing transaction.''. (b) Conforming Amendment.--The table of subchapters for chapter 36 is amended by inserting after the item relating to subchapter B the following new item: ``subchapter c--remittance transfers''. (c) Effective Date.--The amendments made by this section shall apply to transfers made after December 31, 2025. SEC. 70606. ENFORCEMENT PROVISIONS WITH RESPECT TO COVID- RELATED EMPLOYEE RETENTION CREDITS. (a) Assessable Penalty for Failure to Comply With Due Diligence Requirements.-- (1) In general.--Any COVID-ERTC promoter which provides aid, assistance, or advice with respect to any COVID-ERTC document and which fails to comply with due diligence requirements imposed by the Secretary with respect to determining eligibility for, or the amount of, any credit or advance payment of a credit under section 3134 [[Page S3844]] of the Internal Revenue Code of 1986, shall pay a penalty of $1,000 for each such failure. (2) Due diligence requirements.--The due diligence requirements referred to in paragraph (1) shall be similar to the due diligence requirements imposed under section 6695(g) of the Internal Revenue Code of 1986. (3) Restriction to documents used in connection with returns or claims for refund.--Paragraph (1) shall not apply with respect to any COVID-ERTC document unless such document constitutes, or relates to, a return or claim for refund. (4) Treatment as assessable penalty, etc.--For purposes of the Internal Revenue Code of 1986, the penalty imposed under paragraph (1) shall be treated as a penalty which is imposed under section 6695(g) of such Code and assessed under section 6201 of such Code. (5) Secretary.--For purposes of this subsection, the term ``Secretary'' means the Secretary of the Treasury or the Secretary's delegate. (b) COVID-ERTC Promoter.--For purposes of this section-- (1) In general.--The term ``COVID-ERTC promoter'' means, with respect to any COVID-ERTC document, any person which provides aid, assistance, or advice with respect to such document if-- (A) such person charges or receives a fee for such aid, assistance, or advice which is based on the amount of the refund or credit with respect to such document and, with respect to such person's taxable year in which such person provided such assistance or the preceding taxable year, the aggregate of the gross receipts of such person for aid, assistance, and advice with respect to all COVID-ERTC documents exceeds 20 percent of the gross receipts of such person for such taxable year, or (B) with respect to such person's taxable year in which such person provided such assistance or the preceding taxable year-- (i) the aggregate of the gross receipts of such person for aid, assistance, and advice with respect to all COVID-ERTC documents exceeds 50 percent of the gross receipts of such person for such taxable year, or (ii) both-- (I) such aggregate gross receipts exceed 20 percent of the gross receipts of such person for such taxable year, and (II) the aggregate of the gross receipts of such person for aid, assistance, and advice with respect to all COVID-ERTC documents (determined after application of paragraph (3)) exceeds $500,000. (2) Exception for certified professional employer organizations.--The term ``COVID-ERTC promoter'' shall not include a certified professional employer organization (as defined in section 7705 of the Internal Revenue Code of 1986). (3) Aggregation rule.--For purposes of paragraph (1), all persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986, or subsection (m) or (o) of section 414 of such Code, shall be treated as 1 person. (4) Short taxable years.--In the case of any taxable year of less than 12 months, a person shall be treated as a COVID- ERTC promoter if such person is described in paragraph (1) either with respect to such taxable year or by treating any reference to such taxable year as a reference to the calendar year in which such taxable year begins. (c) COVID-ERTC Document.--For purposes of this section, the term ``COVID-ERTC document'' means any return, affidavit, claim, or other document related to any credit or advance payment of a credit under section 3134 of the Internal Revenue Code of 1986, including any document related to eligibility for, or the calculation or determination of any amount directly related to, any such credit or advance payment. (d) Limitation on Credits and Refunds.--Notwithstanding section 6511 of the Internal Revenue Code of 1986, no credit under section 3134 of the Internal Revenue Code of 1986 shall be allowed, and no refund with respect to any such credit shall be made, after the date of the enactment of this Act, unless a claim for such credit or refund was filed by the taxpayer on or before January 31, 2024. (e) Extension of Limitation on Assessment.--Section 3134(l) is amended to read as follows: ``(l) Extension of Limitation on Assessment.-- ``(1) In general.--Notwithstanding section 6501, the limitation on the time period for the assessment of any amount attributable to a credit claimed under this section shall not expire before the date that is 6 years after the latest of-- ``(A) the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed, ``(B) the date on which such return is treated as filed under section 6501(b)(2), or ``(C) the date on which the claim for credit or refund with respect to such credit is made. ``(2) Deduction for wages taken into account in determining improperly claimed credit.-- ``(A) In general.--Notwithstanding section 6511, in the case of an assessment attributable to a credit claimed under this section, the limitation on the time period for credit or refund of any amount attributable to a deduction for improperly claimed ERTC wages shall not expire before the time period for such assessment expires under paragraph (1). ``(B) Improperly claimed ertc wages.--For purposes of this paragraph, the term `improperly claimed ERTC wages' means, with respect to an assessment attributable to a credit claimed under this section, the wages with respect to which a deduction would not have been allowed if the portion of the credit to which such assessment relates had been properly claimed.''. (f) Amendment to Penalty for Erroneous Claim for Refund or Credit.--Section 6676(a) is amended by striking ``income tax'' and inserting ``income or employment tax''. (g) Effective Dates.-- (1) In general.--The provisions of this section shall apply to aid, assistance, and advice provided after the date of the enactment of this Act. (2) Limitation on credits and refunds.--Subsection (d) shall apply to credits and refunds allowed or made after the date of the enactment of this Act. (3) Extension of limitation on assessment.--The amendment made by subsection (e) shall apply to assessments made after the date of the enactment of this Act. (4) Amendment to penalty for erroneous claim for refund or credit.--The amendment made by subsection (f) shall apply to claims for credit or refund after the date of the enactment of this Act. (h) Regulations.--The Secretary (as defined in subsection (a)(5)) shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section (and the amendments made by this section). SEC. 70607. SOCIAL SECURITY NUMBER REQUIREMENT FOR AMERICAN OPPORTUNITY AND LIFETIME LEARNING CREDITS. (a) Social Security Number of Taxpayer Required.--Section 25A(g)(1) is amended to read as follows: ``(1) Identification requirement.-- ``(A) Social security number requirement.--No credit shall be allowed under subsection (a) to an individual unless the individual includes on the return of tax for the taxable year-- ``(i) such individual's social security number, and ``(ii) in the case of a credit with respect to the qualified tuition and related expenses of an individual other than the taxpayer or the taxpayer's spouse, the name and social security number of such individual. ``(B) Institution.--No American Opportunity Tax Credit shall be allowed under this section unless the taxpayer includes the employer identification number of any institution to which the taxpayer paid qualified tuition and related expenses taken into account under this section on the return of tax for the taxable year. ``(C) Social security number defined.--For purposes of this paragraph, the term `social security number' shall have the meaning given such term in section 24(h)(7).''. (b) Omission Treated as Mathematical or Clerical Error.-- Section 6213(g)(2)(J) is amended by striking ``TIN'' and inserting ``social security number or employer identification number''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70608. TASK FORCE ON THE REPLACEMENT OF DIRECT FILE. Out of any money in the Treasury not otherwise appropriated, there is hereby appropriated for the fiscal year ending September 30, 2026, $15,000,000, to remain available until September 30, 2026, for necessary expenses of the Department of the Treasury to deliver to Congress, within 90 days following the date of the enactment of this Act, a report on-- (1) the cost of enhancing and establishing public-private partnerships which provide for free tax filing for up to 70 percent of all taxpayers calculated by adjusted gross income, and to replace any direct e-file programs run by the Internal Revenue Service; (2) taxpayer opinions and preferences regarding a taxpayer- funded, government-run service or a free service provided by the private sector; (3) assessment of the feasibility of a new approach, how to make the options consistent and simple for taxpayers across all participating providers, and how to provide features to address taxpayer needs; and (4) the cost (including options for differential coverage based on taxpayer adjusted gross income and return complexity) of developing and running a free direct e-file tax return system, including costs to build and administer each release. Subtitle B--Health CHAPTER 1--MEDICAID Subchapter A--Reducing Fraud and Improving Enrollment Processes SEC. 71101. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO ELIGIBILITY AND ENROLLMENT IN MEDICARE SAVINGS PROGRAMS. The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on September 21, 2023, and titled ``Streamlining Medicaid; Medicare Savings Program Eligibility Determination and Enrollment'' (88 Fed. Reg. 65230) and shall not implement, administer, or enforce the amendments made to the following sections of title 42, Code of Federal Regulations: (1) Section 406.21(c). (2) Section 435.4. (3) Section 435.601. (4) Section 435.909. [[Page S3845]] (5) Section 435.911. (6) Section 435.952. SEC. 71102. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO ELIGIBILITY AND ENROLLMENT FOR MEDICAID, CHIP, AND THE BASIC HEALTH PROGRAM. The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on April 2, 2024, and titled ``Medicaid Program; Streamlining the Medicaid, Children's Health Insurance Program, and Basic Health Program Application, Eligibility Determination, Enrollment, and Renewal Processes'' (89 Fed. Reg. 22780) and shall not implement, administer, or enforce the amendments made to the following sections of title 42, Code of Federal Regulations: (1) Part 431.-- (A) Section 431.10(c)(1)(i)(A)(2). (B) Section 431.10(c)(1)(i)(A)(3). (C) Section 431.213(d). (2) Part 435.-- (A) Section 435.222. (B) Section 435.223. (C) Section 435.407. (D) Section 435.601. (E) Section 435.608. (F) Section 435.831(g). (G) Section 435.907. (H) Section 435.911(c). (I) Section 435.912. (J) Section 435.916. (K) Section 435.919. (L) Section 435.940. (M) Section 435.952. (N) Section 435.1200. (3) Part 436.-- (A) Section 436.608. (B) Section 436.831(g). (4) Part 447.--Section 447.56(a)(1)(v). (5) Part 457.-- (A) Section 457.65(d). (B) Section 457.340(d). (C) Section 457.340(f). (D) Section 457.344. (E) Section 457.348. (F) Section 457.350. (G) Section 457.480. (H) Section 457.570. (I) Section 457.805(b). (J) Section 457.810(a). (K) Section 457.960. (L) Section 457.1140(d)(4). (M) Section 457.1170. (N) Section 457.1180. SEC. 71103. REDUCING DUPLICATE ENROLLMENT UNDER THE MEDICAID AND CHIP PROGRAMS. (a) Medicaid.-- (1) In general.--Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended-- (A) in subsection (a)-- (i) in paragraph (86), by striking ``and'' at the end; (ii) in paragraph (87), by striking the period and inserting ``; and''; and (iii) by inserting after paragraph (87) the following new paragraph: ``(88) provide-- ``(A) beginning not later than January 1, 2027, in the case of 1 of the 50 States and the District of Columbia, for a process to regularly obtain address information for individuals enrolled under such plan (or a waiver of such plan) in accordance with subsection (vv); and ``(B) beginning not later than October 1, 2029-- ``(i) for the State to submit to the system established by the Secretary under subsection (uu), with respect to an individual enrolled or seeking to enroll under such plan, not less frequently than once each month and during each determination or redetermination of the eligibility of such individual for medical assistance under such plan (or waiver of such plan)-- ``(I) the social security number of such individual, if such individual has a social security number and is required to provide such number to enroll under such plan (or waiver); and ``(II) such other information with respect to such individual as determined necessary by the Secretary for purposes of preventing individuals from simultaneously being enrolled under State plans (or waivers of such plans) of multiple States; ``(ii) for the use of such system to prevent such simultaneous enrollment; and ``(iii) in the case that such system indicates that an individual enrolled or seeking to enroll under such plan (or waiver of such plan) is enrolled under a State plan (or waiver of such a plan) of another State, for the taking of appropriate action (as determined by the Secretary) to identify whether such an individual resides in the State and disenroll an individual from the State plan of such State if such individual does not reside in such State (unless such individual meets such an exception as the Secretary may specify).''; and (B) by adding at the end the following new subsections: ``(uu) Prevention of Enrollment Under Multiple State Plans.-- ``(1) In general.--Not later than October 1, 2029, the Secretary shall establish a system to be utilized by the Secretary and States to prevent an individual from being simultaneously enrolled under the State plans (or waivers of such plans) of multiple States. Such system shall-- ``(A) provide for the receipt of information submitted by a State under subsection (a)(88)(B)(i); and ``(B) not less than once each month, transmit information to a State (or allow the Secretary to transmit information to a State) regarding whether an individual enrolled or seeking to enroll under the State plan of such State (or waiver of such plan) is enrolled under the State plan (or waiver of such plan) of another State. ``(2) Standards.--The Secretary shall establish such standards as determined necessary by the Secretary to limit and protect information submitted under such system and ensure the privacy of such information, consistent with subsection (a)(7). ``(3) Implementation funding.--There are appropriated to the Secretary, out of amounts in the Treasury not otherwise appropriated, in addition to amounts otherwise available-- ``(A) for fiscal year 2026, $10,000,000 for purposes of establishing the system and standards required under this subsection, to remain available until expended; and ``(B) for fiscal year 2029, $20,000,000 for purposes of maintaining such system, to remain available until expended. ``(vv) Process to Obtain Enrollee Address Information.-- ``(1) In general.--For purposes of subsection (a)(88)(A), a process to regularly obtain address information for individuals enrolled under a State plan (or a waiver of such plan) shall obtain address information from reliable data sources described in paragraph (2) and take such actions as the Secretary shall specify with respect to any changes to such address based on such information. ``(2) Reliable data sources described.--For purposes of paragraph (1), the reliable data sources described in this paragraph are the following: ``(A) Mail returned to the State by the United States Postal Service with a forwarding address. ``(B) The National Change of Address Database maintained by the United States Postal Service. ``(C) A managed care entity (as defined in section 1932(a)(1)(B)) or prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D)) that has a contract under the State plan if the address information is provided to such entity or plan directly from, or verified by such entity or plan directly with, such individual. ``(D) Other data sources as identified by the State and approved by the Secretary.''. (2) Conforming amendments.-- (A) PARIS.--Section 1903(r)(3) of the Social Security Act (42 U.S.C. 1396b(r)(3)) is amended-- (i) by striking ``In order'' and inserting ``(A) In order''; (ii) by striking ``through the Public'' and inserting ``through-- ``(i) the Public''; (iii) by striking the period at the end and inserting ``; and ``(ii) beginning October 1, 2029, the system established by the Secretary under section 1902(uu).''; and (iv) by adding at the end the following new subparagraph: ``(B) Beginning October 1, 2029, the Secretary may determine that a State is not required to have in operation an eligibility determination system which provides for data matching (for purposes of address verification under section 1902(vv)) through the system described in subparagraph (A)(i) to meet the requirements of this paragraph.''. (B) Managed care.--Section 1932 of the Social Security Act (42 U.S.C. 1396u-2) is amended by adding at the end the following new subsection: ``(j) Transmission of Address Information.--Beginning January 1, 2027, each contract under a State plan with a managed care entity (as defined in section 1932(a)(1)(B)) or with a prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D)), shall provide that such entity or plan shall promptly transmit to the State any address information for an individual enrolled with such entity or plan that is provided to such entity or plan directly from, or verified by such entity or plan directly with, such individual.''. (b) CHIP.-- (1) In general.--Section 2107(e)(1) of the Social Security Act (42 U.S.C. 1397gg(e)(1)) is amended-- (A) by redesignating subparagraphs (H) through (U) as subparagraphs (I) through (V), respectively; and (B) by inserting after subparagraph (G) the following new subparagraph: ``(H) Section 1902(a)(88) (relating to address information for enrollees and prevention of simultaneous enrollments).''. (2) Managed care.--Section 2103(f)(3) of the Social Security Act (42 U.S.C. 1397cc(f)(3)) is amended by striking ``and (e)'' and inserting ``(e), and (j)''. SEC. 71104. ENSURING DECEASED INDIVIDUALS DO NOT REMAIN ENROLLED. Section 1902 of the Social Security Act (42 U.S.C. 1396a), as amended by section 71103, is further amended-- (1) in subsection (a)-- (A) in paragraph (87), by striking ``; and'' and inserting a semicolon; (B) in paragraph (88), by striking the period at the end and inserting ``; and''; and (C) by inserting after paragraph (88) the following new paragraph: [[Page S3846]] ``(89) provide that the State shall comply with the eligibility verification requirements under subsection (ww), except that this paragraph shall apply only in the case of the 50 States and the District of Columbia.''; and (2) by adding at the end the following new subsection: ``(ww) Verification of Certain Eligibility Criteria.-- ``(1) In general.--For purposes of subsection (a)(89), the eligibility verification requirements, beginning January 1, 2028, are as follows: ``(A) Quarterly screening to verify enrollee status.--The State shall, not less frequently than quarterly, review the Death Master File (as such term is defined in section 203(d) of the Bipartisan Budget Act of 2013) or a successor system that provides such information needed to determine whether any individuals enrolled for medical assistance under the State plan (or waiver of such plan) are deceased. ``(B) Disenrollment under state plan.--If the State determines, based on information obtained from the Death Master File, that an individual enrolled for medical assistance under the State plan (or waiver of such plan) is deceased, the State shall-- ``(i) treat such information as factual information confirming the death of a beneficiary; ``(ii) disenroll such individual from the State plan (or waiver of such plan) in accordance with subsection (a)(3); and ``(iii) discontinue any payments for medical assistance under this title made on behalf of such individual (other than payments for any items or services furnished to such individual prior to the death of such individual). ``(C) Reinstatement of coverage in the event of error.--If a State determines that an individual was misidentified as deceased based on information obtained from the Death Master File and was erroneously disenrolled from medical assistance under the State plan (or waiver of such plan) based on such misidentification, the State shall immediately re-enroll such individual under the State plan (or waiver of such plan), retroactive to the date of such disenrollment. ``(2) Rule of construction.--Nothing under this subsection shall be construed to preclude the ability of a State to use other electronic data sources to timely identify potentially deceased beneficiaries, so long as the State is also in compliance with the requirements of this subsection (and all other requirements under this title relating to Medicaid eligibility determination and redetermination).''. SEC. 71105. ENSURING DECEASED PROVIDERS DO NOT REMAIN ENROLLED. Section 1902(kk)(1) of the Social Security Act (42 U.S.C. 1396a(kk)(1)) is amended-- (1) by striking ``The State'' and inserting: ``(A) In general.--The State''; and (2) by adding at the end the following new subparagraph: ``(B) Provider screening against death master file.-- Beginning January 1, 2028, as part of the enrollment (or reenrollment or revalidation of enrollment) of a provider or supplier under this title, and not less frequently than quarterly during the period that such provider or supplier is so enrolled, the State conducts a check of the Death Master File (as such term is defined in section 203(d) of the Bipartisan Budget Act of 2013) to determine whether such provider or supplier is deceased.''. SEC. 71106. PAYMENT REDUCTION RELATED TO CERTAIN ERRONEOUS EXCESS PAYMENTS UNDER MEDICAID. (a) In General.--Section 1903(u)(1) of the Social Security Act (42 U.S.C. 1396b(u)(1)) is amended-- (1) in subparagraph (A), by inserting ``for any audits conducted by the Secretary, or, at the option of the Secretary, audits conducted by the State'' after ``exceeds 0.03''; (2) in subparagraph (B)-- (A) by striking ``The Secretary'' and inserting ``(i) Subject to clause (ii), the Secretary''; and (B) by adding at the end the following new clause: ``(ii) The amount waived under clause (i) for a fiscal year may not exceed an amount equal to the erroneous excess payments for medical assistance described in subparagraph (D)(i)(II) made for such fiscal year.''. (3) in subparagraph (C), by striking ``he'' in each place it appears and inserting ``the Secretary'' in each such place; and (4) in subparagraph (D)(i)-- (A) in subclause (I), by striking ``and'' at the end; (B) in subclause (II), by striking the period at the end and inserting ``, or payments where insufficient information is available to confirm eligibility, and''; and (C) by adding at the end the following new subclause: ``(III) payments (other than payments described in subclause (I)) for items and services furnished to an individual who is not eligible for medical assistance under the State plan (or a waiver of such plan) with respect to such items and services, or payments where insufficient information is available to confirm eligibility.''. (b) Effective Date.--The amendments made by subsection (a) shall apply beginning with respect to fiscal year 2030. SEC. 71107. ELIGIBILITY REDETERMINATIONS. (a) In General.--Section 1902(e)(14) of the Social Security Act (42 U.S.C. 1396a(e)(14)) is amended by adding at the end the following new subparagraph: ``(L) Frequency of eligibility redeterminations for certain individuals.-- ``(i) In general.--Subject to clause (ii), with respect to redeterminations of eligibility for medical assistance under a State plan (or waiver of such plan) scheduled on or after the first day of the first quarter that begins after December 31, 2026, a State shall make such a redetermination once every 6 months for the following individuals: ``(I) Individuals enrolled under subsection (a)(10)(A)(i)(VIII). ``(II) Individuals described in such subsection who are otherwise enrolled under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in subsection (a)(10)(A)(i)(VIII). ``(ii) Exemption.--The requirements described in clause (i) shall not apply to any individual described in subsection (xx)(9)(A)(ii)(II). ``(iii) State defined.--For purposes of this subparagraph, the term `State' means 1 of the 50 States or the District of Columbia.''. (b) Guidance.--Not later than 180 days after the date of enactment of this section, the Secretary of Health and Human Services, acting through the Administrator of the Centers for Medicare & Medicaid Services, shall issue guidance relating to the implementation of the amendments made by this section. SEC. 71108. REVISING HOME EQUITY LIMIT FOR DETERMINING ELIGIBILITY FOR LONG-TERM CARE SERVICES UNDER THE MEDICAID PROGRAM. (a) Revising Home Equity Limit.--Section 1917(f)(1) of the Social Security Act (42 U.S.C. 1396p(f)(1)) is amended-- (1) in subparagraph (B)-- (A) by striking ``A State'' and inserting ``(i) A State''; (B) in clause (i), as inserted by subparagraph (A)-- (i) by striking `` `$500,000' '' and inserting ``the amount specified in subparagraph (A)''; and (ii) by inserting ``, in the case of an individual's home that is located on a lot that is zoned for agricultural use,'' after ``apply subparagraph (A)''; and (C) by adding at the end the following new clause: ``(ii) A State may elect, without regard to the requirements of section 1902(a)(1) (relating to statewideness) and section 1902(a)(10)(B) (relating to comparability), to apply subparagraph (A), in the case of an individual's home that is not described in clause (i), by substituting for the amount specified in such subparagraph, an amount that exceeds such amount, but does not exceed $1,000,000.''; and (2) in subparagraph (C)-- (A) by inserting ``(other than the amount specified in subparagraph (B)(ii) (relating to certain non-agricultural homes))'' after ``specified in this paragraph''; and (B) by adding at the end the following new sentence: ``In the case that application of the preceding sentence would result in a dollar amount (other than the amount specified in subparagraph (B)(i) (relating to certain agricultural homes)) exceeding $1,000,000, such amount shall be deemed to be equal to $1,000,000.''. (b) Clarification.--Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended-- (1) in subsection (r)(2), by adding at the end the following new subparagraph: ``(C) This paragraph shall not be construed as permitting a State to determine the eligibility of an individual for medical assistance with respect to nursing facility services or other long-term care services without application of the limit under section 1917(f)(1).''; and (2) in subsection (e)(14)(D)(iv)-- (A) by striking ``Subparagraphs'' and inserting ``(I) In general.--Subparagraphs''; and (B) by adding at the end the following new subclause: ``(II) Application of home equity interest limit.--Section 1917(f) shall apply for purposes of determining the eligibility of an individual for medical assistance with respect to nursing facility services or other long-term care services.''. (c) Effective Date.--The amendments made by subsection (a) shall apply beginning on January 1, 2028. SEC. 71109. ALIEN MEDICAID ELIGIBILITY. (a) Medicaid.--Section 1903(v) of the Social Security Act (42 U.S.C. 1396b(v)) is amended-- (1) in paragraph (1), by striking ``and (4)''and inserting ``, (4), and (5)''; and (2) by adding at the end the following new paragraph: ``(5) Notwithstanding the preceding paragraphs of this subsection, beginning on October 1, 2026, except as provided in paragraphs (2) and (4), in no event shall payment be made to a State under this section for medical assistance furnished to an individual unless such individual is-- ``(A) a resident of 1 of the 50 States, the District of Columbia, or a territory of the United States; and [[Page S3847]] ``(B) either-- ``(i) a citizen or national of the United States; ``(ii) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act, excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country; ``(iii) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(iv) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.''. (b) CHIP.--Section 2107(e)(1) of the Social Security Act, as amended by section 71103(b), is further amended-- (1) by redesignating subparagraphs (R) through (V) as paragraphs (S) through (W), respectively; and (2) by inserting after paragraph (Q) the following: ``(R) Section 1903(v)(5) (relating to payments for medical assistance furnished to aliens), except in relation to payments for services provided under section 2105(a)(1)(D)(ii).''. SEC. 71110. EXPANSION FMAP FOR CERTAIN STATES PROVIDING PAYMENTS FOR HEALTH CARE FURNISHED TO CERTAIN INDIVIDUALS. Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended-- (1) in subsection (y)-- (A) in paragraph (1)(E), by inserting ``(or, for calendar quarters beginning on or after October 1, 2027, in the case such State is a specified State with respect to such calendar quarter, 80 percent)'' after ``thereafter''; and (B) in paragraph (2), by adding at the end the following new subparagraph: ``(C) Specified state.--The term `specified State' means, with respect to a quarter, a State that-- ``(i) provides any form of financial assistance from a State general fund during such quarter, in whole or in part, whether or not made under a State plan (or waiver of such plan) under this title or under another program established by the State, to or on behalf of an alien who is not a qualified alien and is not a child or pregnant woman who is lawfully residing in the United States and eligible for medical assistance pursuant to section 1903(v)(4) or for child health assistance or pregnancy-related assistance pursuant to section 2107(e)(1)(Q), for the purchasing of health insurance coverage (as defined in section 2791(b)(1) of the Public Health Service Act) for an alien who is not a qualified alien and is not such a child or pregnant woman; or ``(ii) provides any form of comprehensive health benefits coverage, except such coverage required by Federal law, during such quarter, whether or not under a State plan (or waiver of such plan) under this title or under another program established by the State, and regardless of the source of funding for such coverage, to an alien who is not a qualified alien and is not such a child or pregnant woman. ``(D) Immigration terms.-- ``(i) Alien.--The term `alien' has the meaning given such term in section 101(a) of the Immigration and Nationality Act. ``(ii) Qualified alien.--The term `qualified alien' has the meaning given such term in section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, except that the references to `(in the opinion of the agency providing such benefits)' in subsection (c) of such section 431 shall be treated as references to `(in the opinion of the State in which such comprehensive health benefits coverage or such financial assistance is provided, as applicable)'.''; and (2) in subsection (z)(2)-- (A) in subparagraph (A), by striking ``for such year'' and inserting ``for such quarter''; and (B) in subparagraph (B)(i)-- (i) in the matter preceding subclause (I), by striking ``for a year'' and inserting ``for a calendar quarter in a year''; and (ii) in subclause (II), by striking ``for the year'' and inserting ``for the quarter for the State''. SEC. 71111. EXPANSION FMAP FOR EMERGENCY MEDICAID. Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended by adding at the end the following new subsection: ``(kk) FMAP for Treatment of an Emergency Medical Condition.--Notwithstanding subsection (y) and (z), beginning on October 1, 2026, the Federal medical assistance percentage for payments for care and services described in paragraph (2) of subsection 1903(v) furnished to an alien described in paragraph (1) of such subsection shall not exceed the Federal medical assistance percentage determined under subsection (b) for such State.''. Subchapter B--Preventing Wasteful Spending SEC. 71112. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO STAFFING STANDARDS FOR LONG-TERM CARE FACILITIES UNDER THE MEDICARE AND MEDICAID PROGRAMS. The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on May 10, 2024, and titled ``Medicare and Medicaid Programs; Minimum Staffing Standards for Long-Term Care Facilities and Medicaid Institutional Payment Transparency Reporting'' (89 Fed. Reg. 40876) and shall not implement, administer, or enforce the amendments made to the following sections of part 483 of title 42, Code of Federal Regulations: (1) Section 483.5. (2) Section 483.35. SEC. 71113. REDUCING STATE MEDICAID COSTS. (a) In General.--Section 1902(a)(34) of the Social Security Act (42 U.S.C. 1396a(a)(34)) is amended to read as follows: ``(34) provide that in the case of any individual who has been determined to be eligible for medical assistance under the plan and-- ``(A) is enrolled under paragraph (10)(A)(i)(VIII), such assistance will be made available to the individual for care and services included under the plan and furnished in or after the month before the month in which the individual made application (or application was made on the individual's behalf in the case of a deceased individual) for such assistance if such individual was (or upon application would have been) eligible for such assistance at the time such care and services were furnished; or ``(B) is not described in subparagraph (A), such assistance will be made available to the individual for care and services included under the plan and furnished in or after the second month before the month in which the individual made application (or application was made on the individual's behalf in the case of a deceased individual) for such assistance if such individual was (or upon application would have been) eligible for such assistance at the time such care and services were furnished;''. (b) Definition of Medical Assistance.--Section 1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) is amended by striking ``in or after the third month before the month in which the recipient makes application for assistance'' and inserting ``, with respect to an individual described in section 1902(a)(34)(A), in or after the month before the month in which the recipient makes application for assistance, and with respect to an individual described in section 1902(a)(34)(B), in or after the second month before the month in which the recipient makes application for assistance''. (c) CHIP.--Section 2102(b)(1)(B) of the Social Security Act (42 U.S.C. 1397bb(b)(1)(B)) is amended-- (1) in clause (iv), by striking ``and'' at the end; (2) in clause (v), by striking the period and inserting ``; and''; and (3) by adding at the end the following new clause: ``(vi) shall, in the case that the State elects to provide child health or pregnancy-related assistance to an individual for any period prior to the month in which the individual made application for such assistance (or application was made on behalf of the individual), provide that such assistance is not made available to such individual for items and services included under the State child health plan (or waiver of such plan) that are furnished before the second month preceding the month in which such individual made application (or application was made on behalf of such individual) for assistance.''. (d) Effective Date.--The amendments made by this section shall apply to medical assistance, child health assistance, and pregnancy-related assistance with respect to individuals whose eligibility for such medical assistance, child health assistance, or pregnancy-related assistance is based on an application made on or after the first day of the first quarter that begins after December 31, 2026. SEC. 71114. PROHIBITING FEDERAL MEDICAID AND CHIP FUNDING FOR CERTAIN ITEMS AND SERVICES. (a) Medicaid.--Section 1903(i) of the Social Security Act (42 U.S.C. 1396b(i)) is amended-- (1) in paragraph (26), by striking ``; or'' and inserting a semicolon; (2) in paragraph (27), by striking the period at the end and inserting ``; or''; (3) by inserting after paragraph (27) the following new paragraph: ``(28) with respect to any amount expended for specified gender transition procedures (as defined in section 1905(ll)) furnished to an individual enrolled in a State plan (or waiver of such plan).''; and (4) in the flush left matter at the end, by striking ``and (18),'' and inserting ``(18), and (28)''. (b) CHIP.--Section 2107(e)(1)(O) of the Social Security Act (42 U.S.C. 1397gg(e)(1)(O)), as redesignated by section 71103(b)(1)(A), is amended by striking ``and (17)'' and inserting ``(17), and (28)''. (c) Specified Gender Transition Procedures Defined.-- Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended by adding at the end the following new subsection: ``(ll) Specified Gender Transition Procedures.-- ``(1) In general.--For purposes of section 1903(i)(28), except as provided in paragraph (2) , the term `specified gender transition procedure' means, with respect to an individual, any of the following when performed [[Page S3848]] for the purpose of intentionally changing the body of such individual (including by disrupting the body's development, inhibiting its natural functions, or modifying its appearance) to no longer correspond to the individual's sex: ``(A) Performing any surgery, including-- ``(i) castration; ``(ii) sterilization; ``(iii) orchiectomy; ``(iv) scrotoplasty; ``(v) vasectomy; ``(vi) tubal ligation; ``(vii) hysterectomy; ``(viii) oophorectomy; ``(ix) ovariectomy; ``(x) metoidioplasty; ``(xi) clitoroplasty; ``(xii) reconstruction of the fixed part of the urethra with or without a metoidioplasty or a phalloplasty; ``(xiii) penectomy; ``(xiv) phalloplasty; ``(xv) vaginoplasty; ``(xvi) vaginectomy; ``(xvii) vulvoplasty; ``(xviii) reduction thyrochondroplasty; ``(xix) chondrolaryngoplasty; ``(xx) mastectomy; and ``(xxi) any plastic, cosmetic, or aesthetic surgery that feminizes or masculinizes the facial or other body features of an individual. ``(B) Any placement of chest implants to create feminine breasts or any placement of erection or testicular prostheses. ``(C) Any placement of fat or artificial implants in the gluteal region. ``(D) Administering, prescribing, or dispensing to an individual medications, including-- ``(i) gonadotropin-releasing hormone (GnRH) analogues or other puberty-blocking drugs to stop or delay normal puberty; and ``(ii) testosterone, estrogen, or other androgens to an individual at doses that are supraphysiologic than would normally be produced endogenously in a healthy individual of the same age and sex. ``(2) Exception.--Paragraph (1) shall not apply to the following when furnished to an individual by a health care provider if the individual is a minor with the consent of such individual's parent or legal guardian: ``(A) Puberty suppression or blocking prescription drugs for the purpose of normalizing puberty for an individual experiencing precocious puberty. ``(B) Medically necessary procedures or treatments to correct for-- ``(i) a medically verifiable disorder of sex development, including-- ``(I) 46,XX chromosomes with virilization; ``(II) 46,XY chromosomes with undervirilization; and ``(III) both ovarian and testicular tissue; ``(ii) sex chromosome structure, sex steroid hormone production, or sex hormone action, if determined to be abnormal by a physician through genetic or biochemical testing; ``(iii) infection, disease, injury, or disorder caused or exacerbated by a previous procedure described in paragraph (1), or a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the individual in danger of death or impairment of a major bodily function unless the procedure is performed, not including procedures performed for the alleviation of mental distress; or ``(iv) procedures to restore or reconstruct the body of the individual in order to correspond to the individual's sex after one or more previous procedures described in paragraph (1), which may include the removal of a pseudo phallus or breast augmentation. ``(3) Sex.--For purposes of paragraph (1), the term `sex' means either male or female, as biologically determined and defined in paragraphs (4) and (5), respectively. ``(4) Female.--For purposes of paragraph (3), the term `female' means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes eggs for fertilization. ``(5) Male.--For purposes of paragraph (3), the term `male' means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes sperm for fertilization.''. SEC. 71115. FEDERAL PAYMENTS TO PROHIBITED ENTITIES. (a) In General.--No Federal funds that are considered direct spending and provided to carry out a State plan under title XIX of the Social Security Act or a waiver of such a plan shall be used to make payments to a prohibited entity for items and services furnished during the 1-year period beginning on the date of the enactment of this Act, including any payments made directly to the prohibited entity or under a contract or other arrangement between a State and a covered organization. (b) Definitions.--In this section: (1) Prohibited entity.--The term ``prohibited entity'' means an entity, including its affiliates, subsidiaries, successors, and clinics-- (A) that, as of the first day of the first quarter beginning after the date of enactment of this Act-- (i) is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; (ii) is an essential community provider described in section 156.235 of title 45, Code of Federal Regulations (as in effect on the date of enactment of this Act), that is primarily engaged in family planning services, reproductive health, and related medical care; and (iii) provides for abortions, other than an abortion-- (I) if the pregnancy is the result of an act of rape or incest; or (II) in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed; and (B) for which the total amount of Federal and State expenditures under the Medicaid program under title XIX of the Social Security Act for medical assistance furnished in fiscal year 2023 made directly, or by a covered organization, to the entity or to any affiliates, subsidiaries, successors, or clinics of the entity, or made to the entity or to any affiliates, subsidiaries, successors, or clinics of the entity as part of a nationwide health care provider network, exceeded $800,000. (2) Direct spending.--The term ``direct spending'' has the meaning given that term under section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)). (3) Covered organization.--The term ``covered organization'' means a managed care entity (as defined in section 1932(a)(1)(B) of the Social Security Act (42 U.S.C. 1396u-2(a)(1)(B))) or a prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D) of such Act (42 U.S.C. 1396b(m)(9)(D))). (4) State.--The term ``State'' has the meaning given such term in section 1101 of the Social Security Act (42 U.S.C. 1301). Subchapter C--Stopping Abusive Financing Practices SEC. 71116. SUNSETTING INCREASED FMAP INCENTIVE. Section 1905(ii)(3) of the Social Security Act (42 U.S.C. 1396d(ii)(3)) is amended-- (1) by striking ``which has not'' and inserting the following: ``which-- ``(A) has not''; (2) in subparagraph (A), as so inserted, by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following new subparagraph: ``(B) begins to expend amounts for all such individuals prior to January 1, 2026.''. SEC. 71117. PROVIDER TAXES. (a) Change in Threshold for Hold Harmless Provision of Broad-based Health Care Related Taxes.--Section 1903(w)(4) of the Social Security Act (42 U.S.C. 1396b(w)(4)) is amended-- (1) in subparagraph (C)(ii), by inserting ``, and for fiscal years beginning on or after October 1, 2026, the applicable percent determined under subparagraph (D) shall be substituted for `6 percent' each place it appears'' after ``each place it appears''; and (2) by inserting after subparagraph (C)(ii), the following new subparagraph: ``(D)(i) For purposes of subparagraph (C)(ii), the applicable percent determined under this subparagraph is-- ``(I) in the case of a non-expansion State and a class of health care items or services described in section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025)-- ``(aa) if, on the date of enactment of this subparagraph, the non-expansion State has enacted a tax and imposes such tax on such class and the Secretary determines that the tax is within the hold harmless threshold as of that date, the applicable percent of net patient revenue attributable to such class that has been so determined; and ``(bb) if, on the date of enactment of this subparagraph, the non-expansion State has not enacted or does not impose a tax with respect to such class, 0 percent; and ``(II) in the case of an expansion State and a class of health care items or services described in section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025), subject to clause (iv)-- ``(aa) if, on the date of enactment of this subparagraph, the expansion State has enacted a tax and imposes such tax on such class and the Secretary determines that the tax is within the hold harmless threshold as of that date, the lower of-- ``(AA) the applicable percent of net patient revenue attributable to such class that has been so determined; and ``(BB) the applicable percent specified in clause (ii) for the fiscal year; and ``(bb) if, on the date of enactment of this subparagraph, the expansion State has not enacted or does not impose a tax with respect to such class, 0 percent. ``(ii) For purposes of clause (i)(II)(aa)(BB), the applicable percent is-- ``(I) for fiscal year 2028, 5.5 percent; ``(II) for fiscal year 2029, 5 percent; ``(III) for fiscal year 2030, 4.5 percent; ``(IV) for fiscal year 2031, 4 percent; and ``(V) for fiscal year 2032 and each subsequent fiscal year, 3.5 percent. ``(iii) For purposes of clause (i): ``(I) Expansion state.--The term `expansion State' means a State that, beginning on January 1, 2014, or on any date thereafter, elects to provide medical assistance to all individuals described in section 1902(a)(10)(A)(i)(VIII) under the State plan under this title or under a waiver of such plan. [[Page S3849]] ``(II) Non-expansion state.--The term `non-expansion State' means a State that is not an expansion State. ``(iv) In the case of a tax of an expansion State in effect on the date of enactment of this clause, that applies to a class of health care items or services that is described in paragraph (3) or (4) of section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025), and for which, on such date of enactment, is within the hold harmless threshold (as determined by the Secretary), the applicable percent of net patient revenue attributable to such class that has been so determined shall apply for a fiscal year instead of the applicable percent specified in clause (ii) for the fiscal year.''. (b) Non-application to Territories.--The amendments made by this section shall only apply with respect to a State that is 1 of the 50 States or the District of Columbia. (c) Implementation Funding.--For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services, $6,000,000 for fiscal year 2026, to remain available until expended. SEC. 71118. STATE DIRECTED PAYMENTS. (a) In General.--Subject to subsection (b), the Secretary of Health and Human Services (in this section referred to as the Secretary) shall revise section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a successor regulation) such that, with respect to a payment described in such section made for a service furnished during a rating period beginning on or after the date of the enactment of this Act, the total payment rate for such service is limited to-- (1) in the case of a State that provides coverage to all individuals described in section 1902(a)(10)(A)(i)(VIII) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) under the State plan (or waiver of such plan) of such State under title XIX of such Act, 100 percent of the specified total published Medicare payment rate (or, in the absence of a specified total published Medicare payment rate, the payment rate under a Medicaid State plan (or under a waiver of such plan)); or (2) in the case of a State other than a State described in paragraph (1), 110 percent of the specified total published Medicare payment rate (or, in the absence of a specified total published Medicare payment rate, the payment rate under a Medicaid State plan (or under a waiver of such plan)). (b) Grandfathering Certain Payments.--In the case of a payment described in section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a successor regulation) for which written prior approval (or a good faith effort to receive such approval, as determined by the Secretary) was made before May 1, 2025, or a payment described in such section for a rural hospital (as defined in subsection (d)(2)) for which written prior approval (or a good faith effort to receive such approval, as determined by the Secretary) was made by the date of enactment of this Act, for the rating period occurring within 180 days of the date of the enactment of this Act, beginning with the rating period on or after January 1, 2028, the total amount of such payment shall be reduced by 10 percentage points each year until the total payment rate for such service is equal to the rate for such service specified in subsection (a). (c) Treatment of Expansion States.--The revisions described in subsection (a) shall provide that, with respect to a State that begins providing the coverage described in paragraph (1) of such subsection on or after the date of the enactment of this Act, the limitation described in such paragraph shall apply to such State with respect to a payment described in section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a successor regulation) for a service furnished during a rating period beginning on or after the date of enactment of this Act. (d) Definitions.--In this section: (1) Rating period.--The term ``rating period'' has the meaning given such term in section 438.2 of title 42, Code of Federal Regulations (or a successor regulation). (2) Rural hospital.--The term ``rural hospital'' means the following: (A) A subsection (d) hospital (as defined in paragraph (1)(B) of section 1886(d)) that-- (i) is located in a rural area (as defined in paragraph (2)(D) of such section); (ii) is treated as being located in a rural area pursuant to paragraph (8)(E) of such section; or (iii) is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). (B) A critical access hospital (as defined in section 1861(mm)(1)). (C) A sole community hospital (as defined in section 1886(d)(5)(D)(iii)). (D) A Medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv)). (E) A low-volume hospital (as defined in section 1886(d)(12)(C)). (F) A rural emergency hospital (as defined in section 1861(kkk)(2)). (3) State.--The term ``State'' means 1 of the 50 States or the District of Columbia. (4) Total published medicare payment rate.--The term ``total published Medicare payment rate'' means amounts calculated as payment for specific services including the service furnished that have been developed under part A or part B of title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.). (5) Written prior approval.--The term ``written prior approval'' has the meaning given such term in section 438.6(c)(2)(i) of title 42, Code of Federal Regulations (or a successor regulation). (e) Funding.--There are appropriated out of any monies in the Treasury not otherwise appropriated $7,000,000 for each of fiscal years 2026 through 2033 for purposes of carrying out this section, to remain available until expended. SEC. 71119. REQUIREMENTS REGARDING WAIVER OF UNIFORM TAX REQUIREMENT FOR MEDICAID PROVIDER TAX. (a) In General.--Section 1903(w) of the Social Security Act (42 U.S.C. 1396b(w)) is amended-- (1) in paragraph (3)(E), by inserting after clause (ii)(II) the following new clause: ``(iii) For purposes of clause (ii)(I), a tax is not considered to be generally redistributive if any of the following conditions apply: ``(I) Within a permissible class, the tax rate imposed on any taxpayer or tax rate group (as defined in paragraph (7)(J)) explicitly defined by its relatively lower volume or percentage of Medicaid taxable units (as defined in paragraph (7)(H)) is lower than the tax rate imposed on any other taxpayer or tax rate group explicitly defined by its relatively higher volume or percentage of Medicaid taxable units. ``(II) Within a permissible class, the tax rate imposed on any taxpayer or tax rate group (as so defined) based upon its Medicaid taxable units (as so defined) is higher than the tax rate imposed on any taxpayer or tax rate group based upon its non-Medicaid taxable unit (as defined in paragraph (7)(I)). ``(III) The tax excludes or imposes a lower tax rate on a taxpayer or tax rate group (as so defined) based on or defined by any description that results in the same effect as described in subclause (I) or (II) for a taxpayer or tax rate group. Characteristics that may indicate such type of exclusion include the use of terminology to establish a tax rate group-- ``(aa) based on payments or expenditures made under the program under this title without mentioning the term `Medicaid' (or any similar term) to accomplish the same effect as described in subclause (I) or (II); or ``(bb) that closely approximates a taxpayer or tax rate group under the program under this title, to the same effect as described in subclause (I) or (II).''; and (2) in paragraph (7), by adding at the end the following new subparagraphs: ``(H) The term `Medicaid taxable unit' means a unit that is being taxed within a health care related tax that is applicable to the program under this title. Such term includes a unit that is used as the basis for-- ``(i) payment under the program under this title (such as Medicaid bed days); ``(ii) Medicaid revenue; ``(iii) costs associated with the program under this title (such as Medicaid charges, claims, or expenditures); and ``(iv) other units associated with the program under this title, as determined by the Secretary. ``(I) The term `non-Medicaid taxable unit' means a unit that is being taxed within a health care related tax that is not applicable to the program under this title. Such term includes a unit that is used as the basis for-- ``(i) payment by non-Medicaid payers (such as non-Medicaid bed days); ``(ii) non-Medicaid revenue; ``(iii) costs that are not associated with the program under this title (such as non-Medicaid charges, non-Medicaid claims, or non-Medicaid expenditures); and ``(iv) other units not associated with the program under this title, as determined by the Secretary. ``(J) The term `tax rate group' means a group of entities contained within a permissible class of a health care related tax that are taxed at the same rate.''. (b) Non-application to Territories.--The amendments made by this section shall only apply with respect to a State that is 1 of the 50 States or the District of Columbia. (c) Effective Date.--The amendments made by this section shall take effect upon the date of enactment of this Act, subject to any applicable transition period determined appropriate by the Secretary of Health and Human Services, not to exceed 3 fiscal years. SEC. 71120. REQUIRING BUDGET NEUTRALITY FOR MEDICAID DEMONSTRATION PROJECTS UNDER SECTION 1115. (a) In General.--Section 1115 of the Social Security Act (42 U.S.C. 1315) is amended by adding at the end the following new subsection: ``(g) Requirement of Budget Neutrality for Medicaid Demonstration Projects.-- ``(1) In general.--Beginning January 1 2027, the Secretary may not approve an application for (or renewal or amendment of) an experimental, pilot, or demonstration project undertaken under subsection (a) to promote the objectives of title XIX in a State (in this subsection referred to as a `Medicaid demonstration project') unless the Chief Actuary for the Centers for Medicare & Medicaid Services certifies that such project, based on expenditures for the State program in the preceding fiscal year or, in the case of a renewal, the duration of the preceding waiver, is not expected to result in an increase in the amount of Federal expenditures [[Page S3850]] compared to the amount that such expenditures would otherwise be in the absence of such project. For purposes of this subsection, expenditures for the coverage of populations and services that the State could have otherwise provided through its Medicaid State plan or other authority under title XIX, including expenditures that could be made under such authority but for the provision of such services at a different site of service than authorized under such State plan or other authority, shall be considered expenditures in the absence of such a project. ``(2) Treatment of savings.--In the event that expenditures with respect to a State under a Medicaid demonstration project are, during an approval period for such project, less than the amount of such expenditures that would have otherwise been made in the absence of such project, the Secretary shall specify the methodology to be used with respect to the subsequent approval period for such project for purposes of taking the difference between such expenditures into account.''. (b) Implementation Funding.--For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services, $5,000,000 for each of fiscal years 2026 and 2027, to remain available until expended. Subchapter D--Increasing Personal Accountability SEC. 71121. REQUIREMENT FOR STATES TO ESTABLISH MEDICAID COMMUNITY ENGAGEMENT REQUIREMENTS FOR CERTAIN INDIVIDUALS. (a) In General.--Section 1902 of the Social Security Act (42 U.S.C. 1396a), as amended by sections 71103 and 71104, is further amended by adding at the end the following new subsection: ``(xx) Community Engagement Requirement for Applicable Individuals.-- ``(1) In general.--Except as provided in paragraph (11), beginning not later than the first day of the first quarter that begins after December 31, 2026, or, at the option of the State under a waiver or demonstration project under section 1115 or the State plan, such earlier date as the State may specify, subject to the succeeding provisions of this subsection, a State shall provide, as a condition of eligibility for medical assistance for an applicable individual, that such individual is required to demonstrate community engagement under paragraph (2)-- ``(A) in the case of an applicable individual who has filed an application for medical assistance under a State plan (or a waiver of such plan) under this title, for 1 or more but not more than 3 (as specified by the State) consecutive months immediately preceding the month during which such individual applies for such medical assistance; and ``(B) in the case of an applicable individual enrolled and receiving medical assistance under a State plan (or under a waiver of such plan) under this title, for 1 or more (as specified by the State) months, whether or not consecutive-- ``(i) during the period between such individual's most recent determination (or redetermination, as applicable) of eligibility and such individual's next regularly scheduled redetermination of eligibility (as verified by the State as part of such regularly scheduled redetermination of eligibility); or ``(ii) in the case of a State that has elected under paragraph (4) to conduct more frequent verifications of compliance with the requirement to demonstrate community engagement, during the period between the most recent and next such verification with respect to such individual. ``(2) Community engagement compliance described.--Subject to paragraph (3), an applicable individual demonstrates community engagement under this paragraph for a month if such individual meets 1 or more of the following conditions with respect to such month, as determined in accordance with criteria established by the Secretary through regulation: ``(A) The individual works not less than 80 hours. ``(B) The individual completes not less than 80 hours of community service. ``(C) The individual participates in a work program for not less than 80 hours. ``(D) The individual is enrolled in an educational program at least half-time. ``(E) The individual engages in any combination of the activities described in subparagraphs (A) through (D), for a total of not less than 80 hours. ``(F) The individual has a monthly income that is not less than the applicable minimum wage requirement under section 6 of the Fair Labor Standards Act of 1938, multiplied by 80 hours. ``(G) The individual had an average monthly income over the preceding 6 months that is not less than the applicable minimum wage requirement under section 6 of the Fair Labor Standards Act of 1938 multiplied by 80 hours, and is a seasonal worker, as described in section 45R(d)(5)(B) of the Internal Revenue Code of 1986 . ``(3) Exceptions.-- ``(A) Mandatory exception for certain individuals.--The State shall deem an applicable individual to have demonstrated community engagement under paragraph (2) for a month, and may elect to not require an individual to verify information resulting in such deeming, if-- ``(i) for part or all of such month, the individual-- ``(I) was a specified excluded individual (as defined in paragraph (9)(A)(ii)); or ``(II) was-- ``(aa) under the age of 19; ``(bb) entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII; or ``(cc) described in any of subclauses (I) through (VII) of subsection (a)(10)(A)(i); or ``(ii) at any point during the 3-month period ending on the first day of such month, the individual was an inmate of a public institution. ``(B) Optional exception for short-term hardship events.-- ``(i) In general.--The State plan (or waiver of such plan) may provide, in the case of an applicable individual who experiences a short-term hardship event during a month, that the State shall, under procedures established by the State (in accordance with standards specified by the Secretary), in the case of a short-term hardship event described in clause (ii)(II) and, upon the request of such individual, a short- term hardship event described in subclause (I) or (III) of clause (ii), deem such individual to have demonstrated community engagement under paragraph (2) for such month. ``(ii) Short-term hardship event defined.--For purposes of this subparagraph, an applicable individual experiences a short-term hardship event during a month if, for part or all of such month-- ``(I) such individual receives inpatient hospital services, nursing facility services, services in an intermediate care facility for individuals with intellectual disabilities, inpatient psychiatric hospital services, or such other services of similar acuity (including outpatient care relating to other services specified in this subclause) as the Secretary determines appropriate; ``(II) such individual resides in a county (or equivalent unit of local government)-- ``(aa) in which there exists an emergency or disaster declared by the President pursuant to the National Emergencies Act or the Robert T. Stafford Disaster Relief and Emergency Assistance Act; or ``(bb) that, subject to a request from the State to the Secretary, made in such form, at such time, and containing such information as the Secretary may require, has an unemployment rate that is at or above the lesser of-- ``(AA) 8 percent; or ``(BB) 1.5 times the national unemployment rate; or ``(III) such individual or their dependent must travel outside of their community for an extended period of time to receive medical services necessary to treat a serious or complex medical condition (as described in paragraph (9)(A)(ii)(V)(ee)) that are not available within their community of residence. ``(4) Option to conduct more frequent compliance verifications.--With respect to an applicable individual enrolled and receiving medical assistance under a State plan (or a waiver of such plan) under this title, the State shall verify (in accordance with procedures specified by the Secretary) that each such individual has met the requirement to demonstrate community engagement under paragraph (1) during each such individual's regularly scheduled redetermination of eligibility, except that a State may provide for such verifications more frequently. ``(5) Ex parte verifications.--For purposes of verifying that an applicable individual has met the requirement to demonstrate community engagement under paragraph (1), or determining such individual to be deemed to have demonstrated community engagement under paragraph (3), or that an individual is a specified excluded individual under paragraph (9)(A)(ii), the State shall, in accordance with standards established by the Secretary, establish processes and use reliable information available to the State (such as payroll data or payments or encounter data under this title for individuals and data on payments to such individuals for the provision of services covered under this title) without requiring, where possible, the applicable individual to submit additional information. ``(6) Procedure in the case of noncompliance.-- ``(A) In general.--If a State is unable to verify that an applicable individual has met the requirement to demonstrate community engagement under paragraph (1) (including, if applicable, by verifying that such individual was deemed to have demonstrated community engagement under paragraph (3)) the State shall (in accordance with standards specified by the Secretary)-- ``(i) provide such individual with the notice of noncompliance described in subparagraph (B); ``(ii)(I) provide such individual with a period of 30 calendar days, beginning on the date on which such notice of noncompliance is received by the individual, to-- ``(aa) make a satisfactory showing to the State of compliance with such requirement (including, if applicable, by showing that such individual was or should be deemed to have demonstrated community engagement under paragraph (3)); or ``(bb) make a satisfactory showing to the State that such requirement does not apply to such individual on the basis that such individual does not meet the definition of applicable individual under paragraph (9)(A); and ``(II) if such individual is enrolled under the State plan (or a waiver of such plan) [[Page S3851]] under this title, continue to provide such individual with medical assistance during such 30-calendar-day period; and ``(iii) if no such satisfactory showing is made and the individual is not a specified excluded individual described in paragraph (9)(A)(ii), deny such individual's application for medical assistance under the State plan (or waiver of such plan) or, as applicable, disenroll such individual from the plan (or waiver of such plan) not later than the end of the month following the month in which such 30-calendar-day period ends, provided that-- ``(I) the State first determines whether, with respect to the individual, there is any other basis for eligibility for medical assistance under the State plan (or waiver of such plan) or for another insurance affordability program; and ``(II) the individual is provided written notice and granted an opportunity for a fair hearing in accordance with subsection (a)(3). ``(B) Notice.--The notice of noncompliance provided to an applicable individual under subparagraph (A)(i) shall include information (in accordance with standards specified by the Secretary) on-- ``(i) how such individual may make a satisfactory showing of compliance with such requirement (as described in subparagraph (A)(ii)) or make a satisfactory showing that such requirement does not apply to such individual on the basis that such individual does not meet the definition of applicable individual under paragraph (9)(A); and ``(ii) how such individual may reapply for medical assistance under the State plan (or a waiver of such plan) under this title in the case that such individuals' application is denied or, as applicable, in the case that such individual is disenrolled from the plan (or waiver). ``(7) Treatment of noncompliant individuals in relation to certain other provisions.-- ``(A) Certain fmap increases.--A State shall not be treated as not providing medical assistance to all individuals described in section 1902(a)(10)(A)(i)(VIII), or as not expending amounts for all such individuals under the State plan (or waiver of such plan), solely because such an individual is determined ineligible for medical assistance under the State plan (or waiver) on the basis of a failure to meet the requirement to demonstrate community engagement under paragraph (1). ``(B) Other provisions.--For purposes of section 36B(c)(2)(B) of the Internal Revenue Code of 1986, an individual shall be deemed to be eligible for minimum essential coverage described in section 5000A(f)(1)(A)(ii) of such Code for a month if such individual would have been eligible for medical assistance under a State plan (or a waiver of such plan) under this title but for a failure to meet the requirement to demonstrate community engagement under paragraph (1). ``(8) Outreach.-- ``(A) In general.--In accordance with standards specified by the Secretary, beginning not later than the date that precedes December 31, 2026 (or, if the State elects under paragraph (1) to specify an earlier date, such earlier date) by the number of months specified by the State under paragraph (1)(A) plus 3 months, and periodically thereafter, the State shall notify applicable individuals enrolled under a State plan (or waiver) under this title of the requirement to demonstrate community engagement under this subsection. Such notice shall include information on-- ``(i) how to comply with such requirement, including an explanation of the exceptions to such requirement under paragraph (3) and the definition of the term `applicable individual' under paragraph (9)(A); ``(ii) the consequences of noncompliance with such requirement; and ``(iii) how to report to the State any change in the individual's status that could result in-- ``(I) the applicability of an exception under paragraph (3) (or the end of the applicability of such an exception); or ``(II) the individual qualifying as a specified excluded individual under paragraph (9)(A)(ii). ``(B) Form of outreach notice.--A notice required under subparagraph (A) shall be delivered-- ``(i) by regular mail (or, if elected by the individual, in an electronic format); and ``(ii) in 1 or more additional forms, which may include telephone, text message, an internet website, other commonly available electronic means, and such other forms as the Secretary determines appropriate. ``(9) Definitions.--In this subsection: ``(A) Applicable individual.-- ``(i) In general.--The term `applicable individual' means an individual (other than a specified excluded individual (as defined in clause (ii)))-- ``(I) who is eligible to enroll (or is enrolled) under the State plan under subsection (a)(10)(A)(i)(VIII); or ``(II) who-- ``(aa) is otherwise eligible to enroll (or is enrolled) under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and as determined in accordance with standards prescribed by the Secretary in regulations); and ``(bb) has attained the age of 19 and is under 65 years of age, is not pregnant, is not entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII, and is not otherwise eligible to enroll under such plan. ``(ii) Specified excluded individual.--For purposes of clause (i), the term `specified excluded individual' means an individual, as determined by the State (in accordance with standards specified by the Secretary)-- ``(I) who is described in subsection (a)(10)(A)(i)(IX); ``(II) who-- ``(aa) is an Indian or an Urban Indian (as such terms are defined in paragraphs (13) and (28) of section 4 of the Indian Health Care Improvement Act); ``(bb) is a California Indian described in section 809(a) of such Act; or ``(cc) has otherwise been determined eligible as an Indian for the Indian Health Service under regulations promulgated by the Secretary; ``(III) who is the parent, guardian, caretaker relative, or family caregiver (as defined in section 2 of the RAISE Family Caregivers Act) of a dependent child 13 years of age and under or a disabled individual; ``(IV) who is a veteran with a disability rated as total under section 1155 of title 38, United States Code; ``(V) who is medically frail or otherwise has special medical needs (as defined by the Secretary), including an individual-- ``(aa) who is blind or disabled (as defined in section 1614); ``(bb) with a substance use disorder; ``(cc) with a disabling mental disorder; ``(dd) with a physical, intellectual or developmental disability that significantly impairs their ability to perform 1 or more activities of daily living; or ``(ee) with a serious or complex medical condition; ``(VI) who-- ``(aa) is in compliance with any requirements imposed by the State pursuant to section 407; or ``(bb) is a member of a household that receives supplemental nutrition assistance program benefits under the Food and Nutrition Act of 2008 and is not exempt from a work requirement under such Act; ``(VII) who is participating in a drug addiction or alcoholic treatment and rehabilitation program (as defined in section 3(h) of the Food and Nutrition Act of 2008); ``(VIII) who is an inmate of a public institution; or ``(IX) who is pregnant or entitled to postpartum medical assistance under paragraph (5) or (16) of subsection (e). ``(B) Educational program.--The term `educational program' includes-- ``(i) an institution of higher education (as defined in section 101 of the Higher Education Act of 1965); and ``(ii) a program of career and technical education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006). ``(C) State.--The term `State' means 1 of the 50 States or the District of Columbia. ``(D) Work program.--The term `work program' has the meaning given such term in section 6(o)(1) of the Food and Nutrition Act of 2008. ``(10) Prohibiting waiver of community engagement requirements.--Notwithstanding section 1115(a), the provisions of this subsection may not be waived. ``(11) Special implementation rule.-- ``(A) In general.--Subject to subparagraph (C), the Secretary may exempt a State from compliance with the requirements of this subsection if-- ``(i) the State submits to the Secretary a request for such exemption, made in such form and at such time as the Secretary may require, and including the information specified in subparagraph (B); and ``(ii) the Secretary determines that based on such request, the State is demonstrating a good faith effort to comply with the requirements of this subsection. ``(B) Good faith effort determination.--In determining whether a State is demonstrating a good faith effort for purposes of subparagraph (A)(ii), the Secretary shall consider-- ``(i) any actions taken by the State toward compliance with the requirements of this subsection; ``(ii) any significant barriers to or challenges in meeting such requirements, including related to funding, design, development, procurement, or installation of necessary systems or resources; ``(iii) the State's detailed plan and timeline for achieving full compliance with such requirements, including any milestones of such plan (as defined by the Secretary); and ``(iv) any other criteria determined appropriate by the Secretary. ``(C) Duration of exemption.-- ``(i) In general.--An exemption granted under subparagraph (A) shall expire not later than December 31, 2028, and may not be renewed beyond such date. ``(ii) Early termination.--The Secretary may terminate an exemption granted under subparagraph (A) prior to the expiration date of such exemption if the Secretary determined that the State has-- ``(I) failed to comply with the reporting requirements described in subparagraph (D); or ``(II) based on the information provided pursuant to subparagraph (D), failed to make continued good faith efforts toward compliance with the requirements of this subsection. ``(D) Reporting requirements.--A State granted an exemption under subparagraph (A) shall submit to the Secretary-- [[Page S3852]] ``(i) quarterly progress reports on the State's status in achieving the milestones toward full compliance described in subparagraph (B)(iii); and ``(ii) information on specific risks or newly identified barriers or challenges to full compliance, including the State's plan to mitigate such risks, barriers, or challenges.''. (b) Conforming Amendment.--Section 1902(a)(10)(A)(i)(VIII) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) is amended by striking ``subject to subsection (k)'' and inserting ``subject to subsections (k) and (xx)''. (c) Prohibiting Conflicts of Interest.--A State shall not use a Medicaid managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D)), or other contractor to determine beneficiary compliance under such section unless the contractor has no direct or indirect financial relationship with any Medicaid managed care entity or other specified entity that is responsible for providing or arranging for coverage of medical assistance for individuals enrolled with the entity pursuant to a contract with such State. (d) Interim Final Rulemaking.--Not later than June 1, 2026, the Secretary of Health and Human Services shall promulgate an interim final rule for purposes of implementing the provisions of, and the amendments made by, this section. Any action taken to implement the provisions of, and the amendments made by, this section shall not be subject to the provisions of section 553 of title 5, United States Code. (e) Development of Government Efficiency Grants to States.-- (1) In general.--In order for States to establish systems necessary to carry out the provisions of, and amendments made by, this section [or other sections of this chapter that pertain to conducting eligibility determinations or redeterminations], the Secretary of Health and Human Services shall-- (A) out of amounts appropriated under paragraph (3)(A), award to each State a grant equal to the amount specified in paragraph (2) for such State; and (B) out of amounts appropriated under paragraph (3)(B), distribute an equal amount among such States. (2) Amount specified.--For purposes of paragraph (1)(A), the amount specified in this paragraph is an amount that bears the same ratio to the amount appropriated under paragraph (3)(A) as the number of applicable individuals (as defined in section 1902(xx) of the Social Security Act, as added by subsection (a)) residing in such State bears to the total number of such individuals residing in all States, as of March 31, 2025. (3) Funding.--There are appropriated, out of any monies in the Treasury not otherwise appropriated-- (A) $100,000,000 for fiscal year 2026 for purposes of awarding grants under paragraph (1)(A), to remain available until expended; and (B) $100,000,000 for fiscal year 2026 for purposes of award grants under paragraph (1)(B), to remain available until expended. (4) Definition.--In this subsection, the term ``State'' means 1 of the 50 States and the District of Columbia. (f) Implementation Funding.--For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services, $50,000,000 for fiscal year 2026, to remain available until expended. SEC. 71122. MODIFYING COST SHARING REQUIREMENTS FOR CERTAIN EXPANSION INDIVIDUALS UNDER THE MEDICAID PROGRAM. (a) In General.--Section 1916 of the Social Security Act (42 U.S.C. 1396o) is amended-- (1) in subsection (a), in the matter preceding paragraph (1), by inserting ``(other than, beginning October 1, 2028, specified individuals (as defined in subsection (k)(3)))'' after ``individuals''; and (2) by adding at the end the following new subsection: ``(k) Special Rules for Certain Expansion Individuals.-- ``(1) Premiums.--Beginning October 1, 2028, the State plan shall provide that in the case of a specified individual (as defined in paragraph (3)) who is eligible under the plan, no enrollment fee, premium, or similar charge will be imposed under the plan. ``(2) Required imposition of cost sharing.-- ``(A) In general.--Subject to subparagraph (B) and subsection (j), in the case of a specified individual, the State plan shall, beginning October 1, 2028, provide for the imposition of such deductions, cost sharing, or similar charges determined appropriate by the State (in an amount greater than $0) with respect to certain care, items, or services furnished to such an individual, as determined by the State. ``(B) Limitations.-- ``(i) Exclusion of certain services.--In no case may a deduction, cost sharing, or similar charge be imposed under the State plan with respect to care, items, or services described in any of subparagraphs (B) through (J) of subsection (a)(2), or any primary care services, mental health care services, substance use disorder services, or services provided by a Federally qualified health center (as defined in 1905(l)(2)), certified community behavioral health clinic (as defined in section 1905(jj)(2)), or rural health clinic (as defined in 1905(l)(1)), furnished to a specified individual. ``(ii) Item and service limitation.-- ``(I) In general.--Except as provided in subclause (II), in no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to care or an item or service furnished to a specified individual exceed $35. ``(II) Special rules for prescription drugs.--In no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to a prescription drug furnished to a specified individual exceed the limit that would be applicable under paragraph (2)(A)(i) or (2)(B) of section 1916A(c) with respect to such drug and individual if such drug so furnished were subject to cost sharing under such section. ``(iii) Maximum limit on cost sharing.--The total aggregate amount of deductions, cost sharing, or similar charges imposed under the State plan for all individuals in the family may not exceed 5 percent of the family income of the family involved, as applied on a quarterly or monthly basis (as specified by the State). ``(C) Cases of nonpayment.--Notwithstanding subsection (e), a State may permit a provider participating under the State plan to require, as a condition for the provision of care, items, or services to a specified individual entitled to medical assistance under this title for such care, items, or services, the payment of any deductions, cost sharing, or similar charges authorized to be imposed with respect to such care, items, or services. Nothing in this subparagraph shall be construed as preventing a provider from reducing or waiving the application of such deductions, cost sharing, or similar charges on a case-by-case basis. ``(3) Specified individual defined.--For purposes of this subsection, the term `specified individual' means an individual who has a family income (as determined in accordance with section 1902(e)(14)) that exceeds the poverty line (as defined in section 2110(c)(5)) applicable to a family of the size involved and-- ``(A) is enrolled under section 1902(a)(10)(A)(i)(VIII); or ``(B) is described in such subsection and otherwise enrolled under a waiver of the State plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in section 1902(a)(10)(A)(i)(VIII). ``(4) State defined.--For purposes of this subsection, the term `State' means 1 of the 50 States or the District of Columbia.''. (b) Conforming Amendments.-- (1) Required application.--Section 1902(a)(14) of the Social Security Act (42 U.S.C. 1396a(a)(14)) is amended by inserting ``and provide for imposition of such deductions, cost sharing, or similar charges for care, items, or services furnished to specified individuals (as defined in paragraph (3) of section 1916(k)) in accordance with paragraph (2) of such section'' after ``section 1916''. (2) Nonapplicability of alternative cost sharing.--Section 1916A(a)(1) of the Social Security Act (42 U.S.C. 1396o- 1(a)(1)) is amended, in the second sentence, by striking ``or (j)'' and inserting ``(j), or (k)''. Subchapter E--Expanding Access to Care SEC. 71123. MAKING CERTAIN ADJUSTMENTS TO COVERAGE OF HOME OR COMMUNITY-BASED SERVICES UNDER MEDICAID. (a) Expanding HCBS Coverage Under Section 1915(c) Waivers.--Section 1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) is amended-- (1) in paragraph (3), by inserting ``paragraph (11) or'' before ``subsection (h)(2)''; and (2) by adding at the end the following new paragraph: ``(11) Expanding Coverage for Home or Community-based Services.-- ``(A) In general.--Beginning July 1, 2028, notwithstanding paragraph (1), the Secretary may approve a waiver that is standalone from any other waiver approved under this subsection to include as medical assistance under the State plan of such State payment for part or all of the cost of home or community-based services (other than room and board (as described in paragraph (1))) approved by the Secretary which are provided pursuant to a written plan of care to individuals described in subparagraph (B)(iii). A waiver approved under this paragraph shall be for an initial term of 3 years and, upon the request of the State, shall be extended for additional 5-year periods unless the Secretary determines that for the previous waiver period the requirements specified under this subsection (excluding those excepted under subparagraph (B)) have not been met. ``(B) State requirements.--In addition to the requirements specified under this subsection (except for the requirements described in subparagraphs (C) and (D) of paragraph (2) and any other requirement specified under this subsection that the Secretary determines to be inapplicable in the context of a waiver that does not require individuals to have a determination described in paragraph (1)), a State shall meet the following requirements as a condition of waiver approval: [[Page S3853]] ``(i) As of the date that such State requests a waiver under this subsection to provide home or community-based services to individuals described in clause (iii), all other waivers (if any) granted under this subsection to such State meet the requirements of this subsection. ``(ii) The State demonstrates to the Secretary that approval of a waiver under this subsection with respect to individuals described in clause (iii) will not result in a material increase of the average amount of time that individuals with respect to whom a determination described in paragraph (1) has been made will need to wait to receive home or community-based services under any other waiver granted under this subsection, as determined by the Secretary. ``(iii) The State establishes needs-based criteria, subject to the approval of the Secretary, regarding who will be eligible for home or community-based services under a waiver approved under this paragraph without requiring such individual to have a determination described in paragraph (1), and specifies the home or community-based services such individuals so eligible will receive. ``(iv) The State establishes needs-based criteria for determining whether an individual described in clause (iii) requires the level of care provided in a hospital, nursing facility, or an intermediate care facility for individuals with developmental disabilities under the State plan or under any waiver of such plan that are more stringent than the needs-based criteria established under clause (iii) for determining eligibility for home or community-based services. ``(v) The State attests that the State's average per capita expenditure for medical assistance under the State plan (or waiver of such plan) provided with respect to such individuals enrolled in a waiver under this paragraph will not exceed the State's average per capita expenditure for medical assistance for individuals receiving institutional care under the State plan (or waiver of such plan) for the duration that the waiver under this paragraph is in effect. ``(vi) The State provides to the Secretary data (in such form and manner as the Secretary may specify) regarding the number of individuals described in clause (iii) with respect to a State seeking approval of a waiver under this subsection, to whom the State will make such services available under such waiver. ``(vii) The State agrees to provide to the Secretary, not less frequently than annually, data for purposes of paragraph (2)(E) (in such form and manner as the Secretary may specify) regarding, with respect to each preceding year in which a waiver under this subsection to provide home or community- based services to individuals described in clause (iii) was in effect-- ``(I) the cost (as such term is defined by the Secretary) of such services furnished to individuals described in clause (iii), broken down by type of service; ``(II) with respect to each type of home or community-based service provided under the waiver, the length of time that such individuals have received such service; ``(III) a comparison between the data described in subclause (I) and any comparable data available with respect to individuals with respect to whom a determination described in paragraph (1) has been made and with respect to individuals receiving institutional care under this title; and ``(IV) the number of individuals who have received home or community-based services under the waiver during the preceding year. ``(C) Limitation on payments.--No payments made to carry out this paragraph shall be used to make payments to a third party on behalf of an individual practitioner for benefits such as health insurance, skills training, and other benefits customary for employees, in the case of a class of practitioners for which the program established under this title is the primary source of revenue.''. (b) Implementation Funding.-- (1) In general.--There are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services-- (A) for fiscal year 2026, $50,000,000 for purposes of carrying out the provisions of, and the amendments made by, this section, to remain available until expended; and (B) for fiscal year 2027, $100,000,000 for purposes of making payments to States, subject to paragraph (2), to support State systems to deliver home or community-based services under section1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) (as amended by this section), to remain available until expended. (2) Payments based on state hcbs eligible population.-- Payments to States from amounts made available by paragraph (1)(B) shall be made, with respect to a State, on the basis of the proportion of the population of the State that is eligible for home or community-based services under section1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) (as amended by this section), as compared to all States. SEC. 71124. DETERMINATION OF FMAP FOR HIGH-POVERTY STATES. Section 1905(b) of the Social Security Act (42 U.S.C. 1396d) is amended in the first sentence-- (1) by striking ``and (6)'' and inserting ``(6)''; and (2) by inserting before the period the following: ``, and (7) only for purposes of payments for medical assistance under this title (excluding any such payments that are based on the enhanced FMAP described in section 2105(b)), in the case of a State for which the Secretary issues under the authority of section 673(2) of the Omnibus Budget Reconciliation Act of 1981 a separate poverty guideline for any calendar year occurring during or after the date of enactment of this clause that is higher than the poverty guideline issued by the Secretary for such calendar year that is applicable to the majority of States, the regular Federal medical assistance percentage determined for such a State under this subsection (without regard to any adjustments to such percentage) for the 1st fiscal year quarter that begins after such date of enactment, and for each fiscal year quarter beginning thereafter, shall be increased (after such determination but prior to any other increase which may be applicable and in no case to exceed 100 percent) by, in the case of the State with the highest separate poverty guideline for the calendar year, 25 percent of the average regular Federal medical assistance percentage determined (without regard to any adjustments to such percentage) for the fiscal year for States which did not have a separate poverty guideline issued for them for such calendar year, and in the case of the State with the second highest separate poverty guideline for the calendar year, 15 percent of the average regular Federal medical assistance percentage determined (without regard to any adjustments to such percentage) for the fiscal year for States which did not have a separate poverty guideline issued for them for such calendar year''. CHAPTER 2--MEDICARE Subchapter A--Strengthening Eligibility Requirements SEC. 71201. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVIDUALS. Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is amended by adding at the end the following new section: ``SEC. 1899C. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVIDUALS. ``(a) In General.--Subject to subsection (b), an individual may be entitled to, or enrolled for, benefits under this title only if the individual is-- ``(1) a citizen or national of the United States; ``(2) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act; ``(3) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(4) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. ``(b) Application to Individuals Currently Entitled to or Enrolled for Benefits.-- ``(1) In general.--In the case of an individual who is entitled to, or enrolled for, benefits under this title as of the date of the enactment of this section, subsection (a) shall apply beginning on the date that is 18 months after such date of enactment. ``(2) Review by commissioner of social security.-- ``(A) In general.--Not later than 1 year after the date of the enactment of this section, the Commissioner of Social Security shall complete a review of individuals entitled to, or enrolled for, benefits under this title as of such date of enactment for purposes of identifying individuals not described in any of paragraphs (1) through (4) of subsection (a). ``(B) Notice.--The Commissioner of Social Security shall notify each individual identified under the review conducted under subparagraph (A) that such individual's entitlement to, or enrollment for, benefits under this title will be terminated as of the date that is 18 months after the date of the enactment of this section. Such notification shall be made as soon as practicable after such identification and in a manner designed to ensure such individual's comprehension of such notification.''. Subchapter B--Improving Services for Seniors SEC. 71202. TEMPORARY PAYMENT INCREASE UNDER THE MEDICARE PHYSICIAN FEE SCHEDULE TO ACCOUNT FOR EXCEPTIONAL CIRCUMSTANCES. (a) In General.--Section 1848(t)(1) of the Social Security Act (42 U.S.C. 1395w-4(t)(1)) is amended-- (1) in the matter preceding subparagraph (A), by striking ``and 2024'' and inserting ``2024, and 2026''; (2) in subparagraph (D), by striking ``and'' at the end; (3) in subparagraph (E), by striking the period at the end and inserting ``; and''; and (4) by adding at the end the following new subparagraph: ``(F) such services furnished on or after January 1, 2026, and before January 1, 2027, by 2.5 percent.''. (b) Conforming Amendment.--Section 1848(c)(2)(B)(iv)(V) of the Social Security Act (42 U.S.C. 1395w-4(c)(2)(B)(iv)(V)) is amended by striking ``or 2024'' and inserting ``2024, or 2026''. SEC. 71203. EXPANDING AND CLARIFYING THE EXCLUSION FOR ORPHAN DRUGS UNDER THE DRUG PRICE NEGOTIATION PROGRAM. (a) In General.--Section 1192(e) of the Social Security Act (42 U.S.C. 1320f-1(e)) is amended-- (1) in paragraph (1), in the matter preceding subparagraph (A), by striking ``and (3)'' and inserting ``through (4)''; [[Page S3854]] (2) in paragraph (3)(A)-- (A) by striking ``only one rare disease or condition'' and inserting ``one or more rare diseases or conditions''; and (B) by striking ``such disease or condition'' and inserting ``one or more such rare diseases or conditions (as such term is defined in section 526(a)(2) of the Federal Food, Drug, and Cosmetic Act)''; and (3) by adding at the end the following new paragraph: ``(4) Treatment of former orphan drugs.--In the case of a drug or biological product that, as of the date of the approval or licensure of such drug or biological product, is a drug or biological product described in paragraph (3)(A), paragraph (1)(A)(ii) or (1)(B)(ii) (as applicable) shall apply as if the reference to `the date of such approval' or `the date of such licensure', respectively, were instead a reference to `the first day after the date of such approval for which such drug is not a drug described in paragraph (3)(A)' or `the first day after the date of such licensure for which such biological product is not a biological product described in paragraph (3)(A)', respectively.''. (b) Application.--The amendments made by subsection (a) shall apply with respect to initial price applicability years (as defined in section 1191(b) of the Social Security Act (42 U.S.C. 1320f(b))) beginning on or after January 1, 2028. SEC. 71204. APPLICATION OF COST-OF-LIVING ADJUSTMENT TO NON- LABOR RELATED PORTION FOR HOSPITAL OUTPATIENT DEPARTMENT SERVICES FURNISHED IN ALASKA AND HAWAII. Section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)) is amended by adding at the end the following new paragraph: ``(23) Application of cost-of-living adjustment to non- labor related portion for hospital outpatient department services furnished in alaska and hawaii.-- ``(A) In general.--With respect to OPD services furnished on or after January 1, 2027, the Secretary shall provide for adjustments to the payment amounts under this subsection for such services in the same manner that is provided under section 1886(d)(5)(H) with respect to the application of the cost-of-living adjustment to the non-labor related portion of such payment amounts to take into account the unique circumstances of hospitals located in Alaska or Hawaii. Such adjustment shall not apply to payment amounts for a separately payable drug, biological, or medical device. ``(B) Application without regard to budget neutrality.-- Adjustments to payment amounts made under this paragraph-- ``(i) shall not be considered an adjustment under paragraph (2)(E); and ``(ii) shall not be implemented in a budget neutral manner.''. CHAPTER 3--HEALTH TAX Subchapter A--Improving Eligibility Criteria SEC. 71301. PERMITTING PREMIUM TAX CREDIT ONLY FOR CERTAIN INDIVIDUALS. (a) In General.--Section 36B(e)(1) is amended by inserting ``or, in the case of aliens who are lawfully present, are not eligible aliens'' after ``individuals who are not lawfully present''. (b) Eligible Aliens.--Section 36B(e)(2) is amended-- (1) by striking ``For purposes of this section, an individual'' and inserting ``For purposes of this section-- ``(A) In general.--An individual'', and (2) by adding at the end the following new subparagraph: ``(B) Eligible aliens.--An individual who is an alien and lawfully present shall be treated as an eligible alien if such individual is, and is reasonably expected to be for the entire period of enrollment for which the credit under this section is being claimed-- ``(i) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), ``(ii) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(iii) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G)).''. (c) Conforming Amendments.-- (1) Verification of information.--Section 1411 of the Patient Protection and Affordable Care Act (42 U.S.C. 18081) is amended-- (A) in subsection (a)-- (i) in paragraph (1), by striking ``and section 36B(e) of the Internal Revenue Code of 1986''; and (ii) in paragraph (2)-- (I) in subparagraph (A), by striking ``and'' at the end; (II) in subparagraph (B), by adding ``and'' at the end; and (III) by adding at the end the following new subparagraph: ``(C) in the case such individual is an alien lawfully present in the United States, whether such individual is an eligible alien (within the meaning of section 36B(e)(2) of such Code);''; (B) in subsection (b)(3), by adding at the end the following new subparagraph: ``(D) Immigration status.--In the case the individual's eligibility is based on an attestation of the enrollee's immigration status, an attestation that such individual is an eligible alien (within the meaning of 36B(e)(2) of the Internal Revenue Code of 1986).''; and (C) in subsection (c)(2)(B)(ii), by adding at the end the following new subclause: ``(III) In the case of an individual described in clause (i)(I) with respect to whom a premium tax credit under section 36B of the Internal Revenue Code of 1986 is being claimed, the attestation that the individual is an eligible alien (within the meaning of section 36B(e)(2) of such Code).''. (2) Advance determinations.--Section 1412(d) of the Patient Protection and Affordable Care Act (42 U.S.C. 18082(d)) is amended by inserting before the period at the end the following: ``, or credits under section 36B of the Internal Revenue Code of 1986 for aliens who are not eligible aliens (within the meaning of section 36B(e)(2) of such Code)''. (3) Effective date.--The amendments made by this subsection shall apply with respect to plan years beginning on or after January 1, 2027. (d) Clerical Amendments.-- (1) The heading for section 36B(e) is amended by inserting ``and Not Eligible Aliens'' after ``Individuals Not Lawfully Present''. (2) The heading for section 36B(e)(2) is amended by inserting ``; eligible aliens'' after ``lawfully present''. (e) Requirement to Maintain Minimum Essential Coverage.-- Section 5000A(d)(3) is amended by striking ``an alien lawfully present in the United States'' and inserting ``an eligible alien (within the meaning of section 36B(e)(2))''. (f) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (g) Effective Date.--The amendments made by this section (other than the amendments made by subsection (c)) shall apply to taxable years beginning after December 31, 2026. SEC. 71302. DISALLOWING PREMIUM TAX CREDIT DURING PERIODS OF MEDICAID INELIGIBILITY DUE TO ALIEN STATUS. (a) In General.--Section 36B(c)(1) is amended by striking subparagraph (B). (b) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. Subchapter B--Preventing Waste, Fraud, and Abuse SEC. 71303. REQUIRING VERIFICATION OF ELIGIBILITY FOR PREMIUM TAX CREDIT. (a) In General.--Section 36B(c) is amended by adding at the end the following new paragraphs: ``(5) Exchange enrollment verification requirement.-- ``(A) In general.--The term `coverage month' shall not include, with respect to any individual covered by a qualified health plan enrolled in through an Exchange, any month beginning before the Exchange verifies, using applicable enrollment information that shall be provided or verified by the applicant, such individual's eligibility-- ``(i) to enroll in the plan through the Exchange, and ``(ii) for any advance payment under section 1412 of the Patient Protection and Affordable Care Act of the credit allowed under this section. ``(B) Applicable enrollment information.--For purposes of subparagraph (A), applicable enrollment information shall include affirmation of at least the following information (to the extent relevant in determining eligibility described in subparagraph (A)): ``(i) Household income and family size. ``(ii) Whether the individual is an eligible alien. ``(iii) Any health coverage status or eligibility for coverage. ``(iv) Place of residence. ``(v) Such other information as may be determined by the Secretary (in consultation with the Secretary of Health and Human Services) as necessary to the verification prescribed under subparagraph (A). ``(C) Verification of past months.--In the case of a month that begins before verification prescribed by subparagraph (A), such month shall be treated as a coverage month if, and only if, the Exchange verifies for such month (using applicable enrollment information that shall be provided or verified by the applicant) such individual's eligibility to have so enrolled and for any such advance payment. ``(D) Exchange participation; coordination with other procedures for determining eligibility.--An individual shall not, solely by reason of failing to meet the requirements of this paragraph with respect to a month, be treated for such month as ineligible to enroll in a qualified health plan through an Exchange. ``(E) Waiver for certain special enrollment periods.--The Secretary may waive the application of subparagraph (A) in the case of an individual who enrolls in a qualified health plan through an Exchange for 1 or more months of the taxable year during a special enrollment period provided by the Exchange on the basis of a change in the family size of the individual. ``(F) Information and reliance on third-party sources.--An Exchange shall be permitted to use any data available to the Exchange and any reliable third-party sources [[Page S3855]] in collecting information for verification by the applicant. ``(6) Exchange compliance with filing requirements.--The term `coverage month' shall not include, with respect to any individual covered by a qualified health plan enrolled in through an Exchange, any month for which the Exchange does not meet the requirements of section 155.305(f)(4)(iii) of title 45, Code of Federal Regulations (as published in the Federal Register on June 25, 2025 (90 FR 27074), applied as though it applied to all plan years after 2025), with respect to the individual.''. (b) Pre-enrollment Verification Process Required.--Section 36B(c)(3)(A) is amended-- (1) by striking ``health plan.--The term'' and inserting ``health plan.-- `` ``(i) In general.--The term'', and (2) by adding at the end the following new clause: ``(ii) Pre-enrollment verification process required.--Such term shall not include any plan enrolled in through an Exchange, unless such Exchange provides a process for pre- enrollment verification through which any applicant may, beginning not later than August 1, verify with the Exchange the applicant's household income and eligibility for enrollment in such plan for plan years beginning in the subsequent year.''. (c) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2027. SEC. 71304. DISALLOWING PREMIUM TAX CREDIT IN CASE OF CERTAIN COVERAGE ENROLLED IN DURING SPECIAL ENROLLMENT PERIOD. (a) In General.--Section 36B(c)(3)(A), as amended by the preceding provisions of this Act, is amended by adding at the end the following new clause: ``(iii) Exception in case of certain special enrollment periods.--Such term shall not include any plan enrolled in during a special enrollment period provided for by an Exchange-- ``(I) on the basis of the relationship of the individual's expected household income to such a percentage of the poverty line (or such other amount) as is prescribed by the Secretary of Health and Human Services for purposes of such period, and ``(II) not in connection with the occurrence of an event or change in circumstances specified by the Secretary of Health and Human Services for such purposes.''. (b) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (c) Effective Date.--The amendments made by this section shall apply with respect to plan years beginning after December 31, 2025. SEC. 71305. ELIMINATING LIMITATION ON RECAPTURE OF ADVANCE PAYMENT OF PREMIUM TAX CREDIT. (a) In General.--Section 36B(f)(2) is amended by striking subparagraph (B). (b) Conforming Amendments.-- (1) Section 36B(f)(2) is amended by striking ``advance payments.--'' and all that follows through ``If the advance payments'' and inserting the following: ``advance payments.-- If the advance payments''. (2) Section 35(g)(12)(B)(ii) is amended by striking ``then section 36B(f)(2)(B) shall be applied by substituting the amount determined under clause (i) for the amount determined under section 36B(f)(2)(A)'' and inserting ``then the amount determined under clause (i) shall be substituted for the amount determined under section 36B(f)(2)''. (c) Special Rule for Certain Individuals Treated as Applicable Taxpayers.--Paragraph (1) of section 36B(c) is amended by adding at the end the following new subparagraph: ``(E) Special rule for certain individuals treated as applicable taxpayers.--In the case of a taxable year beginning after December 31, 2025, if an individual-- ``(i) is determined by an Exchange at the time of enrollment in a qualified health plan through such Exchange to have a projected annual household income for the taxable year which equals or exceeds 100 percent of an amount equal to the poverty line for a family of the size involved, and ``(ii) receives an advance payment of the credit under this section for 1 or more months during such taxable year under section 1412 of the Patient Protection and Affordable Care Act, such individual shall not fail to be treated as an applicable taxpayer for such taxable year solely because the actual household income of the individual for the taxable year is less than 100 percent of an amount equal to the poverty line for a family of the size involved, unless the Secretary determines that the individual provided incorrect information to the Exchange with intentional or reckless disregard for the facts.''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. Subchapter C--Enhancing Choice for Patients SEC. 71306. PERMANENT EXTENSION OF SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR TELEHEALTH SERVICES. (a) In General.--Subparagraph (E) of section 223(c)(2) is amended to read as follows: ``(E) Safe harbor for absence of deductible for telehealth.--A plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for telehealth and other remote care services.''. (b) Certain Coverage Disregarded.--Clause (ii) of section 223(c)(1)(B) is amended by striking ``(in the case of months or plan years to which paragraph (2)(E) applies)''. (c) Effective Date.--The amendments made by this section shall apply to plan years beginning after December 31, 2024. SEC. 71307. ALLOWANCE OF BRONZE AND CATASTROPHIC PLANS IN CONNECTION WITH HEALTH SAVINGS ACCOUNTS. (a) In General.--Section 223(c)(2) is amended by adding at the end the following new subparagraph: ``(H) Bronze and catastrophic plans treated as high deductible health plans.--The term `high deductible health plan' shall include any plan which is-- ``(i) available as individual coverage through an Exchange established under section 1311 or 1321 of the Patient Protection and Affordable Care Act, and ``(ii) described in subsection (d)(1)(A) or (e) of section 1302 of such Act.''. (b) Effective Date.--The amendment made by this section shall apply to months beginning after December 31, 2025. SEC. 71308. TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENTS. (a) In General.--Section 223(c)(1) is amended by adding at the end the following new subparagraph: ``(E) Treatment of direct primary care service arrangements.-- ``(i) In general.--A direct primary care service arrangement shall not be treated as a health plan for purposes of subparagraph (A)(ii). ``(ii) Direct primary care service arrangement.--For purposes of this subparagraph-- ``(I) In general.--The term `direct primary care service arrangement' means, with respect to any individual, an arrangement under which such individual is provided medical care (as defined in section 213(d)) consisting solely of primary care services provided by primary care practitioners (as defined in section 1833(x)(2)(A) of the Social Security Act, determined without regard to clause (ii) thereof), if the sole compensation for such care is a fixed periodic fee. ``(II) Limitation.--With respect to any individual for any month, such term shall not include any arrangement if the aggregate fees for all direct primary care service arrangements (determined without regard to this subclause) with respect to such individual for such month exceed $150 (twice such dollar amount in the case of an individual with any direct primary care service arrangement (as so determined) that covers more than one individual). ``(iii) Certain services specifically excluded from treatment as primary care services.--For purposes of this subparagraph, the term `primary care services' shall not include-- ``(I) procedures that require the use of general anesthesia, ``(II) prescription drugs (other than vaccines), and ``(III) laboratory services not typically administered in an ambulatory primary care setting. The Secretary, after consultation with the Secretary of Health and Human Services, shall issue regulations or other guidance regarding the application of this clause.''. (b) Direct Primary Care Service Arrangement Fees Treated as Medical Expenses.--Section 223(d)(2)(C) is amended by striking ``or'' at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ``, or'', and by adding at the end the following new clause: ``(v) any direct primary care service arrangement.''. (c) Inflation Adjustment.--Section 223(g)(1) is amended-- (1) by striking ``in subsections (b)(2) and (c)(2)(A)'' and inserting ``in subsections (b)(2), (c)(2)(A), and in the case of taxable years beginning after 2026, (c)(1)(E)(ii)(II)'', (2) in subparagraph (B), by striking ``clause (ii)'' in clause (i) and inserting ``clauses (ii) and (iii)'', by striking ``and'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``, and'', and by inserting after clause (ii) the following new clause: ``(iii) in the case of the dollar amount in subsection (c)(1)(E)(ii)(II), `calendar year 2025'.'', and (3) by inserting ``, (c)(1)(E)(ii)(II),'' after ``(b)(2)'' in the last sentence. (d) Effective Date.--The amendments made by this section shall apply to months beginning after December 31, 2025. CHAPTER 4--PROTECTING RURAL HOSPITALS AND PROVIDERS SEC. 71401. RURAL HEALTH TRANSFORMATION PROGRAM. (a) In General.--Section 2105 of the Social Security Act (42 U.S.C. 1397ee) is amended by adding at the end the following new subsection: ``(h) Rural Health Transformation Program.-- ``(1) Appropriation.-- ``(A) In general.--There are appropriated, out of any money in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services (in this subsection referred to as the [[Page S3856]] `Administrator'), to provide allotments to States for purposes of carrying out the activities described in paragraph (6)-- ``(i) $10,000,000,000 for fiscal year 2028; ``(ii) $10,000,000,000 for fiscal year 2029; ``(iii) $2,000,000,000 for fiscal year 2030; ``(iv) $2,000,000,000 for fiscal year 2031; and ``(v) $1,000,000,000 for fiscal year 2032. ``(B) Unexpended or unobligated funds.-- ``(i) In general.--Any amounts appropriated under subparagraph (A) that are unexpended or unobligated as of October 1, 2034, shall be returned to the Treasury of the United States. ``(ii) Redistribution of unexpended or unobligated funds.-- In carrying out subparagraph (A), the Administrator shall, not later than March 31, 2030, and annually thereafter through March 31, 2034-- ``(I) determine the amount of funds, if any, that are available under such subparagraph for a previous fiscal year, are unexpended or unobligated with respect to such fiscal year, and will not be available to a State in the current fiscal year, pursuant to clause (iii); and ``(II) if the Administrator determines that any such funds from a previous fiscal year remain, redistribute such funds in the current fiscal year to States that have an application approved under this subsection for such fiscal year in accordance with an allotment methodology specified by the Administrator. ``(iii) Availability of funds.-- ``(I) In general.--Amounts allotted to a State under this subsection for a year shall be available for expenditure by the State through the end of the fiscal year following the fiscal year in which such amounts are allotted. ``(II) Availability of amounts redistributed.--Amounts redistributed to a State under clause (ii) with respect to a fiscal year shall be available for expenditure by the State through the end of the fiscal year following the fiscal year in which such amounts are redistributed (except in the case of amounts redistributed in fiscal year 2034 which shall only be available for expenditure through September 30, 2034). ``(iv) Misuse of funds.--If the Administrator determines that a State is not using amounts allotted or redistributed to the State under this subsection in a manner consistent with the description provided by the State in its application approved under paragraph (2), the Administrator may withhold payments to, or reduce payments to, or recover previous payments from, the State under this subsection as the Administrator deems appropriate, and any amounts so withheld, or that remain after any such reduction, or so recovered, shall be returned to the Treasury of the United States. ``(2) Application.-- ``(A) In general.--To be eligible for an allotment under this subsection, a State shall submit to the Administrator during an application submission period to be specified by the Administrator (but that ends not later than April 1, 2027) an application in such form and manner as the Administrator may specify, that includes-- ``(i) a detailed rural health transformation plan, developed in consultation with the State Office of Rural Health-- ``(I) to improve access to hospitals, other health care providers, and health care items and services furnished to rural residents of the State; ``(II) to improve health care outcomes of rural residents of the State; ``(III) to prioritize the use of new and emerging technologies that emphasize prevention and chronic disease management; ``(IV) to initiate, foster, and strengthen local and regional strategic partnerships between rural hospitals and other health care providers in order to promote measurable quality improvement, increase financial stability, maximize economies of scale, and share best practices in care delivery; ``(V) to enhance economic opportunity for, and the supply of, health care clinicians through enhanced recruitment and training; ``(VI) to prioritize data and technology driven solutions that help rural hospitals and other rural health care providers furnish high-quality health care services as close to a patient's home as is possible; ``(VII) that outlines strategies to manage long-term financial solvency and operating models of rural hospitals in the State; and ``(VIII) that identifies specific causes driving the accelerating rate of stand-alone rural hospitals becoming at risk of closure, conversion, or service reduction; ``(ii) a certification that none of the amounts provided under this subsection shall be used by the State for an expenditure that is attributable to an intergovernmental transfer, certified public expenditure, or any other expenditure to finance the non-Federal share of expenditures required under any provision of law, including under the State plan established under this title, the State plan established under title XIX, or under a waiver of such plans; and ``(iii) such other information as the Administrator may require. ``(B) Deadline for approval.--Not later than September 30, 2027, the Administrator shall approve or deny all applications submitted for an allotment under this subsection. ``(C) One-time application.--If an application of a State for an allotment under this subsection is approved by the Administrator, the State shall be eligible for an allotment under this subsection for each of fiscal years 2028 through 2032, except as provided in paragraph (1)(B)(iv). ``(D) Eligibility.--Only the 50 States shall be eligible for an allotment under this subsection and all references in this subsection to a State shall be treated as only referring to the 50 States. ``(3) Allotments.-- ``(A) In general.--For each of fiscal years 2028 through 2032, the Administrator shall determine under subparagraph (B) the amount of the allotment for such fiscal year for each State with an approved application under this subsection. ``(B) Amount determined.--From the amounts appropriated under paragraph (1)(A) for each of fiscal years 2028 through 2032, the Administrator shall allot-- ``(i) 50 percent of the amounts appropriated for each such fiscal year equally among all States with an approved application under this subsection; and ``(ii) 50 percent of the amounts appropriated for each such fiscal year among all such States in an amount to be determined by the Administrator in accordance with subparagraph (C). ``(C) Considerations.--In determining the amount to be allotted to a State under subparagraph (B)(ii) for a fiscal year, the Administrator shall consider the following: ``(i) The percentage of the State population that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(ii) The proportion of rural health facilities (as defined in subparagraph (D)) in the State relative to the number of rural health facilities nationwide. ``(iii) The situation of hospitals in the State, as described in section 1902(a)(13)(A)(iv). ``(iv) Any other factors that the Administrator determines appropriate. ``(D) Rural health facility defined.--For the purposes of subparagraph (C)(ii), the term `rural health facility' means the following: ``(i) A subsection (d) hospital (as defined in paragraph (1)(B) of section 1886(d)) that-- ``(I) is located in a rural area (as defined in paragraph (2)(D) of such section); ``(II) is treated as being located in a rural area pursuant to paragraph (8)(E) of such section; or ``(III) is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(ii) A critical access hospital (as defined in section 1861(mm)(1)). ``(iii) A sole community hospital (as defined in section 1886(d)(5)(D)(iii)). ``(iv) A Medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv)). ``(v) A low-volume hospital (as defined in section 1886(d)(12)(C)). ``(vi) A rural emergency hospital (as defined in section 1861(kkk)(2)). ``(vii) A rural health clinic (as defined in section 1861(aa)(2)). ``(viii) A Federally qualified health center (as defined in section 1861(aa)(4)). ``(ix) A community mental health center (as defined in section 1861(ff)(3)(B)). ``(x) A health center that is receiving a grant under section 330 of the Public Health Service Act. ``(xi) An opioid treatment program (as defined in section 1861(jjj)(2)) that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(xii) A certified community behavioral health clinic (as defined in section 1905(jj)(2)) that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(4) No matching payment.--A State approved for an allotment under this subsection for a fiscal year shall not be required to provide any matching funds as a condition for receiving payments from the allotment. ``(5) Terms and conditions.--The Administrator shall specify such terms and conditions for allotments to States provided under this subsection as the Administrator deems appropriate, including the following: ``(A) Each State shall submit to the Administrator (at a time, and in a form and manner, specified by the Administrator)-- ``(i) a plan for the State to use its allotment to carry out 3 or more of the activities described in paragraph (6); and ``(ii) annual reports on the use of allotments, including such additional information as the Administrator determines appropriate. ``(B) Not more than 10 percent of the amount allotted to a State for a fiscal year may be used by the State for administrative expenses. ``(C) In the event that a State uses amounts from an allotment to provide payments to health care providers in accordance with subparagraph (B) or (J) of paragraph (6), the State shall ensure that such amounts are not used to reimburse any expense or loss that-- ``(i) has been reimbursed from any other source; or [[Page S3857]] ``(ii) any other source is obligated to reimburse. ``(6) Use of funds.--Amounts allotted to a State under this subsection shall be used for 3 or more of the following health-related activities: ``(A) Promoting evidence-based, measurable interventions to improve prevention and chronic disease management. ``(B) Providing payments to health care providers, as defined by the Administrator, for the provision of health care items or services, as specified by the Administrator. ``(C) Promoting consumer-facing, technology-driven solutions for the prevention and management of chronic diseases. ``(D) Providing training and technical assistance for the development and adoption of technology-enabled solutions that improve care delivery in rural hospitals, including remote monitoring, robotics, artificial intelligence, and other advanced technologies. ``(E) Recruiting and retaining clinical workforce talent to rural areas, with commitments to serve rural communities for a minimum of 5 years. ``(F) Providing technical assistance, software, and hardware for significant information technology advances designed to improve efficiency, enhance cybersecurity capability development, and improve patient health outcomes. ``(G) Assisting rural communities to right size their health care delivery systems by identifying needed preventative, ambulatory, pre-hospital, emergency, acute inpatient care, outpatient care, and post-acute care service lines. ``(H) Supporting access to opioid use disorder treatment services (as defined in section 1861(jjj)(1)), other substance use disorder treatment services, and mental health services. ``(I) Developing projects that support innovative models of care that include value-based care arrangements and alternative payment models, as appropriate. ``(J) Additional uses designed to promote sustainable access to high quality rural health care services, as determined by the Administrator. ``(7) Exemptions.--Paragraphs (2), (3), (5), (6), (8), (10), (11), and (12) of subsection (c) do not apply to payments under this subsection. ``(8) Review.--There shall be no administrative or judicial review under section 1116 or otherwise of amounts allotted or redistributed to States under this subsection, payments to States withheld or reduced under this subsection, or previous payments recovered from States under this subsection.''. (b) Conforming Amendments.--Title XXI of the Social Security Act (42 U.S.C. 1397aa) is amended-- (1) in section 2101-- (A) in subsection (a), in the matter preceding paragraph (1), by striking ``The purpose'' and inserting ``Except with respect to the rural health transformation program established in section 2105(h), the purpose''; and (B) in subsection (b), in the matter preceding paragraph (1), by inserting ``subsection (a) or (g) of'' before ``section 2105''; (2) in section 2105(c)(1), by striking ``and may not include'' and inserting ``or to carry out the rural health transformation program established in subsection (h) and, except in the case of amounts made available under subsection (h), may not include''; and (3) in section 2106(a)(1), by inserting ``subsection (a) or (g) of'' before ``section 2105''. (c) Implementation.--The Administrator of the Centers for Medicare & Medicaid Services shall implement this section, including the amendments made by this section, by program instruction or other forms of program guidance. Subtitle C--Increase in Debt Limit SEC. 72001. MODIFICATION OF LIMITATION ON THE PUBLIC DEBT. The limitation under section 3101(b) of title 31, United States Code, as most recently increased by section 401(b) of Public Law 118-5 (31 U.S.C. 3101 note), is increased by $500,000,000,000. TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS Subtitle A--Exemption of Certain Assets SEC. 80001. EXEMPTION OF CERTAIN ASSETS. (a) Exemption of Certain Assets.--Section 480(f)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended-- (1) by striking ``net value of the'' and inserting the following: ``net value of-- ``(A) the''; (2) by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following: ``(B) a family farm on which the family resides; ``(C) a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family; or ``(D) a commercial fishing business and related expenses, including fishing vessels and permits owned and controlled by the family.''. (b) Effective Date and Application.--The amendments made by subsection (a) shall take effect on July 1, 2026, and shall apply with respect to award year 2026-2027 and each subsequent award year, as determined under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). Subtitle B--Loan Limits SEC. 81001. ESTABLISHMENT OF LOAN LIMITS FOR GRADUATE AND PROFESSIONAL STUDENTS AND PARENT BORROWERS; TERMINATION OF GRADUATE AND PROFESSIONAL PLUS LOANS. Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is amended-- (1) in paragraph (3)-- (A) in the paragraph heading, by inserting ``and federal direct plus loans'' after ``loans''; (B) by striking subparagraph (A) and inserting the following: ``(A) Termination of authority to make interest subsidized loans to graduate and professional students.--Subject to subparagraph (B), and notwithstanding any provision of this part or part B-- ``(i) for any period of instruction beginning on or after July 1, 2012, a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part; and ``(ii) for any period of instruction beginning on July 1, 2012, and ending on June 30, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the maximum annual amount for such student determined under section 428H, plus an amount equal to the amount of Federal Direct Stafford loans the student would have received in the absence of this subparagraph.''; and (C) by adding at the end the following: ``(C) Termination of authority to make federal direct plus loans to graduate and professional students.--Subject to paragraph (8) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2026, a graduate or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part.''; and (2) by adding at the end the following: ``(4) Graduate and professional annual and aggregate limits for federal direct unsubsidized stafford loans beginning july 1, 2026.-- ``(A) Annual limits beginning july 1, 2026.--Subject to paragraphs (7)(A) and (8), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans-- ``(i) a graduate student, who is not a professional student, may borrow in any academic year or its equivalent shall be $20,500; and ``(ii) a professional student may borrow in any academic year or its equivalent shall be $50,000. ``(B) Aggregate limits.--Subject to paragraphs (6), (7)(A), and (8), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans, in addition to the amount borrowed for undergraduate education, that-- ``(i) a graduate student-- ``(I) who is not (and has not been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be $100,000; or ``(II) who is (or has been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be an amount equal to-- ``(aa) $200,000; minus ``(bb) the amount such student borrowed for programs of study described in subparagraph (C)(ii); and ``(ii) a professional student-- ``(I) who is not (and has not been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be $200,000; or ``(II) who is (or has been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be an amount equal to-- ``(aa) $200,000; minus ``(bb) the amount such student borrowed for programs of study described in subparagraph (C)(i). ``(C) Definitions.-- ``(i) Graduate student.--The term `graduate student' means a student enrolled in a program of study that awards a graduate credential (other than a professional degree) upon completion of the program. ``(ii) Professional student.--In this paragraph, the term `professional student' means a student enrolled in a program of study that awards a professional degree, as defined under section 668.2 of title 34, Code of Federal Regulations (as in effect on the date of enactment of this paragraph), upon completion of the program. ``(5) Parent borrower annual and aggregate limits for federal direct plus loans beginning july 1, 2026.-- ``(A) Annual limits.--Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, for each dependent student, the total maximum annual amount of Federal Direct PLUS loans that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $20,000. ``(B) Aggregate limits.--Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, for each dependent student, the total maximum aggregate amount of Federal Direct PLUS loans that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $65,000, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan. [[Page S3858]] ``(6) Lifetime maximum aggregate amount for all students.-- Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, the maximum aggregate amount of loans made, insured, or guaranteed under this title that a student may borrow (other than a Federal Direct PLUS loan, or loan under section 428B, made to the student as a parent borrower on behalf of a dependent student) shall be $257,500, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan. ``(7) Additional rules regarding annual loan limits.-- ``(A) Less than full-time enrollment.--Notwithstanding any provision of this part or part B, in any case in which a student is enrolled in a program of study of an institution of higher education on less than a full-time basis during any academic year, the amount of a loan that student may borrow for an academic year or its equivalent shall be reduced in direct proportion to the degree to which that student is not so enrolled on a full-time basis, rounded to the nearest whole percentage point, as provided in a schedule of reductions published by the Secretary computed for purposes of this subparagraph. ``(B) Institutionally determined limits.--Notwithstanding the annual loan limits established under this section and, for undergraduate students, under this part and part B, beginning on July 1, 2026, an institution of higher education (at the discretion of a financial aid administrator at the institution) may limit the total amount of loans made under this part for a program of study for an academic year that a student may borrow, and that a parent may borrow on behalf of such student, as long as any such limit is applied consistently to all students enrolled in such program of study. ``(8) Interim exception for certain students.-- ``(A) Application of prior limits.--Paragraphs (3)(C), (4), (5), and (6) shall not apply, and paragraph (3)(A)(ii) shall apply as such paragraph was in effect for periods of instruction ending before June 30, 2026, during the expected time to credential described in subparagraph (B), with respect to an individual who, as of June 30, 2026-- ``(i) is enrolled in a program of study at an institution of higher education; and ``(ii) has received a loan (or on whose behalf a loan was made) under this part for such program of study. ``(B) Expected time to credential.--For purposes of this paragraph, the expected time to credential of an individual shall be equal to the lesser of-- ``(i) three academic years; or ``(ii) the period determined by calculating the difference between-- ``(I) the program length for the program of study in which the individual is enrolled; and ``(II) the period of such program of study that such individual has completed as of the date of the determination under this subparagraph. ``(C) Definition of program length.--In this paragraph, the term `program length' means the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution of higher education for a full-time student to complete the requirements for a specific program of study.''. Subtitle C--Loan Repayment SEC. 82001. LOAN REPAYMENT. (a) Transition to Income-based Repayment Plans.-- (1) Selection.--The Secretary of Education shall take such steps as may be necessary to ensure that before July 1, 2028, each borrower who has one or more loans that are in a repayment status in accordance with, or an administrative forbearance associated with, an income contingent repayment plan authorized under section 455(e) of the Higher Education Act of 1965 (referred to in this subsection as ``covered income contingent loans'') selects one of the following income-based repayment plans that is otherwise applicable, and for which that borrower is otherwise eligible, for the repayment of the covered income contingent loans of the borrower: (A) The Repayment Assistance Plan under section 455(q) of the Higher Education Act of 1965. (B) The income-based repayment plan under section 493C of the Higher Education Act of 1965. (C) Any other repayment plan as authorized under section 455(d)(1) of the Higher Education Act of 1965. (2) Commencement of new repayment plan.--Beginning on July 1, 2028, a borrower described in paragraph (1) shall begin repaying the covered income contingent loans of the borrower in accordance with the repayment plan selected under paragraph (1), unless the borrower chooses to begin repaying in accordance with the repayment plan selected under paragraph (1) before such date. (3) Failure to select.--In the case of a borrower described in paragraph (1) who fails to select a repayment plan in accordance with such paragraph, the Secretary of Education shall-- (A) enroll the covered income contingent loans of such borrower in-- (i) the Repayment Assistance Plan under section 455(q) of the Higher Education Act of 1965 with respect to loans that are eligible for the Repayment Assistance Plan under such subsection; or (ii) the income-based repayment plan under section 493C of such Act, with respect to loans that are not eligible for the Repayment Assistance Plan; and (B) require the borrower to begin repaying covered income contingent loans according to the plans under subparagraph (A) on July 1, 2028. (b) Repayment Plans.--Section 455(d) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)) is amended-- (1) in paragraph (1)-- (A) in the matter preceding subparagraph (A), by inserting ``before July 1, 2026, who has not received a loan made under this part on or after July 1, 2026,'' after ``made under this part''; (B) in subparagraph (D)-- (i) by inserting ``before June 30, 2028,'' before ``an income contingent repayment plan''; and (ii) by striking ``and'' after the semicolon; (C) in subparagraph (E)-- (i) by striking ``that enables borrowers who have a partial financial hardship to make a lower monthly payment''; (ii) by striking ``a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan under section 428B made on behalf of a dependent student'' and inserting ``an excepted Consolidation Loan (as defined in section 493C(a)(2))''; and (iii) by striking the period at the end and inserting ``; and''; and (D) by adding at the end the following: ``(F) beginning on July 1, 2026, the income-based Repayment Assistance Plan under subsection (q), provided that-- ``(i) such Plan shall not be available for the repayment of excepted loans (as defined in paragraph (7)(E)); and ``(ii) the borrower is required to pay each outstanding loan of the borrower made under this part under such Repayment Assistance Plan, except that a borrower of an excepted loan (as defined in paragraph (7)(E)) may repay the excepted loan separately from other loans under this part obtained by the borrower.''; (2) in paragraph (5), by amending subparagraph (B) to read as follows: ``(B) repay the loan pursuant to an income-based repayment plan under subsection (q) or section 493C, as applicable.''; and (3) by adding at the end the following: ``(6) Termination and limitation of repayment authority.-- ``(A) Sunset of repayment plans available before july 1, 2026.--Paragraphs (1) through (4) of this subsection shall only apply to loans made under this part before July 1, 2026. ``(B) Prohibitions.--The Secretary may not, for any loan made under this part on or after July 1, 2026-- ``(i) authorize a borrower of such a loan to repay such loan pursuant to a repayment plan that is not described in paragraph (7)(A); or ``(ii) carry out or modify a repayment plan that is not described in such paragraph. ``(7) Repayment plans for loans made on or after july 1, 2026.-- ``(A) Design and selection.--Beginning on July 1, 2026, the Secretary shall offer a borrower of a loan made under this part on or after such date (including such a borrower who also has a loan made under this part before such date) two plans for repayment of the borrower's loans under this part, including principal and interest on such loans. The borrower shall be entitled to accelerate, without penalty, repayment on such loans. The borrower may choose-- ``(i) a standard repayment plan-- ``(I) with a fixed monthly repayment amount paid over a fixed period of time equal to the applicable period determined under subclause (II); and ``(II) with the applicable period of time for repayment determined based on the total outstanding principal of all loans of the borrower made under this part before, on, or after July 1, 2026, at the time the borrower is entering repayment under such plan, as follows-- ``(aa) for a borrower with total outstanding principal of less than $25,000, a period of 10 years; ``(bb) for a borrower with total outstanding principal of not less than $25,000 and less than $50,000, a period of 15 years; ``(cc) for a borrower with total outstanding principal of not less than $50,000 and less than $100,000, a period of 20 years; and ``(dd) for a borrower with total outstanding principal of $100,000 or more, a period of 25 years; or ``(ii) the income-based Repayment Assistance Plan under subsection (q). ``(B) Selection by secretary.--If a borrower of a loan made under this part on or after July 1, 2026, does not select a repayment plan described in subparagraph (A), the Secretary shall provide the borrower with the standard repayment plan described in subparagraph (A)(i). ``(C) Selection applies to all outstanding loans.--A borrower is required to pay each outstanding loan of the borrower made under this part under the same selected repayment plan, except that a borrower who selects the Repayment Assistance Plan and also has an excepted loan that is not eligible for repayment under such Repayment Assistance Plan shall repay the excepted loan separately from other loans under this part obtained by the borrower. ``(D) Changes of repayment plan.--A borrower may change the borrower's selection of-- [[Page S3859]] ``(i) the standard repayment plan under subparagraph (A)(i), or the Secretary's selection of such plan for the borrower under subparagraph (B), as the case may be, to the Repayment Assistance Plan under subparagraph (A)(ii) at any time; and ``(ii) the Repayment Assistance Plan under subparagraph (A)(ii) to the standard repayment plan under subparagraph (A)(i) at any time. ``(E) Repayment for borrowers with excepted loans made on or after july 1, 2026.-- ``(i) Standard repayment plan required.--Notwithstanding subparagraphs (A) through (D), beginning on July 1, 2026, the Secretary shall require a borrower who has received an excepted loan made on or after such date (including such a borrower who also has an excepted loan made before such date) to repay each excepted loan, including principal and interest on those excepted loans, under the standard repayment plan under subparagraph (A)(i). The borrower shall be entitled to accelerate, without penalty, repayment on such loans. ``(ii) Excepted loan defined.--For the purposes of this paragraph, the term `excepted loan' means a loan with an outstanding balance that is-- ``(I) a Federal Direct PLUS Loan that is made on behalf of a dependent student; or ``(II) a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on-- ``(aa) an excepted PLUS loan, as defined in section 493C(a)(1); or ``(bb) an excepted consolidation loan (as such term is defined in section 493C(a)(2)(A), notwithstanding subparagraph (B) of such section).''. (c) Elimination of Authority to Provide Income Contingent Repayment Plans.-- (1) Repeal.--Subsection (e) of section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e(e)) is repealed. (2) Further amendments to eliminate income contingent repayment.-- (A) Section 428 of the Higher Education Act of 1965 (20 U.S.C. 1078) is amended-- (i) in subsection (b)(1)(D), by striking ``be subject to income contingent repayment in accordance with subsection (m)'' and inserting ``be subject to income-based repayment in accordance with subsection (m)''; and (ii) in subsection (m)-- (I) in the subsection heading, by striking ``Income Contingent and''; (II) by amending paragraph (1) to read as follows: ``(1) Authority of secretary to require.--The Secretary may require borrowers who have defaulted on loans made under this part that are assigned to the Secretary under subsection (c)(8) to repay those loans pursuant to an income-based repayment plan under section 493C.''; and (III) in the heading of paragraph (2), by striking ``income contingent or''. (B) Section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078-3) is amended-- (i) in subsection (a)(3)(B)(i)(V)(aa), by striking ``for the purposes of obtaining income contingent repayment or income-based repayment'' and inserting ``for the purposes of qualifying for an income-based repayment plan under section 455(q) or section 493C, as applicable''; (ii) in subsection (b)(5), by striking ``be repaid either pursuant to income contingent repayment under part D of this title, pursuant to income-based repayment under section 493C, or pursuant to any other repayment provision under this section'' and inserting ``be repaid pursuant to an income- based repayment plan under section 493C or any other repayment provision under this section''; and (iii) in subsection (c)-- (I) in paragraph (2)(A), by striking ``or by the terms of repayment pursuant to income contingent repayment offered by the Secretary under subsection (b)(5)'' and inserting ``or by the terms of repayment pursuant to an income-based repayment plan under section 493C''; and (II) in paragraph (3)(B), by striking ``except as required by the terms of repayment pursuant to income contingent repayment offered by the Secretary under subsection (b)(5)'' and inserting ``except as required by the terms of repayment pursuant to an income-based repayment plan under section 493C''. (C) Section 485(d)(1) of the Higher Education Act of 1965 (20 U.S.C. 1092(d)(1)) is amended by striking ``income- contingent and''. (D) Section 494(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1098h(a)(2)) is amended-- (i) in the paragraph heading, by striking ``Income- contingent and income-based'' and inserting ``Income-based''; and (ii) in subparagraph (A)-- (I) in the matter preceding clause (i), by striking ``income-contingent or''; and (II) in clause (ii)(I), by striking ``section 455(e)(8) or the equivalent procedures established under section 493C(c)(2)(B), as applicable'' and inserting ``section 493C(c)(2)''. (3) Effective date.--The amendments made by this subsection shall take effect on July 1, 2028. (d) Repayment Assistance Plan.--Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following new subsection: ``(q) Repayment Assistance Plan.-- ``(1) In general.--Notwithstanding any other provision of this Act, beginning on July 1, 2026, the Secretary shall carry out an income-based repayment plan (to be known as the `Repayment Assistance Plan'), that shall have the following terms and conditions: ``(A) The total monthly repayment amount owed by a borrower for all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan shall be equal to the applicable monthly payment of a borrower calculated under paragraph (4)(B), except that the borrower may not be precluded from repaying an amount that exceeds such amount for any month. ``(B) The Secretary shall apply the borrower's applicable monthly payment under this paragraph first toward interest due on each such loan, next toward any fees due on each loan, and then toward the principal of each loan. ``(C) Any principal due and not paid under subparagraph (B) or paragraph (2)(B) shall be deferred. ``(D) A borrower who is not in a period of deferment or forbearance shall make an applicable monthly payment for each month until the earlier of-- ``(i) the date on which the outstanding balance of principal and interest due on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is $0; or ``(ii) the date on which the borrower has made 360 qualifying monthly payments. ``(E) The Secretary shall cancel any outstanding balance of principal and interest due on a loan made under this part to a borrower-- ``(i) who, for any period of time, participated in the Repayment Assistance Plan under this subsection; ``(ii) whose most recent payment for such loan prior to the loan cancellation under this subparagraph was made under such Repayment Assistance Plan; and ``(iii) who has made 360 qualifying monthly payments on such loan. ``(F) For the purposes of this subsection, the term `qualifying monthly payment' means any of the following: ``(i) An on-time applicable monthly payment under this subsection. ``(ii) An on-time monthly payment under the standard repayment plan under subsection (d)(7)(A)(i) of not less than the monthly payment required under such plan. ``(iii) A monthly payment under any repayment plan (excluding the Repayment Assistance Plan under this subsection) of not less than the monthly payment that would be required under a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years. ``(iv) A monthly payment under section 493C of not less than the monthly payment required under such section, including a monthly payment equal to the minimum payment amount permitted under such section. ``(v) A monthly payment made before July 1, 2028, under an income contingent repayment plan carried out under section 455(d)(1)(D) (or under an alternative repayment plan in lieu of repayment under such an income contingent repayment plan, if placed in such an alternative repayment plan by the Secretary) of not less than the monthly payment required under such a plan, including a monthly payment equal to the minimum payment amount permitted under such a plan. ``(vi) A month when the borrower did not make a payment because the borrower was in deferment under subsection (f)(2)(B) or due to an economic hardship described in subsection (f)(2)(D). ``(vii) A month that ended before the date of enactment of this subsection when the borrower did not make a payment because the borrower was in a period of deferment or forbearance described in section 685.209(k)(4)(iv) of title 34, Code of Federal Regulations (as in effect on the date of enactment of this subsection). ``(G) The procedures established by the Secretary under section 493C(c) shall apply for annually determining the borrower's eligibility for the Repayment Assistance Plan, including verification of a borrower's annual income and the annual amount due on the total amount of loans eligible to be repaid under this subsection, and such other procedures as are necessary to effectively implement income-based repayment under this subsection. With respect to carrying out section 494(a)(2) for the Repayment Assistance Plan, an individual may elect to opt out of the disclosures required under section 494(a)(2)(A)(ii) in accordance with the procedures established under section 493C(c)(2). ``(2) Balance assistance for distressed borrowers.-- ``(A) Interest subsidy.--With respect to a borrower of a loan made under this part, for each month for which such a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment is insufficient to pay the total amount of interest that accrues for the month on all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection, the amount of interest accrued and not paid for the month shall not be charged to the borrower. ``(B) Matching principal payment.--With respect to a borrower of a loan made under this part and not in a period of deferment or forbearance, for each month for which a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment reduces the total outstanding principal balance of all loans of [[Page S3860]] the borrower repaid pursuant to the Repayment Assistance Plan under this subsection by less than $50, the Secretary shall reduce such total outstanding principal balance of the borrower by an amount that is equal to-- ``(i) the amount that is the lesser of-- ``(I) $50; or ``(II) the total amount paid by the borrower for such month pursuant to paragraph (1)(A); minus ``(ii) the total amount paid by the borrower for such month pursuant to paragraph (1)(A) that is applied to such total outstanding principal balance. ``(3) Additional documents.--A borrower who chooses, or is required, to repay a loan under this subsection, and for whom adjusted gross income is unavailable or does not reasonably reflect the borrower's current income, shall provide to the Secretary other documentation of income satisfactory to the Secretary, which documentation the Secretary may use to determine repayment under this subsection. ``(4) Definitions.--In this subsection: ``(A) Adjusted gross income.--The term `adjusted gross income', when used with respect to a borrower, means the adjusted gross income (as such term is defined in section 62 of the Internal Revenue Code of 1986) of the borrower (and the borrower's spouse, as applicable) for the most recent taxable year, except that, in the case of a married borrower who files a separate Federal income tax return, the term does not include the adjusted gross income of the borrower's spouse. ``(B) Applicable monthly payment.-- ``(i) In general.--Except as provided in clause (ii), (iii), or (vi), the term `applicable monthly payment' means, when used with respect to a borrower, the amount equal to-- ``(I) the applicable base payment of the borrower, divided by 12; minus ``(II) $50 for each dependent of the borrower (which, in the case of a married borrower filing a separate Federal income tax return, shall include only each dependent that the borrower claims on that return). ``(ii) Minimum amount.--In the case of a borrower with an applicable monthly payment amount calculated under clause (i) that is less than $10, the applicable monthly payment of the borrower shall be $10. ``(iii) Final payment.--In the case of a borrower whose total outstanding balance of principal and interest on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is less than the applicable monthly payment calculated pursuant to clause (i) or (ii), as applicable, then the applicable monthly payment of the borrower shall be the total outstanding balance of principal and interest on all such loans. ``(iv) Base payment.--The amount of the applicable base payment for a borrower with an adjusted gross income of-- ``(I) not more than $10,000, is $120; ``(II) more than $10,000 and not more than $20,000, is 1 percent of such adjusted gross income; ``(III) more than $20,000 and not more than $30,000, is 2 percent of such adjusted gross income; ``(IV) more than $30,000 and not more than $40,000, is 3 percent of such adjusted gross income; ``(V) more than $40,000 and not more than $50,000, is 4 percent of such adjusted gross income; ``(VI) more than $50,000 and not more than $60,000, is 5 percent of such adjusted gross income; ``(VII) more than $60,000 and not more than $70,000, is 6 percent of such adjusted gross income; ``(VIII) more than $70,000 and not more than $80,000, is 7 percent of such adjusted gross income; ``(IX) more than $80,000 and not more than $90,000, is 8 percent of such adjusted gross income; ``(X) more than $90,000 and not more than $100,000, is 9 percent of such adjusted gross income; and ``(XI) more than $100,000, is 10 percent of such adjusted gross income. ``(v) Dependent.--For the purposes of this paragraph, the term `dependent' means an individual who is a dependent under section 152 of the Internal Revenue Code of 1986. ``(vi) Special rule.--In the case of a borrower who is required by the Secretary to provide information to the Secretary to determine the applicable monthly payment of the borrower under this subparagraph, and who does not comply with such requirement, the applicable monthly payment of the borrower shall be-- ``(I) the sum of the monthly payment amounts the borrower would have paid for each of the borrower's loans made under this part under a standard repayment plan with a fixed monthly repayment amount, paid over a period of 10 years, based on the outstanding principal due on such loan when such loan entered repayment; and ``(II) determined pursuant to this clause until the date on which the borrower provides such information to the Secretary.''. (e) Federal Consolidation Loans.--Section 455(g) of the Higher Education Act of 1965 (20 U.S.C. 1087e(g)) is amended by adding at the end the following new paragraph: ``(3) Consolidation loans made on or after july 1, 2026.--A Federal Direct Consolidation Loan offered to a borrower under this part on or after July 1, 2026, may only be repaid pursuant to a repayment plan described in clause (i) or (ii) of subsection (d)(7)(A) of this section, as applicable, and the repayment schedule of such a Consolidation Loan shall be determined in accordance with such repayment plan.''. (f) Income-Based Repayment.-- (1) Amendments.-- (A) Excepted consolidation loan defined.--Section 493C(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1098e(a)(2)) is amended to read as follows: ``(2) Excepted consolidation loan.-- ``(A) In general.--The term `excepted consolidation loan' means-- ``(i) a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on an excepted PLUS loan; or ``(ii) a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on a consolidation loan under section 428C, or a Federal Direct Consolidation Loan described in clause (i). ``(B) Exclusion.--The term `excepted consolidation loan' does not include a Federal Direct Consolidation Loan described in subparagraph (A) that, on any date during the period beginning on the date of enactment of this subparagraph and ending on June 30, 2028, was being repaid-- ``(i) pursuant to the Income Contingent Repayment (ICR) plan in accordance with section 685.209(b) of title 34, Code of Federal Regulations (as in effect on June 30, 2023); or ``(ii) pursuant to another income driven repayment plan.''. (B) Termination of partial financial hardship eligibility.--Section 493C(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 1098e(a)(3)) is amended to read as follows: ``(3) Applicable amount.--The term `applicable amount' means 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which-- ``(A) the borrower's, and the borrower's spouse's (if applicable), adjusted gross income; exceeds ``(B) 150 percent of the poverty line applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)).''. (C) Terms of income-based repayment.--Section 493C(b) of the Higher Education Act of 1965 (20 U.S.C. 1098e(b)) is amended-- (i) by amending paragraph (1) to read as follows: ``(1) a borrower of any loan made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), may elect to have the borrower's aggregate monthly payment for all such loans not exceed the applicable amount divided by 12;''; (ii) by striking paragraph (6) and inserting the following: ``(6) if the monthly payment amount calculated under this section for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) exceeds the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection (referred to in this paragraph as the `standard monthly repayment amount'), or if the borrower no longer wishes to continue the election under this subsection, then-- ``(A) the maximum monthly payment required to be paid for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) shall be the standard monthly repayment amount; and ``(B) the amount of time the borrower is permitted to repay such loans may exceed 10 years;''; (iii) in paragraph (7)(B)(iv), by inserting ``(as such section was in effect on the day before the date of the repeal of section 455(e)'' after ``section 455(d)(1)(D)''; and (iv) in paragraph (8), by inserting ``or the Repayment Assistance Program under section 455(q)'' after ``standard repayment plan''. (D) Eligibility determinations.--Section 493C(c) of the Higher Education Act of 1965 (20 U.S.C. 1098e(c)) is amended to read as follows: ``(c) Eligibility Determinations; Automatic Recertification.-- ``(1) In general.--The Secretary shall establish procedures for annually determining, in accordance with paragraph (2), the borrower's eligibility for income-based repayment, including the verification of a borrower's annual income and the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), and such other procedures as are necessary to effectively implement income-based repayment under this section. The Secretary shall consider, but is not limited to, the procedures established in accordance with section 455(e)(1) (as in effect on the day before the date of repeal of subsection (e) of section 455) or in connection with income sensitive repayment schedules under section 428(b)(9)(A)(iii) or 428C(b)(1)(E). ``(2) Automatic recertification.-- ``(A) In general.--The Secretary shall establish and implement, with respect to any borrower enrolled in an income-based repayment program under this section or under section 455(q), procedures to-- ``(i) use return information disclosed under section 6103(l)(13) of the Internal Revenue Code of 1986, pursuant to approval provided [[Page S3861]] under section 494, to determine the repayment obligation of the borrower without further action by the borrower; ``(ii) allow the borrower (or the spouse of the borrower), at any time, to opt out of disclosure under such section 6103(l)(13) and instead provide such information as the Secretary may require to determine the repayment obligation of the borrower (or withdraw from the repayment plan under this section or under section 455(q), as the case may be); and ``(iii) provide the borrower with an opportunity to update the return information so disclosed before the determination of the repayment obligation of the borrower. ``(B) Applicability.--Subparagraph (A) shall apply to each borrower of a loan eligible to be repaid under this section or under section 455(q), who, on or after the date on which the Secretary establishes procedures under such subparagraph (A)-- ``(i) selects, or is required to repay such loan pursuant to, an income-based repayment plan under this section or under section 455(q); or ``(ii) recertifies income or family size under such plan.''. (E) Special terms for new borrowers on and after july 1, 2014.--Section 493C(e) of the Higher Education Act of 1965 (20 U.S.C. 1098e(e)) is amended-- (i) in the subsection heading, by inserting ``and Before July 1, 2026'' after ``After July 1, 2014'' ; and (ii) by inserting ``and before July 1, 2026'' after ``after July 1, 2014''. (2) Effective date and application.--The amendments made by this subsection shall take effect on the date of enactment of this title, and shall apply with respect to any borrower who is in repayment before, on, or after the date of enactment of this title. (g) FFEL Adjustment.--Section 428(b)(9)(A)(v) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(9)(A)(v)) is amended by striking ``who has a partial financial hardship''. SEC. 82002. DEFERMENT; FORBEARANCE. (a) Sunset of Economic Hardship and Unemployment Deferments.--Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended-- (1) by striking the subsection heading and inserting the following: ``Deferment; Forbearance''; (2) in paragraph (2)-- (A) in subparagraph (B), by striking ``not in'' and inserting ``subject to paragraph (7), not in'' ; and (B) in subparagraph (D), by striking ``not in'' and inserting ``subject to paragraph (7), not in''; and (3) by adding at the end the following: ``(7) Sunset of unemployment and economic hardship deferments.--A borrower who receives a loan made under this part on or after July 1, 2027, shall not be eligible to defer such loan under subparagraph (B) or (D) of paragraph (2).''. (b) Forbearance on Loans Made Under This Part on or After July 1, 2027.--Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended by adding at the end the following: ``(8) Forbearance on loans made under this part on or after july 1, 2027.--A borrower who receives a loan made under this part on or after July 1, 2027, may only be eligible for a forbearance on such loan pursuant to section 428(c)(3)(B) that does not exceed 9 months during any 24-month period.''. SEC. 82003. LOAN REHABILITATION. (a) Updating Loan Rehabilitation Limits.-- (1) FFEL and direct loans.--Section 428F(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1078-6(a)(5)) is amended by striking ``one time'' and inserting ``two times''. (2) Perkins loans.--Section 464(h)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(h)(1)(D)) is amended by striking ``once'' and inserting ``twice''. (3) Effective date.--The amendments made by this subsection shall take effect beginning on July 1, 2027, and shall apply with respect to any loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.). (b) Minimum Monthly Payment Amount.--Section 428F(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1078- 6(a)(1)(B)) is amended by adding at the end the following: ``With respect to a borrower who has 1 or more loans made under part D on or after July 1, 2027 that are described in subparagraph (A), the total monthly payment of the borrower for all such loans shall not be less than $10.''. SEC. 82004. PUBLIC SERVICE LOAN FORGIVENESS. Section 455(m)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(1)(A)) is amended-- (1) in clause (iii), by striking ``; or'' and inserting a semicolon; (2) in clause (iv), by striking ``; and'' and inserting ``(as in effect on the day before the date of the repeal of subsection (e) of this section); or''; and (3) by adding at the end the following new clause: ``(v) on-time payments under the Repayment Assistance Plan under subsection (q); and''. SEC. 82005. STUDENT LOAN SERVICING. Paragraph (1) of section 458(a) of the Higher Education Act of 1965 (20 U.S.C. 1087h(a)(1)) is amended to read as follows: ``(1) Additional mandatory funds for servicing.--There shall be available to the Secretary (in addition to any other amounts appropriated under any appropriations Act for administrative costs under this part and part B and out of any money in the Treasury not otherwise appropriated) $1,000,000,000 to be obligated for administrative costs under this part and part B, including the costs of servicing the direct student loan programs under this part, which shall remain available until expended.''. Subtitle D--Pell Grants SEC. 83001. ELIGIBILITY. (a) Foreign Income and Federal Pell Grant Eligibility.-- (1) Adjusted gross income defined.--Section 401(a)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A)) is amended to read as follows: ``(A) the term `adjusted gross income' means-- ``(i) in the case of a dependent student, for the second tax year preceding the academic year-- ``(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student's parents; plus ``(II) for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student's parents; and ``(ii) in the case of an independent student, for the second tax year preceding the academic year-- ``(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student (and the student's spouse, if applicable); plus ``(II) for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student (and the student's spouse, if applicable);''. (2) Sunset.--Section 401(b)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended-- (A) by striking ``A student'' and inserting ``For each academic year beginning before July 1, 2026, a student''; and (B) by inserting ``, as in effect for such academic year,'' after ``section 479A(b)(1)(B)(v)''. (3) Conforming amendments.-- (A) In general.--Section 479A(b)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is amended-- (i) by striking clause (v); and (ii) by redesignating clauses (vi) and (vii) as clauses (v) and (vi), respectively. (B) Effective date.--The amendment made by subparagraph (A) shall take effect on July 1, 2026. (b) Federal Pell Grant Ineligibility Due to a High Student Aid Index.-- (1) In general.--Section 401(b)(1) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)) is amended by adding at the end the following: ``(F) Ineligibility of students with a high student aid index.--Notwithstanding subparagraphs (A) through (E), a student shall not be eligible for a Federal Pell Grant under this subsection for an academic year in which the student has a student aid index that equals or exceeds twice the amount of the total maximum Federal Pell Grant for such academic year.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect on July 1, 2026. SEC. 83002. WORKFORCE PELL GRANTS. (a) In General.--Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) is amended by adding at the end the following: ``(k) Workforce Pell Grant Program.-- ``(1) In general.--For the award year beginning on July 1, 2026, and each subsequent award year, the Secretary shall award grants (to be known as `Workforce Pell Grants') to eligible students under paragraph (2) in accordance with this subsection. ``(2) Eligible students.--To be eligible to receive a Workforce Pell Grant under this subsection for any period of enrollment, a student shall meet the eligibility requirements for a Federal Pell Grant under this section, except that the student-- ``(A) shall be enrolled, or accepted for enrollment, in an eligible program under section 481(b)(3) (hereinafter referred to as an `eligible workforce program'); and ``(B) may not-- ``(i) be enrolled, or accepted for enrollment, in a program of study that leads to a graduate credential; or ``(ii) have attained such a credential. ``(3) Terms and conditions of awards.--The Secretary shall award Workforce Pell Grants under this subsection in the same manner and with the same terms and conditions as the Secretary awards Federal Pell Grants under this section, except that-- ``(A) each use of the term `eligible program' (except in subsection (b)(9)(A)) shall be substituted by `eligible workforce program under section 481(b)(3)'; ``(B) the provisions of subsection (d)(2) shall not be applicable to eligible workforce programs; and ``(C) a student who is eligible for a grant equal to less than the amount of the minimum Federal Pell Grant because the eligible workforce program in which the student is enrolled or accepted for enrollment is less than an academic year (in hours of instruction or weeks of duration) may still be eligible for a Workforce Pell Grant in an amount that is prorated based on the length of the program. ``(4) Prevention of double benefits.--No eligible student described in paragraph (2) [[Page S3862]] may concurrently receive a grant under both this subsection and-- ``(A) subsection (b); or ``(B) subsection (c). ``(5) Duration limit.--Any period of study covered by a Workforce Pell Grant awarded under this subsection shall be included in determining a student's duration limit under subsection (d)(5).''. (b) Program Eligibility for Workforce Pell Grants.--Section 481(b) of the Higher Education Act of 1965 (20 U.S.C. 1088(b)) is amended-- (1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and (2) by inserting after paragraph (2) the following: ``(3)(A) A program is an eligible program for purposes of the Workforce Pell Grant program under section 401(k) only if-- ``(i) it is a program of at least 150 clock hours of instruction, but less than 600 clock hours of instruction, or an equivalent number of credit hours, offered by an eligible institution during a minimum of 8 weeks, but less than 15 weeks; ``(ii) it is not offered as a correspondence course, as defined in 600.2 of title 34, Code of Federal Regulations (as in effect on July 1, 2021); ``(iii) the Governor of a State, after consultation with the State board, determines that the program-- ``(I) provides an education aligned with the requirements of high-skill, high-wage (as identified by the State pursuant to section 122 of the Carl D. Perkins Career and Technical Education Act (20 U.S.C. 2342)), or in-demand industry sectors or occupations; ``(II) meets the hiring requirements of potential employers in the sectors or occupations described in subclause (I); ``(III) either-- ``(aa) leads to a recognized postsecondary credential that is stackable and portable across more than one employer; or ``(bb) with respect to students enrolled in the program-- ``(AA) prepares such students for employment in an occupation for which there is only one recognized postsecondary credential; and ``(BB) provides such students with such a credential upon completion of such program; and ``(IV) prepares students to pursue 1 or more certificate or degree programs at 1 or more institutions of higher education (which may include the eligible institution providing the program), including by ensuring-- ``(aa) that a student, upon completion of the program and enrollment in such a related certificate or degree program, will receive academic credit for the Workforce Pell program that will be accepted toward meeting such certificate or degree program requirements; and ``(bb) the acceptability of such credit toward meeting such certificate or degree program requirements; and ``(iv) after the Governor of such State makes the determination that the program meets the requirements under clause (iii), the Secretary determines that-- ``(I) the program has been offered by the eligible institution for not less than 1 year prior to the date on which the Secretary makes a determination under this clause; ``(II) for each award year, the program has a verified completion rate of at least 70 percent, within 150 percent of the normal time for completion; ``(III) for each award year, the program has a verified job placement rate of at least 70 percent, measured 180 days after completion; and ``(IV) for each award year, the total amount of the published tuition and fees of the program for such year is an amount that does not exceed the value-added earnings of students who received Federal financial aid under this title and who completed the program 3 years prior to the award year, as such earnings are determined by calculating the difference between-- ``(aa) the median earnings of such students, as adjusted by the State and metropolitan area regional price parities of the Bureau of Economic Analysis based on the location of such program; and ``(bb) 150 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)) for such year. ``(B) In this paragraph: ``(i) The term `eligible institution' means an eligible institution for purposes of section 401. ``(ii) The term `Governor' means the chief executive of a State. ``(iii) The terms `in-demand industry sector or occupation', `recognized postsecondary credential', and `State board' have the meanings given such terms in section 3 of the Workforce Innovation and Opportunity Act.''. (c) Effective Date; Applicability.--The amendments made by this section shall take effect on July 1, 2026, and shall apply with respect to award year 2026-2027 and each succeeding award year. SEC. 83003. PELL SHORTFALL. Section 401(b)(7)(A)(iii) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(7)(A)(iii)) is amended by striking ``$2,170,000,000'' and inserting ``$12,670,000,000''. SEC. 83004. FEDERAL PELL GRANT EXCLUSION RELATING TO OTHER GRANT AID. Section 401(d) of the Higher Education Act of 1965 (20 U.S.C. 1070a(d)) is amended by adding at the end the following: ``(6) Exclusion.--Beginning on July 1, 2026, and notwithstanding this subsection or subsection (b), a student shall not be eligible for a Federal Pell Grant under subsection (b) during any period for which the student receives grant aid from non-Federal sources, including States, institutions of higher education, or private sources, in an amount that equals or exceeds the student's cost of attendance for such period.''. Subtitle E--Accountability SEC. 84001. INELIGIBILITY BASED ON LOW EARNING OUTCOMES. Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d) is amended-- (1) in subsection (a)-- (A) in paragraph (5), by striking ``and'' after the semicolon; (B) by redesignating paragraph (6) as paragraph (7); and (C) by inserting after paragraph (5) the following: ``(6) provide assurances that, beginning July 1, 2026, the institution will comply with all requirements of subsection (c); and''; (2) in subsection (b)(2), by striking ``and (6)'' and inserting ``(6), and (7)''; (3) by redesignating subsection (c) as subsection (d); and (4) by inserting after subsection (b) the following: ``(c) Ineligibility for Certain Programs Based on Low Earning Outcomes.-- ``(1) In general.--Notwithstanding section 481(b), an institution of higher education subject to this subsection shall not use funds under this part for student enrollment in an educational program offered by the institution that is described in paragraph (2). ``(2) Low-earning outcome programs described.--An educational program at an institution is described in this paragraph if the program awards an undergraduate degree, graduate or professional degree, or graduate certificate, for which the median earnings (as determined by the Secretary) of the programmatic cohort of students who received funds under this title for enrollment in such program, who completed such program during the academic year that is 4 years before the year of the determination, who are not enrolled in any institution of higher education, and who are working, are, for not less than 2 of the 3 years immediately preceding the date of the determination, less than the median earnings of a working adult described in paragraph (3) for the corresponding year. ``(3) Calculation of median earnings.-- ``(A) Working adult.--For purposes of applying paragraph (2) to an educational program at an institution, a working adult described in this paragraph is a working adult who, for the corresponding year-- ``(i) is aged 25 to 34; ``(ii) is not enrolled in an institution of higher education; and ``(iii)(I) in the case of a determination made for an educational program that awards a baccalaureate or lesser degree, has only a high school diploma or its recognized equivalent; or ``(II) in the case of a determination made for a graduate or professional program, has only a baccalaureate degree. ``(B) Source of data.--For purposes of applying paragraph (2) to an educational program at an institution, the median earnings of a working adult, as described in subparagraph (A), shall be based on data from the Bureau of the Census-- ``(i) with respect to an educational program that awards a baccalaureate or lesser degree-- ``(I) for the State in which the institution is located; or ``(II) if fewer than 50 percent of the students enrolled in the institution reside in the State where the institution is located, for the entire United States; and ``(ii) with respect to an educational program that is a graduate or professional program-- ``(I) for the lowest median earnings of-- ``(aa) a working adult in the State in which the institution is located; ``(bb) a working adult in the same field of study (as determined by the Secretary, such as by using the 2-digit CIP code) in the State in which the institution is located; and ``(cc) a working adult in the same field of study (as so determined) in the entire United States; or ``(II) if fewer than 50 percent of the students enrolled in the institution reside in the State where the institution is located, for the lower median earnings of-- ``(aa) a working adult in the entire United States; or ``(bb) a working adult in the same field of study (as so determined) in the entire United States. ``(4) Small programmatic cohorts.--For any year for which the programmatic cohort described in paragraph (2) for an educational program of an institution is fewer than 30 individuals, the Secretary shall-- ``(A) first, aggregate additional years of programmatic data in order to achieve a cohort of at least 30 individuals; and ``(B) second, in cases in which the cohort (including the individuals added under subparagraph (A)) is still fewer than 30 individuals, aggregate additional cohort years of programmatic data for educational programs of equivalent length in order to achieve a cohort of at least 30 individuals. ``(5) Appeals process.--An educational program shall not lose eligibility under this subsection unless the institution has had the [[Page S3863]] opportunity to appeal the programmatic median earnings of students working and not enrolled determination under paragraph (2), through a process established by the Secretary. During such appeal, the Secretary may permit the educational program to continue to participate in the program under this part. ``(6) Notice to students.-- ``(A) In general.--If an educational program of an institution of higher education subject to this subsection does not meet the cohort median earning requirements, as described in paragraph (2), for one year during the applicable covered period but has not yet failed to meet such requirements for 2 years during such covered period, the institution shall promptly inform each student enrolled in the educational program of the eligible program's low cohort median earnings and that the educational program is at risk of losing its eligibility for funds under this part. ``(B) Covered period.--In this paragraph, the term `covered period' means the period of the 3 years immediately preceding the date of a determination made under paragraph (2). ``(7) Regaining programmatic eligibility.--The Secretary shall establish a process by which an institution of higher education that has an educational program that has lost eligibility under this subsection may, after a period of not less than 2 years of such program's ineligibility, apply to regain such eligibility, subject to the requirements established by the Secretary that further the purpose of this subsection.''. Subtitle F--Regulatory Relief SEC. 85001. DELAY OF RULE RELATING TO BORROWER DEFENSE TO REPAYMENT. (a) Delay.--Beginning on the date of enactment of this section, for loans that first originate before July 1, 2035, the provisions of subpart D of part 685 of title 34, Code of Federal Regulations (relating to borrower defense to repayment), as added or amended by the final regulations published by the Department of Education on November 1, 2022, and titled ``Institutional Eligibility Under the Higher Education Act of 1965, as Amended; Student Assistance General Provisions; Federal Perkins Loan Program; Federal Family Education Loan Program; and William D. Ford Federal Direct Loan Program'' (87 Fed. Reg. 65904) shall not be in effect. (b) Effect.--Beginning on the date of enactment of this section, with respect to loans that first originate before July 1, 2035, any regulations relating to borrower defense to repayment that took effect on July 1, 2020, are restored and revived as such regulations were in effect on such date. SEC. 85002. DELAY OF RULE RELATING TO CLOSED SCHOOL DISCHARGES. (a) Delay.--Beginning on the date of enactment of this section, for loans that first originate before July 1, 2035, the provisions of sections 674.33(g), 682.402(d), and 685.214 of title 34, Code of Federal Regulations (relating to closed school discharges), as added or amended by the final regulations published by the Department of Education on November 1, 2022, and titled ``Institutional Eligibility Under the Higher Education Act of 1965, as Amended; Student Assistance General Provisions; Federal Perkins Loan Program; Federal Family Education Loan Program; and William D. Ford Federal Direct Loan Program'' (87 Fed. Reg. 65904), shall not be in effect. (b) Effect.--Beginning on the date of enactment of this section, with respect to loans that first originate before July 1, 2035, the portions of the Code of Federal Regulations described in subsection (a) and amended by the final regulations described in subsection (a) shall be in effect as if the amendments made by such final regulations had not been made. Subtitle G--Limitation on Authority SEC. 86001. LIMITATION ON PROPOSING OR ISSUING REGULATIONS AND EXECUTIVE ACTIONS. Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended by inserting after section 492 the following: ``SEC. 492A. LIMITATION ON PROPOSING OR ISSUING REGULATIONS AND EXECUTIVE ACTIONS. ``(a) Proposed or Final Regulations and Executive Actions.--Beginning on the date of enactment of this section, the Secretary may not issue a proposed regulation, final regulation, or executive action to implement this title if the Secretary determines that the regulation or executive action will increase the subsidy cost (as `cost' is defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of a loan program under this title by more than $100,000,000. ``(b) Relationship to Other Requirements.--The requirements of subsection (a) shall not be construed to affect any other cost analysis required under any source of law for a regulation implementing this title.''. Subtitle H--Garden of Heroes SEC. 87001. GARDEN OF HEROES. In addition to amounts otherwise available, there are appropriated to the National Endowment for the Humanities for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available through fiscal year 2028, $40,000,000 for the procurement of statues as described in Executive Order 13934 (85 Fed. Reg. 41165; relating to building and rebuilding monuments to American heroes), Executive Order 13978 (86 Fed. Reg. 6809; relating to building the National Garden of American Heroes), and Executive Order 14189 (90 Fed. Reg. 8849; relating to celebrating America's birthday). Subtitle I--Office of Refugee Resettlement SEC. 88001. POTENTIAL SPONSOR VETTING FOR UNACCOMPANIED ALIEN CHILDREN APPROPRIATION. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Office of Refugee Resettlement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until September 30, 2028, for the purposes described in subsection (b). (b) Use of Funds.--The funds made available under subsection (a) may only be used for the Office of Refugee Resettlement to support costs associated with-- (1) background checks on potential sponsors, which shall include-- (A) the name of the potential sponsor and of all adult residents of the potential sponsor's household; (B) the social security number or tax payer identification number of the potential sponsor and of all adult residents of the potential sponsor's household; (C) the date of birth of the potential sponsor and of all adult residents of the potential sponsor's household; (D) the validated location of the residence at which the unaccompanied alien child will be placed; (E) an in-person or virtual interview with, and suitability study concerning, the potential sponsor and all adult residents of the potential sponsor's household; (F) contact information for the potential sponsor and for all adult residents of the potential sponsor's household; and (G) the results of all background and criminal records checks for the potential sponsor and for all adult residents of the potential sponsor's household, which shall include, at a minimum, an investigation of the public records sex offender registry, a public records background check, and a national criminal history check based on fingerprints; (2) home studies of potential sponsors of unaccompanied alien children; (3) determining whether an unaccompanied alien child poses a danger to self or others by conducting an examination of the unaccompanied alien child for gang-related tattoos and other gang-related markings and covering such tattoos or markings while the child is in the care of the Office of Refugee Resettlement; (4) data systems improvement and sharing that supports the health, safety, and well being of unaccompanied alien children by determining the appropriateness of potential sponsors of unaccompanied alien children and of adults residing in the household of the potential sponsor and by assisting with the identification and investigation of child labor exploitation and child trafficking; and (5) coordinating and communicating with State child welfare agencies regarding the placement of unaccompanied alien children in such States by the Office of Refugee Resettlement. (c) Definitions.--In this section: (1) Potential sponsor.--The term ``potential sponsor'' means an individual or entity who applies for the custody of an unaccompanied alien child. (2) Unaccompanied alien child.--The term ``unaccompanied alien child'' has the meaning given such term in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g)). TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS Subtitle A--Homeland Security Provisions SEC. 90001. BORDER INFRASTRUCTURE AND WALL SYSTEM. In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $46,550,000,000 for necessary expenses relating to the following elements of the border infrastructure and wall system: (1) Construction, installation, or improvement of new or replacement primary, waterborne, and secondary barriers. (2) Access roads. (3) Barrier system attributes, including cameras, lights, sensors, and other detection technology. (4) Any work necessary to prepare the ground at or near the border to allow U.S. Customs and Border Protection to conduct its operations, including the construction and maintenance of the barrier system. SEC. 90002. U.S. CUSTOMS AND BORDER PROTECTION PERSONNEL, FLEET VEHICLES, AND FACILITIES. (a) In General.--In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, the following: (1) Personnel.--$4,100,000,000, to remain available until September 30, 2029, to hire and train additional Border Patrol agents, Office of Field Operations officers, Air and Marine agents, rehired annuitants, and U.S. Customs and Border Protection field support personnel. (2) Retention, hiring, and performance bonuses.-- $2,052,630,000, to remain available until September 30, 2029, to provide recruitment bonuses, performance awards, or annual retention bonuses to eligible Border Patrol agents, Office of Field Operations officers, and Air and Marine agents. [[Page S3864]] (3) Vehicles.--$855,000,000, to remain available until September 30, 2029, for the repair of existing patrol units and the lease or acquisition of additional patrol units. (4) Facilities.--$5,000,000,000 for necessary expenses relating to lease, acquisition, construction, design, or improvement of facilities and checkpoints owned, leased, or operated by U.S. Customs and Border Protection. (b) Restriction.--None of the funds made available by subsection (a) may be used to recruit, hire, or train personnel for the duties of processing coordinators after October 31, 2028. SEC. 90003. DETENTION CAPACITY. (a) In General.--In addition to any amounts otherwise appropriated, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $45,000,000,000, for single adult alien detention capacity and family residential center capacity. (b) Duration and Standards.--Aliens may be detained at family residential centers, as described in subsection (a), pending a decision, under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), on whether the aliens are to be removed from the United States and, if such aliens are ordered removed from the United States, until such aliens are removed. The detention standards for the single adult detention capacity described in subsection (a) shall be set in the discretion of the Secretary of Homeland Security, consistent with applicable law. (c) Definition of Family Residential Center.--In this section, the term ``family residential center'' means a facility used by the Department of Homeland Security to detain family units of aliens (including alien children who are not unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g)))) who are encountered or apprehended by the Department of Homeland Security, regardless whether the facility is licensed by the State or a political subdivision of the State in which the facility is located. SEC. 90004. BORDER SECURITY, TECHNOLOGY, AND SCREENING. (a) In General.--In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $6,168,000,000 for the following: (1) Procurement and integration of new nonintrusive inspection equipment and associated civil works, including artificial intelligence, machine learning, and other innovative technologies, as well as other mission support, to combat the entry or exit of illicit narcotics at ports of entry and along the southwest, northern, and maritime borders. (2) Air and Marine operations' upgrading and procurement of new platforms for rapid air and marine response capabilities. (3) Upgrades and procurement of border surveillance technologies along the southwest, northern, and maritime borders. (4) Necessary expenses, including the deployment of technology, relating to the biometric entry and exit system under section 7208 of the Intelligence Reform and Terrorism Prevention Act of 2004 (8 U.S.C. 1365b). (5) Screening persons entering or exiting the United States. (6) Initial screenings of unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))), consistent with the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 (Public Law 110-457; 122 Stat. 5044). (7) Enhancing border security by combating drug trafficking, including fentanyl and its precursor chemicals, at the southwest, northern, and maritime borders. (8) Commemorating efforts and events related to border security. (b) Restrictions.--None of the funds made available under subsection (a) may be used for the procurement or deployment of surveillance towers along the southwest border and northern border that have not been tested and accepted by U.S. Customs and Border Protection to deliver autonomous capabilities. (c) Definition of Autonomous.--In this section, with respect to capabilities, the term ``autonomous'' means a system designed to apply artificial intelligence, machine learning, computer vision, or other algorithms to accurately detect, identify, classify, and track items of interest in real time such that the system can make operational adjustments without the active engagement of personnel or continuous human command or control. SEC. 90005. STATE AND LOCAL ASSISTANCE. (a) State Homeland Security Grant Programs.-- (1) In general.--In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, to be administered under the State Homeland Security Grant Program authorized under section 2004 of the Homeland Security Act of 2002 (6 U.S.C. 605), to enhance State, local, and Tribal security through grants, contracts, cooperative agreements, and other activities-- (A) $500,000,000 for State and local capabilities to detect, identify, track, or monitor threats from unmanned aircraft systems (as such term is defined in section 44801 of title 49, United States Code), consistent with titles 18 and 49 of the United States Code; (B) $625,000,000 for security and other costs related to the 2026 FIFA World Cup; (C) $1,000,000,000 for security, planning, and other costs related to the 2028 Olympics; and (D) $450,000,000 for the Operation Stonegarden Grant Program. (2) Terms and conditions.--None of the funds made available under subparagraph (B) or (C) of paragraph (1) shall be subject to the requirements of section 2004(e)(1) or section 2008(a)(12) of the Homeland Security Act of 2002 (6 U.S.C. 605(e)(1), 609(a)(12)). (b) State Border Security Reinforcement Fund.-- (1) Establishment.--There is established, in the Department of Homeland Security, a fund to be known as the ``State Border Security Reinforcement Fund.'' (2) Purposes.--The Secretary of Homeland Security shall use amounts appropriated or otherwise made available for the Fund for grants to eligible States and units of local government for any of the following purposes: (A) Construction or installation of a border wall, border fencing or other barrier, or buoys along the southern border of the United States, which may include planning, procurement of materials, and personnel costs related to such construction or installation. (B) Any work necessary to prepare the ground at or near land borders to allow construction and maintenance of a border wall or other barrier fencing. (C) Detection and interdiction of illicit substances and aliens who have unlawfully entered the United States and have committed a crime under Federal, State, or local law, and transfer or referral of such aliens to the Department of Homeland Security as provided by law. (D) Relocation of aliens who are unlawfully present in the United States from small population centers to other domestic locations. (3) Appropriation.--In addition to amounts otherwise available for the purposes described in paragraph (2), there is appropriated for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to the Department of Homeland Security for the State Border Security Reinforcement Fund established by paragraph (1), $10,000,000,000, to remain available until September 30, 2034, for qualified expenses for such purposes. (4) Eligibility.--The Secretary of Homeland Security may provide grants from the fund established by paragraph (1) to State agencies and units of local governments for expenditures made for completed, ongoing, or new activities, in accordance with law, that occurred on or after January 20, 2021. (5) Application.--Each State desiring to apply for a grant under this subsection shall submit an application to the Secretary containing such information in support of the application as the Secretary may require. The Secretary shall require that each State include in its application the purposes for which the State seeks the funds and a description of how the State plans to allocate the funds. The Secretary shall begin to accept applications not later than 90 days after the date of the enactment of this Act. (6) Terms and conditions.--Nothing in this subsection shall authorize any State or local government to exercise immigration or border security authorities reserved exclusively to the Federal Government under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.) or the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.). The Federal Emergency Management Agency may use not more than 1 percent of the funds made available under this subsection for the purpose of administering grants provided for in this section. SEC. 90006. PRESIDENTIAL RESIDENCE PROTECTION. (a) In General.--In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until September 30, 2029, for the reimbursement of extraordinary law enforcement personnel costs for protection activities directly and demonstrably associated with any residence of the President designated pursuant to section 3 or 4 of the Presidential Protection Assistance Act of 1976 (Public Law 94-524; 18 U.S.C. 3056 note) to be secured by the United States Secret Service. (b) Availability.--Funds appropriated under this section shall be available only for costs that a State or local agency-- (1) incurred or incurs on or after July 1, 2024; (2) demonstrates to the Administrator of the Federal Emergency Management Agency as being-- (A) in excess of typical law enforcement operation costs; (B) directly attributable to the provision of protection described in this section; and (C) associated with a nongovernmental property designated pursuant to section 3 or 4 of the Presidential Protection Assistance Act of 1976 (Public Law 94-524; 18 U.S.C. 3056 note) to be secured by the United States Secret Service; and (3) certifies to the Administrator as compensating protection activities requested by the United States Secret Service. (c) Terms and Conditions.--The Federal Emergency Management Agency may use not more than 3 percent of the funds made [[Page S3865]] available under this section for the purpose of administering grants provided for in this section. SEC. 90007. DEPARTMENT OF HOMELAND SECURITY APPROPRIATIONS FOR BORDER SUPPORT. In addition to amounts otherwise available, there are appropriated to the Secretary of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000,000, to remain available until September 30, 2029, for reimbursement of costs incurred in undertaking activities in support of the Department of Homeland Security's mission to safeguard the borders of the United States. Subtitle B--Governmental Affairs Provisions SEC. 90101. FEHB IMPROVEMENTS. (a) Short Title.--This section may be cited as the ``FEHB Protection Act of 2025''. (b) Definitions.--In this section: (1) Director.--The term ``Director'' means the Director of the Office of Personnel Management. (2) Health benefits plan; member of family.--The terms ``health benefits plan'' and ``member of family'' have the meanings given those terms in section 8901 of title 5, United States Code. (3) Open season.--The term ``open season'' means an open season described in section 890.301(f) of title 5, Code of Federal Regulations, or any successor regulation. (4) Program.--The term ``Program'' means the health insurance programs carried out under chapter 89 of title 5, United States Code, including the program carried out under section 8903c of that title. (5) Qualifying life event.--The term ``qualifying life event'' has the meaning given the term in section 892.101 of title 5, Code of Federal Regulations, or any successor regulation. (c) Verification Requirements.--Not later than 1 year after the date of enactment of this Act, the Director shall issue regulations and implement a process to verify-- (1) the veracity of any qualifying life event through which an enrollee in the Program seeks to add a member of family with respect to the enrollee to a health benefits plan under the Program; and (2) that, when an enrollee in the Program seeks to add a member of family with respect to the enrollee to the health benefits plan of the enrollee under the Program, including during any open season, the individual so added is a qualifying member of family with respect to the enrollee. (d) Fraud Risk Assessment.--In any fraud risk assessment conducted with respect to the Program on or after the date of enactment of this Act, the Director shall include an assessment of individuals who are enrolled in, or covered under, a health benefits plan under the Program even though those individuals are not eligible to be so enrolled or covered. (e) Family Member Eligibility Verification Audit.-- (1) In general.--During the 3-year period beginning on the date that is 1 year after the date of enactment of this Act, the Director shall carry out a comprehensive audit regarding members of family who are covered under an enrollment in a health benefits plan under the Program. (2) Contents.--With respect to the audit carried out under paragraph (1), the Director shall review marriage certificates, birth certificates, and other appropriate documents that are necessary to determine eligibility to enroll in a health benefits plan under the Program. (f) Disenrollment or Removal.--Not later than 180 days after the date of enactment of this Act, the Director shall develop a process by which any individual enrolled in, or covered under, a health benefits plan under the Program who is not eligible to be so enrolled or covered shall be disenrolled or removed from enrollment in, or coverage under, that health benefits plan. (g) Earned Benefits and Health Care Administrative Services Associated Oversight and Audit Funding.--Section 8909 of title 5, United States Code, is amended-- (1) in subsection (a)(2), by inserting before the period at the end the following: ``, except that the amounts required to be set aside under subsection (b)(2) shall not be subject to the limitations that may be specified annually by Congress''; and (2) in subsection (b)-- (A) by redesignating paragraph (2) as paragraph (3); and (B) by inserting after paragraph (1) the following: ``(2) In fiscal year 2026, $66,000,000, to be derived from all contributions, and to remain available until the end of fiscal year 2035, for the Director of the Office to carry out subsections (c) through (f) of the FEHB Protection Act of 2025.''. SEC. 90102. PANDEMIC RESPONSE ACCOUNTABILITY COMMITTEE. (a) Pandemic Response Accountability Committee Funding Availability.--In addition to amounts otherwise available, there is appropriated for fiscal year 2026, out of any money in the Treasury not otherwise appropriated, $88,000,000, to remain available until expended, for the Pandemic Response Accountability Committee to support oversight of the Coronavirus response and of funds provided in this Act or any other Act pertaining to the Coronavirus pandemic. (b) CARES Act.--Section 15010 of the CARES Act (Public Law 116-136; 134 Stat. 533) is amended-- (1) in subsection (a)(6)-- (A) in subparagraph (E), by striking ``or'' at the end; (B) in subparagraph (F), by striking ``and'' at the end and inserting ``or''; and (C) by adding at the end the following: ``(G) the Act titled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14'; and''; and (2) in subsection (k), by striking ``2025'' and inserting ``2034''. SEC. 90103. APPROPRIATION FOR THE OFFICE OF MANAGEMENT AND BUDGET. In addition to amounts otherwise available, there is appropriated to the Office of Management and Budget for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2029, 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 SEC. 100001. APPLICABILITY OF THE IMMIGRATION LAWS. (a) Applicability.--The fees under this subtitle shall apply to aliens in the circumstances described in this subtitle. (b) Terms.--The terms used under this subtitle shall have the meanings given such terms in section 101 of the Immigration and Nationality Act (8 U.S.C. 1101). (c) References to Immigration and Nationality Act.--Except as otherwise expressly provided, any reference in this subtitle to a section or other provision shall be considered to be to a section or other provision of the Immigration and Nationality Act (8 U.S.C. 1101 et seq.). SEC. 100002. ASYLUM FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security or the Attorney General, as applicable, shall require the payment of a fee, equal to the amount specified in this section, by any alien who files an application for asylum under section 208 (8 U.S.C. 1158) at the time such application is filed. (b) Initial Amount.--During fiscal year 2025, the amount specified in this section shall be the greater of-- (1) $100; or (2) such amount as the Secretary or the Attorney General, as applicable, may establish, by rule. (c) Annual Adjustments for Inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (1) the amount of the fee required under this section for the most recently concluded fiscal year; and (2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (d) Disposition of Asylum Fee Proceeds.--During each fiscal year-- (1) 50 percent of the fees received from aliens filing applications with the Attorney General-- (A) shall be credited to the Executive Office for Immigration Review; and (B) may be retained and expended without further appropriation; (2) 50 percent of fees received from aliens filing applications with the Secretary of Homeland Security-- (A) shall be credited to U.S. Citizenship and Immigration Services; (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended without further appropriation; and (3) any amounts received in fees required under this section that were not credited to the Executive Office for Immigration Review pursuant to paragraph (1) or to U.S. Citizenship and Immigration Services pursuant to paragraph (2) shall be deposited into the general fund of the Treasury. (e) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100003. EMPLOYMENT AUTHORIZATION DOCUMENT FEES. (a) Asylum Applicants.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien who files an initial application for employment authorization under section 208(d)(2) (8 U.S.C. 1158(d)(2)) at the time such initial employment authorization application is filed. (2) Initial amount.--During fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $550; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this section for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All [[Page S3866]] Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (4) Disposition of employment authorization document fees.--During each fiscal year-- (A) 25 percent of the fees collected pursuant to this subsection-- (i) shall be credited to U.S. Citizenship and Immigration Services; (ii) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (iii) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation, provided that not less than 50 percent is used to detect and prevent immigration benefit fraud; and (B) any amounts collected pursuant to this subsection that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. (b) Parolees.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien paroled into the United States for any initial application for employment authorization at the time such initial application is filed. Each initial employment authorization shall be valid for a period of 1 year or for the duration of the alien's parole, whichever is shorter. (2) Initial amount.--During fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $550; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (4) Disposition of parolee employment authorization application fees.--All of the fees collected pursuant to this subsection shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. (c) Temporary Protected Status.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien who files an initial application for employment authorization under section 244(a)(1)(B) (8 U.S.C. 1254a(a)(1)(B)) at the time such initial application is filed. Each initial employment authorization shall be valid for a period of 1 year, or for the duration of the alien's temporary protected status, whichever is shorter. (2) Initial amount.--During fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $550; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (4) Disposition of employment authorization application fees collected from aliens granted temporary protected status.--All of the fees collected pursuant to this subsection shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. SEC. 100004. IMMIGRATION PAROLE FEE. (a) In General.--Except as provided under subsection (b), the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this section and in addition to any other fee authorized by law, by any alien who is paroled into the United States. (b) Exceptions.--An alien shall not be subject to the fee otherwise required under subsection (a) if the alien establishes, to the satisfaction of the Secretary of Homeland Security, on an individual, case-by-case basis, that the alien is being paroled because-- (1)(A) the alien has a medical emergency; and (B)(i) the alien cannot obtain necessary treatment in the foreign state in which the alien is residing; or (ii) the medical emergency is life-threatening and there is insufficient time for the alien to be admitted to the United States through the normal visa process; (2)(A) the alien is the parent or legal guardian of an alien described in paragraph (1); and (B) the alien described in paragraph (1) is a minor; (3)(A) the alien is needed in the United States to donate an organ or other tissue for transplant; and (B) there is insufficient time for the alien to be admitted to the United States through the normal visa process; (4)(A) the alien has a close family member in the United States whose death is imminent; and (B) the alien could not arrive in the United States in time to see such family member alive if the alien were to be admitted to the United States through the normal visa process; (5)(A) the alien is seeking to attend the funeral of a close family member; and (B) the alien could not arrive in the United States in time to attend such funeral if the alien were to be admitted to the United States through the normal visa process; (6) the alien is an adopted child-- (A) who has an urgent medical condition; (B) who is in the legal custody of the petitioner for a final adoption-related visa; and (C) whose medical treatment is required before the expected award of a final adoption-related visa; (7) the alien-- (A) is a lawful applicant for adjustment of status under section 245 (8 U.S.C. 1255); and (B) is returning to the United States after temporary travel abroad; (8) the alien-- (A) has been returned to a contiguous country pursuant to section 235(b)(2)(C) (8 U.S.C. 1225(b)(2)(C)); and (B) is being paroled into the United States to allow the alien to attend the alien's immigration hearing; (9) the alien has been granted the status of Cuban and Haitian entrant (as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422; 8 U.S.C. 1522 note); or (10) the Secretary of Homeland Security determines that a significant public benefit has resulted or will result from the parole of an alien-- (A) who has assisted or will assist the United States Government in a law enforcement matter; (B) whose presence is required by the United States Government in furtherance of such law enforcement matter; and (C)(i) who is inadmissible or does not satisfy the eligibility requirements for admission as a nonimmigrant; or (ii) for which there is insufficient time for the alien to be admitted to the United States through the normal visa process. (c) Initial Amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (1) $1,000; or (2) such amount as the Secretary of Homeland Security may establish, by rule. (d) Annual Adjustments for Inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (1) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (e) Disposition of Fees Collected From Aliens Granted Parole.--All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. (f) No Fee Waiver.--Except as provided in subsection (b), fees required to be paid under this section shall not be waived or reduced. SEC. 100005. SPECIAL IMMIGRANT JUVENILE FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this section, by any alien, parent, or legal guardian of an alien applying for special immigrant juvenile status under section 101(a)(27)(J) (8 U.S.C. 1101(a)(27)(J)). (b) Initial Amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (1) $250; or (2) such amount as the Secretary of Homeland Security may establish, by rule. (c) Annual Adjustments for Inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (1) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which [[Page S3867]] the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (d) Disposition of Special Immigrant Juvenile Fees.--All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. SEC. 100006. TEMPORARY PROTECTED STATUS FEE. Section 244(c)(1)(B) of the Immigration and Nationality Act (8 U.S.C. 1254a(c)(1)(B)) is amended-- (1) by striking ``The Attorney General'' and inserting the following: ``(i) In general.--The Attorney General''; (2) in clause (i), as redesignated, by striking ``$50'' and inserting ``$500, subject to the adjustments required under clause (ii)''; and (3) by adding at the end the following: ``(ii) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the maximum amount of the fee authorized under clause (i) shall be equal to the sum of-- ``(I) the maximum amount of the fee authorized under this subparagraph for the most recently concluded fiscal year; and ``(II) the product resulting from the multiplication of the amount referred to in subclause (I) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. ``(iii) Disposition of temporary protected status fees.-- All of the fees collected pursuant to this subparagraph shall be deposited into the general fund of the Treasury. ``(iv) No fee waiver.--Fees required to be paid under this subparagraph shall not be waived or reduced.''. SEC. 100007. VISA INTEGRITY FEE. (a) Visa Integrity Fee.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien issued a nonimmigrant visa at the time of such issuance. (2) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $250; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar. (4) Disposition of visa integrity fees.--All of the fees collected pursuant to this section that are not reimbursed pursuant to subsection (b) shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. (b) Fee Reimbursement.--The Secretary of Homeland Security may provide a reimbursement to an alien of the fee required under subsection (a) for the issuance of a nonimmigrant visa after the expiration of such nonimmigrant visa's period of validity if such alien demonstrates that he or she-- (1) after admission to the United States pursuant to such nonimmigrant visa, complied with all conditions of such nonimmigrant visa, including the condition that an alien shall not accept unauthorized employment; and (2)(A) has not sought to extend his or her period of admission during such period of validity and departed the United States not later than 5 days after the last day of such period; or (B) during such period of validity, was granted an extension of such nonimmigrant status or an adjustment to the status of a lawful permanent resident. SEC. 100008. FORM I-94 FEE. (a) Fee Authorized.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any alien who submits an application for a Form I-94 Arrival/Departure Record. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $24; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar. (c) Disposition of Form I-94 Fees.--During each fiscal year-- (1) 20 percent of the fees collected pursuant to this section-- (A) shall be deposited into the Land Border Inspection Fee Account in accordance with section 286(q)(2) (8 U.S.C. 1356(q)(2)); and (B) shall be made available to U.S. Customs and Border Protection to retain and spend without further appropriation for the purpose of processing Form I-94; and (2) any amounts not deposited into the Land Border Inspection Fee Account pursuant to paragraph (1)(A) shall be deposited in the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100009. ANNUAL ASYLUM FEE. (a) Fee Authorized.--In addition to any other fee authorized by law, for each calendar year that an alien's application for asylum remains pending, the Secretary of Homeland Security or the Attorney General, as applicable, shall require the payment of a fee, equal to the amount specified in subsection (b), by such alien. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $100; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar. (c) Disposition of Annual Asylum Fees.--All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100010. FEE RELATING TO RENEWAL AND EXTENSION OF EMPLOYMENT AUTHORIZATION FOR PAROLEES. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), for any parolee who seeks a renewal or extension of employment authorization based on a grant of parole. The employment authorization for each alien paroled into the United States, or any renewal or extension of such parole, shall be valid for a period of 1 year or for the duration of the alien's parole, whichever is shorter. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $275; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Disposition of Fees Relating to Renewal and Extension of Employment Authorization for Parolees.--During each fiscal year-- (1) 25 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Citizenship and Immigration Services; (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. [[Page S3868]] SEC. 100011. FEE RELATING TO RENEWAL OR EXTENSION OF EMPLOYMENT AUTHORIZATION FOR ASYLUM APPLICANTS. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee of not less than $275 by any alien who has applied for asylum for each renewal or extension of employment authorization based on such application. (b) Termination.--Each initial employment authorization, or renewal or extension of such authorization, shall terminate-- (1) immediately following the denial of an asylum application by an asylum officer, unless the case is referred to an immigration judge; (2) on the date that is 30 days after the date on which an immigration judge denies an asylum application, unless the alien makes a timely appeal to the Board of Immigration Appeals; or (3) immediately following the denial by the Board of Immigration Appeals of an appeal of a denial of an asylum application. (c) Disposition of Fees Relating to Renewal and Extension of Employment Authorization for Asylum Applicants.--During each fiscal year-- (1) 25 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Citizenship and Immigration Services; (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100012. FEE RELATING TO RENEWAL AND EXTENSION OF EMPLOYMENT AUTHORIZATION FOR ALIENS GRANTED TEMPORARY PROTECTED STATUS. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any alien at the time such alien seeks a renewal or extension of employment authorization based on a grant of temporary protected status. Any employment authorization for an alien granted temporary protected status, or any renewal or extension of such employment authorization, shall be valid for a period of 1 year or for the duration of the designation of temporary protected status, whichever is shorter. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $275; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Disposition of Fees Relating to Renewal and Extension of Employment Authorization for Temporary Protected Status Applicants.--During each fiscal year-- (1) 25 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Citizenship and Immigration Services; (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100013. FEES RELATING TO APPLICATIONS FOR ADJUSTMENT OF STATUS. (a) Fee for Filing an Application to Adjust Status to That of a Lawful Permanent Resident.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien who files an application with an immigration court to adjust the alien's status to that of a lawful permanent resident, or whose application to adjust his or her status to that of a lawful permanent resident is adjudicated in immigration court. Such fee shall be paid at the time such application is filed or before such application is adjudicated by the immigration court. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,500; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of adjustment of status application fees.-- During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (b) Fee for Filing Application for Waiver of Grounds of Inadmissibility.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for a waiver of a ground of inadmissibility, or before such application is adjudicated by the immigration court. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,050; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of waiver of ground of admissibility application fees.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (c) Fee for Filing an Application for Temporary Protected Status.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for temporary protected status, or before such application is adjudicated by the immigration court. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $500; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of temporary protected status application fees.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- [[Page S3869]] (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) Fee for Filing an Appeal of a Decision of an Immigration Judge.-- (1) In general.--Except as provided in paragraph (3), the Attorney General shall require, in addition to any other fees authorized by law, the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an appeal from a decision of an immigration judge. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $900; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Exception.--The fee required under paragraph (1) shall not apply to the appeal of a bond decision. (4) Disposition of fees for appealing immigration judge decisions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (e) Fee for Filing an Appeal From a Decision of an Officer of the Department of Homeland Security.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an appeal of a decision of an officer of the Department of Homeland Security. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $900; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for appealing department of homeland security officer decisions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (f) Fee for Filing an Appeal From a Decision of an Adjudicating Official in a Practitioner Disciplinary Case.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any practitioner at the time such practitioner files an appeal from a decision of an adjudicating official in a practitioner disciplinary case. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,325; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for appealing department of homeland security officer decisions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (g) Fee for Filing a Motion to Reopen or a Motion to Reconsider.-- (1) In general.--Except as provided in paragraph (3), in addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files a motion to reopen or motion to reconsider a decision of an immigration judge or the Board of Immigration Appeals. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $900; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Exceptions.--The fee required under paragraph (1) shall not apply to-- (A) a motion to reopen a removal order entered in absentia if such motion is filed in accordance with section 240(b)(5)(C)(ii) (8 U.S.C. 1229a(b)(5)(C)(ii)); or (B) a motion to reopen a deportation order entered in absentia if such motion is filed in accordance with section 242B(c)(3)(B) prior to April 1, 1997. (4) Disposition of fees for filing certain motions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (h) Fee for Filing Application for Suspension of Deportation.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for suspension of deportation. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $600; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for filing application for suspension of deportation.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- [[Page S3870]] (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (i) Fee for Filing Application for Cancellation of Removal for Certain Permanent Residents.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court an application for cancellation of removal for an alien who is a lawful permanent resident. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $600; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for filing application for cancellation of removal.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (j) Fee for Filing an Application for Cancellation of Removal and Adjustment of Status for Certain Nonpermanent Residents.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien who is not a lawful permanent resident at the time such alien files an application with an immigration court for cancellation of removal and adjustment of status for any alien. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,500; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for filing application for cancellation of removal.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (k) Limitation on Use of Funds.--No fees collected pursuant to this section may be expended by the Executive Office for Immigration Review for the Legal Orientation Program, or for any successor program. SEC. 100014. ELECTRONIC SYSTEM FOR TRAVEL AUTHORIZATION FEE. Section 217(h)(3)(B) (8 U.S.C. 1187(h)(3)(B)) is amended-- (1) in clause (i)-- (A) in subclause (I), by striking ``and'' at the end; (B) in subclause (II)-- (i) by inserting ``of not less than $10'' after ``an amount''; and (ii) by striking the period at the end and inserting ``; and''; and (C) by adding at the end the following: ``(III) not less than $13 per travel authorization.''; (2) in clause (iii), by striking ``October 31, 2028'' and inserting ``October 31, 2034''; and (3) by adding at the end the following: ``(iv) Subsequent adjustment.--During fiscal year 2026 and each subsequent fiscal year, the amount specified in clause (i)(II) for a fiscal year shall be equal to the sum of-- ``(I) the amount of the fee required under this subparagraph during the most recently concluded fiscal year; and ``(II) the product of the amount referred to in subclause (I) multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.''. SEC. 100015. ELECTRONIC VISA UPDATE SYSTEM FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, in the amount specified in subsection (b), by any alien subject to the Electronic Visa Update System at the time of such alien's enrollment in such system. (b) Amount Specified.-- (1) In general.--For fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $30; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026 and each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of-- (A) the amount of the fee required under this subsection during the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $0.25. (c) Disposition of Electronic Visa Update System Fees.-- (1) In general.--Section 286 (8 U.S.C. 1356) is amended by adding at the end the following: ``(w) CBP Electronic Visa Update System Account.-- ``(1) Establishment.--There is established in the general fund of the Treasury a separate account, which shall be known as the `CBP Electronic Visa Update System Account' (referred to in this subsection as the `Account'). ``(2) Deposits.--There shall be deposited into the Account an amount equal to the difference between-- ``(A) all of the fees received pursuant to section 100015 of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress); and ``(B) an amount equal to $5 multiplied by the number of payments collected pursuant to such section. ``(3) Appropriation.--Amounts deposited in the Account-- ``(A) are hereby appropriated to make payments and offset program costs in accordance with section 100015 of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress), without further appropriation; and ``(B) shall remain available until expended for any U.S. Customs and Border Protection costs associated with administering the CBP Electronic Visa Update System.''. (2) Remaining fees.--Of the fees collected pursuant to this section, an amount equal to $5 multiplied by the number of payments collected pursuant to this section shall be deposited to the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100016. FEE FOR ALIENS ORDERED REMOVED IN ABSENTIA. (a) In General.--As partial reimbursement for the cost of arresting an alien described in this section, the Secretary of Homeland Security, except as provided in subsection (c), shall require the payment of a fee, equal to the amount specified in subsection (b) on any alien who-- (1) is ordered removed in absentia pursuant to section 240(b)(5) (8 U.S.C. 1229a(b)(5)); and (2) is subsequently arrested by U.S. Immigration and Customs Enforcement. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $5,000; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by [[Page S3871]] which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Exception.--The fee described in this section shall not apply to any alien who was ordered removed in absentia if such order was rescinded pursuant to section 240(b)(5)(C) (8 U.S.C. 1229a(b)(5)(C)). (d) Disposition of Removal in Absentia Fees.--During each fiscal year-- (1) 50 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Immigration and Customs Enforcement; (B) shall be deposited into the Detention and Removal Office Fee Account; and (C) may be retained and expended by U.S. Immigration and Customs Enforcement without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Immigration and Customs Enforcement pursuant to paragraph (1) shall be deposited into the general fund of the Treasury. (e) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100017. INADMISSIBLE ALIEN APPREHENSION FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any inadmissible alien at the time such alien is apprehended between ports of entry. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $5,000; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Disposition of Inadmissible Alien Apprehension Fees.-- During each fiscal year-- (1) 50 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Immigration and Customs Enforcement; (B) shall be deposited into the Detention and Removal Office Fee Account; and (C) may be retained and expended by U.S. Immigration and Customs Enforcement without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Immigration and Customs Enforcement pursuant to paragraph (1) shall be deposited into the general fund of the Treasury. (d) Disposition of Inadmissible Alien Apprehension Fees.-- All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. SEC. 100018. AMENDMENT TO AUTHORITY TO APPLY FOR ASYLUM. Section 208(d)(3) (8 U.S.C. 1158(d)(3)) is amended-- (1) in the first sentence, by striking ``may'' and inserting ``shall''; (2) by striking ``Such fees shall not exceed'' and all that follows and inserting the following: ``Nothing in this paragraph may be construed to limit the authority of the Attorney General to set additional adjudication and naturalization fees in accordance with section 286(m).''. PART II--IMMIGRATION AND LAW ENFORCEMENT FUNDING SEC. 100051. APPROPRIATION FOR THE DEPARTMENT OF HOMELAND SECURITY. In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $2,055,000,000, to remain available through September 30, 2029, for the following purposes: (1) Immigration and enforcement activities.--Hiring and training of additional U.S. Customs and Border Protection agents, and the necessary support staff, to carry out immigration enforcement activities. (2) Departures and removals.--Funding for transportation costs and related costs associated with the departure or removal of aliens. (3) Personnel assignments.--Funding for the assignment of Department of Homeland Security employees and State officers to carry out immigration enforcement activities pursuant to sections 103(a) and 287(g) of the Immigration and Nationality Act (8 U.S.C. 1103(a) and 1357(g)). (4) Background checks.--Hiring additional staff and investing the necessary resources to enhance screening and vetting of all aliens seeking entry into United States, consistent with section 212 of such Act (8 U.S.C. 1182), or intending to remain in the United States, consistent with section 237 of such Act (8 U.S.C. 1227). (5) Protecting alien children from exploitation.--In instances of aliens and alien children entering the United States without a valid visa, funding is provided for the purposes of-- (A) collecting fingerprints, in accordance with section 262 of the Immigration and Nationality Act (8 U.S.C. 1302) and subsections (a)(3) and (b) of section 235 of such Act (8 U.S.C. 1225); and (B) collecting DNA, in accordance with sections 235(d) and 287(b) of the Immigration and Nationality Act (8 U.S.C. 1225(d) and 1357(b)). (6) Transporting and return of aliens from contiguous territory.--Transporting and facilitating the return, pursuant to section 235(b)(2)(C) of the Immigration and Nationality Act (8 U.S.C. 1225(b)(2)(C)), of aliens arriving from contiguous territory. (7) State and local participation.--Funding for State and local participation in homeland security efforts for purposes of-- (A) ending the presence of criminal gangs and criminal organizations throughout the United States; (B) addressing crime and public safety threats; (C) combating human smuggling and trafficking networks throughout the United States; (D) supporting immigration enforcement activities; and (E) providing reimbursement for State and local participation in such efforts. (8) Removal of specified unaccompanied alien children.-- (A) In general.--Funding removal operations for specified unaccompanied alien children. (B) Use of funds.--Amounts made available under this paragraph shall only be used for permitting a specified unaccompanied alien child to withdraw the application for admission of the child pursuant to section 235(a)(4) of the Immigration and Nationality Act (8 U.S.C. 1225(a)(4)). (C) Definitions.--In this paragraph: (i) Specified unaccompanied alien child.--The term ``specified unaccompanied alien child'' means an unaccompanied alien child (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))) who the Secretary of Homeland Security determines on a case-by-case basis-- (I) has been found by an immigration officer at a land border or port of entry of the United States and is inadmissible under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.); (II) has not been a victim of severe forms of trafficking in persons, and there is no credible evidence that such child is at risk of being trafficked upon return of the child to the child's country of nationality or country of last habitual residence; and (III) does not have a fear of returning to the child's country of nationality or country of last habitual residence owing to a credible fear of persecution. (ii) Severe forms of trafficking in persons.--The term ``severe forms of trafficking in persons'' has the meaning given such term in section 103 of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7102). (9) Expedited removal of criminal aliens.--Funding for the expedited removal of criminal aliens, in accordance with the provisions of section 235(b)(1) of the Immigration and Nationality Act (8 U.S.C. 1225(b)(1)). (10) Removal of certain criminal aliens without further hearings.--Funding for the removal of certain criminal aliens without further hearings, in accordance with the provisions of section 235(c) of the Immigration and Nationality Act (8 U.S.C. 1225(c)). (11) Criminal and gang checks for unaccompanied alien children.--Funding for criminal and gang checks of unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))) who are 12 years of age and older, including the examination of such unaccompanied alien children for gang-related tattoos and other gang-related markings. (12) Information technology.--Information technology investments to support immigration purposes, including improvements to fee and revenue collections. SEC. 100052. APPROPRIATION FOR U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT. In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $29,850,000,000, to remain available through September 30, 2029, for the following purposes: (1) Hiring and training.--Hiring and training additional U.S. Immigration and Customs Enforcement personnel, including officers, agents, investigators, and support staff, to carry out immigration enforcement activities and prioritizing and streamlining the hiring of retired U.S. Immigration and Customs Enforcement personnel. (2) Performance, retention, and signing bonuses.-- (A) In general.--Providing performance, retention, and signing bonuses for qualified U.S. Immigration and Customs Enforcement personnel in accordance with this subsection. [[Page S3872]] (B) Performance bonuses.--The Director of U.S. Immigration and Customs Enforcement, at the Director's discretion, may provide performance bonuses to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who demonstrates exemplary service. (C) Retention bonuses.--The Director of U.S. Immigration and Customs Enforcement may provide retention bonuses to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who commits to 2 years of additional service with U.S. Immigration and Customs Enforcement to carry out immigration enforcement activities. (D) Signing bonuses.--The Director of U.S. Immigration and Customs Enforcement may provide a signing bonus to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who-- (i) is hired on or after the date of the enactment of this Act; and (ii) who commits to 5 years of service with U.S. Immigration and Customs Enforcement to carry out immigration enforcement activities. (E) Service agreement.--In providing a retention or signing bonus under this paragraph, the Director of U.S. Immigration and Customs Enforcement shall provide each qualifying individual with a written service agreement that includes-- (i) the commencement and termination dates of the required service period (or provisions for the determination of such dates); (ii) the amount of the bonus; and (iii) any other term or condition under which the bonus is payable, subject to the requirements of this paragraph, including-- (I) the conditions under which the agreement may be terminated before the agreed-upon service period has been completed; and (II) the effect of a termination described in subclause (I). (3) Recruitment, hiring, and onboarding.--Facilitating the recruitment, hiring, and onboarding of additional U.S. Immigration and Customs Enforcement personnel to carry out immigration enforcement activities, including by-- (A) investing in information technology, recruitment, and marketing; and (B) hiring staff necessary to carry out information technology, recruitment, and marketing activities. (4) Transportation.--Funding for transportation costs and related costs associated with alien departure or removal operations. (5) Information technology.--Funding for information technology investments to support enforcement and removal operations, including improvements to fee collections. (6) Facility upgrades.--Funding for facility upgrades to support enforcement and removal operations. (7) Fleet modernization.--Funding for fleet modernization to support enforcement and removal operations. (8) Family unity.--Promoting family unity by-- (A) maintaining the care and custody, during the period in which a charge described in clause (i) is pending, in accordance with applicable laws, of an alien who-- (i) is charged only with a misdemeanor offense under section 275(a) of the Immigration and Nationality Act (8 U.S.C. 1325(a)); and (ii) entered the United States with the alien's child who has not attained 18 years of age; and (B) detaining such an alien with the alien's child. (9) 287(g) agreements.--Expanding, facilitating, and implementing agreements under section 287(g) of the Immigration and Nationality Act (8 U.S.C. 1357(g)). (10) Victims of immigration crime engagement office.-- Hiring and training additional staff to carry out the mission of the Victims of Immigration Crime Engagement Office and for providing nonfinancial assistance to the victims of crimes perpetrated by aliens who are present in the United States without authorization. (11) Office of the principal legal advisor.--Hiring additional attorneys and the necessary support staff within the Office of the Principal Legal Advisor to represent the Department of Homeland Security in immigration enforcement and removal proceedings. SEC. 100053. APPROPRIATION FOR FEDERAL LAW ENFORCEMENT TRAINING CENTERS. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for the Federal Law Enforcement Training Centers for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $750,000,000, to remain available until September 30, 2029, for the purposes described in subsections (b) and (c). (b) Training.--Not less than $285,000,000 of the amounts available under subsection (a) shall be for supporting the training of newly hired Federal law enforcement personnel employed by the Department of Homeland Security and State and local law enforcement agencies operating in support of the Department of Homeland Security. (c) Facilities.--Not more than $465,000,000 of the amounts available under subsection (a) shall be for procurement, construction and maintenance of, improvements to, training equipment for, and related expenses, of facilities of the Federal Law Enforcement Training Centers. SEC. 100054. APPROPRIATION FOR THE DEPARTMENT OF JUSTICE. In addition to amounts otherwise available, there is appropriated to the Attorney General for the Department of Justice for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $3,330,000,000, to remain available through September 30, 2029, for the following purposes: (1) Executive office for immigration review.-- (A) In general.--Hiring immigration judges and necessary support staff for the Executive Office for Immigration Review to address the backlog of petitions, cases, and removals. (B) Staffing level.--Effective November 1, 2028, the Executive Office for Immigration Review shall be comprised of not more than 800 immigration judges, along with the necessary support staff. (2) Combating drug trafficking.--Funding efforts to combat drug trafficking (including trafficking of fentanyl and its precursor chemicals) and illegal drug use. (3) Prosecution of immigration matters.--Funding efforts to investigate and prosecute immigration matters, gang-related crimes involving aliens, child trafficking and smuggling involving aliens within the United States, unlawful voting by aliens, violations of the Alien Registration Act, 1940 (54 Stat., chapter 439), and violations of or fraud relating to title IV of the Personal Responsibility and Work Opportunity Act of 1996 (Public Law 104-193; 110 Stat. 2277), including hiring additional Department of Justice personnel to investigate and prosecute such matters. (4) Nonparty or other injunctive relief.--Hiring additional attorneys and necessary support staff for the purpose of continuing implementation of assignments by the Attorney General pursuant to sections 516, 517, and 518 of title 28, United States Code, to conduct litigation and attend to the interests of the United States in suits pending in a court of the United States or in a court of a State in suits seeking nonparty or other injunctive relief against the Federal Governmeogies.nt. (5) Edward byrne memorial justice assistance grant program and office of community oriented policing.-- (A) In general.--Increasing funding for the Edward Byrne Memorial Justice Assistance Grant Program and the Office of Community Oriented Policing for initiatives associated with-- (i) investigating and prosecuting violent crime; (ii) criminal enforcement initiatives; and (iii) immigration enforcement and removal efforts. (B) Limitations.--No funds made available under this subsection shall be made available to community violence intervention and prevention initiative programs. (C) Eligibility.--To be eligible to receive funds made available under this subsection, a State or local government shall be in full compliance, as determined by the Attorney General, with section 642 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1373). (6) Fiscally responsible lawsuit settlements.--Hiring additional attorneys and necessary support staff for the purpose of maximizing lawsuit settlements that require the payment of fines and penalties to the Treasury of the United States in lieu of providing for the payment to any person or entity other than the United States, other than a payment that provides restitution or otherwise directly remedies actual harm directly and proximately caused by the party making the payment, or constitutes payment for services rendered in connection with the case. (7) Compensation for incarceration of criminal aliens.-- (A) In general.--Providing compensation to a State or political subdivision of a State for the incarceration of criminal aliens. (B) Use of funds.--The amounts made available under subparagraph (A) shall only be used to compensate a State or political subdivision of a State, as appropriate, with respect to the incarceration of an alien who-- (i) has been convicted of a felony or 2 or more misdemeanors; and (ii)(I) entered the United States without inspection or at any time or place other than as designated by the Secretary of Homeland Security; (II) was the subject of removal proceedings at the time the alien was taken into custody by the State or a political subdivision of the State; or (III) was admitted as a nonimmigrant and, at the time the alien was taken into custody by the State or a political subdivision of the State, has failed to maintain the nonimmigrant status in which the alien was admitted, or to which it was changed, or to comply with the conditions of any such status. (C) Limitation.--Amounts made available under this subsection shall be distributed to more than 1 State. The amounts made available under subparagraph (A) may not be used to compensate any State or political subdivision of a State if the State or political subdivision of the State prohibits or in any way restricts a Federal, State, or local government entity, official, or other personnel from doing any of the following: (i) Complying with the immigration laws (as defined in section 101(a)(17) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(17))). (ii) Assisting or cooperating with Federal law enforcement entities, officials, or other personnel regarding the enforcement of the immigration laws. [[Page S3873]] (iii) Undertaking any of the following law enforcement activities as such activities relate to information regarding the citizenship or immigration status, lawful or unlawful, the inadmissibility or deportability, and the custody status, of any individual: (I) Making inquiries to any individual to obtain such information regarding such individual or any other individuals. (II) Notifying the Federal Government regarding the presence of individuals who are encountered by law enforcement officials or other personnel of a State or political subdivision of a State. (III) Complying with requests for such information from Federal law enforcement entities, officials, or other personnel. SEC. 100055. BRIDGING IMMIGRATION-RELATED DEFICITS EXPERIENCED NATIONWIDE REIMBURSEMENT FUND. (a) Establishment.--There is established within the Department of Justice a fund, to be known as the ``Bridging Immigration-related Deficits Experienced Nationwide (BIDEN) Reimbursement Fund'' (referred to in this section as the ``Fund''). (b) Use of Funds.--The Attorney General shall use amounts appropriated or otherwise made available for the Fund for grants to eligible States, State agencies, and units of local government, pursuant to their existing statutory authorities, for any of the following purposes: (1) Locating and apprehending aliens who have committed a crime under Federal, State, or local law, in addition to being unlawfully present in the United States. (2) Collection and analysis of law enforcement investigative information within the United States to counter gang or other criminal activity. (3) Investigating and prosecuting-- (A) crimes committed by aliens within the United States; and (B) drug and human trafficking crimes committed within the United States. (4) Court operations related to the prosecution of-- (A) crimes committed by aliens; and (B) drug and human trafficking crimes. (5) Temporary criminal detention of aliens. (6) Transporting aliens described in paragraph (1) within the United States to locations related to the apprehension, detention, and prosecution of such aliens. (7) Vehicle maintenance, logistics, transportation, and other support provided to law enforcement agencies by a State agency to enhance the ability to locate and apprehend aliens who have committed crimes under Federal, State, or local law, in addition to being unlawfully present in the United States. (c) Appropriation.--In addition to amounts otherwise available for the purposes described in subsection (b), there is appropriated to the Attorney General for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, not to exceed $3,500,000,000, to remain available until September 30, 2028, for the Fund for qualified and documented expenses that achieve any such purpose. (d) Grant Eligibility of Completed, Ongoing, or New Activities.--The Attorney General may provide grants under this section to State agencies and units of local government for expenditures made by State agencies or units of local government for completed, ongoing, or new activities determined to be eligible for such grant funding that occurred on or after January 20, 2021. Amounts made available under this section shall be distributed to more than 1 State. SEC. 100056. APPROPRIATION FOR THE BUREAU OF PRISONS. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Prisons for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $5,000,000,000, to remain available through September 30, 2029, for the purposes described in subsections (b) and (c). (b) Salaries and Benefits.--Not less than $3,000,000,000 of the amounts made available under subsection (a) shall be for hiring and training of new employees, including correctional officers, medical professionals, and facilities and maintenance employees, the necessary support staff, and for additional funding for salaries and benefits for the current workforce of the Bureau of Prisons. (c) Facilities.--Not more than $2,000,000,000 of the amounts made available under subsection (a) shall be for addressing maintenance and repairs to facilities maintained or operated by the Bureau of Prisons. SEC. 100057. APPROPRIATION FOR THE UNITED STATES SECRET SERVICE. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Director of the United States Secret Service (referred to in this section as the ``Director'') for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,170,000,000, to remain available through September 30, 2029, for the purposes described in subsection (b). (b) Use of Funds.--Amounts made available under subsection (a) may only be used for-- (1) additional United States Secret Service resources, including personnel, training facilities, programming, and technology; and (2) performance, retention, and signing bonuses for qualified United States Secret Service personnel in accordance with subsection (c). (c) Performance, Retention, and Signing Bonuses.-- (1) Performance bonuses.--The Director, at the Director's discretion, may provide performance bonuses to any Secret Service agent, officer, or analyst who demonstrates exemplary service. (2) Retention bonuses.--The Director may provide retention bonuses to any Secret Service agent, officer, or analyst who commits to 2 years of additional service with the Secret Service. (3) Signing bonuses.--The Director may provide a signing bonus to any Secret Service agent, officer, or analyst who-- (A) is hired on or after the date of the enactment of this Act; and (B) commits to 5 years of service with the United States Secret Service. (4) Service agreement.--In providing a retention or signing bonus under this subsection, the Director shall provide each qualifying individual with a written service agreement that includes-- (A) the commencement and termination dates of the required service period (or provisions for the determination of such dates); (B) the amount of the bonus; and (C) any other term or condition under which the bonus is payable, subject to the requirements under this subsection, including-- (i) the conditions under which the agreement may be terminated before the agreed-upon service period has been completed; and (ii) the effect of a termination described in clause (i). Subtitle B--Judiciary Matters SEC. 100101. APPROPRIATION TO THE ADMINISTRATIVE OFFICE OF THE UNITED STATES COURTS. In addition to amounts otherwise available, there is appropriated to the Director of the Administrative Office of the United States Courts, out of amounts in the Treasury not otherwise appropriated, $1,250,000 for each of fiscal years 2025 through 2028, for the purpose of continuing analyses and reporting pursuant to section 604(a)(2) of title 28, United States Code, to examine the state of the dockets of the courts and to prepare and transmit statistical data and reports as to the business of the courts, including an assessment of the number, frequency, and related metrics of judicial orders issuing non-party relief against the Federal Government and their aggregate cost impact on the taxpayers of the United States, as determined by each court when imposing securities for the issuance of preliminary injunctions or temporary restraining orders against the Federal Government pursuant to rule 65(c) of the Federal Rules of Civil Procedure. SEC. 100102. APPROPRIATION TO THE FEDERAL JUDICIAL CENTER. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Director of the Federal Judicial Center, out of amounts in the Treasury not otherwise appropriated, $1,000,000 for each of fiscal years 2025 through 2028, for the purpose described in subsection (b). (b) Use of Funds.--The Federal Judicial Center shall use the amounts appropriated under subsection (a) for the continued implementation of programs pursuant to section 620(b)(3) of title 28, United States Code, to stimulate, create, develop, and conduct programs of continuing education and training for personnel of the judicial branch, including training on the absence of constitutional and statutory authority supporting legal claims that seek non-party relief against the Federal Government, and strategic approaches for mitigating the aggregate cost impact of such legal claims on the taxpayers of the United States. Subtitle C--Radiation Exposure Compensation Matters SEC. 100201. EXTENSION OF FUND. Section 3(d) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) by striking the first sentence and inserting ``The Fund shall terminate on December 31, 2028.''; and (2) by striking ``the end of that 2-year period'' and inserting ``such date''. SEC. 100202. CLAIMS RELATING TO ATMOSPHERIC TESTING. (a) Leukemia Claims Relating to Trinity Test in New Mexico and Tests at the Nevada Site.--Section 4(a)(1)(A) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in clause (i)-- (A) in subclause (I), by striking ``October 31, 1958'' and inserting ``November 6, 1962''; (B) in subclause (II)-- (i) by striking ``in the affected area'' and inserting ``in an affected area''; and (ii) by striking ``or'' after the semicolon; (C) by redesignating subclause (III) as subclause (IV); and (D) by inserting after subclause (II) the following: ``(III) was physically present in an affected area for a period of at least 1 year during the period beginning on September 24, 1944, and ending on November 6, 1962; or''; and (2) in clause (ii)(I), by striking ``physical presence described in subclause (I) or (II) of clause (i) or onsite participation described in clause (i)(III)'' and inserting ``physical presence described in subclause (I), (II), or (III) of clause (i) or onsite participation described in clause (i)(IV)''. (b) Amounts for Claims Related to Leukemia.--Section 4(a)(1) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in subparagraph (A), by striking ``an amount'' and inserting ``the amount''; [[Page S3874]] (2) by striking subparagraph (B) and inserting the following: ``(B) Amount.--If the conditions described in subparagraph (C) are met, an individual who is described in subparagraph (A) shall receive $100,000.''; and (3) in subparagraph (C), by adding at the end the following: ``(iv) No payment under this paragraph previously has been made to the individual, on behalf of the individual, or to a survivor of the individual.''. (c) Conditions for Claims Related to Leukemia.--Section 4(a)(1)(C) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) by striking clause (i); and (2) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively. (d) Specified Diseases Claims Relating to Trinity Test in New Mexico and Tests at the Nevada Site.--Section 4(a)(2) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in subparagraph (A)-- (A) by striking ``in the affected area'' and inserting ``in an affected area''; (B) by striking ``2 years'' and inserting ``1 year''; and (C) by striking ``October 31, 1958,'' and inserting ``November 6, 1962;''; (2) in subparagraph (B)-- (A) by striking ``in the affected area'' and inserting ``in an affected area''; and (B) by striking ``, or'' at the end and inserting a semicolon; (3) by redesignating subparagraph (C) as subparagraph (D); and (4) by inserting after subparagraph (B) the following: ``(C) was physically present in an affected area for a period of at least 1 year during the period beginning on September 24, 1944, and ending on November 6, 1962; or''. (e) Amounts for Claims Related to Specified Diseases.-- Section 4(a)(2) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended in the matter following subparagraph (D) (as redesignated by subsection (d) of this section)-- (1) by striking ``$50,000 (in the case of an individual described in subparagraph (A) or (B)) or $75,000 (in the case of an individual described in subparagraph (C)),'' and inserting ``$100,000''; (2) in clause (i), by striking ``, and'' and inserting a semicolon; (3) in clause (ii), by striking the period at the end and inserting ``; and''; and (4) by adding at the end the following: ``(iii) no payment under this paragraph previously has been made to the individual, on behalf of the individual, or to a survivor of the individual.''. (f) Downwind States.--Section 4(b)(1) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended to read as follows: ``(1) `affected area' means-- ``(A) except as provided under subparagraph (B)-- ``(i) the States of New Mexico, Utah, and Idaho; ``(ii) in the State of Nevada, the counties of White Pine, Nye, Lander, Lincoln, Eureka, and that portion of Clark County that consists of townships 13 through 16 at ranges 63 through 71; and ``(iii) in the State of Arizona, the counties of Coconino, Yavapai, Navajo, Apache, and Gila, and Mohave; and ``(B) with respect to a claim by an individual under subsection (a)(1)(A)(i)(III) or subsection (a)(2)(C), only New Mexico; and''. SEC. 100203. CLAIMS RELATING TO URANIUM MINING. (a) Employees of Mines and Mills.--Section 5(a)(1)(A)(i) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended to read as follows: ``(i)(I) was employed in a uranium mine or uranium mill (including any individual who was employed in the transport of uranium ore or vanadium-uranium ore from such mine or mill) located in Colorado, New Mexico, Arizona, Wyoming, South Dakota, Washington, Utah, Idaho, North Dakota, Oregon, or Texas at any time during the period beginning on January 1, 1942, and ending on December 31, 1990; or ``(II) was employed as a core driller in a State referred to in subclause (I) during the period described in such subclause; and''. (b) Miners.--Section 5(a)(1)(A)(ii)(I) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended by inserting ``or renal cancer or any other chronic renal disease, including nephritis and kidney tubal tissue injury'' after ``nonmalignant respiratory disease''. (c) Millers, Core Drillers, and Ore Transporters.--Section 5(a)(1)(A)(ii)(II) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) by inserting ``, core driller,'' after ``was a miller''; (2) by inserting ``, or was involved in remediation efforts at such a uranium mine or uranium mill,'' after ``ore transporter''; (3) by inserting ``(I)'' after ``clause (i)''; and (4) by striking ``or renal cancers'' and all that follows and inserting ``or renal cancer or any other chronic renal disease, including nephritis and kidney tubal tissue injury; or''. (d) Combined Work Histories.--Section 5(a)(1)(A)(ii) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note), as amended by subsection (c), is further amended-- (1) in subclause (I), by striking ``or'' at the end; and (2) by adding at the end the following: ``(III)(aa) does not meet the conditions of subclause (I) or (II); ``(bb) worked, during the period described in clause (i)(I), in 2 or more of the following positions: miner, miller, core driller, and ore transporter; ``(cc) meets the requirements under paragraph (4) or (5); and ``(dd) submits written medical documentation that the individual developed lung cancer, a nonmalignant respiratory disease, renal cancer, or any other chronic renal disease, including nephritis and kidney tubal tissue injury after exposure to radiation through work in one or more of the positions referred to in item (bb);''. (e) Special Rules Relating to Combined Work Histories.-- Section 5(a) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended by adding at the end the following: ``(4) Special rule relating to combined work histories for individuals with at least one year of experience.--An individual meets the requirements under this paragraph if the individual worked in one or more of the positions referred to in paragraph (1)(A)(ii)(III)(bb) for a period of at least one year during the period described in paragraph (1)(A)(i)(I). ``(5) Special rule relating to combined work histories for miners.--An individual meets the requirements of this paragraph if the individual, during the period described in paragraph (1)(A)(i)(I), worked as a miner and was exposed to such number of working level months that the Attorney General determines, when combined with the exposure of such individual to radiation through work as a miller, core driller, or ore transporter during the period described in paragraph (1)(A)(i)(I), results in such individual being exposed to a total level of radiation that is greater or equal to the level of exposure of an individual described in paragraph (4).''. (f) Definition of Core Driller.--Section 5(b) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in paragraph (7), by striking ``and'' at the end; (2) in paragraph (8), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following: ``(9) the term `core driller' means any individual employed to engage in the act or process of obtaining cylindrical rock samples of uranium or vanadium by means of a borehole drilling machine for the purpose of mining uranium or vanadium.''. SEC. 100204. CLAIMS RELATING TO MANHATTAN PROJECT WASTE.-- The Radiation Exposure Compensation Act (Public Law 101- 426; 42 U.S.C. 2210 note) is amended by inserting after section 5 the following: ``SEC. 5A. CLAIMS RELATING TO MANHATTAN PROJECT WASTE. ``(a) In General.--A claimant shall receive compensation for a claim made under this Act, as described in subsection (b) or (c), if-- ``(1) a claim for compensation is filed with the Attorney General-- ``(A) by an individual described in paragraph (2); or ``(B) on behalf of that individual by an authorized agent of that individual, if the individual is deceased or incapacitated, such as-- ``(i) an executor of estate of that individual; or ``(ii) a legal guardian or conservator of that individual; ``(2) that individual, or if applicable, an authorized agent of that individual, demonstrates that such individual-- ``(A) was physically present in an affected area for a period of at least 2 years after January 1, 1949; and ``(B) contracted a specified disease after such period of physical presence; ``(3) the Attorney General certifies that the identity of that individual, and if applicable, the authorized agent of that individual, is not fraudulent or otherwise misrepresented; and ``(4) the Attorney General determines that the claimant has satisfied the applicable requirements of this Act. ``(b) Losses Available to Living Affected Individuals.-- ``(1) In general.--In the event of a claim qualifying for compensation under subsection (a) that is submitted to the Attorney General to be eligible for compensation under this section at a time when the individual described in subsection (a)(2) is living, the amount of compensation under this section shall be in an amount that is the greater of $50,000 or the total amount of compensation for which the individual is eligible under paragraph (2). ``(2) Losses due to medical expenses.--A claimant described in paragraph (1) shall be eligible to receive, upon submission of contemporaneous written medical records, reports, or billing statements created by or at the direction of a licensed medical professional who provided contemporaneous medical care to the claimant, additional compensation in the amount of all documented out-of-pocket medical expenses incurred as a result of the specified disease suffered by that claimant, such as any medical expenses not covered, paid for, or reimbursed through-- [[Page S3875]] ``(A) any public or private health insurance; ``(B) any employee health insurance; ``(C) any workers' compensation program; or ``(D) any other public, private, or employee health program or benefit. ``(3) Limitation.--No claimant is eligible to receive compensation under this subsection with respect to medical expenses unless the submissions described in paragraph (2) with respect to such expenses are submitted on or before December 31, 2028. ``(c) Payments to Beneficiaries of Deceased Individuals.-- In the event that an individual described in subsection (a)(2) who qualifies for compensation under subsection (a) is deceased at the time of submission of the claim-- ``(1) a surviving spouse may, upon submission of a claim and records sufficient to satisfy the requirements of subsection (a) with respect to the deceased individual, receive compensation in the amount of $25,000; or ``(2) in the event that there is no surviving spouse, the surviving children, minor or otherwise, of the deceased individual may, upon submission of a claim and records sufficient to satisfy the requirements of subsection (a) with respect to the deceased individual, receive compensation in the total amount of $25,000, paid in equal shares to each surviving child. ``(d) Affected Areas.--For purposes of this section, the term `affected area' means-- ``(1) in the State of Missouri, the ZIP Codes of 63031, 63033, 63034, 63042, 63045, 63074, 63114, 63135, 63138, 63044, 63121, 63140, 63145, 63147, 63102, 63304, 63134, 63043, 63341, 63368, and 63367; ``(2) in the State of Tennessee, the ZIP Codes of 37716, 37840, 37719, 37748, 37763, 37828, 37769, 37710, 37845, 37887, 37829, 37854, 37830, and 37831; ``(3) in the State of Alaska, the ZIP Codes of 99546 and 99547; and ``(4) in the State of Kentucky, the ZIP Codes of 42001, 42003, and 42086. ``(e) Specified Disease.--For purposes of this section, the term `specified disease' means any of the following: ``(1) Any leukemia, provided that the initial exposure occurred after 20 years of age and the onset of the disease was at least 2 years after first exposure. ``(2) Any of the following diseases, provided that the onset was at least 2 years after the initial exposure: ``(A) Multiple myeloma. ``(B) Lymphoma, other than Hodgkin's disease. ``(C) Primary cancer of the-- ``(i) thyroid; ``(ii) male or female breast; ``(iii) esophagus; ``(iv) stomach; ``(v) pharynx; ``(vi) small intestine; ``(vii) pancreas; ``(viii) bile ducts; ``(ix) gall bladder; ``(x) salivary gland; ``(xi) urinary bladder; ``(xii) brain; ``(xiii) colon; ``(xiv) ovary; ``(xv) bone; ``(xvi) renal; ``(xvii) liver, except if cirrhosis or hepatitis B is indicated; or ``(xviii) lung. ``(f) Physical Presence.-- ``(1) In general.--For purposes of this section, the Attorney General may not determine that a claimant has satisfied the requirements under subsection (a) unless demonstrated by submission of-- ``(A) contemporaneous written residential documentation or at least 1 additional employer-issued or government-issued document or record that the claimant, for at least 2 years after January 1, 1949, was physically present in an affected area; or ``(B) other documentation determined by the Attorney General to demonstrate that the claimant, for at least 2 years after January 1, 1949, was physically present in an affected area. ``(2) Types of physical presence.--For purposes of determining physical presence under this section, a claimant shall be considered to have been physically present in an affected area if-- ``(A) the claimant's primary residence was in the affected area; ``(B) the claimant's place of employment was in the affected area; or ``(C) the claimant attended school in the affected area. ``(g) Disease Contraction in Affected Areas.--For purposes of this section, the Attorney General may not determine that a claimant has satisfied the requirements under subsection (a) unless the claimant submits-- ``(1) written medical records or reports created by or at the direction of a licensed medical professional, created contemporaneously with the provision of medical care to the claimant, that the claimant, after a period of physical presence in an affected area, contracted a specified disease; or ``(2) other documentation determined by the Attorney General to demonstrate that the claimant contracted a specified disease after a period of physical presence in an affected area.''. SEC. 100205. LIMITATIONS ON CLAIMS. Section 8(a) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended by striking ``2 years after the date of enactment of the RECA Extension Act of 2022'' and inserting ``December 31, 2027''. ______ SA 2369. Mr. PAUL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike all after the first word and insert the following: SHORT TITLE. This Act may be cited as the ``One Big Beautiful Bill Act''. SEC. 2. TABLE OF CONTENTS. The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY Subtitle A--Nutrition Sec. 10101. Re-evaluation of thrifty food plan. Sec. 10102. Modifications to SNAP work requirements for able-bodied adults. Sec. 10103. Availability of standard utility allowances based on receipt of energy assistance. Sec. 10104. Restrictions on internet expenses. Sec. 10105. Matching funds requirements. Sec. 10106. Administrative cost sharing. Sec. 10107. National education and obesity prevention grant program. Sec. 10108. Alien SNAP eligibility. Subtitle B--Forestry Sec. 10201. Rescission of amounts for forestry. Subtitle C--Commodities Sec. 10301. Effective reference price; reference price. Sec. 10302. Base acres. Sec. 10303. Producer election. Sec. 10304. Price loss coverage. Sec. 10305. Agriculture risk coverage. Sec. 10306. Equitable treatment of certain entities. Sec. 10307. Payment limitations. Sec. 10308. Adjusted gross income limitation. Sec. 10309. Marketing loans. Sec. 10310. Repayment of marketing loans. Sec. 10311. Economic adjustment assistance for textile mills. Sec. 10312. Sugar program updates. Sec. 10313. Dairy policy updates. Sec. 10314. Implementation. Subtitle D--Disaster Assistance Programs Sec. 10401. Supplemental agricultural disaster assistance. Subtitle E--Crop Insurance Sec. 10501. Beginning farmer and rancher benefit. Sec. 10502. Area-based crop insurance coverage and affordability. Sec. 10503. Administrative and operating expense adjustments. Sec. 10504. Premium support. Sec. 10505. Program compliance and integrity. Sec. 10506. Reviews, compliance, and integrity. Sec. 10507. Poultry insurance pilot program. Subtitle F--Additional Investments in Rural America Sec. 10601. Conservation. Sec. 10602. Supplemental agricultural trade promotion program. Sec. 10603. Nutrition. Sec. 10604. Research. Sec. 10605. Energy. Sec. 10606. Horticulture. Sec. 10607. Miscellaneous. TITLE II--COMMITTEE ON ARMED SERVICES Sec. 20001. Enhancement of Department of Defense resources for improving the quality of life for military personnel. Sec. 20002. Enhancement of Department of Defense resources for shipbuilding. Sec. 20003. Enhancement of Department of Defense resources for integrated air and missile defense. Sec. 20004. Enhancement of Department of Defense resources for munitions and defense supply chain resiliency. Sec. 20005. Enhancement of Department of Defense resources for scaling low-cost weapons into production. Sec. 20006. Enhancement of Department of Defense resources for improving the efficiency and cybersecurity of the Department of Defense. Sec. 20007. Enhancement of Department of Defense resources for air superiority. Sec. 20008. Enhancement of resources for nuclear forces. Sec. 20009. Enhancement of Department of Defense resources to improve capabilities of United States Indo-Pacific Command. Sec. 20010. Enhancement of Department of Defense resources for improving the readiness of the Department of Defense. Sec. 20011. Improving Department of Defense border support and counter- drug missions. [[Page S3876]] Sec. 20012. Department of Defense oversight. Sec. 20013. Military construction projects authorized. Sec. 20014. Multi-year operational plan. TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS Sec. 30001. Funding cap for the Bureau of Consumer Financial Protection. Sec. 30002. Rescission of funds for Green and Resilient Retrofit Program for Multifamily Housing. Sec. 30003. Securities and Exchange Commission Reserve Fund. Sec. 30004. Appropriations for Defense Production Act. TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION Sec. 40001. Coast Guard mission readiness. Sec. 40002. Spectrum auctions. Sec. 40003. Air traffic control improvements. Sec. 40004. Space launch and reentry licensing and permitting user fees. Sec. 40005. Mars missions, Artemis missions, and Moon to Mars program. Sec. 40006. Corporate average fuel economy civil penalties. Sec. 40007. Payments for lease of Metropolitan Washington Airports. Sec. 40008. Rescission of certain amounts for the National Oceanic and Atmospheric Administration. Sec. 40009. Reduction in annual transfers to Travel Promotion Fund. Sec. 40010. Treatment of unobligated funds for alternative fuel and low-emission aviation technology. Sec. 40011. Rescission of amounts appropriated to Public Wireless Supply Chain Innovation Fund. Sec. 40012. Support for artificial intelligence under the Broadband Equity, Access, and Deployment Program. TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES Subtitle A--Oil and Gas Leasing Sec. 50101. Onshore oil and gas leasing. Sec. 50102. Offshore oil and gas leasing. Sec. 50103. Royalties on extracted methane. Sec. 50104. Alaska oil and gas leasing. Sec. 50105. National Petroleum Reserve-Alaska. Subtitle B--Mining Sec. 50201. Coal leasing. Sec. 50202. Coal royalty. Sec. 50203. Leases for known recoverable coal resources. Sec. 50204. Authorization to mine Federal coal. Subtitle C--Lands Sec. 50301. Mandatory disposal of Bureau of Land management land for housing. Sec. 50302. Timber sales and long-term contracting for the Forest Service and the Bureau of Land Management. Sec. 50303. Renewable energy fees on Federal land. Sec. 50304. Renewable energy revenue sharing. Sec. 50305. Rescission of National Park Service and Bureau of Land Management funds. Sec. 50306. Celebrating America's 250th anniversary. Subtitle D--Energy Sec. 50401. Strategic Petroleum Reserve. Sec. 50402. Repeals; rescissions. Sec. 50403. Energy dominance financing. Sec. 50404. Transformational artificial intelligence models. Subtitle E--Water Sec. 50501. Water conveyance and surface water storage enhancement. TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS Sec. 60001. Rescission of funding for clean heavy-duty vehicles. Sec. 60002. Repeal of Greenhouse Gas Reduction Fund. Sec. 60003. Rescission of funding for diesel emissions reductions. Sec. 60004. Rescission of funding to address air pollution. Sec. 60005. Rescission of funding to address air pollution at schools. Sec. 60006. Rescission of funding for the low emissions electricity program. Sec. 60007. Rescission of funding for section 211(o) of the Clean Air Act. Sec. 60008. Rescission of funding for implementation of the American Innovation and Manufacturing Act. Sec. 60009. Rescission of funding for enforcement technology and public information. Sec. 60010. Rescission of funding for greenhouse gas corporate reporting. Sec. 60011. Rescission of funding for environmental product declaration assistance. Sec. 60012. Rescission of funding for methane emissions and waste reduction incentive program for petroleum and natural gas systems. Sec. 60013. Rescission of funding for greenhouse gas air pollution plans and implementation grants. Sec. 60014. Rescission of funding for environmental protection agency efficient, accurate, and timely reviews. Sec. 60015. Rescission of funding for low-embodied carbon labeling for construction materials. Sec. 60016. Rescission of funding for environmental and climate justice block grants. Sec. 60017. Rescission of funding for ESA recovery plans. Sec. 60018. Rescission of funding for environmental and climate data collection. Sec. 60019. Rescission of neighborhood access and equity grant program. Sec. 60020. Rescission of funding for Federal building assistance. Sec. 60021. Rescission of funding for low-carbon materials for Federal buildings. Sec. 60022. Rescission of funding for GSA emerging and sustainable technologies. Sec. 60023. Rescission of environmental review implementation funds. Sec. 60024. Rescission of low-carbon transportation materials grants. Sec. 60025. John F. Kennedy Center for the Performing Arts. Sec. 60026. Project sponsor opt-in fees for environmental reviews. TITLE VII--FINANCE Subtitle A--Tax Sec. 70001. References to the Internal Revenue Code of 1986, etc. Chapter 1--Providing Permanent Tax Relief for Middle-class Families and Workers Sec. 70101. Extension and enhancement of reduced rates. Sec. 70102. Extension and enhancement of increased standard deduction. Sec. 70103. Termination of deduction for personal exemptions other than temporary senior deduction. Sec. 70104. Extension and enhancement of increased child tax credit. Sec. 70105. Extension and enhancement of deduction for qualified business income. Sec. 70106. Extension and enhancement of increased estate and gift tax exemption amounts. Sec. 70107. Extension of increased alternative minimum tax exemption amounts and modification of phaseout thresholds. Sec. 70108. Extension and modification of limitation on deduction for qualified residence interest. Sec. 70109. Extension and modification of limitation on casualty loss deduction. Sec. 70110. Termination of miscellaneous itemized deductions other than educator expenses. Sec. 70111. Limitation on tax benefit of itemized deductions. Sec. 70112. Extension and modification of qualified transportation fringe benefits. Sec. 70113. Extension and modification of limitation on deduction and exclusion for moving expenses. Sec. 70114. Extension and modification of limitation on wagering losses. Sec. 70115. Extension and enhancement of increased limitation on contributions to ABLE accounts. Sec. 70116. Extension and enhancement of savers credit allowed for ABLE contributions. Sec. 70117. Extension of rollovers from qualified tuition programs to ABLE accounts permitted. Sec. 70118. Extension of treatment of certain individuals performing services in the Sinai Peninsula and enhancement to include additional areas. Sec. 70119. Extension and modification of exclusion from gross income of student loans discharged on account of death or disability. Sec. 70120. Limitation on individual deductions for certain state and local taxes, etc. Chapter 2--Delivering on Presidential Priorities to Provide New Middle- class Tax Relief Sec. 70201. No tax on tips. Sec. 70202. No tax on overtime. Sec. 70203. No tax on car loan interest. Sec. 70204. Trump accounts and contribution pilot program. Chapter 3--Establishing Certainty and Competitiveness for American Job Creators subchapter a--permanent u.s. business tax reform and boosting domestic investment Sec. 70301. Full expensing for certain business property. Sec. 70302. Full expensing of domestic research and experimental expenditures. Sec. 70303. Modification of limitation on business interest. Sec. 70304. Extension and enhancement of paid family and medical leave credit. Sec. 70305. Exceptions from limitations on deduction for business meals. Sec. 70306. Increased dollar limitations for expensing of certain depreciable business assets. Sec. 70307. Special depreciation allowance for qualified production property. Sec. 70308. Enhancement of advanced manufacturing investment credit. Sec. 70309. Spaceports are treated like airports under exempt facility bond rules. subchapter b--permanent america-first international tax reforms PART I--Foreign Tax Credit Sec. 70311. Modifications related to foreign tax credit limitation. [[Page S3877]] Sec. 70312. Modifications to determination of deemed paid credit for taxes properly attributable to tested income. Sec. 70313. Sourcing certain income from the sale of inventory produced in the United States. PART II--Foreign-derived Deduction Eligible Income and Net CFC Tested Income Sec. 70321. Modification of deduction for foreign-derived deduction eligible income and net CFC tested income. Sec. 70322. Determination of deduction eligible income. Sec. 70323. Rules related to deemed intangible income. PART III--Base Erosion Minimum Tax Sec. 70331. Extension and modification of base erosion minimum tax amount. PART IV--Business Interest Limitation Sec. 70341. Coordination of business interest limitation with interest capitalization provisions. Sec. 70342. Definition of adjusted taxable income for business interest limitation. PART V--Other International Tax Reforms Sec. 70351. Permanent extension of look-thru rule for related controlled foreign corporations. Sec. 70352. Repeal of election for 1-month deferral in determination of taxable year of specified foreign corporations. Sec. 70353. Restoration of limitation on downward attribution of stock ownership in applying constructive ownership rules. Sec. 70354. Modifications to pro rata share rules. Chapter 4--Investing in American Families, Communities, and Small Businesses subchapter a--permanent investments in families and children Sec. 70401. Enhancement of employer-provided child care credit. Sec. 70402. Enhancement of adoption credit. Sec. 70403. Recognizing Indian tribal governments for purposes of determining whether a child has special needs for purposes of the adoption credit. Sec. 70404. Enhancement of the dependent care assistance program. Sec. 70405. Enhancement of child and dependent care tax credit. subchapter b--permanent investments in students and reforms to tax- exempt institutions Sec. 70411. Tax credit for contributions of individuals to scholarship granting organizations. Sec. 70412. Exclusion for employer payments of student loans. Sec. 70413. Additional expenses treated as qualified higher education expenses for purposes of 529 accounts. Sec. 70414. Certain postsecondary credentialing expenses treated as qualified higher education expenses for purposes of 529 accounts. Sec. 70415. Modification of excise tax on investment income of certain private colleges and universities. Sec. 70416. Expanding application of tax on excess compensation within tax-exempt organizations. subchapter c--permanent investments in community development Sec. 70421. Permanent renewal and enhancement of opportunity zones. Sec. 70422. Permanent enhancement of low-income housing tax credit. Sec. 70423. Permanent extension of new markets tax credit. Sec. 70424. Permanent and expanded reinstatement of partial deduction for charitable contributions of individuals who do not elect to itemize. Sec. 70425. 0.5 percent floor on deduction of contributions made by individuals. Sec. 70426. 1-percent floor on deduction of charitable contributions made by corporations. Sec. 70427. Permanent increase in limitation on cover over of tax on distilled spirits. Sec. 70428. Nonprofit community development activities in remote native villages. Sec. 70429. Adjustment of charitable deduction for certain expenses incurred in support of Native Alaskan subsistence whaling. Sec. 70430. Exception to percentage of completion method of accounting for certain residential construction contracts. subchapter d--permanent investments in small business and rural america Sec. 70431. Expansion of qualified small business stock gain exclusion. Sec. 70432. Repeal of revision to de minimis rules for third party network transactions. Sec. 70433. Increase in threshold for requiring information reporting with respect to certain payees. Sec. 70434. Treatment of certain qualified sound recording productions. Sec. 70435. Exclusion of interest on loans secured by rural or agricultural real property. Sec. 70436. Reduction of transfer and manufacturing taxes for certain devices. Sec. 70437. Treatment of capital gains from the sale of certain farmland property. Sec. 70438. Extension of rules for treatment of certain disaster- related personal casualty losses. Chapter 5--Ending Green New Deal Spending, Promoting America-first Energy, and Other Reforms subchapter a--termination of green new deal subsidies Sec. 70501. Termination of previously-owned clean vehicle credit. Sec. 70502. Termination of clean vehicle credit. Sec. 70503. Termination of qualified commercial clean vehicles credit. Sec. 70504. Termination of alternative fuel vehicle refueling property credit. Sec. 70505. Termination of energy efficient home improvement credit. Sec. 70506. Termination of residential clean energy credit. Sec. 70507. Termination of energy efficient commercial buildings deduction. Sec. 70508. Termination of new energy efficient home credit. Sec. 70509. Termination of cost recovery for energy property and qualified clean energy facilities, property, and technology. Sec. 70510. Modifications of zero-emission nuclear power production credit. Sec. 70511. Termination of clean hydrogen production credit. Sec. 70512. Termination and restrictions on clean electricity production credit. Sec. 70513. Termination and restrictions on clean electricity investment credit. Sec. 70514. Phase-out and restrictions on advanced manufacturing production credit. Sec. 70515. Restriction on the extension of advanced energy project credit program. subchapter b--enhancement of america-first energy policy Sec. 70521. Extension and modification of clean fuel production credit. Sec. 70522. Restrictions on carbon oxide sequestration credit. Sec. 70523. Intangible drilling and development costs taken into account for purposes of computing adjusted financial statement income. Sec. 70524. Income from hydrogen storage, carbon capture, advanced nuclear, hydropower, and geothermal energy added to qualifying income of certain publicly traded partnerships. Sec. 70525. Allow for payments to certain individuals who dye fuel. subchapter c--other reforms Sec. 70531. Modifications to de minimis entry privilege for commercial shipments. Chapter 6--Enhancing Deduction and Income Tax Credit Guardrails, and Other Reforms Sec. 70601. Modification and extension of limitation on excess business losses of noncorporate taxpayers. Sec. 70602. Treatment of payments from partnerships to partners for property or services. Sec. 70603. Excessive employee remuneration from controlled group members and allocation of deduction. Sec. 70604. Third party litigation funding reform. Sec. 70605. Excise tax on certain remittance transfers. Sec. 70606. Enforcement provisions with respect to COVID-related employee retention credits. Sec. 70607. Social security number requirement for American Opportunity and Lifetime Learning credits. Sec. 70608. Task force on the replacement of Direct File. Subtitle B--Health Chapter 1--Medicaid subchapter a--reducing fraud and improving enrollment processes Sec. 71101. Moratorium on implementation of rule relating to eligibility and enrollment in Medicare Savings Programs. Sec. 71102. Moratorium on implementation of rule relating to eligibility and enrollment for Medicaid, CHIP, and the Basic Health Program. Sec. 71103. Reducing duplicate enrollment under the Medicaid and CHIP programs. Sec. 71104. Ensuring deceased individuals do not remain enrolled. Sec. 71105. Ensuring deceased providers do not remain enrolled. Sec. 71106. Payment reduction related to certain erroneous excess payments under Medicaid. Sec. 71107. Eligibility redeterminations. Sec. 71108. Revising home equity limit for determining eligibility for long-term care services under the Medicaid program. [[Page S3878]] Sec. 71109. Alien Medicaid eligibility. Sec. 71110. Expansion FMAP for certain States providing payments for health care furnished to certain individuals. Sec. 71111. Expansion FMAP for emergency Medicaid. subchapter b--preventing wasteful spending Sec. 71112. Moratorium on implementation of rule relating to staffing standards for long-term care facilities under the Medicare and Medicaid programs. Sec. 71113. Reducing State Medicaid costs. Sec. 71114. Prohibiting Federal Medicaid and CHIP funding for certain items and services. Sec. 71115. Federal payments to prohibited entities. subchapter c--stopping abusive financing practices Sec. 71116. Sunsetting increased FMAP incentive. Sec. 71117. Provider taxes. Sec. 71118. State directed payments. Sec. 71119. Requirements regarding waiver of uniform tax requirement for Medicaid provider tax. Sec. 71120. Requiring budget neutrality for Medicaid demonstration projects under section 1115. subchapter d--increasing personal accountability Sec. 71121. Requirement for States to establish Medicaid community engagement requirements for certain individuals. Sec. 71122. Modifying cost sharing requirements for certain expansion individuals under the Medicaid program. subchapter e--expanding access to care Sec. 71123. Making certain adjustments to coverage of home or community-based services under Medicaid. Sec. 71124. Determination of FMAP for high-poverty States. Chapter 2--Medicare subchapter a--strengthening eligibility requirements Sec. 71201. Limiting Medicare coverage of certain individuals. subchapter b--improving services for seniors Sec. 71202. Temporary payment increase under the medicare physician fee schedule to account for exceptional circumstances. Sec. 71203. Expanding and clarifying the exclusion for orphan drugs under the Drug Price Negotiation Program. Sec. 71204. Application of cost-of-living adjustment to non-labor related portion for hospital outpatient department services furnished in Alaska and Hawaii. Chapter 3--Health Tax subchapter a--improving eligibility criteria Sec. 71301. Permitting premium tax credit only for certain individuals. Sec. 71302. Disallowing premium tax credit during periods of medicaid ineligibility due to alien status. subchapter b--preventing waste, fraud, and abuse Sec. 71303. Requiring verification of eligibility for premium tax credit. Sec. 71304. Disallowing premium tax credit in case of certain coverage enrolled in during special enrollment period. Sec. 71305. Eliminating limitation on recapture of advance payment of premium tax credit. subchapter c--enhancing choice for patients Sec. 71306. Permanent extension of safe harbor for absence of deductible for telehealth services. Sec. 71307. Allowance of bronze and catastrophic plans in connection with health savings accounts. Sec. 71308. Treatment of direct primary care service arrangements. Chapter 4--Protecting Rural Hospitals and Providers Sec. 71401. Rural Health Transformation Program. TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS Subtitle A--Exemption of Certain Assets Sec. 80001. Exemption of certain assets. Subtitle B--Loan Limits Sec. 81001. Establishment of loan limits for graduate and professional students and parent borrowers; termination of graduate and professional PLUS loans. Subtitle C--Loan Repayment Sec. 82001. Loan repayment. Sec. 82002. Deferment; forbearance. Sec. 82003. Loan rehabilitation. Sec. 82004. Public service loan forgiveness. Sec. 82005. Student loan servicing. Subtitle D--Pell Grants Sec. 83001. Eligibility. Sec. 83002. Workforce Pell Grants. Sec. 83003. Pell shortfall. Sec. 83004. Federal Pell Grant exclusion relating to other grant aid. Subtitle E--Accountability Sec. 84001. Ineligibility based on low earning outcomes. Subtitle F--Regulatory Relief Sec. 85001. Delay of rule relating to borrower defense to repayment. Sec. 85002. Delay of rule relating to closed school discharges. Subtitle G--Limitation on Authority Sec. 86001. Limitation on proposing or issuing regulations and executive actions. Subtitle H--Garden of Heroes Sec. 87001. Garden of Heroes. Subtitle I--Office of Refugee Resettlement Sec. 88001. Potential sponsor vetting for unaccompanied alien children appropriation. TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS Subtitle A--Homeland Security Provisions Sec. 90001. Border infrastructure and wall system. Sec. 90002. U.S. Customs and Border Protection personnel, fleet vehicles, and facilities. Sec. 90003. Detention capacity. Sec. 90004. Border security, technology, and screening. Sec. 90005. State and local assistance. Sec. 90006. Presidential residence protection. Sec. 90007. Department of Homeland Security appropriations for border support. Subtitle B--Governmental Affairs Provisions Sec. 90101. FEHB improvements. Sec. 90102. Pandemic Response Accountability Committee. Sec. 90103. Appropriation for the Office of Management and Budget. TITLE X--COMMITTEE ON THE JUDICIARY Subtitle A--Immigration and Law Enforcement Matters PART I--Immigration Fees Sec. 100001. Applicability of the immigration laws. Sec. 100002. Asylum fee. Sec. 100003. Employment authorization document fees. Sec. 100004. Immigration parole fee. Sec. 100005. Special immigrant juvenile fee. Sec. 100006. Temporary protected status fee. Sec. 100007. Visa integrity fee. Sec. 100008. Form I-94 fee. Sec. 100009. Annual asylum fee. Sec. 100010. Fee relating to renewal and extension of employment authorization for parolees. Sec. 100011. Fee relating to renewal or extension of employment authorization for asylum applicants. Sec. 100012. Fee relating to renewal and extension of employment authorization for aliens granted temporary protected status. Sec. 100013. Fees relating to applications for adjustment of status. Sec. 100014. Electronic System for Travel Authorization fee. Sec. 100015. Electronic Visa Update System fee. Sec. 100016. Fee for aliens ordered removed in absentia. Sec. 100017. Inadmissible alien apprehension fee. Sec. 100018. Amendment to authority to apply for asylum. PART II--Immigration and Law Enforcement Funding Sec. 100051. Appropriation for the Department of Homeland Security. Sec. 100052. Appropriation for U.S. Immigration and Customs Enforcement. Sec. 100053. Appropriation for Federal Law Enforcement Training Centers. Sec. 100054. Appropriation for the Department of Justice. Sec. 100055. Bridging Immigration-related Deficits Experienced Nationwide Reimbursement Fund. Sec. 100056. Appropriation for the Bureau of Prisons. Sec. 100057. Appropriation for the United States Secret Service. Subtitle B--Judiciary Matters Sec. 100101. Appropriation to the Administrative Office of the United States Courts. Sec. 100102. Appropriation to the Federal Judicial Center. Subtitle C--Radiation Exposure Compensation Matters Sec. 100201. Extension of fund. Sec. 100202. Claims relating to atmospheric testing. Sec. 100203. Claims relating to uranium mining. Sec. 100205. Limitations on claims. TITLE I--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY Subtitle A--Nutrition SEC. 10101. RE-EVALUATION OF THRIFTY FOOD PLAN. (a) In General.--Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) is amended by striking subsection (u) and inserting the following: ``(u) Thrifty Food Plan.-- ``(1) In general.--The term `thrifty food plan' means the diet required to feed a family of 4 persons consisting of a man and a woman ages 20 through 50, a child ages 6 through 8, and a child ages 9 through 11 using the items and quantities of food described in the report of the Department of [[Page S3879]] Agriculture entitled `Thrifty Food Plan, 2021', and each successor report updated pursuant to this subsection, subject to the conditions that-- ``(A) the relevant market baskets of the thrifty food plan shall only be changed pursuant to paragraph (4); ``(B) the cost of the thrifty food plan shall be the basis for uniform allotments for all households, regardless of the actual composition of the household; and ``(C) the cost of the thrifty food plan may only be adjusted in accordance with this subsection. ``(2) Household adjustments.--The Secretary shall make household adjustments using the following ratios of household size as a percentage of the maximum 4-person allotment: ``(A) For a 1-person household, 30 percent. ``(B) For a 2-person household, 55 percent. ``(C) For a 3-person household, 79 percent. ``(D) For a 4-person household, 100 percent. ``(E) For a 5-person household, 119 percent. ``(F) For a 6-person household, 143 percent. ``(G) For a 7-person household, 158 percent. ``(H) For an 8-person household, 180 percent. ``(I) For a household of 9 persons or more, an additional 22 percent per person, which additional percentage shall not total more than 200 percent. ``(3) Allowable cost adjustments.--The Secretary shall-- ``(A) make cost adjustments in the thrifty food plan for Hawaii and the urban and rural parts of Alaska to reflect the cost of food in Hawaii and urban and rural Alaska; ``(B) make cost adjustments in the separate thrifty food plans for Guam and the Virgin Islands of the United States to reflect the cost of food in those States, but not to exceed the cost of food in the 50 States and the District of Columbia; and ``(C) on October 1, 2025, and on each October 1 thereafter, adjust the cost of the thrifty food plan to reflect changes in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor, for the most recent 12-month period ending in June. ``(4) Re-evaluation of market baskets.-- ``(A) Re-evaluation.--Not earlier than October 1, 2027, the Secretary may re-evaluate the market baskets of the thrifty food plan based on current food prices, food composition data, consumption patterns, and dietary guidance. ``(B) Cost neutrality.--The Secretary shall not increase the cost of the thrifty food plan based on a re-evaluation under this paragraph.''. (b) Conforming Amendments.-- (1) Section 16(c)(1)(A)(ii)(II) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(A)(ii)(II)) is amended by striking ``section 3(u)(4)'' and inserting ``section 3(u)(3)''. (2) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ``section 3(u)(4)'' and inserting ``section 3(u)(3)''. (3) Section 27(a)(2) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)(2))) is amended by striking ``section 3(u)(4)'' each place it appears and inserting ``section 3(u)(3)''. SEC. 10102. MODIFICATIONS TO SNAP WORK REQUIREMENTS FOR ABLE- BODIED ADULTS. (a) Exceptions.--Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended by striking paragraph (3) and inserting the following: ``(3) Exceptions.--Paragraph (2) shall not apply to an individual if the individual is-- ``(A) under 18, or over 65, years of age; ``(B) medically certified as physically or mentally unfit for employment; ``(C) a parent or other member of a household with responsibility for a dependent child under 14 years of age; ``(D) otherwise exempt under subsection (d)(2); ``(E) a pregnant woman; ``(F) an Indian or an Urban Indian (as such terms are defined in paragraphs (13) and (28) of section 4 of the Indian Health Care Improvement Act); or ``(G) a California Indian described in section 809(a) of the Indian Health Care Improvement Act.''. (b) Standardizing Enforcement.--Section 6(o)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)(4)) is amended-- (1) in subparagraph (A), by striking clause (ii) and inserting the following: ``(ii) is in a noncontiguous State and has an unemployment rate that is at or above 1.5 times the national unemployment rate8 percent.''; and (2) by adding at the end the following: ``(C) Definition of noncontiguous state.-- ``(i) In general.--In this paragraph, the term `noncontiguous State' means a State that is not 1 of the contiguous 48 States or the District of Columbia. ``(ii) Exclusions.--The term `noncontiguous State' does not include Gaum or the Virgin Islands of the United States.''. (c) Waiver for Noncontiguous States.--Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended-- (1) by redesignating paragraph (7) as paragraph (8); and (2) by inserting after paragraph (6) the following: ``(7) Exemption for noncontiguous states.-- ``(A) Definition of noncontiguous state.-- ``(i) In general.--In this paragraph, the term `noncontiguous State' means a State that is not 1 of the contiguous 48 States or the District of Columbia. ``(ii) Exclusions.--In this paragraph, the term `noncontiguous State' does not include Guam or the Virgin Islands of the United States. ``(B) Exemption.--Subject to subparagraph (D), the Secretary may exempt individuals in a noncontiguous State from compliance with the requirements of paragraph (2) if-- ``(i) the State agency submits to the Secretary a request for that exemption, made in such form and at such time as the Secretary may require, and including the information described in subparagraph (C); and ``(ii) the Secretary determines that based on that request, the State agency is demonstrating a good faith effort to comply with the requirements of paragraph (2). ``(C) Good faith effort determination.--In determining whether a State agency is demonstrating a good faith effort for purposes of subparagraph (B)(ii), the Secretary shall consider-- ``(i) any actions taken by the State agency toward compliance with the requirements of paragraph (2); ``(ii) any significant barriers to or challenges in meeting those requirements, including barriers or challenges relating to funding, design, development, procurement, or installation of necessary systems or resources; ``(iii) the detailed plan and timeline of the State agency for achieving full compliance with those requirements, including any milestones (as defined by the Secretary); and ``(iv) any other criteria determined appropriate by the Secretary. ``(D) Duration of exemption.-- ``(i) In general.--An exemption granted under subparagraph (B) shall expire not later than December 31, 2028, and may not be renewed beyond that date. ``(ii) Early termination.--The Secretary may terminate an exemption granted under subparagraph (B) prior to the expiration date of that exemption if the Secretary determines that the State agency-- ``(I) has failed to comply with the reporting requirements described in subparagraph (E); or ``(II) based on the information provided pursuant to subparagraph (E), failed to make continued good faith efforts toward compliance with the requirements of this subsection. ``(E) Reporting requirements.--A State agency granted an exemption under subparagraph (B) shall submit to the Secretary-- ``(i) quarterly progress reports on the status of the State agency in achieving the milestones toward full compliance described in subparagraph (C)(iii); and ``(ii) information on specific risks or newly identified barriers or challenges to full compliance, including the plan of the State agency to mitigate those risks, barriers, or challenges.''. SEC. 10103. AVAILABILITY OF STANDARD UTILITY ALLOWANCES BASED ON RECEIPT OF ENERGY ASSISTANCE. (a) Standard Utility Allowance.--Section 5(e)(6)(C)(iv)(I) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)(iv)(I)) is amended by inserting ``with an elderly or disabled member'' after ``households''. (b) Third-party Energy Assistance Payments.--Section 5(k)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(k)(4)) is amended-- (1) in subparagraph (A), by inserting ``without an elderly or disabled member'' before ``shall be''; and (2) in subparagraph (B), by inserting ``with an elderly or disabled member'' before ``under a State law''. SEC. 10104. RESTRICTIONS ON INTERNET EXPENSES. Section 5(e)(6) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)) is amended by adding at the end the following: ``(E) Restrictions on internet expenses.--Any service fee associated with internet connection shall not be used in computing the excess shelter expense deduction under this paragraph.''. SEC. 10105. MATCHING FUNDS REQUIREMENTS. (a) In General.--Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended-- (1) by striking ``(a) Subject to'' and inserting the following: ``(a) Program.-- ``(1) Establishment.--Subject to''; and (2) by adding at the end the following: ``(2) State quality control incentive.-- ``(A) Definition of payment error rate.--In this paragraph, the term `payment error rate' has the meaning given the term in section 16(c)(2). ``(B) State cost share.-- ``(i) In general.--Beginning in fiscal year 2028, if the payment error rate of a State as determined under clause (ii) is-- ``(I) less than 6 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 100 percent, and the State share shall be 0 percent; ``(II) equal to or greater than 6 percent but less than 8 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 95 percent, and the State share shall be 5 percent; ``(III) equal to or greater than 8 percent but less than 10 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall [[Page S3880]] be 90 percent, and the State share shall be 10 percent; and ``(IV) equal to or greater than 10 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 85 percent, and the State share shall be 15 percent. ``(ii) Elections.-- ``(I) Fiscal year 2028.--For fiscal year 2028, to calculate the applicable State share under clause (i), a State may elect to use the payment error rate of the State from fiscal year 2025 or 2026. ``(II) Fiscal year 2029 and thereafter.--For fiscal year 2029 and each fiscal year thereafter, to calculate the applicable State share under clause (i), the Secretary shall use the payment error rate of the State for the third fiscal year preceding the fiscal year for which the State share is being calculated. ``(3) Maximum federal payment.--The Secretary may not pay towards the cost of an allotment described in paragraph (1) an amount that is greater than the applicable Federal share under paragraph (2). ``(4) Waiver authority.-- ``(A) In general.--The Secretary may waive the requirement under paragraph (2) for a noncontiguous State (excluding Guam and the Virgin Islands of the United States) for a period of not more than 2 years if-- ``(i) the Secretary determines that the waiver is necessary; and ``(ii) the noncontiguous State is-- ``(I) actively implementing a corrective action plan (as described in section 275.17 of title 7, Code of Federal Regulations (or a successor regulation)); and ``(II) carrying out any other activities determined necessary by the Secretary to reduce its payment error rate (as defined in paragraph (2)). ``(B) Termination of authority.--The waiver authority under subparagraph (A) shall terminate on the date that is 4 years after the date of enactment of this paragraph.''. (b) Limitation on Authority.--Section 13(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in the first sentence by inserting ``or the payment or disposition of a State share under section 4(a)(2)'' after ``16(c)(1)(D)(i)(II)''. SEC. 10106. ADMINISTRATIVE COST SHARING. Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the matter preceding paragraph (1) by striking ``agency an amount equal to 50 per centum'' and inserting ``agency, through fiscal year 2026, 50 percent, and for fiscal year 2027 and each fiscal year thereafter, 25 percent,''. SEC. 10107. NATIONAL EDUCATION AND OBESITY PREVENTION GRANT PROGRAM. Section 28(d)(1)(F) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a(d)(1)(F)) is amended by striking ``for fiscal year 2016 and each subsequent fiscal year'' and inserting ``for each of fiscal years 2016 through 2025''. SEC. 10108. ALIEN SNAP ELIGIBILITY. Section 6(f) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(f)) is amended to read as follows: ``(f) No individual who is a member of a household otherwise eligible to participate in the supplemental nutrition assistance program under this section shall be eligible to participate in the supplemental nutrition assistance program as a member of that or any other household unless he or she is-- ``(1) a resident of the United States; and ``(2) either-- ``(A) a citizen or national of the United States; ``(B) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act, excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country; ``(C) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(D) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The income (less, at State option, a pro rata share) and financial resources of the individual rendered ineligible to participate in the supplemental nutrition assistance program under this subsection shall be considered in determining the eligibility and the value of the allotment of the household of which such individual is a member.''. Subtitle B--Forestry SEC. 10201. RESCISSION OF AMOUNTS FOR FORESTRY. The unobligated balances of amounts appropriated by the following provisions of Public Law 117-169 are rescinded: (1) Paragraphs (3) and (4) of section 23001(a) (136 Stat. 2023). (2) Paragraphs (1) through (4) of section 23002(a) (136 Stat. 2025). (3) Section 23003(a)(2) (136 Stat. 2026). (4) Section 23005 (136 Stat. 2027). Subtitle C--Commodities SEC. 10301. EFFECTIVE REFERENCE PRICE; REFERENCE PRICE. (a) Effective Reference Price.--Section 1111(8)(B)(ii) of the Agricultural Act of 2014 (7 U.S.C. 9011(8)(B)(ii)) is amended by striking ``85'' and inserting ``beginning with the crop year 2025, 88''. (b) Reference Price.--Section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011) is amended by striking paragraph (19) and inserting the following: ``(19) Reference price.-- ``(A) In general.--Effective beginning with the 2025 crop year, subject to subparagraphs (B) and (C), the term `reference price', with respect to a covered commodity for a crop year, means the following: ``(i) For wheat, $6.35 per bushel. ``(ii) For corn, $4.10 per bushel. ``(iii) For grain sorghum, $4.40 per bushel. ``(iv) For barley, $5.45 per bushel. ``(v) For oats, $2.65 per bushel. ``(vi) For long grain rice, $16.90 per hundredweight. ``(vii) For medium grain rice, $16.90 per hundredweight. ``(viii) For soybeans, $10.00 per bushel. ``(ix) For other oilseeds, $23.75 per hundredweight. ``(x) For peanuts, $630.00 per ton. ``(xi) For dry peas, $13.10 per hundredweight. ``(xii) For lentils, $23.75 per hundredweight. ``(xiii) For small chickpeas, $22.65 per hundredweight. ``(xiv) For large chickpeas, $25.65 per hundredweight. ``(xv) For seed cotton, $0.42 per pound. ``(B) Effectiveness.--Effective beginning with the 2031 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price in the previous crop year multiplied by 1.005. ``(C) Limitation.--In no case shall a reference price for a covered commodity exceed 113 percent of the reference price for such covered commodity listed in subparagraph (A).''. SEC. 10302. BASE ACRES. Section 1112 of the Agricultural Act of 2014 (7 U.S.C. 9012) is amended-- (1) in subsection (d)(3)(A), by striking ``2023'' and inserting ``2031''; and (2) by adding at the end the following: ``(e) Additional Base Acres.-- ``(1) In general.--As soon as practicable after the date of enactment of this subsection, and notwithstanding subsection (a), the Secretary shall provide notice to owners of eligible farms pursuant to paragraph (3) and allocate to those eligible farms a total of not more than an additional 30,000,000 base acres in the manner provided in this subsection. An owner of a farm that is eligible to receive an allocation of base acres may elect to not receive that allocation by notifying the Secretary not later than 90 days after receipt of the notice provided by the Secretary under this paragraph. ``(2) Content of notice.--The notice under paragraph (1) shall include the following: ``(A) Information that the allocation is occurring. ``(B) Information regarding the eligibility of the farm for an allocation of base acres under paragraph (3). ``(C) Information regarding how an owner may appeal a determination of ineligibility for an allocation of base acres under paragraph (3) through an appeals process established by the Secretary. ``(3) Eligibility.-- ``(A) In general.--Subject to subparagraph (D), effective beginning with the 2026 crop year, a farm is eligible to receive an allocation of base acres if, with respect to the farm, the amount described in subparagraph (B) exceeds the amount described in subparagraph (C). ``(B) 5-year average sum.--The amount described in this subparagraph, with respect to a farm, is the sum of-- ``(i) the 5-year average of-- ``(I) the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage or other similar purposes for the 2019 through 2023 crop years; and ``(II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; plus ``(ii) the lesser of-- ``(I) 15 percent of the total acres on the farm; and ``(II) the 5-year average of-- ``(aa) the acreage planted on the farm to eligible noncovered commodities for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and ``(bb) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to eligible noncovered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary. ``(C) Total number of base acres for covered commodities.-- The amount described in this subparagraph, with respect to a farm, is the total number of base acres for covered commodities on the farm (excluding unassigned crop base), as in effect on September 30, 2024. ``(D) Effect of no recent plantings of covered commodities.--In the case of a farm for which the amount determined under clause (i) of subparagraph (B) is equal to zero, that farm shall be ineligible to receive an allocation of base acres under this subsection. ``(E) Acreage planted on the farm to eligible noncovered commodities defined.--In this paragraph, the term `acreage planted on the farm to eligible noncovered commodities' means acreage planted on a farm to [[Page S3881]] commodities other than covered commodities, trees, bushes, vines, grass, or pasture (including cropland that was idle or fallow), as determined by the Secretary. ``(4) Number of base acres.--Subject to paragraphs (3) and (8), the number of base acres allocated to an eligible farm shall-- ``(A) be equal to the difference obtained by subtracting the amount determined under subparagraph (C) of paragraph (3) from the amount determined under subparagraph (B) of that paragraph; and ``(B) include unassigned crop base. ``(5) Allocation of acres.-- ``(A) Allocation.--The Secretary shall allocate the number of base acres under paragraph (4) among those covered commodities planted on the farm at any time during the 2019 through 2023 crop years. ``(B) Allocation formula.--The allocation of additional base acres for covered commodities shall be in proportion to the ratio of-- ``(i) the 5-year average of-- ``(I) the acreage planted on the farm to each covered commodity for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and ``(II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to that covered commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; to ``(ii) the 5-year average determined under paragraph (3)(B)(i). ``(C) Inclusion of all 5 years in average.--For the purpose of determining a 5-year acreage average under subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not planted. ``(D) Treatment of multiple planting or prevented planting.--For the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2019 through 2023 crop years to covered commodities, if the acreage that was planted or prevented from being planted was devoted to another covered commodity in the same crop year (other than a covered commodity produced under an established practice of double cropping), the owner may elect the covered commodity to be used for that crop year in determining the 5-year average, but may not include both the initial covered commodity and the subsequent covered commodity. ``(E) Limitation.--The allocation of additional base acres among covered commodities on a farm under this paragraph may not result in a total number of base acres for the farm in excess of the total number of acres on the farm. ``(6) Reduction by the secretary.--In carrying out this subsection, if the total number of eligible acres allocated to base acres across all farms in the United States under this subsection would exceed 30,000,000 acres, the Secretary shall apply an across-the-board, pro-rata reduction to the number of eligible acres to ensure the number of allocated base acres under this subsection is equal to 30,000,000 acres. ``(7) Payment yield.--Beginning with crop year 2026, for the purpose of making price loss coverage payments under section 1116, the Secretary shall establish payment yields to base acres allocated under this subsection equal to-- ``(A) the payment yield established on the farm for the applicable covered commodity; and ``(B) if no such payment yield for the applicable covered commodity exists, a payment yield-- ``(i) equal to the average payment yield for the covered commodity for the county in which the farm is situated; or ``(ii) determined pursuant to section 1113(c). ``(8) Treatment of new owners.--In the case of a farm for which the owner on the date of enactment of this subsection was not the owner for the 2019 through 2023 crop years, the Secretary shall use the planting history of the prior owner or owners of that farm for purposes of determining-- ``(A) eligibility under paragraph (3); ``(B) eligible acres under paragraph (4); and ``(C) the allocation of acres under paragraph (5).''. SEC. 10303. PRODUCER ELECTION. (a) In General.--Section 1115 of the Agricultural Act of 2014 (7 U.S.C. 9015) is amended-- (1) in subsection (a), in the matter preceding paragraph (1), by striking ``2023'' and inserting ``2031''; (2) in subsection (c)-- (A) in the matter preceding paragraph (1)-- (i) by striking ``crop year or'' and inserting ``crop year,''; and (ii) by inserting ``or the 2026 crop year,'' after ``2019 crop year,''; (B) in paragraph (1)-- (i) by striking ``crop year or'' and inserting ``crop year,''; and (ii) by inserting ``or the 2026 crop year,'' after ``2019 crop year,''; and (C) in paragraph (2)-- (i) in subparagraph (A), by striking ``and'' at the end; (ii) in subparagraph (B), by striking the period at the end and inserting ``; and''; and (iii) by adding at the end the following: ``(C) the same coverage for each covered commodity on the farm for the 2027 through 2031 crop years as was applicable for the 2025 crop year.''; and (3) by adding at the end the following: ``(i) Higher of Price Loss Coverage Payments and Agriculture Risk Coverage Payments.--For the 2025 crop year, the Secretary shall, on a covered commodity-by-covered commodity basis, make the higher of price loss coverage payments under section 1116 and agriculture risk coverage county coverage payments under section 1117 to the producers on a farm for the payment acres for each covered commodity on the farm.''. (b) Federal Crop Insurance Supplemental Coverage Option.-- Section 508(c)(4)(C)(iv) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)(C)(iv)) is amended by striking ``Crops for which the producer has elected under section 1116 of the Agricultural Act of 2014 to receive agriculture risk coverage and acres'' and inserting ``Acres''. SEC. 10304. PRICE LOSS COVERAGE. Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is amended-- (1) in subsection (a)(2), in the matter preceding subparagraph (A), by striking ``2023'' and inserting ``2031''; (2) in subsection (c)(1)(B)-- (A) in the subparagraph heading, by striking ``2023'' and inserting ``2031''; and (B) in the matter preceding clause (i), by striking ``2023'' and inserting ``2031''; (3) in subsection (d), in the matter preceding paragraph (1), by striking ``2025'' and inserting ``2031''; and (4) in subsection (g)-- (A) by striking ``subparagraph (F) of section 1111(19)'' and inserting ``paragraph (19)(A)(vi) of section 1111''; and (B) by striking ``2012 through 2016'' each place it appears and inserting ``2017 through 2021''. SEC. 10305. AGRICULTURE RISK COVERAGE. Section 1117 of the Agricultural Act of 2014 (7 U.S.C. 9017) is amended-- (1) in subsection (a), in the matter preceding paragraph (1), by striking ``2023'' and inserting ``2031''; (2) in subsection (c)-- (A) in paragraph (1), by inserting ``for each of the 2014 through 2024 crop years and 90 percent of the benchmark revenue for each of the 2025 through 2031 crop years'' before the period at the end; (B) by striking ``2023'' each place it appears and inserting ``2031''; and (C) in paragraph (4)(B), in the subparagraph heading, by striking ``2023'' and inserting ``2031''; (3) in subsection (d)(1), by striking subparagraph (B) and inserting the following: ``(B)(i) for each of the 2014 through 2024 crop years, 10 percent of the benchmark revenue for the crop year applicable under subsection (c); and ``(ii) for each of the 2025 through 2031 crop years, 12 percent of the benchmark revenue for the crop year applicable under subsection (c).''; and (4) in subsections (e), (g)(5), and (i)(5), by striking ``2023'' each place it appears and inserting ``2031''. SEC. 10306. EQUITABLE TREATMENT OF CERTAIN ENTITIES. (a) In General.--Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended-- (1) in subsection (a)-- (A) by redesignating paragraph (5) as paragraph (6); and (B) by inserting after paragraph (4) the following: ``(5) Qualified pass-through entity.--The term `qualified pass-through entity' means-- ``(A) a partnership (within the meaning of subchapter K of chapter 1 of the Internal Revenue Code of 1986); ``(B) an S corporation (as defined in section 1361 of that Code); ``(C) a limited liability company that does not affirmatively elect to be treated as a corporation; and ``(D) a joint venture or general partnership.''; (2) in subsections (b) and (c), by striking ``except a joint venture or general partnership'' each place it appears and inserting ``except a qualified pass-through entity''; and (3) in subsection (d), by striking ``subtitle B of title I of the Agricultural Act of 2014 or''. (b) Attribution of Payments.--Section 1001(e)(3)(B)(ii) of the Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended-- (1) in the clause heading, by striking ``joint ventures and general partnerships'' and inserting ``qualified pass-through entities''; (2) by striking ``a joint venture or a general partnership'' and inserting ``a qualified pass-through entity''; (3) by striking ``joint ventures and general partnerships'' and inserting ``qualified pass-through entities''; and (4) by striking ``the joint venture or general partnership'' and inserting ``the qualified pass-through entity''. (c) Persons Actively Engaged in Farming.--Section 1001A(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308- 1(b)(2)) is amended-- (1) subparagraphs (A) and (B), by striking ``a general partnership, a participant in a joint venture'' each place it appears and inserting ``a qualified pass-through entity''; and (2) in subparagraph (C), by striking ``a general partnership, joint venture, or similar entity'' and inserting ``a qualified pass-through entity or a similar entity''. (d) Joint and Several Liability.--Section 1001B(d) of the Food Security Act of 1985 (7 [[Page S3882]] U.S.C. 1308-2(d)) is amended by striking ``partnerships and joint ventures'' and inserting ``qualified pass-through entities''. (e) Exclusion From AGI Calculation.--Section 1001D(d) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(d)) is amended by striking ``, general partnership, or joint venture'' each place it appears. SEC. 10307. PAYMENT LIMITATIONS. Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended-- (1) in subsection (b)-- (A) by striking ``The'' and inserting ``Subject to subsection (i), the''; and (B) by striking ``$125,000'' and inserting ``$155,000''; (2) in subsection (c)-- (A) by striking ``The'' and inserting ``Subject to subsection (i), the''; and (B) by striking ``$125,000'' and inserting ``$155,000''; and (3) by adding at the end the following: ``(i) Adjustment.--For the 2025 crop year and each crop year thereafter, the Secretary shall annually adjust the amounts described in subsections (b) and (c) for inflation based on the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.''. SEC. 10308. ADJUSTED GROSS INCOME LIMITATION. Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(b)) is amended-- (1) in paragraph (1), by striking ``paragraph (3)'' and inserting ``paragraphs (3) and (4)''; and (2) by adding at the end the following: ``(4) Exception for certain operations.-- ``(A) Definitions.--In this paragraph: ``(i) Excepted payment or benefit.--The term `excepted payment or benefit' means-- ``(I) a payment or benefit under subtitle E of title I of the Agricultural Act of 2014 (7 U.S.C. 9081 et seq.); ``(II) a payment or benefit under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and ``(III) a payment or benefit described in paragraph (2)(C) received on or after October 1, 2024. ``(ii) Farming, ranching, or silviculture activities.--The term `farming, ranching, or silviculture activities' includes agri-tourism, direct-to-consumer marketing of agricultural products, the sale of agricultural equipment owned by the person or legal entity, and other agriculture-related activities, as determined by the Secretary. ``(B) Exception.--In the case of an excepted payment or benefit, the limitation established by paragraph (1) shall not apply to a person or legal entity during a crop, fiscal, or program year, as appropriate, if greater than or equal to 75 percent of the average gross income of the person or legal entity derives from farming, ranching, or silviculture activities.''. SEC. 10309. MARKETING LOANS. (a) Availability of Nonrecourse Marketing Assistance Loans for Loan Commodities.--Section 1201(b)(1) of the Agricultural Act of 2014 (7 U.S.C. 9031(b)(1)) is amended by striking ``2023'' and inserting ``2031''. (b) Loan Rates for Nonrecourse Marketing Assistance Loans.--Section 1202 of the Agricultural Act of 2014 (7 U.S.C. 9032) is amended-- (1) in subsection (b)-- (A) in the subsection heading, by striking ``2023'' and inserting ``2025''; and (B) in the matter preceding paragraph (1), by striking ``2023'' and inserting ``2025''; (2) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; (3) by inserting after subsection (b) the following: ``(c) 2026 Through 2031 Crop Years.--For purposes of each of the 2026 through 2031 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following: ``(1) In the case of wheat, $3.72 per bushel. ``(2) In the case of corn, $2.42 per bushel. ``(3) In the case of grain sorghum, $2.42 per bushel. ``(4) In the case of barley, $2.75 per bushel. ``(5) In the case of oats, $2.20 per bushel. ``(6) In the case of upland cotton, $0.55 per pound. ``(7) In the case of extra long staple cotton, $1.00 per pound. ``(8) In the case of long grain rice, $7.70 per hundredweight. ``(9) In the case of medium grain rice, $7.70 per hundredweight. ``(10) In the case of soybeans, $6.82 per bushel. ``(11) In the case of other oilseeds, $11.10 per hundredweight for each of the following kinds of oilseeds: ``(A) Sunflower seed. ``(B) Rapeseed. ``(C) Canola. ``(D) Safflower. ``(E) Flaxseed. ``(F) Mustard seed. ``(G) Crambe. ``(H) Sesame seed. ``(I) Other oilseeds designated by the Secretary. ``(12) In the case of dry peas, $6.87 per hundredweight. ``(13) In the case of lentils, $14.30 per hundredweight. ``(14) In the case of small chickpeas, $11.00 per hundredweight. ``(15) In the case of large chickpeas, $15.40 per hundredweight. ``(16) In the case of graded wool, $1.60 per pound. ``(17) In the case of nongraded wool, $0.55 per pound. ``(18) In the case of mohair, $5.00 per pound. ``(19) In the case of honey, $1.50 per pound. ``(20) In the case of peanuts, $390 per ton.''; (4) in subsection (d) (as so redesignated), by striking ``(a)(11) and (b)(11)'' and inserting ``(a)(11), (b)(11), and (c)(11)''; and (5) in subsection (e) (as so redesignated), in paragraph (1), by striking ``$0.25'' and inserting ``$0.30''. (c) Payment of Cotton Storage Costs.--Section 1204(g) of the Agricultural Act of 2014 (7 U.S.C. 9034(g)) is amended-- (1) by striking ``Effective'' and inserting the following: ``(1) Crop years 2014 through 2025.--Effective''; (2) in paragraph (1) (as so designated), by striking ``2023'' and inserting ``2025''; and (3) by adding at the end the following: ``(2) Payment of cotton storage costs.--Effective for each of the 2026 through 2031 crop years, the Secretary shall make cotton storage payments for upland cotton and extra long staple cotton available in the same manner as the Secretary provided storage payments for the 2006 crop of upland cotton, except that the payment rate shall be equal to the lesser of-- ``(A) the submitted storage charge for the current marketing year; and ``(B) in the case of storage in-- ``(i) California or Arizona, a payment rate of $4.90; and ``(ii) any other State, a payment rate of $3.00.''. (d) Loan Deficiency Payments.-- (1) Continuation.--Section 1205(a)(2)(B) of the Agricultural Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is amended by striking ``2023'' and inserting ``2031''. (2) Payments in lieu of ldps.--Section 1206 of the Agricultural Act of 2014 (7 U.S.C. 9036) is amended, in subsections (a) and (d), by striking ``2023'' each place it appears and inserting ``2031''. (e) Special Competitive Provisions for Extra Long Staple Cotton.--Section 1208(a) of the Agricultural Act of 2014 (7 U.S.C. 9038(a)) is amended, in the matter preceding paragraph (1), by striking ``2026'' and inserting ``2032''. (f) Availability of Recourse Loans.--Section 1209 of the Agricultural Act of 2014 (7 U.S.C. 9039) is amended, in subsections (a)(2), (b), and (c), by striking ``2023'' each place it appears and inserting ``2031''. SEC. 10310. REPAYMENT OF MARKETING LOANS. Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is amended-- (1) in subsection (b)-- (A) by redesignating paragraph (1) as subparagraph (A) and indenting appropriately; (B) in the matter preceding subparagraph (A) (as so redesignated), by striking ``The Secretary'' and inserting the following: ``(1) In general.--The Secretary''; and (C) by striking paragraph (2) and inserting the following: ``(B)(i) in the case of long grain rice and medium grain rice, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section; or ``(ii) in the case of upland cotton, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section. ``(2) Refund for upland cotton.--In the case of a repayment for a marketing assistance loan for upland cotton at a rate described in paragraph (1)(B)(ii), the Secretary shall provide to the producer a refund (if any) in an amount equal to the difference between the lowest prevailing world market price, as determined and adjusted by the Secretary in accordance with this section, during the 30-day period following the date on which the producer repays the marketing assistance loan and the repayment rate.''; (2) in subsection (c)-- (A) by striking the period at the end and inserting ``; and''; (B) by striking ``at the loan rate'' and inserting the following: ``at a rate that is the lesser of-- ``(1) the loan rate''; and (C) by adding at the end the following: ``(2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.''; (3) in subsection (d)-- (A) in paragraph (1), by striking ``and medium grain rice'' and inserting ``medium grain rice, and extra long staple cotton''; (B) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately; (C) in the matter preceding subparagraph (A) (as so redesignated), by striking ``For purposes'' and inserting the following: ``(1) In general.--For purposes''; and (D) by adding at the end the following: ``(2) Upland cotton.--In the case of upland cotton, for any period when price quotations for Middling (M) 1\3/32\-inch cotton are available, the formula under paragraph (1)(A) shall be based on the average of the 3 lowest-priced growths that are quoted.''; and (4) in subsection (e)-- (A) in the subsection heading, by inserting ``Extra Long Staple Cotton,'' after ``Upland Cotton,''; (B) in paragraph (2)-- (i) in the paragraph heading, by inserting ``Upland'' before ``Cotton''; and (ii) in subparagraph (B), in the matter preceding clause (i), by striking ``2024'' and inserting ``2032''; (C) by redesignating paragraph (3) as paragraph (4); and [[Page S3883]] (D) by inserting after paragraph (2) the following: ``(3) Extra long staple cotton.--The prevailing world market price for extra long staple cotton determined under subsection (d)-- ``(A) shall be adjusted to United States quality and location, with the adjustment to include the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and ``(B) may be further adjusted, during the period beginning on the date of enactment of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress) and ending on July 31, 2032, if the Secretary determines the adjustment is necessary-- ``(i) to minimize potential loan forfeitures; ``(ii) to minimize the accumulation of stocks of extra long staple cotton by the Federal Government; ``(iii) to ensure that extra long staple cotton produced in the United States can be marketed freely and competitively; and ``(iv) to ensure an appropriate transition between current- crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if-- ``(I) there are insufficient current-crop price quotations; and ``(II) the forward-crop price quotation is the lowest such quotation available.''. SEC. 10311. ECONOMIC ADJUSTMENT ASSISTANCE FOR TEXTILE MILLS. Section 1207(c) of the Agricultural Act of 2014 (7 U.S.C. 9037(c)) is amended by striking paragraph (2) and inserting the following: ``(2) Value of assistance.--The value of the assistance provided under paragraph (1) shall be-- ``(A) for the period beginning on August 1, 2013, and ending on July 31, 2025, 3 cents per pound; and ``(B) beginning on August 1, 2025, 5 cents per pound.''. SEC. 10312. SUGAR PROGRAM UPDATES. (a) Loan Rate Modifications.--Section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended-- (1) in subsection (a)-- (A) in paragraph (4), by striking ``and'' at the end; (B) in paragraph (5), by striking ``2023 crop years.'' and inserting ``2024 crop years; and''; and (C) by adding at the end the following: ``(6) 24.00 cents per pound for raw cane sugar for each of the 2025 through 2031 crop years.''; (2) in subsection (b)-- (A) in paragraph (1), by striking ``and'' at the end; (B) in paragraph (2), by striking ``2023 crop years.'' and inserting ``2024 crop years; and''; and (C) by adding at the end the following: ``(3) a rate that is equal to 136.55 percent of the loan rate per pound of raw cane sugar under subsection (a)(6) for each of the 2025 through 2031 crop years.''; and (3) in subsection (i), by striking ``2023'' and inserting ``2031''. (b) Adjustments to Commodity Credit Corporation Storage Rates.--Section 167 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7287) is amended-- (1) by striking subsection (a) and inserting the following: ``(a) In General.--For the 2025 crop year and each subsequent crop year, the Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in an amount that is not less than-- ``(1) in the case of refined sugar, 34 cents per hundredweight per month; and ``(2) in the case of raw cane sugar, 27 cents per hundredweight per month.''; and (2) in subsection (b)-- (A) in the subsection heading, by striking ``Subsequent'' and inserting ``Prior''; and (B) by striking ``and subsequent'' and inserting ``through 2024''. (c) Modernizing Beet Sugar Allotments.-- (1) Sugar estimates.--Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by striking ``2023'' and inserting ``2031''. (2) Allocation to processors.--Section 359c(g)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc(g)(2)) is amended-- (A) by striking ``In the case'' and inserting the following: ``(A) In general.--Except as provided in subparagraph (B), in the case''; and (B) by adding at the end the following: ``(B) Exception.--If the Secretary makes an upward adjustment under paragraph (1)(A), in adjusting allocations among beet sugar processors, the Secretary shall give priority to beet sugar processors with available sugar.''. (3) Timing of reassignment.--Section 359e(b)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)(2)) is amended-- (A) by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively, and indenting appropriately; (B) in the matter preceding clause (i) (as so redesignated), by striking ``If the Secretary'' and inserting the following: ``(A) In general.--If the Secretary''; and (C) by adding at the end the following: ``(B) Timing.--In carrying out subparagraph (A), the Secretary shall-- ``(i) make an initial determination based on the World Agricultural Supply and Demand Estimates approved by the World Agricultural Outlook Board for January that shall be applicable to the crop year for which allotments are required; and ``(ii) provide for an initial reassignment under subparagraph (A)(i) not later than 30 days after the date on which the World Agricultural Supply and Demand Estimates described in clause (i) is released.''. (d) Reallocations of Tariff-rate Quota Shortfall.--Section 359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) is amended by adding at the end the following: ``(c) Reallocation.-- ``(1) Initial reallocation.--Subject to paragraph (3), following the establishment of the tariff-rate quotas under subsection (a) for a quota year, the Secretary shall-- ``(A) determine which countries do not intend to fulfill their allocation for the quota year; and ``(B) reallocate any forecasted shortfall in the fulfillment of the tariff-rate quotas as soon as practicable. ``(2) Subsequent reallocation.--Subject to paragraph (3), not later than March 1 of a quota year, the Secretary shall reallocate any additional forecasted shortfall in the fulfillment of the tariff-rate quotas for raw cane sugar established under subsection (a)(1) for that quota year. ``(3) Cessation of effectiveness.--Paragraphs (1) and (2) shall cease to be in effect if-- ``(A) the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico, signed December 19, 2014, is terminated; and ``(B) no countervailing duty order under subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) is in effect with respect to sugar from Mexico. ``(d) Refined Sugar.-- ``(1) Definition of domestic sugar industry.--In this subsection, the term `domestic sugar industry' means domestic-- ``(A) sugar beet producers and processors; ``(B) producers and processors of sugar cane; and ``(C) refiners of raw cane sugar. ``(2) Study required.-- ``(A) In general.--Not later than 180 days after the date of enactment of this subsection, the Secretary shall conduct a study on whether the establishment of additional terms and conditions with respect to refined sugar imports is necessary and appropriate. ``(B) Elements.--In conducting the study under subparagraph (A), the Secretary shall examine the following: ``(i) The need for-- ``(I) defining `refined sugar' as having a minimum polarization of 99.8 degrees or higher; ``(II) establishing a standard for color- or reflectance- based units for refined sugar such as those utilized by the International Commission of Uniform Methods of Sugar Analysis; ``(III) prescribing specifications for packaging type for refined sugar; ``(IV) prescribing specifications for transportation modes for refined sugar; ``(V) requiring evidence that sugar imported as refined sugar will not undergo further refining in the United States; ``(VI) prescribing appropriate terms and conditions to avoid unlawful sugar imports; and ``(VII) establishing other definitions, terms and conditions, or other requirements. ``(ii) The potential impact of modifications described in each of subclauses (I) through (VII) of clause (i) on the domestic sugar industry. ``(iii) Whether, based on the needs described in clause (i) and the impact described in clause (ii), the establishment of additional terms and conditions is appropriate. ``(C) Consultation.--In conducting the study under subparagraph (A), the Secretary shall consult with representatives of the domestic sugar industry and users of refined sugar. ``(D) Report.--Not later than 1 year after the date of enactment of this subsection, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the study conducted under subparagraph (A). ``(3) Establishment of additional terms and conditions permitted.-- ``(A) In general.--Based on the findings in the report submitted under paragraph (2)(D), and after providing notice to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Secretary may issue regulations in accordance with subparagraph (B) to establish additional terms and conditions with respect to refined sugar imports that are necessary and appropriate. ``(B) Promulgation of regulations.--The Secretary may issue regulations under subparagraph (A) if the regulations-- ``(i) do not have an adverse impact on the domestic sugar industry; and ``(ii) are consistent with the requirements of this part, section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272), and obligations under international trade agreements that have been approved by Congress.''. (e) Clarification of Tariff-rate Quota Adjustments.-- Section 359k(b)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk(b)(1)) is amended, in the matter preceding subparagraph (A), by striking ``if [[Page S3884]] there is an'' and inserting ``for the sole purpose of responding directly to an''. (f) Period of Effectiveness.--Section 359l(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking ``2023'' and inserting ``2031''. SEC. 10313. DAIRY POLICY UPDATES. (a) Dairy Margin Coverage Production History.-- (1) Definition.--Section 1401(8) of the Agricultural Act of 2014 (7 U.S.C. 9051(8)) is amended by striking ``when the participating dairy operation first registers to participate in dairy margin coverage''. (2) Production history of participating dairy operations.-- Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is amended by striking subsections (a) and (b) and inserting the following: ``(a) Production History.--Except as provided in subsection (b), the production history of a dairy operation for dairy margin coverage is equal to the highest annual milk marketings of the participating dairy operation during any 1 of the 2021, 2022, or 2023 calendar years. ``(b) Election by New Dairy Operations.--In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the production history of the participating dairy operation: ``(1) The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount. ``(2) An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.''. (b) Dairy Margin Coverage Payments.--Section 1406(a)(1)(C) of the Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(C)) is amended by striking ``5,000,000'' each place it appears and inserting ``6,000,000''. (c) Premiums for Dairy Margins.-- (1) Tier i.--Section 1407(b) of the Agricultural Act of 2014 (7 U.S.C. 9057(b)) is amended-- (A) in the subsection heading, by striking ``5,000,000'' and inserting ``6,000,000''; and (B) in paragraph (1), by striking ``5,000,000'' and inserting ``6,000,000''. (2) Tier ii.--Section 1407(c) of the Agricultural Act of 2014 (7 U.S.C. 9057(c)) is amended-- (A) in the subsection heading, by striking ``5,000,000'' and inserting ``6,000,000''; and (B) in paragraph (1), by striking ``5,000,000'' and inserting ``6,000,000''. (3) Premium discounts.--Section 1407(g) of the Agricultural Act of 2014 (7 U.S.C. 9057(g)) is amended-- (A) in paragraph (1)-- (i) by striking ``2019 through 2023'' and inserting ``2026 through 2031''; and (ii) by striking ``January 2019'' and inserting ``January 2026''; and (B) in paragraph (2), by striking ``2023'' each place it appears and inserting ``2031''. (d) Duration.--Section 1409 of the Agricultural Act of 2014 (7 U.S.C. 9059) is amended by striking ``2025'' and inserting ``2031''. SEC. 10314. IMPLEMENTATION. Section 1614(c) of the Agricultural Act of 2014 (7 U.S.C. 9097(c)) is amended by adding at the end the following: ``(5) Further funding.--The Secretary shall make available to carry out subtitle C of title I of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress) and the amendments made by that subtitle $50,000,000, to remain available until expended, of which-- ``(A) not less than $5,000,000 shall be used to carry out paragraphs (3) and (4) of subsection (b); ``(B) $3,000,000 shall be used for activities described in paragraph (3)(A); ``(C) $3,000,000 shall be used for activities described in paragraph (3)(B); ``(D) $9,000,000 shall be used-- ``(i) to carry out mandatory surveys of dairy production cost and product yield information to be reported by manufacturers required to report under section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b), for all products processed in the same facility or facilities; and ``(ii) to publish the results of such surveys biennially; and ``(E) $1,000,000 shall be used to conduct the study under subsection (d) of section 359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk).''. Subtitle D--Disaster Assistance Programs SEC. 10401. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. (a) Livestock Indemnity Payments.--Section 1501(b) of the Agricultural Act of 2014 (7 U.S.C. 9081(b)) is amended-- (1) by striking paragraph (2) and inserting the following: ``(2) Payment rates.-- ``(A) Losses due to predation.--Indemnity payments to an eligible producer on a farm under paragraph (1)(A) shall be made at a rate of 100 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary. ``(B) Losses due to adverse weather or disease.--Indemnity payments to an eligible producer on a farm under subparagraph (B) or (C) of paragraph (1) shall be made at a rate of 75 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary. ``(C) Determination of market value.--In determining the market value described in subparagraphs (A) and (B), the Secretary may consider the ability of eligible producers to document regional price premiums for affected livestock that exceed the national average market price for those livestock. ``(D) Applicable date defined.--In this paragraph, the term `applicable date' means, with respect to livestock, as applicable-- ``(i) the day before the date of death of the livestock; or ``(ii) the day before the date of the event that caused the harm to the livestock that resulted in a reduced sale price.''; and (2) by adding at the end the following: ``(5) Additional payment for unborn livestock.-- ``(A) In general.--In the case of unborn livestock death losses incurred on or after January 1, 2024, the Secretary shall make an additional payment to eligible producers on farms that have incurred such losses in excess of the normal mortality due to a condition specified in paragraph (1). ``(B) Payment rate.--Additional payments under subparagraph (A) shall be made at a rate-- ``(i) determined by the Secretary; and ``(ii) less than or equal to 85 percent of the payment rate established with respect to the lowest weight class of the livestock, as determined by the Secretary, acting through the Administrator of the Farm Service Agency. ``(C) Payment amount.--The amount of a payment to an eligible producer that has incurred unborn livestock death losses shall be equal to the payment rate determined under subparagraph (B) multiplied, in the case of livestock described in-- ``(i) subparagraph (A), (B), or (F) of subsection (a)(4), by 1; ``(ii) subparagraph (D) of such subsection, by 2; ``(iii) subparagraph (E) of such subsection, by 12; and ``(iv) subparagraph (G) of such subsection, by the average number of birthed animals (for one gestation cycle) for the species of each such livestock, as determined by the Secretary. ``(D) Unborn livestock death losses defined.--In this paragraph, the term `unborn livestock death losses' means losses of any livestock described in subparagraph (A), (B), (D), (E), (F), or (G) of subsection (a)(4) that was gestating on the date of the death of the livestock.''. (b) Livestock Forage Disaster Program.--Section 1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014 (7 U.S.C. 9081(c)(3)(D)(ii)(I)) is amended-- (1) by striking ``1 monthly payment'' and inserting ``2 monthly payments''; and (2) by striking ``county for at least 8 consecutive'' and inserting the following: ``county for not less than-- ``(aa) 4 consecutive weeks during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph in an amount equal to 1 monthly payment using the monthly payment rate determined under subparagraph (B); or ``(bb) 7 of the previous 8 consecutive''. (c) Emergency Assistance for Livestock, Honey Bees, and Farm-raised Fish.-- (1) In general.--Section 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 9081(d)) is amended by adding at the end the following: ``(5) Assistance for losses due to bird depredation.-- ``(A) Definition of farm-raised fish.--In this paragraph, the term `farm-raised fish' means fish propagated and reared in a controlled fresh water environment. ``(B) Payments.--Eligible producers of farm-raised fish, including fish grown as food for human consumption, shall be eligible to receive payments under this subsection to aid in the reduction of losses due to piscivorous birds. ``(C) Payment rate.-- ``(i) In general.--The payment rate for payments under subparagraph (B) shall be determined by the Secretary, taking into account-- ``(I) costs associated with the deterrence of piscivorous birds; ``(II) the value of lost fish and revenue due to bird depredation; and ``(III) costs associated with disease loss from bird depredation. ``(ii) Minimum rate.--The payment rate for payments under subparagraph (B) shall be not less than $600 per acre of farm-raised fish. ``(D) Payment amount.--The amount of a payment under subparagraph (B) shall be the product obtained by multiplying-- ``(i) the applicable payment rate under subparagraph (C); and ``(ii) 85 percent of the total number of acres of farm- raised fish farms that the eligible producer has in production for the calendar year.''. (2) Emergency assistance for honeybees.--In determining honeybee colony losses eligible for assistance under section 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 9081(d)), the Secretary shall utilize a normal mortality rate of 15 percent. (d) Tree Assistance Program.--Section 1501(e) of the Agricultural Act of 2014 (7 U.S.C. 9081(e)) is amended-- (1) in paragraph (2)(B), by striking ``15 percent (adjusted for normal mortality)'' and inserting ``normal mortality''; and (2) in paragraph (3)-- [[Page S3885]] (A) in subparagraph (A)(i), by striking ``15 percent mortality (adjusted for normal mortality)'' and inserting ``normal mortality''; and (B) in subparagraph (B)-- (i) by striking ``50'' and inserting ``65''; and (ii) by striking ``15 percent damage or mortality (adjusted for normal tree damage and mortality)'' and inserting ``normal tree damage or mortality''. Subtitle E--Crop Insurance SEC. 10501. BEGINNING FARMER AND RANCHER BENEFIT. (a) Definitions.-- (1) In general.--Section 502(b)(3) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)(3)) is amended by striking ``5'' and inserting ``10''. (2) Conforming amendment.--Section 522(c)(7) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)(7)) is amended by striking subparagraph (F). (b) Increase in Assistance.--Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following: ``(9) Additional support.-- ``(A) In general.--In addition to any other provision of this subsection (except paragraph (2)(A)) regarding payment of a portion of premiums, a beginning farmer or rancher shall receive additional premium assistance that is the number of percentage points specified in subparagraph (B) greater than the premium assistance that would otherwise be available for the applicable policy, plan of insurance, and coverage level selected by the beginning farmer or rancher. ``(B) Percentage points adjustments.--The percentage points referred to in subparagraph (A) are the following: ``(i) For each of the first and second reinsurance years that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 5 percentage points. ``(ii) For the third reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 3 percentage points. ``(iii) For the fourth reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 1 percentage point.''. SEC. 10502. AREA-BASED CROP INSURANCE COVERAGE AND AFFORDABILITY. (a) Coverage Level.--Section 508(c)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)) is amended-- (1) in subparagraph (A), by striking clause (ii) and inserting the following: ``(ii) may be purchased at any level not to exceed-- ``(I) in the case of the individual yield or revenue coverage, 85 percent; ``(II) in the case of individual yield or revenue coverage aggregated across multiple commodities, 90 percent; and ``(III) in the case of area yield or revenue coverage (as determined by the Corporation), 95 percent.''; and (2) in subparagraph (C)-- (A) in clause (ii), by striking ``14'' and inserting ``10''; and (B) in clause (iii)(I), by striking ``86'' and inserting ``90''. (b) Premium Subsidy.--Section 508(e)(2)(H)(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)(H)(i)) is amended by striking ``65'' and inserting ``80''. SEC. 10503. ADMINISTRATIVE AND OPERATING EXPENSE ADJUSTMENTS. Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by adding at the end the following: ``(10) Additional expenses.-- ``(A) In general.--Beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, in addition to the terms and conditions of the Standard Reinsurance Agreement, to cover additional expenses for loss adjustment procedures, the Corporation shall pay an additional administrative and operating expense subsidy to approved insurance providers for eligible contracts. ``(B) Payment amount.--In the case of an eligible contract, the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium. ``(C) Definitions.--In this paragraph: ``(i) Eligible contract.--The term `eligible contract'-- ``(I) means a crop insurance contract entered into by an approved insurance provider in an eligible State; and ``(II) does not include a contract for-- ``(aa) catastrophic risk protection under subsection (b); ``(bb) an area-based plan of insurance or similar plan of insurance, as determined by the Corporation; or ``(cc) a policy under which an approved insurance provider does not incur loss adjustment expenses, as determined by the Corporation. ``(ii) Eligible state.--The term `eligible State' means a State in which, with respect to an insurance year, the loss ratio for eligible contracts is greater than 120 percent of the total net book premium written by all approved insurance providers. ``(11) Specialty crops.-- ``(A) Minimum reimbursement.--Beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, the rate of reimbursement to approved insurance providers and agents for administrative and operating expenses with respect to crop insurance contracts covering agricultural commodities described in section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) shall be equal to or greater than the percentage that is the greater of the following: ``(i) 17 percent of the premium used to define loss ratio. ``(ii) The percent 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. ``(B) Other contracts.--In carrying out subparagraph (A), the Corporation shall not reduce, with respect to any reinsurance year, the amount or the rate of reimbursement to approved insurance providers and agents under the Standard Reinsurance Agreement described in clause (ii) of such subparagraph for administrative and operating expenses with respect to contracts covering agricultural commodities that are not subject to such subparagraph. ``(C) Administration.--The requirements of this paragraph and the adjustments made pursuant to this paragraph shall not be considered a renegotiation under paragraph (8)(A). ``(12) A&O inflation adjustment.-- ``(A) In general.--Subject to subparagraph (B), beginning with the 2026 reinsurance year, and for each reinsurance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agreement in effect for the reinsurance year in order to account for inflation, in a manner consistent with the increases provided with respect to the 2011 through 2015 reinsurance years under the enclosure included in Risk Management Agency Bulletin numbered MGR-10-007 and dated June 30, 2010. ``(B) Special rule for 2026 reinsurance year.--The increase under subparagraph (A) for the 2026 reinsurance year shall not exceed the percentage change for the preceding reinsurance year included in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. ``(C) Administration.--An increase under subparagraph (A)-- ``(i) shall apply with respect to all contracts covering agricultural commodities that were subject to an increase during the period of the 2011 through 2015 reinsurance years under the enclosure referred to in that subparagraph; and ``(ii) shall not be considered a renegotiation under paragraph (8)(A).''. SEC. 10504. PREMIUM SUPPORT. Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended-- (1) in subparagraph (C)(i), by striking ``64'' and inserting ``69''; (2) in subparagraph (D)(i), by striking ``59'' and inserting ``64''; (3) in subparagraph (E)(i), by striking ``55'' and inserting ``60''; (4) in subparagraph (F)(i), by striking ``48'' and inserting ``51''; and (5) in subparagraph (G)(i), by striking ``38'' and inserting ``41''. SEC. 10505. PROGRAM COMPLIANCE AND INTEGRITY. Section 515(l)(2) of the Federal Crop Insurance Act (7 U.S.C. 1515(l)(2)) is amended by striking ``than'' and all that follows through the period at the end and inserting the following: ``than-- ``(A) $4,000,000 for each of fiscal years 2009 through 2025; and ``(B) $6,000,000 for fiscal year 2026 and each subsequent fiscal year.''. SEC. 10506. REVIEWS, COMPLIANCE, AND INTEGRITY. Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(C)(i)) is amended, in the matter preceding subclause (I), by striking ``for each fiscal year'' and inserting ``for each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter''. SEC. 10507. POULTRY INSURANCE PILOT PROGRAM. Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is amended by adding at the end the following: ``(j) Poultry Insurance Pilot Program.-- ``(1) In general.--Notwithstanding subsection (a)(2), the Corporation shall establish a pilot program under which contract poultry growers, including growers of broilers and laying hens, may elect to receive index-based insurance from extreme weather-related risk resulting in increased utility costs (including costs of natural gas, propane, electricity, water, and other appropriate costs, as determined by the Corporation) associated with poultry production. ``(2) Stakeholder engagement.--The Corporation shall engage with poultry industry stakeholders in establishing the pilot program under paragraph (1). ``(3) Location.--The pilot program established under paragraph (1) shall be conducted in a sufficient number of counties to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among producers in the top poultry producing States, as determined by the Corporation. ``(4) Approval of policy or plan.--Notwithstanding section 508(l), the Board shall approve a policy or plan of insurance based on the pilot program under paragraph (1)-- ``(A) in accordance with section 508(h); and ``(B) not later than 2 years after the date of enactment of this subsection.''. [[Page S3886]] Subtitle F--Additional Investments in Rural America SEC. 10601. CONSERVATION. (a) In General.--Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended-- (1) in paragraph (2), by striking subparagraphs (A) through (F) and inserting the following: ``(A) $625,000,000 for fiscal year 2026; ``(B) $650,000,000 for fiscal year 2027; ``(C) $675,000,000 for fiscal year 2028; ``(D) $700,000,000 for fiscal year 2029; ``(E) $700,000,000 for fiscal year 2030; and ``(F) $700,000,000 for fiscal year 2031.''; and (2) in paragraph (3)-- (A) in subparagraph (A), by striking clauses (i) through (v) and inserting the following: ``(i) $2,655,000,000 for fiscal year 2026; ``(ii) $2,855,000,000 for fiscal year 2027; ``(iii) $3,255,000,000 for fiscal year 2028; ``(iv) $3,255,000,000 for fiscal year 2029; ``(v) $3,255,000,000 for fiscal year 2030; and ``(vi) $3,255,000,000 for fiscal year 2031; and''; and (B) in subparagraph (B), by striking clauses (i) through (v) and inserting the following: ``(i) $1,300,000,000 for fiscal year 2026; ``(ii) $1,325,000,000 for fiscal year 2027; ``(iii) $1,350,000,000 for fiscal year 2028; ``(iv) $1,375,000,000 for fiscal year 2029; ``(v) $1,375,000,000 for fiscal year 2030; and ``(vi) $1,375,000,000 for fiscal year 2031.''. (b) Regional Conservation Partnership Program.--Section 1271D of the Food Security Act of 1985 (16 U.S.C. 3871d) is amended by striking subsection (a) and inserting the following: ``(a) Availability of Funding.--Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out the program, to the maximum extent practicable-- ``(1) $425,000,000 for fiscal year 2026; ``(2) $450,000,000 for fiscal year 2027; ``(3) $450,000,000 for fiscal year 2028; ``(4) $450,000,000 for fiscal year 2029; ``(5) $450,000,000 for fiscal year 2030; and ``(6) $450,000,000 for fiscal year 2031.''. (c) Grassroots Source Water Protection Program.--Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb- 2(b)) is amended-- (1) in paragraph (1), by striking ``2023'' and inserting ``2031''; and (2) in paragraph (3)-- (A) in subparagraph (A), by striking ``and'' at the end; (B) in subparagraph (B), by striking the period at the end and inserting ``; and''; and (C) by adding at the end the following: ``(C) $1,000,000 beginning in fiscal year 2026, to remain available until expended.''. (d) Voluntary Public Access and Habitat Incentive Program.--Section 1240R(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb-5(f)(1)) is amended-- (1) by striking ``2023, and'' and inserting ``2023,''; and (2) by inserting ``, and $70,000,000 for the period of fiscal years 2025 through 2031'' before the period at the end. (e) Watershed Protection and Flood Prevention.--Section 15 of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012a) is amended by striking ``$50,000,000 for fiscal year 2019 and each fiscal year thereafter'' and inserting ``$150,000,000 for fiscal year 2026 and each fiscal year thereafter, to remain available until expended''. (f) Feral Swine Eradication and Control Pilot Program.-- Section 2408(g)(1) of the Agriculture Improvement Act of 2018 (7 U.S.C. 8351 note; Public Law 115-334) is amended-- (1) by striking ``2023 and'' and inserting ``2023,''; and (2) by inserting ``, and $105,000,000 for the period of fiscal years 2025 through 2031'' before the period at the end. (g) Rescission.--The unobligated balances of amounts appropriated by section 21001(a) of Public Law 117-169 (136 Stat. 2015) are rescinded. SEC. 10602. SUPPLEMENTAL AGRICULTURAL TRADE PROMOTION PROGRAM. (a) In General.--The Secretary of Agriculture shall carry out a program to encourage the accessibility, development, maintenance, and expansion of commercial export markets for United States agricultural commodities. (b) Funding.--Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall make available to carry out this section $285,000,000 for fiscal year 2027 and each fiscal year thereafter. SEC. 10603. NUTRITION. Section 203D(d)(5) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7507(d)(5)) is amended by striking ``2024'' and inserting ``2031''. SEC. 10604. RESEARCH. (a) Urban, Indoor, and Other Emerging Agricultural Production Research, Education, and Extension Initiative.-- Section 1672E(d)(1)(B) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925g(d)(1)(B)) is amended by striking ``fiscal year 2024, to remain available until expended'' and inserting ``each of fiscal years 2024 through 2031''. (b) Foundation for Food and Agriculture Research.--Section 7601(g)(1)(A) of the Agricultural Act of 2014 (7 U.S.C. 5939(g)(1)(A)) is amended by adding at the end the following: ``(iv) Further funding.--Not later than 30 days after the date of enactment of this clause, of the funds of the Commodity Credit Corporation, the Secretary shall transfer to the Foundation to carry out this section $37,000,000, to remain available until expended.''. (c) Scholarships for Students at 1890 Institutions.-- Section 1446(b)(1) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222a(b)(1)) is amended by adding at the end the following: ``(C) Further funding.--Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $60,000,000 for fiscal year 2026, to remain available until expended.''. (d) Assistive Technology Program for Farmers With Disabilities.--Section 1680 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5933) is amended-- (1) in subsection (c)(2), by inserting ``and subsection (d)'' after ``paragraph (1)''; and (2) by adding at the end the following: ``(d) Mandatory Funding.--Subject to subsection (c)(2), of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $8,000,000 for fiscal year 2026, to remain available until expended.''. (e) Specialty Crop Research Initiative.--Section 412(k)(1)(B) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632(k)(1)(B)) is amended by striking ``section $80,000,000 for fiscal year 2014'' and inserting the following: ``section-- ``(i) $80,000,000 for each of fiscal years 2014 through 2025; and ``(ii) $175,000,000 for fiscal year 2026''. (f) Research Facilities Act.--Section 6 of the Research Facilities Act (7 U.S.C. 390d) is amended-- (1) in subsection (c), by striking ``subsection (a)'' and inserting ``subsections (a) and (e)''; and (2) by adding at the end the following: ``(e) Mandatory Funding.--Subject to subsections (b), (c), and (d), of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out the competitive grant program under section 4 $125,000,000 for fiscal year 2026 and each fiscal year thereafter.''. SEC. 10605. ENERGY. Section 9005(g)(1)(F) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8105(g)(1)(F)) is amended by striking ``2024'' and inserting ``2031''. SEC. 10606. HORTICULTURE. (a) Plant Pest and Disease Management and Disaster Prevention.--Section 420(f) of the Plant Protection Act (7 U.S.C. 7721(f)) is amended-- (1) in paragraph (5), by striking ``and'' at the end; (2) by redesignating paragraph (6) as paragraph (7); (3) by inserting after paragraph (5) the following: ``(6) $75,000,000 for each of fiscal years 2018 through 2025; and''; and (4) in paragraph (7) (as so redesignated), by striking ``$75,000,000 for fiscal year 2018'' and inserting ``$90,000,000 for fiscal year 2026''. (b) Specialty Crop Block Grants.--Section 101(l)(1) of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465) is amended-- (1) in subparagraph (D), by striking ``and'' at the end; (2) by redesignating subparagraph (E) as subparagraph (F); (3) by inserting after subparagraph (D) the following: ``(E) $85,000,000 for each of fiscal years 2018 through 2025; and''; and (4) in subparagraph (F) (as so redesignated), by striking ``$85,000,000 for fiscal year 2018'' and inserting ``$100,000,000 for fiscal year 2026''. (c) Organic Production and Market Data Initiative.--Section 7407(d)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5925c(d)(1)) is amended-- (1) in subparagraph (B), by striking ``and'' at the end; (2) in subparagraph (C), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following: ``(D) $10,000,000 for the period of fiscal years 2026 through 2031.''. (d) Modernization and Improvement of International Trade Technology Systems and Data Collection.--Section 2123(c)(4) of the Organic Foods Production Act of 1990 (7 U.S.C. 6522(c)(4)) is amended, in the matter preceding subparagraph (A), by striking ``and $1,000,000 for fiscal year 2024'' and inserting ``, $1,000,000 for fiscal years 2024 and 2025, and $5,000,000 for fiscal year 2026''. (e) National Organic Certification Cost-share Program.-- Section 10606(d)(1)(C) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523(d)(1)(C)) is amended by striking ``2024'' and inserting ``2031''. (f) Multiple Crop and Pesticide Use Survey.--Section 10109(c) of the Agriculture Improvement Act of 2018 (Public Law 115-334; 132 Stat. 4907) is amended by adding at the end the following: ``(3) Further mandatory funding.--Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $5,000,000 for fiscal year 2026, to remain available until expended.''. SEC. 10607. MISCELLANEOUS. (a) Animal Disease Prevention and Management.--Section 10409A(d)(1) of the Animal Health Protection Act (7 U.S.C. 8308a(d)(1)) is amended-- (1) in subparagraph (B)-- (A) in the heading, by striking ``Subsequent fiscal years'' and inserting ``Fiscal years 2023 through 2025''; and [[Page S3887]] (B) by striking ``fiscal year 2023 and each fiscal year thereafter'' and inserting ``each of fiscal years 2023 through 2025''; and (2) by adding at the end the following: ``(C) Fiscal years 2026 through 2030.--Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $233,000,000 for each of fiscal years 2026 through 2030, of which-- ``(i) not less than $10,000,000 shall be made available for each such fiscal year to carry out subsection (a); ``(ii) not less than $70,000,000 shall be made available for each such fiscal year to carry out subsection (b); and ``(iii) not less than $153,000,000 shall be made available for each such fiscal year to carry out subsection (c). ``(D) Subsequent fiscal years.--Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $75,000,000 for fiscal year 2031 and each fiscal year thereafter, of which not less than $45,000,000 shall be made available for each of those fiscal years to carry out subsection (b).''. (b) Sheep Production and Marketing Grant Program.--Section 209(c) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1627a(c)) is amended-- (1) by striking ``2019, and'' and inserting ``2019,''; and (2) by inserting ``and $3,000,000 for fiscal year 2026,'' after ``fiscal year 2024,'' (c) Pima Agriculture Cotton Trust Fund.--Section 12314 of the Agricultural Act of 2014 (7 U.S.C. 2101 note; Public Law 113-79) is amended-- (1) in subsection (b), in the matter preceding paragraph (1), by striking ``2024'' and inserting ``2031''; and (2) in subsection (h), by striking ``2024''and inserting ``2031''. (d) Agriculture Wool Apparel Manufacturers Trust Fund.-- Section 12315 of the Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113-79) is amended by striking ``2024'' each place it appears and inserting ``2031''. (e) Wool Research and Promotion.--Section 12316(a) of the Agricultural Act of 2014 (7 U.S.C. 7101 note; Public Law 113- 79) is amended by striking ``2024'' and inserting ``2031''. (f) Emergency Citrus Disease Research and Development Trust Fund.--Section 12605(d) of the Agriculture Improvement Act of 2018 (7 U.S.C. 7632 note; Public Law 115-334) is amended by striking ``2024'' and inserting ``2031''. TITLE II--COMMITTEE ON ARMED SERVICES SEC. 20001. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR IMPROVING THE QUALITY OF LIFE FOR MILITARY PERSONNEL. (a) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $230,480,000 for restoration and modernization costs under the Marine Corps Barracks 2030 initiative; (2) $119,000,000 for base operating support costs under the Marine Corps; (3) $1,000,000,000 for Army, Navy, Air Force, and Space Force sustainment, restoration, and modernization of military unaccompanied housing; (4) $2,000,000,000 for the Defense Health Program; (5) $2,900,000,000 to supplement the basic allowance for housing payable to members of the Army, Air Force, Navy, Marine Corps, and Space Force , notwithstanding section 403 of title 37, United States Code; (6) $50,000,000 for bonuses, special pays, and incentive pays for members of the Army, Air Force, Navy, Marine Corps, and Space Force pursuant to titles 10 and 37, United States Code; (7) $10,000,000 for the Defense Activity for Non- Traditional Education Support's Online Academic Skills Course program for members of the Army, Air Force, Navy, Marine Corps, and Space Force; (8) $100,000,000 for tuition assistance for members of the Army, Air Force, Navy, Marine Corps, and Space Force pursuant to title 10, United States Code; (9) $100,000,000 for child care fee assistance for members of the Army, Air Force, Navy, Marine Corps, and Space Force under part II of chapter 88 of title 10, United States Code; (10) $590,000,000 to increase the Temporary Lodging Expense Allowance under chapter 8 of title 37, United States Code, to 21 days; (11) $100,000,000 for Department of Defense Impact Aid payments to local educational agencies under section 2008 of title 10, United States Code; (12) $10,000,000 for military spouse professional licensure under section 1784 of title 10, United States Code; (13) $6,000,000 for Armed Forces Retirement Home facilities; (14) $100,000,000 for the Defense Community Infrastructure Program; (15) $100,000,000 for Defense Advanced Research Projects Agency (DARPA) casualty care research; and (16) $62,000,000 for modernization of Department of Defense childcare center staffing. (b) Temporary Increase in Percentage of Value of Authorized Investment in Certain Privatized Military Housing Projects.-- (1) In general.--During the period beginning on the date of the enactment of this section and ending on September 30, 2029, the Secretary concerned shall apply-- (A) paragraph (1) of subsection (c) of section 2875 of title 10, United States Code, by substituting ``60 percent'' for ``33 \1/3\ percent''; and (B) paragraph (2) of such subsection by substituting ``60 percent'' for ``45 percent''. (2) Secretary concerned defined.--In this subsection, the term ``Secretary concerned'' has the meaning given such term in section 101 of title 10, United States Code. (c) Temporary Authority for Acquisition or Construction of Privatized Military Unaccompanied Housing.--Section 2881a of title 10, United States Code, is amended-- (1) by striking the heading and inserting ``Temporary authority for acquisition or construction of privatized military unaccompanied housing''; (2) by striking ``Secretary of the Navy'' each place it appears and inserting ``Secretary concerned''; (3) by striking ``under the pilot projects'' each place it appears and inserting ``pursuant to this section''; (4) in subsection (a)-- (A) by striking the heading and inserting ``In General''; and (B) by striking ``carry out not more than three pilot projects under the authority of this section or another provision of this subchapter to use the private sector'' and inserting ``use the authority under this subchapter to enter into contracts with appropriate private sector entities''; (5) in subsection (c), by striking ``privatized housing'' and inserting ``privatized housing units''; (6) by redesignating subsection (f) as subsection (e); and (7) in subsection (e) (as so redesignated)-- (A) by striking ``under the pilot programs'' and inserting ``under this section''; and (B) by striking ``September 30, 2009'' and inserting ``September 30, 2029''. SEC. 20002. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR SHIPBUILDING. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $250,000,000 for the expansion of accelerated Training in Defense Manufacturing program; (2) $250,000,000 for United States production of turbine generators for shipbuilding industrial base; (3) $450,000,000 for United States additive manufacturing for wire production and machining capacity for shipbuilding industrial base; (4) $492,000,000 for next-generation shipbuilding techniques; (5) $85,000,000 for United States-made steel plate for shipbuilding industrial base; (6) $50,000,000 for machining capacity for naval propellers for shipbuilding industrial base; (7) $110,000,000 for rolled steel and fabrication facility for shipbuilding industrial base; (8) $400,000,000 for expansion of collaborative campus for naval shipbuilding; (9) $450,000,000 for application of autonomy and artificial intelligence to naval shipbuilding; (10) $500,000,000 for the adoption of advanced manufacturing techniques in the shipbuilding industrial base; (11) $500,000,000 for additional dry-dock capability; (12) $50,000,000 for the expansion of cold spray repair technologies; (13) $450,000,000 for additional maritime industrial workforce development programs; (14) $750,000,000 for additional supplier development across the naval shipbuilding industrial base; (15) $250,000,000 for additional advanced manufacturing processes across the naval shipbuilding industrial base; (16) $4,600,000,000 for a second Virginia-class submarine in fiscal year 2026; (17) $5,400,000,000 for two additional Guided Missile Destroyer (DDG) ships; (18) $160,000,000 for advanced procurement for Landing Ship Medium; (19) $1,803,941,000 for procurement of Landing Ship Medium; (20) $295,000,000 for development of a second Landing Craft Utility shipyard and production of additional Landing Craft Utility; (21) $100,000,000 for advanced procurement for light replenishment oiler program; (22) $600,000,000 for the lease or purchase of new ships through the National Defense Sealift Fund; (23) $2,725,000,000 for the procurement of T-AO oilers; (24) $500,000,000 for cost-to-complete for rescue and salvage ships; (25) $300,000,000 for production of ship-to-shore connectors; (26) $1,470,000,000 for the implementation of a multi-ship amphibious warship contract; (27) $80,000,000 for accelerated development of vertical launch system reloading at sea; (28) $250,000,000 for expansion of Navy corrosion control programs; (29) $159,000,000 for leasing of ships for Marine Corps operations; (30) $1,534,000,000 for expansion of small unmanned surface vessel production; (31) $2,100,000,000 for development, procurement, and integration of purpose-built medium unmanned surface vessels; (32) $1,300,000,000 for expansion of unmanned underwater vehicle production; [[Page S3888]] (33) $188,360,000 for the development and testing of maritime robotic autonomous systems and enabling technologies; (34) $174,000,000 for the development of a Test Resource Management Center robotic autonomous systems proving ground; (35) $250,000,000 for the development, production, and integration of wave-powered unmanned underwater vehicles; and (36) $150,000,000 for retention of inactive reserve fleet ships. SEC. 20003. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR INTEGRATED AIR AND MISSILE DEFENSE. (a) Next Generation Missile Defense Technologies.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $250,000,000 for development and testing of directed energy capabilities by the Under Secretary for Research and Engineering; (2) $500,000,000 for national security space launch infrastructure; (3) $2,000,000,000 for air moving target indicator military satellites; (4) $400,000,000 for expansion of Multi-Service Advanced Capability Hypersonic Test Bed program; (5) $5,600,000,000 for development of space-based and boost phase intercept capabilities; (6) $7,200,000,000 for the development, procurement, and integration of military space-based sensors; and (7) $2,550,000,000 for the development, procurement, and integration of military missile defense capabilities. (b) Layered Homeland Defense.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $2,200,000,000 for acceleration of hypersonic defense systems; (2) $800,000,000 for accelerated development and deployment of next-generation intercontinental ballistic missile defense systems; (3) $408,000,000 for Army space and strategic missile test range infrastructure restoration and modernization in the United States Indo-Pacific Command area of operations west of the international dateline; (4) $1,975,000,000 for improved ground-based missile defense radars; and (5) $530,000,000 for the design and construction of Missile Defense Agency missile instrumentation range safety ship. SEC. 20004. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR MUNITIONS AND DEFENSE SUPPLY CHAIN RESILIENCY. (a) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $400,000,000 for the development, production, and integration of Navy and Air Force long-range anti-ship missiles; (2) $380,000,000 for production capacity expansion for Navy and Air Force long-range anti-ship missiles; (3) $490,000,000 for the development, production, and integration of Navy and Air Force long-range air-to-surface missiles; (4) $94,000,000 for the development, production, and integration of alternative Navy and Air Force long-range air- to-surface missiles; (5) $630,000,000 for the development, production, and integration of long-range Navy air defense and anti-ship missiles; (6) $688,000,000 for the development, production, and integration of long-range multi-service cruise missiles; (7) $250,000,000 for production capacity expansion and supplier base strengthening of long-range multi-service cruise missiles; (8) $70,000,000 for the development, production, and integration of short-range Navy and Marine Corps anti-ship missiles; (9) $100,000,000 for the development of an anti-ship seeker for short-range Army ballistic missiles; (10) $175,000,000 for production capacity expansion for next-generation Army medium-range ballistic missiles; (11) $50,000,000 for the mitigation of diminishing manufacturing sources for medium-range air-to-air missiles; (12) $250,000,000 for the procurement of medium-range air- to-air missiles; (13) $225,000,000 for the expansion of production capacity for medium-range air-to-air missiles; (14) $50,000,000 for the development of second sources for components of short-range air-to-air missiles; (15) $325,000,000 for production capacity improvements for air-launched anti-radiation missiles; (16) $50,000,000 for the accelerated development of Army next-generation medium-range anti-ship ballistic missiles; (17) $114,000,000 for the production of Army next- generation medium-range ballistic missiles; (18) $300,000,000 for the production of Army medium-range ballistic missiles; (19) $85,000,000 for the accelerated development of Army long-range ballistic missiles; (20) $400,000,000 for the production of heavyweight torpedoes; (21) $200,000,000 for the development, procurement, and integration of mass-producible autonomous underwater munitions; (22) $70,000,000 for the improvement of heavyweight torpedo maintenance activities; (23) $200,000,000 for the production of lightweight torpedoes; (24) $500,000,000 for the development, procurement, and integration of maritime mines; (25) $50,000,000 for the development, procurement, and integration of new underwater explosives; (26) $55,000,000 for the development, procurement, and integration of lightweight multi-mission torpedoes; (27) $80,000,000 for the production of sonobuoys; (28) $150,000,000 for the development, procurement, and integration of air-delivered long-range maritime mines; (29) $61,000,000 for the acceleration of Navy expeditionary loitering munitions deployment; (30) $50,000,000 for the acceleration of one-way attack unmanned aerial systems with advanced autonomy; (31) $1,000,000,000 for the expansion of the one-way attack unmanned aerial systems industrial base; (32) $200,000,000 for investments in solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code; (33) $400,000,000 for investments in the emerging solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code; (34) $42,000,000 for investments in second sources for large-diameter solid rocket motors for hypersonic missiles; (35) $1,000,000,000 for the creation of next-generation automated munitions production factories; (36) $170,000,000 for the development of advanced radar depot for repair, testing, and production of radar and electronic warfare systems; (37) $25,000,000 for the expansion of the Department of Defense industrial base policy analysis workforce; (38) $30,300,000 for the repair of Army missiles; (39) $100,000,000 for the production of small and medium ammunition; (40) $2,000,000,000 for additional activities to improve the United States stockpile of critical minerals through the National Defense Stockpile Transaction Fund, authorized by subchapter III of chapter 5 of title 50, United States Code; (41) $10,000,000 for the expansion of the Department of Defense armaments cooperation workforce; (42) $500,000,000 for the expansion of the Defense Exportability Features program; (43) $350,000,000 for production of Navy long-range air and missile defense interceptors; (44) $93,000,000 for replacement of Navy long-range air and missile defense interceptors; (45) $100,000,000 for development of a second solid rocket motor source for Navy air defense and anti ship missiles; (46) $65,000,000 for expansion of production capacity of Missile Defense Agency long-range anti-ballistic missiles; (47) $225,000,000 for expansion of production capacity for Navy air defense and anti-ship missiles; (48) $103,300,000 for expansion of depot level maintenance facility for Navy long-range air and missile defense interceptors; (49) $18,000,000 for creation of domestic source for guidance section of Navy short-range air defense missiles; (50) $65,000,000 for integration of Army medium-range air and missile defense interceptor with Navy ships; (51) $176,100,000 for production of Army long-range movable missile defense radar; (52) $167,000,000 for accelerated fielding of Army short- range gun-based air and missile defense system; (53) $40,000,000 for development of low-cost alternatives to air and missile defense interceptors; (54) $50,000,000 for acceleration of Army next-generation shoulder-fired air defense system; (55) $91,000,000 for production of Army next-generation shoulder-fired air defense system; (56) $500,000,000 for development, production, and integration of counter-unmanned aerial systems programs; (57) $350,000,000 for development, production, and integration of non-kinetic counter-unmanned aerial systems programs; (58) $250,000,000 for development, production, and integration of land-based counter-unmanned aerial systems programs; (59) $200,000,000 for development, production, and integration of ship-based counter-unmanned aerial systems programs; (60) $400,000,000 for acceleration of hypersonic strike programs; (61) $167,000,000 for procurement of additional launchers for Army medium-range air and missile defense interceptors; (62) $500,000,000 for expansion of defense advanced manufacturing techniques; (63) $1,000,000 for establishment of the Joint Energetics Transition Office; (64) $200,000,000 for acceleration of Army medium-range air and missile defense interceptors; (65) $150,000,000 for additive manufacturing for propellant; (66) $250,000,000 for expansion and acceleration of penetrating munitions production; and (67) $50,000,000 for development, procurement, and integration of precision extended-range artillery. [[Page S3889]] (b) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $3,300,000,000 for grants and purchase commitments made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code. (c) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $5,000,000,000 for investments in critical minerals supply chains made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code. (d) Appropriations.--In addition to amounts otherwise available, there is appropriated to the Secretary of Defense, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $500,000,000 to the ``Department of Defense Credit Program Account'' to carry out the capital assistance program, including loans, loan guarantees, and technical assistance, established under section 149(e) of title 10, United States Code, for critical minerals and related industries and projects, including related Covered Technology Categories: Provided, That-- (1) such amounts are available to subsidize gross obligations for the principal amount of direct loans, and total loan principal, any part of which is to be guaranteed, not to exceed $100,000,000,000; and (2) such amounts are available to cover all costs and expenditures as provided under section 149(e)(5)(B) of title 10, United States Code. SEC. 20005. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR SCALING LOW-COST WEAPONS INTO PRODUCTION. (a) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $25,000,000 for the Office of Strategic Capital Global Technology Scout program; (2) $1,400,000,000 for the expansion of the small unmanned aerial system industrial base; (3) $400,000,000 for the development and deployment of the Joint Fires Network and associated joint battle management capabilities; (4) $400,000,000 for the expansion of advanced command-and- control tools to combatant commands and military departments; (5) $100,000,000 for the development of shared secure facilities for the defense industrial base; (6) $50,000,000 for the creation of additional Defense Innovation Unit OnRamp Hubs; (7) $600,000,000 for the acceleration of Strategic Capabilities Office programs; (8) $650,000,000 for the expansion of Mission Capabilities office joint prototyping and experimentation activities for military innovation; (9) $500,000,000 for the accelerated development and integration of advanced 5G/6G technologies for military use; (10) $25,000,000 for testing of simultaneous transmit and receive technology for military spectrum agility; (11) $50,000,000 for the development, procurement, and integration of high-altitude stratospheric balloons for military use; (12) $120,000,000 for the development, procurement, and integration of long-endurance unmanned aerial systems for surveillance; (13) $40,000,000 for the development, procurement, and integration of alternative positioning and navigation technology to enable military operations in contested electromagnetic environments; (14) $750,000,000 for the acceleration of innovative military logistics and energy capability development and deployment; (15) $125,000,000 for the acceleration of development of small, portable modular nuclear reactors for military use; (16) $1,000,000,000 for the expansion of programs to accelerate the procurement and fielding of innovative technologies; (17) $90,000,000 for the development of reusable hypersonic technology for military strikes; (18) $2,000,000,000 for the expansion of Defense Innovation Unit scaling of commercial technology for military use; (19) $500,000,000 to prevent delays in delivery of attritable autonomous military capabilities; (20) $1,500,000,000 for the development, procurement, and integration of low-cost cruise missiles; (21) $124,000,000 for improvements to Test Resource Management Center artificial intelligence capabilities; (22) $145,000,000 for the development of artificial intelligence to enable one-way attack unmanned aerial systems and naval systems; (23) $250,000,000 for the development of the Test Resource Management Center digital test environment; (24) $250,000,000 for the advancement of the artificial intelligence ecosystem; (25) $250,000,000 for the expansion of Cyber Command artificial intelligence lines of effort; (26) $250,000,000 for the acceleration of the Quantum Benchmarking Initiative; (27) $1,000,000,000 for the expansion and acceleration of qualification activities and technical data management to enhance competition in defense industrial base; (28) $400,000,000 for the expansion of the defense manufacturing technology program; (29) $1,685,000,000 for military cryptographic modernization activities; (30) $90,000,000 for APEX Accelerators, the Mentor-Protege Program, and cybersecurity support to small non-traditional contractors; (31) $250,000,000 for the development, procurement, and integration of Air Force low-cost counter-air capabilities; (32) $10,000,000 for additional Air Force wargaming activities; and (33) $20,000,000 for the Office of Strategic Capital workforce. (b) Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $1,000,000,000 to the ``Department of Defense Credit Program Account'' to carry out the capital assistance program, including loans, loan guarantees, and technical assistance, established under section 149(e) of title 10, United States Code: Provided, That-- (1) such amounts are available to subsidize gross obligations for the principal amount of direct loans, and total loan principal, any part of which is to be guaranteed, not to exceed $100,000,000,000; and (2) such amounts are available to cover all costs and expenditures as provided under section 149(e)(5)(B) of title 10, United States Code. SEC. 20006. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR IMPROVING THE EFFICIENCY AND CYBERSECURITY OF THE DEPARTMENT OF DEFENSE. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $150,000,000 for business systems replacement to accelerate the audits of the financial statements of the Department of Defense pursuant to chapter 9A and section 2222 of title 10, United States Code; (2) $200,000,000 for the deployment of automation and artificial intelligence to accelerate the audits of the financial statements of the Department of Defense pursuant to chapter 9A and section 2222 of title 10, United States Code; (3) $10,000,000 for the improvement of the budgetary and programmatic infrastructure of the Office of the Secretary of Defense; and (4) $20,000,000 for defense cybersecurity programs of the Defense Advanced Research Projects Agency. SEC. 20007. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR AIR SUPERIORITY. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $3,150,000,000 to increase F-15EX aircraft production; (2) $361,220,000 to prevent the retirement of F-22 aircraft; (3) $127,460,000 to prevent the retirement of F-15E aircraft; (4) $187,000,000 to accelerate installation of F-16 electronic warfare capability; (5) $116,000,000 for C-17A Mobility Aircraft Connectivity; (6) $84,000,000 for KC-135 Mobility Aircraft Connectivity; (7) $440,000,000 to increase C-130J production; (8) $474,000,000 to increase EA-37B production; (9) $678,000,000 to accelerate the Collaborative Combat Aircraft program; (10) $400,000,000 to accelerate production of the F-47 aircraft; (11) $750,000,000 accelerate the FA/XX aircraft; (12) $100,000,000 for production of Advanced Aerial Sensors; (13) $160,000,000 to accelerate V-22 nacelle and reliability and safety improvements; (14) $100,000,000 to accelerate production of MQ-25 aircraft; (15) $270,000,000 for development, procurement, and integration of Marine Corps unmanned combat aircraft; (16) $96,000,000 for the procurement and integration of infrared search and track pods; (17) $50,000,000 for the procurement and integration of additional F-15EX conformal fuel tanks; (18) $600,000,000 for the development, procurement, and integration of Air Force long-range strike aircraft; and (19) $500,000,000 for the development, procurement, and integration of Navy long-range strike aircraft. SEC. 20008. ENHANCEMENT OF RESOURCES FOR NUCLEAR FORCES. (a) DOD Appropriations.--In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $2,500,000,000 for risk reduction activities for the Sentinel intercontinental ballistic missile program; (2) $4,500,000,000 only for expansion of production capacity of B-21 long-range bomber aircraft and the purchase of aircraft only available through the expansion of production capacity; [[Page S3890]] (3) $500,000,000 for improvements to the Minuteman III intercontinental ballistic missile system; (4) $100,000,000 for capability enhancements to intercontinental ballistic missile reentry vehicles; (5) $148,000,000 for the expansion of D5 missile motor production; (6) $400,000,000 to accelerate the development of Trident D5LE2 submarine-launched ballistic missiles; (7) $2,000,000,000 to accelerate the development, procurement, and integration of the nuclear-armed sea- launched cruise missile; (8) $62,000,000 to convert Ohio-class submarine tubes to accept additional missiles, not to be obligated before March 1, 2026; (9) $168,000,000 to accelerate the production of the Survivable Airborne Operations Center program; (10) $65,000,000 to accelerate the modernization of nuclear command, control, and communications; (11) $210,300,000 for the increased production of MH-139 helicopters; and (12) $150,000,000 to accelerate the development, procurement, and integration of military nuclear weapons delivery programs. (b) NNSA Appropriations.--In addition to amounts otherwise available, there are appropriated to the Administrator of the National Nuclear Security Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $200,000,000 to perform National Nuclear Security Administration Phase 1 studies pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (2) $540,000,000 to address deferred maintenance and repair needs of the National Nuclear Security Administration pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (3) $1,000,000,000 to accelerate the construction of National Nuclear Security Administration facilities pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (4) $400,000,000 to accelerate the development, procurement, and integration of the warhead for the nuclear- armed sea-launched cruise missile pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (5) $750,000,000 to accelerate primary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (6) $750,000,000 to accelerate secondary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (7) $120,000,000 to accelerate domestic uranium enrichment centrifuge deployment for defense purposes pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (8) $10,000,000 for National Nuclear Security Administration evaluation of spent fuel reprocessing technology; and (9) $115,000,000 for accelerating nuclear national security missions through artificial intelligence. SEC. 20009. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES TO IMPROVE CAPABILITIES OF UNITED STATES INDO- PACIFIC COMMAND. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $365,000,000 for Army exercises and operations in the Western Pacific area of operations; (2) $53,000,000 for Special Operations Command exercises and operations in the Western Pacific area of operations; (3) $47,000,000 for Marine Corps exercises and operations in Western Pacific area of operations; (4) $90,000,000 for Air Force exercises and operations in Western Pacific area of operations; (5) $532,600,000 for the Pacific Air Force biennial large- scale exercise; (6) $19,000,000 for the development of naval small craft capabilities; (7) $35,000,000 for military additive manufacturing capabilities in the United States Indo-Pacific Command area of operations west of the international dateline; (8) $450,000,000 for the development of airfields within the area of operations of United States Indo-Pacific Command; (9) $1,100,000,000 for development of infrastructure within the area of operations of United States Indo-Pacific Command; (10) $124,000,000 for mission networks for United States Indo-Pacific Command; (11) $100,000,000 for Air Force regionally based cluster pre-position base kits; (12) $115,000,000 for exploration and development of existing Arctic infrastructure; (13) $90,000,000 for the accelerated development of non- kinetic capabilities; (14) $20,000,000 for United States Indo-Pacific Command military exercises; (15) $143,000,000 for anti-submarine sonar arrays; (16) $30,000,000 for surveillance and reconnaissance capabilities for United States Africa Command; (17) $30,000,000 for surveillance and reconnaissance capabilities for United States Indo-Pacific Command; (18) $500,000,000 for the development, coordination, and deployment of economic competition effects within the Department of Defense; (19) $10,000,000 for the expansion of Department of Defense workforce for economic competition; (20) $1,000,000,000 for offensive cyber operations; (21) $500,000,000 for personnel and operations costs associated with forces assigned to United States Indo-Pacific Command; (22) $300,000,000 for the procurement of mesh network communications capabilities for Special Operations Command Pacific; (23) $850,000,000 for the replenishment of military articles; (24) $200,000,000 for acceleration of Guam Defense System program; (25) $68,000,000 for Space Force facilities improvements; (26) $150,000,000 for ground moving target indicator military satellites; (27) $528,000,000 for DARC and SILENTBARKER military space situational awareness programs; (28) $80,000,000 for Navy Operational Support Division; (29) $1,000,000,000 for the X-37B military spacecraft program; (30) $3,650,000,000 for the development, procurement, and integration of United States military satellites and the protection of United States military satellites. (31) $125,000,000 for the development, procurement, and integration of military space communications. (32) $350,000,000 for the development, procurement, and integration of military space command and control systems. SEC. 20010. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR IMPROVING THE READINESS OF THE DEPARTMENT OF DEFENSE. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $1,400,000,000 for a pilot program on OPN-8 maritime spares and repair rotable pool; (2) $700,000,000 for a pilot program on OPN-8 maritime spares and repair rotable pool for amphibious ships; (3) $2,118,000,000 for spares and repairs to keep Air Force aircraft mission capable; (4) $1,500,000,000 for Army depot modernization and capacity enhancement; (5) $2,000,000,000 for Navy depot and shipyard modernization and capacity enhancement; (6) $250,000,000 for Air Force depot modernization and capacity enhancement; (7) $1,640,000,000 for Special Operations Command equipment, readiness, and operations; (8) $500,000,000 for National Guard unit readiness; (9) $400,000,000 for Marine Corps readiness and capabilities; (10) $20,000,000 for upgrades to Marine Corps utility helicopters; (11) $310,000,000 for next-generation vertical lift, assault, and intra-theater aeromedical evacuation aircraft; (12) $75,000,000 for the procurement of anti-lock braking systems for Army wheeled transport vehicles; (13) $230,000,000 for the procurement of Army wheeled combat vehicles; (14) $63,000,000 for the development of advanced rotary- wing engines; (15) $241,000,000 for the development, procurement, and integration of Marine Corps amphibious vehicles; (16) $250,000,000 for the procurement of Army tracked combat transport vehicles; (17) $98,000,000 for additional Army light rotary-wing capabilities; (18) $1,500,000,000 for increased depot maintenance and shipyard maintenance activities; (19) $2,500,000,000 for Air Force facilities sustainment, restoration, and modernization; (20) $92,500,000 for the completion of Robotic Combat Vehicle prototyping; (21) $125,000,000 for Army operations; (22) $10,000,000 for the Air Force Concepts, Development, and Management Office; and (23) $320,000,000 for Joint Special Operations Command. SEC. 20011. IMPROVING DEPARTMENT OF DEFENSE BORDER SUPPORT AND COUNTER-DRUG MISSIONS. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $1,000,000,000 for the deployment of military personnel in support of border operations, operations and maintenance activities in support of border operations, counter-narcotics and counter-transnational criminal organization mission support, the operation of national defense areas and construction in national defense areas, and the temporary detention of migrants on Department of Defense installations, in accordance with chapter 15 of title 10, United States Code. SEC. 20012. DEPARTMENT OF DEFENSE OVERSIGHT. In addition to amounts otherwise available, there is appropriated to the Inspector General of the Department of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available through September 30, 2029, to monitor Department of Defense activities for which funding is appropriated in this title, including-- [[Page S3891]] (1) programs with mutual technological dependencies; (2) programs with related data management and data ownership considerations; and (3) programs particularly vulnerable to supply chain disruptions and long lead time components. SEC. 20013. MILITARY CONSTRUCTION PROJECTS AUTHORIZED. (a) Authorization of Appropriations.--Funds are hereby authorized to be appropriated for military construction, land acquisition, and military family housing functions of each military department (as defined in section 101(a) of title 10, United States Code) as specified in this title. (b) Spending Plan.--Not later than 30 days after the date of the enactment of this title, the Secretary of each military department shall submit to the Committees on Armed Services of the Senate and House of Representatives a detailed spending plan by project for all funds made available by this title to be expended on military construction projects. SEC. 20014. MULTI-YEAR OPERATIONAL PLAN. (a) In General.--Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense and the Administrator of the National Nuclear Security Administration shall submit to the Committees on Armed Services of the Senate and the House of Representatives a plan detailing how the funds appropriated to the Department of Defense and the National Nuclear Security Administration under the Act will be spent over the four-year period ending with fiscal year 2029. (b) Quarterly Updates.-- (1) In general.--Not later than the last day of each calendar quarter beginning during the applicable period, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the plan established under subsection (a), including-- (A) any updates to the plan; (B) progress made in implementing the plan; and (C) any changes in circumstances or challenges in implementing the plan. (2) Applicable period.--For purposes of paragraph (1), the applicable period is the period beginning one year after the date the plan required under subsection (a) is due and ending on September 30, 2029. (c) Reduction in Appropriation.-- (1) In general.--In the case of any failure to submit a plan required under subsection (a) or a report required under subsection (b) by the date specified in paragraph (2), the amounts made available to the Department of Defense under this Act shall be reduced by $100,000 for each day after such specified date that the report has not been submitted to Congress. (2) Specified date.--For purposes of the reduction in appropriations under paragraph (1), the specified date is the date that is 60 days after the date the plan or report is required to be submitted under subsection (a) or (b), as the case may be. TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS SEC. 30001. FUNDING CAP FOR THE BUREAU OF CONSUMER FINANCIAL PROTECTION. Section 1017(a)(2)(A)(iii) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497(a)(2)(A)(iii)) is amended by striking ``12'' and inserting ``6.5''. SEC. 30002. RESCISSION OF FUNDS FOR GREEN AND RESILIENT RETROFIT PROGRAM FOR MULTIFAMILY HOUSING. The unobligated balances of amounts made available under section 30002(a) of the Act entitled ``An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14'', approved August 16, 2022 (Public Law 117-169; 136 Stat. 2027) are rescinded. SEC. 30003. SECURITIES AND EXCHANGE COMMISSION RESERVE FUND. (a) In General.--Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d) is amended-- (1) by striking subsection (i); and (2) by redesignating subsections (j) and (k) as subsections (i) and (j), respectively. (b) Technical and Conforming Amendment.--Section 21F(g)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 78u- 6(g)(2)) is amended to read as follows: ``(a) Use of Fund.--The Fund shall be available to the Commission, without further appropriation or fiscal year limitation, for paying awards to whistleblowers as provided in subsection (b).''. (c) Transition Provision.--During the period beginning on the date of enactment of this Act and ending on October 1, 2025, the Securities and Exchange Commission may expend amounts in the Securities and Exchange Commission Reserve Fund that were obligated before the date of enactment of this Act for any program, project, or activity that is ongoing (as of the day before the date of enactment of this Act) in accordance with subsection (i) of section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d), as in effect on the day before the date of enactment of this Act. (d) Transfer of Remaining Amounts.--Effective on October 1, 2025, the obligated and unobligated balances of amounts in the Securities and Exchange Commission Reserve Fund shall be transferred to the general fund of the Treasury. (e) Closing of Account.--For the purposes of section 1555 of title 31, United States Code, the Securities and Exchange Commission Reserve Fund shall be considered closed, and thereafter shall not be available for obligation or expenditure for any purpose, upon execution of the transfer required under subsection (d). SEC. 30004. APPROPRIATIONS FOR DEFENSE PRODUCTION ACT. In addition to amounts otherwise available, there is appropriated for fiscal year 2025, out of amounts not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2027, to carry out the Defense Production Act (50 U.S.C. 4501 et seq.). TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION SEC. 40001. COAST GUARD MISSION READINESS. (a) In General.--Chapter 11 of title 14, United States Code, is amended by adding at the end the following: ``Subchapter V--Coast Guard Mission Readiness ``Sec. 1181. Special appropriations ``In addition to amounts otherwise available, there is appropriated to the Coast Guard for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $24,593,500,000, to remain available until September 30, 2029, notwithstanding paragraphs (1) and (2) of section 1105(a) and sections 1131, 1132, 1133, and 1156, to use expedited processes to procure or acquire new operational assets and systems, to maintain existing assets and systems, to design, construct, plan, engineer, and improve necessary shore infrastructure, and to enhance operational resilience for monitoring, search and rescue, interdiction, hardening of maritime approaches, and navigational safety, of which-- ``(1) $1,142,500,000 is provided for procurement and acquisition of fixed-wing aircraft, equipment related to such aircraft and training simulators and program management for such aircraft, to provide for security of the maritime border; ``(2) $2,283,000,000 is provided for procurement and acquisition of rotary-wing aircraft, equipment related to such aircraft and training simulators and program management for such aircraft, to provide for security of the maritime border; ``(3) $266,000,000 is provided for procurement and acquisition of long-range unmanned aircraft and base stations, equipment related to such aircraft and base stations, and program management for such aircraft and base stations, to provide for security of the maritime border; ``(4) $4,300,000,000 is provided for procurement of Offshore Patrol Cutters, equipment related to such cutters, and program management for such cutters, to provide operational presence and security of the maritime border and for interdiction of persons and controlled substances; ``(5) $1,000,000,000 is provided for procurement of Fast Response Cutters, equipment related to such cutters, and program management for such cutters, to provide operational presence and security of the maritime border and for interdiction of persons and controlled substances; ``(6) $4,300,000,000 is provided for procurement of Polar Security Cutters, equipment related to such cutters, and program management for such cutters, to ensure timely presence of the Coast Guard in the Arctic and Antarctic regions; ``(7) $3,500,000,000 is provided for procurement of Arctic Security Cutters, equipment related to such cutters, and program management for such cutters, to ensure timely presence of the Coast Guard in the Arctic and Antarctic regions; ``(8) $816,000,000 is provided for procurement of light and medium icebreaking cutters, and equipment relating to such cutters, from shipyards that have demonstrated success in the cost-effective application of design standards and in delivering, on schedule and within budget, vessels of a size and tonnage that are not less than the size and tonnage of the cutters described in this paragraph, and for program management for such cutters, to expand domestic icebreaking capacity; ``(9) $162,000,000 is provided for procurement of Waterways Commerce Cutters, equipment related to such cutters, and program management for such cutters, to support aids to navigation, waterways and coastal security, and search and rescue in inland waterways; ``(10) $4,379,000,000 is provided for design, planning, engineering, recapitalization, construction, rebuilding, and improvement of, and program management for, shore facilities, of which-- ``(A) $425,000,000 is provided for design, planning, engineering, construction of, and program management for-- ``(i) the enlisted boot camp barracks and multi-use training center; and ``(ii) other related facilities at the enlisted boot camp; ``(B) $500,000,000 is provided for-- ``(i) construction, improvement, and dredging at the Coast Guard Yard; and ``(ii) acquisition of a floating drydock for the Coast Guard Yard; ``(C) not more than $2,729,500,000 is provided for homeports and hangars for cutters and aircraft for which funds are appropriated under paragraph (1) through (9); and ``(D) $300,000,000 is provided for homeporting of the existing polar icebreaker commissioned into service in 2025; ``(11) $2,200,000,000 is provided for aviation, cutter, and shore facility depot maintenance and maintenance of command, control, communication, computer, and cyber assets; ``(12) $170,000,000 is provided for improving maritime domain awareness on the maritime border, at United States ports, at land-based facilities and in the cyber domain; and [[Page S3892]] ``(13) $75,000,000 is provided to contract the services of, acquire, or procure autonomous maritime systems.''. (b) Technical and Conforming Amendment.--The analysis for chapter 11 of title 14, United States Code, is amended by adding at the end the following: ``subchapter v--coast guard mission readiness ``1181. Special appropriations.''. SEC. 40002. SPECTRUM AUCTIONS. (a) Definitions.--In this section: (1) Assistant secretary.--The term ``Assistant Secretary'' means the Assistant Secretary of Commerce for Communications and Information. (2) Commission.--The term ``Commission'' means the Federal Communications Commission. (3) Covered band.--The term ``covered band''-- (A) except as provided in subparagraph (B), means the band of frequencies between 1.3 gigahertz and 10.5 gigahertz; and (B) does not include-- (i) the band of frequencies between 3.1 gigahertz and 3.45 gigahertz for purposes of auction, reallocation, modification, or withdrawal; or (ii) the band of frequencies between 7.4 gigahertz and 8.4 gigahertz for purposes of auction, reallocation, modification, or withdrawal. (4) Full-power commercial licensed use cases.--The term ``full-power commercial licensed use cases'' means flexible use wireless broadband services with base station power levels sufficient for high-power, high-density, and wide-area commercial mobile services, consistent with the service rules under part 27 of title 47, Code of Federal Regulations, or any successor regulations, for wireless broadband deployments throughout the covered band. (b) General Auction Authority.-- (1) Amendment.--Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)) is amended by striking ``grant a license or permit under this subsection shall expire March 9, 2023'' and all that follows and inserting the following: "complete a system of competitive bidding under this subsection shall expire September 30, 2034, except that, with respect to the electromagnetic spectrum-- `` ``(A) between the frequencies of 3.1 gigahertz and 3.45 gigahertz, such authority shall not apply; and ``(B) between the frequencies of 7.4 gigahertz and 8.4 gigahertz, such authority shall not apply.''. (2) Spectrum auctions.--The Commission shall grant licenses through systems of competitive bidding, before the expiration of the general auction authority of the Commission under section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by paragraph (1) of this subsection, for not less than 300 megahertz, including by completing a system of competitive bidding not later than 2 years after the date of enactment of this Act for not less than 100 megahertz in the band between 3.98 gigahertz and 4.2 gigahertz. (c) Identification for Reallocation.-- (1) In general.--The Assistant Secretary, in consultation with the Commission, shall identify 500 megahertz of frequencies in the covered band for reallocation to non- Federal use, shared Federal and non-Federal use, or a combination thereof, for full-power commercial licensed use cases, that-- (A) as of the date of enactment of this Act, are allocated for Federal use; and (B) shall be in addition to the 300 megahertz of frequencies for which the Commission grants licenses under subsection (b)(2). (2) Schedule.--The Assistant Secretary shall identify the frequencies under paragraph (1) according to the following schedule: (A) Not later than 2 years after the date of enactment of this Act, the Assistant Secretary shall identify not less than 200 megahertz of frequencies within the covered band. (B) Not later than 4 years after the date of enactment of this Act, the Assistant Secretary shall identify any remaining bandwidth required to be identified under paragraph (1). (3) Required analysis.-- (A) In general.--In determining under paragraph (1) which specific frequencies within the covered band to reallocate, the Assistant Secretary shall determine the feasibility of the reallocation of frequencies. (B) Requirements.--In conducting the analysis under subparagraph (A), the Assistant Secretary shall assess net revenue potential, relocation or sharing costs, as applicable, and the feasibility of reallocating specific frequencies, with the goal of identifying the best approach to maximize net proceeds of systems of competitive bidding for the Treasury, consistent with section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)). (d) Auctions.--The Commission shall grant licenses for the frequencies identified for reallocation under subsection (c) through systems of competitive bidding in accordance with the following schedule: (1) Not later than 4 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for not less than 200 megahertz of the frequencies. (2) Not later than 8 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for any frequencies identified under subsection (c) that remain to be auctioned after compliance with paragraph (1) of this subsection. (e) Limitation.--The President shall modify or withdraw any frequency proposed for reallocation under this section not later than 60 days before the commencement of a system of competitive bidding scheduled by the Commission with respect to that frequency, if the President determines that such modification or withdrawal is necessary to protect the national security of the United States. (f) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Department of Commerce for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available through September 30, 2034, to provide additional support to the Assistant Secretary to-- (1) conduct a timely spectrum analysis of the bands of frequencies-- (A) between 2.7 gigahertz and 2.9 gigahertz; (B) between 4.4 gigahertz and 4.9 gigahertz; and (C) between 7.25 gigahertz and 7.4 gigahertz; and (2) publish a biennial report, with the last report to be published not later than June 30, 2034, on the value of all spectrum used by Federal entities (as defined in section 113(l) of the National Telecommunications and Information Administration Organization Act (47 U.S.C. 923(l))), that assesses the value of bands of frequencies in increments of not more than 100 megahertz. SEC. 40003. AIR TRAFFIC CONTROL IMPROVEMENTS. (a) In General.--For the purpose of the acquisition, construction, sustainment, and improvement of facilities and equipment necessary to improve or maintain aviation safety, in addition to amounts otherwise made available, there is appropriated to the Administrator of the Federal Aviation Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $4,750,000,000 for telecommunications infrastructure modernization and systems upgrades; (2) $3,000,000,000 for radar systems replacement; (3) $500,000,000 for runway safety technologies, runway lighting systems, airport surface surveillance technologies, and to carry out section 347 of the FAA Reauthorization Act of 2024; (4) $300,000,000 for Enterprise Information Display Systems; (5) $80,000,000 to acquire and install not less than 50 Automated Weather Observing Systems, to acquire and install not less than 60 Visual Weather Observing Systems, to acquire and install not less than 64 weather camera sites, and to acquire and install weather stations; (6) $40,000,000 to carry out section 44745 of title 49, United States Code, (except for activities described in paragraph (5)); (7) $1,900,000,000 for necessary actions to construct a new air route traffic control center (in this subsection referred to as ``ARTCC''): Provided, That not more than 2 percent of such amount is used for planning or administrative purposes: Provided further, That at least 3 existing ARTCCs are divested and integrated into the newly constructed ARTCC; (8) $100,000,000 to conduct an ARTCC Realignment and Consolidation Effort under which at least 10 existing ARTCCs are closed or consolidated to facilitate recapitalization of ARTCC facilities owned and operated by the Federal Aviation Administration; (9) $1,000,000,000 to support recapitalization and consolidation of terminal radar approach control facilities (in this subsection referred to as ``TRACONs''), the analysis and identification of TRACONs for divestment, consolidation, or integration, planning, site selection, facility acquisition, and transition activities and other appropriate activities for carrying out such divestment, consolidation, or integration, and the establishment of brand new TRACONs; (10) $350,000,000 for unstaffed infrastructure sustainment and replacement; (11) $50,000,000 to carry out section 961 of the FAA Reauthorization Act of 2024; (12) $300,000,000 to carry out section 619 of the FAA Reauthorization Act of 2024; (13) $50,000,000 to carry out section 621 of the FAA Reauthorization Act of 2024 and to deploy remote tower technology at untowered airports; and (14) $100,000,000 for air traffic controller advanced training technologies. (b) Quarterly Reporting.--Not later than 180 days after the date of enactment of this Act, and every 90 days thereafter, the Administrator of the Federal Aviation Administration shall submit to Congress a report that describes any expenditures under this section. SEC. 40004. SPACE LAUNCH AND REENTRY LICENSING AND PERMITTING USER FEES. (a) In General.--Chapter 509 of title 51, United States Code, is amended by adding at the end the following new section: ``Sec. 50924. Space launch and reentry licensing and permitting user fees ``(a) Fees.-- ``(1) In general.--The Secretary of Transportation shall impose a fee, which shall be deposited in the account established under [[Page S3893]] subsection (b), on each launch or reentry carried out under a license or permit issued under section 50904 during 2026 or a subsequent year, in an amount equal to the lesser of-- ``(A) the amount specified in paragraph (2) for the year involved per pound of the weight of the payload; or ``(B) the amount specified in paragraph (3) for the year involved. ``(2) Paragraph (2) specified amount.--The amount specified in this paragraph is-- ``(A) for 2026, $0.25; ``(B) for 2027, $0.35; ``(C) for 2028, $0.50; ``(D) for 2029, $0.60; ``(E) for 2030, $0.75; ``(F) for 2031, $1; ``(G) for 2032, $1.25; ``(H) for 2033, $1.50; and ``(I) for 2034 and each subsequent year, the amount specified in this paragraph for the previous year increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) over the previous year. ``(3) Paragraph (3) specified amount.--The amount specified in this paragraph is-- ``(A) for 2026, $30,000; ``(B) for 2027, $40,000; ``(C) for 2028, $50,000; ``(D) for 2029, $75,000; ``(E) for 2030, $100,000; ``(F) for 2031, $125,000; ``(G) for 2032, $170,000; ``(H) for 2033, $200,000; and ``(I) for 2034 and each subsequent year, the amount specified in this paragraph for the previous year increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) over the previous year. ``(b) Office of Commercial Space Transportation Launch and Reentry Licensing and Permitting Fund.--There is established in the Treasury of the United States a separate account, which shall be known as the `Office of Commercial Space Transportation Launch and Reentry Licensing and Permitting Fund', for the purposes of expenses of the Office of Commercial Space Transportation of the Federal Aviation Administration and to carry out section 630(b) of the FAA Reauthorization Act of 2024. 70 percent of the amounts deposited into the fund shall be available for such purposes and shall be available without further appropriation and without fiscal year limitation.''. (b) Clerical Amendment.--The table of sections for chapter 509 of title 51, United States Code, is amended by inserting after the item relating to section 50923 the following: ``50924. Space launch and reentry licensing and permitting user fees.''. SEC. 40005. MARS MISSIONS, ARTEMIS MISSIONS, AND MOON TO MARS PROGRAM. (a) In General.--Chapter 203 of title 51, United States Code, is amended by adding at the end the following: ``Sec. 20306. Special appropriations for Mars missions, Artemis missions, and Moon to Mars program ``(a) In General.--In addition to amounts otherwise available, there is appropriated to the Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $9,995,000,000, to remain available until September 30, 2032, to use as follows: ``(1) $700,000,000, to be obligated not later than fiscal year 2026, for the procurement, using a competitively bid, firm fixed-price contract with a United States commercial provider (as defined in section 50101(7)), of a high- performance Mars telecommunications orbiter-- ``(A) that-- ``(i) is capable of providing robust, continuous communications for-- ``(I) a Mars sample return mission, as described in section 432(3)(C) of the National Aeronautics and Space Administration Transition Authorization Act of 2017 (51 U.S.C. 20302 note; Public Law 115-10); and ``(II) future Mars surface, orbital, and human exploration missions; ``(ii) supports autonomous operations, onboard processing, and extended mission duration capabilities; and ``(iii) is selected from among the commercial proposals that-- ``(I) received funding from the Administration in fiscal year 2024 or 2025 for commercial design studies for Mars Sample Return; and ``(II) proposed a separate, independently launched Mars telecommunication orbiter supporting an end-to-end Mars sample return mission; and ``(B) which shall be delivered to the Administration not later than December 31, 2028. ``(2) $2,600,000,000 to meet the requirements of section 20302(a) using the program of record known, as of the date of the enactment of this section, as `Gateway', and as described in section 10811(b)(2)(B)(iv) of the National Aeronautics and Space Administration Authorization Act of 2022 (51 U.S.C. 20302 note; Public Law 117-167), of which not less than $750,000,000 shall be obligated for each of fiscal years 2026, 2027, and 2028. ``(3) $4,100,000,000 for expenses related to meeting the requirements of section 10812 of the National Aeronautics and Space Administration Authorization Act of 2022 (51 U.S.C. 20301; Public Law 117-167) for the procurement, transportation, integration, operation, and other necessary expenses of the Space Launch System for Artemis Missions IV and V, of which not less than $1,025,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. ``(4) $20,000,000 for expenses related to the continued procurement of the multi-purpose crew vehicle described in section 303 of the National Aeronautics and Space Administration Authorization Act of 2010 (42 U.S.C. 18323), known as the `Orion', for use with the Space Launch System on the Artemis IV Mission and reuse in subsequent Artemis Missions, of which not less than $20,000,000 shall be obligated not later than fiscal year 2026. ``(5) $1,250,000,000 for expenses related to the operation of the International Space Station and for the purpose of meeting the requirement under section 503(a) of the National Aeronautics and Space Administration Authorization Act of 2010 (42 U.S.C. 18353(a)), of which not less than $250,000,000 shall be obligated for such expenses for each of fiscal years 2025, 2026, 2027, 2028, and 2029. ``(6) $1,000,000,000 for infrastructure improvements at the manned spaceflight centers of the Administration, of which not less than-- ``(A) $120,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 12641 (53 Fed. Reg. 18816; relating to designating certain facilities of the National Aeronautics and Space Administration in the State of Mississippi as the John C. Stennis Space Center); ``(B) $250,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 11129 (28 Fed. Reg. 12787; relating to designating certain facilities of the National Aeronautics and Space Administration and of the Department of Defense, in the State of Florida, as the John F. Kennedy Space Center); ``(C) $300,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in the Joint Resolution entitled `Joint Resolution to designate the Manned Spacecraft Center in Houston, Texas, as the ``Lyndon B. Johnson Space Center'' in honor of the late President', approved February 17, 1973 (Public Law 93-8; 87 Stat. 7); ``(D) $100,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 10870 (25 Fed. Reg. 2197; relating to designating the facilities of the National Aeronautics and Space Administration at Huntsville, Alabama, as the George C. Marshall Space Flight Center); ``(E) $30,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the Michoud Assembly Facility in New Orleans, Louisiana; and ``(F) $85,000,000 shall be obligated to carry out subsection (b), of which not less than $5,000,000 shall be obligated for the transportation of the space vehicle described in that subsection, with the remainder transferred not later than the date that is 18 months after the date of the enactment of this section to the entity designated under that subsection, for the purpose of construction of a facility to house the space vehicle referred to in that subsection. ``(7) $325,000,000 to fulfill contract number 80JSC024CA002 issued by the National Aeronautics and Space Administration on June 26, 2024. ``(b) Space Vehicle Transfer.-- ``(1) In general.--Not later than 30 days after the date of the enactment of this section, the Administrator shall identify a space vehicle described in paragraph (2) to be-- ``(A) transferred to a field center of the Administration that is involved in the administration of the Commercial Crew Program (as described in section 302 of the National Aeronautics and Space Administration Transition Authorization Act of 2017 (51 U.S.C. 50111 note; Public Law 115-10)); and ``(B) placed on public exhibition at an entity within the Metropolitan Statistical Area where such center is located. ``(2) Space vehicle described.--A space vehicle described in this paragraph is a vessel that-- ``(A) has flown into space; ``(B) has carried astronauts; and ``(C) is selected with the concurrence of an entity designated by the Administrator. ``(3) Transfer.-- ``(A) In general.--Not later than 18 months after the date of the enactment of this section, the space vehicle identified under paragraph (1) shall be transferred to an entity designated by the Administrator. ``(B) Title.--Not later than 1 year after the date on which a space vehicle is identified under paragraph (1), the Federal Government shall, as applicable, transfer the title to the space vehicle to the entity designated by the Administrator. ``(C) Responsibility.--The transfer under this paragraph shall be carried out under the Administrator or acting Administrator. ``(c) Obligation of Funds.--Funds appropriated under subsection (a) shall be obligated as follows: ``(1) Not less than 50 percent of the total funds in subsection (a) shall be obligated not later than September 30, 2028. [[Page S3894]] ``(2) 100 percent of funds shall be obligated not later than September 30, 2029. ``(3) All associated outlays shall occur not later than September 30, 2034.''. (b) Clerical Amendment.--The table of sections for chapter 203 of title 51, United States Code, is amended by adding at the end the following: ``20306. Special appropriations for Mars missions, Artemis missions, and Moon to Mars program.''. SEC. 40006. CORPORATE AVERAGE FUEL ECONOMY CIVIL PENALTIES. (a) In General.--Section 32912 of title 49, United States Code, is amended-- (1) in subsection (b), in the matter preceding paragraph (1), by striking ``$5'' and inserting ``$0.00''; and (2) in subsection (c)(1)(B), by striking ``$10'' and inserting ``$0.00''. (b) Effect; Applicability.--The amendments made by subsection (a) shall-- (1) take effect on the date of enactment of this section; and (2) apply to all model years of a manufacturer for which the Secretary of Transportation has not provided a notification pursuant to section 32903(b)(2)(B) of title 49, United States Code, specifying the penalty due for the average fuel economy of that manufacturer being less than the applicable standard prescribed under section 32902 of that title. SEC. 40007. PAYMENTS FOR LEASE OF METROPOLITAN WASHINGTON AIRPORTS. Section 49104(b) of title 49, United States Code, is amended to read as follows: ``(b) Payments.-- ``(1) In general.--Subject to paragraph (2), under the lease, the Airports Authority must pay to the general fund of the Treasury annually an amount, computed using the GNP Price Deflator-- ``(A) during the period from 1987 to 2026, equal to $3,000,000 in 1987 dollars; and ``(B) for 2027 and subsequent years, equal to $15,000,000 in 2027 dollars. ``(2) Renegotiation.--The Secretary and the Airports Authority shall renegotiate the level of lease payments at least once every 10 years to ensure that in no year the amount specified in paragraph (1)(B) is less than $15,000,000 in 2027 dollars.''. SEC. 40008. RESCISSION OF CERTAIN AMOUNTS FOR THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION. Any unobligated balances of amounts appropriated or otherwise made available by sections 40001, 40002, 40003, and 40004 of Public Law 117-169 (136 Stat. 2028) are hereby rescinded. SEC. 40009. REDUCTION IN ANNUAL TRANSFERS TO TRAVEL PROMOTION FUND. Subsection (d)(2)(B) of the Travel Promotion Act of 2009 (22 U.S.C. 2131(d)(2)(B)) is amended by striking ``$100,000,000'' and inserting ``$20,000,000''. SEC. 40010. TREATMENT OF UNOBLIGATED FUNDS FOR ALTERNATIVE FUEL AND LOW-EMISSION AVIATION TECHNOLOGY. Out of the amounts made available by section 40007(a) of title IV of Public Law 117-169 (49 U.S.C. 44504 note), any unobligated balances of such amounts are hereby rescinded. SEC. 40011. RESCISSION OF AMOUNTS APPROPRIATED TO PUBLIC WIRELESS SUPPLY CHAIN INNOVATION FUND. Of the unobligated balances of amounts made available under section 106(a) of the CHIPS Act of 2022 (Public Law 117-167; 136 Stat. 1392), $850,000,000 are permanently rescinded. SEC. 40012. SUPPORT FOR ARTIFICIAL INTELLIGENCE UNDER THE BROADBAND EQUITY, ACCESS, AND DEPLOYMENT PROGRAM. (a) In General.--Section 60102 of division F of Public Law 117-58 (47 U.S.C. 1702) is amended-- (1) in subsection (a)(2)-- (A) by redesignating subparagraphs (B) through (N) as subparagraphs (F) through (R), respectively; (B) by redesignating subparagraph (A) as subparagraph (D); (C) by inserting before subparagraph (D), as so redesignated, the following: ``(A) Artificial intelligence.--The term `artificial intelligence' has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401). ``(B) Artificial intelligence model.--The term `artificial intelligence model' means a software component of an information system that implements artificial intelligence technology and uses computational, statistical, or machine- learning techniques to produce outputs from a defined set of inputs. ``(C) Artificial intelligence system.--The term `artificial intelligence system' means any data system, software, hardware, application, tool, or utility that operates, in whole or in part, using artificial intelligence.''; (D) by inserting after subparagraph (D), as so redesignated, the following: ``(E) Automated decision system.--The term `automated decision system' means any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues a simplified output, including a score, classification, or recommendation, to materially influence or replace human decision making.''; and (E) by striking subparagraph (O), as so redesignated, and inserting the following: ``(O) Project.--The term `project' means an undertaking by a subgrantee under this section to construct and deploy infrastructure for the provision of-- ``(i) broadband service; or ``(ii) artificial intelligence models, artificial intelligence systems, or automated decision systems.''; (2) in subsection (b), by adding at the end the following: ``(5) Appropriation for fiscal year 2025.-- ``(A) In general.--In addition to any amounts otherwise appropriated to the Program, there is appropriated to the Assistant Secretary for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended, to carry out the Program. ``(B) Set-aside for artificial intelligence infrastructure master services agreements.--Of the amount appropriated under subparagraph (A), $25,000,000 shall be used by the Assistant Secretary for the purpose of negotiating master services agreements on behalf of subgrantees of an eligible entity or political subdivision to enable access to quantity purchasing and licensing discounts for the construction, acquisition, and deployment of infrastructure for the provision of artificial intelligence models, artificial intelligence systems, or automated decision systems funded under this section.''; (3) in subsection (f)-- (A) in paragraph (5), by striking ``and'' at the end; (B) by redesignating paragraph (6) as paragraph (7); and (C) by inserting after paragraph (5) the following: ``(6) the construction and deployment of infrastructure for the provision of artificial intelligence models, artificial intelligence systems, or automated decision systems; and''; (4) in subsection (g)(3), by striking subparagraph (B) and inserting the following: ``(B) may, in addition to other authority under applicable law, deobligate grant funds awarded to an eligible entity that-- ``(i) violates paragraph (2); ``(ii) demonstrates an insufficient level of performance, or wasteful or fraudulent spending, as defined in advance by the Assistant Secretary; or ``(iii) if obligated any funds made available under subsection (b)(5)(A), is not in compliance with subsection (q) or (r); and''; (5) in subsection (j)(1)-- (A) in subparagraph (A)-- (i) in clause (iii), by striking ``and'' at the end; (ii) by redesignating clause (iv) as clause (v); and (iii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r); and''; (B) in subparagraph (B)-- (i) in clause (iii), by striking ``and'' at the end; (ii) by redesignating clause (iv) as clause (v); and (iii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r); and''; and (C) in subparagraph (C)-- (i) by redesignating clauses (iv) and (v) as clauses (v) and (vi), respectively; and (ii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r);''; and (6) by adding at the end the following: ``(p) Receipt of Funds Conditioned on Temporary Pause and Efficiencies.--On and after the date of enactment of this subsection, no funds made available under subsection (b)(5)(A) may be obligated to an eligible entity or a political subdivision thereof that is not in compliance with subsections (q) and (r). ``(q) Temporary Pause.-- ``(1) In general.--Except as provided in paragraph (2), no eligible entity or political subdivision thereof to which funds made available under subsection (b)(5)(A) are obligated on or after the date of enactment of this subsection may enforce, during the 10-year period beginning on the date of enactment of this subsection, any law or regulation of that eligible entity or a political subdivision thereof limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce. ``(2) Rule of construction.--Paragraph (1) may not be construed to prohibit the enforcement of any law or regulation-- ``(A) the primary purpose and effect of which is to-- ``(i) remove legal impediments to, or facilitate the deployment or operation of, an artificial intelligence model, artificial intelligence system, or automated decision system; or ``(ii) streamline licensing, permitting, routing, zoning, procurement, or reporting procedures in a manner that facilitates the adoption of artificial intelligence models, artificial intelligence systems, or automated decision systems; or [[Page S3895]] ``(B) that does not impose any substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirement on artificial intelligence models, artificial intelligence systems, or automated decision systems unless that requirement is imposed under-- ``(i) Federal law; or ``(ii) a generally applicable law, such as a body of common law; and ``(C) that does not impose a fee or bond unless-- ``(i) the fee or bond is reasonable and cost-based; and ``(ii) under the fee or bond, artificial intelligence models, artificial intelligence systems, and automated decision systems are treated in the same manner as other models and systems that perform comparable functions. ``(r) Master Services Agreements.--An eligible entity, or political subdivision thereof, to which funds made available under subsection (b)(5)(A) are obligated on or after the date of enactment of this subsection shall certify to the Assistant Secretary either that-- ``(1) each subgrantee of the eligible entity or political subdivision is utilizing applicable master services agreements negotiated using amounts made available under subsection (b)(5)(B); or ``(2) each contract, license, purchase order, or services agreement entered into, procured, or made by a subgrantee of the eligible entity or political subdivision for purposes described in subsection (b)(5)(B) is at least as cost- effective as the terms of executable master services agreements, as applicable, negotiated by the Assistant Secretary using amounts made available under subsection (b)(5)(B).''. (b) Technical and Conforming Amendments.--Section 60102(a)(1) of division F of Public Law 117-58 (47 U.S.C. 1702(a)(1)) is amended-- (1) in subparagraph (B), by striking ``a project'' and inserting ``a project described in subsection (a)(2)(O)(i)''; and (2) in subparagraph (D), by striking ``a project'' and inserting ``a project described in subsection (a)(2)(O)(i)''. TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES Subtitle A--Oil and Gas Leasing SEC. 50101. ONSHORE OIL AND GAS LEASING. (a) Repeal of Inflation Reduction Act Provisions.-- (1) Onshore oil and gas royalty rates.--Subsection (a) of section 50262 of Public Law 117-169 (136 Stat. 2056) is repealed, and any provision of law amended or repealed by that subsection is restored or revived as if that subsection had not been enacted into law. (2) Noncompetitive leasing.--Subsection (e) of section 50262 of Public Law 117-169 (136 Stat. 2057) is repealed, and any provision of law amended or repealed by that subsection is restored or revived as if that subsection had not been enacted into law. (b) Requirement to Immediately Resume Onshore Oil and Gas Lease Sales.-- (1) In general.--The Secretary of the Interior shall immediately resume quarterly onshore oil and gas lease sales in compliance with the Mineral Leasing Act (30 U.S.C. 181 et seq.). (2) Requirement.--The Secretary of the Interior shall ensure-- (A) that any oil and gas lease sale required under paragraph (1) is conducted immediately on completion of all applicable scoping, public comment, and environmental analysis requirements under the Mineral Leasing Act (30 U.S.C. 181 et seq.) and the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and (B) that the processes described in subparagraph (A) are conducted in a timely manner to ensure compliance with subsection (b)(1). (3) Lease of oil and gas lands.--Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C. 226(b)(1)(A)), as amended by subsection (a), is amended by inserting ``For purposes of the previous sentence, the term `eligible lands' means all lands that are subject to leasing under this Act and are not excluded from leasing by a statutory prohibition, and the term `available', with respect to eligible lands, means those lands that have been designated as open for leasing under a land use plan developed under section 202 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712) and that have been nominated for leasing through the submission of an expression of interest, are subject to drainage in the absence of leasing, or are otherwise designated as available pursuant to regulations adopted by the Secretary.'' after ``sales are necessary.''. (c) Quarterly Lease Sales.-- (1) In general.--In accordance with the Mineral Leasing Act (30 U.S.C. 181 et seq.), each fiscal year, the Secretary of the Interior shall conduct a minimum of 4 oil and gas lease sales of available land in each of the following States: (A) Wyoming. (B) New Mexico. (C) Colorado. (D) Utah. (E) Montana. (F) North Dakota. (G) Oklahoma. (H) Nevada. (I) Alaska. (2) Requirement.--In conducting a lease sale under paragraph (1) in a State described in that paragraph, the Secretary of the Interior-- (A) shall offer not less than 50 percent of available parcels nominated for oil and gas development under the applicable resource management plan in effect for relevant Bureau of Land Management resource management areas within the applicable State; and (B) shall not restrict the parcels offered to 1 Bureau of Land Management field office within the applicable State unless all nominated parcels are located within the same Bureau of Land Management field office. (3) Replacement sales.--The Secretary of the Interior shall conduct a replacement sale during the same fiscal year if-- (A) a lease sale under paragraph (1) is canceled, delayed, or deferred, including for a lack of eligible parcels; or (B) during a lease sale under paragraph (1) the percentage of acreage that does not receive a bid is equal to or greater than 25 percent of the acreage offered. (d) Mineral Leasing Act Reforms.--Section 17 of the Mineral Leasing Act (30 U.S.C. 226), as amended by subsection (a), is amended-- (1) by striking the section designation and all that follows through the end of subsection (a) and inserting the following: ``SEC. 17. LEASING OF OIL AND GAS PARCELS. ``(a) Leasing Authorized.-- ``(1) In general.--Any parcel of land subject to disposition under this Act that is known or believed to contain oil or gas deposits shall be made available for leasing, subject to paragraph (2), by the Secretary of the Interior, not later than 18 months after the date of receipt by the Secretary of an expression of interest in leasing the applicable parcel of land available for disposition under this section, if the Secretary determines that the parcel of land is open to oil or gas leasing under the approved resource management plan applicable to the planning area in which the parcel of land is located that is in effect on the date on which the expression of interest was submitted to the Secretary (referred to in this subsection as the `approved resource management plan'). ``(2) Resource management plans.-- ``(A) Lease terms and conditions.--A lease issued by the Secretary under this section with respect to an applicable parcel of land made available for leasing under paragraph (1)-- ``(i) shall be subject to the terms and conditions of the approved resource management plan; and ``(ii) may not require any stipulations or mitigation requirements not included in the approved resource management plan. ``(B) Effect of amendment.--The initiation of an amendment to an approved resource management plan shall not prevent or delay the Secretary from making the applicable parcel of land available for leasing in accordance with that approved resource management plan if the other requirements of this section have been met, as determined by the Secretary.''; (2) in subsection (p), by adding at the end the following: ``(4) Term.--A permit to drill approved under this subsection shall be valid for a single, non-renewable 4-year period beginning on the date that the permit to drill is approved.''; and (3) by striking subsection (q) and inserting the following: ``(q) Commingling of Production.--The Secretary of the Interior shall approve applications allowing for the commingling of production from 2 or more sources (including the area of an oil and gas lease, the area included in a drilling spacing unit, a unit participating area, a communitized area, or non-Federal property) before production reaches the point of royalty measurement regardless of ownership, the royalty rates, and the number or percentage of acres for each source if the applicant agrees to install measurement devices for each source, utilize an allocation method that achieves volume measurement uncertainty levels within plus or minus 2 percent during the production phase reported on a monthly basis, or utilize an approved periodic well testing methodology. Production from multiple oil and gas leases, drilling spacing units, communitized areas, or participating areas from a single wellbore shall be considered a single source. Nothing in this subsection shall prevent the Secretary of the Interior from continuing the current practice of exercising discretion to authorize higher percentage volume measurement uncertainty levels if appropriate technical and economic justifications have been provided.''. SEC. 50102. OFFSHORE OIL AND GAS LEASING. (a) Lease Sales.-- (1) Gulf of america region.-- (A) In general.--Notwithstanding the 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Program (and any successor leasing program that does not satisfy the requirements of this section), in addition to lease sales which may be held under that program, and except within areas subject to existing oil and gas leasing moratoria, the Secretary of the Interior shall conduct a minimum of 30 region-wide oil and gas lease sales, in a manner consistent with the schedule described in subparagraph (B), in the region identified in the map depicting lease terms and economic conditions accompanying the final notice of sale of the Bureau of Ocean Energy Management entitled ``Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254'' (85 Fed. Reg. 8010 (February 12, 2020)). (B) Timing requirement.--Of the not fewer than 30 region- wide lease sales required [[Page S3896]] under this paragraph, the Secretary of the Interior shall-- (i) hold not fewer than 1 lease sale in the region described in subparagraph (A) by December 15, 2025; (ii) hold not fewer than 2 lease sales in that region in each of calendar years 2026 through 2039, 1 of which shall be held by March 15 of the applicable calendar year and 1 of which shall be held after March 15 but not later than August 15 of the applicable calendar year; and (iii) hold not fewer than 1 lease sale in that region in calendar year 2040, which shall be held by March 15, 2040. (2) Alaska region.-- (A) In general.--The Secretary of the Interior shall conduct a minimum of 6 offshore lease sales, in a manner consistent with the schedule described in subparagraph (B), in the Cook Inlet Planning Area as identified in the 2017- 2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled ``Notice of Availability of the 2017-2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program'' (81 Fed. Reg. 84612 (November 23, 2016))). (B) Timing requirement.--Of the not fewer than 6 lease sales required under this paragraph, the Secretary of the Interior shall hold not fewer than 1 lease sale in the area described in subparagraph (A) in each of calendar years 2026 through 2028, and in each of calendar years 2030 through 2032, by March 15 of the applicable calendar year. (b) Requirements.-- (1) Terms and stipulations for gulf of america sales.--In conducting lease sales under subsection (a)(1), the Secretary of the Interior-- (A) shall, subject to subparagraph (C), offer the same lease form, lease terms, economic conditions, and lease stipulations 4 through 9 as contained in the final notice of sale of the Bureau of Ocean Energy Management entitled ``Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254'' (85 Fed. Reg. 8010 (February 12, 2020)); (B) may update lease stipulations 1 through 3 and 10 described in that final notice of sale to reflect current conditions for lease sales conducted under subsection (a)(1); (C) shall set the royalty rate at not less than 12\1/2\ percent but not greater than 16\2/3\ percent; and (D) shall, for a lease in water depths of 800 meters or deeper issued as a result of a sale, set the primary term for 10 years. (2) Terms and stipulations for alaska region sales.-- (A) In general.--In conducting lease sales under subsection (a)(2), the Secretary of the Interior shall offer the same lease form, lease terms, economic conditions, and stipulations as contained in the final notice of sale of the Bureau of Ocean Energy Management entitled ``Cook Inlet Planning Area Outer Continental Shelf Oil and Gas Lease Sale 244'' (82 Fed. Reg. 23291 (May 22, 2017)). (B) Revenue sharing.--Notwithstanding section 8(g) and section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g), 1338), and beginning in fiscal year 2034, of the bonuses, rents, royalties, and other revenues derived from lease sales conducted under subsection (a)(2)-- (i) 70 percent shall be paid to the State of Alaska; and (ii) 30 percent shall be deposited in the Treasury and credited to miscellaneous receipts. (3) Area offered for lease.-- (A) Gulf of america region.--For each offshore lease sale conducted under subsection (a)(1), the Secretary of the Interior shall-- (i) offer not fewer than 80,000,000 acres; or (ii) if there are fewer than 80,000,000 acres that are unleased and available, offer all unleased and available acres. (B) Alaska region.--For each offshore lease sale conducted under subsection (a)(2), the Secretary of the Interior shall-- (i) offer not fewer than 1,000,000 acres; or (ii) if there are fewer than 1,000,000 acres that are unleased and available, offer all unleased and available acres. (c) Offshore Commingling.--The Secretary of the Interior shall approve a request of an operator to commingle oil or gas production from multiple reservoirs within a single wellbore completed on the outer Continental Shelf in the Gulf of America Region unless the Secretary of the Interior determines that conclusive evidence establishes that the commingling-- (1) could not be conducted by the operator in a safe manner; or (2) would result in an ultimate recovery from the applicable reservoirs to be reduced in comparison to the expected recovery of those reservoirs if they had not been commingled. (d) Offshore Oil and Gas Royalty Rate.-- (1) Repeal.--Section 50261 of Public Law 117-169 (136 Stat. 2056) is repealed, and any provision of law amended or repealed by that section is restored or revived as if that section had not been enacted into law. (2) Royalty rate.--Section 8(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)) (as amended by paragraph (1)) is amended-- (A) in subparagraph (A), by striking ``not less than 12\1/ 2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''; (B) in subparagraph (C), by striking ``not less than 12\1/ 2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''; (C) in subparagraph (F), by striking ``no less than 12\1/2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''; and (D) in subparagraph (H), by striking ``no less than 12 and \1/2\ per centum'' and inserting ``not less than 12\1/2\ percent, but not more than 16\2/3\ percent,''. (e) Limitations on Amount of Distributed Qualified Outer Continental Shelf Revenues.--Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) is amended-- (1) in subparagraph (B), by striking ``and'' at the end; (2) in subparagraph (C), by striking ``2055.'' and inserting ``2024;''; and (3) by adding at the end the following: ``(D) $650,000,000 for each of fiscal years 2025 through 2034; and ``(E) $500,000,000 for each of fiscal years 2035 through 2055.''. SEC. 50103. ROYALTIES ON EXTRACTED METHANE. Section 50263 of Public Law 117-169 (30 U.S.C. 1727) is repealed. SEC. 50104. ALASKA OIL AND GAS LEASING. (a) Definitions.--In this section: (1) Coastal plain.--The term ``Coastal Plain'' has the meaning given the term in section 20001(a) of Public Law 115- 97 (16 U.S.C. 3143 note). (2) Oil and gas program.--The term ``oil and gas program'' means the oil and gas program established under section 20001(b)(2) of Public Law 115-97 (16 U.S.C. 3143 note). (3) Secretary.--The term ``Secretary'' means the Secretary of the Interior, acting through the Bureau of Land Management. (b) Lease Sales Required.-- (1) In general.--Subject to paragraph (3), in addition to the lease sales required under section 20001(c)(1)(A) of Public Law 115-97 (16 U.S.C. 3143 note), the Secretary shall conduct not fewer than 4 lease sales area-wide under the oil and gas program by not later than 10 years after the date of enactment of this Act. (2) Terms and conditions.--In conducting lease sales under paragraph (1), the Secretary shall offer the same terms and conditions as contained in the record of decision described in the notice of availability of the Bureau of Land Management entitled ``Notice of Availability of the Record of Decision for the Final Environmental Impact Statement for the Coastal Plain Oil and Gas Leasing Program, Alaska'' (85 Fed. Reg. 51754 (August 21, 2020)). (3) Sale acreages; schedule.-- (A) Acreages.--In conducting the lease sales required under paragraph (1), the Secretary shall offer for lease under the oil and gas program-- (i) not fewer than 400,000 acres area-wide in each lease sale; and (ii) those areas that have the highest potential for the discovery of hydrocarbons. (B) Schedule.--The Secretary shall offer-- (i) the initial lease sale under paragraph (1) not later than 1 year after the date of enactment of this Act; (ii) a second lease sale under paragraph (1) not later than 3 years after the date of enactment of this Act; (iii) a third lease sale under paragraph (1) not later than 5 years after the date of enactment of this Act; and (iv) a fourth lease sale under paragraph (1) not later than 7 years after the date of enactment of this Act. (4) Rights-of-way.--Section 20001(c)(2) of Public Law 115- 97 (16 U.S.C. 3143 note) shall apply to leases awarded under this subsection. (5) Surface development.--Section 20001(c)(3) of Public Law 115-97 (16 U.S.C. 3143 note) shall apply to leases awarded under this subsection. (c) Receipts.--Notwithstanding section 35 of the Mineral Leasing Act (30 U.S.C. 191) and section 20001(b)(5) of Public Law 115-97 (16 U.S.C. 3143 note), of the amount of adjusted bonus, rental, and royalty receipts derived from the oil and gas program and operations on the Coastal Plain pursuant to this section-- (1)(A) for each of fiscal years 2025 through 2033, 50 percent shall be paid to the State of Alaska; and (B) for fiscal year 2034 and each fiscal year thereafter, 70 percent shall be paid to the State of Alaska; and (2) the balance shall be deposited into the Treasury as miscellaneous receipts. SEC. 50105. NATIONAL PETROLEUM RESERVE-ALASKA. (a) Definitions.--In this section: (1) NPR-A final environmental impact statement.--The term ``NPR-A final environmental impact statement'' means the final environmental impact statement published by the Bureau of Land Management entitled ``National Petroleum Reserve in Alaska Integrated Activity Plan Final Environmental Impact Statement'' and dated June 2020, including the errata sheet dated October 6, 2020, and excluding the errata sheet dated September 20, 2022. (2) NPR-A record of decision.--The term ``NPR-A record of decision'' means the record of decision published by the Bureau of Land Management entitled ``National Petroleum Reserve in Alaska Integrated Activity Plan Record of Decision'' and dated December 2020. [[Page S3897]] (3) Program.--The term ``Program'' means the competitive oil and gas leasing, exploration, development, and production program established under section 107 of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a). (4) Secretary.--The term ``Secretary'' means the Secretary of the Interior. (b) Restoration of NPR-A Oil and Gas Leasing Program.-- Effective beginning on the date of enactment of this Act-- (1) the Secretary shall expeditiously restore and resume oil and gas lease sales under the Program for domestic energy production and Federal revenue, subject to the requirements of this section; and (2) the final rule of the Bureau of Land Management entitled ``Management and Protection of the National Petroleum Reserve in Alaska'' (89 Fed. Reg. 38712 (May 7, 2024)) shall have no force or effect until January 1, 2035. (c) Resumption of NPR-A Lease Sales.-- (1) In general.--Subject to paragraph (2), the Secretary shall conduct not fewer than 5 lease sales under the Program by not later than 10 years after the date of enactment of this Act. (2) Sales acreages; schedule.-- (A) Acreages.--In conducting the lease sales required under paragraph (1), the Secretary shall offer not fewer than 4,000,000 acres in each lease sale. (B) Schedule.--The Secretary shall offer-- (i) an initial lease sale under paragraph (1) not later than 1 year after the date of enactment of this Act; and (ii) an additional lease sale under paragraph (1) not later than every 2 years after the date of enactment of this Act. (d) Terms and Stipulations for NPR-A Lease Sales.--In conducting lease sales under subsection (c), the Secretary shall offer the same lease form, lease terms, economic conditions, and stipulations as described in the NPR-A final environmental impact statement and the NPR-A record of decision. (e) Receipts.--Section 107(l) of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a(l)) is amended-- (1) by striking ``All receipts from'' and inserting the following: ``(1) In general.--Except as provided in paragraph (2), all receipts from''; and (2) by adding at the end the following: ``(2) Percent share for fiscal year 2034 and thereafter.-- Beginning in fiscal year 2034, of the receipts from sales, rentals, bonuses, and royalties on leases issued pursuant to this section after the date of enactment of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress)-- ``(A) 70 percent shall be paid to the State of Alaska; and ``(B) 30 percent shall be paid into the Treasury of the United States.''. Subtitle B--Mining SEC. 50201. COAL LEASING. (a) Definitions.--In this section: (1) Coal lease.--The term ``coal lease'' means a lease entered into by the United States as lessor, through the Bureau of Land Management, and an applicant on Bureau of Land Management Form 3400-012 (or a successor form that contains the terms of a coal lease). (2) Qualified application.--The term ``qualified application'' means an application for a coal lease pending as of the date of enactment of this Act or submitted within 90 days thereafter under the lease by application program administered by the Bureau of Land Management pursuant to the Mineral Leasing Act (30 U.S.C. 181 et seq.) for which any required environmental review has commenced or the Director of the Bureau of Land Management determines can commence within 90 days after receiving the application. (b) Coal Leasing Activities.--Not later than 90 days after the date of enactment of this Act, the Secretary of the Interior-- (1) shall-- (A) with respect to each qualified application-- (i) if not previously published for public comment, publish any required environmental review; (ii) establish the fair market value of the applicable coal tract; (iii) hold a lease sale with respect to the applicable coal tract; and (iv) identify the highest bidder at or above the fair market value and take all other intermediate actions necessary to identify the winning bidder and grant the qualified application; and (2) may-- (A) with respect to a previously issued coal lease, grant any additional approvals of the Department of the Interior required for mining activities to commence; and (B) after completing the actions required by clauses (i) through (iv) of paragraph (1)(A), grant the qualified application and issue the applicable lease to the person that submitted the qualified application if that person submitted the winning bid in the lease sale held under clause (iii) of paragraph (1)(A). SEC. 50202. COAL ROYALTY. (a) Rate.--Section 7(a) of the Mineral Leasing Act (30 U.S.C. 207(a)) is amended, in the fourth sentence, by striking ``12\1/2\ per centum'' and inserting ``12\1/2\ percent, except such amount shall be not more than 7 percent during the period that begins on the date of enactment of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress) and ends September 30, 2034,''. (b) Applicability to Existing Leases.--The amendment made by subsection (a) shall apply to a coal lease-- (1) issued under section 2 of the Mineral Leasing Act (30 U.S.C. 201) before, on, or after the date of the enactment of this Act; and (2) that has not been terminated. (c) Advance Royalties.--With respect to a lease issued under section 2 of the Mineral Leasing Act (30 U.S.C. 201) for which the lessee has paid advance royalties under section 7(b) of that Act (30 U.S.C. 207(b)), the Secretary of the Interior shall provide to the lessee a credit for the difference between the amount paid by the lessee in advance royalties for the lease before the date of the enactment of this Act and the amount the lessee would have been required to pay if the amendment made by subsection (a) had been made before the lessee paid advance royalties for the lease. SEC. 50203. LEASES FOR KNOWN RECOVERABLE COAL RESOURCES. Notwithstanding section 2(a)(3)(A) of the Mineral Leasing Act (30 U.S.C. 201(a)(3)(A)) and section 202(a) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712(a)), not later than 90 days after the date of enactment of this Act, the Secretary of the Interior shall make available for lease known recoverable coal resources of not less than 4,000,000 additional acres on Federal land located in the 48 contiguous States and Alaska subject to the jurisdiction of the Secretary, but which shall not include any Federal land within-- (1) a National Monument; (2) a National Recreation Area; (3) a component of the National Wilderness Preservation System; (4) a component of the National Wild and Scenic Rivers System; (5) a component of the National Trails System; (6) a National Conservation Area; (7) a unit of the National Wildlife Refuge System; (8) a unit of the National Fish Hatchery System; or (9) a unit of the National Park System. SEC. 50204. AUTHORIZATION TO MINE FEDERAL COAL. (a) Authorization.--In order to provide access to coal reserves in adjacent State or private land that without an authorization could not be mined economically, Federal coal reserves located in Federal land subject to a mining plan previously approved by the Secretary of the Interior as of the date of enactment of this Act and adjacent to coal reserves in adjacent State or private land are authorized to be mined. (b) Requirement.--Not later than 90 days after the date of enactment of this Act, the Secretary of the Interior shall, without substantial modification, take such steps as are necessary to authorize the mining of Federal land described in subsection (a). (c) NEPA.--Nothing in this section shall prevent a review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Subtitle C--Lands SEC. 50301. MANDATORY DISPOSAL OF BUREAU OF LAND MANAGEMENT LAND FOR HOUSING. (a) Definitions.--In this section: (1) Bureau of land management land.--The term ``Bureau of Land Management land'' has the meaning given the term ``public lands'' in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702). (2) Covered federal land.--The term ``covered Federal land'' means Bureau of Land Management land selected for disposal under this section. (3) Eligible state.--The term ``eligible State'' means any of the States of-- (A) Alaska; (B) Arizona; (C) California; (D) Colorado; (E) Idaho; (F) Nevada; (G) New Mexico; (H) Oregon; (I) Utah; (J) Washington; or (K) Wyoming. (4) Federally protected land.--The term ``federally protected land'' means-- (A) a National Monument; (B) a National Recreation Area; (C) a component of the National Wilderness Preservation System; (D) a component of the National Wild and Scenic Rivers System; (E) a component of the National Trails System; (F) a National Conservation Area; (G) a unit of the National Wildlife Refuge System; (H) a unit of the National Fish Hatchery System; or (I) a unit of the National Park System. (5) Population center.--The term ``population center'' means a census-designated place or incorporated municipality with a population of not less than 1,000 persons, as determined by the most recent census or official census estimate by the Census Bureau. (6) Secretary.--The term ``Secretary'' means the Secretary of the Interior (acting through the Director of the Bureau of Land Management). [[Page S3898]] (7) Tract.--The term ``tract'' means a contiguous parcel of not more than 1 square mile. (b) Requirement.--Subject to valid existing rights and the requirements of this section, as soon as practicable after the date of enactment of this Act, the Secretary shall select for disposal not less than 0.25 percent and not more than 0.50 percent of Bureau of Land Management land, and shall, subject to subsection (f)(2), dispose of all right, title, and interest of the United States in and to those tracts selected for disposal under this section. (c) Selection Process; Priority for Disposal.-- (1) In general.--Notwithstanding section 202(a) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712(a)), not later than 60 days after the date of enactment of this Act and every 60 days thereafter, the Secretary shall publish a list of tracts of Bureau of Land Management land identified by the Secretary for disposal by the Secretary or nominated for disposal under paragraph (2) that have been selected by the Secretary for disposal under this section. (2) Nominations from qualified bidders.-- (A) In general.--Not later than 30 days after the date of enactment of this Act, the Secretary shall publish a notice soliciting nominations of tracts of Bureau of Land Management land for disposal by the Secretary under this section from qualified bidders, including States and units of local government. (B) Consultation.--Before selecting for disposal under this section any tract of Bureau of Land Management land nominated for disposal under subparagraph (A), the Secretary shall consult with-- (i) the Governor of the State in which the nominated tract is located regarding the suitability of the area for residential development; (ii) each applicable unit of local government; and (iii) each applicable Indian Tribe. (C) Requirements.--A nomination of a tract of Bureau of Land Management land for disposal submitted by a qualified bidder under subparagraph (A) shall include a description of-- (i) the planned use of the tract of Bureau of Land Management land; and (ii) the extent to which the development of the tract of Bureau of Land Management land would address local housing needs (including housing supply and affordability) or any infrastructure and amenities to support local needs associated with housing. (3) Priority for disposal.--In selecting tracts of Bureau of Land Management land for disposal under this section, the Secretary shall prioritize the disposal of tracts of Bureau of Land Management land that, as determined by the Secretary-- (A) have the highest value; (B) are nominated by States or units of local governments; (C) are adjacent to existing developed areas; (D) have access to existing infrastructure; (E) are suitable for residential housing; (F) reduce checkerboard land patterns; or (G) are isolated tracts that are inefficient to manage. (d) Method of Disposal.--The Secretary shall dispose of tracts of covered Federal land under this section to a qualified bidder by competitive sale, auction, or other methods designed to secure not less than fair market value for the tracts of covered Federal land conveyed. (e) Right of First Refusal.--The Secretary shall provide a State or unit of local government in which a tract of covered Federal land is located a right of first refusal to purchase the applicable tract of covered Federal land. (f) Limitations.-- (1) Use.--A tract of covered Federal land disposed of under this section shall be used solely for the development of housing or to address any infrastructure and amenities to support local needs associated with housing. (2) Restrictive covenant.--As a condition of the conveyance of a tract of covered Federal land under this section, the conveyance shall include a restrictive covenant requiring that the tract of covered Federal land conveyed be used in accordance with the planned use of the tract of covered Federal land-- (A) as described pursuant to paragraph (2)(C)(i) of subsection (c), in the case of a tract of covered Federal land nominated under that paragraph; or (B) as identified by the Secretary, in the case of a tract of covered Federal land initially identified for disposal by the Secretary. (3) Excluded land.--The Secretary may not dispose of any tract of covered Federal land that is-- (A) federally protected land; (B) as of the date of the nomination or identification of the tract of covered Federal land, subject to-- (i) an existing grazing permit or lease; or (ii) a valid existing right that is incompatible with the development of housing or any infrastructure and amenities to support local needs associated with housing; (C) not located in an eligible State; or (D) not located within 5 miles of-- (i) the border of an incorporated municipality; or (ii) the center of the population center of a census- designated place. (4) Number of tracts.--A person may not purchase more than 2 tracts of covered Federal land in any 1 sale under this section unless the person owns land surrounding the tracts of covered Federal land to be sold under this section. (g) Disposition of Proceeds.-- (1) In general.--Subject to paragraphs (2) and (3) and any provision of an applicable State enabling Act, any proceeds from the disposal of a tract of covered Federal land under this section shall be deposited in the general fund of the Treasury. (2) Revenue sharing with unit of local government.-- (A) Distribution.--Notwithstanding paragraph (1), 5 percent of the gross proceeds from each sale of a tract of covered Federal land under this section (other than a sale to a unit of local government) shall be distributed to-- (i) the unit of local government with sole jurisdiction over the tract sold; or (ii) in a case in which more than 1 unit of local government has jurisdiction over the tract sold, the unit of local government that the Secretary determines exercises primary land use authority over the tract sold, as of the date of the sale. (B) Use.--Amounts distributed to a unit of local government under subparagraph (A) shall be used by the unit of local government solely for essential infrastructure directly supporting housing development or other associated infrastructure to support local housing needs, as determined by the Secretary. (3) Hunting, fishing, and recreational amenities; deferred maintenance backlog.--Notwithstanding paragraph (1), 10 percent of the gross proceeds from each sale of a tract of covered Federal land under this section shall be used by the Secretary-- (A) for hunting, fishing, and recreational amenities on Bureau of Land Management land in the State in which the tract sold is located; and (B) to address the deferred maintenance backlog on Bureau of Land Management land in the State in which the tract sold is located. (h) Deadline.--Not later than 10 years after the date of enactment of this Act, the Secretary shall complete all conveyances of tracts of covered Federal land required under this section. (i) Funding.--In addition to amounts otherwise made available, out of any funds in the Treasury not otherwise appropriated, there is appropriated to the Secretary to carry out this section $15,000,000 for fiscal year 2025, to remain available until expended. (j) Termination of Authority.--The authority to carry out this section terminates on September 30, 2034. SEC. 50302. TIMBER SALES AND LONG-TERM CONTRACTING FOR THE FOREST SERVICE AND THE BUREAU OF LAND MANAGEMENT. (a) Forest Service.-- (1) Definitions.--In this subsection: (A) Forest plan.--The term ``forest plan'' means a land and resource management plan prepared by the Secretary for a unit of the National Forest System pursuant to section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604). (B) National forest system.-- (i) In general.--The term ``National Forest System'' means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary. (ii) Exclusions.--The term ``National Forest System'' does not include any forest reserve not created from the public domain. (C) Secretary.--The term ``Secretary'' means the Secretary of Agriculture, acting through the Chief of the Forest Service. (2) Timber sales on public domain forest reserves.-- (A) In general.--For each of fiscal years 2026 through 2034, the Secretary shall sell timber annually on National Forest System land in a total quantity that is not less than 250,000,000 board-feet greater than the quantity of board- feet sold in the previous fiscal year. (B) Limitation.--The timber sales under subparagraph (A) shall be subject to the maximum allowable sale quantity of timber or the projected timber sale quantity under the applicable forest plan in effect on the date of enactment of this Act. (3) Long-term contracting for the forest service.-- (A) Long-term contracting.--For the period of fiscal years 2025 through 2034, the Secretary shall enter into not fewer than 40 long-term timber sale contracts with private persons or other public or private entities under subsection (a) of section 14 of the National Forest Management Act of 1976 (16 U.S.C. 472a) for the sale of national forest materials (as defined in subsection (e)(1) of that section) in the National Forest System. (B) Contract length.--The period of a timber sale contract entered into to meet the requirement under subparagraph (A) shall be not less than 20 years, with options for extensions or renewals, as determined by the Secretary. (C) Receipts.--Any monies derived from a timber sale contract entered into to meet the requirements under subparagraphs (A) and (B) shall be deposited in the general fund of the Treasury. (b) Bureau of Land Management.-- (1) Definitions.--In this subsection: (A) Public lands.--The term ``public lands'' has the meaning given the term in [[Page S3899]] section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702). (B) Resource management plan.--The term ``resource management plan'' means a land use plan prepared for public lands under section 202 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712). (C) Secretary.--The term ``Secretary'' means the Secretary of the Interior, acting through the Director of the Bureau of Land Management. (2) Timber sales on public lands.-- (A) In general.--For each of fiscal years 2026 through 2034, the Secretary shall sell timber annually on public lands in a total quantity that is not less than 20,000,000 board-feet greater than the quantity of board-feet sold in the previous fiscal year. (B) Limitation.--The timber sales under subparagraph (A) shall be subject to the applicable resource management plan in effect on the date of enactment of this Act. (3) Long-term contracting for the bureau of land management.-- (A) Long-term contracting.--For the period of fiscal years 2025 through 2034, the Secretary shall enter into not fewer than 5 long-term contracts with private persons or other public or private entities under section 1 of the Act of July 31, 1947 (commonly known as the ``Materials Act of 1947'') (61 Stat. 681, chapter 406; 30 U.S.C. 601), for the disposal of vegetative materials described in that section on public lands. (B) Contract length.--The period of a contract entered into to meet the requirement under subparagraph (A) shall be not less than 20 years, with options for extensions or renewals, as determined by the Secretary. (C) Receipts.--Any monies derived from a contract entered into to meet the requirements under subparagraphs (A) and (B) shall be deposited in the general fund of the Treasury. SEC. 50303. RENEWABLE ENERGY FEES ON FEDERAL LAND. (a) Definitions.--In this section: (1) Annual adjustment factor.--The term ``Annual Adjustment Factor'' means 3 percent. (2) Encumbrance factor.--The term ``Encumbrance Factor'' means-- (A) 100 percent for a solar energy generation facility; and (B) an amount determined by the Secretary, but not less than 10 percent for a wind energy generation facility. (3) National forest system.-- (A) In general.--The term ``National Forest System'' means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary of Agriculture. (B) Exclusion.--The term ``National Forest System'' does not include any forest reserve not created from the public domain. (4) Per-acre rate.--The term ``Per-Acre Rate'', with respect to a right-of-way, means the average of the per-acre pastureland rental rates published in the Cash Rents Survey by the National Agricultural Statistics Service for the State in which the right-of-way is located over the 5 calendar-year period preceding the issuance or renewal of the right-of-way. (5) Project.--The term ``project'' means a system described in section 2801.9(a)(4) of title 43, Code of Federal Regulations (as in effect on the date of enactment of this Act). (6) Public land.--The term ``public land'' means-- (A) public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)); and (B) National Forest System land. (7) Renewable energy project.--The term ``renewable energy project'' means a project located on public land that uses wind or solar energy to generate energy. (8) Right-of-way.--The term ``right-of-way'' has the meaning given the term in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702). (9) Secretary.--The term ``Secretary'' means-- (A) the Secretary of the Interior, with respect to land controlled or administered by the Secretary of the Interior; and (B) the Secretary of Agriculture, with respect to National Forest System land. (b) Acreage Rent for Wind and Solar Rights-of-way.-- (1) In general.--Pursuant to section 504(g) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1764(g)), the Secretary shall, subject to paragraph (3) and not later than January 1 of each calendar year, collect from the holder of a right-of-way for a renewable energy project an acreage rent in an amount determined by the equation described in paragraph (2). (2) Calculation of acreage rent rate.-- (A) Equation.--The amount of an acreage rent collected under paragraph (1) shall be determined using the following equation: Acreage rent = A B ((1 + C)\D\K)). (B) Definitions.--For purposes of the equation described in subparagraph (A): (i) The letter ``A'' means the Per-Acre Rate. (ii) The letter ``B'' means the Encumbrance Factor. (iii) The letter ``C'' means the Annual Adjustment Factor. (iv) The letter ``D'' means the year in the term of the right-of-way. (3) Payment until production.--The holder of a right-of-way for a renewable energy project shall pay an acreage rent collected under paragraph (1) until the date on which energy generation begins. (c) Capacity Fees.-- (1) In general.--The Secretary shall, subject to paragraph (3), annually collect a capacity fee from the holder of a right-of-way for a renewable energy project based on the amount described in paragraph (2). (2) Calculation of capacity fee.--The amount of a capacity fee collected under paragraph (1) shall be equal to the greater of-- (A) an amount equal to the acreage rent described in subsection (b); and (B) 3.9 percent of the gross proceeds from the sale of electricity produced by the renewable energy project. (3) Multiple-use reduction factor.-- (A) Application.--The holder of a right-of-way for a wind energy generation project may request that the Secretary apply a multiple-use reduction factor of 10-percent to the amount of a capacity fee determined under paragraph (2) by submitting to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (B) Approval.--The Secretary may approve an application submitted under subparagraph (A) only if not less than 25 percent of the land within the area of the right-of-way is authorized for use, occupancy, or development with respect to an activity other than the generation of wind energy for the entirety of the year in which the capacity fee is collected. (C) Late determination.-- (i) In general.--If the Secretary approves an application under subparagraph (B) for a wind energy generation project after the date on which the holder of the right-of-way for the project begins paying a capacity fee, the Secretary shall apply the multiple-use reduction factor described in subparagraph (A) to the capacity fee for the first year beginning after the date of approval and each year thereafter for the period during which the right-of-way remains in effect. (ii) Refund.--The Secretary may not refund the holder of a right-of-way for the difference in the amount of a capacity fee paid in a previous year. (d) Late Payment Fee; Termination.-- (1) In general.--The Secretary may charge the holder of a right-of-way for a renewable energy project a late payment fee if the Secretary does not receive payment for the acreage rent under subsection (b) or the capacity fee under subsection (c) by the date that is 15 days after the date on which the payment was due. (2) Termination of right-of-way.--The Secretary may terminate a right-of-way for a renewable energy project if the Secretary does not receive payment for the acreage rent under subsection (b) or the capacity fee under subsection (c) by the date that is 90 days after the date on which the payment was due. SEC. 50304. RENEWABLE ENERGY REVENUE SHARING. (a) Definitions.--In this section: (1) County.--The term ``county'' includes a parish, township, borough, and any other similar, independent unit of local government. (2) Covered land.--The term ``covered land'' means land that is-- (A) public land administered by the Secretary; and (B) not excluded from the development of solar or wind energy under-- (i) a land use plan; or (ii) other Federal law. (3) National forest system.-- (A) In general.--The term ``National Forest System'' means land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a))) administered by the Secretary of Agriculture. (B) Exclusion.--The term ``National Forest System'' does not include any forest reserve not created from the public domain. (4) Public land.--The term ``public land'' means-- (A) public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)); and (B) National Forest System land. (5) Renewable energy project.--The term ``renewable energy project'' means a system described in section 2801.9(a)(4) of title 43, Code of Federal Regulations (as in effect on the date of enactment of this Act), located on covered land that uses wind or solar energy to generate energy. (6) Secretary.--The term ``Secretary'' means-- (A) the Secretary of the Interior, with respect to land controlled or administered by the Secretary of the Interior; and (B) the Secretary of Agriculture, with respect to National Forest System land. (b) Disposition of Revenue.-- (1) Disposition of revenues.--Beginning on January 1, 2026, the amounts collected from a renewable energy project as bonus bids, rentals, fees, or other payments under a right- of-way, permit, lease, or other authorization shall-- (A) be deposited in the general fund of the Treasury; and (B) without further appropriation or fiscal year limitation, be allocated as follows: (i) 25 percent shall be paid from amounts in the general fund of the Treasury to the State within the boundaries of which the revenue is derived. (ii) 25 percent shall be paid from amounts in the general fund of the Treasury to each county in a State within the boundaries of [[Page S3900]] which the revenue is derived, to be allocated among each applicable county based on the percentage of county land from which the revenue is derived. (2) Payments to states and counties.-- (A) In general.--Amounts paid to States and counties under paragraph (1) shall be used in accordance with the requirements of section 35 of the Mineral Leasing Act (30 U.S.C. 191). (B) Payments in lieu of taxes.--A payment to a county under paragraph (1) shall be in addition to a payment in lieu of taxes received by the county under chapter 69 of title 31, United States Code. (C) Timing.--The amounts required to be paid under paragraph (1)(B) for an applicable fiscal year shall be made available in the fiscal year that immediately follows the fiscal year for which the amounts were collected. SEC. 50305. RESCISSION OF NATIONAL PARK SERVICE AND BUREAU OF LAND MANAGEMENT FUNDS. There are rescinded the unobligated balances of amounts made available by the following sections of Public Law 117- 169 (commonly known as the ``Inflation Reduction Act of 2022'') (136 Stat. 1818): (1) Section 50221 (136 Stat. 2052). (2) Section 50222 (136 Stat. 2052). (3) Section 50223 (136 Stat. 2052). SEC. 50306. CELEBRATING AMERICA'S 250TH ANNIVERSARY. In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior (acting through the Director of the National Park Service) for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $150,000,000 for events, celebrations, and activities surrounding the observance and commemoration of the 250th anniversary of the founding of the United States, to remain available through fiscal year 2028. Subtitle D--Energy SEC. 50401. STRATEGIC PETROLEUM RESERVE. (a) Energy Policy and Conservation Act Definitions.--In this section, the terms ``related facility'', ``storage facility'', and ``Strategic Petroleum Reserve'' have the meanings given those terms in section 152 of the Energy Policy and Conservation Act (42 U.S.C. 6232). (b) Appropriations.--In addition to amounts otherwise available, there is appropriated to the Department of Energy for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $218,000,000 for maintenance of, including repairs to, storage facilities and related facilities of the Strategic Petroleum Reserve; and (2) $171,000,000 to acquire, by purchase, petroleum products for storage in the Strategic Petroleum Reserve. (c) Repeal of Strategic Petroleum Reserve Drawdown and Sale Mandate.--Section 20003 of Public Law 115-97 (42 U.S.C. 6241 note) is repealed. SEC. 50402. REPEALS; RESCISSIONS. (a) Repeal and Rescission.--Section 50142 of Public Law 117-169 (136 Stat. 2044) (commonly known as the ``Inflation Reduction Act of 2022'') is repealed and the unobligated balance of amounts made available under that section (as in effect on the day before the date of enactment of this Act) is rescinded. (b) Rescissions.-- (1) In general.--The unobligated balances of amounts made available under the sections described in paragraph (2) are rescinded. (2) Sections described.--The sections referred to in paragraph (1) are the following sections of Public Law 117- 169 (commonly known as the ``Inflation Reduction Act of 2022''): (A) Section 50123 (42 U.S.C. 18795b). (B) Section 50141 (136 Stat. 2042). (C) Section 50144 (136 Stat. 2044). (D) Section 50145 (136 Stat. 2045). (E) Section 50151 (42 U.S.C. 18715). (F) Section 50152 (42 U.S.C. 18715a). (G) Section 50153 (42 U.S.C. 18715b). (H) Section 50161 (42 U.S.C. 17113b). SEC. 50403. ENERGY DOMINANCE FINANCING. (a) In General.--Section 1706 of the Energy Policy Act of 2005 (42 U.S.C. 16517) is amended-- (1) in subsection (a)-- (A) in paragraph (1), by striking ``or'' at the end; (B) in paragraph (2), by striking ``avoid'' and all that follows through the period at the end and inserting ``increase capacity or output; or''; and (C) by adding at the end the following: ``(3) 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.''; (2) by striking subsection (c); (3) by redesignating subsections (d) through (f) as subsections (c) through (e), respectively; (4) in subsection (c) (as so redesignated)-- (A) in paragraph (1), by adding ``and'' at the end; (B) by striking paragraph (2); and (C) by redesignating paragraph (3) as paragraph (2); (5) in subsection (e) (as so redesignated), by striking ``for--'' in the matter preceding paragraph (1) and all that follows through the period at the end of paragraph (2) and inserting ``for enabling the identification, leasing, development, production, processing, transportation, transmission, refining, and generation needed for energy and critical minerals.''; and (6) by adding at the end the following: ``(f) Funding.-- ``(1) In general.--In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available through September 30, 2028, to carry out activities under this section. ``(2) Administrative costs.--Of the amount made available under paragraph (1), the Secretary shall use not more than 3 percent for administrative expenses.''. (b) Commitment Authority.--Section 50144(b) of Public Law 117-169 (commonly known as the ``Inflation Reduction Act of 2022'') (136 Stat. 2045) is amended by striking ``2026'' and inserting ``2028''. SEC. 50404. TRANSFORMATIONAL ARTIFICIAL INTELLIGENCE MODELS. (a) Definitions.--In this section: (1) American science cloud.--The term ``American science cloud'' means a system of United States government, academic, and private sector programs and infrastructures utilizing cloud computing technologies to facilitate and support scientific research, data sharing, and computational analysis across various disciplines while ensuring compliance with applicable legal, regulatory, and privacy standards. (2) Artificial intelligence.--The term ``artificial intelligence'' has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401). (b) Transformational Models.--The Secretary of Energy shall-- (1) mobilize National Laboratories to partner with industry sectors within the United States to curate the scientific data of the Department of Energy across the National Laboratory complex so that the data is structured, cleaned, and preprocessed in a way that makes it suitable for use in artificial intelligence and machine learning models; and (2) initiate seed efforts for self-improving artificial intelligence models for science and engineering powered by the data described in paragraph (1). (c) Uses.-- (1) Microelectronics.--The curated data described in subsection (b)(1) may be used to rapidly develop next- generation microelectronics that have greater capabilities beyond Moore's law while requiring lower energy consumption. (2) New energy technologies.--The artificial intelligence models developed under subsection (b)(2) shall be provided to the scientific community through the American science cloud to accelerate innovation in discovery science and engineering for new energy technologies. (d) Appropriations.--There is appropriated, out of any funds in the Treasury not otherwise appropriated, $150,000,000, to remain available through September 30, 2026, to carry out this section. Subtitle E--Water SEC. 50501. WATER CONVEYANCE AND SURFACE WATER STORAGE ENHANCEMENT. In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior, acting through the Commissioner of Reclamation, for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $1,000,000,000, to remain available through September 30, 2034, for construction and associated activities that restore or increase the capacity or use of existing conveyance facilities constructed by the Bureau of Reclamation or for construction and associated activities that increase the capacity of existing Bureau of Reclamation surface water storage facilities, in a manner as determined by the Secretary of the Interior, acting through the Commissioner of Reclamation: Provided, That, for the purposes of section 203 of the Reclamation Reform Act of 1982 (43 U.S.C. 390cc) or section 3404(a) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575; 106 Stat. 4708), a contract or agreement entered into pursuant to this section shall not be treated as a new or amended contract: Provided further, That none of the funds provided under this section shall be reimbursable or subject to matching or cost-sharing requirements. TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS SEC. 60001. RESCISSION OF FUNDING FOR CLEAN HEAVY-DUTY VEHICLES. The unobligated balances of amounts made available to carry out section 132 of the Clean Air Act (42 U.S.C. 7432) are rescinded. SEC. 60002. REPEAL OF GREENHOUSE GAS REDUCTION FUND. Section 134 of the Clean Air Act (42 U.S.C. 7434) is repealed and the unobligated balances of amounts made available to carry out that section (as in effect on the day before the date of enactment of this Act) are rescinded. SEC. 60003. RESCISSION OF FUNDING FOR DIESEL EMISSIONS REDUCTIONS. The unobligated balances of amounts made available to carry out section 60104 of Public Law 117-169 (136 Stat. 2067) are rescinded. SEC. 60004. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION. The unobligated balances of amounts made available to carry out section 60105 of Public Law 117-169 (136 Stat. 2067) are rescinded. [[Page S3901]] SEC. 60005. RESCISSION OF FUNDING TO ADDRESS AIR POLLUTION AT SCHOOLS. The unobligated balances of amounts made available to carry out section 60106 of Public Law 117-169 (136 Stat. 2069) are rescinded. SEC. 60006. RESCISSION OF FUNDING FOR THE LOW EMISSIONS ELECTRICITY PROGRAM. The unobligated balances of amounts made available to carry out section 135 of the Clean Air Act (42 U.S.C. 7435) are rescinded. SEC. 60007. RESCISSION OF FUNDING FOR SECTION 211(O) OF THE CLEAN AIR ACT. The unobligated balances of amounts made available to carry out section 60108 of Public Law 117-169 (136 Stat. 2070) are rescinded. SEC. 60008. RESCISSION OF FUNDING FOR IMPLEMENTATION OF THE AMERICAN INNOVATION AND MANUFACTURING ACT. The unobligated balances of amounts made available to carry out section 60109 of Public Law 117-169 (136 Stat. 2071) are rescinded. SEC. 60009. RESCISSION OF FUNDING FOR ENFORCEMENT TECHNOLOGY AND PUBLIC INFORMATION. The unobligated balances of amounts made available to carry out section 60110 of Public Law 117-169 (136 Stat. 2071) are rescinded. SEC. 60010. RESCISSION OF FUNDING FOR GREENHOUSE GAS CORPORATE REPORTING. The unobligated balances of amounts made available to carry out section 60111 of Public Law 117-169 (136 Stat. 2072) are rescinded. SEC. 60011. RESCISSION OF FUNDING FOR ENVIRONMENTAL PRODUCT DECLARATION ASSISTANCE. The unobligated balances of amounts made available to carry out section 60112 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat. 2072) are rescinded. SEC. 60012. RESCISSION OF FUNDING FOR METHANE EMISSIONS AND WASTE REDUCTION INCENTIVE PROGRAM FOR PETROLEUM AND NATURAL GAS SYSTEMS. (a) Rescission.--The unobligated balances of amounts made available to carry out subsections (a) and (b) of section 136 of the Clean Air Act (42 U.S.C. 7436) are rescinded. (b) Period.--Section 136(g) of the Clean Air Act (42 U.S.C. 7436(g)) is amended by striking ``calendar year 2024'' and inserting ``calendar year 2034''. SEC. 60013. RESCISSION OF FUNDING FOR GREENHOUSE GAS AIR POLLUTION PLANS AND IMPLEMENTATION GRANTS. The unobligated balances of amounts made available to carry out section 137 of the Clean Air Act (42 U.S.C. 7437) are rescinded. SEC. 60014. RESCISSION OF FUNDING FOR ENVIRONMENTAL PROTECTION AGENCY EFFICIENT, ACCURATE, AND TIMELY REVIEWS. The unobligated balances of amounts made available to carry out section 60115 of Public Law 117-169 (136 Stat. 2077) are rescinded. SEC. 60015. RESCISSION OF FUNDING FOR LOW-EMBODIED CARBON LABELING FOR CONSTRUCTION MATERIALS. The unobligated balances of amounts made available to carry out section 60116 of Public Law 117-169 (42 U.S.C. 4321 note; 136 Stat. 2077) are rescinded. SEC. 60016. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS. The unobligated balances of amounts made available to carry out section 138 of the Clean Air Act (42 U.S.C. 7438) are rescinded. SEC. 60017. RESCISSION OF FUNDING FOR ESA RECOVERY PLANS. The unobligated balances of amounts made available to carry out section 60301 of Public Law 117-169 (136 Stat. 2079) are rescinded. SEC. 60018. RESCISSION OF FUNDING FOR ENVIRONMENTAL AND CLIMATE DATA COLLECTION. The unobligated balances of amounts made available to carry out section 60401 of Public Law 117-169 (136 Stat. 2079) are rescinded. SEC. 60019. RESCISSION OF NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM. The unobligated balances of amounts made available to carry out section 177 of title 23, United States Code, are rescinded. SEC. 60020. RESCISSION OF FUNDING FOR FEDERAL BUILDING ASSISTANCE. The unobligated balances of amounts made available to carry out section 60502 of Public Law 117-169 (136 Stat. 2083) are rescinded. SEC. 60021. RESCISSION OF FUNDING FOR LOW-CARBON MATERIALS FOR FEDERAL BUILDINGS. The unobligated balances of amounts made available to carry out section 60503 of Public Law 117-169 (136 Stat. 2083) are rescinded. SEC. 60022. RESCISSION OF FUNDING FOR GSA EMERGING AND SUSTAINABLE TECHNOLOGIES. The unobligated balances of amounts made available to carry out section 60504 of Public Law 117-169 (136 Stat. 2083) are rescinded. SEC. 60023. RESCISSION OF ENVIRONMENTAL REVIEW IMPLEMENTATION FUNDS. The unobligated balances of amounts made available to carry out section 178 of title 23, United States Code, are rescinded. SEC. 60024. RESCISSION OF LOW-CARBON TRANSPORTATION MATERIALS GRANTS. The unobligated balances of amounts made available to carry out section 179 of title 23, United States Code, are rescinded. SEC. 60025. JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS. (a) In General.--In addition to amounts otherwise available, there is appropriated for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $256,657,000, to remain available until September 30, 2029, for necessary expenses for capital repair, restoration, maintenance backlog, and security structures of the building and site of the John F. Kennedy Center for the Performing Arts. (b) Administrative Costs.--Of the amounts made available under subsection (a), not more than 3 percent may be used for administrative costs necessary to carry out this section. SEC. 60026. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS. Title I of the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) is amended by adding at the end the following: ``SEC. 112. PROJECT SPONSOR OPT-IN FEES FOR ENVIRONMENTAL REVIEWS. ``(a) Process.-- ``(1) Project sponsor.--A project sponsor that intends to pay a fee under this section for the preparation, or supervision of the preparation, of an environmental assessment or environmental impact statement for a project shall submit to the Council-- ``(A) a description of the project; and ``(B) a declaration of whether the project sponsor intends to prepare the environmental assessment or environmental impact statement under section 107(f). ``(2) Council on environmental quality.--Not later than 15 days after the date on which the Council receives information described in paragraph (1) from a project sponsor, the Council shall provide to the project sponsor notice of the amount of the fee to be paid under this section, as determined under subsection (b). ``(3) Payment of fee.--A project sponsor may pay a fee under this section after receipt of the notice described in paragraph (2). ``(4) Deadline for environmental reviews for which a fee is paid.--Notwithstanding section 107(g)(1)-- ``(A) an environmental assessment for which a fee is paid under this section shall be completed not later than 180 days after the date on which the fee is paid; and ``(B) an environmental impact statement for which a fee is paid under this section shall be completed not later than 1 year after the date of publication of the notice of intent to prepare the environmental impact statement. ``(b) Fee Amount.--The amount of a fee under this section shall be-- ``(1) 125 percent of the anticipated costs to prepare the environmental assessment or environmental impact statement; and ``(2) in the case of an environmental assessment or environmental impact statement to be prepared in whole or in part by a project sponsor under section 107(f), 125 percent of the anticipated costs to supervise preparation of, and, as applicable, prepare, the environmental assessment or environmental impact statement.''. TITLE VII--FINANCE Subtitle A--Tax SEC. 70001. REFERENCES TO THE INTERNAL REVENUE CODE OF 1986, ETC. (a) References.--Except as otherwise expressly provided, whenever in this title, an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (b) Certain Rules Regarding Effect of Rate Changes Not Applicable.--Section 15 of the Internal Revenue Code of 1986 shall not apply to any change in rate of tax by reason of any provision of, or amendment made by, this title. CHAPTER 1--PROVIDING PERMANENT TAX RELIEF FOR MIDDLE-CLASS FAMILIES AND WORKERS SEC. 70101. EXTENSION AND ENHANCEMENT OF REDUCED RATES. (a) In General.--Section 1(j) is amended-- (1) in paragraph (1), by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Inflation Adjustment.--Section 1(j)(3)(B)(i) is amended by inserting ``solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins,'' before ``subsection (f)(3)''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70102. EXTENSION AND ENHANCEMENT OF INCREASED STANDARD DEDUCTION. (a) In General.--Section 63(c)(7) is amended-- (1) by striking ``, and before January 1, 2026'' in the matter preceding subparagraph (A), and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Additional Increase in Standard Deduction.--Paragraph (7) of section 63(c) is amended-- (1) by striking ``$18,000'' both places it appears in subparagraphs (A)(i) and (B)(ii) and inserting ``$23,625'', (2) by striking ``$12,000'' both places it appears in subparagraphs (A)(ii) and (B)(ii) and inserting ``$15,750'', (3) by striking ``2018'' in subparagraph (B)(ii) and inserting ``2025'', and (4) by striking ``2017'' in subparagraph (B)(ii)(II) and inserting ``2024''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. [[Page S3902]] SEC. 70103. TERMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS OTHER THAN TEMPORARY SENIOR DEDUCTION. (a) In General.--Section 151(d)(5) is amended-- (1) by striking ``2018 through 2025'' in the heading and inserting ``beginning after 2017'', (2) by striking ``, and before January 1, 2026'', and (3) by adding at the end the following new subparagraph: ``(C) Deduction for seniors.-- ``(i) In general.--In the case of a taxable year beginning before January 1, 2029, there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual with respect to the taxpayer. ``(ii) Qualified individual.--For purposes of clause (i), the term `qualified individual' means-- ``(I) the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and ``(II) in the case of a joint return, the taxpayer's spouse, if such spouse has attained age 65 before the close of the taxable year. ``(iii) Limitation based on modified adjusted gross income.-- ``(I) In general.--In the case of any taxpayer for any taxable year, the $6,000 amount in clause (i) shall be reduced (but not below zero) by 6 percent of so much of the taxpayer's modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). ``(II) Modified adjusted gross income.--For purposes of this clause, the term `modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(iv) Social security number required.-- ``(I) In general.--Clause (i) shall not apply with respect to a qualified individual unless the taxpayer includes such qualified individual's social security number on the return of tax for the taxable year. ``(II) Social security number.--For purposes of subclause (I), the term `social security number' has the meaning given such term in section 24(h)(7). ``(v) Married individuals.--If the taxpayer is a married individual (within the meaning of section 7703), this subparagraph shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year.''. (b) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2) is amended by striking ``and'' at the end of subparagraph (U), by striking the period at the end of subparagraph (V) and inserting ``, and'', and by inserting after subparagraph (V) the following new subparagraph: ``(W) an omission of a correct social security number required under section 151(d)(5)(C) (relating to deduction for seniors).''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70104. EXTENSION AND ENHANCEMENT OF INCREASED CHILD TAX CREDIT. (a) Extension and Increase of Expanded Child Tax Credit.-- Section 24(h) is amended-- (1) in paragraph (1), by striking ``, and before January 1, 2026'', (2) in paragraph (2), by striking ``$2,000'' and inserting ``$2,200'', and (3) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Social Security Number Required.--Section 24(h)(7) is amended to read as follows: ``(7) Social security number required.-- ``(A) In general.--No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes on the return of tax for the taxable year-- ``(i) the taxpayer's social security number (or, in the case of a joint return, the social security number of at least 1 spouse), and ``(ii) the social security number of such qualifying child. ``(B) Social security number.--For purposes of this paragraph, the term `social security number' means a social security number issued to an individual by the Social Security Administration, but only if the social security number is issued-- ``(i) to a citizen of the United States or pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act, and ``(ii) before the due date for such return.''. (c) Inflation Adjustments.-- (1) In general.--Section 24(i) is amended to read as follows: ``(i) Inflation Adjustments.-- ``(1) Maximum amount of refundable credit.--In the case of a taxable year beginning after 2024, the $1,400 amount in subsection (h)(5) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `2017' for `2016' in subparagraph (A)(ii) thereof. ``(2) Special rule for adjustment of credit amount.--In the case of a taxable year beginning after 2025, the $2,200 amount in subsection (h)(2) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `2024' for `2016' in subparagraph (A)(ii) thereof. ``(3) Rounding.--If any increase under this subsection is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.''. (d) Conforming Amendment.--Section 24(h)(5) is amended to read as follows: ``(5) Maximum amount of refundable credit.--The amount determined under subsection (d)(1)(A) with respect to any qualifying child shall not exceed $1,400, and such subsection shall be applied without regard to paragraph (4) of this subsection.''. (e) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2)(I) is amended by striking ``section 24(e)'' and inserting ``section 24''. (f) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70105. EXTENSION AND ENHANCEMENT OF DEDUCTION FOR QUALIFIED BUSINESS INCOME. (a) Increase in Taxable Income Limitation Phase-in Amounts.-- (1) In general.--Subparagraph (B) of section 199A(b)(3) is amended by striking ``$50,000 ($100,000 in the case of a joint return)'' each place it appears and inserting ``$75,000 ($150,000 in the case of a joint return)''. (2) Conforming amendment.--Paragraph (3) of section 199A(d) is amended by striking ``$50,000 ($100,000 in the case of a joint return)'' each place it appears and inserting ``$75,000 ($150,000 in the case of a joint return)''. (b) Minimum Deduction for Active Qualified Business Income.-- (1) In general.--Subsection (i) of section 199A is amended to read as follows: ``(i) Minimum Deduction for Active Qualified Business Income.-- ``(1) In general.--In the case of an applicable taxpayer for any taxable year, the deduction allowed under subsection (a) for the taxable year shall be equal to the greater of-- ``(A) the amount of such deduction determined without regard to this subsection, or ``(B) $400. ``(2) Applicable taxpayer.--For purposes of this subsection-- ``(A) In general.--The term `applicable taxpayer' means, with respect to any taxable year, a taxpayer whose aggregate qualified business income with respect to all active qualified trades or businesses of the taxpayer for such taxable year is at least $1,000. ``(B) Active qualified trade or business.--The term `active qualified trade or business' means, with respect to any taxpayer for any taxable year, any qualified trade or business of the taxpayer in which the taxpayer materially participates (within the meaning of section 469(h)). ``(3) Inflation adjustment.--In the case of any taxable year beginning after 2026, the $400 amount in paragraph (1)(B) and the $1,000 amount in paragraph (2)(A) shall each be increased by an amount equal to -- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under this paragraph is not a multiple of $5, such increase shall be rounded to the nearest multiple of $5.''. (2) Conforming amendment.--Section 199A(a) is amended by inserting ``except as provided in subsection (i),'' before ``there''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70106. EXTENSION AND ENHANCEMENT OF INCREASED ESTATE AND GIFT TAX EXEMPTION AMOUNTS. (a) In General.--Section 2010(c)(3) is amended-- (1) in subparagraph (A) by striking ``$5,000,000'' and inserting ``$15,000,000'', (2) in subparagraph (B)-- (A) in the matter preceding clause (i), by striking ``2011'' and inserting ``2026'', and (B) in clause (ii), by striking ``calendar year 2010'' and inserting ``calendar year 2025'', and (3) by striking subparagraph (C). (b) Effective Date.--The amendments made by this section shall apply to estates of decedents dying and gifts made after December 31, 2025. SEC. 70107. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNTS AND MODIFICATION OF PHASEOUT THRESHOLDS. (a) In General.--Section 55(d)(4) is amended-- (1) in subparagraph (A), by striking ``, and before January 1, 2026'', and (2) by striking ``and Before 2026'' in the heading. (b) Modification of Inflation Adjustment.--Section 55(d)(4)(B) is amended-- (1) by striking ``2018'' and inserting ``2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I))'', and (2) by striking ``determined by substituting `calendar year 2017' for `calendar year 2016' in subparagraph (A)(ii) thereof.'' and inserting ``determined by substituting for `calendar year 2016' in subparagraph (A)(ii) thereof-- ``(1) `calendar year 2017', in the case of the $109,400 amount in subparagraph (A)(i)(I) and [[Page S3903]] the $70,300 amount in subparagraph (A)(i)(II), and ``(2) `calendar year 2025', in the case of the $1,000,000 amount in subparagraph (A)(ii)(I).''. (c) Modification of Phaseout Amount.--Section 55(d)(4)(A)(ii) is amended by striking ``and'' at the end of subclause (II), and by adding at the end the following new subclause: ``(IV) by substituting `50 percent' for `25 percent', and''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70108. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION FOR QUALIFIED RESIDENCE INTEREST. (a) In General.--Section 163(h)(3)(F) is amended-- (1) in clause (i)-- (A) by striking ``, and before January 1, 2026'', (B) by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively, (C) by striking ``subclause (III)'' in subclause (V), as so redesignated, and inserting ``subclause (IV)'', and (D) by inserting after subclause (II) the following new subclause: ``(III) Mortgage insurance premiums treated as interest.-- Clause (iv) of subparagraph (E) shall not apply.'', (2) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively, and (3) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70109. EXTENSION AND MODIFICATION OF LIMITATION ON CASUALTY LOSS DEDUCTION. (a) In General.--Section 165(h)(5) is amended-- (1) in subparagraph (A), by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Extension to State Declared Disasters.-- (1) In general.--Subparagraph (A) of section 165(h)(5), as amended by subsection (a), is further amended by striking ``(i)(5))'' and inserting ``(i)(5)) or a State declared disaster''. (2) Exception related to personal casualty gains.--Clause (i) of section 165(h)(5)(B) is amended by striking ``(as so defined)'' and inserting ``(as so defined) or a State declared disaster''. (3) State declared disaster.--Paragraph (5) of section 165(h) is amended by adding at the end the following new subparagraph: ``(C) State declared disaster.--For purposes of this paragraph-- ``(i) In general.--The term `State declared disaster' means, with respect to any State, any natural catastrophe (including any hurricane, tornado, storm, high water, wind- driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the State, which in the determination of the Governor of such State (or the Mayor, in the case of the District of Columbia) and the Secretary causes damage of sufficient severity and magnitude to warrant the application of the rules of this section. ``(ii) State.--The term `State' includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70110. TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTIONS OTHER THAN EDUCATOR EXPENSES. (a) In General.--Section 67(g) is amended-- (1) by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Deduction for Educator Expenses.-- (1) In general.--Section 67(b) is amended by striking ``and'' at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ``, and'', and by adding at the end the following new paragraph: ``(13) the deductions allowed by section 162 for educator expenses (as defined in subsection (g)).''. (2) Inclusion of coaches and certain nonathletic instructional equipment.--Section 67 is amended by redesignating subsection (g), as amended by this section, as subsection (h), and by inserting after subsection (f) the following new section: ``(g) Educator Expenses.--For purposes of subsection (b)(13), the term `educator expenses' means expenses of a type which would be described in section 62(a)(2)(D) if-- ``(1) such section were applied-- ``(A) without regard to the dollar limitation, ``(B) without regard to `(other than nonathletic supplies for courses of instruction in health or physical education)' in clause (ii) thereof, and ``(C) by substituting `as part of instructional activity' for `in the classroom' in clause (ii) thereof, and ``(2) section 62(d)(1)(A) were applied by inserting `, interscholastic sports administrator or coach,' after `counselor'.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70111. LIMITATION ON TAX BENEFIT OF ITEMIZED DEDUCTIONS. (a) In General.--Section 68 is amended to read as follows: ``(a) In General.--In the case of an individual, the amount of the itemized deductions otherwise allowable for the taxable year (determined without regard to this section) shall be reduced by \2/37\ of the lesser of-- ``(1) such amount of itemized deductions, or ``(2) so much of the taxable income of the taxpayer for the taxable year (determined without regard to this section and increased by such amount of itemized deductions) as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer. ``(b) Coordination With Other Limitations.--This section shall be applied after the application of any other limitation on the allowance of any itemized deduction.''. (b) Limitation Not Applicable to Determination of Deduction for Qualified Business Income.-- (1) In general.--Section 199A(e)(1) is amended by inserting ``without regard to section 68 and'' after ``shall be computed''. (2) Patrons of specified agricultural and horticultural cooperatives.--Section 199A(g)(2)(B) is amended by inserting ``section 68 or'' after ``without regard to''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70112. EXTENSION AND MODIFICATION OF QUALIFIED TRANSPORTATION FRINGE BENEFITS. (a) In General.--Section 132(f) is amended-- (1) by striking subparagraph (D) of paragraph (1), (2) in paragraph (2), by inserting ``and'' at the end of subparagraph (A), by striking ``, and'' at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C), (3) by striking ``(other than a qualified bicycle commuting reimbursement)'' in paragraph (4), (4) by striking subparagraph (F) of paragraph (5), and (5) by striking paragraph (8). (b) Inflation Adjustment.--Clause (ii) of section 132(f)(6)(A) is amended by striking ``1998'' in clause (ii) and inserting ``1997''. (c) Coordination With Disallowance of Certain Expenses.-- Subsection (l) of section 274 is amended-- (1) by striking ``Benefits.--'' and all that follows through ``No deduction'' and inserting ``Benefits.--No deduction'', and (2) by striking paragraph (2). (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70113. EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION AND EXCLUSION FOR MOVING EXPENSES. (a) Extension of Limitation on Deduction.--Section 217(k) is amended-- (1) by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (b) Allowance of Deduction for Members of the Intelligence Community.--Section 217(k), as amended by subsection (a), is further amended-- (1) by striking ``2017.--Except in the case'' and inserting ``2017.-- ``(1) In general.--Except in the case'', and (2) by adding at the end the following new paragraph: ``(2) Members of the intelligence community.--An employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment which requires relocation shall be treated for purposes of this section in the same manner as an individual to whom subsection (g) applies.''. (c) Extension of Limitation on Exclusion.--Section 132(g)(2) is amended-- (1) by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''. (d) Allowance of Exclusion for Members of the Intelligence Community.--Section 132(g)(2) of the Internal Revenue Code of 1986 is amended by inserting ``, or an employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment that requires relocation'' after ``change of station''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70114. EXTENSION AND MODIFICATION OF LIMITATION ON WAGERING LOSSES. (a) In General.--Section 165 is amended by striking subsection (d) and inserting the following: ``(d) Wagering Losses.-- ``(1) In general.--For purposes of losses from wagering transactions, the amount allowed as a deduction for any taxable year-- ``(A) shall be equal to 90 percent of the amount of such losses during such taxable year, and [[Page S3904]] ``(B) shall be allowed only to the extent of the gains from such transactions during such taxable year. ``(2) Special rule.--For purposes of paragraph (1), the term `losses from wagering transactions' includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70115. EXTENSION AND ENHANCEMENT OF INCREASED LIMITATION ON CONTRIBUTIONS TO ABLE ACCOUNTS. (a) In General.--Section 529A(b)(2)(B) is amended-- (1) in clause (i), by inserting ``(determined by substituting `1996' for `1997' in paragraph (2)(B) thereof)'' after ``section 2503(b)'', and (2) in clause (ii), by striking ``before January 1, 2026''. (b) Effective Dates.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made after December 31, 2025. (2) Modified inflation adjustment.--The amendment made by subsection (a)(1) shall apply to taxable years beginning after December 31, 2025. SEC. 70116. EXTENSION AND ENHANCEMENT OF SAVERS CREDIT ALLOWED FOR ABLE CONTRIBUTIONS. (a) Extension.-- (1) In general.--Section 25B(d)(1) is amended to read as follows: ``(1) In general.--The term `qualified retirement savings contributions' means, with respect to any taxable year, the sum of-- ``(A) the amount of contributions made by the eligible individual during such taxable year to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary, and ``(B) in the case of any taxable year beginning before January 1, 2027-- ``(i) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual, ``(ii) the amount of-- ``(I) any elective deferrals (as defined in section 402(g)(3)) of such individual, and ``(II) any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and ``(iii) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).''. (2) Coordination with secure 2.0 act of 2022 amendment.-- Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 is repealed, and the Internal Revenue Code of 1986 shall be applied and administered as though such paragraph were never enacted. (3) Effective date.--The amendments and repeal made by this subsection shall apply to taxable years ending after December 31, 2025. (b) Increase of Credit Amount.-- (1) In general.--Section 25B(a) is amended by striking ``$2,000'' and inserting ``$2,100''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2026. SEC. 70117. EXTENSION OF ROLLOVERS FROM QUALIFIED TUITION PROGRAMS TO ABLE ACCOUNTS PERMITTED. (a) In General.--Section 529(c)(3)(C)(i)(III) is amended by striking ``before January 1, 2026,''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70118. EXTENSION OF TREATMENT OF CERTAIN INDIVIDUALS PERFORMING SERVICES IN THE SINAI PENINSULA AND ENHANCEMENT TO INCLUDE ADDITIONAL AREAS. (a) Treatment Made Permanent.--Section 11026(a) of Public Law 115-97 is amended by striking ``, with respect to the applicable period''. (b) Kenya, Mali, Burkina Faso, and Chad Included as Hazardous Duty Areas.--Section 11026(b) of Public Law 115-97 is amended to read as follows: ``(b) Qualified Hazardous Duty Area.--For purposes of this section, the term `qualified hazardous duty area' means each of the following locations, but only during the period for which any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger), for services performed in such location: ``(1) the Sinai Peninsula of Egypt. ``(2) Kenya. ``(3) Mali. ``(4) Burkina Faso. ``(5) Chad.''. (c) Conforming Amendment.--Section 11026 of Public Law 115- 97 is amended by striking subsections (c) and (d). (d) Effective Date.--The amendments made by this section shall take effect on January 1, 2026. SEC. 70119. EXTENSION AND MODIFICATION OF EXCLUSION FROM GROSS INCOME OF STUDENT LOANS DISCHARGED ON ACCOUNT OF DEATH OR DISABILITY. (a) In General.--Section 108(f)(5) is amended to read as follows: ``(5) Discharges on account of death or disability.-- ``(A) In general.--In the case of an individual, gross income does not include any amount which (but for this subsection) would be includible in gross income for such taxable year by reason of the discharge (in whole or in part) of any loan described in subparagraph (B), if such discharge was-- ``(i) pursuant to subsection (a) or (d) of section 437 of the Higher Education Act of 1965 or the parallel benefit under part D of title IV of such Act (relating to the repayment of loan liability), ``(ii) pursuant to section 464(c)(1)(F) of such Act, or ``(iii) otherwise discharged on account of death or total and permanent disability of the student. ``(B) Loans discharged.--A loan is described in this subparagraph if such loan is-- ``(i) a student loan (as defined in paragraph (2)), or ``(ii) a private education loan (as defined in section 140(a) of the Consumer Credit Protection Act (15 U.S.C. 1650(a)). ``(C) Social security number requirement.-- ``(i) In general.--Subparagraph (A) shall not apply with respect to any discharge during any taxable year unless the taxpayer includes the taxpayer's social security number on the return of tax for such taxable year. ``(ii) Social security number.--For purposes of this subparagraph, the term `social security number' has the meaning given such term in section 24(h)(7).''. (b) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2), as amended by this Act, is further amended by striking ``and'' at the end of subparagraph (V), by striking the period at the end of subparagraph (W) and inserting ``, and'', and by inserting after subparagraph (W) the following new subparagraph: ``(X) an omission of a correct social security number required under section 108(f)(5)(C) (relating to discharges on account of death or disability).''. (c) Effective Date.--The amendments made by this section shall apply to discharges after December 31, 2025. SEC. 70120. LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE AND LOCAL TAXES, ETC. (a) In General.--Section 164(b)(6) is amended-- (1) by striking ``and before January 1, 2026'', and (2) by striking ``$10,000 ($5,000 in the case of a married individual filing a separate return)'' and inserting ``the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return)''. (b) Applicable Limitation Amount.--Section 164(b) is amended by adding at the end the following new paragraph: ``(7) Applicable limitation amount.-- ``(A) In general.--For purposes of paragraph (6), the term `applicable limitation amount' means-- ``(i) in the case of any taxable year beginning in calendar year 2025, $40,000, ``(ii) in the case of any taxable year beginning in calendar year 2026, $40,400, ``(iii) in the case of any taxable year beginning after calendar year 2026 and before 2030, 101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year, and ``(iv) in the case of any taxable year beginning after calendar year 2029, $10,000. ``(B) Phasedown based on modified adjusted gross income.-- ``(i) In general.--Except as provided in clause (iii), in the case of any taxable year beginning before January 1, 2030, the applicable limitation amount shall be reduced by 30 percent of the excess (if any) of the taxpayer's modified adjusted gross income over the threshold amount (half the threshold amount in the case of a married individual filing a separate return). ``(ii) Threshold amount.--For purposes of this subparagraph, the term `threshold amount' means-- ``(I) in the case of any taxable year beginning in calendar year 2025, $500,000, ``(II) in the case of any taxable year beginning in calendar year 2026, $505,000, and ``(III) in the case of any taxable year beginning after calendar year 2026, 101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year. ``(iii) Limitation on reduction.--The reduction under clause (i) shall not result in the applicable limitation amount being less than $10,000. ``(iv) Modified adjusted gross income.--For purposes of this paragraph, the term `modified adjusted gross income' means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. CHAPTER 2--DELIVERING ON PRESIDENTIAL PRIORITIES TO PROVIDE NEW MIDDLE- CLASS TAX RELIEF SEC. 70201. NO TAX ON TIPS. (a) Deduction Allowed.--Part VII of subchapter B of chapter 1 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section: ``SEC. 224. QUALIFIED TIPS. ``(a) In General.--There shall be allowed as a deduction an amount equal to the qualified tips received during the taxable year that are included on statements furnished to [[Page S3905]] the individual pursuant to section 6041(d)(3), 6041A(e)(3), 6050W(f)(2), or 6051(a)(18), or reported by the taxpayer on Form 4137 (or successor). ``(b) Limitation.-- ``(1) In general.--The amount allowed as a deduction under this section for any taxable year shall not exceed $25,000. ``(2) Limitation based on adjusted gross income.-- ``(A) In general.--The amount allowable as a deduction under subsection (a) (after application of paragraph (1)) shall be reduced (but not below zero) by $100 for each $1,000 by which the taxpayer's modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return). ``(B) Modified adjusted gross income.--For purposes of this paragraph, the term `modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(c) Tips Received in Course of Trade or Business.--In the case of qualified tips received by an individual during any taxable year in the course of a trade or business (other than the trade or business of performing services as an employee) of such individual, such qualified tips shall be taken into account under subsection (a) only to the extent that the gross income for the taxpayer from such trade or business for such taxable year (including such qualified tips) exceeds the sum of the deductions (other than the deduction allowed under this section) allocable to the trade or business in which such qualified tips are received by the individual for such taxable year. ``(d) Qualified Tips.--For purposes of this section-- ``(1) In general.--The term `qualified tips' means cash tips received by an individual in an occupation which customarily and regularly received tips on or before December 31, 2024, as provided by the Secretary. ``(2) Exclusions.--Such term shall not include any amount received by an individual unless-- ``(A) such amount is paid voluntarily without any consequence in the event of nonpayment, is not the subject of negotiation, and is determined by the payor, ``(B) the trade or business in the course of which the individual receives such amount is not a specified service trade or business (as defined in section 199A(d)(2)), and ``(C) such other requirements as may be established by the Secretary in regulations or other guidance are satisfied. For purposes of subparagraph (B), in the case of an individual receiving tips in the trade or business of performing services as an employee, such individual shall be treated as receiving tips in the course of a trade or business which is a specified service trade or business if the trade or business of the employer is a specified service trade or business. ``(3) Cash tips.--For purposes of paragraph (1), the term `cash tips' includes tips received from customers that are paid in cash or charged and, in the case of an employee, tips received under any tip-sharing arrangement. ``(e) Social Security Number Required.-- ``(1) In general.--No deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual's social security number. ``(2) Social security number defined.--For purposes of paragraph (1), the term `social security number' shall have the meaning given such term in section 24(h)(7). ``(f) Married Individuals.--If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year. ``(g) Regulations.--The Secretary shall prescribe such regulations or other guidance as may be necessary to prevent reclassification of income as qualified tips, including regulations or other guidance to prevent abuse of the deduction allowed by this section. ``(h) Termination.--No deduction shall be allowed under this section for any taxable year beginning after December 31, 2028.''. (b) Deduction Allowed to Non-itemizers.--Section 63(b) is amended by striking ``and'' at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting ``, and'', and by adding at the end the following new paragraph: ``(5) the deduction provided in section 224.''. (c) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of subparagraph (W), by striking the period at the end of subparagraph (X) and inserting ``, and'', and by inserting after subparagraph (X) the following new subparagraph: ``(Y) an omission of a correct social security number required under section 224(e) (relating to deduction for qualified tips).''. (d) Exclusion From Qualified Business Income.--Section 199A(c)(4) is amended by striking ``and'' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ``, and'', and by adding at the end the following new subparagraph: ``(D) any amount with respect to which a deduction is allowable to the taxpayer under section 224(a) for the taxable year.''. (e) Extension of Tip Credit to Beauty Service Business.-- (1) In general.--Section 45B(b)(2) is amended to read as follows: ``(2) Application only to certain lines of business.--In applying paragraph (1) there shall be taken into account only tips received from customers or clients in connection with the following services: ``(A) The providing, delivering, or serving of food or beverages for consumption, if the tipping of employees delivering or serving food or beverages by customers is customary. ``(B) The providing of any of the following services to a customer or client if the tipping of employees providing such services is customary: ``(i) Barbering and hair care. ``(ii) Nail care. ``(iii) Esthetics. ``(iv) Body and spa treatments.''. (2) Credit determined with respect to minimum wage in effect.--Section 45B(b)(1)(B) is amended-- (A) by striking ``as in effect on January 1, 2007, and'', and (B) by inserting ``, and in the case of food or beverage establishments, as in effect on January 1, 2007'' after ``without regard to section 3(m) of such Act''. (f) Reporting Requirements.-- (1) Returns for payments made in the course of a trade or business.-- (A) Statement furnished to secretary.--Section 6041(a) is amended by inserting ``(including a separate accounting of any such amounts reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)'' after ``such gains, profits, and income''. (B) Statement furnished to payee.--Section 6041(d) is amended by striking ``and'' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ``, and'', and by inserting after paragraph (2) the following new paragraph: ``(3) in the case of compensation to non-employees, the portion of payments that have been reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips.''. (2) Returns for payments made for services and direct sales.-- (A) Statement furnished to secretary.--Section 6041A(a) is amended by inserting ``(including a separate accounting of any such amounts reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)'' after ``amount of such payments''. (B) Statement furnished to payee.--Section 6041A(e) is amended by striking ``and'' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ``, and'', and by inserting after paragraph (2) the following new paragraph: ``(3) in the case of subsection (a), the portion of payments that have been reasonably designated as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips.''. (3) Returns relating to third party settlement organizations.-- (A) Statement furnished to secretary.--Section 6050W(a) is amended by striking ``and'' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ``and'', and by adding at the end the following new paragraph: ``(3) in the case of a third party settlement organization, the portion of reportable payment transactions that have been reasonably designated by payors as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips.''. (B) Statement furnished to payee.--Section 6050W(f)(2) is amended by inserting ``(including a separate accounting of any such amounts that have been reasonably designated by payors as cash tips and the occupation described in section 224(d)(1) of the person receiving such tips)'' after ``reportable payment transactions''. (4) Returns related to wages.--Section 6051(a) is amended by striking ``and'' at the end of paragraph (16), by striking the period at the end of paragraph (17) and inserting ``, and'', and by inserting after paragraph (17) the following new paragraph: ``(18) the total amount of cash tips reported by the employee under section 6053(a) and the occupation described in section 224(d)(1) such person.''. (g) Clerical Amendment.--The table of sections for part VII of subchapter B of chapter 1 is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item: ``Sec. 224. Qualified tips.''. (h) Published List of Occupations Traditionally Receiving Tips.--Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall publish a list of occupations which customarily and regularly received tips on or before December 31, 2024, for purposes of section 224(d)(1) of the Internal Revenue Code of 1986 (as added by subsection (a)). (i) Withholding.--The Secretary of the Treasury (or the Secretary's delegate) shall modify the procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 2025, to take into account the deduction allowed under section 224 of such Code (as added by this Act). (j) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. (k) Transition Rule.--In the case of any cash tips required to be reported for periods [[Page S3906]] before January 1, 2026, persons required to file returns or statements under section 6041(a), 6041(d)(3), 6041A(a), 6041A(e)(3), 6050W(a), or 6050W(f)(2) of the Internal Revenue Code of 1986 (as amended by this section) may approximate a separate accounting of amounts designated as cash tips by any reasonable method specified by the Secretary. SEC. 70202. NO TAX ON OVERTIME. (a) Deduction Allowed.--Part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating section 225 as section 226 and by inserting after section 224 the following new section: ``SEC. 225. QUALIFIED OVERTIME COMPENSATION. ``(a) In General.--There shall be allowed as a deduction an amount equal to the qualified overtime compensation received during the taxable year and included on statements furnished to the individual pursuant to section 6041(d)(4) or 6051(a)(19). ``(b) Limitation.-- ``(1) In general.--The amount allowed as a deduction under this section for any taxable year shall not exceed $12,500 ($25,000 in the case of a joint return). ``(2) Limitation based on adjusted gross income.-- ``(A) In general.--The amount allowable as a deduction under subsection (a) (after application of paragraph (1)) shall be reduced (but not below zero) by $100 for each $1,000 by which the taxpayer's modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return). ``(B) Modified adjusted gross income.--For purposes of this paragraph, the term `modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(c) Qualified Overtime Compensation.-- ``(1) In general.--For purposes of this section, the term `qualified overtime compensation' means overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (as used in such section) at which such individual is employed. ``(2) Exclusions.--Such term shall not include any qualified tip (as defined in section 224(d)). ``(d) Social Security Number Required.-- ``(1) In general.--No deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual's social security number. ``(2) Social security number defined.--For purposes of paragraph (1), the term `social security number' shall have the meaning given such term in section 24(h)(7). ``(e) Married Individuals.--If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year. ``(f) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent abuse of the deduction allowed by this section. ``(g) Termination.--No deduction shall be allowed under this section for any taxable year beginning after December 31, 2028.''. (b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting ``, and'', and by adding at the end the following new paragraph: ``(6) the deduction provided in section 225.''. (c) Reporting.-- (1) Requirement to include overtime compensation on w-2.-- Section 6051(a), as amended by the preceding provision of this Act, is amended by striking ``and'' at the end of paragraph (17), by striking the period at the end of paragraph (18) and inserting ``, and'', and by inserting after paragraph (18) the following new paragraph: ``(19) the total amount of qualified overtime compensation (as defined in section 225(c)).''. (2) Payments to persons not treated as employees under tax laws.-- (A) Statement furnished to secretary.--Section 6041(a), as amended by section 70201(e)(1)(A), is amended by inserting ``and a separate accounting of any amount of qualified overtime compensation (as defined in section 225(c))'' after ``occupation of the person receiving such tips''. (B) Statement furnished to payee.--Section 6041(d), as amended by section 70201(e)(1)(B), is amended by striking ``and'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``, and'', and by inserting after paragraph (3) the following new paragraph: ``(4) the portion of payments that are qualified overtime compensation (as defined in section 225(c)).''. (d) Omission of Correct Social Security Number Treated as Mathematical or Clerical Error.--Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of subparagraph (X), by striking the period at the end of subparagraph (Y) and inserting ``, and'', and by inserting after subparagraph (Y) the following new subparagraph: ``(Z) an omission of a correct social security number required under section 225(d) (relating to deduction for qualified overtime).''. (e) Clerical Amendment.--The table of sections for part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating the item relating to section 225 as an item relating to section 226 and by inserting after the item relating to section 224 the following new item: ``Sec. 225. Qualified overtime compensation.''. (f) Withholding.--The Secretary of the Treasury (or the Secretary's delegate) shall modify the procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 for taxable years beginning after December 31, 2025, to take into account the deduction allowed under section 225 of such Code (as added by this Act). (g) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. (h) Transition Rule.--In the case of qualified overtime compensation required to be reported for periods before January 1, 2026, persons required to file returns or statements under section 6051(a)(19), 6041(a), or 6041(d)(4) of the Internal Revenue Code of 1986 (as amended by this section) may approximate a separate accounting of amounts designated as qualified overtime compensation by any reasonable method specified by the Secretary. SEC. 70203. NO TAX ON CAR LOAN INTEREST. (a) In General.--Section 163(h) is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: ``(4) Special rules for taxable years 2025 through 2028 relating to qualified passenger vehicle loan interest.-- ``(A) In general.--In the case of taxable years beginning after December 31, 2024, and before January 1, 2029, for purposes of this subsection the term `personal interest' shall not include qualified passenger vehicle loan interest. ``(B) Qualified passenger vehicle loan interest defined.-- ``(i) In general.--For purposes of this paragraph, the term `qualified passenger vehicle loan interest' means any interest which is paid or accrued during the taxable year on indebtedness incurred by the taxpayer after December 31, 2024, for the purchase of, and that is secured by a first lien on, an applicable passenger vehicle for personal use. ``(ii) Exceptions.--Such term shall not include any amount paid or incurred on any of the following: ``(I) A loan to finance fleet sales. ``(II) A loan incurred for the purchase of a commercial vehicle that is not used for personal purposes. ``(III) Any lease financing. ``(IV) A loan to finance the purchase of a vehicle with a salvage title. ``(V) A loan to finance the purchase of a vehicle intended to be used for scrap or parts. ``(iii) VIN requirement.--Interest shall not be treated as qualified passenger vehicle loan interest under this paragraph unless the taxpayer includes the vehicle identification number of the applicable passenger vehicle described in clause (i) on the return of tax for the taxable year. ``(C) Limitations.-- ``(i) Dollar limit.--The amount of interest taken into account by a taxpayer under subparagraph (B) for any taxable year shall not exceed $10,000. ``(ii) Limitation based on modified adjusted gross income.-- ``(I) In general.--The amount which is otherwise allowable as a deduction under subsection (a) as qualified passenger vehicle loan interest (determined without regard to this clause and after the application of clause (i)) shall be reduced (but not below zero) by $200 for each $1,000 (or portion thereof) by which the modified adjusted gross income of the taxpayer for the taxable year exceeds $100,000 ($200,000 in the case of a joint return). ``(II) Modified adjusted gross income.--For purposes of this clause, the term `modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. ``(D) Applicable passenger vehicle.--The term `applicable passenger vehicle' means any vehicle-- ``(i) the original use of which commences with the taxpayer, ``(ii) which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails), ``(iii) which has at least 2 wheels, ``(iv) which is a car, minivan, van, sport utility vehicle, pickup truck, or motorcycle, ``(v) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, and ``(vi) which has a gross vehicle weight rating of less than 14,000 pounds. Such term shall not include any vehicle the final assembly of which did not occur within the United States. ``(E) Other definitions and special rules.--For purposes of this paragraph-- ``(i) Final assembly.--For purposes of subparagraph (D), the term `final assembly' means the process by which a manufacturer produces a vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component [[Page S3907]] parts are permanently installed in or on the vehicle. ``(ii) Treatment of refinancing.--Indebtedness described in subparagraph (B) shall include indebtedness that results from refinancing any indebtedness described in such subparagraph, and that is secured by a first lien on the applicable passenger vehicle with respect to which the refinanced indebtedness was incurred, but only to the extent the amount of such resulting indebtedness does not exceed the amount of such refinanced indebtedness. ``(iii) Related parties.--Indebtedness described in subparagraph (B) shall not include any indebtedness owed to a person who is related (within the meaning of section 267(b) or 707(b)(1)) to the taxpayer.''. (b) Deduction Allowed to Non-itemizers.--Section 63(b), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of paragraph (5), by striking the period at the end of paragraph (6) and inserting ``and'', and by adding at the end the following new paragraph: ``(7) so much of the deduction allowed by section 163(a) as is attributable to the exception under section 163(h)(4)(A).''. (c) Reporting.-- (1) In general.--Subpart B of part III of subchapter A of chapter 61 is amended by adding at the end the following new section: ``SEC. 6050AA. RETURNS RELATING TO APPLICABLE PASSENGER VEHICLE LOAN INTEREST RECEIVED IN TRADE OR BUSINESS FROM INDIVIDUALS. ``(a) In General.--Any person-- ``(1) who is engaged in a trade or business, and ``(2) who, in the course of such trade or business, receives from any individual interest aggregating $600 or more for any calendar year on a specified passenger vehicle loan, shall make the return described in subsection (b) with respect to each individual from whom such interest was received at such time as the Secretary may provide. ``(b) Form and Manner of Returns.--A return is described in this subsection if such return-- ``(1) is in such form as the Secretary may prescribe, and ``(2) contains-- ``(A) the name and address of the individual from whom the interest described in subsection (a)(2) was received, ``(B) the amount of such interest received for the calendar year, ``(C) the amount of outstanding principal on the specified passenger vehicle loan as of the beginning of such calendar year, ``(D) the date of the origination of such loan, ``(E) the year, make, model, and vehicle identification number of the applicable passenger vehicle which secures such loan (or such other description of such vehicle as the Secretary may prescribe), and ``(F) such other information as the Secretary may prescribe. ``(c) Statements to Be Furnished to Individuals With Respect to Whom Information Is Required.--Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing-- ``(1) the name, address, and phone number of the information contact of the person required to make such return, and ``(2) the information described in subparagraphs (B), (C), (D), and (E) of subsection (b)(2) with respect to such individual (and such information as is described in subsection (b)(2)(F) with respect to such individual as the Secretary may provide for purposes of this subsection). The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made. ``(d) Definitions.--For purposes of this section-- ``(1) In general.--Terms used in this section which are also used in paragraph (4) of section 163(h) shall have the same meaning as when used in such paragraph. ``(2) Specified passenger vehicle loan.--The term `specified passenger vehicle loan' means the indebtedness described in section 163(h)(4)(B) with respect to any applicable passenger vehicle. ``(e) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent the duplicate reporting of information under this section. ``(f) Applicability.--No return shall be required under this section for any period to which section 163(h)(4) does not apply.''. (2) Penalties.--Section 6724(d) is amended-- (A) in paragraph (1)(B), by striking ``or'' at the end of clause (xxvii), by striking ``and'' at the end of clause (xxviii) and inserting ``or'', and by adding at the end the following new clause: ``(xxix) section 6050AA(a) (relating to returns relating to applicable passenger vehicle loan interest received in trade or business from individuals),'', and (B) in paragraph (2), by striking ``or'' at the end of subparagraph (KK), by striking the period at the end of subparagraph (LL) and inserting ``, or'', and by inserting after subparagraph (LL) the following new subparagraph: ``(MM) section 6050AA(c) (relating to statements relating to applicable passenger vehicle loan interest received in trade or business from individuals).''. (d) Conforming Amendments.-- (1) Section 56(e)(1)(B) is amended by striking ``section 163(h)(4)'' and inserting ``section 163(h)(5)''. (2) The table of sections for subpart B of part III of subchapter A of chapter 61 is amended by adding at the end the following new item: ``Sec. 6050AA. Returns relating to applicable passenger vehicle loan interest received in trade or business from individuals.''. (e) Effective Date.--The amendments made by this section shall apply to indebtedness incurred after December 31, 2024. SEC. 70204. TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM. (a) Trump Accounts.-- (1) In general.--Subchapter F of chapter 1 is amended by adding at the end the following new part: ``PART IX--TRUMP ACCOUNTS ``Sec. 530A. Trump accounts. ``SEC. 530A. TRUMP ACCOUNTS. ``(a) General Rule.--Except as provided in this section or under regulations or guidance established by the Secretary, a Trump account shall be treated for purposes of this title in the same manner as an individual retirement account under section 408(a). ``(b) Trump Account.--For purposes of this section-- ``(1) In general.--The term `Trump account' means an individual retirement account (as defined in section 408(a)) which is not designated as a Roth IRA and which meets the following requirements: ``(A) The account-- ``(i) is created or organized by the Secretary for the exclusive benefit of an eligible individual or such eligible individual's beneficiaries, or ``(ii) is-- ``(I) created or organized in the United States for the exclusive benefit of an individual who has not attained the age of 18 before the end of the calendar year, or such individual's beneficiaries, and ``(II) funded by a qualified rollover contribution. ``(B) The account is designated (in such manner as the Secretary shall prescribe) at the time of the establishment of the account as a Trump account. ``(C) The written governing instrument creating the account meets the following requirements: ``(i) No contribution will be accepted-- ``(I) before the date that is 12 months after the date of the enactment of this section, or ``(II) in the case of a contribution made in any calendar year before the calendar year in which the account beneficiary attains age 18, if such contribution would result in aggregate contributions (other than exempt contributions) for such calendar year in excess of the contribution limit specified in subsection (c)(2)(A). ``(ii) Except as provided in subsection (d), no distribution will be allowed before the first day of the calendar year in which the account beneficiary attains age 18. ``(iii) No part of the account funds will be invested in any asset other than an eligible investment during any period before the first day of the calendar year in which the account beneficiary attains age 18. ``(2) Eligible individual.--The term `eligible individual' means any individual-- ``(A) who has not attained the age of 18 before the close of the calendar year in which the election under subparagraph (C) is made, ``(B) for whom a social security number (within the meaning of section 24(h)(7)) has been issued before the date on which an election under subsection (C) is made, and ``(C) for whom-- ``(i) an election is made under this subparagraph by the Secretary if the Secretary determines (based on information available to the Secretary from tax returns or otherwise) that such individual meets the requirements of subparagraphs (A) and (B) and no prior election has been made for such individual under clause (ii), or ``(ii) an election is made under this subparagraph by a person other than the Secretary (at such time and in such manner as the Secretary may prescribe) for the establishment of a Trump account if no prior election has been made for such individual under clause (i). ``(3) Eligible investment.-- ``(A) In general.--The term `eligible investment' means any mutual fund or exchange traded fund which-- ``(i) tracks the returns of a qualified index, ``(ii) does not use leverage, ``(iii) does not have annual fees and expenses of more than 0.1 percent of the balance of the investment in the fund, and ``(iv) meets such other criteria as the Secretary determines appropriate for purposes of this section. ``(B) Qualified index.--The term `qualified index' means-- ``(i) the Standard and Poor's 500 stock market index, or ``(ii) any other index-- ``(I) which is comprised of equity investments in United States companies, and ``(II) for which regulated futures contracts (as defined in section 1256(g)(1)) are traded on a qualified board or exchange (as defined in section 1256(g)(7)). Such term shall not include any industry or sector-specific index, but may include an index based on market capitalization. ``(4) Account beneficiary.--The term `account beneficiary' means the individual on [[Page S3908]] whose behalf the Trump account was established. ``(c) Treatment of Contributions.-- ``(1) No deduction allowed.--No deduction shall be allowed under section 219 for any contribution which is made before the first day of the calendar year in which the account beneficiary attains age 18. ``(2) Contribution limit.--In the case of any contribution made before the calendar year in which the account beneficiary attains age 18-- ``(A) In general.--The aggregate amount of contributions (other than exempt contributions) for such calendar year shall not exceed $5,000. ``(B) Exempt contribution.--For purposes of this paragraph, the term `exempt contribution' means-- ``(i) a qualified rollover contribution, ``(ii) any qualified general contribution, or ``(iii) any contribution provided under section 6434. ``(C) Cost-of-living adjustment.-- ``(i) In general.--In the case of any calendar year after 2027, the $5,000 amount under subparagraph (A) shall be increased by an amount equal to-- ``(I) such dollar amount, multiplied by ``(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting `calendar year 2026' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(ii) Rounding.--If any increase under this subparagraph is not a multiple of $100, such amount shall be rounded to the next lower multiple of $100. ``(3) Timing of contributions.--Section 219(f)(3) shall not apply to any contribution made to a Trump account for any taxable year ending before the calendar year in which the account beneficiary attains age 18. ``(d) Distributions.-- ``(1) In general.--Except as otherwise provided in this subsection, no distribution shall be allowed before the first day of the calendar year in which the account beneficiary attains age 18. ``(2) Tax treatment of allowable distributions.--For purposes of applying section 72 to any amount distributed from a Trump account, the investment in the contract shall not include-- ``(A) any qualified general contribution, ``(B) any contribution provided under section 6434, and ``(C) the amount of any contribution which is excluded from gross income under section 128. ``(3) Qualified rollover contributions.--Paragraph (1) shall not apply to any distribution which is a qualified rollover contribution and the amount of such distribution shall not be included in the gross income of the beneficiary. ``(4) Qualified able rollover contributions.-- ``(A) In general.--Paragraph (1) shall not apply to any distribution which is a qualified ABLE rollover contribution and the amount of such distribution shall not be included in the gross income of the beneficiary. ``(B) Qualified able rollover contribution.--For purposes of this section, the term `qualified ABLE rollover contribution' means an amount which is paid during the calendar year in which the account beneficiary attains age 17 in a direct trustee-to-trustee transfer from a Trump account maintained for the benefit of the account beneficiary to an ABLE account (as defined in section 529A(e)(6)) for the benefit of the such account beneficiary, but only if the amount of such payment is equal to the entire balance of the Trump account from which the payment is made. ``(5) Distributions of excess contributions.--In the case of any contribution which is made before the calendar year in which the account beneficiary attains age 18 and which is in excess of the limitation in effect under subsection (c)(2)(A) for the calendar year-- ``(A) paragraph (1) shall not apply to the distribution of such excess, ``(B) the amount of such distribution shall not be included in gross income of the account beneficiary, and ``(C) the tax imposed by this chapter on the distributee for the taxable year in which the distribution is made shall be increased by 100 percent of the amount of net income attributable to such excess (determined without regard to subparagraph (B)). ``(6) Treatment of death of account beneficiary.--If, by reason of the death of the account beneficiary before the first day of the calendar year in which the account beneficiary attains age 18, any person acquires the account beneficiary's interest in the Trump account-- ``(A) paragraph (1) shall not apply, ``(B) such account shall cease to be a Trump account as of the date of death, and ``(C) an amount equal to the fair market value of the assets (reduced by the investment in the contract) in such account on such date shall-- ``(i) if such person is not the estate of such beneficiary, be includible in such person's gross income for the taxable year which includes such date, or ``(ii) if such person is the estate of such beneficiary, be includible in such beneficiary's gross income for the last taxable year of such beneficiary. ``(e) Qualified Rollover Contribution.--For purposes of this section, the term `qualified rollover contribution' means an amount which is paid in a direct trustee-to-trustee transfer from a Trump account maintained for the benefit of the account beneficiary to a Trump account maintained for such beneficiary, but only if the amount of such payment is equal to the entire balance of the Trump account from which the payment is made. ``(f) Qualified General Contribution.--For purposes of this section-- ``(1) In general.--The term `qualified general contribution' means any contribution which-- ``(A) is made by the Secretary pursuant to a general funding contribution, ``(B) is made to the Trump account of an account beneficiary in the qualified class of account beneficiaries specified in the general funding contribution, and ``(C) is in an amount which is equal to the ratio of-- ``(i) the amount of such general funding contribution, to ``(ii) the number of account beneficiaries in such qualified class. ``(2) General funding contribution.--The term `general funding contribution' means a contribution which-- ``(A) is made by-- ``(i) an entity described in section 170(c)(1) (other than a possession of the United States or a political subdivision thereof) or an Indian tribal government, or ``(ii) an organization described in section 501(c)(3) and exempt from tax under section 501(a), and ``(B) which specifies a qualified class of account beneficiaries to whom such contribution is to be distributed. ``(3) Qualified class.-- ``(A) In general.--The term `qualified class' means any of the following: ``(i) All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made. ``(ii) All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made and who reside in one or more States or other qualified geographic areas specified by the terms of the general funding contribution. ``(iii) All account beneficiaries who have not attained the age of 18 before the close of the calendar year in which the contribution is made and who were born in one or more calendar years specified by the terms of the general funding contribution. ``(B) Qualified geographic area.--The term `qualified geographic area' means any geographic area in which not less than 5,000 account beneficiaries reside and which is designated by the Secretary as a qualified geographic area under this subparagraph. ``(g) Trustee Selection.--In the case of any Trump account created or organized by the Secretary, the Secretary shall take into account the following criteria in selecting the trustee: ``(1) The history of reliability and regulatory compliance of the trustee. ``(2) The customer service experience of the trustee. ``(3) The costs imposed by the trustee on the account or the account beneficiary. ``(h) Other Special Rules and Coordination With Individual Retirement Account Rules.-- ``(1) In general.--The rules of subsections (k) and (p) of section 408 shall not apply to a Trump account, and the rules of subsections (d) and (i) of section 408 shall not apply to a Trump account for any taxable year beginning before the calendar year in which the account beneficiary attains age 18. ``(2) Custodial accounts.--In the case of a Trump account, section 408(h) shall be applied by substituting `a Trump account described in section 530A(b)(1)' for `an individual retirement account described in subsection (a)'. ``(3) Contributions.--In the case of any taxable year beginning before the first day of the calendar year in which the account beneficiary attains age 18, a contribution to a Trump account shall not be taken into account in applying any contribution limit to any individual retirement plan other than a Trump account. ``(4) Distributions.--Section 408(d)(2) shall be applied separately with respect to Trump Accounts and other individual retirement plans. ``(5) Excess contributions.--For purposes of applying section 4973(b) to a Trump account for any taxable year beginning before the first day of the calendar year in which the account beneficiary attains age 18, the term `excess contributions' means the sum of-- ``(A) the amount by which the amount contributed to the account for the calendar year in which taxable year begins exceeds the amount permitted to be contributed to the account under subsection (c)(2), and ``(B) the amount determined under this paragraph for the preceding taxable year. For purposes of this paragraph, the excess contributions for a taxable year are reduced by the distributions to which subsection (d)(5) applies that are made during the taxable year or by the date prescribed by law (including extensions of time) for filing the account beneficiary's return for the taxable year. ``(i) Reports.-- ``(1) In general.--The trustee of a Trump account shall make such reports regarding such account to the Secretary and to the beneficiary of the account at such time and in such manner as may be required by the [[Page S3909]] Secretary. Such reports shall include information with respect to-- ``(A) contributions (including the amount and source of any contribution in excess of $25 made from a person other than the Secretary, the account beneficiary, or the parent or legal guardian of the account beneficiary), ``(B) distributions (including distributions which are qualified rollover contributions), ``(C) the fair market value of the account, ``(D) the investment in the contract with respect to such account, and ``(E) such other matters as the Secretary may require. ``(2) Qualified rollover contributions.--Not later than 30 days after the date of any qualified rollover contribution, the trustee of the Trump account to which the contribution was made shall make a report to the Secretary. Such report shall include-- ``(A) the name, address, and social security number of the account beneficiary, ``(B) the name and address of such trustee, ``(C) the account number, ``(D) the routing number of the trustee, and ``(E) such other information as the Secretary may require. ``(3) Period of reporting.--This subsection shall not apply to any period after the calendar year in which the beneficiary attains age 17.''. (2) Qualified able rollover contributions exempt from able contribution limitation.-- (A) In general.--Section 529A(b)(2)(B) is amended by inserting ``or received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)'' after ``except as provided in the case of contributions under subsection (c)(1)(C)''. (B) Prohibition on excess contributions.--The second sentence of section 529A(b)(6) is amended by inserting ``but do not include any contributions received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)'' before the period at the end. (C) Conforming amendment.--Section 4973(h)(1) is amended by inserting ``or contributions received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)'' after ``other than contributions under section 529A(c)(1)(C)''. (3) Failure to provide reports on trump accounts.--Section 6693(a)(2) is amended by striking ``and'' at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting ``, and'', and by inserting after subparagraph (F) the following new subparagraph: ``(G) section 530A(i) (relating to Trump accounts).''. (4) Clerical amendment.-- (A) The table of parts for subchapter F of chapter 1 is amended by adding at the end the following new item: ``PART IX--Trump Accounts''. (b) Employer Contributions.-- (1) In general.--Part III of subchapter B of chapter 1 is amended by inserting after section 127 the following new section: ``SEC. 128. EMPLOYER CONTRIBUTIONS TO TRUMP ACCOUNTS. ``(a) In General.--Gross income of an employee does not include amounts paid by the employer as a contribution to the Trump account of such employee or of any dependent of such employee if the amounts are paid or incurred pursuant to a program which is described in subsection (c). ``(b) Limitation.-- ``(1) In general.--The amount which may be excluded under subsection (a) with respect to any employee shall not exceed $2,500. ``(2) Inflation adjustment.-- ``(A) In general.--In the case of any taxable year beginning after 2027, the $2,500 amount in paragraph (1) shall be increased by an amount equal to-- ``(i) such dollar amount, multiplied by ``(ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting `calendar year 2026' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(B) Rounding.--If any increase determined under subparagraph (A) is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100. ``(c) Trump Account Contribution Program.--For purposes of this section, a Trump account contribution program is a separate written plan of an employer for the exclusive benefit of his employees to provide contributions to the Trump accounts of such employees or dependents of such employees which meets requirements similar to the requirements of paragraphs (2), (3), (6), (7), and (8) of section 129(d).''. (2) Clerical amendment.--The table of sections for part III of subchapter B of chapter 1 is amended by inserting after the item relating to section 127 the following new item: ``Sec. 128. Employer contributions to Trump accounts.''. (c) Certain Contributions Excluded From Gross Income.-- (1) In general.--Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section: ``SEC. 139J. CERTAIN CONTRIBUTIONS TO TRUMP ACCOUNTS. ``(a) In General.--Gross income of an account beneficiary shall not include any qualified general contribution to a Trump account of the account beneficiary. ``(b) Definitions.--Any term used in this section which is used in section 530A shall have the meaning given such term under section 530A.''. (2) Clerical amendment.--The table of sections for part III of subchapter B is amended by inserting before the item relating to section 140 the following new item: ``Sec. 139J. Certain contributions to Trump accounts.''. (d) Trump Accounts Contribution Pilot Program.-- (1) In general.--Subchapter B of chapter 65 is amended by adding at the end the following new section: ``SEC. 6434. TRUMP ACCOUNTS CONTRIBUTION PILOT PROGRAM. ``(a) In General.--In the case of an individual who makes an election under this section with respect to an eligible child of the individual, such eligible child shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year for which the election was made) in an amount equal to $1,000. ``(b) Refund of Payment.--The amount treated as a payment under subsection (a) shall be paid by the Secretary to the Trump account with respect to which such eligible child is the account beneficiary. ``(c) Eligible Child.--For purposes of this section, the term `eligible child ' means a qualifying child (as defined in section 152(c))-- ``(1) who is born after December 31, 2024, and before January 1, 2029, ``(2) with respect to whom no prior election has been made under this section by such individual or any other individual, ``(3) who is a United States citizen, and ``(4) at least one parent of whom was a United States citizen at the time of such qualifying child's birth. ``(d) Election.--An election under this section shall be made at such time and in such manner as the Secretary shall provide. ``(e) Social Security Number Required.-- ``(1) In general.--This section shall not apply to any taxpayer unless such individual includes with the election made under this section-- ``(A) such individual's social security number, and ``(B) the social security number of the eligible child with respect to whom the election is made. ``(2) Social security number defined.--For purposes of paragraph (1), the term `social security number' shall have the meaning given such term in section 24(h)(7), determined by substituting `before the date of the election made under section 6434' for `before the due date of such return' in subparagraph (B) thereof. ``(f) Exception From Reduction or Offset.--Any payment made to any individual under this section shall not be-- ``(1) subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 or any similar authority permitting offset, or ``(2) reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection. ``(g) Special Rule Regarding Interest.--The period determined under section 6611(a) with respect to any payment under this section shall not begin before January 1, 2028. ``(h) Mirror Code Possessions.--In the case of any possession of the United States with a mirror code tax system (as defined in section 24(k)), this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated. ``(i) Definitions.--For purposes of this section, the terms `Trump account' and `account beneficiary' have the meaning given such terms in section 530A(b).''. (2) Penalty for negligent claim or fraudulent claim.--Part I of subchapter A of chapter 68 is amended by adding at the end the following new section: ``SEC. 6659. IMPROPER CLAIM FOR TRUMP ACCOUNT CONTRIBUTION PILOT PROGRAM CREDIT. ``(a) In General.--In the case of any individual who makes an election under section 6434 with respect to an individual who is not an eligible child of the taxpayer-- ``(1) if such election was made due to negligence or disregard of the rules or regulations, there shall be imposed a penalty of $500, or ``(2) if such election was made due to fraud, there shall be imposed a penalty of $1,000. ``(b) Definitions.-- ``(1) Eligible child.--The term `eligible child' has the meaning given such term under section 6434. ``(2) Negligence; disregard.--The terms `negligence' and `disregard' have the same meaning as when such terms are used in section 6662.''. (3) Omission of correct social security number treated as mathematical or clerical error.--Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of subparagraph (Y), by striking the period at the end of subparagraph (Z) and inserting ``, and'', and by inserting after subparagraph (Z) the following new subparagraph: ``(AA) an omission of a correct social security number required under section 6434(e)(1) (relating to the Trump accounts contribution pilot program).''. (4) Conforming amendments.-- (A) The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item: ``Sec. 6434. Trump accounts contribution pilot program.''. [[Page S3910]] (B) The table of sections for part I of subchapter A of chapter 68 is amended by inserting after the item relating to section 6658 the following new item: ``Sec. 6659. Improper claim for Trump account contribution pilot program credit.''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. (f) Funding.--In addition to amounts otherwise available, there is appropriated to the Department of the Treasury, out of any money in the Treasury not otherwise appropriated, $410,000,000, to remain available until September 30, 2034, to carry out the amendments made by this section. CHAPTER 3--ESTABLISHING CERTAINTY AND COMPETITIVENESS FOR AMERICAN JOB CREATORS Subchapter A--Permanent U.S. Business Tax Reform and Boosting Domestic Investment SEC. 70301. FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY. (a) Made Permanent.-- (1) In general.--Section 168(k)(2)(A) is amended by adding ``and'' at the end of clause (i), by striking ``, and'' at the end of clause (ii) and inserting a period, and by striking clause (iii). (2) Property with longer production periods.--Section 168(k)(2)(B) is amended-- (A) in clause (i), by striking subclauses (II) and (III) and redesignating subclauses (IV), (V), and (VI), as subclauses (II), (III), and (IV), respectively, and (B) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively. (3) Self-constructed property.--Section 168(k)(2)(E) is amended by striking clause (i) and redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively. (4) Certain plants.--Section 168(k)(5)(A) is amended by striking ``planted before January 1, 2027, or is grafted before such date to a plant that has already been planted,'' in the matter preceding clause (i) and inserting ``planted or grafted''. (5) Conforming amendments.-- (A) Section 168(k)(2)(A)(ii) is amended by striking ``clause (ii) of subparagraph (E)'' and inserting ``clause (i) of subparagraph (E)''. (B) Section 168(k)(2)(C)(i) is amended by striking ``and subclauses (II) and (III) of subparagraph (B)(i)''. (C) Section 168(k)(2)(C)(ii) is amended by striking ``subparagraph (B)(iii)'' and inserting ``subparagraph (B)(ii)''. (D) Section 460(c)(6)(B) is amended by striking ``which'' and all that follows through the period and inserting ``which has a recovery period of 7 years or less.''. (b) 100 Percent Expensing.-- (1) In general.--Section 168(k) is amended-- (A) in paragraph (1)(A), by striking ``the applicable percentage'' and inserting ``100 percent'', and (B) by striking paragraphs (6) and (8). (2) Certain plants.--Section 168(k)(5)(A)(i) is amended by striking ``the applicable percentage'' and inserting ``100 percent''. (3) Transitional election of reduced percentage.--Section 168(k)(10) is amended by striking subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting before subparagraph (C) (as so redesignated) the following new subparagraphs: ``(A) In general.--In the case of qualified property placed in service by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (1)(A) shall be applied-- ``(i) in the case of property which is not described in clause (ii), by substituting `40 percent' for `100 percent', or ``(ii) in the case of property which is described in subparagraph (B) or (C) of paragraph (2), by substituting `60 percent' for `100 percent'. ``(B) Specified plants.--In the case of any specified plant planted or grafted by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (5)(A)(i) shall be applied by substituting `40 percent' for `100 percent'.''. (c) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants which are planted or grafted after January 19, 2025. (3) Transitional election of reduced percentage.--The amendment made by subsection (b)(3) shall apply to taxable years ending after January 19, 2025. (4) Acquisition date determination.--For purposes of paragraph (1), property shall not be treated as acquired after the date on which a written binding contract is entered into for such acquisition. SEC. 70302. FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERIMENTAL EXPENDITURES. (a) In General.--Part VI of subchapter B of chapter 1 is amended by inserting after section 174 the following new section: ``SEC. 174A. DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES. ``(a) Treatment as Expenses.--Notwithstanding section 263, there shall be allowed as a deduction any domestic research or experimental expenditures which are paid or incurred by the taxpayer during the taxable year. ``(b) Domestic Research or Experimental Expenditures.--For purposes of this section, the term `domestic research or experimental expenditures' means research or experimental expenditures paid or incurred by the taxpayer in connection with the taxpayer's trade or business other than such expenditures which are attributable to foreign research (within the meaning of section 41(d)(4)(F)). ``(c) Amortization of Certain Domestic Research or Experimental Expenditures.-- ``(1) In general.--At the election of the taxpayer, made in accordance with regulations or other guidance provided by the Secretary, in the case of domestic research or experimental expenditures which would (but for subsection (a)) be chargeable to capital account but not chargeable to property of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion), subsection (a) shall not apply and the taxpayer shall-- ``(A) charge such expenditures to capital account, and ``(B) be allowed an amortization deduction of such expenditures ratably over such period of not less than 60 months as may be selected by the taxpayer (beginning with the month in which the taxpayer first realizes benefits from such expenditures). ``(2) Time for and scope of election.--The election provided by paragraph (1) may be made for any taxable year, but only if made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof). The method so elected, and the period selected by the taxpayer, shall be adhered to in computing taxable income for the taxable year for which the election is made and for all subsequent taxable years unless, with the approval of the Secretary, a change to a different method (or to a different period) is authorized with respect to part or all of such expenditures. The election shall not apply to any expenditure paid or incurred during any taxable year before the taxable year for which the taxpayer makes the election. ``(d) Special Rules.-- ``(1) Land and other property.--This section shall not apply to any expenditure for the acquisition or improvement of land, or for the acquisition or improvement of property to be used in connection with the research or experimentation and of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion); but for purposes of this section allowances under section 167, and allowances under section 611, shall be considered as expenditures. ``(2) Exploration expenditures.--This section shall not apply to any expenditure paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral (including oil and gas). ``(3) Software development.--For purposes of this section, any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure.''. (b) Coordination With Certain Other Provisions.-- (1) Foreign research expenses.--Section 174 is amended-- (A) in subsection (a)-- (i) by striking ``a taxpayer's specified research or experimental expenditures'' and inserting ``a taxpayer's foreign research or experimental expenditures'', and (ii) by striking ``over the 5-year period (15-year period in the case of any specified research or experimental expenditures which are attributable to foreign research (within the meaning of section 41(d)(4)(F)))'' in paragraph (2)(B) and inserting ``over the 15-year period'', (B) in subsection (b)-- (i) by striking ``specified research'' and inserting ``foreign research'', (ii) by inserting ``and which are attributable to foreign research (within the meaning of section 41(d)(4)(F))'' before the period at the end, and (iii) by striking ``Specified'' in the heading thereof and inserting ``Foreign'', and (C) in subsection (d)-- (i) by striking ``specified research or experimental expenditures'' and inserting ``foreign research or experimental expenditures'', and (ii) by inserting ``or reduction to amount realized'' after ``no deduction''. (2) Research credit.-- (A) Section 41(d)(1)(A) is amended to read as follows: ``(A) with respect to which expenditures are treated as domestic research or experimental expenditures under section 174A,''. (B) Section 280C(c)(1) is amended to read as follows: ``(1) In general.--The domestic research or experimental expenditures otherwise taken into account under section 174A shall be reduced by the amount of the credit allowed under section 41(a).''. (3) AMT adjustment.--Section 56(b)(2) is amended-- (A) in subparagraph (A)-- [[Page S3911]] (i) by striking ``or 174(a)'' in the matter preceding clause (i) and inserting ``, 174(a), or 174A(a)'', and (ii) by striking ``research and experimental expenditures described in section 174(a)'' in clause (ii) thereof and inserting ``foreign research or experimental expenditures described in section 174(a) and domestic research or experimental expenditures in section 174A(a)'', and (B) in subparagraph (C), by inserting ``or 174A(a)'' after ``174(a)''. (4) Optional 10-year writeoff.--Section 59(e)(2)(B) is amended by striking ``section 174(a) (relating to research and experimental expenditures)'' and inserting ``section 174A(a) (relating to domestic research or experimental expenditures)''. (5) Qualified small issue bonds.--Section 144(a)(4)(C)(iv) is amended by striking ``174(a)'' and inserting ``174A(a)''. (6) Start-up expenditures.--Section 195(c)(1) is amended by striking ``or 174'' in the last sentence and inserting ``174, or 174A''. (7) Capital expenditures.-- (A) Section 263(a)(1)(B) is amended by inserting ``or 174A'' after ``174''. (B) Section 263A(c)(2) is amended by inserting ``or 174A'' after ``174''. (8) Active business computer software royalties.--Section 543(d)(4)(A)(i) is amended by inserting ``174A,'' after ``174,''. (9) Source rules.--Section 864(g)(2) is amended-- (A) by striking ``research and experimental expenditures within the meaning of section 174'' in the first sentence and inserting ``foreign research or experimental expenditures within the meaning of section 174 or domestic research or experimental expenditures within the meaning of section 174A'', and (B) in the last sentence-- (i) by striking ``treated as deferred expenses under subsection (b) of section 174'' and inserting ``allowed as an amortization deduction under section 174(a) or section 174A(c),'', and (ii) by striking ``such subsection'' and inserting ``such section (as the case may be)''. (10) Basis adjustment.--Section 1016(a)(14) is amended by striking ``deductions as deferred expenses under section 174(b)(1) (relating to research and experimental expenditures)'' and inserting ``deductions under section 174 or 174A(c)''. (11) Small business stock.--Section 1202(e)(2)(B) is amended by striking ``which may be treated as research and experimental expenditures under section 174'' and inserting ``which are treated as foreign research or experimental expenditures under section 174 or domestic research or experimental expenditures under section 174A''. (c) Change in Method of Accounting.-- (1) In general.--The amendments made by subsection (a) shall be treated as a change in method of accounting for purposes of section 481 of the Internal Revenue Code of 1986 and-- (A) such change shall be treated as initiated by the taxpayer, (B) such change shall be treated as made with the consent of the Secretary, and (C) such change shall be applied only on a cut-off basis for any domestic research or experimental expenditures (as defined in section 174A(b) of such Code (as added by this section) and determined by applying the rules of section 174A(d) of such Code) paid or incurred in taxable years beginning after December 31, 2024, and no adjustments under section 481(a) shall be made. (2) Special rules.--In the case of a taxable year which begins after December 31, 2024, and ends before the date of the enactment of this Act-- (A) paragraph (1)(C) shall not apply, and (B) the change in method of accounting under paragraph (1) shall be applied on a modified cut-off basis, taking into account for purposes of section 481(a) of such Code only the domestic research or experimental expenditures (as defined in section 174A(b) of such Code (as added by this section) and determined by applying the rules of section 174A(d) of such Code) paid or incurred in such taxable year but not allowed as a deduction in such taxable year. (d) Clerical Amendment.--The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 174 the following new item: ``Sec. 174A. Domestic research or experimental expenditures.''. (e) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection or subsection (f)(1), the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2024. (2) Treatment of foreign research or experimental expenditures upon disposition.-- (A) In general.--The amendment by subsection (b)(1)(C)(ii) shall apply to property disposed, retired, or abandoned after May 12, 2025. (B) No inference.--The amendment made by subsection (b)(1)(C)(ii) shall not be construed to create any inference with respect to the proper application of section 174(d) of the Internal Revenue Code of 1986 with respect to taxable years beginning before May 13, 2025. (3) Coordination with research credit.--The amendment made by subsection (b)(2)(B) shall apply to taxable years beginning after December 31, 2024. (4) No inference with respect to coordination with research credit for prior periods.--The amendment made by subsection (b)(2)(B) shall not be construed to create any inference with respect to the proper application of section 280C(c) of the Internal Revenue Code of 1986 with respect to taxable years beginning before January 1, 2025. (f) Transition Rules.-- (1) Election for retroactive application by certain small businesses.-- (A) In general.--At the election of an eligible taxpayer, paragraphs (1) and (3) of subsection (e) shall each be applied by substituting ``December 31, 2021'' for ``December 31, 2024''. An election made under this subparagraph shall be made in such manner as the Secretary may provide and not later than the date that is 1 year after the date of the enactment of this Act. The taxpayer shall file an amended return for each taxable year affected by such election. (B) Eligible taxpayer.--For purposes of this paragraph, the term ``eligible taxpayer'' means any taxpayer (other than a tax shelter prohibited from using the cash receipts and disbursements method of accounting under section 448(a)(3)) which meets the gross receipts test of section 448(c) for the first taxable year beginning after December 31, 2024. (C) Election treated as change in method of accounting.--In the case of any taxpayer which elects the application of subparagraph (A)-- (i) such election may be treated as a change in method of accounting for purposes of section 481 of such Code for the taxpayer's first taxable year affected by such election, (ii) such change shall be treated as initiated by the taxpayer for such taxable year, (iii) such change shall be treated as made with the consent of the Secretary, and (iv) subsection (c) shall not apply to such taxpayer. (D) Election regarding coordination with research credit.-- An election under section 280C(c)(2) of the Internal Revenue Code of 1986 (or revocation of such election) for any taxable year beginning after December 31, 2021, by an eligible taxpayer making an election under subparagraph (A) shall not fail to be treated as timely made (or as made on the return) if made during the 1-year period beginning on the date of the enactment of this Act on an amended return for such taxable year. (2) Election to deduct certain unamortized amounts paid or incurred in taxable years beginning before january 1, 2025.-- (A) In general.--In the case of any domestic research or experimental expenditures (as defined in section 174A, as added by subsection (a)) which are paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025, and which was charged to capital account, a taxpayer may elect-- (i) to deduct any remaining unamortized amount with respect to such expenditures in the first taxable year beginning after December 31, 2024, or (ii) to deduct such remaining unamortized amount with respect to such expenditures ratably over the 2-taxable year period beginning with the first taxable year beginning after December 31, 2024. (B) Change in method of accounting.--In the case of a taxpayer who makes an election under this paragraph-- (i) such taxpayer shall be treated as initiating a change in method of accounting for purposes of section 481 of the Internal Revenue Code of 1986 with respect to the expenditures to which the election applies, (ii) such change shall be treated as made with the consent of the Secretary, and (iii) such change shall be applied only on a cut-off basis for such expenditures and no adjustments under section 481(a) shall be made. (C) Regulations.--The Secretary of the Treasury (or the Secretary's delegate) shall publish such guidance or regulations as may be necessary to carry out the purposes of this paragraph, including regulations or guidance allowing for the deduction allowed under subparagraph (A) in the case of taxpayers with taxable years beginning after December 31, 2024, and ending before the date of the enactment of this Act. SEC. 70303. MODIFICATION OF LIMITATION ON BUSINESS INTEREST. (a) In General.--Section 163(j)(8)(A)(v) is amended by striking ``in the case of taxable years beginning before January 1, 2022,''. (b) Floor Plan Financing Applicable to Certain Trailers and Campers.--Section 163(j)(9)(C) is amended by adding at the end the following new flush sentence: ``Such term shall also include any trailer or camper which is designed to provide temporary living quarters for recreational, camping, or seasonal use and is designed to be towed by, or affixed to, a motor vehicle.''. (c) Effective Date and Special Rule.-- (1) In general.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. (2) Special rule for short taxable years.--The Secretary of the Treasury (or the Secretary's delegate) may prescribe such rules as are necessary or appropriate to provide for the application of the amendments made by this section in the case of any taxable year of less than 12 months that begins after December 31, 2024, and ends before the date of the enactment of this Act. SEC. 70304. EXTENSION AND ENHANCEMENT OF PAID FAMILY AND MEDICAL LEAVE CREDIT. (a) In General.--Section 45S is amended-- (1) in subsection (a)-- [[Page S3912]] (A) by striking paragraph (1) and inserting the following: ``(1) In general.--For purposes of section 38, in the case of an eligible employer, the paid family and medical leave credit is an amount equal to either of the following (as elected by such employer): ``(A) The applicable percentage of the amount of wages paid to qualifying employees with respect to any period in which such employees are on family and medical leave. ``(B) If such employer has an insurance policy with regards to the provision of paid family and medical leave which is in force during the taxable year, the applicable percentage of the total amount of premiums paid or incurred by such employer during such taxable year with respect to such insurance policy.'', and (B) by adding at the end the following: ``(3) Rate of payment determined without regard to whether leave is taken.--For purposes of determining the applicable percentage with respect to paragraph (1)(B), the rate of payment under the insurance policy shall be determined without regard to whether any qualifying employees were on family and medical leave during the taxable year.'', (2) in subsection (b)(1), by striking ``credit allowed'' and inserting ``wages taken into account'', (3) in subsection (c), by striking paragraphs (3) and (4) and inserting the following: ``(3) Aggregation rule.-- ``(A) In general.--Except as provided in subparagraph (B), all persons which are treated as a single employer under subsections (b) and (c) of section 414 shall be treated as a single employer. ``(B) Exception.-- ``(i) In general.--Subparagraph (A) shall not apply to any person who establishes to the satisfaction of the Secretary that such person has a substantial and legitimate business reason for failing to provide a written policy described in paragraph (1) or (2). ``(ii) Substantial and legitimate business reason.--For purposes of clause (i), the term `substantial and legitimate business reason' shall not include the operation of a separate line of business, the rate of wages or category of jobs for employees (or any similar basis), or the application of State or local laws relating to family and medical leave, but may include the grouping of employees of a common law employer. ``(4) Treatment of benefits mandated or paid for by state or local governments.--For purposes of this section, any leave which is paid by a State or local government or required by State or local law-- ``(A) except as provided in subparagraph (B), shall be taken into account in determining the amount of paid family and medical leave provided by the employer, and ``(B) shall not be taken into account in determining the amount of the paid family and medical leave credit under subsection (a).'', (4) in subsection (d)-- (A) in paragraph (1), by inserting ``(or, at the election of the employer, for not less than 6 months)'' after ``1 year or more'', (B) in paragraph (2)-- (i) by inserting ``, as determined on an annualized basis (pro-rata for part-time employees),'' after ``compensation'', and (ii) by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following: ``(3) is customarily employed for not less than 20 hours per week.'', and (5) by striking subsection (i). (b) No Double Benefit.--Section 280C(a) is amended-- (1) by striking ``45S(a)'' and inserting ``45S(a)(1)(A)'', and (2) by inserting after the first sentence the following: ``No deduction shall be allowed for that portion of the premiums paid or incurred for the taxable year which is equal to that portion of the paid family and medical leave credit which is determined for the taxable year under section 45S(a)(1)(B).''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70305. EXCEPTIONS FROM LIMITATIONS ON DEDUCTION FOR BUSINESS MEALS. (a) Exception to Denial of Deduction for Business Meals.-- Section 274(o), as added by section 13304 of Public Law 115- 97, is amended by striking ``No deduction'' and inserting ``Except in the case of an expense described in subsection (e)(8) or (n)(2)(C), no deduction''. (b) Meals Provided on Certain Fishing Boats and at Certain Fish Processing Facilities Not Subject to 50 Percent Limitation.--Section 274(n)(2)(C) of the Internal Revenue Code of 1986 is amended by striking ``or'' at the end of clause (iii) and by adding at the end the following new clause: ``(v) provided-- ``(I) on a fishing vessel, fish processing vessel, or fish tender vessel (as such terms are defined in section 2101 of title 46, United States Code), or ``(II) at a facility for the processing of fish for commercial use or consumption which-- ``(aa) is located in the United States north of 50 degrees north latitude, and ``(bb) is not located in a metropolitan statistical area (within the meaning of section 143(k)(2)(B)), or''. (c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred after December 31, 2025. SEC. 70306. INCREASED DOLLAR LIMITATIONS FOR EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS. (a) In General.--Section 179(b) is amended-- (1) in paragraph (1), by striking ``$1,000,000'' and inserting ``$2,500,000'', and (2) in paragraph (2), by striking ``$2,500,000'' and inserting ``$4,000,000''. (b) Conforming Amendments.--Section 179(b)(6)(A) is amended-- (1) by inserting ``(2025 in the case of the dollar amounts in paragraphs (1) and (2))'' after ``In the case of any taxable year beginning after 2018'', and (2) in clause (ii), by striking ``determined by substituting `calendar year 2017' for `calendar year 2016' in subparagraph (A)(ii) thereof.'' and inserting "determined by substituting in subparagraph (A)(ii) thereof-- `` ``(I) in the case of amounts in paragraphs (1) and (2), `calendar year 2024' for `calendar year 2016', and ``(II) in the case of the amount in paragraph (5)(A), `calendar year 2017' for `calendar year 2016'.''. (c) Effective Date.--The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2024. SEC. 70307. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED PRODUCTION PROPERTY. (a) In General.--Section 168 is amended by adding at the end the following new subsection: ``(n) Special Allowance for Qualified Production Property.-- ``(1) In general.--In the case of any qualified production property of a taxpayer making an election under this subsection-- ``(A) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 100 percent of the adjusted basis of the qualified production property, and ``(B) the adjusted basis of the qualified production property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year. ``(2) Qualified production property.--For purposes of this subsection-- ``(A) In general.--The term `qualified production property' means that portion of any nonresidential real property-- ``(i) to which this section applies, ``(ii) which is used by the taxpayer as an integral part of a qualified production activity, ``(iii) which is placed in service in the United States or any possession of the United States, ``(iv) the original use of which commences with the taxpayer, ``(v) the construction of which begins after January 19, 2025, and before January 1, 2029, ``(vi) which is designated by the taxpayer in the election made under this subsection, and ``(vii) which is placed in service before January 1, 2031. For purposes of clause (ii), in the case of property with respect to which the taxpayer is a lessor, property used by a lessee shall not be considered to be used by the taxpayer as part of a qualified production activity. ``(B) Special rule for certain property not previously used in qualified production activities.-- ``(i) In general.--In the case of property acquired by the taxpayer during the period described in subparagraph (A)(v), the requirements of clauses (iv) and (v) of subparagraph (A) shall be treated as satisfied if-- ``(I) such property was not used in a qualified production activity (determined without regard to the second sentence of subparagraph (D)) by any person at any time during the period beginning on January 1, 2021, and ending on May 12, 2025, ``(II) such property was not used by the taxpayer at any time prior to such acquisition, and ``(III) the acquisition of such property meets the requirements of paragraphs (2)(A), (2)(B), (2)(C), and (3) of section 179(d). ``(ii) Written binding contracts.--For purposes of determining under clause (i)-- ``(I) whether such property is acquired before the period described in subparagraph (A)(v), such property shall be treated as acquired not later than the date on which the taxpayer enters into a written binding contract for such acquisition, and ``(II) whether such property is acquired after such period, such property shall be treated as acquired not earlier than such date. ``(C) Exclusion of office space, etc.--The term `qualified production property' shall not include that portion of any nonresidential real property which is used for offices, administrative services, lodging, parking, sales activities, research activities, software development or engineering activities, or other functions unrelated to the manufacturing, production, or refining of tangible personal property. ``(D) Qualified production activity.--The term `qualified production activity' means the manufacturing, production, or refining of a qualified product. The activities of any taxpayer do not constitute manufacturing, production, or refining of a qualified product unless the activities of such taxpayer result in a substantial transformation of the property comprising the product. ``(E) Production.--The term `production' shall not include activities other than agricultural production and chemical production. [[Page S3913]] ``(F) Qualified product.--The term `qualified product' means any tangible personal property if such property is not a food or beverage prepared in the same building as a retail establishment in which such property is sold. ``(G) Syndication.--For purposes of subparagraph (A)(iv), rules similar to the rules of subsection (k)(2)(E)(iii) shall apply. ``(H) Extension of placed in service date under certain circumstances.--The Secretary may extend the date under subparagraph (A)(vii) with respect to any property that meets the requirements of clauses (i) through (vi) of subparagraph (A) if the Secretary determines that an act of God (as defined in section 101(1) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980) prevents the taxpayer from placing such property in service before such date. ``(3) Deduction allowed in computing minimum tax.--For purposes of determining alternative minimum taxable income under section 55, the deduction under section 167 for qualified production property shall be determined under this section without regard to any adjustment under section 56. ``(4) Coordination with certain other provisions.-- ``(A) Other special depreciation allowances.--For purposes of subsections (k)(7), (l)(3)(D), and (m)(2)(B)(iii)-- ``(i) qualified production property shall be treated as a separate class of property, and ``(ii) the taxpayer shall be treated as having made an election under such subsections with respect to such class. ``(B) Alternative depreciation property.--The term `qualified production property' shall not include any property to which the alternative depreciation system under subsection (g) applies. For purposes of subsection (g)(7)(A), qualified production property to which this subsection applies shall be treated as separate nonresidential real property. ``(5) Recapture.--If, at any time during the 10-year period beginning on the date that any qualified production property is placed in service by the taxpayer, such property ceases to be used as described in paragraph (2)(A)(ii) and is used by the taxpayer in a productive use not described in paragraph (2)(A)(ii)-- ``(A) section 1245 shall be applied-- ``(i) by treating such property as having been disposed of by the taxpayer as of the first time such property is so used in a productive use not described in paragraph (2)(A)(ii), and ``(ii) by treating the amount described in subparagraph (B) of section 1245(a)(1) with respect to such disposition as being not less than the amount described in subparagraph (A) of such section, and ``(B) the basis of the taxpayer in such property, and the taxpayer's allowance for depreciation with respect to such property, shall be appropriately adjusted to take into account amounts recognized by reason of subparagraph (A). ``(6) Election.-- ``(A) In general.--An election under this subsection for any taxable year shall-- ``(i) specify the nonresidential real property subject to the election and the portion of such property designated under paragraph (2)(A)(vi), and ``(ii) except as otherwise provided by the Secretary, be made on the taxpayer's return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may prescribe by regulations or other guidance. ``(B) Election.--Any election made under this subsection, and any specification contained in any such election, may not be revoked except with the consent of the Secretary (and the Secretary shall provide such consent only in extraordinary circumstances). ``(7) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance-- ``(A) providing rules for regarding what constitutes substantial transformation of property which are consistent with guidance provided under section 954(d), and ``(B) providing for the application of paragraph (5) with respect to a change in use described in such paragraph by a transferee following a fully or partially tax free transfer of qualified production property.''. (b) Treatment of Qualified Production Property as Section 1245 Property.--Section 1245(a)(3) is amended by striking ``or'' at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting ``, or'', and by adding at the end the following new subparagraph: ``(G) any qualified production property (as defined in section 168(n)(2)).''. (c) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. SEC. 70308. ENHANCEMENT OF ADVANCED MANUFACTURING INVESTMENT CREDIT. (a) In General.--Section 48D(a) is amended by striking ``25 percent'' and inserting ``35 percent''. (b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2025. SEC. 70309. SPACEPORTS ARE TREATED LIKE AIRPORTS UNDER EXEMPT FACILITY BOND RULES. (a) In General.--Section 142(a)(1) is amended to read as follows: ``(1) airports and spaceports,''. (b) Treatment of Ground Leases.--Section 142(b)(1) is amended by adding at the end the following new subparagraph: ``(C) Special rule for spaceport ground leases.--For purposes of subparagraph (A), spaceport property located on land leased by a governmental unit from the United States shall not fail to be treated as owned by a governmental unit if the requirements of this paragraph are met by the lease and any subleases of the property.''. (c) Definition of Spaceport.--Section 142 is amended by adding at the end the following new subsection: ``(p) Spaceport.-- ``(1) In general.--For purposes of subsection (a)(1), the term `spaceport' means any facility located at or in close proximity to a launch site or reentry site used for-- ``(A) manufacturing, assembling, or repairing spacecraft, space cargo, other facilities described in this paragraph, or any component of the foregoing, ``(B) flight control operations, ``(C) providing launch services and reentry services, or ``(D) transferring crew, spaceflight participants, or space cargo to or from spacecraft. ``(2) Additional terms.--For purposes of paragraph (1)-- ``(A) Space cargo.--The term `space cargo' includes satellites, scientific experiments, other property transported into space, and any other type of payload, whether or not such property returns from space. ``(B) Spacecraft.--The term `spacecraft' means a launch vehicle or a reentry vehicle. ``(C) Other terms.--The terms `launch site', `crew', `space flight participant', `launch services', `launch vehicle', `payload', `reentry services', `reentry site', a `reentry vehicle' shall have the respective meanings given to such terms by section 50902 of title 51, United States Code (as in effect on the date of enactment of this subsection). ``(3) Public use requirement.--Notwithstanding any other provision of law, a facility shall not be required to be available for use by the general public to be treated as a spaceport for purposes of this section. ``(4) Manufacturing facilities and industrial parks allowed.--With respect to spaceports, subsection (c)(2)(E) shall not apply to spaceport property described in paragraph (1)(A).''. (d) Exception From Federally Guaranteed Bond Prohibition.-- Section 149(b)(3) is amended by adding at the end the following new subparagraph: ``(F) Exception for spaceports.--A bond shall not be treated as federally guaranteed merely because of the payment of rent, user fees, or other charges by the United States (or any agency or instrumentality thereof) in exchange for the use of the spaceport by the United States (or any agency or instrumentality thereof).''. (e) Conforming Amendment.--The heading for section 142(c) is amended by inserting ``Spaceports,'' after ``Airports,''. (f) Effective Date.--The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. Subchapter B--Permanent America-first International Tax Reforms PART I--FOREIGN TAX CREDIT SEC. 70311. MODIFICATIONS RELATED TO FOREIGN TAX CREDIT LIMITATION. (a) Rules for Allocation of Certain Deductions to Foreign Source Net CFC Tested Income for Purposes of Foreign Tax Credit Limitation.--Section 904(b) is amended by adding at the end the following new paragraph: ``(5) Deductions treated as allocable to foreign source net cfc tested income.--Solely for purposes of the application of subsection (a) with respect to amounts described in subsection (d)(1)(A), the taxpayer's taxable income from sources without the United States shall be determined by allocating and apportioning-- ``(A) any deduction allowed under section 250(a)(1)(B) (and any deduction allowed under section 164(a)(3) for taxes imposed on amounts described in section 250(a)(1)(B)) to such income, ``(B) no amount of interest expense or research and experimental expenditures to such income, and ``(C) any other deduction to such income only if such deduction is directly allocable to such income. Any amount or deduction which would (but for subparagraphs (B) and (C)) have been allocated or apportioned to such income shall only be allocated or apportioned to income which is from sources within the United States.''. (b) Other Modifications.-- (1) Section 904(d)(2)(H)(i) is amended by striking ``paragraph (1)(B)'' and inserting ``paragraph (1)(D)''. (2) Section 904(d)(4)(C)(ii) is amended by striking ``paragraph (1)(A)'' and inserting ``paragraph (1)(C)''. (3) Section 951A(f)(1)(A) is amended by striking ``904(h)(1)'' and inserting ``904(h)''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70312. MODIFICATIONS TO DETERMINATION OF DEEMED PAID CREDIT FOR TAXES PROPERLY ATTRIBUTABLE TO TESTED INCOME. (a) Increase in Deemed Paid Credit.-- (1) In general.--Section 960(d)(1) is amended by striking ``80 percent'' and inserting ``90 percent''. [[Page S3914]] (2) Gross up for deemed paid foreign tax credit.--Section 78 is amended-- (A) by striking ``subsections (a), (b), and (d)'' and inserting ``subsections (a) and (d)'', and (B) by striking ``80 percent'' and inserting ``90 percent''. (b) Disallowance of Foreign Tax Credit With Respect to Distributions of Previously Taxed Net CFC Tested Income.-- Section 960(d) is amended by adding at the end the following new paragraph: ``(4) Disallowance of foreign tax credit with respect to distributions of previously taxed net cfc tested income.--No credit shall be allowed under section 901 for 10 percent of any foreign income taxes paid or accrued (or deemed paid under subsection (b)(1)) with respect to any amount excluded from gross income under section 959(a) by reason of an inclusion in gross income under section 951A(a).''. (c) Effective Dates.-- (1) In general.--The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2025. (2) Disallowance.--The amendment made by subsection (b) shall apply to amounts distributed after June 28, 2025. SEC. 70313. SOURCING CERTAIN INCOME FROM THE SALE OF INVENTORY PRODUCED IN THE UNITED STATES. (a) In General.--Section 904(b), as amended by section 70311, is amended by adding at the end the following new paragraph: ``(6) Source rules for certain inventory produced in the united states and sold through foreign branches.--For purposes of this section, if a United States person maintains an office or other fixed place of business in a foreign country (determined under rules similar to the rules of section 864(c)(5)), the portion of income which-- ``(A) is from the sale or exchange outside the United States of inventory property (within the meaning of section 865(i)(1))-- ``(i) which is produced in the United States, ``(ii) which is for use outside the United States, and ``(iii) to which the third sentence of section 863(b) applies, and ``(B) is attributable (determined under rules similar to the rules of section 864(c)(5)) to such office or other fixed place of business, shall be treated as from sources without the United States, except that the amount so treated shall not exceed 50 percent of the income from the sale or exchange of such inventory property.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. PART II--FOREIGN-DERIVED DEDUCTION ELIGIBLE INCOME AND NET CFC TESTED INCOME SEC. 70321. MODIFICATION OF DEDUCTION FOR FOREIGN-DERIVED DEDUCTION ELIGIBLE INCOME AND NET CFC TESTED INCOME. (a) In General.--Section 250(a) is amended-- (1) by striking ``37.5 percent'' in paragraph (1)(A) and inserting ``33.34 percent'', (2) by striking ``50 percent'' in paragraph (1)(B) and inserting ``40 percent'', and (3) by striking paragraph (3). (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70322. DETERMINATION OF DEDUCTION ELIGIBLE INCOME. (a) Sales or Other Dispositions of Certain Property.-- (1) In general.--Section 250(b)(3)(A)(i) is amended-- (A) by striking ``and'' at the end of subclause (V), (B) by striking ``over'' at the end of subclause (VI) and inserting ``and'', and (C) by adding at the end the following new subclause: ``(VII) except as otherwise provided by the Secretary, any income and gain from the sale or other disposition (including pursuant to a transaction subject to section 367(d)) of-- ``(aa) intangible property (as defined in section 367(d)(4)), and ``(bb) any other property of a type that is subject to depreciation, amortization, or depletion by the seller, over''. (2) Conforming amendment.--Section 250(b)(5)(E) is amended by inserting ``(other than paragraph (3)(A)(i)(VII))'' after ``For purposes of this subsection''. (3) Effective date.--The amendments made by this subsection shall apply to sales or other dispositions (including pursuant to a transaction subject to section 367(d) of the Internal Revenue Code of 1986) occurring after June 16, 2025. (b) Expense Apportionment Limited to Properly Allocable Expenses.-- (1) In general.--Section 250(b)(3)(A)(ii) is amended to read as follows: ``(ii) expenses and deductions (including taxes), other than interest expense and research or experimental expenditures, properly allocable to such gross income.''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2025. SEC. 70323. RULES RELATED TO DEEMED INTANGIBLE INCOME. (a) Taxation of Net CFC Tested Income.-- (1) In general.--Section 951A(a) is amended by striking ``global intangible low-taxed income'' and inserting ``net CFC tested income''. (2) Repeal of tax-free deemed return on foreign investments.--Section 951A, as amended by the preceding provisions of this Act, is amended by striking subsections (b) and (d) and by redesignating subsections (c), (e), and (f) as subsections (b), (c), and (d), respectively. (3) Conforming amendments.-- (A)(i) Section 250 is amended by striking ``global intangible low-taxed income'' each place it appears in subsections (a)(1)(B)(i), (a)(2), and (b)(3)(A)(i)(II) and inserting ``net CFC tested income''. (ii) The heading for section 250 of such Code is amended by striking ``global intangible low-taxed income'' and inserting ``net cfc tested income''. (iii) The item relating to section 250 in the table of sections for part VII of subchapter B of chapter 1 of such Code is amended by striking ``global intangible low-taxed income'' and inserting ``net CFC tested income''. (B) Section 951A(c)(1), as redesignated by paragraph (2), is amended by striking ``subsections (b), (c)(1)(A), and (c)(1)(B)'' and inserting ``subsections (b)(1)(A) and (b)(1)(B)''. (C) Section 951A(d), as redesignated by paragraph (2), is amended-- (i) by striking ``global intangible low-taxed income'' each place it appears and inserting ``net CFC tested income'', and (ii) by striking ``subsection (c)(1)(A)'' in paragraph (2)(B)(ii) and inserting ``subsection (b)(1)(A)''. (D) Section 960(d)(2) is amended-- (i) by striking ``global intangible low-taxed income'' in subparagraph (A) and inserting ``net CFC tested income'', and (ii) by striking ``section 951A(c)(1)(A)'' in subparagraph (B) and inserting ``section 951A(b)(1)(A)''. (E)(i) The heading for section 951A is amended by striking ``global intangible low-taxed income'' and inserting ``net cfc tested income''. (ii) The item relating to section 951A in the table of sections for subpart F of part III of subchapter N of chapter 1 is amended by striking ``Global intangible low-taxed income'' and inserting ``Net CFC tested income''. (b) Deduction for Foreign-derived Deduction Eligible Income.-- (1) In general.--Section 250(a)(1)(A) is amended by striking ``foreign-derived intangible income'' and inserting ``foreign-derived deduction eligible income''. (2) Conforming amendments.-- (A) Section 250(a)(2) is amended by striking ``foreign- derived intangible income'' each place it appears and inserting ``foreign-derived deduction eligible income''. (B) Section 250(b), as amended by subsection (a), is amended-- (i) by striking paragraphs (1) and (2), (ii) by redesignating paragraphs (4) and (5) as paragraphs (1) and (2), respectively, and by moving such paragraphs before paragraph (3), (iii) in paragraph (2)(B)(ii), as so redesignated, by striking ``paragraph (4)(B)'' and inserting ``paragraph (1)(B)'', and (iv) by striking ``Intangible'' in the heading thereof and inserting ``Deduction Eligible''. (C)(i) The heading for section 250 is amended by striking ``intangible'' in the heading thereof and inserting ``deduction eligible''. (ii) The heading for section 172(d)(9) is amended by striking ``intangible'' and inserting ``deduction eligible''. (iii) The item relating to section 250 in the table of sections for part VIII of subchapter B of chapter 1 is amended by striking ``intangible'' and inserting ``deduction eligible''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART III--BASE EROSION MINIMUM TAX SEC. 70331. EXTENSION AND MODIFICATION OF BASE EROSION MINIMUM TAX AMOUNT. (a) In General.--Section 59A(b) is amended-- (1) by striking ``10 percent'' in paragraph (1) and inserting ``10.5 percent'', and (2) by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (b) Conforming Amendments.-- (1) Section 59A(b)(1) is amended by striking ``Except as provided in paragraphs (2) and (3)'' and inserting ``Except as provided in paragraph (2)''. (2) Section 59A(b)(2), as redesignated by subsection (a)(2), is amended by striking ``the percentage otherwise in effect under paragraphs (1)(A) and (2)(A) shall each be increased'' and inserting ``the percentages otherwise in effect under paragraph (1)(A) shall be increased''. (3) Section 59A(e)(1)(C) is amended by striking ``in the case of a taxpayer described in subsection (b)(3)(B)'' and inserting ``in the case of a taxpayer described in subsection (b)(2)(B)''. (c) Other Modifications.-- (1) Section 59A(b)(2)(B)(ii), as redesignated by subsection (a)(2), is amended by striking ``registered securities dealer'' and inserting ``securities dealer registered''. (2) Section 59A(h)(2)(B) is amended by striking ``section 6038B(b)(2)'' and inserting ``section 6038A(b)(2)''. (3) Section 59A(i)(2) is amended-- (A) by striking ``subsection (g)'' and inserting ``subsection (h)'', and (B) by striking ``subsection (g)(3)'' and inserting ``subsection (h)(3)''. [[Page S3915]] (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART IV--BUSINESS INTEREST LIMITATION SEC. 70341. COORDINATION OF BUSINESS INTEREST LIMITATION WITH INTEREST CAPITALIZATION PROVISIONS. (a) In General.--Section 163(j) is amended by redesignating paragraphs (10) and (11) as paragraphs (11) and (12) and by inserting after paragraph (9) the following: ``(10) Coordination with interest capitalization provisions.-- ``(A) In general.--In applying this subsection-- ``(i) the limitation under paragraph (1) shall apply to business interest without regard to whether the taxpayer would otherwise deduct such business interest or capitalize such business interest under an interest capitalization provision, and ``(ii) any reference in this subsection to a deduction for business interest shall be treated as including a reference to the capitalization of business interest. ``(B) Amount allowed applied first to capitalized interest.--The amount allowed after taking into account the limitation described in paragraph (1)-- ``(i) shall be applied first to the aggregate amount of business interest which would otherwise be capitalized, and ``(ii) the remainder (if any) shall be applied to the aggregate amount of business interest which would be deducted. ``(C) Treatment of disallowed interest carried forward.--No portion of any business interest carried forward under paragraph (2) from any taxable year to any succeeding taxable year shall, for purposes of this title (including any interest capitalization provision which previously applied to such portion) be treated as interest to which an interest capitalization provision applies. ``(D) Interest capitalization provision.--For purposes of this section, the term `interest capitalization provision' means any provision of this subtitle under which interest-- ``(i) is required to be charged to capital account, or ``(ii) may be deducted or charged to capital account.''. (b) Certain Capitalized Interest Not Treated as Business Interest.--Section 163(j)(5) is amended by adding at the end the following new sentence: ``Such term shall not include any interest which is capitalized under section 263(g) or 263A(f).''. (c) Regulatory Authority.--Section 163(j), as amended by subsection (a), is amended by redesignating paragraphs (11) and (12) as paragraphs (12) and (13) and by inserting after paragraph (10) the following: ``(11) Regulatory authority.--The Secretary shall issue such regulations or guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or guidance to determine which business interest is taken into account under this subsection and section 59A(c)(3).''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70342. DEFINITION OF ADJUSTED TAXABLE INCOME FOR BUSINESS INTEREST LIMITATION. (a) In General.--Subparagraph (A) of section 163(j)(8) is amended-- (1) by striking ``and'' at the end of clause (iv), and (2) by adding at the end the following new clause: ``(vi) the amounts included in gross income under sections 951(a), 951A(a), and 78 (and the portion of the deductions allowed under sections 245A(a) (by reason of section 964(e)(4)) and 250(a)(1)(B) by reason of such inclusions), and''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART V--OTHER INTERNATIONAL TAX REFORMS SEC. 70351. PERMANENT EXTENSION OF LOOK-THRU RULE FOR RELATED CONTROLLED FOREIGN CORPORATIONS. (a) In General.--Section 954(c)(6)(C) is amended by striking ``and before January 1, 2026,''. (b) Effective Date.--The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025. SEC. 70352. REPEAL OF ELECTION FOR 1-MONTH DEFERRAL IN DETERMINATION OF TAXABLE YEAR OF SPECIFIED FOREIGN CORPORATIONS. (a) In General.--Section 898(c) is amended by striking paragraph (2) and redesignating paragraph (3) as paragraph (2). (b) Effective Date.--The amendments made by this section shall apply to taxable years of specified foreign corporations beginning after November 30, 2025. (c) Transition Rule.-- (1) In general.--In the case of a corporation that is a specified foreign corporation as of November 30, 2025, such corporation's first taxable year beginning after such date shall end at the same time as the first required year (within the meaning of section 898(c)(1) of the Internal Revenue Code of 1986) ending after such date. If any specified foreign corporation is required by the amendments made by this section to change its taxable year for its first taxable year beginning after November 30, 2025-- (A) such change shall be treated as initiated by such corporation, (B) such change shall be treated as having been made with the consent of the Secretary, and (C) the Secretary shall issue regulations or other guidance for allocating foreign taxes that are paid or accrued in such first taxable year and the succeeding taxable year among such taxable years in the manner the Secretary determines appropriate to carry out the purposes of this section. (2) Secretary.--For purposes of this subsection, the term ``Secretary'' means the Secretary of the Treasury or the Secretary's delegate. SEC. 70353. RESTORATION OF LIMITATION ON DOWNWARD ATTRIBUTION OF STOCK OWNERSHIP IN APPLYING CONSTRUCTIVE OWNERSHIP RULES. (a) In General.--Section 958(b) is amended-- (1) by inserting after paragraph (3) the following: ``(4) Subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States person.'', and (2) by striking ``Paragraph (1)'' in the last sentence and inserting ``Paragraphs (1) and (4)''. (b) Foreign Controlled United States Shareholders.--Subpart F of part III of subchapter N of chapter 1 is amended by inserting after section 951A the following new section: ``SEC. 951B. AMOUNTS INCLUDED IN GROSS INCOME OF FOREIGN CONTROLLED UNITED STATES SHAREHOLDERS. ``(a) In General.--In the case of any foreign controlled United States shareholder of a foreign controlled foreign corporation-- ``(1) this subpart (other than sections 951A, 951(b), and 957) shall be applied with respect to such shareholder (separately from, and in addition to, the application of this subpart without regard to this section)-- ``(A) by substituting `foreign controlled United States shareholder' for `United States shareholder' each place it appears therein, and ``(B) by substituting `foreign controlled foreign corporation' for `controlled foreign corporation' each place it appears therein, and ``(2) section 951A (and such other provisions of this subpart as provided by the Secretary) shall be applied with respect to such shareholder-- ``(A) by treating each reference to `United States shareholder' in such section as including a reference to such shareholder, and ``(B) by treating each reference to `controlled foreign corporation' in such section as including a reference to such foreign controlled foreign corporation. ``(b) Foreign Controlled United States Shareholder.--For purposes of this section, the term `foreign controlled United States shareholder' means, with respect to any foreign corporation, any United States person which would be a United States shareholder with respect to such foreign corporation if-- ``(1) section 951(b) were applied by substituting `more than 50 percent' for `10 percent or more', and ``(2) section 958(b) were applied without regard to paragraph (4) thereof. ``(c) Foreign Controlled Foreign Corporation.--For purposes of this section, the term `foreign controlled foreign corporation' means a foreign corporation, other than a controlled foreign corporation, which would be a controlled foreign corporation if section 957(a) were applied-- ``(1) by substituting `foreign controlled United States shareholders' for `United States shareholders', and ``(2) by substituting `section 958(b) (other than paragraph (4) thereof)' for `section 958(b)'. ``(d) Regulations.--The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance-- ``(1) to treat a foreign controlled United States shareholder or a foreign controlled foreign corporation as a United States shareholder or as a controlled foreign corporation, respectively, for purposes of provisions of this title other than this subpart (including any reporting requirement), and ``(2) with respect to the treatment of foreign controlled foreign corporations that are passive foreign investment companies (as defined in section 1297).''. (c) Clerical Amendment.--The table of sections for subpart F of part III of subchapter N of chapter 1 is amended by inserting after the item relating to section 951A the following new item: ``Sec. 951B. Amounts included in gross income of foreign controlled United States shareholders.''. (d) Effective Date.--The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025. (e) Special Rule.-- (1) In general.--Except to the extent provided by the Secretary of the Treasury (or the Secretary's delegate), the effective date of any amendment to the Internal Revenue Code of 1986 shall be applied by treating references to United States shareholders as references to foreign controlled United States shareholders, and by treating references to controlled foreign corporations as references to foreign controlled foreign corporations. (2) Definitions.--Any term used in paragraph (1) which is used in subpart F of part [[Page S3916]] III of subchapter N of chapter 1 of the Internal Revenue Code of 1986 (as amended by this section) shall have the meaning given such term in such subpart. (f) No Inference.--The amendments made by this section shall not be construed to create any inference with respect to the proper application of any provision of the Internal Revenue Code of 1986 with respect to taxable years beginning before the taxable years to which such amendments apply. SEC. 70354. MODIFICATIONS TO PRO RATA SHARE RULES. (a) In General.--Subsection (a) of section 951 is amended to read as follows: ``(a) Amounts Included.-- ``(1) In general.--If a foreign corporation is a controlled foreign corporation at any time during a taxable year of the foreign corporation (in this subsection referred to as the `CFC year')-- ``(A) each United States shareholder which owns (within the meaning of section 958(a)) stock in such corporation on any day during the CFC year shall include in gross income such shareholder's pro rata share (determined under paragraph (2)) of the corporation's subpart F income for the CFC year, and ``(B) each United States shareholder which owns (within the meaning of section 958(a)) stock in such corporation on the last day, in the CFC year, on which such corporation is a controlled foreign corporation shall include in gross income the amount determined under section 956 with respect to such shareholder for the CFC year (but only to the extent not excluded from gross income under section 959(a)(2)). ``(2) Pro rata share of subpart f income.--A United States shareholder's pro rata share of a controlled foreign corporation's subpart F income for a CFC year shall be the portion of such income which is attributable to-- ``(A) the stock of such corporation owned (within the meaning of section 958(a)) by such shareholder, and ``(B) any period of the CFC year during which-- ``(i) such shareholder owned (within the meaning of section 958(a)) such stock, ``(ii) such shareholder was a United States shareholder of such corporation, and ``(iii) such corporation was a controlled foreign corporation. ``(3) Taxable year of inclusion.--Any amount required to be included in gross income by a United States shareholder under paragraph (1) with respect to a CFC year shall be included in gross income for the shareholder's taxable year which includes the last day on which the shareholder owns (within the meaning of section 958(a)) stock in the controlled foreign corporation during such CFC year. ``(4) Regulatory authority.--The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance allowing taxpayers to elect, or requiring taxpayers, to close the taxable year of a controlled foreign corporation upon a direct or indirect disposition of stock of such corporation.''. (b) Coordination With Section 951A.--Section 951A(c), as redesignated by section 70323(a)(2), is amended-- (1) in paragraph (1), by striking ``in which or with which the taxable year of the controlled foreign corporation ends'' and inserting ``determined under section 951(a)(3)'', and (2) in paragraph (2), by striking ``the last day in the taxable year of such foreign corporation on which such foreign corporation is a controlled foreign corporation'' and inserting ``any day in such taxable year''. (c) Effective Dates.-- (1) In general.--The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025. (2) Transition rule for dividends.--A dividend paid (or deemed paid) by a controlled foreign corporation shall not be treated as a dividend for purposes of applying section 951(a)(2)(B) of the Internal Revenue Code of 1986 (as in effect before the amendments made by this section) if-- (A) such dividend-- (i) was paid (or deemed paid) on or before June 28, 2025, during the taxable year of such controlled foreign corporation which includes such date and the United States shareholder described in section 951(a)(1) of such Code (as so in effect) did not own (within the meaning of section 958(a) of such Code) the stock of such controlled foreign corporation during the portion of such taxable year on or before June 28, 2025, or (ii) was paid (or deemed paid) after June 28, 2025, and before such controlled foreign corporation's first taxable year beginning after December 31, 2025, and (B) such dividend does not increase the taxable income of a United States person (including by reason of a dividends received deduction, an exclusion from gross income, or an exclusion from subpart F income). CHAPTER 4--INVESTING IN AMERICAN FAMILIES, COMMUNITIES, AND SMALL BUSINESSES Subchapter A--Permanent Investments in Families and Children SEC. 70401. ENHANCEMENT OF EMPLOYER-PROVIDED CHILD CARE CREDIT. (a) Increase of Amount of Qualified Child Care Expenditures Taken Into Account.--Section 45F(a)(1) is amended by striking ``25 percent'' and inserting ``40 percent (50 percent in the case of an eligible small business)''. (b) Increase of Maximum Credit Amount.--Subsection (b) of section 45F is amended to read as follows: ``(b) Dollar Limitation.-- ``(1) In general.--The credit allowable under subsection (a) for any taxable year shall not exceed $500,000 ($600,000 in the case of an eligible small business). ``(2) Inflation adjustment.--In the case of any taxable year beginning after 2026, the $500,0000 and $600,000 amounts in paragraph (1) shall each be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof.''. (c) Eligible Small Business.--Section 45F(c) is amended by adding at the end the following new paragraph: ``(4) Eligible small business.--The term `eligible small business' means a business that meets the gross receipts test of section 448(c), determined-- ``(A) by substituting `5-taxable-year' for `3-taxable-year' in paragraph (1) thereof, and ``(B) by substituting `5-year' for `3-year' in paragraph (3)(A) thereof.''. (d) Credit Allowed for Third-party Intermediaries.--Section 45F(c)(1)(A)(iii) is amended by inserting ``, or under a contract with an intermediate entity that contracts with one or more qualified child care facilities to provide such child care services'' before the period at the end. (e) Treatment of Jointly Owned or Operated Child Care Facility.--Section 45F(c)(2) is amended by adding at the end the following new subparagraph: ``(C) Treatment of jointly owned or operated child care facility.--A facility shall not fail to be treated as a qualified child care facility of the taxpayer merely because such facility is jointly owned or operated by the taxpayer and other persons.''. (f) Regulations and Guidance.--Section 45F is amended by adding at the end the following new subsection: ``(g) Regulations and Guidance.--The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including guidance to carry out the purposes of paragraphs (1)(A)(iii) and (2)(C) of subsection (c).''. (g) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred after December 31, 2025. SEC. 70402. ENHANCEMENT OF ADOPTION CREDIT. (a) In General.--Section 23(a) is amended by adding at the end the following new paragraph: ``(4) Portion of credit refundable.--So much of the credit allowed under paragraph (1) as does not exceed $5,000 shall be treated as a credit allowed under subpart C and not as a credit allowed under this subpart.''. (b) Adjustments for Inflation.--Section 23(h) is amended to read as follows: ``(h) Adjustments for Inflation.-- ``(1) In general.--In the case of a taxable year beginning after December 31, 2002, each of the dollar amounts in paragraphs (3) and (4) of subsection (a) and paragraphs (1) and (2)(A)(i) of subsection (b) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2001' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(2) Rounding.--If any amount as increased under paragraph (1) is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10. ``(3) Special rule for refundable portion.--In the case of the dollar amount in subsection (a)(4), paragraph (1) shall be applied-- ``(A) by substituting `2025' for `2002' in the matter preceding subparagraph (A), and ``(B) by substituting `calendar year 2024' for `calendar year 2001' in subparagraph (B) thereof.''. (c) Exclusion of Refundable Portion of Credit From Carryforward.--Section 23(c)(1) is amended by striking ``credit allowable under subsection (a)'' and inserting ``portion of the credit allowable under subsection (a) which is allowed under this subpart''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70403. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF DETERMINING WHETHER A CHILD HAS SPECIAL NEEDS FOR PURPOSES OF THE ADOPTION CREDIT. (a) In General.--Section 23(d)(3) is amended-- (1) in subparagraph (A), by inserting ``or Indian tribal government'' after ``a State'', and (2) in subparagraph (B), by inserting ``or Indian tribal government'' after ``such State''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. SEC. 70404. ENHANCEMENT OF THE DEPENDENT CARE ASSISTANCE PROGRAM. (a) In General.--Section 129(a)(2)(A) is amended by striking ``$5,000 ($2,500'' and inserting ``$7,500 ($3,750''. [[Page S3917]] (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70405. ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX CREDIT. (a) In General.--Paragraph (2) of section 21(a) is amended to read as follows: ``(2) Applicable percentage defined.--For purposes of paragraph (1), the term `applicable percentage' means 50 percent-- ``(A) reduced (but not below 35 percent) by 1 percentage point for each $2,000 or fraction thereof by which the taxpayer's adjusted gross income for the taxable year exceeds $15,000, and ``(B) further reduced (but not below 20 percent) by 1 percentage point for each $2,000 ($4,000 in the case of a joint return) or fraction thereof by which the taxpayer's adjusted gross income for the taxable year exceeds $75,000 ($150,000 in the case of a joint return).''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. Subchapter B--Permanent Investments in Students and Reforms to Tax- exempt Institutions SEC. 70411. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP GRANTING ORGANIZATIONS. (a) Allowance of Credit for Contributions of Individuals to Scholarship Granting Organizations.-- (1) In general.--Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25E the following new section: ``SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION SCHOLARSHIPS. ``(a) Allowance of Credit.--In the case of an individual who is a citizen or resident of the United States (within the meaning of section 7701(a)(9)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the aggregate amount of qualified contributions made by the taxpayer during the taxable year. ``(b) Limitations.-- ``(1) In general.--The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed an amount equal to the greater of-- ``(A) 10 percent of the adjusted gross income of the taxpayer for the taxable year, or ``(B) $5,000. ``(2) Allocation of volume cap.--The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed the amount of the volume cap allocated by the Secretary to such taxpayer under subsection (h) with respect to qualified contributions made by the taxpayer during the taxable year. ``(3) Reduction based on state credit.--The amount allowed as a credit under subsection (a) for a taxable year shall be reduced by the amount allowed as a credit on any State tax return of the taxpayer for qualified contributions made by the taxpayer during the taxable year. ``(c) Definitions.--For purposes of this section-- ``(1) Eligible student.--The term `eligible student' means an individual who-- ``(A) is a member of a household with an income which, for the calendar year prior to the date of the application for a scholarship, is not greater than 300 percent of the area median gross income (as such term is used in section 42), and ``(B) is eligible to enroll in a public elementary or secondary school. ``(2) Qualified contribution.--The term `qualified contribution' means a charitable contribution (as defined by section 170(c)) to a scholarship granting organization in the form of cash or publicly traded securities (as defined in section 6050L(a)(2)(B)). ``(3) Qualified elementary or secondary education expense.--The term `qualified elementary or secondary education expense' means the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school: ``(A) Tuition. ``(B) Curriculum and curricular materials. ``(C) Books or other instructional materials. ``(D) Online educational materials. ``(E) Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor does not bear a relationship to the student which is described in section 152(d)(2) and-- ``(i) is licensed as a teacher in any State, ``(ii) has taught at-- ``(I) a public or private elementary or secondary school, or ``(II) an institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))), or ``(iii) is a subject matter expert in the relevant subject. ``(F) Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission. ``(G) Fees for dual enrollment in an institution of higher education. ``(H) Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies, but only if the practitioner or provider does not bear a relationship to the student which is described in section 152(d)(2). ``(4) Scholarship granting organization.--The term `scholarship granting organization' means any organization-- ``(A) which-- ``(i) is described in section 501(c)(3) and exempt from tax under section 501(a), and ``(ii) is not a private foundation, ``(B) substantially all of the activities of which are providing scholarships for qualified elementary or secondary education expenses of eligible students, ``(C) which prevents the co-mingling of qualified contributions with other amounts by maintaining one or more separate accounts exclusively for qualified contributions, ``(D) is approved to operate in the State in which such organization grants scholarships, and ``(E) which satisfies the requirements of subsection (d). ``(d) Requirements for Scholarship Granting Organizations.-- ``(1) In general.--An organization meets the requirements of this subsection if-- ``(A) such organization provides scholarships to 10 or more students who do not all attend the same school, ``(B) such organization spends not less than 90 percent of revenues on scholarships for eligible students, ``(C) such organization does not provide scholarships for any expenses other than qualified elementary or secondary education expenses, ``(D) such organization provides a scholarship to eligible students with a priority for-- ``(i) students awarded a scholarship the previous school year, and ``(ii) after application of clause (i), any eligible students who have a sibling who was awarded a scholarship from such organization, ``(E) such organization does not earmark or set aside contributions for scholarships on behalf of any particular student, ``(F) such organization-- ``(i) verifies the annual household income and family size of eligible students who apply for scholarships in a manner which complies with the requirement described in paragraph (2), and ``(ii) limits the awarding of scholarships to eligible students who are a member of a household for which the income does not exceed the amount established under subsection (c)(1)(A), ``(G) such organization-- ``(i) obtains from an independent certified public accountant annual financial and compliance audits, and ``(ii) certifies to the Secretary (at such time, and in such form and manner, as the Secretary may prescribe) that the audit described in clause (i) has been completed, and ``(H) no officer or board member of such organization has been convicted of a felony. ``(2) Income verification.--The requirement described in this paragraph is that the organization review all of the following documents which are applicable with respect to members of the household of the applicant for the calendar year prior to application for a scholarship: ``(A) Federal and State income tax returns or tax return transcripts with applicable schedules. ``(B) Income reporting statements for tax purposes or wage and income transcripts from the Internal Revenue Service. ``(C) Notarized income verification letter from employers. ``(D) Unemployment or workers compensation statements. ``(E) Benefit verification letters regarding public assistance payments and Supplemental Nutrition Assistance Program payments, including a list of household members. ``(3) Independent certified public accountant.--For purposes of paragraph (1)(F), the term `independent certified public accountant' means, with respect to an organization, a certified public accountant who is not a person described in section 465(b)(3)(A) with respect to such organization or any employee of such organization. ``(4) Prohibition on self-dealing.-- ``(A) In general.--A scholarship granting organization may not award a scholarship to-- ``(i) any disqualified person, or ``(ii) an eligible student if, during the taxable year or the period of the 3 taxable years preceding such taxable year, such scholarship granting organization has received a qualified contribution from an individual who bears a relationship to such student which is described in section 152(d)(2). ``(B) Disqualified person.--For purposes of this paragraph, a disqualified person shall be determined pursuant to rules similar to the rules of section 4946. ``(e) Denial of Double Benefit.--Any qualified contribution for which a credit is allowed under this section shall not be taken into account as a charitable contribution for purposes of section 170. ``(f) Carryforward of Unused Credit.-- ``(1) In general.--If the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section, section 23, and section 25D), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year. [[Page S3918]] ``(2) Limitation.--No credit may be carried forward under this subsection to any taxable year following the fifth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis. ``(g) Rule of Construction.--Nothing in this section shall be construed to permit, allow, encourage, or authorize any Federal control over any aspect of any private or religious school. ``(h) Volume Cap.-- ``(1) In general.--The volume cap applicable under this section shall be $4,000,000,000 for calendar year 2027 and each calendar year thereafter. Such amount shall be allocated by the Secretary as provided in paragraph (2) to taxpayers with respect to qualified contributions made by such taxpayers, except that 10 percent of such amount shall be divided evenly among the States, and shall be available with respect to individuals residing in such States. ``(2) First-come, first-served.--For purposes of applying the volume cap under this section, such volume cap for any calendar year shall be allocated by the Secretary on a first- come, first-served basis, as determined based on the time (during such calendar year) at which the taxpayer made the qualified contribution with respect to which the allocation is made. The Secretary shall not make any allocation of the volume cap for any calendar year after December 31 of such calendar year. ``(3) Real-time information.--For purposes of this section, the Secretary shall develop a system to track the amount of qualified contributions made during the calendar year for which a credit may be claimed under this section, with such information to be updated in real time. ``(4) State.--For purposes of this subsection, the term `State' means only the States and the District of Columbia. ``(i) Regulations and Guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance-- ``(1) providing for enforcement of the requirements under subsection (d)(4), and ``(2) with respect to recordkeeping or information reporting for purposes of administering the requirements of this section.''. (2) Conforming amendments.-- (A) Section 25(e)(1)(C) is amended by striking ``and 25D'' and inserting ``25D, and 25F''. (B) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25E the following new item: ``Sec. 25F. Qualified elementary and secondary education scholarships.''. (b) Exclusion From Gross Income for Scholarships for Qualified Elementary or Secondary Education Expenses of Eligible Students.-- (1) In general.--Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section: ``SEC. 139K. SCHOLARSHIPS FOR QUALIFIED ELEMENTARY OR SECONDARY EDUCATION EXPENSES OF ELIGIBLE STUDENTS. ``(a) In General.--In the case of an individual, gross income shall not include any amounts provided to such individual or any dependent of such individual pursuant to a scholarship for qualified elementary or secondary education expenses of an eligible student which is provided by a scholarship granting organization. ``(b) Definitions.--In this section, the terms `qualified elementary or secondary education expense', `eligible student', and `scholarship granting organization' have the same meaning given such terms under section 25F(c).''. (2) Conforming amendment.--The table of sections for part III of subchapter B of chapter 1 is amended by inserting before the item relating to section 140 the following new item: ``Sec. 139K. Scholarships for qualified elementary or secondary education expenses of eligible students.''. (c) Failure of Scholarship Granting Organizations to Make Distributions.-- (1) In general.--Chapter 42 is amended by adding at the end the following new subchapter: ``Subchapter I--Scholarship Granting Organizations ``Sec. 4969. Failure to distribute receipts. ``SEC. 4969. FAILURE TO DISTRIBUTE RECEIPTS. ``(a) In General.--In the case of any scholarship granting organization (as defined in section 25F) which has been determined by the Secretary to have failed to satisfy the requirement under subsection (b) for any taxable year, any contribution made to such organization during the first taxable year beginning after the date of such determination shall not be treated as a qualified contribution (as defined in section 25F(c)(2)) for purposes of section 25F. ``(b) Requirement.--The requirement described in this subsection is that the amount of receipts of the scholarship granting organization for the taxable year which are distributed before the distribution deadline with respect to such receipts shall not be less than the required distribution amount with respect to such taxable year. ``(c) Definitions.--For purposes of this section-- ``(1) Required distribution amount.-- ``(A) In general.--The required distribution amount with respect to a taxable year is the amount equal to 100 percent of the total receipts of the scholarship granting organization for such taxable year-- ``(i) reduced by the sum of such receipts that are retained for reasonable administrative expenses for the taxable year or are carried to the succeeding taxable year under subparagraph (C), and ``(ii) increased by the amount of the carryover under subparagraph (C) from the preceding taxable year. ``(B) Safe harbor for reasonable administrative expenses.-- For purposes of subparagraph (A)(i), if the percentage of total receipts of a scholarship granting organization for a taxable year which are used for administrative expenses is equal to or less than 10 percent, such expenses shall be deemed to be reasonable for purposes of such subparagraph. ``(C) Carryover.--With respect to the amount of the total receipts of a scholarship granting organization with respect to any taxable year, an amount not greater than 15 percent of such amount may, at the election of such organization, be carried to the succeeding taxable year. ``(2) Distributions.--The term `distribution' includes amounts which are formally committed but not distributed. A formal commitment described in the preceding sentence may include contributions set aside for eligible students for more than one year. ``(3) Distribution deadline.--The distribution deadline with respect to receipts for a taxable year is the first day of the third taxable year following the taxable year in which such receipts are received by the scholarship granting organization. ``(d) Regulations and Guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this section.''. (2) Clerical amendment.--The table of subchapters for chapter 42 is amended by adding at the end the following new item: ``subchapter i--scholarship granting organizations''. (d) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after December 31, 2026. (2) Exclusion from gross income.--The amendments made by subsection (b) shall apply to amounts received after December 31, 2026, in taxable years ending after such date. SEC. 70412. EXCLUSION FOR EMPLOYER PAYMENTS OF STUDENT LOANS. (a) In General.--Section 127(c)(1)(B) is amended by striking ``in the case of payments made before January 1, 2026,''. (b) Inflation Adjustment.--Section 127 is amended-- (1) by redesignating subsection (d) as subsection (e), and (2) by inserting after subsection (c) the following new subsection: ``(d) Inflation Adjustment.-- ``(1) In general.--In the case of any taxable year beginning after 2026, both of the $5,250 amounts in subsection (a)(2) shall each be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(2) Rounding.--If any increase under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.''. (c) Effective Date.--The amendment made by this section shall apply to payments made after December 31, 2025. SEC. 70413. ADDITIONAL EXPENSES TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 ACCOUNTS. (a) In General.-- (1) In general.--Section 529(c)(7) is amended to read as follows: ``(7) Treatment of elementary and secondary tuition.--Any reference in this section to the term `qualified higher education expense' shall include a reference to the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school: ``(A) Tuition. ``(B) Curriculum and curricular materials. ``(C) Books or other instructional materials. ``(D) Online educational materials. ``(E) Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and-- ``(i) is licensed as a teacher in any State, ``(ii) has taught at an eligible educational institution, or ``(iii) is a subject matter expert in the relevant subject. ``(F) Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission. ``(G) Fees for dual enrollment in an institution of higher education. [[Page S3919]] ``(H) Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies.''. (2) Effective date.--The amendment made by this subsection shall apply to distributions made after the date of the enactment of this Act. (b) Increase in Limitation.-- (1) In general.--The last sentence of section 529(e)(3) is amended by striking ``$10,000'' and inserting ``$20,000''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2025. SEC. 70414. CERTAIN POSTSECONDARY CREDENTIALING EXPENSES TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 ACCOUNTS. (a) In General.--Section 529(e)(3) is amended by adding at the end the following new subparagraph: ``(C) Certain postsecondary credentialing expenses.--The term `qualified higher education expenses' includes qualified postsecondary credentialing expenses (as defined in subsection (f)).''. (b) Qualified Postsecondary Credentialing Expenses.-- Section 529 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: ``(f) Qualified Postsecondary Credentialing Expenses.--For purposes of this section-- ``(1) In general.--The term `qualified postsecondary credentialing expenses' means-- ``(A) tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary in a recognized postsecondary credential program, or any other expense incurred in connection with enrollment in or attendance at a recognized postsecondary credential program if such expense would, if incurred in connection with enrollment or attendance at an eligible educational institution, be covered under subsection (e)(3)(A), ``(B) fees for testing if such testing is required to obtain or maintain a recognized postsecondary credential, and ``(C) fees for continuing education if such education is required to maintain a recognized postsecondary credential. ``(2) Recognized postsecondary credential program.--The term `recognized postsecondary credential program' means any program to obtain a recognized postsecondary credential if-- ``(A) such program is included on a State list prepared under section 122(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(d)), ``(B) such program is listed in the public directory of the Web Enabled Approval Management System (WEAMS) of the Veterans Benefits Administration, or successor directory such program, ``(C) an examination (developed or administered by an organization widely recognized as providing reputable credentials in the occupation) is required to obtain or maintain such credential and such organization recognizes such program as providing training or education which prepares individuals to take such examination, or ``(D) such program is identified by the Secretary, after consultation with the Secretary of Labor, as being a reputable program for obtaining a recognized postsecondary credential for purposes of this subparagraph. ``(3) Recognized postsecondary credential.--The term `recognized postsecondary credential' means-- ``(A) any postsecondary employment credential that is industry recognized and is-- ``(i) any postsecondary employment credential issued by a program that is accredited by the Institute for Credentialing Excellence, the National Commission on Certifying Agencies, or the American National Standards Institute, ``(ii) any postsecondary employment credential that is included in the Credentialing Opportunities On-Line (COOL) directory of credentialing programs (or successor directory) maintained by the Department of Defense or by any branch of the Armed Forces, or ``(iii) any postsecondary employment credential identified for purposes of this clause by the Secretary, after consultation with the Secretary of Labor, as being industry recognized, ``(B) any certificate of completion of an apprenticeship that is registered and certified with the Secretary of Labor under the Act of August 16, 1937 (commonly known as the `National Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), ``(C) any occupational or professional license issued or recognized by a State or the Federal Government (and any certification that satisfies a condition for obtaining such a license), and ``(D) any recognized postsecondary credential as defined in section 3(52) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(52)), provided through a program described in paragraph (2)(A).''. (c) Effective Date.--The amendments made by this section shall apply to distributions made after the date of the enactment of this Act. SEC. 70415. MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME OF CERTAIN PRIVATE COLLEGES AND UNIVERSITIES. (a) In General.--Section 4968 is amended to read as follows: ``SEC. 4968. EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE COLLEGES AND UNIVERSITIES. ``(a) Tax Imposed.--There is hereby imposed on each applicable educational institution for the taxable year a tax equal to the applicable percentage of the net investment income of such institution for the taxable year. ``(b) Applicable Percentage.--For purposes of this section, the term `applicable percentage' means-- ``(1) 1.4 percent in the case of an institution with a student adjusted endowment of at least $500,000, and not in excess of $750,000, ``(2) 4 percent in the case of an institution with a student adjusted endowment in excess of $750,000, and not in excess of $2,000,000, and ``(3) 8 percent in the case of an institution with a student adjusted endowment in excess of $2,000,000. ``(c) Applicable Educational Institution.--For purposes of this subchapter, the term `applicable educational institution' means an eligible educational institution (as defined in section 25A(f)(2))-- ``(1) which had at least 3,000 tuition-paying students during the preceding taxable year, ``(2) more than 50 percent of the tuition-paying students of which are located in the United States, ``(3) the student adjusted endowment of which is at least $500,000, and ``(4) which is not described in the first sentence of section 511(a)(2)(B) (relating to State colleges and universities). ``(d) Student Adjusted Endowment.--For purposes of this section, the term `student adjusted endowment' means, with respect to any institution for any taxable year-- ``(1) the aggregate fair market value of the assets of such institution (determined as of the end of the preceding taxable year), other than those assets which are used directly in carrying out the institution's exempt purpose, divided by ``(2) the number of students of such institution. ``(e) Determination of Number of Students.--For purposes of subsections (c) and (d), the number of students of an institution (including for purposes of determining the number of students at a particular location) shall be based on the daily average number of full-time students attending such institution (with part-time students taken into account on a full-time student equivalent basis). ``(f) Net Investment Income.--For purposes of this section-- ``(1) In general.--Net investment income shall be determined under rules similar to the rules of section 4940(c). ``(2) Override of certain regulatory exceptions.-- ``(A) Student loan interest.--Net investment income shall be determined by taking into account any interest income from a student loan made by the applicable educational institution (or any related organization) as gross investment income. ``(B) Federally-subsidized royalty income.-- ``(i) In general.--Net investment income shall be determined by taking into account any Federally-subsidized royalty income as gross investment income. ``(ii) Federally-subsidized royalty income.--For purposes of this subparagraph-- ``(I) In general.--The term `Federally-subsidized royalty income' means any otherwise-regulatory-exempt royalty income if any Federal funds were used in the research, development, or creation of the patent, copyright, or other intellectual or intangible property from which such royalty income is derived. ``(II) Otherwise-regulatory-exempt royalty income.--For purposes of this subparagraph, the term `otherwise- regulatory-exempt royalty income' means royalty income which (but for this subparagraph) would not be taken into account as gross investment income by reason of being derived from patents, copyrights, or other intellectual or intangible property which resulted from the work of students or faculty members in their capacities as such with the applicable educational institution. ``(III) Federal funds.--The term `Federal funds' includes any grant made by, and any payment made under any contract with, any Federal agency to the applicable educational institution, any related organization, or any student or faculty member referred to in subclause (II). ``(g) Assets and Net Investment Income of Related Organizations.-- ``(1) In general.--For purposes of subsections (d) and (f), assets and net investment income of any related organization with respect to an educational institution shall be treated as assets and net investment income, respectively, of the educational institution, except that-- ``(A) no such amount shall be taken into account with respect to more than 1 educational institution, and ``(B) unless such organization is controlled by such institution or is described in section 509(a)(3) with respect to such institution for the taxable year, assets and net investment income which are not intended or available for the use or benefit of the educational institution shall not be taken into account. ``(2) Related organization.--For purposes of this subsection, the term `related organization' means, with respect to an educational institution, any organization which-- ``(A) controls, or is controlled by, such institution, [[Page S3920]] ``(B) is controlled by 1 or more persons which also control such institution, or ``(C) is a supported organization (as defined in section 509(f)(3)), or an organization described in section 509(a)(3), during the taxable year with respect to such institution. ``(h) Regulations.--The Secretary shall prescribe such regulations or other guidance as may be necessary to prevent avoidance of the tax under this section, including regulations or other guidance to prevent avoidance of such tax through the restructuring of endowment funds or other arrangements designed to reduce or eliminate the value of net investment income or assets subject to the tax imposed by this section.''. (b) Requirement to Report Certain Information With Respect to Application of Excise Tax Based on Investment Income of Private Colleges and Universities.--Section 6033 is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection: ``(o) Requirement to Report Certain Information With Respect to Excise Tax Based on Investment Income of Private Colleges and Universities.--Each applicable educational institution described in section 4968(c) which is subject to the requirements of subsection (a) shall include on the return required under subsection (a)-- ``(1) the number of tuition-paying students taken into account under section 4968(c), and ``(2) the number of students of such institution (determined under the rules of section 4968(e)).''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70416. EXPANDING APPLICATION OF TAX ON EXCESS COMPENSATION WITHIN TAX-EXEMPT ORGANIZATIONS. (a) In General.--Section 4960(c)(2) is amended to read as follows: ``(2) Covered employee.--For purposes of this section, the term `covered employee' means any employee of an applicable tax-exempt organization (or any predecessor of such an organization) and any former employee of such an organization (or predecessor) who was such an employee during any taxable year beginning after December 31, 2016.''. (b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2025. Subchapter C--Permanent Investments in Community Development SEC. 70421. PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES. (a) Decennial Designations.-- (1) Determination period.--Section 1400Z-1(c)(2)(B) is amended by striking ``beginning on the date of the enactment of the Tax Cuts and Jobs Act'' and inserting ``beginning on the decennial determination date''. (2) Decennial determination date.--Section 1400Z-1(c)(2) is amended by adding at the end the following new subparagraph: ``(C) Decennial determination date.--The term `decennial determination date' means-- ``(i) July 1, 2026, and ``(ii) each July 1 of the year that is 10 years after the preceding decennial determination date under this subparagraph.''. (3) Repeal of special rule for puerto rico.--Section 1400Z- 1(b) is amended by striking paragraph (3). (4) Limitation on number of designations.--Section 1400Z- 1(d)(1) is amended-- (A) in paragraph (1)-- (i) by striking ``and subsection (b)(3)'', and (ii) by inserting ``during any period'' after ``the number of population census tracts in a State that may be designated as qualified opportunity zones under this section'', and (B) in paragraph (2), by inserting ``during any period'' before the period at the end. (5) Effective dates.-- (A) In general.--Except as provided in paragraph (2), the amendments made by this subsection shall take effect on the date of the enactment of this Act. (B) Puerto rico.--The amendment made by paragraph (3) shall take effect on December 31, 2026. (b) Qualification for Designations.-- (1) Determination of low-income communities.--Section 1400Z-1(c) is amended by striking all that precedes paragraph (2) and inserting the following: ``(c) Other Definitions.--For purposes of this section-- ``(1) Low-income communities.--The term `low-income community' means any population census tract if-- ``(A) such population census tract has a median family income that-- ``(i) in the case of a population census tract not located within a metropolitan area, does not exceed 70 percent of the statewide median family income, or ``(ii) in the case of a population census tract located within a metropolitan area, does not exceed 70 percent of the metropolitan area median family income, or ``(B) such population census tract-- ``(i) has a poverty rate of at least 20 percent, and ``(ii) has a median family income that-- ``(I) in the case of a population census tract not located within a metropolitan area, does not exceed 125 percent of the statewide median family income, or ``(II) in the case of a population census tract located within a metropolitan area, does not exceed 125 percent of the metropolitan area median family income.''. (2) Repeal of rule for contiguous census tracts.--Section 1400Z-1 is amended by striking subsection (e) and by redesignating subsection (f) as subsection (e). (3) Period for which designation is in effect.--Section 1400Z-1(e), as redesignated by paragraph (2), is amended to read as follows: ``(e) Period for Which Designation Is in Effect.-- ``(1) In general.--A designation as a qualified opportunity zone shall remain in effect for the period beginning on the applicable start date and ending on the day before the date that is 10 years after the applicable start date. ``(2) Applicable start date.--For purposes of this section, the term `applicable start date' means, with respect to any qualified opportunity zone designated under this section, the January 1 following the date on which such qualified opportunity zone was certified and designated by the Secretary under subsection (b)(1)(B).''. (4) Effective date.--The amendments made by this subsection shall apply to areas designated under section 1400Z-1 of the Internal Revenue Code of 1986 after the date of the enactment of this Act. (c) Application of Special Rules for Capital Gains.-- (1) Repeal of sunset on election.--Section 1400Z-2(a)(2) is amended to read as follows: ``(2) Election.--No election may be made under paragraph (1) with respect to a sale or exchange if an election previously made with respect to such sale or exchange is in effect.''. (2) Modification of rules for deferral of gain.--Section 1400Z-2(b) is amended to read as follows: ``(b) Deferral of Gain Invested in Opportunity Zone Property.-- ``(1) Year of inclusion.--Gain to which subsection (a)(1)(B) applies shall be included in gross income in the taxable year which includes the earlier of-- ``(A) the date on which such investment is sold or exchanged, or ``(B) the date which is 5 years after the date the investment in the qualified opportunity fund was made. ``(2) Amount includible.-- ``(A) In general.--The amount of gain included in gross income under subsection (a)(1)(B) shall be the excess of-- ``(i) the lesser of the amount of gain excluded under subsection (a)(1)(A) or the fair market value of the investment as determined as of the date described in paragraph (1), over ``(ii) the taxpayer's basis in the investment. ``(B) Determination of basis.-- ``(i) In general.--Except as otherwise provided in this subparagraph or subsection (c), the taxpayer's basis in the investment shall be zero. ``(ii) Increase for gain recognized under subsection (a)(1)(B).--The basis in the investment shall be increased by the amount of gain recognized by reason of subsection (a)(1)(B) with respect to such investment. ``(iii) Investments held for 5 years.-- ``(I) In general.--In the case of any investment held for at least 5 years, the basis of such investment shall be increased by an amount equal to 10 percent (30 percent in the case of any investment in a qualified rural opportunity fund) of the amount of gain deferred by reason of subsection (a)(1)(A). ``(II) Application of increase.--For purposes of this subsection, any increase in basis under this clause shall be treated as occurring before the date described in paragraph (1)(B). ``(C) Qualified rural opportunity fund.--For purposes of subparagraph (B)(iii)-- ``(i) Qualified rural opportunity fund.--The term `qualified rural opportunity fund' means a qualified opportunity fund that holds at least 90 percent of its assets in qualified opportunity zone property which-- ``(I) is qualified opportunity zone business property substantially all of the use of which, during substantially all of the fund's holding period for such property, was in a qualified opportunity zone comprised entirely of a rural area, or ``(II) is qualified opportunity zone stock, or a qualified opportunity zone partnership interest, in a qualified opportunity zone business in which substantially all of the tangible property owned or leased is qualified opportunity zone business property described in subsection (d)(3)(A)(i) and substantially all the use of which is in a qualified opportunity zone comprised entirely of a rural area. For purposes of the preceding sentence, property held in the fund shall be measured under rules similar to the rules of subsection (d)(1). ``(ii) Rural area.--The term `rural area' means any area other than-- ``(I) a city or town that has a population of greater than 50,000 inhabitants, and ``(II) any urbanized area contiguous and adjacent to a city or town described in subclause (I).''. (3) Special rule for investments held at least 10 years.-- Section 1400Z-2(c) is amended by striking ``makes an election under this clause'' and all that follows and inserting ``makes an election under this subsection, the basis of such investment shall be equal to-- ``(A) in the case of an investment sold before the date that is 30 years after the date of the investment, the fair market value of such investment on the date such investment is sold or exchanged, or [[Page S3921]] ``(B) in any other case, the fair market value of such investment on the date that is 30 years after the date of the investment.''. (4) Determination of qualified opportunity zone property.-- (A) Qualified opportunity zone business property.--Section 1400Z-2(d)(2)(D)(i)(I) is amended by striking ``December 31, 2017'' and inserting ``the applicable start date (as defined in section 1400Z-1(e)(2)) with respect to the qualified opportunity zone described in subclause (III)''. (B) Qualified opportunity zone stock and partnership interests.--Section 1400Z-2(d)(2) is amended-- (i) by striking ``December 31, 2017,'' each place it appears in subparagraphs (B)(i)(I) and (C)(i) and inserting ``the applicable date'', and (ii) by adding at the end the following new subparagraph: ``(E) Applicable date.--For purposes of this subparagraph, the term `applicable date' means, with respect to any corporation or partnership which is a qualified opportunity zone business, the earliest date described in subparagraph (D)(i)(I) with respect to the qualified opportunity zone business property held by such qualified opportunity zone business.''. (C) Special rule for improvement of existing structures in rural areas.--Section 1400Z-2(d)(2)(D)(ii) is amended by inserting ``(50 percent of such adjusted basis in the case of property in a qualified opportunity zone comprised entirely of a rural area (as defined in subsection (b)(2)(C)(ii))'' after ``the adjusted basis of such property''. (5) Effective dates.-- (A) In general.--Except as otherwise provided in this paragraph, the amendments made by this subsection shall apply to amounts invested in qualified opportunity funds after December 31, 2026. (B) Acquisition of qualified opportunity zone property.-- The amendments made by subparagraphs (A) and (B) of paragraph (4) shall apply to property acquired after December 31, 2026. (C) Substantial improvement.--The amendment made by paragraph (4)(C) shall take effect on the date of the enactment of this Act. (d) Information Reporting on Qualified Opportunity Funds and Qualified Rural Opportunity Funds.-- (1) Filing requirements for funds and investors.--Subpart A of part III of subchapter A of chapter 61 is amended by inserting after section 6039J the following new sections: ``SEC. 6039K. RETURNS WITH RESPECT TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS. ``(a) In General.--Every qualified opportunity fund shall file an annual return (at such time and in such manner as the Secretary may prescribe) containing the information described in subsection (b). ``(b) Information From Qualified Opportunity Funds.--The information described in this subsection is-- ``(1) the name, address, and taxpayer identification number of the qualified opportunity fund, ``(2) whether the qualified opportunity fund is organized as a corporation or a partnership, ``(3) the value of the total assets held by the qualified opportunity fund as of each date described in section 1400Z- 2(d)(1), ``(4) the value of all qualified opportunity zone property held by the qualified opportunity fund on each such date, ``(5) with respect to each investment held by the qualified opportunity fund in qualified opportunity zone stock or a qualified opportunity zone partnership interest-- ``(A) the name, address, and taxpayer identification number of the corporation in which such stock is held or the partnership in which such interest is held, as the case may be, ``(B) each North American Industry Classification System (NAICS) code that applies to the trades or businesses conducted by such corporation or partnership, ``(C) the population census tract or population census tracts in which the qualified opportunity zone business property of such corporation or partnership is located, ``(D) the amount of the investment in such stock or partnership interest as of each date described in section 1400Z-2(d)(1), ``(E) the value of tangible property held by such corporation or partnership on each such date which is owned by such corporation or partnership, ``(F) the value of tangible property held by such corporation or partnership on each such date which is leased by such corporation or partnership, ``(G) the approximate number of residential units (if any) for any real property held by such corporation or partnership, and ``(H) the approximate average monthly number of full-time equivalent employees of such corporation or partnership for the year (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such corporation or partnership as determined appropriate by the Secretary, ``(6) with respect to the items of qualified opportunity zone business property held by the qualified opportunity fund-- ``(A) the North American Industry Classification System (NAICS) code that applies to the trades or businesses in which such property is held, ``(B) the population census tract in which the property is located, ``(C) whether the property is owned or leased, ``(D) the aggregate value of the items of qualified opportunity zone property held by the qualified opportunity fund as of each date described in section 1400Z-2(d)(1), and ``(E) in the case of real property, the number of residential units (if any), ``(7) the approximate average monthly number of full-time equivalent employees for the year of the trades or businesses of the qualified opportunity fund in which qualified opportunity zone business property is held (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such trades or businesses as determined appropriate by the Secretary, ``(8) with respect to each person who disposed of an investment in the qualified opportunity fund during the year-- ``(A) the name, address, and taxpayer identification number of such person, ``(B) the date or dates on which the investment disposed was acquired, and ``(C) the date or dates on which any such investment was disposed and the amount of the investment disposed, and ``(9) such other information as the Secretary may require. ``(c) Statement Required to Be Furnished to Investors.-- Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return by reason of subsection (b)(8) (at such time and in such manner as the Secretary may prescribe) a written statement showing-- ``(1) the name, address, and phone number of the information contact of the person required to make such return, and ``(2) the information required to be shown on such return by reason of subsection (b)(8) with respect to the person whose name is required to be so set forth. ``(d) Definitions.--For purposes of this section-- ``(1) In general.--Any term used in this section which is also used in subchapter Z of chapter 1 shall have the meaning given such term under such subchapter. ``(2) Full-time equivalent employees.--The term `full-time equivalent employees' means, with respect to any month, the sum of-- ``(A) the number of full-time employees (as defined in section 4980H(c)(4)) for the month, plus ``(B) the number of employees determined (under rules similar to the rules of section 4980H(c)(2)(E)) by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 120. ``(e) Application to Qualified Rural Opportunity Funds.-- Every qualified rural opportunity fund (as defined in section 1400Z-2(b)(2)(C)) shall file the annual return required under subsection (a), and the statements required under subsection (c), applied-- ``(1) by substituting `qualified rural opportunity' for `qualified opportunity' each place it appears, ``(2) by substituting `section 1400Z-2(b)(2)(C)' for `section 1400Z-2(d)(1)' each place it appears, and ``(3) by treating any reference (after the application of paragraph (1)) to qualified rural opportunity zone stock, a qualified rural opportunity zone partnership interest, a qualified rural opportunity zone business, or qualified opportunity zone business property as stock, an interest, a business, or property, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z- 2(b)(2)(C)(i). ``SEC. 6039L. INFORMATION REQUIRED FROM QUALIFIED OPPORTUNITY ZONE BUSINESSES AND QUALIFIED RURAL OPPORTUNITY ZONE BUSINESSES. ``(a) In General.--Every applicable qualified opportunity zone business shall furnish to the qualified opportunity fund described in subsection (b) a written statement at such time, in such manner, and setting forth such information as the Secretary may by regulations prescribe for purposes of enabling such qualified opportunity fund to meet the requirements of section 6039K(b)(5). ``(b) Applicable Qualified Opportunity Zone Business.--For purposes of subsection (a), the term `applicable qualified opportunity zone business' means any qualified opportunity zone business-- ``(1) which is a trade or business of a qualified opportunity fund, ``(2) in which a qualified opportunity fund holds qualified opportunity zone stock, or ``(3) in which a qualified opportunity fund holds a qualified opportunity zone partnership interest. ``(c) Other Terms.--Any term used in this section which is also used in subchapter Z of chapter 1 shall have the meaning given such term under such subchapter. ``(d) Application to Qualified Rural Opportunity Businesses.--Every applicable qualified rural opportunity zone business (as defined in subsection (b) determined after application of the substitutions described in this sentence) shall furnish the written statement required under subsection (a), applied-- ``(1) by substituting `qualified rural opportunity' for `qualified opportunity' each place it appears, and ``(2) by treating any reference (after the application of paragraph (1)) to qualified [[Page S3922]] rural opportunity zone stock, a qualified rural opportunity zone partnership interest, or a qualified rural opportunity zone business as stock, an interest, or a business, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z-2(b)(2)(C)(i).''. (2) Penalties.-- (A) In general.--Part II of subchapter B of chapter 68 is amended by inserting after section 6725 the following new section: ``SEC. 6726. FAILURE TO COMPLY WITH INFORMATION REPORTING REQUIREMENTS RELATING TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS. ``(a) In General.--If any person required to file a return under section 6039K fails to file a complete and correct return under such section in the time and in the manner prescribed therefor, such person shall pay a penalty of $500 for each day during which such failure continues. ``(b) Limitation.-- ``(1) In general.--The maximum penalty under this section on failures with respect to any 1 return shall not exceed $10,000. ``(2) Large qualified opportunity funds.--In the case of any failure described in subsection (a) with respect to a fund the gross assets of which (determined on the last day of the taxable year) are in excess of $10,000,000, paragraph (1) shall be applied by substituting `$50,000' for `$10,000'. ``(c) Penalty in Cases of Intentional Disregard.--If a failure described in subsection (a) is due to intentional disregard, then-- ``(1) subsection (a) shall be applied by substituting `$2,500' for `$500', ``(2) subsection (b)(1) shall be applied by substituting `$50,000' for `$10,000', and ``(3) subsection (b)(2) shall be applied by substituting `$250,000' for `$50,000'. ``(d) Inflation Adjustment.-- ``(1) In general.--In the case of any failure relating to a return required to be filed in a calendar year beginning after 2025, each of the dollar amounts in subsections (a), (b), and (c) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting `calendar year 2024' for `calendar year 2016' in subparagraph (A)(ii) thereof. ``(2) Rounding.-- ``(A) In general.--If the $500 dollar amount in subsection (a) and (c)(1) or the $2,500 amount in subsection (c)(1), after being increased under paragraph (1), is not a multiple of $10, such dollar amount shall be rounded to the next lowest multiple of $10. ``(B) Asset threshold.--If the $10,000,000 dollar amount in subsection (b)(2), after being increased under paragraph (1), is not a multiple of $10,000, such dollar amount shall be rounded to the next lowest multiple of $10,000. ``(C) Other dollar amounts.--If any dollar amount in subsection (b) or (c) (other than any amount to which subparagraph (A) or (B) applies), after being increased under paragraph (1), is not a multiple of $1,000, such dollar amount shall be rounded to the next lowest multiple of $1,000.''. (B) Information required to be sent to other taxpayers.-- Section 6724(d)(2), as amended by the preceding provisions of this Act, is amended-- (i) by striking ``or'' at the end of subparagraph (LL), (ii) by striking the period at the end of subparagraph (MM) and inserting a comma, and (iii) by inserting after subparagraph (MM) the following new subparagraphs: ``(NN) section 6039K(c) (relating to disposition of qualified opportunity fund investments), or ``(OO) section 6039L (relating to information required from certain qualified opportunity zone businesses and qualified rural opportunity zone businesses).''. (3) Electronic filing.--Section 6011(e) is amended by adding at the end the following new paragraph: ``(8) Qualified opportunity funds and qualified rural opportunity funds.--Notwithstanding paragraphs (1) and (2), any return filed by a qualified opportunity fund or qualified rural opportunity fund under section 6039K shall be filed on magnetic media or other machine-readable form.''. (4) Clerical amendments.-- (A) The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by inserting after the item relating to section 6039J the following new items: ``Sec. 6039K. Returns with respect to qualified opportunity funds and qualified rural opportunity funds. ``Sec. 6039L. Information required from qualified opportunity zone businesses and qualified rural opportunity zone businesses.''. (B) The table of sections for part II of subchapter B of chapter 68 is amended by inserting after the item relating to section 6725 the following new item: ``Sec. 6726. Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds.''. (5) Effective date.--The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act. (e) Secretary Reporting of Data on Opportunity Zone and Rural Opportunity Zone Tax Incentives.-- (1) In general.--In addition to amounts otherwise available, there is appropriated, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2028, for necessary expenses of the Internal Revenue Service to make the reports described in paragraph (2). (2) Reports.--As soon as practical after the date of the enactment of this Act, and annually thereafter, the Secretary of the Treasury, or the Secretary's delegate (referred to in this section as the ``Secretary'') shall make publicly available a report on qualified opportunity funds. (3) Information included.--The report required under paragraph (2) shall include, to the extent available, the following information: (A) The number of qualified opportunity funds. (B) The aggregate dollar amount of assets held in qualified opportunity funds. (C) The aggregate dollar amount of investments made by qualified opportunity funds in qualified opportunity fund property, stated separately for each North American Industry Classification System (NAICS) code. (D) The percentage of population census tracts designated as qualified opportunity zones that have received qualified opportunity fund investments. (E) For each population census tract designated as a qualified opportunity zone, the approximate average monthly number of full-time equivalent employees of the qualified opportunity zone businesses in such qualified opportunity zone for the preceding 12-month period (within numerical ranges identified by the Secretary) or such other indication of the employment impact of such qualified opportunity fund businesses as determined appropriate by the Secretary. (F) The percentage of the total amount of investments made by qualified opportunity funds in-- (i) qualified opportunity zone property which is real property; and (ii) other qualified opportunity zone property. (G) For each population census tract, the aggregate approximate number of residential units resulting from investments made by qualified opportunity funds in real property. (H) The aggregate dollar amount of investments made by qualified opportunity funds in each population census tract. (4) Additional information.-- (A) In general.--Beginning with the report submitted under paragraph (2) for the 6th year after the date of the enactment of this Act, the Secretary shall include in such report the impacts and outcomes of a designation of a population census tract as a qualified opportunity zone as measured by economic indicators, such as job creation, poverty reduction, new business starts, and other metrics as determined by the Secretary. (B) Semi-decennial information.-- (i) In general.--In the case of any report submitted under paragraph (2) in the 6th year or the 11th year after the date of the enactment of this Act, the Secretary shall include the following information: (I) For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) between the 5-year period ending on the date of the enactment of Public Law 115-97 and the most recent 5-year period for which data is available. (II) For population census tracts designated as a qualified opportunity zone, a comparison (based on aggregate information) of the factors listed in clause (iii) for the most recent 5-year period for which data is available between such population census tracts and similar population census tracts that were not designated as a qualified opportunity zone. (ii) Control groups.--For purposes of clause (i), the Secretary may combine population census tracts into such groups as the Secretary determines appropriate for purposes of making comparisons. (iii) Factors listed.--The factors listed in this clause are the following: (I) The unemployment rate. (II) The number of persons working in the population census tract, including the percentage of such persons who were not residents in the population census tract in the preceding year. (III) Individual, family, and household poverty rates. (IV) Median family income of residents of the population census tract. (V) Demographic information on residents of the population census tract, including age, income, education, race, and employment. (VI) The average percentage of income of residents of the population census tract spent on rent annually. (VII) The number of residences in the population census tract. (VIII) The rate of home ownership in the population census tract. (IX) The average value of residential property in the population census tract. (X) The number of affordable housing units in the population census tract. (XI) The number of new business starts in the population census tract. (XII) The distribution of employees in the population census tract by North American Industry Classification System (NAICS) code. [[Page S3923]] (5) Protection of identifiable return information.--In making reports required under this subsection, the Secretary-- (A) shall establish appropriate procedures to ensure that any amounts reported do not disclose taxpayer return information that can be associated with any particular taxpayer or competitive or proprietary information, and (B) if necessary to protect taxpayer return information, may combine information required with respect to individual population census tracts into larger geographic areas. (6) Definitions.--Any term used in this subsection which is also used in subchapter Z of chapter 1 of the Internal Revenue Code of 1986 shall have the meaning given such term under such subchapter. (7) Reports on qualified rural opportunity funds.--The Secretary shall make publicly available, with respect to qualified rural opportunity funds, separate reports as required under this subsection, applied-- (A) by substituting ``qualified rural opportunity'' for ``qualified opportunity'' each place it appears, (B) by substituting a reference to this Act for ``Public Law 115-97'', and (C) by treating any reference (after the application of subparagraph (A)) to qualified rural opportunity zone stock, qualified rural opportunity zone partnership interest, qualified rural opportunity zone business, or qualified opportunity zone business property as stock, interest, business, or property, respectively, described in subclause (I) or (II), as the case may be, of section 1400Z- 2(b)(2)(C)(i) of the Internal Revenue Code of 1986. SEC. 70422. PERMANENT ENHANCEMENT OF LOW-INCOME HOUSING TAX CREDIT. (a) Permanent State Housing Credit Ceiling Increase for Low-income Housing Credit.-- (1) In general.--Section 42(h)(3)(I) is amended-- (A) by striking ``2018, 2019, 2020, and 2021,'' and inserting ``beginning after December 31, 2025,'', (B) by striking ``1.125'' and inserting ``1.12'', and (C) by striking ``2018, 2019, 2020, and 2021'' in the heading and inserting ``calendar years after 2025''. (2) Effective date.--The amendments made by this subsection shall apply to calendar years beginning after December 31, 2025. (b) Tax-exempt Bond Financing Requirement.-- (1) In general.--Section 42(h)(4) is amended by striking subparagraph (B) and inserting the following: ``(B) Special rule where minimum percent of buildings is financed with tax-exempt bonds subject to volume cap.--For purposes of subparagraph (A), paragraph (1) shall not apply to any portion of the credit allowable under subsection (a) with respect to a building if-- ``(i) 50 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), or ``(ii)(I) 25 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), and ``(II) 1 or more of such obligations-- ``(aa) are part of an issue the issue date of which is after December 31, 2025, and ``(bb) provide the financing for not less than 5 percent of the aggregate basis of such building and the land on which the building is located.''. (2) Effective date.-- (A) In general.--The amendment made by this subsection shall apply to buildings placed in service in taxable years beginning after December 31, 2025. (B) Rehabilitation expenditures treated as separate new building.--In the case of any building with respect to which any expenditures are treated as a separate new building under section 42(e) of the Internal Revenue Code of 1986, for purposes of subparagraph (A), both the existing building and the separate new building shall be treated as having been placed in service on the date such expenditures are treated as placed in service under section 42(e)(4) of such Code. SEC. 70423. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT. (a) In General.--Section 45D(f)(1)(H) is amended by striking ``for for each of calendar years 2020 through 2025'' and inserting `` for each calendar year after 2019''. (b) Carryover of Unused Limitation.--Section 45D(f)(3) is amended-- (1) by striking ``If the'' and inserting the following: ``(A) In general.--If the'', and (2) by striking the second sentence and inserting the following: ``(B) Limitation.--No amount may be carried under subparagraph (A) to any calendar year afer the fifth calendar year after the calendar year in which the excess described in such subparagraph occurred. For purposes of this subparagraph, any excess described in subparagraph (A) with respect to any calendar year before 2026 shall be treated as occurring in calendar year 2025.''. (c) Effective Date.--The amendments made by this section shall apply to calendar years beginning after December 31, 2025. SEC. 70424. PERMANENT AND EXPANDED REINSTATEMENT OF PARTIAL DEDUCTION FOR CHARITABLE CONTRIBUTIONS OF INDIVIDUALS WHO DO NOT ELECT TO ITEMIZE. (a) In General.--Section 170(p) is amended-- (1) by striking ``$300 ($600'' and inserting ``$1,000 ($2,000'', and (2) by striking ``beginning in 2021''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70425. 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS. (a) In General.-- (1) In general.--Paragraph (1) of section 170(b) is amended by adding at the end the following new subparagraph: ``(I) 0.5-percent floor.--Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer's contribution base for the taxable year. The preceding sentence shall be applied-- ``(i) first, by taking into account charitable contributions to which subparagraph (D) applies to the extent thereof, ``(ii) second, by taking into account charitable contributions to which subparagraph (C) applies to the extent thereof, ``(iii) third, by taking into account charitable contributions to which subparagraph (B) applies to the extent thereof, ``(iv) fourth, by taking into account charitable contributions to which subparagraph (E) applies to the extent thereof, ``(v) fifth, by taking into account charitable contributions to which subparagraph (A) applies to the extent thereof, and ``(vi) sixth, by taking into account charitable contributions to which subparagraph (G) applies to the extent thereof.''. (2) Application of carryforward.--Paragraph (1) of section 170(d) is amended by adding at the end the following new subparagraph: ``(C) Contributions disallowed by 0.5-percent floor carried forward only from years in which limitation is exceeded.-- ``(i) In general.--In the case of any taxable year from which an excess is carried forward (determined without regard to this subparagraph) under any carryover rule, the applicable carryover rule shall be applied by increasing the excess determined under such applicable carryover rule for the contribution year (before the application of subparagraph (B)) by the amount attributable to the charitable contributions to which such rule applies which is not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I). ``(ii) Carryover rule.--For purposes of this subparagraph, the term `carryover rule' means-- ``(I) subparagraph (A) of this paragraph, ``(II) subparagraphs (C)(ii), (D)(ii), (E)(ii), and (G)(ii) of subsection (b)(1), and ``(III) the second sentence of subsection (b)(1)(B). ``(iii) Applicable carryover rule.--For purposes of this subparagraph, the term `applicable carryover rule' means any carryover rule applicable to charitable contributions which were (in whole or in part) not allowed as a deduction for the contribution year by reason of subsection (b)(1)(I).''. (3) Coordination with deduction for nonitemizers.--Section 170(p), as amended by this Act, is further amended by inserting ``, (b)(1)(I),'' after ``subsections (b)(1)(G)(ii)''. (b) Modification of Limitation for Cash Contributions.-- (1) In general.--Clause (i) of section 170(b)(1)(G) is amended to read as follows: ``(i) In general.--For taxable years beginning after December 31, 2017, any contribution of cash to an organization described in subparagraph (A) shall be allowed as a deduction under subsection (a) to the extent that the aggregate of such contributions does not exceed the excess of-- ``(I) 60 percent of the taxpayer's contribution base for the taxable year, over ``(II) the aggregate amount of contributions taken into account under subparagraph (A) for such taxable year.''. (2) Coordination with other limitations.-- (A) In general.--Clause (iii) of section 170(b)(1)(G) is amended-- (i) by striking ``subparagraphs (a) and (b)'' in the heading and inserting ``subparagraph (a)'', and (ii) in subclause (II), by striking ``, and subparagraph (B)'' and all that follows through ``this subparagraph''. (B) Other contributions.--Subparagraph (B) of section 170(b)(1) is amended-- (i) by striking ``to which subparagraph (A)'' both places it appears and inserting ``to which subparagraph (A) or (G)'', and (ii) in clause (ii), by striking ``over the amount'' and all that follows through ``subparagraph (C)).'' and inserting ``over-- ``(I) the amount of charitable contributions allowable under subparagraph (A) (determined without regard to subparagraph (C)) and subparagraph (G), reduced by ``(II) so much of the contributions taken into account under subparagraph (G) as does not exceed 10 percent of the taxpayer's contribution base.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70426. 1-PERCENT FLOOR ON DEDUCTION OF CHARITABLE CONTRIBUTIONS MADE BY CORPORATIONS. (a) In General.--Section 170(b)(2)(A) is amended to read as follows: [[Page S3924]] ``(A) In general.--Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section for any taxable year, other than any contribution to which subparagraph (B) or (C) applies, shall be allowed only to the extent that the aggregate of such contributions-- ``(i) exceeds 1 percent of the taxpayer's taxable income for the taxable year, and ``(ii) does not exceed 10 percent of the taxpayer's taxable income for the taxable year.''. (b) Application of Carryforward.--Section 170(d)(2) is amended to read as follows: ``(2) Corporations.-- ``(A) In general.--Any charitable contribution taken into account under subsection (b)(2)(A) for any taxable year which is not allowed as a deduction by reason of clause (ii) thereof shall be taken into account as a charitable contribution for the succeeding taxable year, except that, for purposes of determining under this subparagraph whether such contribution is allowed in such succeeding taxable year, contributions in such succeeding taxable year (determined without regard to this paragraph) shall be taken into account under subsection (b)(2)(A) before any contribution taken into account by reason of this paragraph. ``(B) 5-year carryforward.--No charitable contribution may be carried forward under subparagraph (A) to any taxable year following the fifth taxable year after the taxable year in which the charitable contribution was first taken into account. For purposes of the preceding sentence, contributions shall be treated as allowed on a first-in first-out basis. ``(C) Contributions disallowed by 1-percent floor carried forward only from years in which 10 percent limitation is exceeded.--In the case of any taxable year from which a charitable contribution is carried forward under subparagraph (A) (determined without regard this subparagraph), subparagraph (A) shall be applied by substituting `clause (i) or (ii)' for `clause (ii)'. ``(D) Special rule for net operating loss carryovers.--The amount of charitable contributions carried forward under subparagraph (A) shall be reduced to the extent that such carryfoward would (but for this subparagraph) reduce taxable income (as computed for purposes of the second sentence of section 172(b)(2)) and increase a net operating loss carryover under section 172 to a succeeding taxable year.''. (c) Conforming Amendments.--Subparagraphs (B)(ii) and (C)(ii) of section 170(b)(2) are each amended by inserting ``other than subparagraph (C) thereof'' after ``subsection (d)(2)''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70427. PERMANENT INCREASE IN LIMITATION ON COVER OVER OF TAX ON DISTILLED SPIRITS. (a) In General.--Paragraph (1) of section 7652(f) is amended to read as follows: ``(1) $13.25, or''. (b) Effective Date.--The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2025. SEC. 70428. NONPROFIT COMMUNITY DEVELOPMENT ACTIVITIES IN REMOTE NATIVE VILLAGES. (a) In General.--For purposes of subchapter F of chapter 1 of the Internal Revenue Code of 1986, any activity substantially related to participation or investment in fisheries in the Bering Sea and Aleutian Islands statistical and reporting areas (as described in Figure 1 of section 679 of title 50, Code of Federal Regulations) carried on by an entity identified in section 305(i)(1)(D) of the Magnuson- Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in effect on the date of enactment of this section) shall be considered substantially related to the exercise or performance of the purpose constituting the basis of such entity's exemption under section 501(a) of such Code if the conduct of such activity is in furtherance of 1 or more of the purposes specified in section 305(i)(1)(A) of such Act (as so in effect). For purposes of this paragraph, activities substantially related to participation or investment in fisheries include the harvesting, processing, transportation, sales, and marketing of fish and fish products of the Bering Sea and Aleutian Islands statistical and reporting areas. (b) Application to Certain Wholly Owned Subsidiaries.--If the assets of a trade or business relating to an activity described in subsection (a) of any subsidiary wholly owned by an entity identified in section 305(i)(1)(D) of the Magnuson- Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)(D)) (as in effect on the date of enactment of this section) are transferred to such entity (including in liquidation of such subsidiary) not later than 18 months after the date of the enactment of this Act-- (1) no gain or income resulting from such transfer shall be recognized to either such subsidiary or such entity under such Code, and (2) all income derived from such subsidiary from such transferred trade or business shall be exempt from taxation under such Code. (c) Effective Date.--This section shall take effect on the date of the enactment of this Act and shall remain effective during the existence of the western Alaska community development quota program established by Section 305(i)(1) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1855(i)(1)), as amended. SEC. 70429. ADJUSTMENT OF CHARITABLE DEDUCTION FOR CERTAIN EXPENSES INCURRED IN SUPPORT OF NATIVE ALASKAN SUBSISTENCE WHALING. (a) In General.--Section 170(n)(1) of the Internal Revenue Code of 1986 is amended by striking ``$10,000'' and inserting ``$50,000''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70430. EXCEPTION TO PERCENTAGE OF COMPLETION METHOD OF ACCOUNTING FOR CERTAIN RESIDENTIAL CONSTRUCTION CONTRACTS. (a) In General.--Section 460(e) is amended-- (1) in paragraph (1)-- (A) by striking ``home construction contract'' both places it appears and inserting ``residential construction contract'', and (B) by inserting ``(determined by substituting `3-year' for `2-year' in subparagraph (B)(i) for any residential construction contract which is not a home construction contract)'' after ``the requirements of clauses (i) and (ii) of subparagraph (B)'', (2) by striking paragraph (4) and redesignating paragraph (5) as paragraph (4), and (3) in subparagraph (A) of paragraph (4), as so redesignated, by striking ``paragraph (4)'' and inserting ``paragraph (3)''. (b) Application of Exception for Purposes of Alternative Minimum Tax.--Section 56(a)(3) is amended by striking ``any home construction contract (as defined in section 460(e)(6))'' and inserting ``any residential construction contract (as defined in section 460(e)(4))''. (c) Effective Date.--The amendments made by this section shall apply to contracts entered into after the date of the enactment of this Act. Subchapter D--Permanent Investments in Small Business and Rural America SEC. 70431. EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION. (a) Phased Increase in Exclusion for Gain From Qualified Small Business Stock.-- (1) In general.--Section 1202(a)(1) is amended to read as follows: ``(1) In general.-- In the case of a taxpayer other than a corporation, gross income shall not include-- ``(A) except as provided in paragraphs (3) and (4), 50 percent of any gain from the sale or exchange of qualified small business stock acquired on or before the applicable date and held for more than 5 years, and ``(B) the applicable percentage of any gain from the sale or exchange of qualified small business stock acquired after the applicable date and held for at least 3 years.''. (2) Applicable percentage.--Section 1202(a) is amended by adding at the end the following new paragraph: ``(5) Applicable percentage.--The applicable percentage under paragraph (1) shall be determined under the following table: ``Years stock held: Applicable percentage: 3 years.........................................................50%.... 4 years.........................................................75%.... 5 years or more..............................................100%''.... (3) Applicable date; acquisition date.--Section 1202(a), as amended by paragraph (2), is amended by adding at the end the following new paragraph: ``(6) Applicable date; acquisition date.--For purposes of this section-- ``(A) Applicable date.--The term `applicable date' means the date of the enactment of this paragraph. ``(B) Acquisition date.--In the case of any stock which would (but for this paragraph) be treated as having been acquired before, on, or after the applicable date, whichever is applicable, the acquisition date for purposes of this section shall be the first day on which such stock was held by the taxpayer determined after the application of section 1223.''. (4) Continued treatment as not item of tax preference.-- (A) In general.--Section 57(a)(7) is amended by striking ``An amount'' and inserting ``In the case of stock acquired on or before the date of the enactment of the Creating Small Business Jobs Act of 2010, an amount''. (B) Conforming amendment.--Section 1202(a)(4) is amended-- (i) by striking ``, and'' at the end of subparagraph (B) and inserting a period, and (ii) by striking subparagraph (C). (5) Other conforming amendments.-- (A) Paragraphs (3)(A) and (4)(A) of section 1202(a) are each amended by striking ``paragraph (1)'' and inserting ``paragraph (1)(A)''. (B) Paragraph (4)(A) of section 1202(a) is amended by inserting ``and on or before the applicable date'' after ``2010''. (C) Sections 1202(b)(2), 1202(g)(2)(A), and 1202(j)(1)(A) are each amended by striking ``more than 5 years'' and inserting ``at least 3 years (more than 5 years in the case of stock acquired on or before the applicable date)''. (6) Effective dates.-- (A) In general.--Except as provided in subparagraph (B), the amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act. (B) Continued treatment as not item of tax preference.--The amendments made by paragraph (4) shall take effect as if included in the enactment of section 2011 of the Creating Small Business Jobs Act of 2010. (b) Increase in Per Issuer Limitation.-- (1) In general.--Subparagraph (A) of section 1202(b)(1) is amended to read as follows: [[Page S3925]] ``(A) the applicable dollar limit for the taxable year, or''. (2) Applicable dollar limit.--Section 1202 (b) is amended by adding at the end the following: ``(4) Applicable dollar limit.--For purposes of paragraph (1)(A), the applicable dollar limit for any taxable year with respect to eligible gain from 1 or more dispositions by a taxpayer of qualified business stock of a corporation is-- ``(A) if such stock was acquired by the taxpayer on or before the applicable date, $10,000,000, reduced by the aggregate amount of eligible gain taken into account by the taxpayer under subsection (a) for prior taxable years and attributable to dispositions of stock issued by such corporation and acquired by the taxpayer before, on, or after the applicable date, and ``(B) if such stock was acquired by the taxpayer after the applicable date, $15,000,000, reduced by the sum of-- ``(i) the aggregate amount of eligible gain taken into account by the taxpayer under subsection (a) for prior taxable years and attributable to dispositions of stock issued by such corporation and acquired by the taxpayer before, on, or after the applicable date, plus ``(ii) the aggregate amount of eligible gain taken into account by the taxpayer under subsection (a) for the taxable year and attributable to dispositions of stock issued by such corporation and acquired by the taxpayer on or before the applicable date. ``(5) Inflation adjustment.-- ``(A) In general.--In the case of any taxable year beginning after 2026, the $15,000,000 amount in paragraph (4)(B) shall be increased by an amount equal to -- ``(i) such dollar amount, multiplied by ``(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under this subparagraph is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000. ``(B) No increase once limit reached.--If, for any taxable year, the eligible gain attributable to dispositions of stock issued by a corporation and acquired by the taxpayer after the applicable date exceeds the applicable dollar limit, then notwithstanding any increase under subparagraph (A) for any subsequent taxable year, the applicable dollar limit for such subsequent taxable year shall be zero.''. (3) Separate returns.--Subparagraph (A) of section 1202(b)(3) is amended to read as follows: ``(A) Separate returns.--In the case of a separate return by a married individual for any taxable year-- ``(i) paragraph (4)(A) shall be applied by substituting `$5,000,000' for `$10,000,000', and ``(ii) paragraph (4)(B) shall be applied by substituting one-half of the dollar amount in effect under such paragraph for the taxable year for the amount so in effect.''. (4) Effective date.--The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act. (c) Increase in Limit in Aggregate Gross Assets.-- (1) In general.--Subparagraphs (A) and (B) of section 1202(d)(1) are each amended by striking ``$50,000,000'' and inserting ``$75,000,000''. (2) Inflation adjustment.--Section 1202(b) is amended by adding at the end the following: ``(4) Inflation adjustment.--In the case of any taxable year beginning after 2026, the $75,000,000 amounts in paragraphs (1)(A) and (1)(B) shall each be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under this paragraph is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000.''. (3) Effective date.--The amendments made by this subsection shall apply to stock issued after the date of the enactment of this Act. SEC. 70432. REPEAL OF REVISION TO DE MINIMIS RULES FOR THIRD PARTY NETWORK TRANSACTIONS. (a) Reinstatement of Exception for De Minimis Payments as in Effect Prior to Enactment of American Rescue Plan Act of 2021.-- (1) In general.--Section 6050W(e) is amended to read as follows: ``(e) Exception for De Minimis Payments by Third Party Settlement Organizations.--A third party settlement organization shall be required to report any information under subsection (a) with respect to third party network transactions of any participating payee only if-- ``(1) the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions exceeds $20,000, and ``(2) the aggregate number of such transactions exceeds 200.''. (2) Effective date.--The amendment made by this subsection shall take effect as if included in section 9674 of the American Rescue Plan Act. (b) Application of De Minimis Rule for Third Party Network Transactions to Backup Withholding.-- (1) In general.--Section 3406(b) is amended by adding at the end the following new paragraph: ``(8) Other reportable payments include payments in settlement of third party network transactions only where aggregate transactions exceed reporting threshold for the calendar year.-- ``(A) In general.--Any payment in settlement of a third party network transaction required to be shown on a return required under section 6050W which is made during any calendar year shall be treated as a reportable payment only if-- ``(i) the aggregate number of transactions with respect to the participating payee during such calendar year exceeds the number of transactions specified in section 6050W(e)(2), and ``(ii) the aggregate amount of transactions with respect to the participating payee during such calendar year exceeds the dollar amount specified in section 6050W(e)(1) at the time of such payment. ``(B) Exception if third party network transactions made in prior year were reportable.--Subparagraph (A) shall not apply with respect to payments to any participating payee during any calendar year if one or more payments in settlement of third party network transactions made by the payor to the participating payee during the preceding calendar year were reportable payments.''. (2) Effective date.--The amendment made by this subsection shall apply to calendar years beginning after December 31, 2024. SEC. 70433. INCREASE IN THRESHOLD FOR REQUIRING INFORMATION REPORTING WITH RESPECT TO CERTAIN PAYEES. (a) In General.--Section 6041(a) is amended by striking ``$600'' and inserting ``$2,000''. (b) Inflation Adjustment.--Section 6041 is amended by adding at the end the following new subsection: ``(h) Inflation Adjustment.--In the case of any calendar year after 2026, the dollar amount in subsection (a) shall be increased by an amount equal to-- ``(1) such dollar amount, multiplied by ``(2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.''. (c) Application to Reporting on Remuneration for Services.--Section 6041A(a)(2) is amended by striking ``is $600 or more'' and inserting ``equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)''. (d) Application to Backup Withholding.--Section 3406(b)(6) is amended-- (1) by striking ``$600'' in subparagraph (A) and inserting ``the dollar amount in effect for such calendar year under section 6041(a)'', and (2) by striking ``Only Where Aggregate for Calendar Year Is $600 or More'' in the heading and inserting ``Only Where in Excess of Threshold''. (e) Conforming Amendments.-- (1) The heading of section 6041(a) is amended by striking ``of $600 or More'' and inserting ``Exceeding Threshold''. (2) Section 6041(a) is amended by striking ``taxable year'' and inserting ``calendar year''. (f) Effective Date.--The amendments made by this section shall apply with respect to payments made after December 31, 2025. SEC. 70434. TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING PRODUCTIONS. (a) Election to Treat Costs as Expenses.--Section 181(a)(1) is amended by striking ``qualified film or television production, and any qualified live theatrical production,'' and inserting ``qualified film or television production, any qualified live theatrical production, and any qualified sound recording production''. (b) Dollar Limitation.--Section 181(a)(2) is amended by adding at the end the following new subparagraph: ``(C) Qualified sound recording production.--Paragraph (1) shall not apply to so much of the aggregate cost of any qualified sound recording production, or to so much of the aggregate, cumulative cost of all such qualified sound recording productions in the taxable year, as exceeds $150,000.''. (c) No Other Deduction or Amortization Deduction Allowable.--Section 181(b) is amended by striking ``qualified film or television production or any qualified live theatrical production'' and inserting ``qualified film or television production, any qualified live theatrical production, or any qualified sound recording production''. (d) Election.--Section 181(c)(1) is amended by striking ``qualified film or television production or any qualified live theatrical production'' and inserting ``qualified film or television production, any qualified live theatrical production, or any qualified sound recording production''. (e) Qualified Sound Recording Production Defined.--Section 181 is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection: ``(f) Qualified Sound Recording Production.--For purposes of this section, the term `qualified sound recording production' means a sound recording (as defined in section 101 of title 17, United States Code) produced and recorded in the United States.''. [[Page S3926]] (f) Application of Termination.--Section 181(h), as redesignated by subsection (e), is amended by striking ``qualified film and television productions or qualified live theatrical productions'' and inserting ``qualified film and television productions, qualified live theatrical productions, or qualified sound recording productions''. (g) Bonus Depreciation.-- (1) Qualified sound recording production as qualified property.--Section 168(k)(2)(A)(i) is amended-- (A) by striking ``or'' at the end of subclause (IV), by inserting ``or'' at the end of subclause (V), and by inserting after subclause (V) the following: ``(VI) which is a qualified sound recording production (as defined in subsection (f) of section 181) for which a deduction would have been allowable under section 181 without regard to subsections (a)(2) and (h) of such section or this subsection, and'', and (B) in subclauses (IV) and (V) (as so amended) by striking ``without regard to subsections (a)(2) and (g)'' both places it appears and inserting ``without regard to subsections (a)(2) and (h)''. (2) Production placed in service.--Section 168(k)(2)(H) is amended by striking ``and'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``, and'', and by adding after clause (ii) the following: ``(iii) a qualified sound recording production shall be considered to be placed in service at the time of initial release or broadcast.''. (h) Conforming Amendments.-- (1) The heading for section 181 is amended to read as follows: ``treatment of certain qualified productions.''. (2) The table of sections for part VI of subchapter B of chapter 1 is amended by striking the item relating to section 181 and inserting the following new item: ``Sec. 181. Treatment of certain qualified productions.''. (i) Effective Date.--The amendments made by this section shall apply to productions commencing in taxable years ending after the date of the enactment of this Act. SEC. 70435. EXCLUSION OF INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL PROPERTY. (a) In General.--Part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 139K the following new section: ``SEC. 139L. INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL PROPERTY. ``(a) In General.--Gross income shall not include 25 percent of the interest received by a qualified lender on any qualified real estate loan. ``(b) Qualified Lender.--For purposes of this section, the term `qualified lender' means-- ``(1) any bank or savings association the deposits of which are insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.), ``(2) any State- or federally-regulated insurance company, ``(3) any entity wholly owned, directly or indirectly, by a company that is treated as a bank holding company for purposes of section 8 of the International Banking Act of 1978 (12 U.S.C. 3106) if-- ``(A) such entity is organized, incorporated, or established under the laws of the United States or any State, and ``(B) the principal place of business of such entity is in the United States (including any territory of the United States), ``(4) any entity wholly owned, directly or indirectly, by a company that is considered an insurance holding company under the laws of any State if such entity satisfies the requirements described in subparagraphs (A) and (B) of paragraph (3), and ``(5) with respect to interest received on a qualified real estate loan secured by real estate described in subsection (c)(3)(A), any federally chartered instrumentality of the United States established under section 8.1(a) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-1(a)). ``(c) Qualified Real Estate Loan.--For purposes of this section-- ``(1) In general.--The term `qualified real estate loan' means any loan-- ``(A) secured by-- ``(i) rural or agricultural real estate, or ``(ii) a leasehold mortgage (with a status as a lien) on rural or agricultural real estate, ``(B) made to a person other than a specified foreign entity (as defined in section 7701(a)(51)), and ``(C) made after the date of the enactment of this section. For purposes of the preceding sentence, the determination of whether property securing such loan is rural or agricultural real estate shall be made as of the time the interest income on such loan is accrued. ``(2) Refinancings.--For purposes of subparagraphs (A) and (C) of paragraph (1), a loan shall not be treated as made after the date of the enactment of this section to the extent that the proceeds of such loan are used to refinance a loan which was made on or before the date of the enactment of this section (or, in the case of any series of refinancings, the original loan was made on or before such date). ``(3) Rural or agricultural real estate.--The term `rural or agricultural real estate' means-- ``(A) any real property which is substantially used for the production of one or more agricultural products, ``(B) any real property which is substantially used in the trade or business of fishing or seafood processing, and ``(C) any aquaculture facility. Such term shall not include any property which is not located in a State or a possession of the United States. ``(4) Aquaculture facility.--The term `aquaculture facility' means any land, structure, or other appurtenance that is used for aquaculture (including any hatchery, rearing pond, raceway, pen, or incubator). ``(d) Coordination With Section 265.--25 percent of any qualified real estate loan shall be treated as an obligation described in section 265(a)(2) the interest on which is wholly exempt from the taxes imposed by this subtitle.''. (b) Clerical Amendment.--The table of sections for part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 139K the following new item: ``Sec. 139L. Interest on loans secured by rural or agricultural real property.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. SEC. 70436. REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR CERTAIN DEVICES. (a) Transfer Tax.--Section 5811(a) is amended to read as follows: ``(a) Rate.--There shall be levied, collected, and paid on firearms transferred a tax at the rate of-- ``(1) $200 for each firearm transferred in the case of a machinegun or a destructive device, and ``(2) $0 for any firearm transferred which is not described in paragraph (1).''. (b) Making Tax.--Section 5821(a) is amended to read as follows: ``(a) Rate.--There shall be levied, collected, and paid upon the making of a firearm a tax at the rate of-- ``(1) $200 for each firearm made in the case of a machinegun or a destructive device, and ``(2) $0 for any firearm made which is not described in paragraph (1).''. (c) Conforming Amendment.--Section 4182(a) is amended by adding at the end the following: ``For purposes of the preceding sentence, any firearm described in section 5811(a)(2) shall be deemed to be a firearm on which the tax provided by section 5811 has been paid.'' (d) Effective Date.--The amendments made by this section shall apply to calendar quarters beginning more than 90 days after the date of the enactment of this Act. SEC. 70437. TREATMENT OF CAPITAL GAINS FROM THE SALE OF CERTAIN FARMLAND PROPERTY. (a) In General.--Part IV of subchapter O of chapter 1 is amended by redesignating section 1062 as section 1063 and by inserting after section 1061 the following new section: ``SEC. 1062. GAIN FROM THE SALE OR EXCHANGE OF QUALIFIED FARMLAND PROPERTY TO QUALIFIED FARMERS. ``(a) Election to Pay Tax in Installments.--In the case of gain from the sale or exchange of qualified farmland property to a qualified farmer, at the election of the taxpayer, the portion of the net income tax of such taxpayer for the taxable year of the sale or exchange which is equal to the applicable net tax liability shall be paid in 4 equal installments. ``(b) Rules Relating to Installment Payments.-- ``(1) Date for payment of installments.--If an election is made under subsection (a), the first installment shall be paid on the due date (determined without regard to any extension of time for filing the return) for the return of tax for the taxable year in which the sale or exchange occurs and each succeeding installment shall be paid on the due date (as so determined) for the return of tax for the taxable year following the taxable year with respect to which the preceding installment was made. ``(2) Acceleration of payment.-- ``(A) In general.--If there is an addition to tax for failure to timely pay any installment required under this section, then the unpaid portion of all remaining installments shall be due on the date of such failure. ``(B) Individuals.--In the case of an individual, if the individual dies, then the unpaid portion of all remaining installment shall be paid on the due date for the return of tax for the taxable year in which the taxpayer dies. ``(C) C corporations.--In the case of a taxpayer which is a C corporation, trust, or estate, if there is a liquidation or sale of substantially all the assets of the taxpayer (including in a title 11 or similar case), a cessation of business by the taxpayer (in the case of a C corporation), or any similar circumstance, then the unpaid portion of all remaining installments shall be due on the date of such event (or in the case of a title 11 or similar case, the day before the petition is filed). The preceding sentence shall not apply to the sale of substantially all the assets of a taxpayer to a buyer if such buyer enters into an agreement with the Secretary under which such buyer is liable for the remaining installments due under this subsection in the same manner as if such buyer were the taxpayer. ``(3) Proration of deficiency to installments.--If an election is made under subsection (a) to pay the applicable net tax liability in installments and a deficiency has [[Page S3927]] been assessed with respect to such applicable net tax liability, the deficiency shall be prorated to the installments payable under subsection (a). The part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as, and as a part of, such installment. The part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the Secretary. This section shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax. ``(c) Election.-- ``(1) In general.--Any election under subsection (a) shall be made not later than the due date for the return of tax for the taxable year described in subsection (a). ``(2) Partnerships and s corporations.--In the case of a sale or exchange described in subsection (a) by a partnership or S corporation, the election under subsection (a) shall be made at the partner or shareholder level. The Secretary may prescribe such regulations or other guidance as necessary to carry out the purposes of this paragraph. ``(d) Definitions.--For purposes of this section-- ``(1) Applicable net tax liability.-- ``(A) In general.--The applicable net tax liability with respect to the sale or exchange of any property described in subsection (a) is the excess (if any) of-- ``(i) such taxpayer's net income tax for the taxable year, over ``(ii) such taxpayer's net income tax for such taxable year determined without regard to any gain recognized from the sale or exchange of such property. ``(B) Net income tax.--The term `net income tax' means the regular tax liability reduced by the credits allowed under subparts A, B, and D of part IV of subchapter A. ``(2) Qualified farmland property.-- ``(A) In general.--The term `qualified farmland property' means real property located in the United States-- ``(i) which-- ``(I) has been used by the taxpayer as a farm for farming purposes, or ``(II) leased by the taxpayer to a qualified farmer for farming purposes, during substantially all of the 10-year period ending on the date of the qualified sale or exchange, and ``(ii) which is subject to a covenant or other legally enforceable restriction which prohibits the use of such property other than as a farm for farming purposes for any period before the date that is 10 years after the date of the sale or exchange described in subsection (a). For purposes of clause (i), property which is used or leased by a partnership or S corporation in a manner described in such clause shall be treated as used or leased in such manner by each person who holds a direct or indirect interest in such partnership or S corporation. ``(B) Farm; farming purposes.--The terms `farm' and `farming purposes' have the respective meanings given such terms under section 2032A(e). ``(3) Qualified farmer.--The term `qualified farmer' means any individual who is actively engaged in farming (within the meaning of subsections (b) and (c) of section 1001 of the Food Security Act of 1986 (7 U.S.C. 1308-1(b) and (c))). ``(e) Return Requirement.--A taxpayer making an election under subsection (a) shall include with the return for the taxable year of the sale or exchange described in subsection (a) a copy of the covenant or other legally enforceable restriction described in subsection (d)(2)(A)(ii).''. (b) Clerical Amendment.--The table of sections for part IV of subchapter O of chapter 1 is amended by redesignating the item relating to section 1062 as relating to section 1063 and by inserting after the item relating to section 1061 the following new item: ``Sec. 1062. Gain from the sale or exchange of qualified farmland property to qualified farmers.''. (c) Effective Date.--The amendments made by this section shall apply to sales or exchanges in taxable years beginning after the date of the enactment of this Act. SEC. 70438. EXTENSION OF RULES FOR TREATMENT OF CERTAIN DISASTER-RELATED PERSONAL CASUALTY LOSSES. For purposes of applying section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (division EE of Public Law 116-260), section 301 of such Act shall be applied by substituting the date of the enactment of this section for ``the date of the enactment of this Act'' each place it appears. CHAPTER 5--ENDING GREEN NEW DEAL SPENDING, PROMOTING AMERICA-FIRST ENERGY, AND OTHER REFORMS Subchapter A--Termination of Green New Deal Subsidies SEC. 70501. TERMINATION OF PREVIOUSLY-OWNED CLEAN VEHICLE CREDIT. Section 25E(g) is amended by striking ``December 31, 2032'' and inserting ``September 30, 2025''. SEC. 70502. TERMINATION OF CLEAN VEHICLE CREDIT. (a) In General.--Section 30D(h) is amended by striking ``placed in service after December 31, 2032'' and inserting ``acquired after September 30, 2025''. (b) Conforming Amendments.--Section 30D(e) is amended-- (1) in paragraph (1)(B)-- (A) in clause (iii), by inserting ``and'' after the comma at the end, (B) in clause (iv), by striking ``, and'' and inserting a period, and (C) by striking clause (v), and (2) in paragraph (2)(B)-- (A) in clause (ii), by inserting ``and'' after the comma at the end, (B) in clause (iii), by striking the comma at the end and inserting a period, and (C) by striking clauses (iv) through (vi). SEC. 70503. TERMINATION OF QUALIFIED COMMERCIAL CLEAN VEHICLES CREDIT. Section 45W(g) is amended by striking ``December 31, 2032'' and inserting ``September 30, 2025''. SEC. 70504. TERMINATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT. Section 30C(i) is amended by striking ``December 31, 2032'' and inserting ``June 30, 2026''. SEC. 70505. TERMINATION OF ENERGY EFFICIENT HOME IMPROVEMENT CREDIT. (a) In General.--Section 25C(h) is amended by striking ``placed in service'' and all that follows through ``December 31, 2032'' and inserting ``placed in service after December 31, 2025''. (b) Conforming Amendment.--Section 25C(d)(2)(C) is amended to read as follows: ``(C) Any oil furnace or hot water boiler which-- ``(i) meets or exceeds 2021 Energy Star efficiency criteria, and ``(ii) is rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of an eligible fuel.''. SEC. 70506. TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT. (a) In General.--Section 25D(h) is amended by striking ``to property placed in service after December 31, 2034'' and inserting ``with respect to any expenditures made after December 31, 2025''. (b) Conforming Amendments.--Section 25D(g) is amended-- (1) in paragraph (2), by inserting ``and'' after the comma at the end, (2) in paragraph (3), by striking `` and before January 1, 2033, 30 percent,'' and inserting ``30 percent.'', and (3) by striking paragraphs (4) and (5). SEC. 70507. TERMINATION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION. Section 179D is amended by adding at the end the following new subsection: ``(i) Termination.--This section shall not apply with respect to property the construction of which begins after June 30, 2026.''. SEC. 70508. TERMINATION OF NEW ENERGY EFFICIENT HOME CREDIT. Section 45L(h) is amended by striking ``December 31, 2032'' and inserting ``June 30, 2026''. SEC. 70509. TERMINATION OF COST RECOVERY FOR ENERGY PROPERTY AND QUALIFIED CLEAN ENERGY FACILITIES, PROPERTY, AND TECHNOLOGY. (a) Energy Property.--Section 168(e)(3)(B)(vi), as amended by section 13703 of Public Law 117-169, is amended-- (1) by striking subclause (I), and (2) by redesignating subclauses (II) and (III) as subclauses (I) and (II), respectively. (b) Qualified Clean Energy Facilities, Property, and Technology.--Section 168(e)(3)(B), as amended by section 13703 of Public Law 117-169 and by subsection (a), is amended-- (1) in clause (vi)(II), by adding ``and'' at the end, (2) in clause (vii), by striking ``, and'' and inserting a period, and (3) by striking clause (viii). (c) Effective Dates.-- (1) Energy property.--The amendments made by subsection (a) shall apply to property the construction of which begins after December 31, 2024. (2) Qualified clean energy facilities, property, and technology.--The amendments made by subsection (b) shall apply to property placed in service after the date of enactment of this Act. SEC. 70510. MODIFICATIONS OF ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT. (a) Restrictions Relating to Prohibited Foreign Entities.-- Section 45U(c) is amended by adding at the end the following new paragraph: ``(3) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). ``(B) Other prohibited foreign entities.--No credit shall be determined under subsection (a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign- influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof).''. (b) Prohibition With Respect to Nuclear Power Facilities Using Nuclear Fuel Produced in Covered Nations or by Covered Entities.--Section 45U, as amended by subsection (a) of this section, is amended-- (1) in subsection (b)(1)-- (A) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and (B) by inserting after subparagraph (A) the following new subparagraph: [[Page S3928]] ``(B) which satisfies the requirements described in subsection (c)(4),'', and (2) in subsection (c), by adding at the end the following new paragraph: ``(4) Restrictions relating to use of certain imported nuclear fuel.-- ``(A) In general.--For any taxable year, the requirements described in this paragraph with respect to any nuclear facility are that-- ``(i) with respect to any nuclear fuel used by such facility during such taxable year, such fuel was not-- ``(I) produced in a covered nation or by a covered entity, ``(II) exchanged with, traded for, or substituted for nuclear fuel described in subclause (I), or ``(III) otherwise obtained in lieu of nuclear fuel described in subclause (I) in a manner which is designed to circumvent the purposes of this paragraph, and ``(ii) the taxpayer shall certify to the Secretary (at such time and in such form and manner as the Secretary may prescribe) that any fuel used by such facility during such taxable year complies with the requirements described in clause (i). ``(B) Exception.--The requirements described in subparagraph (A) shall not apply with respect to any nuclear fuel which was acquired by the taxpayer pursuant to a binding written contract in effect before January 1, 2023, and which was not modified in any material respect on or after such date. ``(C) Other definitions.--In this paragraph-- ``(i) Covered entity.--The term `covered entity' means an entity organized under the laws of, or otherwise subject to the jurisdiction of, the government of a covered nation. ``(ii) Covered nation.--The term `covered nation' has the same meaning given such term under section 4872(f) of title 10, United States Code.''. (c) Effective Dates.-- (1) Restrictions relating to prohibited foreign entities.-- The amendments made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Restrictions relating to use of certain imported nuclear fuel.--The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2027. SEC. 70511. TERMINATION OF CLEAN HYDROGEN PRODUCTION CREDIT. Section 45V(c)(3)(C) is amended by striking ``January 1, 2033'' and inserting ``January 1, 2028''. SEC. 70512. TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT. (a) Termination for Wind and Solar Facilities.--Section 45Y(d) is amended-- (1) in paragraph (1), by striking ``The amount of'' and inserting ``Subject to paragraph (4), the amount of'', and (2) by striking paragraph (3) and inserting the following new paragraphs: ``(3) Applicable year.--For purposes of this subsection, the term `applicable year' means calendar year 2032. ``(4) Termination for wind and solar facilities.-- ``(A) In general.--This section shall not apply with respect to any applicable facility placed in service after December 31, 2027. ``(B) Applicable facility.--For purposes of this paragraph, the term `applicable facility' means a qualified facility which-- ``(i) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or ``(ii) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins).''. (b) Restrictions Relating to Prohibited Foreign Entities.-- Section 45Y is amended-- (1) in subsection (b)(1), by adding at the end the following new subparagraph: ``(E) Material assistance from prohibited foreign entities.--The term `qualified facility' shall not include any facility for which construction begins after December 31, 2025 (or, in the case of an applicable facility, as defined in subsection (d)(4)(B), after June 16, 2025), if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).'', and (2) in subsection (g), by adding at the end the following new paragraph: ``(13) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year if the taxpayer is-- ``(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(ii) a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). ``(B) Effective control.--In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such determination relates to a qualified facility described in subsection (b)(1).''. (c) Definitions Relating to Prohibited Foreign Entities.-- Section 7701(a) is amended by adding at the end the following new paragraphs: ``(51) Prohibited foreign entity.-- ``(A) In general.-- ``(i) Definition.--The term `prohibited foreign entity' means a specified foreign entity or a foreign-influenced entity. ``(ii) Determination.-- ``(I) In general.--Subject to subclause (II), for any taxable year, the determination as to whether an entity is a specified foreign entity or foreign-influenced entity shall be made as of the last day of such taxable year. ``(II) Initial taxable year.--For purposes of the first taxable year beginning after the date of enactment of this paragraph, the determination as to whether an entity is a specified foreign entity described in clauses (i) through (iv) of subparagraph (B) shall be made as of the first day of such taxable year. ``(B) Specified foreign entity.--For purposes of this paragraph, the term `specified foreign entity' means-- ``(i) a foreign entity of concern described in subparagraph (A), (B), (D), or (E) of section 9901(8) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 15 U.S.C. 4651), ``(ii) an entity identified as a Chinese military company operating in the United States in accordance with section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 10 U.S.C. 113 note), ``(iii) an entity included on a list required by clause (i), (ii), (iv), or (v) of section 2(d)(2)(B) of Public Law 117-78 (135 Stat. 1527), ``(iv) an entity specified under section 154(b) of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec. 4651), or ``(v) a foreign-controlled entity. ``(C) Foreign-controlled entity.--For purposes of subparagraph (B), the term `foreign-controlled entity' means-- ``(i) the government (including any level of government below the national level) of a covered nation, ``(ii) an agency or instrumentality of a government described in clause (i), ``(iii) a person who is a citizen or national of a covered nation, provided that such person is not an individual who is a citizen, national, or lawful permanent resident of the United States, ``(iv) an entity or a qualified business unit (as defined in section 989(a)) incorporated or organized under the laws of, or having its principal place of business in, a covered nation, or ``(v) an entity (including subsidiary entities) controlled (as determined under subparagraph (G)) by an entity described in clause (i), (ii), (iii), or (iv). ``(D) Foreign-influenced entity.-- ``(i) In general.--For purposes of subparagraph (A), the term `foreign-influenced entity' means an entity-- ``(I) with respect to which, during the taxable year-- ``(aa) a specified foreign entity has the direct authority to appoint a covered officer of such entity, ``(bb) a single specified foreign entity owns at least 25 percent of such entity, ``(cc) one or more specified foreign entities own in the aggregate at least 40 percent of such entity, or ``(dd) at least 15 percent of the debt of such entity has been issued, in the aggregate, to 1 or more specified foreign entities, or ``(II) which, during the previous taxable year, made a payment to a specified foreign entity pursuant to a contract, agreement, or other arrangement which entitles such specified foreign entity (or an entity related to such specified foreign entity) to exercise effective control over-- ``(aa) any qualified facility or energy storage technology of the taxpayer (or any person related to the taxpayer), or ``(bb) with respect to any eligible component produced by the taxpayer (or any person related to the taxpayer)-- ``(AA) the extraction, processing, or recycling of any applicable critical mineral, or ``(BB) the production of an eligible component which is not an applicable critical mineral. ``(ii) Effective control.-- ``(I) In general.-- ``(aa) General rule.--Subject to subclause (II), for purposes of clause (i)(II), the term `effective control' means 1 or more agreements or arrangements similar to those described in subclauses (II) and (III) which provide 1 or more contractual counterparties of a taxpayer with specific authority over key aspects of the production of eligible components, energy generation in a qualified facility, or energy storage which are not included in the measures of control through authority, ownership, or debt held which are described in clause (i)(I). ``(bb) Guidance.--The Secretary shall issue such guidance as is necessary to carry out the purposes of this clause, including the establishment of rules to prevent entities from evading, circumventing, or abusing the application of the restrictions described subparagraph (C) and subclauses (II) and (III) of this clause through a contract, agreement, or other arrangement. ``(II) Application of rules prior to issuance of guidance.--During any period prior to the date that the guidance described in subclause (I)(bb) is issued by the Secretary, for purposes of clause (i)(II), the term `effective control' means the unrestricted [[Page S3929]] contractual right of a contractual counterparty to-- ``(aa) determine the quantity or timing of production of an eligible component produced by the taxpayer, ``(bb) determine the amount or timing of activities related to the production of electricity undertaken at a qualified facility of the taxpayer or the storage of electrical energy in energy storage technology of the taxpayer, ``(cc) determine which entity may purchase or use the output of a production unit of the taxpayer that produces eligible components, ``(dd) determine which entity may purchase or use the output of a qualified facility of the taxpayer, ``(ee) restrict access to data critical to production or storage of energy undertaken at a qualified facility of the taxpayer, or to the site of production or any part of a qualified facility or energy storage technology of the taxpayer, to the personnel or agents of such contractual counterparty, or ``(ff) on an exclusive basis, maintain, repair, or operate any plant or equipment which is necessary to the production by the taxpayer of eligible components or electricity. ``(III) Licensing and other agreements.-- ``(aa) In general.--In addition to subclause (II), for purposes of clause (i)(II), the term `effective control' means, with respect to a licensing agreement for the provision of intellectual property or any other contract, agreement, or other arrangement entered into with a contractual counterparty which is related to such licensing agreement and to a qualified facility, energy storage technology, or the production of an eligible component, any of the following: ``(AA) A contractual right retained by the contractual counterparty to specify or otherwise direct 1 or more sources of components, subcomponents, or applicable critical minerals utilized in a qualified facility, energy storage technology, or in the production of an eligible component. ``(BB) A contractual right retained by the contractual counterparty to direct the operation of any qualified facility, any energy storage technology, or any production unit that produces an eligible component. ``(CC) A contractual right retained by the contractual counterparty to limit the taxpayer's utilization of intellectual property related to the operation of a qualified facility or energy storage technology, or in the production of an eligible component. ``(DD) A contractual right retained by the contractual counterparty to receive royalties under the licensing agreement or any similar agreement (or payments under any related agreement) beyond the 10th year of the agreement (including modifications or extensions thereof). ``(EE) A contractual right retained by the contractual counterparty to direct or otherwise require the taxpayer to enter into an agreement for the provision of services for a duration longer than 2 years (including any modifications or extensions thereof). ``(FF) Such contract, agreement, or other arrangement does not provide the licensee with all the technical data, information, and know-how necessary to enable the licensee to produce the eligible component or components subject to the contract, agreement, or other arrangement without further involvement from the contractual counterparty or a specified foreign entity. ``(GG) Such contract, agreement, or other arrangement was entered into (or modified) on or after June 16, 2025. ``(bb) Exception.-- ``(AA) In general.--Item (aa) shall not apply in the case of a bona fide purchase or sale of intellectual property. ``(BB) Bona fide purchase or sale.--For purposes of item (aa), any purchase or sale of intellectual property where the agreement provides that ownership of the intellectual property reverts to the contractual counterparty after a period of time shall not be considered a bona-fide purchase or sale. ``(IV) Persons related to the taxpayer.--For purposes of subclauses (I), (II), and (III), the term `taxpayer' shall include any person related to the taxpayer. ``(V) Contractual counterparty.--For purposes of this clause, the term `contractual counterparty' means an entity with which the taxpayer has entered into a contract, agreement, or other arrangement. ``(iii) Guidance.--Not later than December 31, 2026, the Secretary shall issue such guidance as is necessary to carry out the purposes of this subparagraph, including establishment of rules to prevent entities from evading, circumventing, or abusing the application of the restrictions against impermissible technology licensing arrangements with specified foreign entities, such as through temporary transfers of intellectual property, retention by a specified foreign entity of a reversionary interest in transferred intellectual property, or otherwise. ``(E) Publicly traded entities.-- ``(i) In general.-- ``(I) Nonapplication of certain foreign-controlled entity rules.--Subparagraph (C)(v) shall not apply in the case of any entity the securities of which are regularly traded on-- ``(aa) a national securities exchange which is registered with the Securities and Exchange Commission, ``(bb) the national market system established pursuant to section 11A of the Securities and Exchange Act of 1934, or ``(cc) any other exchange or other market which the Secretary has determined in guidance issued under section 1296(e)(1)(A)(ii) has rules adequate to carry out the purposes of part VI of subchapter P of chapter 1 of subtitle A. ``(II) Nonapplication of certain foreign-influenced entity rules.--Subparagraph (D)(i)(I) shall not apply in the case of any entity-- ``(aa) the securities of which are regularly traded in a manner described in subclause (I), or ``(bb) for which not less than 80 percent of the equity securities of such entity are owned directly or indirectly by an entity which is described in item (aa). ``(III) Exclusion of exchanges or markets in covered nations.--Subclause (I)(cc) shall not apply with respect to any exchange or market which-- ``(aa) is incorporated or organized under the laws of a covered nation, or ``(bb) has its principal place of business in a covered nation. ``(ii) Additional foreign-controlled entity requirements for publicly traded companies.--In the case of an entity described in clause (i)(I), such entity shall be deemed to be a foreign-controlled entity under subparagraph (C)(v) if such entity is controlled (as determined under subparagraph (G)) by-- ``(I) 1 or more specified foreign entities (as determined without regard to subparagraph (B)(v)) that are each required to report their beneficial ownership pursuant to a rule described in clause (iii)(I)(bb), or ``(II) 1 or more foreign-controlled entities (as determined without regard to subparagraph (C)(v)) that are each required to report their beneficial ownership pursuant to a rule described in such clause. ``(iii) Additional foreign-influenced entity requirements for publicly traded companies.--In the case of an entity described in clause (i)(II), such entity shall be deemed to be a foreign-influenced entity under subparagraph (D)(i)(I) if-- ``(I) during the taxable year-- ``(aa) a specified foreign entity has the authority to appoint a covered officer of such entity, ``(bb) a single specified foreign entity required to report its beneficial ownership under Rule 13d-3 of the Securities and Exchange Act of 1934 (or, in the case of an exchange or market described in clause (i)(I)(cc), an equivalent rule) owns not less than 25 percent of such entity, or ``(cc) 1 or more specified foreign entities that are each required to report their beneficial ownership under Rule 13d- 3 of the Securities and Exchange Act of 1934 own, in the aggregate, not less than 40 percent of such entity, or ``(II) such entity has issued debt, as part of an original issuance, in excess of 15 percent of its publicly-traded debt to 1 or more specified foreign entities. ``(F) Covered officer.--For purposes of this paragraph, the term `covered officer' means, with respect to an entity-- ``(i) a member of the board of directors, board of supervisors, or equivalent governing body, ``(ii) an executive-level officer, including the president, chief executive officer, chief operating officer, chief financial officer, general counsel, or senior vice president, or ``(iii) an individual having powers or responsibilities similar to those of officers or members described in clause (i) or (ii). ``(G) Determination of control.--For purposes of subparagraph (C)(v), the term `control' means-- ``(i) in the case of a corporation, ownership (by vote or value) of more than 50 percent of the stock in such corporation, ``(ii) in the case of a partnership, ownership of more than 50 percent of the profits interests or capital interests in such partnership, or ``(iii) in any other case, ownership of more than 50 percent of the beneficial interests in the entity. ``(H) Determination of ownership.--For purposes of this section, section 318(a)(2) shall apply for purposes of determining ownership of stock in a corporation. Similar principles shall apply for purposes of determining ownership of interests in any other entity. ``(I) Other definitions.--For purposes of this paragraph-- ``(i) Applicable critical mineral.--The term `applicable critical mineral' has the same meaning given such term under section 45X(c)(6). ``(ii) Covered nation.--The term `covered nation' has the same meaning given such term under section 4872(f)(2) of title 10, United States Code. ``(iii) Eligible component.--The term `eligible component' has the same meaning given such term under section 45X(c)(1). ``(iv) Energy storage technology.--The term `energy storage technology' has the same meaning given such term under section 48E(c)(2). ``(v) Qualified facility.--The term `qualified facility' means-- ``(I) a qualified facility, as defined in section 45Y(b)(1), and ``(II) a qualified facility, as defined in section 48E(b)(3). ``(vi) Related.--The term `related' shall have the same meaning given such term under sections 267(b) and 707(b). ``(J) Beginning of construction.--For purposes of applying any provision under this paragraph, the beginning of construction with respect to any property shall be determined pursuant to rules similar to the rules under Internal Revenue Service Notice 2013- [[Page S3930]] 29 and Internal Revenue Service Notice 2018-59 (as well as any subsequently issued guidance clarifying, modifying, or updating either such Notice), as in effect on January 1, 2025. ``(K) Regulations and guidance.--The Secretary may prescribe such regulations and guidance as may be necessary or appropriate to carry out the provisions of this paragraph, including rules to prevent the circumvention of any rules or restrictions with respect to prohibited foreign entities. ``(52) Material assistance from a prohibited foreign entity.-- ``(A) In general.--The term `material assistance from a prohibited foreign entity' means-- ``(i) with respect to any qualified facility or energy storage technology, a material assistance cost ratio which is less than the threshold percentage applicable under subparagraph (B), or ``(ii) with respect to any facility which produces eligible components, a material assistance cost ratio which is less than the threshold percentage applicable under subparagraph (C). ``(B) Threshold percentage for qualified facilities and energy storage technology.--For purposes of subparagraph (A)(i), the threshold percentage shall be-- ``(i) in the case of a qualified facility the construction of which begins-- ``(I) after June 16, 2025, and before January 1, 2026, 37.5 percent, ``(II) during calendar year 2026, 40 percent, ``(III) during calendar year 2027, 45 percent, ``(IV) during calendar year 2028, 50 percent, ``(V) during calendar year 2029, 55 percent, and ``(VI) after December 31, 2029, 60 percent, and ``(ii) in the case of energy storage technology the construction of which begins-- ``(I) during calendar year 2026, 55 percent, ``(II) during calendar year 2027, 60 percent, ``(III) during calendar year 2028, 65 percent, ``(IV) during calendar year 2029, 70 percent, and ``(V) after December 31, 2029, 75 percent. ``(C) Threshold percentage for eligible components.-- ``(i) In general.--For purposes of subparagraph (A)(ii), the threshold percentage shall be-- ``(I) in the case of any solar energy component (as such term is defined in section 45X(c)(3)(A)) which is sold-- ``(aa) during calendar year 2026, 50 percent, ``(bb) during calendar year 2027, 60 percent, ``(cc) during calendar year 2028, 70 percent, ``(dd) during calendar year 2029, 80 percent, and ``(ee) after December 31, 2029, 85 percent, ``(II) in the case of any wind energy component (as such term is defined in section 45X(c)(4)(A)) which is sold-- ``(aa) during calendar year 2026, 85 percent, and ``(bb) during calendar year 2027, 90 percent, ``(III) in the case of any inverter described in subparagraphs (B) through (G) of section 45X(c)(2) which is sold-- ``(aa) during calendar year 2026, 50 percent, ``(bb) during calendar year 2027, 55 percent, ``(cc) during calendar year 2028, 60 percent, ``(dd) during calendar year 2029, 65 percent, and ``(ee) after December 31, 2029, 70 percent, ``(IV) in the case of any qualifying battery component (as such term is defined in section 45X(c)(5)(A)) which is sold-- ``(aa) during calendar year 2026, 60 percent, ``(bb) during calendar year 2027, 65 percent, ``(cc) during calendar year 2028, 70 percent, ``(dd) during calendar year 2029, 80 percent, and ``(ee) after December 31, 2029, 85 percent, and ``(V) subject to clause (ii), in the case of any applicable critical mineral (as such term is defined in section 45X(c)(6)) which is sold-- ``(aa) after December 31, 2025, and before January 1, 2030, 0 percent, ``(bb) during calendar year 2030, 25 percent, ``(cc) during calendar year 2031, 30 percent, ``(dd) during calendar year 2032, 40 percent, and ``(ee) after December 31, 2032, 50 percent. ``(ii) Adjusted threshold percentage for applicable critical minerals.--Not later than December 31, 2027, the Secretary shall issue threshold percentages for each of the applicable critical minerals described in section 45X(c)(6)), which shall-- ``(I) apply in lieu of the threshold percentage determined under clause (i)(V) for each calendar year, and ``(II) equal or exceed the threshold percentage which would otherwise apply with respect to such applicable critical mineral under such clause for such calendar year, taking into account-- ``(aa) domestic geographic availability, ``(bb) supply chain constraints, ``(cc) domestic processing capacity needs, and ``(dd) national security concerns. ``(D) Material assistance cost ratio.-- ``(i) Qualified facilities and energy storage technology.-- For purposes of subparagraph (A)(i), the term `material assistance cost ratio' means the amount (expressed as a percentage) equal to the quotient of-- ``(I) an amount equal to-- ``(aa) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are incorporated into the qualified facility or energy storage technology upon completion of construction, minus ``(bb) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are-- ``(AA) incorporated into the qualified facility or energy storage technology upon completion of construction, and ``(BB) mined, produced, or manufactured by a prohibited foreign entity, divided by ``(II) the amount described in subclause (I)(aa). ``(ii) Eligible components.--For purposes of subparagraph (A)(ii), the term `material assistance cost ratio' means the amount (expressed as a percentage) equal to the quotient of-- ``(I) an amount equal to-- ``(aa) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer for production of such eligible component, minus ``(bb) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer for production of such eligible component that are attributable to a prohibited foreign entity, divided by ``(II) the amount described in subclause (I)(aa). ``(iii) Safe harbor tables.-- ``(I) In general.--Not later than December 31, 2026, the Secretary shall issue safe harbor tables (and such other guidance as deemed necessary) to-- ``(aa) identify the percentage of total direct costs of any manufactured product which is attributable to a prohibited foreign entity, ``(bb) identify the percentage of total direct material costs of any eligible component which is attributable to a prohibited foreign entity, and ``(cc) provide all rules necessary to determine the amount of a taxpayer's material assistance from a prohibited foreign entity within the meaning of this paragraph. ``(II) Safe harbors prior to issuance.--For purposes of this paragraph, prior to the date on which the Secretary issues the safe harbor tables described in subclause (I), and for construction of a qualified facility or energy storage technology which begins on or before the date which is 60 days after the date of issuance of such tables, a taxpayer may-- ``(aa) use the tables included in Internal Revenue Service Notice 2025-08 to establish the percentage of the total direct costs of any listed eligible component and any manufactured product, and ``(bb) rely on a certification by the supplier of the manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component-- ``(AA) of the total direct costs or the total direct material costs, as applicable, of such product or component that was not produced or manufactured by a prohibited foreign entity, or ``(BB) that such product or component was not produced or manufactured by a prohibited foreign entity. ``(III) Exception.--Notwithstanding subclauses (I) and (II)-- ``(aa) if the taxpayer knows (or has reason to know) that a manufactured product or eligible component was produced or manufactured by a prohibited foreign entity, the taxpayer shall treat all direct costs with respect to such manufactured product, or all direct material costs with respect to such eligible component, as attributable to a prohibited foreign entity, and ``(bb) if the taxpayer knows (or has reason to know) that the certification referred to in subclause (II)(bb) pertaining to a manufactured product or eligible component is inaccurate, the taxpayer may not rely on such certification. ``(IV) Certification requirement.--In a manner consistent with Treasury Regulation section 1.45X-4(c)(4)(i) (as in effect on the date of enactment of this paragraph), the certification referred to in subclause (II)(bb) shall-- ``(aa) include-- ``(AA) the supplier's employer identification number, or ``(BB) any such similar identification number issued by a foreign government, ``(bb) be signed under penalties of perjury, ``(cc) be retained by the supplier and the taxpayer for a period of not less than 6 years and shall be provided to the Secretary upon request, and ``(dd) be from the supplier from which the taxpayer purchased any manufactured product, eligible component, or constituent elements, materials, or subcomponents of an eligible component, stating either-- ``(AA) that such property was not produced or manufactured by a prohibited foreign entity and that the supplier is not aware that any prior supplier in the chain of production of that property is a prohibited foreign entity, ``(BB) for purposes of section 45X, the total direct material costs for each component, constituent element, material, or subcomponent that were not produced or manufactured by a prohibited foreign entity, or ``(CC) for purposes of section 45Y or section 48E, the total direct costs attributable to all manufactured products that were not produced or manufactured by a prohibited foreign entity. [[Page S3931]] ``(iv) Existing contract.--Upon the election of the taxpayer (in such form and manner as the Secretary shall designate), in the case of any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component which is-- ``(I) acquired by the taxpayer, or manufactured or assembled by or for the taxpayer, pursuant to a binding written contract which was entered into prior to June 16, 2025, and ``(II)(aa) placed into service before January 1, 2030 (or, in the case of an applicable facility, as defined in section 45Y(d)(4)(B), before January 1, 2028), or ``(bb) in the case of a constituent element, material, or subcomponent, used in a product sold before January 1, 2030, the cost to the taxpayer with respect to such product, component, element, material, or subcomponent shall not be included for purposes of determining the material assistance cost ratio under this subparagraph. ``(v) Anti-circumvention rules.--The Secretary shall prescribe such regulations and guidance as may be necessary or appropriate to prevent circumvention of the rules under this subparagraph, including prevention of-- ``(I) any abuse of the exception provided under clause (iv) through the stockpiling of any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component during any period prior to the application of the requirements under this paragraph, or ``(II) any evasion with respect to the requirements of this subparagraph where the facts and circumstances demonstrate that the beginning of construction of a qualified facility or energy storage technology has not in fact occurred. ``(E) Other definitions.--For purposes of this paragraph-- ``(i) Eligible component.--The term `eligible component' means-- ``(I) any property described in section 45X(c)(1), or ``(II) any component which is identified by the Secretary pursuant to regulations or guidance issued under subparagraph (G). ``(ii) Energy storage technology.--The term `energy storage technology' has the same meaning given such term under section 48E(c)(2). ``(iii) Manufactured product.--The term `manufactured product' means-- ``(I) a manufactured product which is a component of a qualified facility, as described in section 45Y(g)(11)(B) and any guidance issued thereunder, or ``(II) any product which is identified by the Secretary pursuant to regulations or guidance issued under subparagraph (G). ``(iv) Qualified facility.--The term `qualified facility' means-- ``(I) a qualified facility, as defined in section 45Y(b)(1), ``(II) a qualified facility, as defined in section 48E(b)(3), and ``(III) any qualified interconnection property (as defined in section 48E(b)(4)) which is part of the qualified investment with respect to a qualified facility (as described in section 48E(b)(1)). ``(F) Beginning of construction.--Rules similar to the rules under paragraph (51)(J) shall apply for purposes of this paragraph. ``(G) Regulations and guidance.--The Secretary may prescribe such regulations and guidance as may be necessary or appropriate to carry out the provisions of this paragraph, including-- ``(i) identification of components or products for purposes of clauses (i) and (iii) of subparagraph (E), and ``(ii) for purposes of subparagraph (A)(ii), rules to address facilities which produce more than one eligible component.''. (d) Denial of Credit for Certain Wind and Solar Leasing Arrangements.--Section 45Y is amended by adding at the end the following new subsection: ``(h) Denial of Credit for Wind and Solar Leasing Arrangements.--No credit shall be determined under this section with respect to any production of electricity during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.''. (e) Emissions Rates Tables.--Section 45Y(b)(2)(C) is amended by adding at the end the following new clause: ``(iii) Existing studies.--For purposes of clause (i), in determining greenhouse gas emissions rates for types or categories of facilities for the purpose of determining whether a facility satisfies the requirements under paragraph (1), the Secretary shall consider studies published on or before the date of enactment of this clause which demonstrate a net lifecycle greenhouse gas emissions rate which is not greater than zero using widely accepted lifecycle assessment concepts, such as concepts described in standards developed by the International Organization for Standardization.''. (f) Nuclear Energy Communities.-- (1) In general.--Section 45(b)(11) is amended-- (A) in subparagraph (B)-- (i) in clause (ii)(II), by striking ``or'' at the end, (ii) in clause (iii)(II), by striking the period at the end and inserting ``, or'', and (iii) by adding at the end the following new clause: ``(iv) for purposes of any qualified facility which is an advanced nuclear facility, a metropolitan statistical area which has (or, at any time during the period beginning after December 31, 2009, had) 0.17 percent or greater direct employment related to the advancement of nuclear power, including employment related to-- ``(I) an advanced nuclear facility, ``(II) advanced nuclear power research and development, ``(III) nuclear fuel cycle research, development, or production, including mining, enrichment, manufacture, storage, disposal, or recycling of nuclear fuel, and ``(IV) the manufacturing or assembly of components used in an advanced nuclear facility.'', and (B) by adding at the end the following new subparagraph: ``(C) Advanced nuclear facilities.-- ``(i) In general.--Subject to clause (ii), for purposes of subparagraph (B)(iv), the term `advanced nuclear facility' means any nuclear facility the reactor design for which is approved in the manner described in section 45J(d)(2). ``(ii) Special rule.--For purposes of clause (i), a facility shall be deemed to have a reactor design which is approved in the manner described in section 45J(d)(2) if the Nuclear Regulatory Commission has authorized construction and issued a site-specific construction permit or combined license with respect to such facility.''. (2) Nonapplication for clean electricity investment credit.--Section 48E(a)(3)(A)(i) is amended by inserting ``, as applied without regard to clause (iv) thereof'' after ``section 45(b)(11)(B)''. (g) Conforming Amendments.-- (1) Paragraph (1) of section 48D(c) is amended to read as follows: ``(1) is not a specified foreign entity (as defined in section 7701(a)(51)(B)), and''. (2) Section 45Y(b)(1) is amended-- (A) by redesignating subparagraph (D) as subparagraph (E), and (B) by inserting after subparagraph (C) the following new subparagraph: ``(D) Determination of capacity.--For purposes of subparagraph (C), additions of capacity of a facility shall be determined in any reasonable manner, including based on-- ``(i) determinations by, or reports to, the Federal Energy Regulatory Commission (including interconnection agreements), the Nuclear Regulatory Commission, or any similar entity, reflecting additions of capacity, ``(ii) determinations or reports reflecting additions of capacity made by an independent professional engineer, ``(iii) reports to, or issued by, regional transmission organizations or independent system operators reflecting additions of capacity, or ``(iv) any other method or manner provided by the Secretary.''. (h) Prohibition on Transfer of Credits to Specified Foreign Entities.--Section 6418(g) is amended by adding at the end the following new paragraph: ``(5) Prohibition on transfer of credits to specified foreign entities.--With respect to any eligible credit described in clause (iii), (iv), (vi), (vii), (viii), or (xi) of subsection (f)(1)(A), an eligible taxpayer may not elect to transfer any portion of such credit to a taxpayer that is a specified foreign entity (as defined in section 7701(a)(51)(B)).''. (i) Extension of Period of Limitations for Errors Relating to Determining of Material Assistance From a Prohibited Foreign Entity.--Section 6501 is amended-- (1) by redesignating subsection (o) as subsection (p), and (2) by inserting after subsection (n) the following new subsection: ``(o) Material Assistance From a Prohibited Foreign Entity.--In the case of a deficiency attributable to an error with respect to the determination under section 7701(a)(52) for any taxable year, such deficiency may be assessed at any time within 6 years after the return for such year was filed.''. (j) Imposition of Accuracy-related Penalties.-- (1) In general.--Section 6662 is amended by adding at the end the following new subsection: ``(m) Substantial Understatement of Income Tax Due to Disallowance of Applicable Energy Credits.-- ``(1) In general.--In the case of a taxpayer for which there is a disallowance of an applicable energy credit for any taxable year, for purposes of determining whether there is a substantial understatement of income tax for such taxable year, subsection (d)(1) shall be applied-- ``(A) in subparagraphs (A) and (B), by substituting `1 percent' for `10 percent' each place it appears, and ``(B) without regard to subparagraph (C). ``(2) Disallowance of an applicable energy credit.--For purposes of this subsection, the term `disallowance of an applicable energy credit' means the disallowance of a credit under section 45X, 45Y, or 48E by reason of overstating the material assistance cost ratio (as determined under section 7701(a)(52)) with respect to any qualified facility, energy storage technology, or facility which produces eligible components.''. (2) Conforming amendment.--Section 6417(d)(6) is amended by adding at the end the following new subparagraph: [[Page S3932]] ``(D) Disallowance of an applicable energy credit.--In the case of an applicable entity which made an election under subsection (a) with respect to an applicable credit for which there is a disallowance described in section 6662(m)(2), subparagraph (A) shall apply with respect to any excessive payment resulting from such disallowance.''. (k) Penalty for Substantial Misstatements on Certification Provided by Supplier.-- (1) In general.--Part I of subchapter B of chapter 68 is amended by inserting after section 6695A the following new section: ``SEC. 6695B. PENALTY FOR SUBSTANTIAL MISSTATEMENTS ON CERTIFICATION PROVIDED BY SUPPLIER. ``(a) Imposition of Penalty.--If-- ``(1) a person-- ``(A) provides a certification described in clause (iii)(II)(bb) of section 7701(a)(52)(D) with respect to any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component, and ``(B) knows, or reasonably should have known, that the certification would be used in connection with a determination under such section, ``(2) such certification is inaccurate or false with respect to-- ``(A) whether such property was produced or manufactured by a prohibited foreign entity, or ``(B) the total direct costs or total direct material costs of such property that was not produced or manufactured by a prohibited foreign entity that were provided on such certification, and ``(3) the inaccuracy or falsity described in paragraph (2) resulted in the disallowance of an applicable energy credit (as defined in section 6662(m)(2)) and an understatement of income tax (within the meaning of section 6662(d)(2)) for the taxable year in an amount which exceeds the lesser of-- ``(A) 5 percent of the tax required to be shown on the return for the taxable year, or ``(B) $100,000, then such person shall pay a penalty in the amount determined under subsection (b). ``(b) Amount of Penalty.--The amount of the penalty imposed under subsection (a) on any person with respect to a certification shall be equal to the greater of-- ``(1) 10 percent of the amount of the underpayment (as defined in section 6664(a)) solely attributable to the inaccuracy or falsity described in subsection (a)(2), or ``(2) $5,000. ``(c) Exception.--No penalty shall be imposed under subsection (a) if the person establishes to the satisfaction of the Secretary that any inaccuracy or falsity described in subsection (a)(2) is due to a reasonable cause and not willful neglect. ``(d) Definitions.--Any term used in this section which is also used in section 7701(a)(52) shall have the meaning given such term in such section.''. (2) Clerical amendments.-- (A) Section 6696 is amended-- (i) in the heading, by striking ``and 6695a'' and inserting ``6695a, and 6695b'', (ii) in subsections (a), (b), and (e), by striking ``and 6695A'' each place it appears and inserting ``6695A, and 6695B'', (iii) in subsection (c), by striking ``or 6695A'' and inserting ``6695A, or 6695B'', and (iv) in subsection (d)-- (I) in paragraph (1), by inserting ``(or, in the case of any penalty under section 6695B, 6 years)'' after ``assessed within 3 years'', and (II) in paragraph (2), by inserting ``(or, in the case of any claim for refund of an overpayment of any penalty assessed under section 6695B, 6 years)'' after ``filed within 3 years''. (B) The table of sections for part I of subchapter B of chapter 68 is amended by inserting after item relating to section 6695A the following new item: ``Sec. 6695B. Penalty for substantial misstatements on certification provided by supplier.''. (l) Excise Tax on Facilities That Receive Material Assistance From Prohibited Foreign Entities.-- (1) In general.--Subtitle D is amended by adding at the end the following new chapter: ``CHAPTER 50B--MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTITIES ``Sec. 5000E-1. Imposition of tax. ``SEC. 5000E-1. IMPOSITION OF TAX. ``(a) In General.--In the case of an applicable facility for which there is a material assistance cost ratio violation, a tax is hereby imposed for the taxable year in which such facility is placed in service in the amount determined under subsection (d) with respect to such facility. ``(b) Applicable Facility.--For purposes of this section, the term `applicable facility' means a facility owned by the taxpayer-- ``(1) which-- ``(A) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or ``(B) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), and ``(2) either-- ``(A) the construction of which begins after the date of the enactment of this section and before January 1, 2028, and which is placed in service after December 31, 2027, or ``(B) the construction of which begins after December 31, 2027, and before January 1, 2036. ``(c) Material Assistance Cost Ratio Violation.--For purposes of this section, the term `material assistance cost ratio violation' means, with respect to an applicable facility, that the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)). ``(d) Amount of Tax.-- ``(1) In general.--The amount determined under this subsection with respect to any applicable facility shall be equal to the applicable percentage of the amount equal to the product of-- ``(A) the amount (expressed in percentage points) by which the threshold percentage (as determined under section 7701(a)(52)(B)(i)) exceeds the material assistance cost ratio (as determined under section 7701(a)(52)(D)(i)), multiplied by ``(B) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are incorporated into the applicable facility upon completion of construction (as determined under section 7701(a)(52)(D)(i)(I)). ``(2) Applicable percentage.--For purposes of paragraph (1), the applicable percentage shall be-- ``(A) in the case of a facility described in subparagraph (A) of subsection (b)(1), 30 percent, or ``(B) in the case of a facility described in subparagraph (B) of such subsection, 50 percent. ``(e) Rule of Application.--For purposes of this section, with respect to the application of section 7701(a)(52) or any provision thereof, such section shall be applied by substituting `applicable facility' for `qualified facility' each place it appears.''. (2) Clerical amendment.--The table of chapters for subtitle D is amended by inserting after the item relating to chapter 50A the following new item: ``Chapter 50B--Material Assistance From Prohibited Foreign Entities''. (m) Effective Dates.-- (1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Material assistance from prohibited foreign entities.-- The amendments made by subsection (b)(1) shall apply to facilities for which construction begins after June 16, 2025. (3) Excise tax on facilities that receive material assistance from prohibited foreign entities.--The amendments made by subsection (l) shall apply to facilities for which construction begins after June 16, 2025. (4) Penalty for substantial misstatements on certification provided by supplier.--The amendments made by subsection (k) shall apply to certifications provided after December 31, 2025. (5) Termination for wind and solar facilities.--The amendments made by subsection (a) shall apply to facilities the construction of which begins after the date of enactment of this Act. SEC. 70513. TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT. (a) Termination for Wind and Solar Facilities.--Section 48E(e) is amended-- (1) in paragraph (1), by striking ``The amount of'' and inserting ``Subject to paragraph (4), the amount of'', and (2) by adding at the end the following new paragraph: ``(4) Termination for wind and solar facilities.-- ``(A) In general.--This section shall not apply to any qualified property placed in service by the taxpayer after December 31, 2027, which is part of an applicable facility. ``(B) Applicable facility.--For purposes of this paragraph, the term `applicable facility' means a qualified facility which-- ``(i) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or ``(ii) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins). ``(C) Exception.--This paragraph shall not apply with respect to any energy storage technology which is placed in service at any applicable facility.''. (b) Restrictions Relating to Prohibited Foreign Entities.-- (1) In general.--Section 48E is amended-- (A) in subsection (b)-- (i) by redesignating paragraph (6) as paragraph (7), and (ii) by inserting after paragraph (5) the following new paragraph: ``(6) Material assistance from prohibited foreign entities.-- ``(A) In general.--Subject to subparagraph (B), the terms `qualified facility' and `qualified interconnection property' shall not include any facility or property the construction, reconstruction, or erection of which begins after December 31, 2025, if the construction, reconstruction, or erection of such facility or property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)). [[Page S3933]] ``(B) Applicable facilities.--The term `qualified facility' shall not include any applicable facility (as defined in subsection (e)(4)(B)) for which construction begins after June 16, 2025, if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).'', and (B) in subsection (c), by adding at the end the following new paragraph: ``(3) Material assistance from prohibited foreign entities.--The term `energy storage technology' shall not include any property the construction of which begins after December 31, 2025, if the construction of such property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).''. (2) Additional restrictions.--Section 48E(d) is amended by adding at the end the following new paragraph: ``(6) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year if the taxpayer is-- ``(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(ii) a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). ``(B) Effective control.--In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such determination relates to a qualified facility described in subsection (b)(3) or energy storage technology described in subsection (c)(2).''. (3) Recapture.-- (A) In general.--Section 50(a) is amended-- (i) by redesignating paragraphs (4) through (6) as paragraphs (5) through (7), respectively, (ii) by inserting after paragraph (3) the following new paragraph: ``(4) Payments to prohibited foreign entities.-- ``(A) In general.--If there is an applicable payment made by a specified taxpayer before the close of the 10-year period beginning on the date such taxpayer placed in service investment credit property which is eligible for the clean electricity investment credit under section 48E(a), then the tax under this chapter for the taxable year in which such applicable payment occurs shall be increased by 100 percent of the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero any credit determined under section 46 which is attributable to the clean electricity investment credit under section 48E(a) with respect to such property. ``(B) Applicable payment.--For purposes of this paragraph, the term `applicable payment' means, with respect to any taxable year, a payment or payments described in section 7701(a)(51)(D)(i)(II). ``(C) Specified taxpayer.--For purposes of this paragraph, the term `specified taxpayer' means any taxpayer who has been allowed a credit under section 48E(a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph.'', (iii) in paragraph (5), as redesignated by clause (i), by striking ``or any applicable transaction to which paragraph (3)(A) applies,'' and inserting ``any applicable transaction to which paragraph (3)(A) applies, or any applicable payment to which paragraph (4)(A) applies,'', and (iv) in paragraph (7), as redesignated by clause (i), by striking ``or (3)'' and inserting ``(3), or (4)''. (B) Conforming amendments.-- (i) Section 1371(d)(1) is amended by striking ``section 50(a)(5)'' and inserting ``section 50(a)(6)''. (ii) Section 6418(g)(3) is amended by striking ``subsection (a)(5)'' each place it appears and inserting ``subsection (a)(7)''. (c) Denial of Credit for Expenditures for Certain Wind and Solar Leasing Arrangements.-- (1) In general.--Section 48E is amended-- (A) by redesignating subsection (i) as subsection (j), and (B) by inserting after subsection (h) the following new subsection: ``(i) Denial of Credit for Expenditures for Wind and Solar Leasing Arrangements.--No credit shall be determined under this section for any qualified investment during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.''. (2) Conforming rules.--Section 50 is amended by adding at the end the following new subsection: ``(e) Rules for Geothermal Heat Pumps.--For purposes of this section and section 168, the ownership of energy property described in section 48(a)(3)(A)(vii) shall be determined without regard to whether such property is readily usable by a person other than the lessee or service recipient.''. (d) Domestic Content Rules.--Subparagraph (B) of section 48E(a)(3) is amended to read as follows: ``(B) Domestic content.--Rules similar to the rules of section 48(a)(12) shall apply, except that, for purposes of subparagraph (B) of such section and the application of rules similar to the rules of section 45(b)(9)(B), the adjusted percentage (as determined under section 45(b)(9)(C)) shall be determined as follows: ``(i) In the case of any qualified investment with respect to any qualified facility the construction of which begins before June 16, 2025, 40 percent (or, in the case of a qualified facility which is an offshore wind facility, 20 percent). ``(ii) In the case of any qualified investment with respect to any qualified facility the construction of which begins on or after June 16, 2025, and before January 1, 2026, 45 percent (or, in the case of a qualified facility which is an offshore wind facility, 27.5 percent). ``(iii) In the case of any qualified investment with respect to any qualified facility the construction of which begins during calendar year 2026, 50 percent (or, in the case of a qualified facility which is an offshore wind facility, 35 percent). ``(iv) In the case of any qualified investment with respect to any qualified facility the construction of which begins after December 31, 2026, 55 percent.''. (e) Elimination of Energy Credit for Certain Energy Property.--Section 48(a)(2) is amended-- (1) in subparagraph (A)(ii), by striking ``2 percent'' and inserting ``0 percent'', and (2) by adding at the end the following new subparagraph: ``(C) Nonapplication of increases to energy percentage.-- For purposes of energy property described in subparagraph (A)(ii), the energy percentage applicable to such property pursuant to such subparagraph shall not be increased or otherwise adjusted by any provision of this section.''. (f) Application of Clean Electricity Investment Credit to Qualified Fuel Cell Property.--Section 48E, as amended by subsection (c), is amended-- (1) by redesignating subsection (j) as subsection (k), and (2) by inserting after subsection (i) the following new subsection: ``(j) Application to Qualified Fuel Cell Property.--For purposes of this section, in the case of any qualified fuel cell property (as defined in section 48(c)(1), as applied without regard to subparagraph (E) thereof)-- ``(1) subsection (b)(3)(A) shall be applied without regard to clause (iii) thereof, ``(2) for purposes of subsection (a)(1), the applicable percentage shall be 30 percent and such percentage shall not be increased or otherwise adjusted by any other provision of this section, and ``(3) subsection (g) shall not apply.''. (g) Effective Dates.-- (1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025. (3) Elimination of energy credit for certain energy property.--The amendments made by subsection (e) shall apply to property the construction of which begins on or after June 16, 2025. (4) Application of clean electricity investment credit to qualified fuel cell property.--The amendments made by subsection (f) shall apply to property the construction of which begins after December 31, 2025. (5) Termination for wind and solar facilities.--The amendments made by subsection (a) shall apply to facilities the construction of which begins after the date of enactment of this Act. SEC. 70514. PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING PRODUCTION CREDIT. (a) Modification of Provision Relating to Sale of Integrated Components.--Paragraph (4) of section 45X(d) is amended to read as follows: ``(4) Sale of integrated components.-- ``(A) In general.--For purposes of this section, a person shall be treated as having sold an eligible component to an unrelated person if-- ``(i) such component (referred to in this paragraph as the `primary component') is integrated, incorporated, or assembled into another eligible component (referred to in this paragraph as the `secondary component') produced within the same manufacturing facility as the primary component, and ``(ii) the secondary component is sold to an unrelated person. ``(B) Additional requirements.--Subparagraph (A) shall only apply with respect to a secondary component for which not less than 65 percent of the total direct material costs which are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer to produce such secondary component are attributable to primary components which are mined, produced, or manufactured in the United States.''. (b) Phase Out and Termination.--Section 45X(b)(3) is amended-- (1) in the heading, by inserting ``and termination'' after ``Phase out'', (2) in subparagraph (A), in the matter preceding clause (i), by striking ``subparagraph (C)'' and inserting ``subparagraphs (C) and (D)'', and (3) by striking subparagraph (C) and inserting the following: [[Page S3934]] ``(C) Phase out for applicable critical minerals other than metallurgical coal.-- ``(i) In general.--In the case of any applicable critical mineral (other than metallurgical coal) produced after December 31, 2030, the amount determined under this subsection with respect to such mineral shall be equal to the product of-- ``(I) the amount determined under paragraph (1) with respect to such mineral, as determined without regard to this subparagraph, multiplied by ``(II) the phase out percentage under clause (ii). ``(ii) Phase out percentage for applicable critical minerals other than metallurgical coal.--The phase out percentage under this clause is equal to-- ``(I) in the case of any applicable critical mineral produced during calendar year 2031, 75 percent, ``(II) in the case of any applicable critical mineral produced during calendar year 2032, 50 percent, ``(III) in the case of any applicable critical mineral produced during calendar year 2033, 25 percent, and ``(IV) in the case of any applicable critical mineral produced after December 31, 2033, 0 percent. ``(D) Termination for wind energy components.--This section shall not apply to any wind energy component produced and sold after December 31, 2027. ``(E) Termination for metallurgical coal.--This section shall not apply to any metallurgical coal produced after December 31, 2029.''. (c) Restrictions Relating to Prohibited Foreign Entities.-- Section 45X is amended-- (1) in subsection (c)(1), by adding at the end the following new subparagraph: ``(C) Material assistance from prohibited foreign entities.--In the case of taxable years beginning after the date of enactment of this subparagraph, the term `eligible component' shall not include any property which includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52), as applied by substituting `used in a product sold before January 1, 2027' for `used in a product sold before January 1, 2030' in subparagraph (D)(iii)(V)(bb) thereof).'', and (2) in subsection (d), as amended by subsection (a) of this section, by adding at the end the following new paragraph: ``(4) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year if the taxpayer is-- ``(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(ii) a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). ``(B) Effective control.--In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such determination relates to an eligible component described in subsection (c)(1).''. (d) Modification of Definition of Battery Module.--Section 45X(c)(5)(B)(iii) is amended-- (1) in subclause (I)(bb), by striking ``and'' at the end, (2) in subclause (II), by striking the period at the end and inserting ``, and'', and (3) by adding at the end the following new subclause: ``(III) which is comprised of all other essential equipment needed for battery functionality, such as current collector assemblies and voltage sense harnesses, thermal collection assemblies, or other essential energy collection equipment.''. (e) Inclusion of Metallurgical Coal as an Applicable Critical Mineral for Purposes of the Advanced Manufacturing Production Credit.-- (1) In general.--Section 45X(c)(6) is amended-- (A) by redesignating subparagraphs (R) through (Z) as subparagraphs (S) through (AA), respectively, and (B) by inserting after subparagraph (Q) the following new subparagraph: ``(R) Metallurgical coal.--Metallurgical coal which is suitable for use in the production of steel (within the meaning of the notice published by the Department of Energy entitled `Critical Material List; Addition of Metallurgical Coal Used for Steelmaking' (90 Fed. Reg. 22711 (May 29, 2025))), regardless of whether such production occurs inside or outside of the United States.''. (2) Credit amount.--Section 45X(b)(1)(M) is amended by inserting ``(2.5 percent in the case of metallurgical coal)'' after ``10 percent''. (f) Effective Dates.-- (1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Modification of provision relating to sale of integrated components.--The amendment made by subsection (a) shall apply to components sold during taxable years beginning after December 31, 2026. SEC. 70515. RESTRICTION ON THE EXTENSION OF ADVANCED ENERGY PROJECT CREDIT PROGRAM. (a) In General.--Section 48C(e)(3)(C) is amended by striking ``shall be increased'' and inserting ``shall not be increased''. (b) Effective Date.--The amendment made by this section shall take effect on the date of enactment of this Act. Subchapter B--Enhancement of America-first Energy Policy SEC. 70521. EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT. (a) Prohibition on Foreign Feedstocks.-- (1) In general.--Section 45Z(f)(1)(A) is amended-- (A) in clause (i)(II)(bb), by striking ``and'' at the end, (B) in clause (ii), by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following new clause: ``(iii) such fuel is exclusively derived from a feedstock which was produced or grown in the United States, Mexico, or Canada.''. (2) Effective date.--The amendments made by this subsection shall apply to transportation fuel produced after December 31, 2025. (b) Prohibition on Negative Emission Rates.-- (1) In general.--Section 45Z(b)(1) is amended-- (A) by striking subparagraph (C) and inserting the following: ``(C) Rounding of emissions rate.--The Secretary may round the emissions rates under subparagraph (B) to the nearest multiple of 5 kilograms of CO2e per mmBTU.'', and (B) by adding at the end the following new subparagraph: ``(E) Prohibition on negative emission rates.--For purposes of this section, the emissions rate for a transportation fuel may not be less than zero.''. (2) Effective date.--The amendments made by this subsection shall apply to emissions rates published for transportation fuel produced after December 31, 2025. (c) Determination of Emissions Rate.-- (1) In general.--Section 45Z(b)(1)(B) is amended by adding at the end the following new clauses: ``(iv) Exclusion of indirect land use changes.-- Notwithstanding clauses (i), (ii), and (iii), the emissions rate shall be adjusted as necessary to exclude any emissions attributed to indirect land use change. Any such adjustment shall be based on regulations or methodologies determined by the Secretary. ``(v) Animal manures.--With respect to any transportation fuel which is derived from animal manure, the Secretary-- ``(I) shall provide a distinct emissions rate with respect to such fuel based on the specific animal manure feedstock, which may include dairy manure, swine manure, poultry manure, or any other sources as are determined appropriate by the Secretary, and ``(II) notwithstanding subparagraph (E), may provide an emissions rate that is less than zero.''. (2) Conforming amendment.--Section 45Z(b)(1)(B)(i) is amended by striking ``clauses (ii) and (iii)'' and inserting ``clauses (ii), (iii), (iv), and (v)''. (3) Effective date.--The amendments made by this subsection shall apply to emissions rates published for transportation fuel produced after December 31, 2025. (d) Extension of Clean Fuel Production Credit.--Section 45Z(g) is amended by striking ``December 31, 2027'' and inserting ``December 31, 2029''. (e) Preventing Double Credit.--Section 45Z(d)(5) is amended-- (1) in subparagraph (A)-- (A) in clause (ii), by striking ``and'' at the end, (B) in clause (iii), by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following new clause: ``(iv) is not produced from a fuel for which a credit under this section is allowable.'', and (2) by adding at the end the following new subparagraph: ``(C) Regulations and guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of subparagraph (A)(iv).''. (f) Sales to Unrelated Persons.--Section 45Z(f)(3) is amended by adding at the end the following: ``The Secretary may prescribe additional related person rules similar to the rule described in the preceding sentence for entities which are not described in such sentence, including rules for related persons with respect to which the taxpayer has reason to believe will sell fuel to an unrelated person in a manner described in subsection (a)(4).''. (g) Treatment of Sustainable Aviation Fuel.-- (1) Coordination of credits.-- (A) In general.--Section 45Z(a)(3) is amended-- (i) in the heading, by striking ``Special'' and inserting ``Adjusted'', and (ii) by adding at the end the following new subparagraph: ``(C) Coordination of credits.--In the case of a transportation fuel which is sustainable aviation fuel which is sold before October 1, 2025, the amount of the credit determined under paragraph (1) with respect to any gallon of such fuel shall be reduced by an amount equal to the amount of the sustainable aviation fuel credit allowable under section 6426(k)(1).''. (B) Effective date.--The amendments made by this paragraph shall apply to fuel sold after December 31, 2024. (2) Elimination of special rate.-- [[Page S3935]] (A) In general.--Section 45Z(a)(3), as amended by paragraph (1), is amended by-- (i) striking subparagraph (A), and (ii) by redesignating subparagraph (C) as subparagraph (A). (B) Conforming amendment.--Section 45Z(c)(1) is amended by striking ``, the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii)'' and inserting ``and the $1.00 amount in subsection (a)(2)(B)''. (C) Effective date.--The amendments made by this paragraph shall apply to fuel produced after December 31, 2025. (h) Sustainable Aviation Fuel Credit.--Section 6426(k) is amended by adding at the end the following new paragraph: ``(4) Termination.--This subsection shall not apply to any sale or use for any period after September 30, 2025.''. (i) Registration of Producers of Fuel Eligible for Clean Fuel Production Credit.-- (1) In general.--Section 13704(b)(5) of Public Law 117-169 is amended by striking ``after `section 6426(k)(3)),' '' and inserting ``after `section 40B),' ''. (2) Effective date.--The amendment made by this subsection shall apply to transportation fuel produced after December 31, 2024. (j) Extension and Modification of Small Agri-biodiesel Producer Credit.-- (1) In general.--Section 40A is amended-- (A) in subsection (b)(4)-- (i) in subparagraph (A), by striking ``10 cents'' and inserting ``20 cents'', (ii) in subparagraph (B), by inserting ``in a manner which complies with the requirements under section 45Z(f)(1)(A)(iii)'' after ``produced by an eligible small agri-biodiesel producer'', and (iii) by adding at the end the following new subparagraph: ``(D) Coordination with clean fuel production credit.--The credit determined under this paragraph with respect to any gallon of fuel shall be in addition to any credit determined under section 45Z with respect to such gallon of fuel.'', and (B) in subsection (g), by inserting ``(or, in the case of the small agri-biodiesel producer credit, any sale or use after December 31, 2026)'' after ``December 31, 2024''. (2) Transfer of credit.--Section 6418(f)(1)(A) is amended by adding at the end the following new clause: ``(xii) So much of the biodiesel fuels credit determined under section 40A which consists of the small agri-biodiesel producer credit determined under subsection (b)(4) of such section.''. (3) Effective date.--The amendments made by this subsection shall apply to fuel sold or used after June 30, 2025. (k) Restrictions Relating to Prohibited Foreign Entities.-- (1) In general.--Section 45Z(f) is amended by adding at the end the following new paragraph: ``(8) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). ``(B) Other prohibited foreign entities.--No credit shall be determined under subsection (a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign- influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof).''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after the date of enactment of this Act. SEC. 70522. RESTRICTIONS ON CARBON OXIDE SEQUESTRATION CREDIT. (a) Restrictions Relating to Prohibited Foreign Entities.-- Section 45Q(f) is amended by adding at the end the following new paragraph: ``(10) Restrictions relating to prohibited foreign entities.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is-- ``(A) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(B) a foreign-influenced entity (as defined in section 7701(a)(51)(D), determined without regard to clause (i)(II) thereof).''. (b) Parity for Different Uses and Utilizations of Qualified Carbon Oxide.--Section 45Q is amended-- (1) in subsection (a)-- (A) in paragraph (2)(B)(ii), by adding ``and'' at the end, (B) in paragraph (3), by striking subparagraph (B) and inserting the following: ``(B)(i) disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in clause (ii) or (iii), ``(ii) used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project and disposed of by the taxpayer in secure geological storage, or ``(iii) utilized by the taxpayer in a manner described in subsection (f)(5).'', and (C) by striking paragraph (4), (2) in subsection (b)-- (A) in paragraph (1)-- (i) by striking subparagraph (A) and inserting the following: ``(A) In general.--Except as provided in subparagraph (B) or (C), the applicable dollar amount shall be an amount equal to-- ``(i) for any taxable year beginning in a calendar year after 2024 and before 2027, $17, and ``(ii) for any taxable year beginning in a calendar year after 2026, an amount equal to the product of $17 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting `2025' for `1990'.'', and (ii) in subparagraph (B), by striking ``shall be applied'' and all that follows through the period and inserting ``shall be applied by substituting `$36' for `$17' each place it appears.'', (B) in paragraph (2)(B), by striking ``paragraphs (3)(A) and (4)(A)'' and inserting ``paragraph (3)(A)'', and (C) in paragraph (3), by striking ``the dollar amounts applicable under paragraph (3) or (4)'' and inserting ``the dollar amount applicable under paragraph (3)'', (3) in subsection (f)-- (A) in paragraph (5)(B)(i), by striking ``(4)(B)(ii)'' and inserting ``(3)(B)(iii)'', and (B) in paragraph (9), by striking ``paragraphs (3) and (4) of subsection (a)'' and inserting ``subsection (a)(3)'', and (4) in subsection (h)(3)(A)(ii), by striking ``paragraph (3)(A) or (4)(A) of subsection (a)'' and inserting ``subsection (a)(3)(A)''. (c) Conforming Amendment.--Section 6417(d)(3)(C)(i)(II)(bb) is amended by striking ``paragraph (3)(A) or (4)(A) of section 45Q(a)'' and inserting ``section 45Q(a)(3)(A)''. (d) Effective Dates.-- (1) Restrictions relating to prohibited foreign entities.-- The amendment made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Parity for different uses and utilizations of qualified carbon oxide.--The amendments made subsections (b) and (c) shall apply to facilities or equipment placed in service after the date of enactment of this Act. SEC. 70523. INTANGIBLE DRILLING AND DEVELOPMENT COSTS TAKEN INTO ACCOUNT FOR PURPOSES OF COMPUTING ADJUSTED FINANCIAL STATEMENT INCOME. (a) In General.--Section 56A(c)(13) is amended-- (1) by striking subparagraph (A) and inserting the following: ``(A) reduced by-- ``(i) depreciation deductions allowed under section 167 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the year, and ``(ii) any deduction allowed for expenses under section 263(c) (including any deduction for such expenses under section 59(e) or 291(b)(2)) with respect to property described therein to the extent of the amount allowed as deductions in computing taxable income for the year, and'', and (2) by striking subparagraph (B)(i) and inserting the following: ``(i) to disregard any amount of-- ``(I) depreciation expense that is taken into account on the taxpayer's applicable financial statement with respect to such property, and ``(II) depletion expense that is taken into account on the taxpayer's applicable financial statement with respect to the intangible drilling and development costs of such property, and''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70524. INCOME FROM HYDROGEN STORAGE, CARBON CAPTURE, ADVANCED NUCLEAR, HYDROPOWER, AND GEOTHERMAL ENERGY ADDED TO QUALIFYING INCOME OF CERTAIN PUBLICLY TRADED PARTNERSHIPS. (a) In General.--Section 7704(d)(1)(E) is amended-- (1) by striking ``income and gains derived from the exploration'' and inserting the following: ``income and gains derived from-- ``(i) the exploration''. (2) by inserting ``or'' before ``industrial source'', and (3) by striking ``or the transportation or storage'' and all that follows and inserting the following: ``(ii) the transportation or storage of-- ``(I) any fuel described in subsection (b), (c), (d), (e), or (k) of section 6426, or any alcohol fuel defined in section 6426(b)(4)(A) or any biodiesel fuel as defined in section 40A(d)(1) or sustainable aviation fuel as defined in section 40B(d)(1), or ``(II) liquified hydrogen or compressed hydrogen, ``(iii) in the case of a qualified facility (as defined in section 45Q(d), without regard to any date by which construction of the facility or equipment is required to begin) not less than 50 percent of the total carbon oxide production of which is qualified carbon oxide (as defined in section 45Q(c))-- ``(I) the generation, availability for such generation, or storage of electric power at such facility, or ``(II) the capture of carbon dioxide by such facility, ``(iv) the production of electricity from any advanced nuclear facility (as defined in section 45J(d)(2)), ``(v) the production of electricity or thermal energy exclusively using a qualified energy resource described in subparagraph (D) or (H) of section 45(c)(1), or ``(vi) the operation of energy property described in clause (iii) or (vii) of section [[Page S3936]] 48(a)(3)(A) (determined without regard to any requirement under such section with respect to the date on which construction of property begins).''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70525. ALLOW FOR PAYMENTS TO CERTAIN INDIVIDUALS WHO DYE FUEL. (a) In General.--Subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: ``SEC. 6435. DYED FUEL. ``(a) In General.--If a person establishes to the satisfaction of the Secretary that such person meets the requirements of subsection (b) with respect to diesel fuel or kerosene, then the Secretary shall pay to such person an amount (without interest) equal to the tax described in subsection (b)(2)(A) with respect to such diesel fuel or kerosene. ``(b) Requirements.-- ``(1) In general.--A person meets the requirements of this subsection with respect to diesel fuel or kerosene if such person removes from a terminal eligible indelibly dyed diesel fuel or kerosene. ``(2) Eligible indelibly dyed diesel fuel or kerosene defined.--The term `eligible indelibly dyed diesel fuel or kerosene' means diesel fuel or kerosene-- ``(A) with respect to which a tax under section 4081 was previously paid (and not credited or refunded), and ``(B) which is exempt from taxation under section 4082(a). ``(c) Cross Reference.--For civil penalty for excessive claims under this section, see section 6675.''. (b) Conforming Amendments.-- (1) Section 6206 is amended-- (A) by striking ``or 6427'' each place it appears and inserting ``6427, or 6435'', and (B) by striking ``6420 and 6421'' and inserting ``6420, 6421, and 6435''. (2) Section 6430 is amended-- (A) by striking ``or'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``, or'', and by adding at the end the following new paragraph: ``(4) which are removed as eligible indelibly dyed diesel fuel or kerosene under section 6435.''. (3) Section 6675 is amended-- (A) in subsection (a), by striking ``or 6427 (relating to fuels not used for taxable purposes)'' and inserting ``6427 (relating to fuels not used for taxable purposes), or 6435 (relating to eligible indelibly dyed fuel)'', and (B) in subsection (b)(1), by striking ``6421, or 6427,'' and inserting ``6421, 6427, or 6435,''. (4) The table of sections for subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: ``Sec. 6435. Dyed fuel.''. (c) Effective Date.--The amendments made by this section shall apply to eligible indelibly dyed diesel fuel or kerosene removed on or after the date that is 180 days after the date of the enactment of this section. Subchapter C--Other Reforms SEC. 70531. MODIFICATIONS TO DE MINIMIS ENTRY PRIVILEGE FOR COMMERCIAL SHIPMENTS. (a) Civil Penalty.-- (1) Additional penalty imposed.--Section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) is amended by adding at the end the following new subsection: ``(c) Any person who enters, introduces, facilitates, or attempts to introduce an article into the United States using the privilege of this section, the importation of which violates any other provision of United States customs law, shall be assessed, in addition to any other penalty permitted by law, a civil penalty of up to $5,000 for the first violation and up to $10,000 for each subsequent violation.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect 30 days after the date of the enactment of this Act. (b) Repeal of Commercial Shipment Exception.-- (1) Repeal.--Section 321(a)(2) of such Act (19 U.S.C. 1321(a)(2)) is amended by striking ``of this Act, or'' and all that follows through ``subdivision (2); and'' and inserting ``of this Act; and''. (2) Conforming repeal.--Subsection (c) of such section 321, as added by subsection (a) of this section, is repealed. (3) Effective date.--The amendments made by this subsection shall take effect on July 1, 2027. CHAPTER 6--ENHANCING DEDUCTION AND INCOME TAX CREDIT GUARDRAILS, AND OTHER REFORMS SEC. 70601. MODIFICATION AND EXTENSION OF LIMITATION ON EXCESS BUSINESS LOSSES OF NONCORPORATE TAXPAYERS. (a) Rule Made Permanent.--Section 461(l)(1) is amended by striking ``and before January 1, 2029,'' each place it appears. (b) Adjustment of Amounts for Calculation of Excess Business Loss.--Section 461(l)(3)(C) is amended-- (1) in the matter preceding clause (i), by striking ``December 31, 2018'' and inserting ``December 31, 2025'', and (2) in clause (ii), by striking ``2017'' and inserting ``2024''. (c) Effective Dates.-- (1) Rule made permanent.--The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2026. (2) Adjustment of amounts for calculation of excess business loss.--The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2025. SEC. 70602. TREATMENT OF PAYMENTS FROM PARTNERSHIPS TO PARTNERS FOR PROPERTY OR SERVICES. (a) In General.--Section 707(a)(2) is amended by striking ``Under regulations prescribed'' and inserting ``Except as provided''. (b) Effective Date.--The amendment made by this section shall apply to services performed, and property transferred, after the date of the enactment of this Act. (c) Rule of Construction.--Nothing in this section, or the amendments made by this section, shall be construed to create any inference with respect to the proper treatment under section 707(a) of the Internal Revenue Code of 1986 with respect to payments from a partnership to a partner for services performed, or property transferred, on or before the date of the enactment of this Act. SEC. 70603. EXCESSIVE EMPLOYEE REMUNERATION FROM CONTROLLED GROUP MEMBERS AND ALLOCATION OF DEDUCTION. (a) Application of Aggregation Rules.--Section 162(m) is amended by adding at the end the following new paragraph: ``(7) Remuneration from controlled group members.-- ``(A) In general.--In the case of any publicly held corporation which is a member of a controlled group-- ``(i) paragraph (1) shall be applied by substituting `specified covered employee' for `covered employee', and ``(ii) if any person which is a member of such controlled group (other than such publicly held corporation) provides applicable employee remuneration to an individual who is a specified covered employee of such controlled group and the aggregate amount described in subparagraph (B)(ii) with respect to such specified covered employee exceeds $1,000,000-- ``(I) paragraph (1) shall apply to such person with respect to such remuneration, and ``(II) paragraph (1) shall apply to such publicly held corporation and to each such related person by substituting `the allocable limitation amount' for `$1,000,000'. ``(B) Allocable limitation amount.--For purposes of this paragraph, the term `allocable limitation amount' means, with respect to any member of the controlled group referred to in subparagraph (A) with respect to any specified covered employee of such controlled group, the amount which bears the same ratio to $1,000,000 as-- ``(i) the amount of applicable employee remuneration provided by such member with respect to such specified covered employee, bears to ``(ii) the aggregate amount of applicable employee remuneration provided by all such members with respect to such specified covered employee. ``(C) Specified covered employee.--For purposes of this paragraph, the term `specified covered employee' means, with respect to any controlled group-- ``(i) any employee described in subparagraph (A), (B), or (D) of paragraph (3), with respect to the publicly held corporation which is a member of such controlled group, and ``(ii) any employee who would be described in subparagraph (C) of paragraph (3) if such subparagraph were applied by taking into account the employees of all members of the controlled group. ``(D) Controlled group.--For purposes of this paragraph, the term `controlled group' means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70604. THIRD PARTY LITIGATION FUNDING REFORM. (a) In General.--Subtitle D, as amended by the preceding provisions of this Act, is amended by adding at the end the following new chapter: ``CHAPTER 50C--LITIGATION FINANCING ``Sec. 5000F-1. Tax imposed. ``Sec. 5000F-2. Definitions. ``Sec. 5000F-3. Special rules. ``SEC. 5000F-1. TAX IMPOSED. ``(a) In General.--A tax is hereby imposed for each taxable year in an amount equal to 31.8 percent of any qualified litigation proceeds received by a covered party. ``(b) Application of Tax for Pass-through Entities.--In the case of a covered party that is a partnership, S corporation, or other pass-through entity, the tax imposed under subsection (a) shall be applied at the entity level. ``SEC. 5000F-2. DEFINITIONS. ``In this chapter-- ``(1) Civil action.-- ``(A) In general.--The term `civil action' means any civil action, administrative proceeding, claim, or cause of action. ``(B) Multiple actions.--The term `civil action' may, unless otherwise indicated, include more than 1 civil action. ``(2) Covered party.-- ``(A) In general.--The term `covered party' means, with respect to any civil action, any third party (including an individual, corporation, partnership, or sovereign wealth fund) to such action which-- [[Page S3937]] ``(i) receives funds pursuant to a litigation financing agreement, and ``(ii) is not an attorney representing a party to such civil action. ``(B) Inclusion of domestic and foreign entities.-- Subparagraph (A) shall apply to any third party without regard to whether such party is created or organized in the United States or under the law of the United States or of any State. ``(3) Litigation financing agreement.-- ``(A) In general.--The term `litigation financing agreement' means, with respect to any civil action, a written agreement-- ``(i) whereby a third party agrees to provide funds to one of the named parties or any law firm affiliated with such civil action, and ``(ii) which creates a direct or collateralized interest in the proceeds of such action (by settlement, verdict, judgment or otherwise) which-- ``(I) is based, in whole or in part, on a funding-based obligation to-- ``(aa) such civil action, ``(bb) the appearing counsel, ``(cc) any contractual co-counsel, or ``(dd) the law firm of such counsel or co-counsel, and ``(II) is executed with-- ``(aa) any attorney representing a party to such civil action, ``(bb) any co-counsel in such civil action with a contingent fee interest in the representation of such party, ``(cc) any third party that has a collateral-based interest in the contingency fees of the counsel or co-counsel firm which is related, in whole or part, to the fees derived from representing such party, or ``(dd) any named party in such civil action. ``(B) Substantially similar agreements.--The term `litigation financing agreement' shall include any contract (including any option, forward contract, futures contract, short position, swap, or similar contract) or other agreement which, as determined by the Secretary, is substantially similar to an agreement described in subparagraph (A). ``(C) Exceptions.--The term `litigation financing agreement' shall not include any agreement-- ``(i) under which the total amount of funds described in subparagraph (A)(i) with respect to an individual civil action is less than $10,000, or ``(ii) in which the third party described in subparagraph (A)-- ``(I) has a right to receive proceeds which are derived from, or pursuant to, such agreement that are limited to-- ``(aa) repayment of the principal of a loan, ``(bb) repayment of the principal of a loan plus any interest on such loan, provided that the rate of interest does not exceed the greater of-- ``(AA) 7 percent, or ``(BB) a rate equal to twice the average annual yield on 30-year United States Treasury securities (as determined for the year preceding the date on which such agreement was executed), or ``(cc) reimbursement of attorney's fees, or ``(II) bears a relationship described in section 267(b) to the named party receiving the payment described in subparagraph (A)(i). ``(4) Qualified litigation proceeds.-- ``(A) In general.--The term `qualified litigation proceeds' means, with respect to any taxable year, an amount equal to the realized gains, net income, or other profit received by a covered party during such taxable year which is derived from, or pursuant to, any litigation financing agreement. ``(B) Anti-netting.--Any gains, income, or profit described in subparagraph (A) shall not be reduced or offset by any ordinary or capital loss in the taxable year. ``(C) Prohibition on exclusion of certain amounts.--In determining the amount of realized gain under subparagraph (A), amounts described in section 104(a)(2) and 892(a)(1) shall not be excluded. ``SEC. 5000F-3. SPECIAL RULES. ``(a) Withholding of Tax on Litigation Proceeds.--Any applicable person having the control, receipt, or custody of any proceeds from a civil action (by settlement, judgment, or otherwise) with respect to which such person had entered into a litigation financing agreement shall deduct and withhold from such proceeds a tax equal to 15.9 percent of the qualified litigation proceeds which are required to be paid to a third party pursuant to such agreement. ``(b) Applicable Person.--For purposes of this section, the term `applicable person' means any person which-- ``(1) is a named party in a civil action or a law firm affiliated with such civil action, and ``(2) has entered into a litigation financing agreement with respect to such civil action. ``(c) Application of Withholding Provisions.-- ``(1) Liability for withheld tax.--Every person required to deduct and withhold any tax under this chapter is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payments made in accordance with the provisions of this chapter. ``(2) Withheld tax as credit to recipient of qualified litigation proceeds.--Qualified litigation proceeds on which any tax is required to be withheld at the source under this chapter shall be included in the return of the recipient of such proceeds, but any amount of tax so withheld shall be credited against the amount of tax as computed in such return. ``(3) Tax paid by recipient of qualified litigation proceeds.--If-- ``(A) any person, in violation of the provisions of this chapter, fails to deduct and withhold any tax under this chapter, and ``(B) thereafter the tax against which such tax may be credited is paid, the tax so required to be deducted and withheld shall not be collected from such person, but this paragraph shall in no case relieve such person from liability for interest or any penalties or additions to the tax otherwise applicable in respect of such failure to deduct and withhold. ``(4) Refunds and credits with respect to withheld tax.-- Where there has been an overpayment of tax under this chapter, any refund or credit made under chapter 65 shall be made to the withholding agent unless the amount of such tax was actually withheld by the withholding agent.''. (b) Exclusion From Definition of Capital Asset.--Section 1221(a) is amended-- (1) in paragraph (7), by striking ``or'' at the end, (2) in paragraph (8), by striking the period at the end and inserting ``; or'', and (3) by adding at the end the following new paragraph: ``(9) any financial arrangement created by, or any proceeds derived from, a litigation financing agreement (as defined under section 5000F-2).''. (c) Removal From Gross Income.--Part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 139L the following new section: ``SEC. 139M. QUALIFIED LITIGATION PROCEEDS. ``Gross income shall not include any qualified litigation proceeds (as defined in section 5000F-2).''. (d) Clerical Amendments.-- (1) Section 7701(a)(16) is amended by inserting ``5000F- 3(c)(1),'' before ``1441''. (2) The table of chapters for subtitle D, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to chapter 50B the following new item: ``chapter 50c--litigation financing''. (3) The table of sections for part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 139L the following new item: ``Sec. 139M. Qualified litigation proceeds.''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70605. EXCISE TAX ON CERTAIN REMITTANCE TRANSFERS. (a) In General.--Chapter 36 is amended by inserting after subchapter B the following new subchapter: ``Subchapter C--Remittance Transfers ``Sec. 4475. Imposition of tax. ``SEC. 4475. IMPOSITION OF TAX. ``(a) In General.--There is hereby imposed on any remittance transfer a tax equal to 1 percent of the amount of such transfer. ``(b) Payment of Tax.-- ``(1) In general.--The tax imposed by this section with respect to any remittance transfer shall be paid by the sender with respect to such transfer. ``(2) Collection of tax.--The remittance transfer provider with respect to any remittance transfer shall collect the amount of the tax imposed under subsection (a) with respect to such transfer from the sender and remit such tax quarterly to the Secretary at such time and in such manner as provided by the Secretary, ``(3) Secondary liability.--Where any tax imposed by subsection (a) is not paid at the time the transfer is made, then to the extent that such tax is not collected, such tax shall be paid by the remittance transfer provider. ``(c) Tax Limited to Cash and Similar Instruments.--The tax imposed under subsection (a) shall apply only to any remittance transfer for which the sender provides cash, a money order, a cashier's check, or any other similar physical instrument (as determined by the Secretary) to the remittance transfer provider. ``(d) Nonapplication to Certain Noncash Remittance Transfers.--Subsection (a) shall not apply to any remittance transfer for which the funds being transferred are-- ``(1) withdrawn from an account held in or by a financial institution-- ``(A) which is described in subparagraphs (A) through (H) of section 5312(a)(2) of title 31, United States Code, and ``(B) that is subject to the requirements under subchapter II of chapter 53 of such title, or ``(2) funded with a debit card or a credit card which is issued in the United States. ``(e) Definitions.--For purposes of this section-- ``(1) In general.--The terms `remittance transfer', `remittance transfer provider', and `sender' shall each have the respective meanings given such terms by section 919(g) of the Electronic Fund Transfer Act (15 U.S.C. 1693o-1(g)). ``(2) Credit card.--The term `credit card' has the same meaning given such term under section 920(c)(3) of the Electronic Fund Transfer Act (15 U.S.C. 1693o-2(c)(3)). ``(3) Debit card.--The term `debit card' has the same meaning given such term under section 920(c)(2) of the Electronic Fund Transfer Act (15 U.S.C. 1693o-2(c)(2)), without regard to subparagraph (B) of such section. [[Page S3938]] ``(f) Application of Anti-conduit Rules.--For purposes of section 7701(l), with respect to any multiple-party arrangements involving the sender, a remittance transfer shall be treated as a financing transaction.''. (b) Conforming Amendment.--The table of subchapters for chapter 36 is amended by inserting after the item relating to subchapter B the following new item: ``subchapter c--remittance transfers''. (c) Effective Date.--The amendments made by this section shall apply to transfers made after December 31, 2025. SEC. 70606. ENFORCEMENT PROVISIONS WITH RESPECT TO COVID- RELATED EMPLOYEE RETENTION CREDITS. (a) Assessable Penalty for Failure to Comply With Due Diligence Requirements.-- (1) In general.--Any COVID-ERTC promoter which provides aid, assistance, or advice with respect to any COVID-ERTC document and which fails to comply with due diligence requirements imposed by the Secretary with respect to determining eligibility for, or the amount of, any credit or advance payment of a credit under section 3134 of the Internal Revenue Code of 1986, shall pay a penalty of $1,000 for each such failure. (2) Due diligence requirements.--The due diligence requirements referred to in paragraph (1) shall be similar to the due diligence requirements imposed under section 6695(g) of the Internal Revenue Code of 1986. (3) Restriction to documents used in connection with returns or claims for refund.--Paragraph (1) shall not apply with respect to any COVID-ERTC document unless such document constitutes, or relates to, a return or claim for refund. (4) Treatment as assessable penalty, etc.--For purposes of the Internal Revenue Code of 1986, the penalty imposed under paragraph (1) shall be treated as a penalty which is imposed under section 6695(g) of such Code and assessed under section 6201 of such Code. (5) Secretary.--For purposes of this subsection, the term ``Secretary'' means the Secretary of the Treasury or the Secretary's delegate. (b) COVID-ERTC Promoter.--For purposes of this section-- (1) In general.--The term ``COVID-ERTC promoter'' means, with respect to any COVID-ERTC document, any person which provides aid, assistance, or advice with respect to such document if-- (A) such person charges or receives a fee for such aid, assistance, or advice which is based on the amount of the refund or credit with respect to such document and, with respect to such person's taxable year in which such person provided such assistance or the preceding taxable year, the aggregate of the gross receipts of such person for aid, assistance, and advice with respect to all COVID-ERTC documents exceeds 20 percent of the gross receipts of such person for such taxable year, or (B) with respect to such person's taxable year in which such person provided such assistance or the preceding taxable year-- (i) the aggregate of the gross receipts of such person for aid, assistance, and advice with respect to all COVID-ERTC documents exceeds 50 percent of the gross receipts of such person for such taxable year, or (ii) both-- (I) such aggregate gross receipts exceed 20 percent of the gross receipts of such person for such taxable year, and (II) the aggregate of the gross receipts of such person for aid, assistance, and advice with respect to all COVID-ERTC documents (determined after application of paragraph (3)) exceeds $500,000. (2) Exception for certified professional employer organizations.--The term ``COVID-ERTC promoter'' shall not include a certified professional employer organization (as defined in section 7705 of the Internal Revenue Code of 1986). (3) Aggregation rule.--For purposes of paragraph (1), all persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986, or subsection (m) or (o) of section 414 of such Code, shall be treated as 1 person. (4) Short taxable years.--In the case of any taxable year of less than 12 months, a person shall be treated as a COVID- ERTC promoter if such person is described in paragraph (1) either with respect to such taxable year or by treating any reference to such taxable year as a reference to the calendar year in which such taxable year begins. (c) COVID-ERTC Document.--For purposes of this section, the term ``COVID-ERTC document'' means any return, affidavit, claim, or other document related to any credit or advance payment of a credit under section 3134 of the Internal Revenue Code of 1986, including any document related to eligibility for, or the calculation or determination of any amount directly related to, any such credit or advance payment. (d) Limitation on Credits and Refunds.--Notwithstanding section 6511 of the Internal Revenue Code of 1986, no credit under section 3134 of the Internal Revenue Code of 1986 shall be allowed, and no refund with respect to any such credit shall be made, after the date of the enactment of this Act, unless a claim for such credit or refund was filed by the taxpayer on or before January 31, 2024. (e) Extension of Limitation on Assessment.--Section 3134(l) is amended to read as follows: ``(l) Extension of Limitation on Assessment.-- ``(1) In general.--Notwithstanding section 6501, the limitation on the time period for the assessment of any amount attributable to a credit claimed under this section shall not expire before the date that is 6 years after the latest of-- ``(A) the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed, ``(B) the date on which such return is treated as filed under section 6501(b)(2), or ``(C) the date on which the claim for credit or refund with respect to such credit is made. ``(2) Deduction for wages taken into account in determining improperly claimed credit.-- ``(A) In general.--Notwithstanding section 6511, in the case of an assessment attributable to a credit claimed under this section, the limitation on the time period for credit or refund of any amount attributable to a deduction for improperly claimed ERTC wages shall not expire before the time period for such assessment expires under paragraph (1). ``(B) Improperly claimed ertc wages.--For purposes of this paragraph, the term `improperly claimed ERTC wages' means, with respect to an assessment attributable to a credit claimed under this section, the wages with respect to which a deduction would not have been allowed if the portion of the credit to which such assessment relates had been properly claimed.''. (f) Amendment to Penalty for Erroneous Claim for Refund or Credit.--Section 6676(a) is amended by striking ``income tax'' and inserting ``income or employment tax''. (g) Effective Dates.-- (1) In general.--The provisions of this section shall apply to aid, assistance, and advice provided after the date of the enactment of this Act. (2) Limitation on credits and refunds.--Subsection (d) shall apply to credits and refunds allowed or made after the date of the enactment of this Act. (3) Extension of limitation on assessment.--The amendment made by subsection (e) shall apply to assessments made after the date of the enactment of this Act. (4) Amendment to penalty for erroneous claim for refund or credit.--The amendment made by subsection (f) shall apply to claims for credit or refund after the date of the enactment of this Act. (h) Regulations.--The Secretary (as defined in subsection (a)(5)) shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section (and the amendments made by this section). SEC. 70607. SOCIAL SECURITY NUMBER REQUIREMENT FOR AMERICAN OPPORTUNITY AND LIFETIME LEARNING CREDITS. (a) Social Security Number of Taxpayer Required.--Section 25A(g)(1) is amended to read as follows: ``(1) Identification requirement.-- ``(A) Social security number requirement.--No credit shall be allowed under subsection (a) to an individual unless the individual includes on the return of tax for the taxable year-- ``(i) such individual's social security number, and ``(ii) in the case of a credit with respect to the qualified tuition and related expenses of an individual other than the taxpayer or the taxpayer's spouse, the name and social security number of such individual. ``(B) Institution.--No American Opportunity Tax Credit shall be allowed under this section unless the taxpayer includes the employer identification number of any institution to which the taxpayer paid qualified tuition and related expenses taken into account under this section on the return of tax for the taxable year. ``(C) Social security number defined.--For purposes of this paragraph, the term `social security number' shall have the meaning given such term in section 24(h)(7).''. (b) Omission Treated as Mathematical or Clerical Error.-- Section 6213(g)(2)(J) is amended by striking ``TIN'' and inserting ``social security number or employer identification number''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. 70608. TASK FORCE ON THE REPLACEMENT OF DIRECT FILE. Out of any money in the Treasury not otherwise appropriated, there is hereby appropriated for the fiscal year ending September 30, 2026, $15,000,000, to remain available until September 30, 2026, for necessary expenses of the Department of the Treasury to deliver to Congress, within 90 days following the date of the enactment of this Act, a report on-- (1) the cost of enhancing and establishing public-private partnerships which provide for free tax filing for up to 70 percent of all taxpayers calculated by adjusted gross income, and to replace any direct e-file programs run by the Internal Revenue Service; (2) taxpayer opinions and preferences regarding a taxpayer- funded, government-run service or a free service provided by the private sector; (3) assessment of the feasibility of a new approach, how to make the options consistent and simple for taxpayers across all participating providers, and how to provide features to address taxpayer needs; and (4) the cost (including options for differential coverage based on taxpayer adjusted gross income and return complexity) of developing and running a free direct e-file tax return system, including costs to build and administer each release. [[Page S3939]] Subtitle B--Health CHAPTER 1--MEDICAID Subchapter A--Reducing Fraud and Improving Enrollment Processes SEC. 71101. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO ELIGIBILITY AND ENROLLMENT IN MEDICARE SAVINGS PROGRAMS. The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on September 21, 2023, and titled ``Streamlining Medicaid; Medicare Savings Program Eligibility Determination and Enrollment'' (88 Fed. Reg. 65230) and shall not implement, administer, or enforce the amendments made to the following sections of title 42, Code of Federal Regulations: (1) Section 406.21(c). (2) Section 435.4. (3) Section 435.601. (4) Section 435.909. (5) Section 435.911. (6) Section 435.952. SEC. 71102. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO ELIGIBILITY AND ENROLLMENT FOR MEDICAID, CHIP, AND THE BASIC HEALTH PROGRAM. The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on April 2, 2024, and titled ``Medicaid Program; Streamlining the Medicaid, Children's Health Insurance Program, and Basic Health Program Application, Eligibility Determination, Enrollment, and Renewal Processes'' (89 Fed. Reg. 22780) and shall not implement, administer, or enforce the amendments made to the following sections of title 42, Code of Federal Regulations: (1) Part 431.-- (A) Section 431.10(c)(1)(i)(A)(2). (B) Section 431.10(c)(1)(i)(A)(3). (C) Section 431.213(d). (2) Part 435.-- (A) Section 435.222. (B) Section 435.223. (C) Section 435.407. (D) Section 435.601. (E) Section 435.608. (F) Section 435.831(g). (G) Section 435.907. (H) Section 435.911(c). (I) Section 435.912. (J) Section 435.916. (K) Section 435.919. (L) Section 435.940. (M) Section 435.952. (N) Section 435.1200. (3) Part 436.-- (A) Section 436.608. (B) Section 436.831(g). (4) Part 447.--Section 447.56(a)(1)(v). (5) Part 457.-- (A) Section 457.65(d). (B) Section 457.340(d). (C) Section 457.340(f). (D) Section 457.344. (E) Section 457.348. (F) Section 457.350. (G) Section 457.480. (H) Section 457.570. (I) Section 457.805(b). (J) Section 457.810(a). (K) Section 457.960. (L) Section 457.1140(d)(4). (M) Section 457.1170. (N) Section 457.1180. SEC. 71103. REDUCING DUPLICATE ENROLLMENT UNDER THE MEDICAID AND CHIP PROGRAMS. (a) Medicaid.-- (1) In general.--Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended-- (A) in subsection (a)-- (i) in paragraph (86), by striking ``and'' at the end; (ii) in paragraph (87), by striking the period and inserting ``; and''; and (iii) by inserting after paragraph (87) the following new paragraph: ``(88) provide-- ``(A) beginning not later than January 1, 2027, in the case of 1 of the 50 States and the District of Columbia, for a process to regularly obtain address information for individuals enrolled under such plan (or a waiver of such plan) in accordance with subsection (vv); and ``(B) beginning not later than October 1, 2029-- ``(i) for the State to submit to the system established by the Secretary under subsection (uu), with respect to an individual enrolled or seeking to enroll under such plan, not less frequently than once each month and during each determination or redetermination of the eligibility of such individual for medical assistance under such plan (or waiver of such plan)-- ``(I) the social security number of such individual, if such individual has a social security number and is required to provide such number to enroll under such plan (or waiver); and ``(II) such other information with respect to such individual as determined necessary by the Secretary for purposes of preventing individuals from simultaneously being enrolled under State plans (or waivers of such plans) of multiple States; ``(ii) for the use of such system to prevent such simultaneous enrollment; and ``(iii) in the case that such system indicates that an individual enrolled or seeking to enroll under such plan (or waiver of such plan) is enrolled under a State plan (or waiver of such a plan) of another State, for the taking of appropriate action (as determined by the Secretary) to identify whether such an individual resides in the State and disenroll an individual from the State plan of such State if such individual does not reside in such State (unless such individual meets such an exception as the Secretary may specify).''; and (B) by adding at the end the following new subsections: ``(uu) Prevention of Enrollment Under Multiple State Plans.-- ``(1) In general.--Not later than October 1, 2029, the Secretary shall establish a system to be utilized by the Secretary and States to prevent an individual from being simultaneously enrolled under the State plans (or waivers of such plans) of multiple States. Such system shall-- ``(A) provide for the receipt of information submitted by a State under subsection (a)(88)(B)(i); and ``(B) not less than once each month, transmit information to a State (or allow the Secretary to transmit information to a State) regarding whether an individual enrolled or seeking to enroll under the State plan of such State (or waiver of such plan) is enrolled under the State plan (or waiver of such plan) of another State. ``(2) Standards.--The Secretary shall establish such standards as determined necessary by the Secretary to limit and protect information submitted under such system and ensure the privacy of such information, consistent with subsection (a)(7). ``(3) Implementation funding.--There are appropriated to the Secretary, out of amounts in the Treasury not otherwise appropriated, in addition to amounts otherwise available-- ``(A) for fiscal year 2026, $10,000,000 for purposes of establishing the system and standards required under this subsection, to remain available until expended; and ``(B) for fiscal year 2029, $20,000,000 for purposes of maintaining such system, to remain available until expended. ``(vv) Process to Obtain Enrollee Address Information.-- ``(1) In general.--For purposes of subsection (a)(88)(A), a process to regularly obtain address information for individuals enrolled under a State plan (or a waiver of such plan) shall obtain address information from reliable data sources described in paragraph (2) and take such actions as the Secretary shall specify with respect to any changes to such address based on such information. ``(2) Reliable data sources described.--For purposes of paragraph (1), the reliable data sources described in this paragraph are the following: ``(A) Mail returned to the State by the United States Postal Service with a forwarding address. ``(B) The National Change of Address Database maintained by the United States Postal Service. ``(C) A managed care entity (as defined in section 1932(a)(1)(B)) or prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D)) that has a contract under the State plan if the address information is provided to such entity or plan directly from, or verified by such entity or plan directly with, such individual. ``(D) Other data sources as identified by the State and approved by the Secretary.''. (2) Conforming amendments.-- (A) PARIS.--Section 1903(r)(3) of the Social Security Act (42 U.S.C. 1396b(r)(3)) is amended-- (i) by striking ``In order'' and inserting ``(A) In order''; (ii) by striking ``through the Public'' and inserting ``through-- ``(i) the Public''; (iii) by striking the period at the end and inserting ``; and ``(ii) beginning October 1, 2029, the system established by the Secretary under section 1902(uu).''; and (iv) by adding at the end the following new subparagraph: ``(B) Beginning October 1, 2029, the Secretary may determine that a State is not required to have in operation an eligibility determination system which provides for data matching (for purposes of address verification under section 1902(vv)) through the system described in subparagraph (A)(i) to meet the requirements of this paragraph.''. (B) Managed care.--Section 1932 of the Social Security Act (42 U.S.C. 1396u-2) is amended by adding at the end the following new subsection: ``(j) Transmission of Address Information.--Beginning January 1, 2027, each contract under a State plan with a managed care entity (as defined in section 1932(a)(1)(B)) or with a prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D)), shall provide that such entity or plan shall promptly transmit to the State any address information for an individual enrolled with such entity or plan that is provided to such entity or plan directly from, or verified by such entity or plan directly with, such individual.''. (b) CHIP.-- [[Page S3940]] (1) In general.--Section 2107(e)(1) of the Social Security Act (42 U.S.C. 1397gg(e)(1)) is amended-- (A) by redesignating subparagraphs (H) through (U) as subparagraphs (I) through (V), respectively; and (B) by inserting after subparagraph (G) the following new subparagraph: ``(H) Section 1902(a)(88) (relating to address information for enrollees and prevention of simultaneous enrollments).''. (2) Managed care.--Section 2103(f)(3) of the Social Security Act (42 U.S.C. 1397cc(f)(3)) is amended by striking ``and (e)'' and inserting ``(e), and (j)''. SEC. 71104. ENSURING DECEASED INDIVIDUALS DO NOT REMAIN ENROLLED. Section 1902 of the Social Security Act (42 U.S.C. 1396a), as amended by section 71103, is further amended-- (1) in subsection (a)-- (A) in paragraph (87), by striking ``; and'' and inserting a semicolon; (B) in paragraph (88), by striking the period at the end and inserting ``; and''; and (C) by inserting after paragraph (88) the following new paragraph: ``(89) provide that the State shall comply with the eligibility verification requirements under subsection (ww), except that this paragraph shall apply only in the case of the 50 States and the District of Columbia.''; and (2) by adding at the end the following new subsection: ``(ww) Verification of Certain Eligibility Criteria.-- ``(1) In general.--For purposes of subsection (a)(89), the eligibility verification requirements, beginning January 1, 2028, are as follows: ``(A) Quarterly screening to verify enrollee status.--The State shall, not less frequently than quarterly, review the Death Master File (as such term is defined in section 203(d) of the Bipartisan Budget Act of 2013) or a successor system that provides such information needed to determine whether any individuals enrolled for medical assistance under the State plan (or waiver of such plan) are deceased. ``(B) Disenrollment under state plan.--If the State determines, based on information obtained from the Death Master File, that an individual enrolled for medical assistance under the State plan (or waiver of such plan) is deceased, the State shall-- ``(i) treat such information as factual information confirming the death of a beneficiary; ``(ii) disenroll such individual from the State plan (or waiver of such plan) in accordance with subsection (a)(3); and ``(iii) discontinue any payments for medical assistance under this title made on behalf of such individual (other than payments for any items or services furnished to such individual prior to the death of such individual). ``(C) Reinstatement of coverage in the event of error.--If a State determines that an individual was misidentified as deceased based on information obtained from the Death Master File and was erroneously disenrolled from medical assistance under the State plan (or waiver of such plan) based on such misidentification, the State shall immediately re-enroll such individual under the State plan (or waiver of such plan), retroactive to the date of such disenrollment. ``(2) Rule of construction.--Nothing under this subsection shall be construed to preclude the ability of a State to use other electronic data sources to timely identify potentially deceased beneficiaries, so long as the State is also in compliance with the requirements of this subsection (and all other requirements under this title relating to Medicaid eligibility determination and redetermination).''. SEC. 71105. ENSURING DECEASED PROVIDERS DO NOT REMAIN ENROLLED. Section 1902(kk)(1) of the Social Security Act (42 U.S.C. 1396a(kk)(1)) is amended-- (1) by striking ``The State'' and inserting: ``(A) In general.--The State''; and (2) by adding at the end the following new subparagraph: ``(B) Provider screening against death master file.-- Beginning January 1, 2028, as part of the enrollment (or reenrollment or revalidation of enrollment) of a provider or supplier under this title, and not less frequently than quarterly during the period that such provider or supplier is so enrolled, the State conducts a check of the Death Master File (as such term is defined in section 203(d) of the Bipartisan Budget Act of 2013) to determine whether such provider or supplier is deceased.''. SEC. 71106. PAYMENT REDUCTION RELATED TO CERTAIN ERRONEOUS EXCESS PAYMENTS UNDER MEDICAID. (a) In General.--Section 1903(u)(1) of the Social Security Act (42 U.S.C. 1396b(u)(1)) is amended-- (1) in subparagraph (A), by inserting ``for any audits conducted by the Secretary, or, at the option of the Secretary, audits conducted by the State'' after ``exceeds 0.03''; (2) in subparagraph (B)-- (A) by striking ``The Secretary'' and inserting ``(i) Subject to clause (ii), the Secretary''; and (B) by adding at the end the following new clause: ``(ii) The amount waived under clause (i) for a fiscal year may not exceed an amount equal to the erroneous excess payments for medical assistance described in subparagraph (D)(i)(II) made for such fiscal year.''. (3) in subparagraph (C), by striking ``he'' in each place it appears and inserting ``the Secretary'' in each such place; and (4) in subparagraph (D)(i)-- (A) in subclause (I), by striking ``and'' at the end; (B) in subclause (II), by striking the period at the end and inserting ``, or payments where insufficient information is available to confirm eligibility, and''; and (C) by adding at the end the following new subclause: ``(III) payments (other than payments described in subclause (I)) for items and services furnished to an individual who is not eligible for medical assistance under the State plan (or a waiver of such plan) with respect to such items and services, or payments where insufficient information is available to confirm eligibility.''. (b) Effective Date.--The amendments made by subsection (a) shall apply beginning with respect to fiscal year 2030. SEC. 71107. ELIGIBILITY REDETERMINATIONS. (a) In General.--Section 1902(e)(14) of the Social Security Act (42 U.S.C. 1396a(e)(14)) is amended by adding at the end the following new subparagraph: ``(L) Frequency of eligibility redeterminations for certain individuals.-- ``(i) In general.--Subject to clause (ii), with respect to redeterminations of eligibility for medical assistance under a State plan (or waiver of such plan) scheduled on or after the first day of the first quarter that begins after December 31, 2026, a State shall make such a redetermination once every 6 months for the following individuals: ``(I) Individuals enrolled under subsection (a)(10)(A)(i)(VIII). ``(II) Individuals described in such subsection who are otherwise enrolled under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in subsection (a)(10)(A)(i)(VIII). ``(ii) Exemption.--The requirements described in clause (i) shall not apply to any individual described in subsection (xx)(9)(A)(ii)(II). ``(iii) State defined.--For purposes of this subparagraph, the term `State' means 1 of the 50 States or the District of Columbia.''. (b) Guidance.--Not later than 180 days after the date of enactment of this section, the Secretary of Health and Human Services, acting through the Administrator of the Centers for Medicare & Medicaid Services, shall issue guidance relating to the implementation of the amendments made by this section. SEC. 71108. REVISING HOME EQUITY LIMIT FOR DETERMINING ELIGIBILITY FOR LONG-TERM CARE SERVICES UNDER THE MEDICAID PROGRAM. (a) Revising Home Equity Limit.--Section 1917(f)(1) of the Social Security Act (42 U.S.C. 1396p(f)(1)) is amended-- (1) in subparagraph (B)-- (A) by striking ``A State'' and inserting ``(i) A State''; (B) in clause (i), as inserted by subparagraph (A)-- (i) by striking `` `$500,000' '' and inserting ``the amount specified in subparagraph (A)''; and (ii) by inserting ``, in the case of an individual's home that is located on a lot that is zoned for agricultural use,'' after ``apply subparagraph (A)''; and (C) by adding at the end the following new clause: ``(ii) A State may elect, without regard to the requirements of section 1902(a)(1) (relating to statewideness) and section 1902(a)(10)(B) (relating to comparability), to apply subparagraph (A), in the case of an individual's home that is not described in clause (i), by substituting for the amount specified in such subparagraph, an amount that exceeds such amount, but does not exceed $1,000,000.''; and (2) in subparagraph (C)-- (A) by inserting ``(other than the amount specified in subparagraph (B)(ii) (relating to certain non-agricultural homes))'' after ``specified in this paragraph''; and (B) by adding at the end the following new sentence: ``In the case that application of the preceding sentence would result in a dollar amount (other than the amount specified in subparagraph (B)(i) (relating to certain agricultural homes)) exceeding $1,000,000, such amount shall be deemed to be equal to $1,000,000.''. (b) Clarification.--Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended-- (1) in subsection (r)(2), by adding at the end the following new subparagraph: ``(C) This paragraph shall not be construed as permitting a State to determine the eligibility of an individual for medical assistance with respect to nursing facility services or other long-term care services without application of the limit under section 1917(f)(1).''; and (2) in subsection (e)(14)(D)(iv)-- (A) by striking ``Subparagraphs'' and inserting ``(I) In general.--Subparagraphs''; and (B) by adding at the end the following new subclause: ``(II) Application of home equity interest limit.--Section 1917(f) shall apply for purposes of determining the eligibility of an individual for medical assistance with respect to nursing facility services or other long-term care services.''. [[Page S3941]] (c) Effective Date.--The amendments made by subsection (a) shall apply beginning on January 1, 2028. SEC. 71109. ALIEN MEDICAID ELIGIBILITY. (a) Medicaid.--Section 1903(v) of the Social Security Act (42 U.S.C. 1396b(v)) is amended-- (1) in paragraph (1), by striking ``and (4)''and inserting ``, (4), and (5)''; and (2) by adding at the end the following new paragraph: ``(5) Notwithstanding the preceding paragraphs of this subsection, beginning on October 1, 2026, except as provided in paragraphs (2) and (4), in no event shall payment be made to a State under this section for medical assistance furnished to an individual unless such individual is-- ``(A) a resident of 1 of the 50 States, the District of Columbia, or a territory of the United States; and ``(B) either-- ``(i) a citizen or national of the United States; ``(ii) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act, excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country; ``(iii) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(iv) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.''. (b) CHIP.--Section 2107(e)(1) of the Social Security Act, as amended by section 71103(b), is further amended-- (1) by redesignating subparagraphs (R) through (V) as paragraphs (S) through (W), respectively; and (2) by inserting after paragraph (Q) the following: ``(R) Section 1903(v)(5) (relating to payments for medical assistance furnished to aliens), except in relation to payments for services provided under section 2105(a)(1)(D)(ii).''. SEC. 71110. EXPANSION FMAP FOR CERTAIN STATES PROVIDING PAYMENTS FOR HEALTH CARE FURNISHED TO CERTAIN INDIVIDUALS. Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended-- (1) in subsection (y)-- (A) in paragraph (1)(E), by inserting ``(or, for calendar quarters beginning on or after October 1, 2027, in the case such State is a specified State with respect to such calendar quarter, 80 percent)'' after ``thereafter''; and (B) in paragraph (2), by adding at the end the following new subparagraph: ``(C) Specified state.--The term `specified State' means, with respect to a quarter, a State that-- ``(i) provides any form of financial assistance from a State general fund during such quarter, in whole or in part, whether or not made under a State plan (or waiver of such plan) under this title or under another program established by the State, to or on behalf of an alien who is not a qualified alien and is not a child or pregnant woman who is lawfully residing in the United States and eligible for medical assistance pursuant to section 1903(v)(4) or for child health assistance or pregnancy-related assistance pursuant to section 2107(e)(1)(Q), for the purchasing of health insurance coverage (as defined in section 2791(b)(1) of the Public Health Service Act) for an alien who is not a qualified alien and is not such a child or pregnant woman; or ``(ii) provides any form of comprehensive health benefits coverage, except such coverage required by Federal law, during such quarter, whether or not under a State plan (or waiver of such plan) under this title or under another program established by the State, and regardless of the source of funding for such coverage, to an alien who is not a qualified alien and is not such a child or pregnant woman. ``(D) Immigration terms.-- ``(i) Alien.--The term `alien' has the meaning given such term in section 101(a) of the Immigration and Nationality Act. ``(ii) Qualified alien.--The term `qualified alien' has the meaning given such term in section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, except that the references to `(in the opinion of the agency providing such benefits)' in subsection (c) of such section 431 shall be treated as references to `(in the opinion of the State in which such comprehensive health benefits coverage or such financial assistance is provided, as applicable)'.''; and (2) in subsection (z)(2)-- (A) in subparagraph (A), by striking ``for such year'' and inserting ``for such quarter''; and (B) in subparagraph (B)(i)-- (i) in the matter preceding subclause (I), by striking ``for a year'' and inserting ``for a calendar quarter in a year''; and (ii) in subclause (II), by striking ``for the year'' and inserting ``for the quarter for the State''. SEC. 71111. EXPANSION FMAP FOR EMERGENCY MEDICAID. Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended by adding at the end the following new subsection: ``(kk) FMAP for Treatment of an Emergency Medical Condition.--Notwithstanding subsection (y) and (z), beginning on October 1, 2026, the Federal medical assistance percentage for payments for care and services described in paragraph (2) of subsection 1903(v) furnished to an alien described in paragraph (1) of such subsection shall not exceed the Federal medical assistance percentage determined under subsection (b) for such State.''. Subchapter B--Preventing Wasteful Spending SEC. 71112. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO STAFFING STANDARDS FOR LONG-TERM CARE FACILITIES UNDER THE MEDICARE AND MEDICAID PROGRAMS. The Secretary of Health and Human Services shall not, during the period beginning on the date of the enactment of this section and ending September 30, 2034, implement, administer, or enforce the provisions of the final rule published by the Centers for Medicare & Medicaid Services on May 10, 2024, and titled ``Medicare and Medicaid Programs; Minimum Staffing Standards for Long-Term Care Facilities and Medicaid Institutional Payment Transparency Reporting'' (89 Fed. Reg. 40876) and shall not implement, administer, or enforce the amendments made to the following sections of part 483 of title 42, Code of Federal Regulations: (1) Section 483.5. (2) Section 483.35. SEC. 71113. REDUCING STATE MEDICAID COSTS. (a) In General.--Section 1902(a)(34) of the Social Security Act (42 U.S.C. 1396a(a)(34)) is amended to read as follows: ``(34) provide that in the case of any individual who has been determined to be eligible for medical assistance under the plan and-- ``(A) is enrolled under paragraph (10)(A)(i)(VIII), such assistance will be made available to the individual for care and services included under the plan and furnished in or after the month before the month in which the individual made application (or application was made on the individual's behalf in the case of a deceased individual) for such assistance if such individual was (or upon application would have been) eligible for such assistance at the time such care and services were furnished; or ``(B) is not described in subparagraph (A), such assistance will be made available to the individual for care and services included under the plan and furnished in or after the second month before the month in which the individual made application (or application was made on the individual's behalf in the case of a deceased individual) for such assistance if such individual was (or upon application would have been) eligible for such assistance at the time such care and services were furnished;''. (b) Definition of Medical Assistance.--Section 1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) is amended by striking ``in or after the third month before the month in which the recipient makes application for assistance'' and inserting ``, with respect to an individual described in section 1902(a)(34)(A), in or after the month before the month in which the recipient makes application for assistance, and with respect to an individual described in section 1902(a)(34)(B), in or after the second month before the month in which the recipient makes application for assistance''. (c) CHIP.--Section 2102(b)(1)(B) of the Social Security Act (42 U.S.C. 1397bb(b)(1)(B)) is amended-- (1) in clause (iv), by striking ``and'' at the end; (2) in clause (v), by striking the period and inserting ``; and''; and (3) by adding at the end the following new clause: ``(vi) shall, in the case that the State elects to provide child health or pregnancy-related assistance to an individual for any period prior to the month in which the individual made application for such assistance (or application was made on behalf of the individual), provide that such assistance is not made available to such individual for items and services included under the State child health plan (or waiver of such plan) that are furnished before the second month preceding the month in which such individual made application (or application was made on behalf of such individual) for assistance.''. (d) Effective Date.--The amendments made by this section shall apply to medical assistance, child health assistance, and pregnancy-related assistance with respect to individuals whose eligibility for such medical assistance, child health assistance, or pregnancy-related assistance is based on an application made on or after the first day of the first quarter that begins after December 31, 2026. SEC. 71114. PROHIBITING FEDERAL MEDICAID AND CHIP FUNDING FOR CERTAIN ITEMS AND SERVICES. (a) Medicaid.--Section 1903(i) of the Social Security Act (42 U.S.C. 1396b(i)) is amended-- (1) in paragraph (26), by striking ``; or'' and inserting a semicolon; (2) in paragraph (27), by striking the period at the end and inserting ``; or''; (3) by inserting after paragraph (27) the following new paragraph: ``(28) with respect to any amount expended for specified gender transition procedures (as defined in section 1905(ll)) furnished to an individual enrolled in a State plan (or waiver of such plan).''; and [[Page S3942]] (4) in the flush left matter at the end, by striking ``and (18),'' and inserting ``(18), and (28)''. (b) CHIP.--Section 2107(e)(1)(O) of the Social Security Act (42 U.S.C. 1397gg(e)(1)(O)), as redesignated by section 71103(b)(1)(A), is amended by striking ``and (17)'' and inserting ``(17), and (28)''. (c) Specified Gender Transition Procedures Defined.-- Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended by adding at the end the following new subsection: ``(ll) Specified Gender Transition Procedures.-- ``(1) In general.--For purposes of section 1903(i)(28), except as provided in paragraph (2) , the term `specified gender transition procedure' means, with respect to an individual, any of the following when performed for the purpose of intentionally changing the body of such individual (including by disrupting the body's development, inhibiting its natural functions, or modifying its appearance) to no longer correspond to the individual's sex: ``(A) Performing any surgery, including-- ``(i) castration; ``(ii) sterilization; ``(iii) orchiectomy; ``(iv) scrotoplasty; ``(v) vasectomy; ``(vi) tubal ligation; ``(vii) hysterectomy; ``(viii) oophorectomy; ``(ix) ovariectomy; ``(x) metoidioplasty; ``(xi) clitoroplasty; ``(xii) reconstruction of the fixed part of the urethra with or without a metoidioplasty or a phalloplasty; ``(xiii) penectomy; ``(xiv) phalloplasty; ``(xv) vaginoplasty; ``(xvi) vaginectomy; ``(xvii) vulvoplasty; ``(xviii) reduction thyrochondroplasty; ``(xix) chondrolaryngoplasty; ``(xx) mastectomy; and ``(xxi) any plastic, cosmetic, or aesthetic surgery that feminizes or masculinizes the facial or other body features of an individual. ``(B) Any placement of chest implants to create feminine breasts or any placement of erection or testicular prostheses. ``(C) Any placement of fat or artificial implants in the gluteal region. ``(D) Administering, prescribing, or dispensing to an individual medications, including-- ``(i) gonadotropin-releasing hormone (GnRH) analogues or other puberty-blocking drugs to stop or delay normal puberty; and ``(ii) testosterone, estrogen, or other androgens to an individual at doses that are supraphysiologic than would normally be produced endogenously in a healthy individual of the same age and sex. ``(2) Exception.--Paragraph (1) shall not apply to the following when furnished to an individual by a health care provider if the individual is a minor with the consent of such individual's parent or legal guardian: ``(A) Puberty suppression or blocking prescription drugs for the purpose of normalizing puberty for an individual experiencing precocious puberty. ``(B) Medically necessary procedures or treatments to correct for-- ``(i) a medically verifiable disorder of sex development, including-- ``(I) 46,XX chromosomes with virilization; ``(II) 46,XY chromosomes with undervirilization; and ``(III) both ovarian and testicular tissue; ``(ii) sex chromosome structure, sex steroid hormone production, or sex hormone action, if determined to be abnormal by a physician through genetic or biochemical testing; ``(iii) infection, disease, injury, or disorder caused or exacerbated by a previous procedure described in paragraph (1), or a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the individual in danger of death or impairment of a major bodily function unless the procedure is performed, not including procedures performed for the alleviation of mental distress; or ``(iv) procedures to restore or reconstruct the body of the individual in order to correspond to the individual's sex after one or more previous procedures described in paragraph (1), which may include the removal of a pseudo phallus or breast augmentation. ``(3) Sex.--For purposes of paragraph (1), the term `sex' means either male or female, as biologically determined and defined in paragraphs (4) and (5), respectively. ``(4) Female.--For purposes of paragraph (3), the term `female' means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes eggs for fertilization. ``(5) Male.--For purposes of paragraph (3), the term `male' means an individual who naturally has, had, will have, or would have, but for a developmental or genetic anomaly or historical accident, the reproductive system that at some point produces, transports, and utilizes sperm for fertilization.''. SEC. 71115. FEDERAL PAYMENTS TO PROHIBITED ENTITIES. (a) In General.--No Federal funds that are considered direct spending and provided to carry out a State plan under title XIX of the Social Security Act or a waiver of such a plan shall be used to make payments to a prohibited entity for items and services furnished during the 1-year period beginning on the date of the enactment of this Act, including any payments made directly to the prohibited entity or under a contract or other arrangement between a State and a covered organization. (b) Definitions.--In this section: (1) Prohibited entity.--The term ``prohibited entity'' means an entity, including its affiliates, subsidiaries, successors, and clinics-- (A) that, as of the first day of the first quarter beginning after the date of enactment of this Act-- (i) is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; (ii) is an essential community provider described in section 156.235 of title 45, Code of Federal Regulations (as in effect on the date of enactment of this Act), that is primarily engaged in family planning services, reproductive health, and related medical care; and (iii) provides for abortions, other than an abortion-- (I) if the pregnancy is the result of an act of rape or incest; or (II) in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed; and (B) for which the total amount of Federal and State expenditures under the Medicaid program under title XIX of the Social Security Act for medical assistance furnished in fiscal year 2023 made directly, or by a covered organization, to the entity or to any affiliates, subsidiaries, successors, or clinics of the entity, or made to the entity or to any affiliates, subsidiaries, successors, or clinics of the entity as part of a nationwide health care provider network, exceeded $800,000. (2) Direct spending.--The term ``direct spending'' has the meaning given that term under section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)). (3) Covered organization.--The term ``covered organization'' means a managed care entity (as defined in section 1932(a)(1)(B) of the Social Security Act (42 U.S.C. 1396u-2(a)(1)(B))) or a prepaid inpatient health plan or prepaid ambulatory health plan (as such terms are defined in section 1903(m)(9)(D) of such Act (42 U.S.C. 1396b(m)(9)(D))). (4) State.--The term ``State'' has the meaning given such term in section 1101 of the Social Security Act (42 U.S.C. 1301). Subchapter C--Stopping Abusive Financing Practices SEC. 71116. SUNSETTING INCREASED FMAP INCENTIVE. Section 1905(ii)(3) of the Social Security Act (42 U.S.C. 1396d(ii)(3)) is amended-- (1) by striking ``which has not'' and inserting the following: ``which-- ``(A) has not''; (2) in subparagraph (A), as so inserted, by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following new subparagraph: ``(B) begins to expend amounts for all such individuals prior to January 1, 2026.''. SEC. 71117. PROVIDER TAXES. (a) Change in Threshold for Hold Harmless Provision of Broad-based Health Care Related Taxes.--Section 1903(w)(4) of the Social Security Act (42 U.S.C. 1396b(w)(4)) is amended-- (1) in subparagraph (C)(ii), by inserting ``, and for fiscal years beginning on or after October 1, 2026, the applicable percent determined under subparagraph (D) shall be substituted for `6 percent' each place it appears'' after ``each place it appears''; and (2) by inserting after subparagraph (C)(ii), the following new subparagraph: ``(D)(i) For purposes of subparagraph (C)(ii), the applicable percent determined under this subparagraph is-- ``(I) in the case of a non-expansion State and a class of health care items or services described in section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025)-- ``(aa) if, on the date of enactment of this subparagraph, the non-expansion State has enacted a tax and imposes such tax on such class and the Secretary determines that the tax is within the hold harmless threshold as of that date, the applicable percent of net patient revenue attributable to such class that has been so determined; and ``(bb) if, on the date of enactment of this subparagraph, the non-expansion State has not enacted or does not impose a tax with respect to such class, 0 percent; and ``(II) in the case of an expansion State and a class of health care items or services described in section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025), subject to clause (iv)-- ``(aa) if, on the date of enactment of this subparagraph, the expansion State has enacted a tax and imposes such tax on such class and the Secretary determines that the tax is within the hold harmless threshold as of that date, the lower of-- ``(AA) the applicable percent of net patient revenue attributable to such class that has been so determined; and ``(BB) the applicable percent specified in clause (ii) for the fiscal year; and ``(bb) if, on the date of enactment of this subparagraph, the expansion State has not enacted or does not impose a tax with respect to such class, 0 percent. [[Page S3943]] ``(ii) For purposes of clause (i)(II)(aa)(BB), the applicable percent is-- ``(I) for fiscal year 2028, 5.5 percent; ``(II) for fiscal year 2029, 5 percent; ``(III) for fiscal year 2030, 4.5 percent; ``(IV) for fiscal year 2031, 4 percent; and ``(V) for fiscal year 2032 and each subsequent fiscal year, 3.5 percent. ``(iii) For purposes of clause (i): ``(I) Expansion state.--The term `expansion State' means a State that, beginning on January 1, 2014, or on any date thereafter, elects to provide medical assistance to all individuals described in section 1902(a)(10)(A)(i)(VIII) under the State plan under this title or under a waiver of such plan. ``(II) Non-expansion state.--The term `non-expansion State' means a State that is not an expansion State. ``(iv) In the case of a tax of an expansion State in effect on the date of enactment of this clause, that applies to a class of health care items or services that is described in paragraph (3) or (4) of section 433.56(a) of title 42, Code of Federal Regulations (as in effect on May 1, 2025), and for which, on such date of enactment, is within the hold harmless threshold (as determined by the Secretary), the applicable percent of net patient revenue attributable to such class that has been so determined shall apply for a fiscal year instead of the applicable percent specified in clause (ii) for the fiscal year.''. (b) Non-application to Territories.--The amendments made by this section shall only apply with respect to a State that is 1 of the 50 States or the District of Columbia. (c) Implementation Funding.--For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services, $6,000,000 for fiscal year 2026, to remain available until expended. SEC. 71118. STATE DIRECTED PAYMENTS. (a) In General.--Subject to subsection (b), the Secretary of Health and Human Services (in this section referred to as the Secretary) shall revise section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a successor regulation) such that, with respect to a payment described in such section made for a service furnished during a rating period beginning on or after the date of the enactment of this Act, the total payment rate for such service is limited to-- (1) in the case of a State that provides coverage to all individuals described in section 1902(a)(10)(A)(i)(VIII) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) under the State plan (or waiver of such plan) of such State under title XIX of such Act, 100 percent of the specified total published Medicare payment rate (or, in the absence of a specified total published Medicare payment rate, the payment rate under a Medicaid State plan (or under a waiver of such plan)); or (2) in the case of a State other than a State described in paragraph (1), 110 percent of the specified total published Medicare payment rate (or, in the absence of a specified total published Medicare payment rate, the payment rate under a Medicaid State plan (or under a waiver of such plan)). (b) Grandfathering Certain Payments.--In the case of a payment described in section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a successor regulation) for which written prior approval (or a good faith effort to receive such approval, as determined by the Secretary) was made before May 1, 2025, or a payment described in such section for a rural hospital (as defined in subsection (d)(2)) for which written prior approval (or a good faith effort to receive such approval, as determined by the Secretary) was made by the date of enactment of this Act, for the rating period occurring within 180 days of the date of the enactment of this Act, beginning with the rating period on or after January 1, 2028, the total amount of such payment shall be reduced by 10 percentage points each year until the total payment rate for such service is equal to the rate for such service specified in subsection (a). (c) Treatment of Expansion States.--The revisions described in subsection (a) shall provide that, with respect to a State that begins providing the coverage described in paragraph (1) of such subsection on or after the date of the enactment of this Act, the limitation described in such paragraph shall apply to such State with respect to a payment described in section 438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a successor regulation) for a service furnished during a rating period beginning on or after the date of enactment of this Act. (d) Definitions.--In this section: (1) Rating period.--The term ``rating period'' has the meaning given such term in section 438.2 of title 42, Code of Federal Regulations (or a successor regulation). (2) Rural hospital.--The term ``rural hospital'' means the following: (A) A subsection (d) hospital (as defined in paragraph (1)(B) of section 1886(d)) that-- (i) is located in a rural area (as defined in paragraph (2)(D) of such section); (ii) is treated as being located in a rural area pursuant to paragraph (8)(E) of such section; or (iii) is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). (B) A critical access hospital (as defined in section 1861(mm)(1)). (C) A sole community hospital (as defined in section 1886(d)(5)(D)(iii)). (D) A Medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv)). (E) A low-volume hospital (as defined in section 1886(d)(12)(C)). (F) A rural emergency hospital (as defined in section 1861(kkk)(2)). (3) State.--The term ``State'' means 1 of the 50 States or the District of Columbia. (4) Total published medicare payment rate.--The term ``total published Medicare payment rate'' means amounts calculated as payment for specific services including the service furnished that have been developed under part A or part B of title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.). (5) Written prior approval.--The term ``written prior approval'' has the meaning given such term in section 438.6(c)(2)(i) of title 42, Code of Federal Regulations (or a successor regulation). (e) Funding.--There are appropriated out of any monies in the Treasury not otherwise appropriated $7,000,000 for each of fiscal years 2026 through 2033 for purposes of carrying out this section, to remain available until expended. SEC. 71119. REQUIREMENTS REGARDING WAIVER OF UNIFORM TAX REQUIREMENT FOR MEDICAID PROVIDER TAX. (a) In General.--Section 1903(w) of the Social Security Act (42 U.S.C. 1396b(w)) is amended-- (1) in paragraph (3)(E), by inserting after clause (ii)(II) the following new clause: ``(iii) For purposes of clause (ii)(I), a tax is not considered to be generally redistributive if any of the following conditions apply: ``(I) Within a permissible class, the tax rate imposed on any taxpayer or tax rate group (as defined in paragraph (7)(J)) explicitly defined by its relatively lower volume or percentage of Medicaid taxable units (as defined in paragraph (7)(H)) is lower than the tax rate imposed on any other taxpayer or tax rate group explicitly defined by its relatively higher volume or percentage of Medicaid taxable units. ``(II) Within a permissible class, the tax rate imposed on any taxpayer or tax rate group (as so defined) based upon its Medicaid taxable units (as so defined) is higher than the tax rate imposed on any taxpayer or tax rate group based upon its non-Medicaid taxable unit (as defined in paragraph (7)(I)). ``(III) The tax excludes or imposes a lower tax rate on a taxpayer or tax rate group (as so defined) based on or defined by any description that results in the same effect as described in subclause (I) or (II) for a taxpayer or tax rate group. Characteristics that may indicate such type of exclusion include the use of terminology to establish a tax rate group-- ``(aa) based on payments or expenditures made under the program under this title without mentioning the term `Medicaid' (or any similar term) to accomplish the same effect as described in subclause (I) or (II); or ``(bb) that closely approximates a taxpayer or tax rate group under the program under this title, to the same effect as described in subclause (I) or (II).''; and (2) in paragraph (7), by adding at the end the following new subparagraphs: ``(H) The term `Medicaid taxable unit' means a unit that is being taxed within a health care related tax that is applicable to the program under this title. Such term includes a unit that is used as the basis for-- ``(i) payment under the program under this title (such as Medicaid bed days); ``(ii) Medicaid revenue; ``(iii) costs associated with the program under this title (such as Medicaid charges, claims, or expenditures); and ``(iv) other units associated with the program under this title, as determined by the Secretary. ``(I) The term `non-Medicaid taxable unit' means a unit that is being taxed within a health care related tax that is not applicable to the program under this title. Such term includes a unit that is used as the basis for-- ``(i) payment by non-Medicaid payers (such as non-Medicaid bed days); ``(ii) non-Medicaid revenue; ``(iii) costs that are not associated with the program under this title (such as non-Medicaid charges, non-Medicaid claims, or non-Medicaid expenditures); and ``(iv) other units not associated with the program under this title, as determined by the Secretary. ``(J) The term `tax rate group' means a group of entities contained within a permissible class of a health care related tax that are taxed at the same rate.''. (b) Non-application to Territories.--The amendments made by this section shall only apply with respect to a State that is 1 of the 50 States or the District of Columbia. (c) Effective Date.--The amendments made by this section shall take effect upon the date of enactment of this Act, subject to any applicable transition period determined appropriate by the Secretary of Health and Human Services, not to exceed 3 fiscal years. SEC. 71120. REQUIRING BUDGET NEUTRALITY FOR MEDICAID DEMONSTRATION PROJECTS UNDER SECTION 1115. (a) In General.--Section 1115 of the Social Security Act (42 U.S.C. 1315) is amended by [[Page S3944]] adding at the end the following new subsection: ``(g) Requirement of Budget Neutrality for Medicaid Demonstration Projects.-- ``(1) In general.--Beginning January 1 2027, the Secretary may not approve an application for (or renewal or amendment of) an experimental, pilot, or demonstration project undertaken under subsection (a) to promote the objectives of title XIX in a State (in this subsection referred to as a `Medicaid demonstration project') unless the Chief Actuary for the Centers for Medicare & Medicaid Services certifies that such project, based on expenditures for the State program in the preceding fiscal year or, in the case of a renewal, the duration of the preceding waiver, is not expected to result in an increase in the amount of Federal expenditures compared to the amount that such expenditures would otherwise be in the absence of such project. For purposes of this subsection, expenditures for the coverage of populations and services that the State could have otherwise provided through its Medicaid State plan or other authority under title XIX, including expenditures that could be made under such authority but for the provision of such services at a different site of service than authorized under such State plan or other authority, shall be considered expenditures in the absence of such a project. ``(2) Treatment of savings.--In the event that expenditures with respect to a State under a Medicaid demonstration project are, during an approval period for such project, less than the amount of such expenditures that would have otherwise been made in the absence of such project, the Secretary shall specify the methodology to be used with respect to the subsequent approval period for such project for purposes of taking the difference between such expenditures into account.''. (b) Implementation Funding.--For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services, $5,000,000 for each of fiscal years 2026 and 2027, to remain available until expended. Subchapter D--Increasing Personal Accountability SEC. 71121. REQUIREMENT FOR STATES TO ESTABLISH MEDICAID COMMUNITY ENGAGEMENT REQUIREMENTS FOR CERTAIN INDIVIDUALS. (a) In General.--Section 1902 of the Social Security Act (42 U.S.C. 1396a), as amended by sections 71103 and 71104, is further amended by adding at the end the following new subsection: ``(xx) Community Engagement Requirement for Applicable Individuals.-- ``(1) In general.--Except as provided in paragraph (11), beginning not later than the first day of the first quarter that begins after December 31, 2026, or, at the option of the State under a waiver or demonstration project under section 1115 or the State plan, such earlier date as the State may specify, subject to the succeeding provisions of this subsection, a State shall provide, as a condition of eligibility for medical assistance for an applicable individual, that such individual is required to demonstrate community engagement under paragraph (2)-- ``(A) in the case of an applicable individual who has filed an application for medical assistance under a State plan (or a waiver of such plan) under this title, for 1 or more but not more than 3 (as specified by the State) consecutive months immediately preceding the month during which such individual applies for such medical assistance; and ``(B) in the case of an applicable individual enrolled and receiving medical assistance under a State plan (or under a waiver of such plan) under this title, for 1 or more (as specified by the State) months, whether or not consecutive-- ``(i) during the period between such individual's most recent determination (or redetermination, as applicable) of eligibility and such individual's next regularly scheduled redetermination of eligibility (as verified by the State as part of such regularly scheduled redetermination of eligibility); or ``(ii) in the case of a State that has elected under paragraph (4) to conduct more frequent verifications of compliance with the requirement to demonstrate community engagement, during the period between the most recent and next such verification with respect to such individual. ``(2) Community engagement compliance described.--Subject to paragraph (3), an applicable individual demonstrates community engagement under this paragraph for a month if such individual meets 1 or more of the following conditions with respect to such month, as determined in accordance with criteria established by the Secretary through regulation: ``(A) The individual works not less than 80 hours. ``(B) The individual completes not less than 80 hours of community service. ``(C) The individual participates in a work program for not less than 80 hours. ``(D) The individual is enrolled in an educational program at least half-time. ``(E) The individual engages in any combination of the activities described in subparagraphs (A) through (D), for a total of not less than 80 hours. ``(F) The individual has a monthly income that is not less than the applicable minimum wage requirement under section 6 of the Fair Labor Standards Act of 1938, multiplied by 80 hours. ``(G) The individual had an average monthly income over the preceding 6 months that is not less than the applicable minimum wage requirement under section 6 of the Fair Labor Standards Act of 1938 multiplied by 80 hours, and is a seasonal worker, as described in section 45R(d)(5)(B) of the Internal Revenue Code of 1986 . ``(3) Exceptions.-- ``(A) Mandatory exception for certain individuals.--The State shall deem an applicable individual to have demonstrated community engagement under paragraph (2) for a month, and may elect to not require an individual to verify information resulting in such deeming, if-- ``(i) for part or all of such month, the individual-- ``(I) was a specified excluded individual (as defined in paragraph (9)(A)(ii)); or ``(II) was-- ``(aa) under the age of 19; ``(bb) entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII; or ``(cc) described in any of subclauses (I) through (VII) of subsection (a)(10)(A)(i); or ``(ii) at any point during the 3-month period ending on the first day of such month, the individual was an inmate of a public institution. ``(B) Optional exception for short-term hardship events.-- ``(i) In general.--The State plan (or waiver of such plan) may provide, in the case of an applicable individual who experiences a short-term hardship event during a month, that the State shall, under procedures established by the State (in accordance with standards specified by the Secretary), in the case of a short-term hardship event described in clause (ii)(II) and, upon the request of such individual, a short- term hardship event described in subclause (I) or (III) of clause (ii), deem such individual to have demonstrated community engagement under paragraph (2) for such month. ``(ii) Short-term hardship event defined.--For purposes of this subparagraph, an applicable individual experiences a short-term hardship event during a month if, for part or all of such month-- ``(I) such individual receives inpatient hospital services, nursing facility services, services in an intermediate care facility for individuals with intellectual disabilities, inpatient psychiatric hospital services, or such other services of similar acuity (including outpatient care relating to other services specified in this subclause) as the Secretary determines appropriate; ``(II) such individual resides in a county (or equivalent unit of local government)-- ``(aa) in which there exists an emergency or disaster declared by the President pursuant to the National Emergencies Act or the Robert T. Stafford Disaster Relief and Emergency Assistance Act; or ``(bb) that, subject to a request from the State to the Secretary, made in such form, at such time, and containing such information as the Secretary may require, has an unemployment rate that is at or above the lesser of-- ``(AA) 8 percent; or ``(BB) 1.5 times the national unemployment rate; or ``(III) such individual or their dependent must travel outside of their community for an extended period of time to receive medical services necessary to treat a serious or complex medical condition (as described in paragraph (9)(A)(ii)(V)(ee)) that are not available within their community of residence. ``(4) Option to conduct more frequent compliance verifications.--With respect to an applicable individual enrolled and receiving medical assistance under a State plan (or a waiver of such plan) under this title, the State shall verify (in accordance with procedures specified by the Secretary) that each such individual has met the requirement to demonstrate community engagement under paragraph (1) during each such individual's regularly scheduled redetermination of eligibility, except that a State may provide for such verifications more frequently. ``(5) Ex parte verifications.--For purposes of verifying that an applicable individual has met the requirement to demonstrate community engagement under paragraph (1), or determining such individual to be deemed to have demonstrated community engagement under paragraph (3), or that an individual is a specified excluded individual under paragraph (9)(A)(ii), the State shall, in accordance with standards established by the Secretary, establish processes and use reliable information available to the State (such as payroll data or payments or encounter data under this title for individuals and data on payments to such individuals for the provision of services covered under this title) without requiring, where possible, the applicable individual to submit additional information. ``(6) Procedure in the case of noncompliance.-- ``(A) In general.--If a State is unable to verify that an applicable individual has met the requirement to demonstrate community engagement under paragraph (1) (including, if applicable, by verifying that such individual was deemed to have demonstrated community engagement under paragraph (3)) the State shall (in accordance with standards specified by the Secretary)-- ``(i) provide such individual with the notice of noncompliance described in subparagraph (B); [[Page S3945]] ``(ii)(I) provide such individual with a period of 30 calendar days, beginning on the date on which such notice of noncompliance is received by the individual, to-- ``(aa) make a satisfactory showing to the State of compliance with such requirement (including, if applicable, by showing that such individual was or should be deemed to have demonstrated community engagement under paragraph (3)); or ``(bb) make a satisfactory showing to the State that such requirement does not apply to such individual on the basis that such individual does not meet the definition of applicable individual under paragraph (9)(A); and ``(II) if such individual is enrolled under the State plan (or a waiver of such plan) under this title, continue to provide such individual with medical assistance during such 30-calendar-day period; and ``(iii) if no such satisfactory showing is made and the individual is not a specified excluded individual described in paragraph (9)(A)(ii), deny such individual's application for medical assistance under the State plan (or waiver of such plan) or, as applicable, disenroll such individual from the plan (or waiver of such plan) not later than the end of the month following the month in which such 30-calendar-day period ends, provided that-- ``(I) the State first determines whether, with respect to the individual, there is any other basis for eligibility for medical assistance under the State plan (or waiver of such plan) or for another insurance affordability program; and ``(II) the individual is provided written notice and granted an opportunity for a fair hearing in accordance with subsection (a)(3). ``(B) Notice.--The notice of noncompliance provided to an applicable individual under subparagraph (A)(i) shall include information (in accordance with standards specified by the Secretary) on-- ``(i) how such individual may make a satisfactory showing of compliance with such requirement (as described in subparagraph (A)(ii)) or make a satisfactory showing that such requirement does not apply to such individual on the basis that such individual does not meet the definition of applicable individual under paragraph (9)(A); and ``(ii) how such individual may reapply for medical assistance under the State plan (or a waiver of such plan) under this title in the case that such individuals' application is denied or, as applicable, in the case that such individual is disenrolled from the plan (or waiver). ``(7) Treatment of noncompliant individuals in relation to certain other provisions.-- ``(A) Certain fmap increases.--A State shall not be treated as not providing medical assistance to all individuals described in section 1902(a)(10)(A)(i)(VIII), or as not expending amounts for all such individuals under the State plan (or waiver of such plan), solely because such an individual is determined ineligible for medical assistance under the State plan (or waiver) on the basis of a failure to meet the requirement to demonstrate community engagement under paragraph (1). ``(B) Other provisions.--For purposes of section 36B(c)(2)(B) of the Internal Revenue Code of 1986, an individual shall be deemed to be eligible for minimum essential coverage described in section 5000A(f)(1)(A)(ii) of such Code for a month if such individual would have been eligible for medical assistance under a State plan (or a waiver of such plan) under this title but for a failure to meet the requirement to demonstrate community engagement under paragraph (1). ``(8) Outreach.-- ``(A) In general.--In accordance with standards specified by the Secretary, beginning not later than the date that precedes December 31, 2026 (or, if the State elects under paragraph (1) to specify an earlier date, such earlier date) by the number of months specified by the State under paragraph (1)(A) plus 3 months, and periodically thereafter, the State shall notify applicable individuals enrolled under a State plan (or waiver) under this title of the requirement to demonstrate community engagement under this subsection. Such notice shall include information on-- ``(i) how to comply with such requirement, including an explanation of the exceptions to such requirement under paragraph (3) and the definition of the term `applicable individual' under paragraph (9)(A); ``(ii) the consequences of noncompliance with such requirement; and ``(iii) how to report to the State any change in the individual's status that could result in-- ``(I) the applicability of an exception under paragraph (3) (or the end of the applicability of such an exception); or ``(II) the individual qualifying as a specified excluded individual under paragraph (9)(A)(ii). ``(B) Form of outreach notice.--A notice required under subparagraph (A) shall be delivered-- ``(i) by regular mail (or, if elected by the individual, in an electronic format); and ``(ii) in 1 or more additional forms, which may include telephone, text message, an internet website, other commonly available electronic means, and such other forms as the Secretary determines appropriate. ``(9) Definitions.--In this subsection: ``(A) Applicable individual.-- ``(i) In general.--The term `applicable individual' means an individual (other than a specified excluded individual (as defined in clause (ii)))-- ``(I) who is eligible to enroll (or is enrolled) under the State plan under subsection (a)(10)(A)(i)(VIII); or ``(II) who-- ``(aa) is otherwise eligible to enroll (or is enrolled) under a waiver of such plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and as determined in accordance with standards prescribed by the Secretary in regulations); and ``(bb) has attained the age of 19 and is under 65 years of age, is not pregnant, is not entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII, and is not otherwise eligible to enroll under such plan. ``(ii) Specified excluded individual.--For purposes of clause (i), the term `specified excluded individual' means an individual, as determined by the State (in accordance with standards specified by the Secretary)-- ``(I) who is described in subsection (a)(10)(A)(i)(IX); ``(II) who-- ``(aa) is an Indian or an Urban Indian (as such terms are defined in paragraphs (13) and (28) of section 4 of the Indian Health Care Improvement Act); ``(bb) is a California Indian described in section 809(a) of such Act; or ``(cc) has otherwise been determined eligible as an Indian for the Indian Health Service under regulations promulgated by the Secretary; ``(III) who is the parent, guardian, caretaker relative, or family caregiver (as defined in section 2 of the RAISE Family Caregivers Act) of a dependent child 13 years of age and under or a disabled individual; ``(IV) who is a veteran with a disability rated as total under section 1155 of title 38, United States Code; ``(V) who is medically frail or otherwise has special medical needs (as defined by the Secretary), including an individual-- ``(aa) who is blind or disabled (as defined in section 1614); ``(bb) with a substance use disorder; ``(cc) with a disabling mental disorder; ``(dd) with a physical, intellectual or developmental disability that significantly impairs their ability to perform 1 or more activities of daily living; or ``(ee) with a serious or complex medical condition; ``(VI) who-- ``(aa) is in compliance with any requirements imposed by the State pursuant to section 407; or ``(bb) is a member of a household that receives supplemental nutrition assistance program benefits under the Food and Nutrition Act of 2008 and is not exempt from a work requirement under such Act; ``(VII) who is participating in a drug addiction or alcoholic treatment and rehabilitation program (as defined in section 3(h) of the Food and Nutrition Act of 2008); ``(VIII) who is an inmate of a public institution; or ``(IX) who is pregnant or entitled to postpartum medical assistance under paragraph (5) or (16) of subsection (e). ``(B) Educational program.--The term `educational program' includes-- ``(i) an institution of higher education (as defined in section 101 of the Higher Education Act of 1965); and ``(ii) a program of career and technical education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006). ``(C) State.--The term `State' means 1 of the 50 States or the District of Columbia. ``(D) Work program.--The term `work program' has the meaning given such term in section 6(o)(1) of the Food and Nutrition Act of 2008. ``(10) Prohibiting waiver of community engagement requirements.--Notwithstanding section 1115(a), the provisions of this subsection may not be waived. ``(11) Special implementation rule.-- ``(A) In general.--Subject to subparagraph (C), the Secretary may exempt a State from compliance with the requirements of this subsection if-- ``(i) the State submits to the Secretary a request for such exemption, made in such form and at such time as the Secretary may require, and including the information specified in subparagraph (B); and ``(ii) the Secretary determines that based on such request, the State is demonstrating a good faith effort to comply with the requirements of this subsection. ``(B) Good faith effort determination.--In determining whether a State is demonstrating a good faith effort for purposes of subparagraph (A)(ii), the Secretary shall consider-- ``(i) any actions taken by the State toward compliance with the requirements of this subsection; ``(ii) any significant barriers to or challenges in meeting such requirements, including related to funding, design, development, procurement, or installation of necessary systems or resources; ``(iii) the State's detailed plan and timeline for achieving full compliance with such requirements, including any milestones of such plan (as defined by the Secretary); and ``(iv) any other criteria determined appropriate by the Secretary. ``(C) Duration of exemption.-- [[Page S3946]] ``(i) In general.--An exemption granted under subparagraph (A) shall expire not later than December 31, 2028, and may not be renewed beyond such date. ``(ii) Early termination.--The Secretary may terminate an exemption granted under subparagraph (A) prior to the expiration date of such exemption if the Secretary determined that the State has-- ``(I) failed to comply with the reporting requirements described in subparagraph (D); or ``(II) based on the information provided pursuant to subparagraph (D), failed to make continued good faith efforts toward compliance with the requirements of this subsection. ``(D) Reporting requirements.--A State granted an exemption under subparagraph (A) shall submit to the Secretary-- ``(i) quarterly progress reports on the State's status in achieving the milestones toward full compliance described in subparagraph (B)(iii); and ``(ii) information on specific risks or newly identified barriers or challenges to full compliance, including the State's plan to mitigate such risks, barriers, or challenges.''. (b) Conforming Amendment.--Section 1902(a)(10)(A)(i)(VIII) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) is amended by striking ``subject to subsection (k)'' and inserting ``subject to subsections (k) and (xx)''. (c) Prohibiting Conflicts of Interest.--A State shall not use a Medicaid managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D)), or other contractor to determine beneficiary compliance under such section unless the contractor has no direct or indirect financial relationship with any Medicaid managed care entity or other specified entity that is responsible for providing or arranging for coverage of medical assistance for individuals enrolled with the entity pursuant to a contract with such State. (d) Interim Final Rulemaking.--Not later than June 1, 2026, the Secretary of Health and Human Services shall promulgate an interim final rule for purposes of implementing the provisions of, and the amendments made by, this section. Any action taken to implement the provisions of, and the amendments made by, this section shall not be subject to the provisions of section 553 of title 5, United States Code. (e) Development of Government Efficiency Grants to States.-- (1) In general.--In order for States to establish systems necessary to carry out the provisions of, and amendments made by, this section [or other sections of this chapter that pertain to conducting eligibility determinations or redeterminations], the Secretary of Health and Human Services shall-- (A) out of amounts appropriated under paragraph (3)(A), award to each State a grant equal to the amount specified in paragraph (2) for such State; and (B) out of amounts appropriated under paragraph (3)(B), distribute an equal amount among such States. (2) Amount specified.--For purposes of paragraph (1)(A), the amount specified in this paragraph is an amount that bears the same ratio to the amount appropriated under paragraph (3)(A) as the number of applicable individuals (as defined in section 1902(xx) of the Social Security Act, as added by subsection (a)) residing in such State bears to the total number of such individuals residing in all States, as of March 31, 2025. (3) Funding.--There are appropriated, out of any monies in the Treasury not otherwise appropriated-- (A) $100,000,000 for fiscal year 2026 for purposes of awarding grants under paragraph (1)(A), to remain available until expended; and (B) $100,000,000 for fiscal year 2026 for purposes of award grants under paragraph (1)(B), to remain available until expended. (4) Definition.--In this subsection, the term ``State'' means 1 of the 50 States and the District of Columbia. (f) Implementation Funding.--For the purposes of carrying out the provisions of, and the amendments made by, this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services, $50,000,000 for fiscal year 2026, to remain available until expended. SEC. 71122. MODIFYING COST SHARING REQUIREMENTS FOR CERTAIN EXPANSION INDIVIDUALS UNDER THE MEDICAID PROGRAM. (a) In General.--Section 1916 of the Social Security Act (42 U.S.C. 1396o) is amended-- (1) in subsection (a), in the matter preceding paragraph (1), by inserting ``(other than, beginning October 1, 2028, specified individuals (as defined in subsection (k)(3)))'' after ``individuals''; and (2) by adding at the end the following new subsection: ``(k) Special Rules for Certain Expansion Individuals.-- ``(1) Premiums.--Beginning October 1, 2028, the State plan shall provide that in the case of a specified individual (as defined in paragraph (3)) who is eligible under the plan, no enrollment fee, premium, or similar charge will be imposed under the plan. ``(2) Required imposition of cost sharing.-- ``(A) In general.--Subject to subparagraph (B) and subsection (j), in the case of a specified individual, the State plan shall, beginning October 1, 2028, provide for the imposition of such deductions, cost sharing, or similar charges determined appropriate by the State (in an amount greater than $0) with respect to certain care, items, or services furnished to such an individual, as determined by the State. ``(B) Limitations.-- ``(i) Exclusion of certain services.--In no case may a deduction, cost sharing, or similar charge be imposed under the State plan with respect to care, items, or services described in any of subparagraphs (B) through (J) of subsection (a)(2), or any primary care services, mental health care services, substance use disorder services, or services provided by a Federally qualified health center (as defined in 1905(l)(2)), certified community behavioral health clinic (as defined in section 1905(jj)(2)), or rural health clinic (as defined in 1905(l)(1)), furnished to a specified individual. ``(ii) Item and service limitation.-- ``(I) In general.--Except as provided in subclause (II), in no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to care or an item or service furnished to a specified individual exceed $35. ``(II) Special rules for prescription drugs.--In no case may a deduction, cost sharing, or similar charge imposed under the State plan with respect to a prescription drug furnished to a specified individual exceed the limit that would be applicable under paragraph (2)(A)(i) or (2)(B) of section 1916A(c) with respect to such drug and individual if such drug so furnished were subject to cost sharing under such section. ``(iii) Maximum limit on cost sharing.--The total aggregate amount of deductions, cost sharing, or similar charges imposed under the State plan for all individuals in the family may not exceed 5 percent of the family income of the family involved, as applied on a quarterly or monthly basis (as specified by the State). ``(C) Cases of nonpayment.--Notwithstanding subsection (e), a State may permit a provider participating under the State plan to require, as a condition for the provision of care, items, or services to a specified individual entitled to medical assistance under this title for such care, items, or services, the payment of any deductions, cost sharing, or similar charges authorized to be imposed with respect to such care, items, or services. Nothing in this subparagraph shall be construed as preventing a provider from reducing or waiving the application of such deductions, cost sharing, or similar charges on a case-by-case basis. ``(3) Specified individual defined.--For purposes of this subsection, the term `specified individual' means an individual who has a family income (as determined in accordance with section 1902(e)(14)) that exceeds the poverty line (as defined in section 2110(c)(5)) applicable to a family of the size involved and-- ``(A) is enrolled under section 1902(a)(10)(A)(i)(VIII); or ``(B) is described in such subsection and otherwise enrolled under a waiver of the State plan that provides coverage that is equivalent to minimum essential coverage (as described in section 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with standards prescribed by the Secretary in regulations) to all individuals described in section 1902(a)(10)(A)(i)(VIII). ``(4) State defined.--For purposes of this subsection, the term `State' means 1 of the 50 States or the District of Columbia.''. (b) Conforming Amendments.-- (1) Required application.--Section 1902(a)(14) of the Social Security Act (42 U.S.C. 1396a(a)(14)) is amended by inserting ``and provide for imposition of such deductions, cost sharing, or similar charges for care, items, or services furnished to specified individuals (as defined in paragraph (3) of section 1916(k)) in accordance with paragraph (2) of such section'' after ``section 1916''. (2) Nonapplicability of alternative cost sharing.--Section 1916A(a)(1) of the Social Security Act (42 U.S.C. 1396o- 1(a)(1)) is amended, in the second sentence, by striking ``or (j)'' and inserting ``(j), or (k)''. Subchapter E--Expanding Access to Care SEC. 71123. MAKING CERTAIN ADJUSTMENTS TO COVERAGE OF HOME OR COMMUNITY-BASED SERVICES UNDER MEDICAID. (a) Expanding HCBS Coverage Under Section 1915(c) Waivers.--Section 1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) is amended-- (1) in paragraph (3), by inserting ``paragraph (11) or'' before ``subsection (h)(2)''; and (2) by adding at the end the following new paragraph: ``(11) Expanding Coverage for Home or Community-based Services.-- ``(A) In general.--Beginning July 1, 2028, notwithstanding paragraph (1), the Secretary may approve a waiver that is standalone from any other waiver approved under this subsection to include as medical assistance under the State plan of such State payment for part or all of the cost of home or community-based services (other than room and board (as described in paragraph (1))) approved by the Secretary which are provided pursuant to a written plan of care to individuals described in subparagraph (B)(iii). A waiver approved under this paragraph shall be for an initial term of 3 years and, upon the request of the State, shall be extended for additional 5-year periods unless the Secretary determines that for the previous waiver period the requirements specified [[Page S3947]] under this subsection (excluding those excepted under subparagraph (B)) have not been met. ``(B) State requirements.--In addition to the requirements specified under this subsection (except for the requirements described in subparagraphs (C) and (D) of paragraph (2) and any other requirement specified under this subsection that the Secretary determines to be inapplicable in the context of a waiver that does not require individuals to have a determination described in paragraph (1)), a State shall meet the following requirements as a condition of waiver approval: ``(i) As of the date that such State requests a waiver under this subsection to provide home or community-based services to individuals described in clause (iii), all other waivers (if any) granted under this subsection to such State meet the requirements of this subsection. ``(ii) The State demonstrates to the Secretary that approval of a waiver under this subsection with respect to individuals described in clause (iii) will not result in a material increase of the average amount of time that individuals with respect to whom a determination described in paragraph (1) has been made will need to wait to receive home or community-based services under any other waiver granted under this subsection, as determined by the Secretary. ``(iii) The State establishes needs-based criteria, subject to the approval of the Secretary, regarding who will be eligible for home or community-based services under a waiver approved under this paragraph without requiring such individual to have a determination described in paragraph (1), and specifies the home or community-based services such individuals so eligible will receive. ``(iv) The State establishes needs-based criteria for determining whether an individual described in clause (iii) requires the level of care provided in a hospital, nursing facility, or an intermediate care facility for individuals with developmental disabilities under the State plan or under any waiver of such plan that are more stringent than the needs-based criteria established under clause (iii) for determining eligibility for home or community-based services. ``(v) The State attests that the State's average per capita expenditure for medical assistance under the State plan (or waiver of such plan) provided with respect to such individuals enrolled in a waiver under this paragraph will not exceed the State's average per capita expenditure for medical assistance for individuals receiving institutional care under the State plan (or waiver of such plan) for the duration that the waiver under this paragraph is in effect. ``(vi) The State provides to the Secretary data (in such form and manner as the Secretary may specify) regarding the number of individuals described in clause (iii) with respect to a State seeking approval of a waiver under this subsection, to whom the State will make such services available under such waiver. ``(vii) The State agrees to provide to the Secretary, not less frequently than annually, data for purposes of paragraph (2)(E) (in such form and manner as the Secretary may specify) regarding, with respect to each preceding year in which a waiver under this subsection to provide home or community- based services to individuals described in clause (iii) was in effect-- ``(I) the cost (as such term is defined by the Secretary) of such services furnished to individuals described in clause (iii), broken down by type of service; ``(II) with respect to each type of home or community-based service provided under the waiver, the length of time that such individuals have received such service; ``(III) a comparison between the data described in subclause (I) and any comparable data available with respect to individuals with respect to whom a determination described in paragraph (1) has been made and with respect to individuals receiving institutional care under this title; and ``(IV) the number of individuals who have received home or community-based services under the waiver during the preceding year. ``(C) Limitation on payments.--No payments made to carry out this paragraph shall be used to make payments to a third party on behalf of an individual practitioner for benefits such as health insurance, skills training, and other benefits customary for employees, in the case of a class of practitioners for which the program established under this title is the primary source of revenue.''. (b) Implementation Funding.-- (1) In general.--There are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Secretary of Health and Human Services-- (A) for fiscal year 2026, $50,000,000 for purposes of carrying out the provisions of, and the amendments made by, this section, to remain available until expended; and (B) for fiscal year 2027, $100,000,000 for purposes of making payments to States, subject to paragraph (2), to support State systems to deliver home or community-based services under section1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) (as amended by this section), to remain available until expended. (2) Payments based on state hcbs eligible population.-- Payments to States from amounts made available by paragraph (1)(B) shall be made, with respect to a State, on the basis of the proportion of the population of the State that is eligible for home or community-based services under section1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) (as amended by this section), as compared to all States. SEC. 71124. DETERMINATION OF FMAP FOR HIGH-POVERTY STATES. Section 1905(b) of the Social Security Act (42 U.S.C. 1396d) is amended in the first sentence-- (1) by striking ``and (6)'' and inserting ``(6)''; and (2) by inserting before the period the following: ``, and (7) only for purposes of payments for medical assistance under this title (excluding any such payments that are based on the enhanced FMAP described in section 2105(b)), in the case of a State for which the Secretary issues under the authority of section 673(2) of the Omnibus Budget Reconciliation Act of 1981 a separate poverty guideline for any calendar year occurring during or after the date of enactment of this clause that is higher than the poverty guideline issued by the Secretary for such calendar year that is applicable to the majority of States, the regular Federal medical assistance percentage determined for such a State under this subsection (without regard to any adjustments to such percentage) for the 1st fiscal year quarter that begins after such date of enactment, and for each fiscal year quarter beginning thereafter, shall be increased (after such determination but prior to any other increase which may be applicable and in no case to exceed 100 percent) by, in the case of the State with the highest separate poverty guideline for the calendar year, 25 percent of the average regular Federal medical assistance percentage determined (without regard to any adjustments to such percentage) for the fiscal year for States which did not have a separate poverty guideline issued for them for such calendar year, and in the case of the State with the second highest separate poverty guideline for the calendar year, 15 percent of the average regular Federal medical assistance percentage determined (without regard to any adjustments to such percentage) for the fiscal year for States which did not have a separate poverty guideline issued for them for such calendar year''. CHAPTER 2--MEDICARE Subchapter A--Strengthening Eligibility Requirements SEC. 71201. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVIDUALS. Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is amended by adding at the end the following new section: ``SEC. 1899C. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVIDUALS. ``(a) In General.--Subject to subsection (b), an individual may be entitled to, or enrolled for, benefits under this title only if the individual is-- ``(1) a citizen or national of the United States; ``(2) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act; ``(3) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(4) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. ``(b) Application to Individuals Currently Entitled to or Enrolled for Benefits.-- ``(1) In general.--In the case of an individual who is entitled to, or enrolled for, benefits under this title as of the date of the enactment of this section, subsection (a) shall apply beginning on the date that is 18 months after such date of enactment. ``(2) Review by commissioner of social security.-- ``(A) In general.--Not later than 1 year after the date of the enactment of this section, the Commissioner of Social Security shall complete a review of individuals entitled to, or enrolled for, benefits under this title as of such date of enactment for purposes of identifying individuals not described in any of paragraphs (1) through (4) of subsection (a). ``(B) Notice.--The Commissioner of Social Security shall notify each individual identified under the review conducted under subparagraph (A) that such individual's entitlement to, or enrollment for, benefits under this title will be terminated as of the date that is 18 months after the date of the enactment of this section. Such notification shall be made as soon as practicable after such identification and in a manner designed to ensure such individual's comprehension of such notification.''. Subchapter B--Improving Services for Seniors SEC. 71202. TEMPORARY PAYMENT INCREASE UNDER THE MEDICARE PHYSICIAN FEE SCHEDULE TO ACCOUNT FOR EXCEPTIONAL CIRCUMSTANCES. (a) In General.--Section 1848(t)(1) of the Social Security Act (42 U.S.C. 1395w-4(t)(1)) is amended-- (1) in the matter preceding subparagraph (A), by striking ``and 2024'' and inserting ``2024, and 2026''; (2) in subparagraph (D), by striking ``and'' at the end; (3) in subparagraph (E), by striking the period at the end and inserting ``; and''; and (4) by adding at the end the following new subparagraph: [[Page S3948]] ``(F) such services furnished on or after January 1, 2026, and before January 1, 2027, by 2.5 percent.''. (b) Conforming Amendment.--Section 1848(c)(2)(B)(iv)(V) of the Social Security Act (42 U.S.C. 1395w-4(c)(2)(B)(iv)(V)) is amended by striking ``or 2024'' and inserting ``2024, or 2026''. SEC. 71203. EXPANDING AND CLARIFYING THE EXCLUSION FOR ORPHAN DRUGS UNDER THE DRUG PRICE NEGOTIATION PROGRAM. (a) In General.--Section 1192(e) of the Social Security Act (42 U.S.C. 1320f-1(e)) is amended-- (1) in paragraph (1), in the matter preceding subparagraph (A), by striking ``and (3)'' and inserting ``through (4)''; (2) in paragraph (3)(A)-- (A) by striking ``only one rare disease or condition'' and inserting ``one or more rare diseases or conditions''; and (B) by striking ``such disease or condition'' and inserting ``one or more such rare diseases or conditions (as such term is defined in section 526(a)(2) of the Federal Food, Drug, and Cosmetic Act)''; and (3) by adding at the end the following new paragraph: ``(4) Treatment of former orphan drugs.--In the case of a drug or biological product that, as of the date of the approval or licensure of such drug or biological product, is a drug or biological product described in paragraph (3)(A), paragraph (1)(A)(ii) or (1)(B)(ii) (as applicable) shall apply as if the reference to `the date of such approval' or `the date of such licensure', respectively, were instead a reference to `the first day after the date of such approval for which such drug is not a drug described in paragraph (3)(A)' or `the first day after the date of such licensure for which such biological product is not a biological product described in paragraph (3)(A)', respectively.''. (b) Application.--The amendments made by subsection (a) shall apply with respect to initial price applicability years (as defined in section 1191(b) of the Social Security Act (42 U.S.C. 1320f(b))) beginning on or after January 1, 2028. SEC. 71204. APPLICATION OF COST-OF-LIVING ADJUSTMENT TO NON- LABOR RELATED PORTION FOR HOSPITAL OUTPATIENT DEPARTMENT SERVICES FURNISHED IN ALASKA AND HAWAII. Section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)) is amended by adding at the end the following new paragraph: ``(23) Application of cost-of-living adjustment to non- labor related portion for hospital outpatient department services furnished in alaska and hawaii.-- ``(A) In general.--With respect to OPD services furnished on or after January 1, 2027, the Secretary shall provide for adjustments to the payment amounts under this subsection for such services in the same manner that is provided under section 1886(d)(5)(H) with respect to the application of the cost-of-living adjustment to the non-labor related portion of such payment amounts to take into account the unique circumstances of hospitals located in Alaska or Hawaii. Such adjustment shall not apply to payment amounts for a separately payable drug, biological, or medical device. ``(B) Application without regard to budget neutrality.-- Adjustments to payment amounts made under this paragraph-- ``(i) shall not be considered an adjustment under paragraph (2)(E); and ``(ii) shall not be implemented in a budget neutral manner.''. CHAPTER 3--HEALTH TAX Subchapter A--Improving Eligibility Criteria SEC. 71301. PERMITTING PREMIUM TAX CREDIT ONLY FOR CERTAIN INDIVIDUALS. (a) In General.--Section 36B(e)(1) is amended by inserting ``or, in the case of aliens who are lawfully present, are not eligible aliens'' after ``individuals who are not lawfully present''. (b) Eligible Aliens.--Section 36B(e)(2) is amended-- (1) by striking ``For purposes of this section, an individual'' and inserting ``For purposes of this section-- ``(A) In general.--An individual'', and (2) by adding at the end the following new subparagraph: ``(B) Eligible aliens.--An individual who is an alien and lawfully present shall be treated as an eligible alien if such individual is, and is reasonably expected to be for the entire period of enrollment for which the credit under this section is being claimed-- ``(i) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), ``(ii) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(iii) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G)).''. (c) Conforming Amendments.-- (1) Verification of information.--Section 1411 of the Patient Protection and Affordable Care Act (42 U.S.C. 18081) is amended-- (A) in subsection (a)-- (i) in paragraph (1), by striking ``and section 36B(e) of the Internal Revenue Code of 1986''; and (ii) in paragraph (2)-- (I) in subparagraph (A), by striking ``and'' at the end; (II) in subparagraph (B), by adding ``and'' at the end; and (III) by adding at the end the following new subparagraph: ``(C) in the case such individual is an alien lawfully present in the United States, whether such individual is an eligible alien (within the meaning of section 36B(e)(2) of such Code);''; (B) in subsection (b)(3), by adding at the end the following new subparagraph: ``(D) Immigration status.--In the case the individual's eligibility is based on an attestation of the enrollee's immigration status, an attestation that such individual is an eligible alien (within the meaning of 36B(e)(2) of the Internal Revenue Code of 1986).''; and (C) in subsection (c)(2)(B)(ii), by adding at the end the following new subclause: ``(III) In the case of an individual described in clause (i)(I) with respect to whom a premium tax credit under section 36B of the Internal Revenue Code of 1986 is being claimed, the attestation that the individual is an eligible alien (within the meaning of section 36B(e)(2) of such Code).''. (2) Advance determinations.--Section 1412(d) of the Patient Protection and Affordable Care Act (42 U.S.C. 18082(d)) is amended by inserting before the period at the end the following: ``, or credits under section 36B of the Internal Revenue Code of 1986 for aliens who are not eligible aliens (within the meaning of section 36B(e)(2) of such Code)''. (3) Effective date.--The amendments made by this subsection shall apply with respect to plan years beginning on or after January 1, 2027. (d) Clerical Amendments.-- (1) The heading for section 36B(e) is amended by inserting ``and Not Eligible Aliens'' after ``Individuals Not Lawfully Present''. (2) The heading for section 36B(e)(2) is amended by inserting ``; eligible aliens'' after ``lawfully present''. (e) Requirement to Maintain Minimum Essential Coverage.-- Section 5000A(d)(3) is amended by striking ``an alien lawfully present in the United States'' and inserting ``an eligible alien (within the meaning of section 36B(e)(2))''. (f) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (g) Effective Date.--The amendments made by this section (other than the amendments made by subsection (c)) shall apply to taxable years beginning after December 31, 2026. SEC. 71302. DISALLOWING PREMIUM TAX CREDIT DURING PERIODS OF MEDICAID INELIGIBILITY DUE TO ALIEN STATUS. (a) In General.--Section 36B(c)(1) is amended by striking subparagraph (B). (b) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. Subchapter B--Preventing Waste, Fraud, and Abuse SEC. 71303. REQUIRING VERIFICATION OF ELIGIBILITY FOR PREMIUM TAX CREDIT. (a) In General.--Section 36B(c) is amended by adding at the end the following new paragraphs: ``(5) Exchange enrollment verification requirement.-- ``(A) In general.--The term `coverage month' shall not include, with respect to any individual covered by a qualified health plan enrolled in through an Exchange, any month beginning before the Exchange verifies, using applicable enrollment information that shall be provided or verified by the applicant, such individual's eligibility-- ``(i) to enroll in the plan through the Exchange, and ``(ii) for any advance payment under section 1412 of the Patient Protection and Affordable Care Act of the credit allowed under this section. ``(B) Applicable enrollment information.--For purposes of subparagraph (A), applicable enrollment information shall include affirmation of at least the following information (to the extent relevant in determining eligibility described in subparagraph (A)): ``(i) Household income and family size. ``(ii) Whether the individual is an eligible alien. ``(iii) Any health coverage status or eligibility for coverage. ``(iv) Place of residence. ``(v) Such other information as may be determined by the Secretary (in consultation with the Secretary of Health and Human Services) as necessary to the verification prescribed under subparagraph (A). ``(C) Verification of past months.--In the case of a month that begins before verification prescribed by subparagraph (A), such month shall be treated as a coverage month if, and only if, the Exchange verifies for such month (using applicable enrollment information that shall be provided or verified by the applicant) such individual's eligibility to have so enrolled and for any such advance payment. [[Page S3949]] ``(D) Exchange participation; coordination with other procedures for determining eligibility.--An individual shall not, solely by reason of failing to meet the requirements of this paragraph with respect to a month, be treated for such month as ineligible to enroll in a qualified health plan through an Exchange. ``(E) Waiver for certain special enrollment periods.--The Secretary may waive the application of subparagraph (A) in the case of an individual who enrolls in a qualified health plan through an Exchange for 1 or more months of the taxable year during a special enrollment period provided by the Exchange on the basis of a change in the family size of the individual. ``(F) Information and reliance on third-party sources.--An Exchange shall be permitted to use any data available to the Exchange and any reliable third-party sources in collecting information for verification by the applicant. ``(6) Exchange compliance with filing requirements.--The term `coverage month' shall not include, with respect to any individual covered by a qualified health plan enrolled in through an Exchange, any month for which the Exchange does not meet the requirements of section 155.305(f)(4)(iii) of title 45, Code of Federal Regulations (as published in the Federal Register on June 25, 2025 (90 FR 27074), applied as though it applied to all plan years after 2025), with respect to the individual.''. (b) Pre-enrollment Verification Process Required.--Section 36B(c)(3)(A) is amended-- (1) by striking ``health plan.--The term'' and inserting ``health plan.-- `` ``(i) In general.--The term'', and (2) by adding at the end the following new clause: ``(ii) Pre-enrollment verification process required.--Such term shall not include any plan enrolled in through an Exchange, unless such Exchange provides a process for pre- enrollment verification through which any applicant may, beginning not later than August 1, verify with the Exchange the applicant's household income and eligibility for enrollment in such plan for plan years beginning in the subsequent year.''. (c) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2027. SEC. 71304. DISALLOWING PREMIUM TAX CREDIT IN CASE OF CERTAIN COVERAGE ENROLLED IN DURING SPECIAL ENROLLMENT PERIOD. (a) In General.--Section 36B(c)(3)(A), as amended by the preceding provisions of this Act, is amended by adding at the end the following new clause: ``(iii) Exception in case of certain special enrollment periods.--Such term shall not include any plan enrolled in during a special enrollment period provided for by an Exchange-- ``(I) on the basis of the relationship of the individual's expected household income to such a percentage of the poverty line (or such other amount) as is prescribed by the Secretary of Health and Human Services for purposes of such period, and ``(II) not in connection with the occurrence of an event or change in circumstances specified by the Secretary of Health and Human Services for such purposes.''. (b) Regulations.--The Secretary of the Treasury and the Secretary of Health and Human Services may each prescribe such rules and other guidance as may be necessary or appropriate to carry out the amendments made by this section. (c) Effective Date.--The amendments made by this section shall apply with respect to plan years beginning after December 31, 2025. SEC. 71305. ELIMINATING LIMITATION ON RECAPTURE OF ADVANCE PAYMENT OF PREMIUM TAX CREDIT. (a) In General.--Section 36B(f)(2) is amended by striking subparagraph (B). (b) Conforming Amendments.-- (1) Section 36B(f)(2) is amended by striking ``advance payments.--'' and all that follows through ``If the advance payments'' and inserting the following: ``advance payments.-- If the advance payments''. (2) Section 35(g)(12)(B)(ii) is amended by striking ``then section 36B(f)(2)(B) shall be applied by substituting the amount determined under clause (i) for the amount determined under section 36B(f)(2)(A)'' and inserting ``then the amount determined under clause (i) shall be substituted for the amount determined under section 36B(f)(2)''. (c) Special Rule for Certain Individuals Treated as Applicable Taxpayers.--Paragraph (1) of section 36B(c) is amended by adding at the end the following new subparagraph: ``(E) Special rule for certain individuals treated as applicable taxpayers.--In the case of a taxable year beginning after December 31, 2025, if an individual-- ``(i) is determined by an Exchange at the time of enrollment in a qualified health plan through such Exchange to have a projected annual household income for the taxable year which equals or exceeds 100 percent of an amount equal to the poverty line for a family of the size involved, and ``(ii) receives an advance payment of the credit under this section for 1 or more months during such taxable year under section 1412 of the Patient Protection and Affordable Care Act, such individual shall not fail to be treated as an applicable taxpayer for such taxable year solely because the actual household income of the individual for the taxable year is less than 100 percent of an amount equal to the poverty line for a family of the size involved, unless the Secretary determines that the individual provided incorrect information to the Exchange with intentional or reckless disregard for the facts.''. (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. Subchapter C--Enhancing Choice for Patients SEC. 71306. PERMANENT EXTENSION OF SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR TELEHEALTH SERVICES. (a) In General.--Subparagraph (E) of section 223(c)(2) is amended to read as follows: ``(E) Safe harbor for absence of deductible for telehealth.--A plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for telehealth and other remote care services.''. (b) Certain Coverage Disregarded.--Clause (ii) of section 223(c)(1)(B) is amended by striking ``(in the case of months or plan years to which paragraph (2)(E) applies)''. (c) Effective Date.--The amendments made by this section shall apply to plan years beginning after December 31, 2024. SEC. 71307. ALLOWANCE OF BRONZE AND CATASTROPHIC PLANS IN CONNECTION WITH HEALTH SAVINGS ACCOUNTS. (a) In General.--Section 223(c)(2) is amended by adding at the end the following new subparagraph: ``(H) Bronze and catastrophic plans treated as high deductible health plans.--The term `high deductible health plan' shall include any plan which is-- ``(i) available as individual coverage through an Exchange established under section 1311 or 1321 of the Patient Protection and Affordable Care Act, and ``(ii) described in subsection (d)(1)(A) or (e) of section 1302 of such Act.''. (b) Effective Date.--The amendment made by this section shall apply to months beginning after December 31, 2025. SEC. 71308. TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENTS. (a) In General.--Section 223(c)(1) is amended by adding at the end the following new subparagraph: ``(E) Treatment of direct primary care service arrangements.-- ``(i) In general.--A direct primary care service arrangement shall not be treated as a health plan for purposes of subparagraph (A)(ii). ``(ii) Direct primary care service arrangement.--For purposes of this subparagraph-- ``(I) In general.--The term `direct primary care service arrangement' means, with respect to any individual, an arrangement under which such individual is provided medical care (as defined in section 213(d)) consisting solely of primary care services provided by primary care practitioners (as defined in section 1833(x)(2)(A) of the Social Security Act, determined without regard to clause (ii) thereof), if the sole compensation for such care is a fixed periodic fee. ``(II) Limitation.--With respect to any individual for any month, such term shall not include any arrangement if the aggregate fees for all direct primary care service arrangements (determined without regard to this subclause) with respect to such individual for such month exceed $150 (twice such dollar amount in the case of an individual with any direct primary care service arrangement (as so determined) that covers more than one individual). ``(iii) Certain services specifically excluded from treatment as primary care services.--For purposes of this subparagraph, the term `primary care services' shall not include-- ``(I) procedures that require the use of general anesthesia, ``(II) prescription drugs (other than vaccines), and ``(III) laboratory services not typically administered in an ambulatory primary care setting. The Secretary, after consultation with the Secretary of Health and Human Services, shall issue regulations or other guidance regarding the application of this clause.''. (b) Direct Primary Care Service Arrangement Fees Treated as Medical Expenses.--Section 223(d)(2)(C) is amended by striking ``or'' at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ``, or'', and by adding at the end the following new clause: ``(v) any direct primary care service arrangement.''. (c) Inflation Adjustment.--Section 223(g)(1) is amended-- (1) by striking ``in subsections (b)(2) and (c)(2)(A)'' and inserting ``in subsections (b)(2), (c)(2)(A), and in the case of taxable years beginning after 2026, (c)(1)(E)(ii)(II)'', (2) in subparagraph (B), by striking ``clause (ii)'' in clause (i) and inserting ``clauses (ii) and (iii)'', by striking ``and'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``, and'', and by inserting after clause (ii) the following new clause: ``(iii) in the case of the dollar amount in subsection (c)(1)(E)(ii)(II), `calendar year 2025'.'', and [[Page S3950]] (3) by inserting ``, (c)(1)(E)(ii)(II),'' after ``(b)(2)'' in the last sentence. (d) Effective Date.--The amendments made by this section shall apply to months beginning after December 31, 2025. CHAPTER 4--PROTECTING RURAL HOSPITALS AND PROVIDERS SEC. 71401. RURAL HEALTH TRANSFORMATION PROGRAM. (a) In General.--Section 2105 of the Social Security Act (42 U.S.C. 1397ee) is amended by adding at the end the following new subsection: ``(h) Rural Health Transformation Program.-- ``(1) Appropriation.-- ``(A) In general.--There are appropriated, out of any money in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services (in this subsection referred to as the `Administrator'), to provide allotments to States for purposes of carrying out the activities described in paragraph (6)-- ``(i) $10,000,000,000 for fiscal year 2028; ``(ii) $10,000,000,000 for fiscal year 2029; ``(iii) $2,000,000,000 for fiscal year 2030; ``(iv) $2,000,000,000 for fiscal year 2031; and ``(v) $1,000,000,000 for fiscal year 2032. ``(B) Unexpended or unobligated funds.-- ``(i) In general.--Any amounts appropriated under subparagraph (A) that are unexpended or unobligated as of October 1, 2034, shall be returned to the Treasury of the United States. ``(ii) Redistribution of unexpended or unobligated funds.-- In carrying out subparagraph (A), the Administrator shall, not later than March 31, 2030, and annually thereafter through March 31, 2034-- ``(I) determine the amount of funds, if any, that are available under such subparagraph for a previous fiscal year, are unexpended or unobligated with respect to such fiscal year, and will not be available to a State in the current fiscal year, pursuant to clause (iii); and ``(II) if the Administrator determines that any such funds from a previous fiscal year remain, redistribute such funds in the current fiscal year to States that have an application approved under this subsection for such fiscal year in accordance with an allotment methodology specified by the Administrator. ``(iii) Availability of funds.-- ``(I) In general.--Amounts allotted to a State under this subsection for a year shall be available for expenditure by the State through the end of the fiscal year following the fiscal year in which such amounts are allotted. ``(II) Availability of amounts redistributed.--Amounts redistributed to a State under clause (ii) with respect to a fiscal year shall be available for expenditure by the State through the end of the fiscal year following the fiscal year in which such amounts are redistributed (except in the case of amounts redistributed in fiscal year 2034 which shall only be available for expenditure through September 30, 2034). ``(iv) Misuse of funds.--If the Administrator determines that a State is not using amounts allotted or redistributed to the State under this subsection in a manner consistent with the description provided by the State in its application approved under paragraph (2), the Administrator may withhold payments to, or reduce payments to, or recover previous payments from, the State under this subsection as the Administrator deems appropriate, and any amounts so withheld, or that remain after any such reduction, or so recovered, shall be returned to the Treasury of the United States. ``(2) Application.-- ``(A) In general.--To be eligible for an allotment under this subsection, a State shall submit to the Administrator during an application submission period to be specified by the Administrator (but that ends not later than April 1, 2027) an application in such form and manner as the Administrator may specify, that includes-- ``(i) a detailed rural health transformation plan, developed in consultation with the State Office of Rural Health-- ``(I) to improve access to hospitals, other health care providers, and health care items and services furnished to rural residents of the State; ``(II) to improve health care outcomes of rural residents of the State; ``(III) to prioritize the use of new and emerging technologies that emphasize prevention and chronic disease management; ``(IV) to initiate, foster, and strengthen local and regional strategic partnerships between rural hospitals and other health care providers in order to promote measurable quality improvement, increase financial stability, maximize economies of scale, and share best practices in care delivery; ``(V) to enhance economic opportunity for, and the supply of, health care clinicians through enhanced recruitment and training; ``(VI) to prioritize data and technology driven solutions that help rural hospitals and other rural health care providers furnish high-quality health care services as close to a patient's home as is possible; ``(VII) that outlines strategies to manage long-term financial solvency and operating models of rural hospitals in the State; and ``(VIII) that identifies specific causes driving the accelerating rate of stand-alone rural hospitals becoming at risk of closure, conversion, or service reduction; ``(ii) a certification that none of the amounts provided under this subsection shall be used by the State for an expenditure that is attributable to an intergovernmental transfer, certified public expenditure, or any other expenditure to finance the non-Federal share of expenditures required under any provision of law, including under the State plan established under this title, the State plan established under title XIX, or under a waiver of such plans; and ``(iii) such other information as the Administrator may require. ``(B) Deadline for approval.--Not later than September 30, 2027, the Administrator shall approve or deny all applications submitted for an allotment under this subsection. ``(C) One-time application.--If an application of a State for an allotment under this subsection is approved by the Administrator, the State shall be eligible for an allotment under this subsection for each of fiscal years 2028 through 2032, except as provided in paragraph (1)(B)(iv). ``(D) Eligibility.--Only the 50 States shall be eligible for an allotment under this subsection and all references in this subsection to a State shall be treated as only referring to the 50 States. ``(3) Allotments.-- ``(A) In general.--For each of fiscal years 2028 through 2032, the Administrator shall determine under subparagraph (B) the amount of the allotment for such fiscal year for each State with an approved application under this subsection. ``(B) Amount determined.--From the amounts appropriated under paragraph (1)(A) for each of fiscal years 2028 through 2032, the Administrator shall allot-- ``(i) 50 percent of the amounts appropriated for each such fiscal year equally among all States with an approved application under this subsection; and ``(ii) 50 percent of the amounts appropriated for each such fiscal year among all such States in an amount to be determined by the Administrator in accordance with subparagraph (C). ``(C) Considerations.--In determining the amount to be allotted to a State under subparagraph (B)(ii) for a fiscal year, the Administrator shall consider the following: ``(i) The percentage of the State population that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(ii) The proportion of rural health facilities (as defined in subparagraph (D)) in the State relative to the number of rural health facilities nationwide. ``(iii) The situation of hospitals in the State, as described in section 1902(a)(13)(A)(iv). ``(iv) Any other factors that the Administrator determines appropriate. ``(D) Rural health facility defined.--For the purposes of subparagraph (C)(ii), the term `rural health facility' means the following: ``(i) A subsection (d) hospital (as defined in paragraph (1)(B) of section 1886(d)) that-- ``(I) is located in a rural area (as defined in paragraph (2)(D) of such section); ``(II) is treated as being located in a rural area pursuant to paragraph (8)(E) of such section; or ``(III) is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(ii) A critical access hospital (as defined in section 1861(mm)(1)). ``(iii) A sole community hospital (as defined in section 1886(d)(5)(D)(iii)). ``(iv) A Medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv)). ``(v) A low-volume hospital (as defined in section 1886(d)(12)(C)). ``(vi) A rural emergency hospital (as defined in section 1861(kkk)(2)). ``(vii) A rural health clinic (as defined in section 1861(aa)(2)). ``(viii) A Federally qualified health center (as defined in section 1861(aa)(4)). ``(ix) A community mental health center (as defined in section 1861(ff)(3)(B)). ``(x) A health center that is receiving a grant under section 330 of the Public Health Service Act. ``(xi) An opioid treatment program (as defined in section 1861(jjj)(2)) that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(xii) A certified community behavioral health clinic (as defined in section 1905(jj)(2)) that is located in a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)). ``(4) No matching payment.--A State approved for an allotment under this subsection for a fiscal year shall not be required to provide any matching funds as a condition for receiving payments from the allotment. ``(5) Terms and conditions.--The Administrator shall specify such terms and conditions for allotments to States provided under this subsection as the Administrator deems appropriate, including the following: [[Page S3951]] ``(A) Each State shall submit to the Administrator (at a time, and in a form and manner, specified by the Administrator)-- ``(i) a plan for the State to use its allotment to carry out 3 or more of the activities described in paragraph (6); and ``(ii) annual reports on the use of allotments, including such additional information as the Administrator determines appropriate. ``(B) Not more than 10 percent of the amount allotted to a State for a fiscal year may be used by the State for administrative expenses. ``(C) In the event that a State uses amounts from an allotment to provide payments to health care providers in accordance with subparagraph (B) or (J) of paragraph (6), the State shall ensure that such amounts are not used to reimburse any expense or loss that-- ``(i) has been reimbursed from any other source; or ``(ii) any other source is obligated to reimburse. ``(6) Use of funds.--Amounts allotted to a State under this subsection shall be used for 3 or more of the following health-related activities: ``(A) Promoting evidence-based, measurable interventions to improve prevention and chronic disease management. ``(B) Providing payments to health care providers, as defined by the Administrator, for the provision of health care items or services, as specified by the Administrator. ``(C) Promoting consumer-facing, technology-driven solutions for the prevention and management of chronic diseases. ``(D) Providing training and technical assistance for the development and adoption of technology-enabled solutions that improve care delivery in rural hospitals, including remote monitoring, robotics, artificial intelligence, and other advanced technologies. ``(E) Recruiting and retaining clinical workforce talent to rural areas, with commitments to serve rural communities for a minimum of 5 years. ``(F) Providing technical assistance, software, and hardware for significant information technology advances designed to improve efficiency, enhance cybersecurity capability development, and improve patient health outcomes. ``(G) Assisting rural communities to right size their health care delivery systems by identifying needed preventative, ambulatory, pre-hospital, emergency, acute inpatient care, outpatient care, and post-acute care service lines. ``(H) Supporting access to opioid use disorder treatment services (as defined in section 1861(jjj)(1)), other substance use disorder treatment services, and mental health services. ``(I) Developing projects that support innovative models of care that include value-based care arrangements and alternative payment models, as appropriate. ``(J) Additional uses designed to promote sustainable access to high quality rural health care services, as determined by the Administrator. ``(7) Exemptions.--Paragraphs (2), (3), (5), (6), (8), (10), (11), and (12) of subsection (c) do not apply to payments under this subsection. ``(8) Review.--There shall be no administrative or judicial review under section 1116 or otherwise of amounts allotted or redistributed to States under this subsection, payments to States withheld or reduced under this subsection, or previous payments recovered from States under this subsection.''. (b) Conforming Amendments.--Title XXI of the Social Security Act (42 U.S.C. 1397aa) is amended-- (1) in section 2101-- (A) in subsection (a), in the matter preceding paragraph (1), by striking ``The purpose'' and inserting ``Except with respect to the rural health transformation program established in section 2105(h), the purpose''; and (B) in subsection (b), in the matter preceding paragraph (1), by inserting ``subsection (a) or (g) of'' before ``section 2105''; (2) in section 2105(c)(1), by striking ``and may not include'' and inserting ``or to carry out the rural health transformation program established in subsection (h) and, except in the case of amounts made available under subsection (h), may not include''; and (3) in section 2106(a)(1), by inserting ``subsection (a) or (g) of'' before ``section 2105''. (c) Implementation.--The Administrator of the Centers for Medicare & Medicaid Services shall implement this section, including the amendments made by this section, by program instruction or other forms of program guidance. TITLE VIII--COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS Subtitle A--Exemption of Certain Assets SEC. 80001. EXEMPTION OF CERTAIN ASSETS. (a) Exemption of Certain Assets.--Section 480(f)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended-- (1) by striking ``net value of the'' and inserting the following: ``net value of-- ``(A) the''; (2) by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following: ``(B) a family farm on which the family resides; ``(C) a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family; or ``(D) a commercial fishing business and related expenses, including fishing vessels and permits owned and controlled by the family.''. (b) Effective Date and Application.--The amendments made by subsection (a) shall take effect on July 1, 2026, and shall apply with respect to award year 2026-2027 and each subsequent award year, as determined under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). Subtitle B--Loan Limits SEC. 81001. ESTABLISHMENT OF LOAN LIMITS FOR GRADUATE AND PROFESSIONAL STUDENTS AND PARENT BORROWERS; TERMINATION OF GRADUATE AND PROFESSIONAL PLUS LOANS. Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is amended-- (1) in paragraph (3)-- (A) in the paragraph heading, by inserting ``and federal direct plus loans'' after ``loans''; (B) by striking subparagraph (A) and inserting the following: ``(A) Termination of authority to make interest subsidized loans to graduate and professional students.--Subject to subparagraph (B), and notwithstanding any provision of this part or part B-- ``(i) for any period of instruction beginning on or after July 1, 2012, a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part; and ``(ii) for any period of instruction beginning on July 1, 2012, and ending on June 30, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the maximum annual amount for such student determined under section 428H, plus an amount equal to the amount of Federal Direct Stafford loans the student would have received in the absence of this subparagraph.''; and (C) by adding at the end the following: ``(C) Termination of authority to make federal direct plus loans to graduate and professional students.--Subject to paragraph (8) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2026, a graduate or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part.''; and (2) by adding at the end the following: ``(4) Graduate and professional annual and aggregate limits for federal direct unsubsidized stafford loans beginning july 1, 2026.-- ``(A) Annual limits beginning july 1, 2026.--Subject to paragraphs (7)(A) and (8), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans-- ``(i) a graduate student, who is not a professional student, may borrow in any academic year or its equivalent shall be $20,500; and ``(ii) a professional student may borrow in any academic year or its equivalent shall be $50,000. ``(B) Aggregate limits.--Subject to paragraphs (6), (7)(A), and (8), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans, in addition to the amount borrowed for undergraduate education, that-- ``(i) a graduate student-- ``(I) who is not (and has not been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be $100,000; or ``(II) who is (or has been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be an amount equal to-- ``(aa) $200,000; minus ``(bb) the amount such student borrowed for programs of study described in subparagraph (C)(ii); and ``(ii) a professional student-- ``(I) who is not (and has not been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be $200,000; or ``(II) who is (or has been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be an amount equal to-- ``(aa) $200,000; minus ``(bb) the amount such student borrowed for programs of study described in subparagraph (C)(i). ``(C) Definitions.-- ``(i) Graduate student.--The term `graduate student' means a student enrolled in a program of study that awards a graduate credential (other than a professional degree) upon completion of the program. ``(ii) Professional student.--In this paragraph, the term `professional student' means a student enrolled in a program of study that awards a professional degree, as defined under section 668.2 of title 34, Code of Federal Regulations (as in effect on the date of enactment of this paragraph), upon completion of the program. ``(5) Parent borrower annual and aggregate limits for federal direct plus loans beginning july 1, 2026.-- ``(A) Annual limits.--Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, for each dependent student, the total maximum annual amount of Federal Direct PLUS loans [[Page S3952]] that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $20,000. ``(B) Aggregate limits.--Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, for each dependent student, the total maximum aggregate amount of Federal Direct PLUS loans that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $65,000, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan. ``(6) Lifetime maximum aggregate amount for all students.-- Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, the maximum aggregate amount of loans made, insured, or guaranteed under this title that a student may borrow (other than a Federal Direct PLUS loan, or loan under section 428B, made to the student as a parent borrower on behalf of a dependent student) shall be $257,500, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan. ``(7) Additional rules regarding annual loan limits.-- ``(A) Less than full-time enrollment.--Notwithstanding any provision of this part or part B, in any case in which a student is enrolled in a program of study of an institution of higher education on less than a full-time basis during any academic year, the amount of a loan that student may borrow for an academic year or its equivalent shall be reduced in direct proportion to the degree to which that student is not so enrolled on a full-time basis, rounded to the nearest whole percentage point, as provided in a schedule of reductions published by the Secretary computed for purposes of this subparagraph. ``(B) Institutionally determined limits.--Notwithstanding the annual loan limits established under this section and, for undergraduate students, under this part and part B, beginning on July 1, 2026, an institution of higher education (at the discretion of a financial aid administrator at the institution) may limit the total amount of loans made under this part for a program of study for an academic year that a student may borrow, and that a parent may borrow on behalf of such student, as long as any such limit is applied consistently to all students enrolled in such program of study. ``(8) Interim exception for certain students.-- ``(A) Application of prior limits.--Paragraphs (3)(C), (4), (5), and (6) shall not apply, and paragraph (3)(A)(ii) shall apply as such paragraph was in effect for periods of instruction ending before June 30, 2026, during the expected time to credential described in subparagraph (B), with respect to an individual who, as of June 30, 2026-- ``(i) is enrolled in a program of study at an institution of higher education; and ``(ii) has received a loan (or on whose behalf a loan was made) under this part for such program of study. ``(B) Expected time to credential.--For purposes of this paragraph, the expected time to credential of an individual shall be equal to the lesser of-- ``(i) three academic years; or ``(ii) the period determined by calculating the difference between-- ``(I) the program length for the program of study in which the individual is enrolled; and ``(II) the period of such program of study that such individual has completed as of the date of the determination under this subparagraph. ``(C) Definition of program length.--In this paragraph, the term `program length' means the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution of higher education for a full-time student to complete the requirements for a specific program of study.''. Subtitle C--Loan Repayment SEC. 82001. LOAN REPAYMENT. (a) Transition to Income-based Repayment Plans.-- (1) Selection.--The Secretary of Education shall take such steps as may be necessary to ensure that before July 1, 2028, each borrower who has one or more loans that are in a repayment status in accordance with, or an administrative forbearance associated with, an income contingent repayment plan authorized under section 455(e) of the Higher Education Act of 1965 (referred to in this subsection as ``covered income contingent loans'') selects one of the following income-based repayment plans that is otherwise applicable, and for which that borrower is otherwise eligible, for the repayment of the covered income contingent loans of the borrower: (A) The Repayment Assistance Plan under section 455(q) of the Higher Education Act of 1965. (B) The income-based repayment plan under section 493C of the Higher Education Act of 1965. (C) Any other repayment plan as authorized under section 455(d)(1) of the Higher Education Act of 1965. (2) Commencement of new repayment plan.--Beginning on July 1, 2028, a borrower described in paragraph (1) shall begin repaying the covered income contingent loans of the borrower in accordance with the repayment plan selected under paragraph (1), unless the borrower chooses to begin repaying in accordance with the repayment plan selected under paragraph (1) before such date. (3) Failure to select.--In the case of a borrower described in paragraph (1) who fails to select a repayment plan in accordance with such paragraph, the Secretary of Education shall-- (A) enroll the covered income contingent loans of such borrower in-- (i) the Repayment Assistance Plan under section 455(q) of the Higher Education Act of 1965 with respect to loans that are eligible for the Repayment Assistance Plan under such subsection; or (ii) the income-based repayment plan under section 493C of such Act, with respect to loans that are not eligible for the Repayment Assistance Plan; and (B) require the borrower to begin repaying covered income contingent loans according to the plans under subparagraph (A) on July 1, 2028. (b) Repayment Plans.--Section 455(d) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)) is amended-- (1) in paragraph (1)-- (A) in the matter preceding subparagraph (A), by inserting ``before July 1, 2026, who has not received a loan made under this part on or after July 1, 2026,'' after ``made under this part''; (B) in subparagraph (D)-- (i) by inserting ``before June 30, 2028,'' before ``an income contingent repayment plan''; and (ii) by striking ``and'' after the semicolon; (C) in subparagraph (E)-- (i) by striking ``that enables borrowers who have a partial financial hardship to make a lower monthly payment''; (ii) by striking ``a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan under section 428B made on behalf of a dependent student'' and inserting ``an excepted Consolidation Loan (as defined in section 493C(a)(2))''; and (iii) by striking the period at the end and inserting ``; and''; and (D) by adding at the end the following: ``(F) beginning on July 1, 2026, the income-based Repayment Assistance Plan under subsection (q), provided that-- ``(i) such Plan shall not be available for the repayment of excepted loans (as defined in paragraph (7)(E)); and ``(ii) the borrower is required to pay each outstanding loan of the borrower made under this part under such Repayment Assistance Plan, except that a borrower of an excepted loan (as defined in paragraph (7)(E)) may repay the excepted loan separately from other loans under this part obtained by the borrower.''; (2) in paragraph (5), by amending subparagraph (B) to read as follows: ``(B) repay the loan pursuant to an income-based repayment plan under subsection (q) or section 493C, as applicable.''; and (3) by adding at the end the following: ``(6) Termination and limitation of repayment authority.-- ``(A) Sunset of repayment plans available before july 1, 2026.--Paragraphs (1) through (4) of this subsection shall only apply to loans made under this part before July 1, 2026. ``(B) Prohibitions.--The Secretary may not, for any loan made under this part on or after July 1, 2026-- ``(i) authorize a borrower of such a loan to repay such loan pursuant to a repayment plan that is not described in paragraph (7)(A); or ``(ii) carry out or modify a repayment plan that is not described in such paragraph. ``(7) Repayment plans for loans made on or after july 1, 2026.-- ``(A) Design and selection.--Beginning on July 1, 2026, the Secretary shall offer a borrower of a loan made under this part on or after such date (including such a borrower who also has a loan made under this part before such date) two plans for repayment of the borrower's loans under this part, including principal and interest on such loans. The borrower shall be entitled to accelerate, without penalty, repayment on such loans. The borrower may choose-- ``(i) a standard repayment plan-- ``(I) with a fixed monthly repayment amount paid over a fixed period of time equal to the applicable period determined under subclause (II); and ``(II) with the applicable period of time for repayment determined based on the total outstanding principal of all loans of the borrower made under this part before, on, or after July 1, 2026, at the time the borrower is entering repayment under such plan, as follows-- ``(aa) for a borrower with total outstanding principal of less than $25,000, a period of 10 years; ``(bb) for a borrower with total outstanding principal of not less than $25,000 and less than $50,000, a period of 15 years; ``(cc) for a borrower with total outstanding principal of not less than $50,000 and less than $100,000, a period of 20 years; and ``(dd) for a borrower with total outstanding principal of $100,000 or more, a period of 25 years; or ``(ii) the income-based Repayment Assistance Plan under subsection (q). ``(B) Selection by secretary.--If a borrower of a loan made under this part on or after July 1, 2026, does not select a repayment plan described in subparagraph (A), the Secretary shall provide the borrower with the standard repayment plan described in subparagraph (A)(i). [[Page S3953]] ``(C) Selection applies to all outstanding loans.--A borrower is required to pay each outstanding loan of the borrower made under this part under the same selected repayment plan, except that a borrower who selects the Repayment Assistance Plan and also has an excepted loan that is not eligible for repayment under such Repayment Assistance Plan shall repay the excepted loan separately from other loans under this part obtained by the borrower. ``(D) Changes of repayment plan.--A borrower may change the borrower's selection of-- ``(i) the standard repayment plan under subparagraph (A)(i), or the Secretary's selection of such plan for the borrower under subparagraph (B), as the case may be, to the Repayment Assistance Plan under subparagraph (A)(ii) at any time; and ``(ii) the Repayment Assistance Plan under subparagraph (A)(ii) to the standard repayment plan under subparagraph (A)(i) at any time. ``(E) Repayment for borrowers with excepted loans made on or after july 1, 2026.-- ``(i) Standard repayment plan required.--Notwithstanding subparagraphs (A) through (D), beginning on July 1, 2026, the Secretary shall require a borrower who has received an excepted loan made on or after such date (including such a borrower who also has an excepted loan made before such date) to repay each excepted loan, including principal and interest on those excepted loans, under the standard repayment plan under subparagraph (A)(i). The borrower shall be entitled to accelerate, without penalty, repayment on such loans. ``(ii) Excepted loan defined.--For the purposes of this paragraph, the term `excepted loan' means a loan with an outstanding balance that is-- ``(I) a Federal Direct PLUS Loan that is made on behalf of a dependent student; or ``(II) a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on-- ``(aa) an excepted PLUS loan, as defined in section 493C(a)(1); or ``(bb) an excepted consolidation loan (as such term is defined in section 493C(a)(2)(A), notwithstanding subparagraph (B) of such section).''. (c) Elimination of Authority to Provide Income Contingent Repayment Plans.-- (1) Repeal.--Subsection (e) of section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e(e)) is repealed. (2) Further amendments to eliminate income contingent repayment.-- (A) Section 428 of the Higher Education Act of 1965 (20 U.S.C. 1078) is amended-- (i) in subsection (b)(1)(D), by striking ``be subject to income contingent repayment in accordance with subsection (m)'' and inserting ``be subject to income-based repayment in accordance with subsection (m)''; and (ii) in subsection (m)-- (I) in the subsection heading, by striking ``Income Contingent and''; (II) by amending paragraph (1) to read as follows: ``(1) Authority of secretary to require.--The Secretary may require borrowers who have defaulted on loans made under this part that are assigned to the Secretary under subsection (c)(8) to repay those loans pursuant to an income-based repayment plan under section 493C.''; and (III) in the heading of paragraph (2), by striking ``income contingent or''. (B) Section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078-3) is amended-- (i) in subsection (a)(3)(B)(i)(V)(aa), by striking ``for the purposes of obtaining income contingent repayment or income-based repayment'' and inserting ``for the purposes of qualifying for an income-based repayment plan under section 455(q) or section 493C, as applicable''; (ii) in subsection (b)(5), by striking ``be repaid either pursuant to income contingent repayment under part D of this title, pursuant to income-based repayment under section 493C, or pursuant to any other repayment provision under this section'' and inserting ``be repaid pursuant to an income- based repayment plan under section 493C or any other repayment provision under this section''; and (iii) in subsection (c)-- (I) in paragraph (2)(A), by striking ``or by the terms of repayment pursuant to income contingent repayment offered by the Secretary under subsection (b)(5)'' and inserting ``or by the terms of repayment pursuant to an income-based repayment plan under section 493C''; and (II) in paragraph (3)(B), by striking ``except as required by the terms of repayment pursuant to income contingent repayment offered by the Secretary under subsection (b)(5)'' and inserting ``except as required by the terms of repayment pursuant to an income-based repayment plan under section 493C''. (C) Section 485(d)(1) of the Higher Education Act of 1965 (20 U.S.C. 1092(d)(1)) is amended by striking ``income- contingent and''. (D) Section 494(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1098h(a)(2)) is amended-- (i) in the paragraph heading, by striking ``Income- contingent and income-based'' and inserting ``Income-based''; and (ii) in subparagraph (A)-- (I) in the matter preceding clause (i), by striking ``income-contingent or''; and (II) in clause (ii)(I), by striking ``section 455(e)(8) or the equivalent procedures established under section 493C(c)(2)(B), as applicable'' and inserting ``section 493C(c)(2)''. (3) Effective date.--The amendments made by this subsection shall take effect on July 1, 2028. (d) Repayment Assistance Plan.--Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following new subsection: ``(q) Repayment Assistance Plan.-- ``(1) In general.--Notwithstanding any other provision of this Act, beginning on July 1, 2026, the Secretary shall carry out an income-based repayment plan (to be known as the `Repayment Assistance Plan'), that shall have the following terms and conditions: ``(A) The total monthly repayment amount owed by a borrower for all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan shall be equal to the applicable monthly payment of a borrower calculated under paragraph (4)(B), except that the borrower may not be precluded from repaying an amount that exceeds such amount for any month. ``(B) The Secretary shall apply the borrower's applicable monthly payment under this paragraph first toward interest due on each such loan, next toward any fees due on each loan, and then toward the principal of each loan. ``(C) Any principal due and not paid under subparagraph (B) or paragraph (2)(B) shall be deferred. ``(D) A borrower who is not in a period of deferment or forbearance shall make an applicable monthly payment for each month until the earlier of-- ``(i) the date on which the outstanding balance of principal and interest due on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is $0; or ``(ii) the date on which the borrower has made 360 qualifying monthly payments. ``(E) The Secretary shall cancel any outstanding balance of principal and interest due on a loan made under this part to a borrower-- ``(i) who, for any period of time, participated in the Repayment Assistance Plan under this subsection; ``(ii) whose most recent payment for such loan prior to the loan cancellation under this subparagraph was made under such Repayment Assistance Plan; and ``(iii) who has made 360 qualifying monthly payments on such loan. ``(F) For the purposes of this subsection, the term `qualifying monthly payment' means any of the following: ``(i) An on-time applicable monthly payment under this subsection. ``(ii) An on-time monthly payment under the standard repayment plan under subsection (d)(7)(A)(i) of not less than the monthly payment required under such plan. ``(iii) A monthly payment under any repayment plan (excluding the Repayment Assistance Plan under this subsection) of not less than the monthly payment that would be required under a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years. ``(iv) A monthly payment under section 493C of not less than the monthly payment required under such section, including a monthly payment equal to the minimum payment amount permitted under such section. ``(v) A monthly payment made before July 1, 2028, under an income contingent repayment plan carried out under section 455(d)(1)(D) (or under an alternative repayment plan in lieu of repayment under such an income contingent repayment plan, if placed in such an alternative repayment plan by the Secretary) of not less than the monthly payment required under such a plan, including a monthly payment equal to the minimum payment amount permitted under such a plan. ``(vi) A month when the borrower did not make a payment because the borrower was in deferment under subsection (f)(2)(B) or due to an economic hardship described in subsection (f)(2)(D). ``(vii) A month that ended before the date of enactment of this subsection when the borrower did not make a payment because the borrower was in a period of deferment or forbearance described in section 685.209(k)(4)(iv) of title 34, Code of Federal Regulations (as in effect on the date of enactment of this subsection). ``(G) The procedures established by the Secretary under section 493C(c) shall apply for annually determining the borrower's eligibility for the Repayment Assistance Plan, including verification of a borrower's annual income and the annual amount due on the total amount of loans eligible to be repaid under this subsection, and such other procedures as are necessary to effectively implement income-based repayment under this subsection. With respect to carrying out section 494(a)(2) for the Repayment Assistance Plan, an individual may elect to opt out of the disclosures required under section 494(a)(2)(A)(ii) in accordance with the procedures established under section 493C(c)(2). ``(2) Balance assistance for distressed borrowers.-- ``(A) Interest subsidy.--With respect to a borrower of a loan made under this part, for each month for which such a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment is insufficient to pay the total amount of interest that accrues for the month on all loans of the borrower repaid [[Page S3954]] pursuant to the Repayment Assistance Plan under this subsection, the amount of interest accrued and not paid for the month shall not be charged to the borrower. ``(B) Matching principal payment.--With respect to a borrower of a loan made under this part and not in a period of deferment or forbearance, for each month for which a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment reduces the total outstanding principal balance of all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection by less than $50, the Secretary shall reduce such total outstanding principal balance of the borrower by an amount that is equal to-- ``(i) the amount that is the lesser of-- ``(I) $50; or ``(II) the total amount paid by the borrower for such month pursuant to paragraph (1)(A); minus ``(ii) the total amount paid by the borrower for such month pursuant to paragraph (1)(A) that is applied to such total outstanding principal balance. ``(3) Additional documents.--A borrower who chooses, or is required, to repay a loan under this subsection, and for whom adjusted gross income is unavailable or does not reasonably reflect the borrower's current income, shall provide to the Secretary other documentation of income satisfactory to the Secretary, which documentation the Secretary may use to determine repayment under this subsection. ``(4) Definitions.--In this subsection: ``(A) Adjusted gross income.--The term `adjusted gross income', when used with respect to a borrower, means the adjusted gross income (as such term is defined in section 62 of the Internal Revenue Code of 1986) of the borrower (and the borrower's spouse, as applicable) for the most recent taxable year, except that, in the case of a married borrower who files a separate Federal income tax return, the term does not include the adjusted gross income of the borrower's spouse. ``(B) Applicable monthly payment.-- ``(i) In general.--Except as provided in clause (ii), (iii), or (vi), the term `applicable monthly payment' means, when used with respect to a borrower, the amount equal to-- ``(I) the applicable base payment of the borrower, divided by 12; minus ``(II) $50 for each dependent of the borrower (which, in the case of a married borrower filing a separate Federal income tax return, shall include only each dependent that the borrower claims on that return). ``(ii) Minimum amount.--In the case of a borrower with an applicable monthly payment amount calculated under clause (i) that is less than $10, the applicable monthly payment of the borrower shall be $10. ``(iii) Final payment.--In the case of a borrower whose total outstanding balance of principal and interest on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is less than the applicable monthly payment calculated pursuant to clause (i) or (ii), as applicable, then the applicable monthly payment of the borrower shall be the total outstanding balance of principal and interest on all such loans. ``(iv) Base payment.--The amount of the applicable base payment for a borrower with an adjusted gross income of-- ``(I) not more than $10,000, is $120; ``(II) more than $10,000 and not more than $20,000, is 1 percent of such adjusted gross income; ``(III) more than $20,000 and not more than $30,000, is 2 percent of such adjusted gross income; ``(IV) more than $30,000 and not more than $40,000, is 3 percent of such adjusted gross income; ``(V) more than $40,000 and not more than $50,000, is 4 percent of such adjusted gross income; ``(VI) more than $50,000 and not more than $60,000, is 5 percent of such adjusted gross income; ``(VII) more than $60,000 and not more than $70,000, is 6 percent of such adjusted gross income; ``(VIII) more than $70,000 and not more than $80,000, is 7 percent of such adjusted gross income; ``(IX) more than $80,000 and not more than $90,000, is 8 percent of such adjusted gross income; ``(X) more than $90,000 and not more than $100,000, is 9 percent of such adjusted gross income; and ``(XI) more than $100,000, is 10 percent of such adjusted gross income. ``(v) Dependent.--For the purposes of this paragraph, the term `dependent' means an individual who is a dependent under section 152 of the Internal Revenue Code of 1986. ``(vi) Special rule.--In the case of a borrower who is required by the Secretary to provide information to the Secretary to determine the applicable monthly payment of the borrower under this subparagraph, and who does not comply with such requirement, the applicable monthly payment of the borrower shall be-- ``(I) the sum of the monthly payment amounts the borrower would have paid for each of the borrower's loans made under this part under a standard repayment plan with a fixed monthly repayment amount, paid over a period of 10 years, based on the outstanding principal due on such loan when such loan entered repayment; and ``(II) determined pursuant to this clause until the date on which the borrower provides such information to the Secretary.''. (e) Federal Consolidation Loans.--Section 455(g) of the Higher Education Act of 1965 (20 U.S.C. 1087e(g)) is amended by adding at the end the following new paragraph: ``(3) Consolidation loans made on or after july 1, 2026.--A Federal Direct Consolidation Loan offered to a borrower under this part on or after July 1, 2026, may only be repaid pursuant to a repayment plan described in clause (i) or (ii) of subsection (d)(7)(A) of this section, as applicable, and the repayment schedule of such a Consolidation Loan shall be determined in accordance with such repayment plan.''. (f) Income-Based Repayment.-- (1) Amendments.-- (A) Excepted consolidation loan defined.--Section 493C(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1098e(a)(2)) is amended to read as follows: ``(2) Excepted consolidation loan.-- ``(A) In general.--The term `excepted consolidation loan' means-- ``(i) a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on an excepted PLUS loan; or ``(ii) a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on a consolidation loan under section 428C, or a Federal Direct Consolidation Loan described in clause (i). ``(B) Exclusion.--The term `excepted consolidation loan' does not include a Federal Direct Consolidation Loan described in subparagraph (A) that, on any date during the period beginning on the date of enactment of this subparagraph and ending on June 30, 2028, was being repaid-- ``(i) pursuant to the Income Contingent Repayment (ICR) plan in accordance with section 685.209(b) of title 34, Code of Federal Regulations (as in effect on June 30, 2023); or ``(ii) pursuant to another income driven repayment plan.''. (B) Termination of partial financial hardship eligibility.--Section 493C(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 1098e(a)(3)) is amended to read as follows: ``(3) Applicable amount.--The term `applicable amount' means 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which-- ``(A) the borrower's, and the borrower's spouse's (if applicable), adjusted gross income; exceeds ``(B) 150 percent of the poverty line applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)).''. (C) Terms of income-based repayment.--Section 493C(b) of the Higher Education Act of 1965 (20 U.S.C. 1098e(b)) is amended-- (i) by amending paragraph (1) to read as follows: ``(1) a borrower of any loan made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), may elect to have the borrower's aggregate monthly payment for all such loans not exceed the applicable amount divided by 12;''; (ii) by striking paragraph (6) and inserting the following: ``(6) if the monthly payment amount calculated under this section for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) exceeds the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection (referred to in this paragraph as the `standard monthly repayment amount'), or if the borrower no longer wishes to continue the election under this subsection, then-- ``(A) the maximum monthly payment required to be paid for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) shall be the standard monthly repayment amount; and ``(B) the amount of time the borrower is permitted to repay such loans may exceed 10 years;''; (iii) in paragraph (7)(B)(iv), by inserting ``(as such section was in effect on the day before the date of the repeal of section 455(e)'' after ``section 455(d)(1)(D)''; and (iv) in paragraph (8), by inserting ``or the Repayment Assistance Program under section 455(q)'' after ``standard repayment plan''. (D) Eligibility determinations.--Section 493C(c) of the Higher Education Act of 1965 (20 U.S.C. 1098e(c)) is amended to read as follows: ``(c) Eligibility Determinations; Automatic Recertification.-- ``(1) In general.--The Secretary shall establish procedures for annually determining, in accordance with paragraph (2), the borrower's eligibility for income-based repayment, including the verification of a borrower's annual income and the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), and such other procedures as are necessary to effectively implement income-based repayment under this section. The Secretary shall consider, but is not limited to, the procedures established in accordance with section 455(e)(1) (as in effect on the day before the date of repeal of subsection (e) of section 455) or in connection with income sensitive repayment schedules under section 428(b)(9)(A)(iii) or 428C(b)(1)(E). [[Page S3955]] ``(2) Automatic recertification.-- ``(A) In general.--The Secretary shall establish and implement, with respect to any borrower enrolled in an income-based repayment program under this section or under section 455(q), procedures to-- ``(i) use return information disclosed under section 6103(l)(13) of the Internal Revenue Code of 1986, pursuant to approval provided under section 494, to determine the repayment obligation of the borrower without further action by the borrower; ``(ii) allow the borrower (or the spouse of the borrower), at any time, to opt out of disclosure under such section 6103(l)(13) and instead provide such information as the Secretary may require to determine the repayment obligation of the borrower (or withdraw from the repayment plan under this section or under section 455(q), as the case may be); and ``(iii) provide the borrower with an opportunity to update the return information so disclosed before the determination of the repayment obligation of the borrower. ``(B) Applicability.--Subparagraph (A) shall apply to each borrower of a loan eligible to be repaid under this section or under section 455(q), who, on or after the date on which the Secretary establishes procedures under such subparagraph (A)-- ``(i) selects, or is required to repay such loan pursuant to, an income-based repayment plan under this section or under section 455(q); or ``(ii) recertifies income or family size under such plan.''. (E) Special terms for new borrowers on and after july 1, 2014.--Section 493C(e) of the Higher Education Act of 1965 (20 U.S.C. 1098e(e)) is amended-- (i) in the subsection heading, by inserting ``and Before July 1, 2026'' after ``After July 1, 2014'' ; and (ii) by inserting ``and before July 1, 2026'' after ``after July 1, 2014''. (2) Effective date and application.--The amendments made by this subsection shall take effect on the date of enactment of this title, and shall apply with respect to any borrower who is in repayment before, on, or after the date of enactment of this title. (g) FFEL Adjustment.--Section 428(b)(9)(A)(v) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(9)(A)(v)) is amended by striking ``who has a partial financial hardship''. SEC. 82002. DEFERMENT; FORBEARANCE. (a) Sunset of Economic Hardship and Unemployment Deferments.--Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended-- (1) by striking the subsection heading and inserting the following: ``Deferment; Forbearance''; (2) in paragraph (2)-- (A) in subparagraph (B), by striking ``not in'' and inserting ``subject to paragraph (7), not in'' ; and (B) in subparagraph (D), by striking ``not in'' and inserting ``subject to paragraph (7), not in''; and (3) by adding at the end the following: ``(7) Sunset of unemployment and economic hardship deferments.--A borrower who receives a loan made under this part on or after July 1, 2027, shall not be eligible to defer such loan under subparagraph (B) or (D) of paragraph (2).''. (b) Forbearance on Loans Made Under This Part on or After July 1, 2027.--Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended by adding at the end the following: ``(8) Forbearance on loans made under this part on or after july 1, 2027.--A borrower who receives a loan made under this part on or after July 1, 2027, may only be eligible for a forbearance on such loan pursuant to section 428(c)(3)(B) that does not exceed 9 months during any 24-month period.''. SEC. 82003. LOAN REHABILITATION. (a) Updating Loan Rehabilitation Limits.-- (1) FFEL and direct loans.--Section 428F(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1078-6(a)(5)) is amended by striking ``one time'' and inserting ``two times''. (2) Perkins loans.--Section 464(h)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(h)(1)(D)) is amended by striking ``once'' and inserting ``twice''. (3) Effective date.--The amendments made by this subsection shall take effect beginning on July 1, 2027, and shall apply with respect to any loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.). (b) Minimum Monthly Payment Amount.--Section 428F(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1078- 6(a)(1)(B)) is amended by adding at the end the following: ``With respect to a borrower who has 1 or more loans made under part D on or after July 1, 2027 that are described in subparagraph (A), the total monthly payment of the borrower for all such loans shall not be less than $10.''. SEC. 82004. PUBLIC SERVICE LOAN FORGIVENESS. Section 455(m)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(1)(A)) is amended-- (1) in clause (iii), by striking ``; or'' and inserting a semicolon; (2) in clause (iv), by striking ``; and'' and inserting ``(as in effect on the day before the date of the repeal of subsection (e) of this section); or''; and (3) by adding at the end the following new clause: ``(v) on-time payments under the Repayment Assistance Plan under subsection (q); and''. SEC. 82005. STUDENT LOAN SERVICING. Paragraph (1) of section 458(a) of the Higher Education Act of 1965 (20 U.S.C. 1087h(a)(1)) is amended to read as follows: ``(1) Additional mandatory funds for servicing.--There shall be available to the Secretary (in addition to any other amounts appropriated under any appropriations Act for administrative costs under this part and part B and out of any money in the Treasury not otherwise appropriated) $1,000,000,000 to be obligated for administrative costs under this part and part B, including the costs of servicing the direct student loan programs under this part, which shall remain available until expended.''. Subtitle D--Pell Grants SEC. 83001. ELIGIBILITY. (a) Foreign Income and Federal Pell Grant Eligibility.-- (1) Adjusted gross income defined.--Section 401(a)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A)) is amended to read as follows: ``(A) the term `adjusted gross income' means-- ``(i) in the case of a dependent student, for the second tax year preceding the academic year-- ``(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student's parents; plus ``(II) for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student's parents; and ``(ii) in the case of an independent student, for the second tax year preceding the academic year-- ``(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student (and the student's spouse, if applicable); plus ``(II) for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student (and the student's spouse, if applicable);''. (2) Sunset.--Section 401(b)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended-- (A) by striking ``A student'' and inserting ``For each academic year beginning before July 1, 2026, a student''; and (B) by inserting ``, as in effect for such academic year,'' after ``section 479A(b)(1)(B)(v)''. (3) Conforming amendments.-- (A) In general.--Section 479A(b)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is amended-- (i) by striking clause (v); and (ii) by redesignating clauses (vi) and (vii) as clauses (v) and (vi), respectively. (B) Effective date.--The amendment made by subparagraph (A) shall take effect on July 1, 2026. (b) Federal Pell Grant Ineligibility Due to a High Student Aid Index.-- (1) In general.--Section 401(b)(1) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)) is amended by adding at the end the following: ``(F) Ineligibility of students with a high student aid index.--Notwithstanding subparagraphs (A) through (E), a student shall not be eligible for a Federal Pell Grant under this subsection for an academic year in which the student has a student aid index that equals or exceeds twice the amount of the total maximum Federal Pell Grant for such academic year.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect on July 1, 2026. SEC. 83002. WORKFORCE PELL GRANTS. (a) In General.--Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) is amended by adding at the end the following: ``(k) Workforce Pell Grant Program.-- ``(1) In general.--For the award year beginning on July 1, 2026, and each subsequent award year, the Secretary shall award grants (to be known as `Workforce Pell Grants') to eligible students under paragraph (2) in accordance with this subsection. ``(2) Eligible students.--To be eligible to receive a Workforce Pell Grant under this subsection for any period of enrollment, a student shall meet the eligibility requirements for a Federal Pell Grant under this section, except that the student-- ``(A) shall be enrolled, or accepted for enrollment, in an eligible program under section 481(b)(3) (hereinafter referred to as an `eligible workforce program'); and ``(B) may not-- ``(i) be enrolled, or accepted for enrollment, in a program of study that leads to a graduate credential; or ``(ii) have attained such a credential. ``(3) Terms and conditions of awards.--The Secretary shall award Workforce Pell Grants under this subsection in the same manner and with the same terms and conditions as the Secretary awards Federal Pell Grants under this section, except that-- ``(A) each use of the term `eligible program' (except in subsection (b)(9)(A)) shall be substituted by `eligible workforce program under section 481(b)(3)'; ``(B) the provisions of subsection (d)(2) shall not be applicable to eligible workforce programs; and ``(C) a student who is eligible for a grant equal to less than the amount of the minimum Federal Pell Grant because the eligible workforce program in which the student [[Page S3956]] is enrolled or accepted for enrollment is less than an academic year (in hours of instruction or weeks of duration) may still be eligible for a Workforce Pell Grant in an amount that is prorated based on the length of the program. ``(4) Prevention of double benefits.--No eligible student described in paragraph (2) may concurrently receive a grant under both this subsection and-- ``(A) subsection (b); or ``(B) subsection (c). ``(5) Duration limit.--Any period of study covered by a Workforce Pell Grant awarded under this subsection shall be included in determining a student's duration limit under subsection (d)(5).''. (b) Program Eligibility for Workforce Pell Grants.--Section 481(b) of the Higher Education Act of 1965 (20 U.S.C. 1088(b)) is amended-- (1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and (2) by inserting after paragraph (2) the following: ``(3)(A) A program is an eligible program for purposes of the Workforce Pell Grant program under section 401(k) only if-- ``(i) it is a program of at least 150 clock hours of instruction, but less than 600 clock hours of instruction, or an equivalent number of credit hours, offered by an eligible institution during a minimum of 8 weeks, but less than 15 weeks; ``(ii) it is not offered as a correspondence course, as defined in 600.2 of title 34, Code of Federal Regulations (as in effect on July 1, 2021); ``(iii) the Governor of a State, after consultation with the State board, determines that the program-- ``(I) provides an education aligned with the requirements of high-skill, high-wage (as identified by the State pursuant to section 122 of the Carl D. Perkins Career and Technical Education Act (20 U.S.C. 2342)), or in-demand industry sectors or occupations; ``(II) meets the hiring requirements of potential employers in the sectors or occupations described in subclause (I); ``(III) either-- ``(aa) leads to a recognized postsecondary credential that is stackable and portable across more than one employer; or ``(bb) with respect to students enrolled in the program-- ``(AA) prepares such students for employment in an occupation for which there is only one recognized postsecondary credential; and ``(BB) provides such students with such a credential upon completion of such program; and ``(IV) prepares students to pursue 1 or more certificate or degree programs at 1 or more institutions of higher education (which may include the eligible institution providing the program), including by ensuring-- ``(aa) that a student, upon completion of the program and enrollment in such a related certificate or degree program, will receive academic credit for the Workforce Pell program that will be accepted toward meeting such certificate or degree program requirements; and ``(bb) the acceptability of such credit toward meeting such certificate or degree program requirements; and ``(iv) after the Governor of such State makes the determination that the program meets the requirements under clause (iii), the Secretary determines that-- ``(I) the program has been offered by the eligible institution for not less than 1 year prior to the date on which the Secretary makes a determination under this clause; ``(II) for each award year, the program has a verified completion rate of at least 70 percent, within 150 percent of the normal time for completion; ``(III) for each award year, the program has a verified job placement rate of at least 70 percent, measured 180 days after completion; and ``(IV) for each award year, the total amount of the published tuition and fees of the program for such year is an amount that does not exceed the value-added earnings of students who received Federal financial aid under this title and who completed the program 3 years prior to the award year, as such earnings are determined by calculating the difference between-- ``(aa) the median earnings of such students, as adjusted by the State and metropolitan area regional price parities of the Bureau of Economic Analysis based on the location of such program; and ``(bb) 150 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)) for such year. ``(B) In this paragraph: ``(i) The term `eligible institution' means an eligible institution for purposes of section 401. ``(ii) The term `Governor' means the chief executive of a State. ``(iii) The terms `in-demand industry sector or occupation', `recognized postsecondary credential', and `State board' have the meanings given such terms in section 3 of the Workforce Innovation and Opportunity Act.''. (c) Effective Date; Applicability.--The amendments made by this section shall take effect on July 1, 2026, and shall apply with respect to award year 2026-2027 and each succeeding award year. SEC. 83003. PELL SHORTFALL. Section 401(b)(7)(A)(iii) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(7)(A)(iii)) is amended by striking ``$2,170,000,000'' and inserting ``$12,670,000,000''. SEC. 83004. FEDERAL PELL GRANT EXCLUSION RELATING TO OTHER GRANT AID. Section 401(d) of the Higher Education Act of 1965 (20 U.S.C. 1070a(d)) is amended by adding at the end the following: ``(6) Exclusion.--Beginning on July 1, 2026, and notwithstanding this subsection or subsection (b), a student shall not be eligible for a Federal Pell Grant under subsection (b) during any period for which the student receives grant aid from non-Federal sources, including States, institutions of higher education, or private sources, in an amount that equals or exceeds the student's cost of attendance for such period.''. Subtitle E--Accountability SEC. 84001. INELIGIBILITY BASED ON LOW EARNING OUTCOMES. Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d) is amended-- (1) in subsection (a)-- (A) in paragraph (5), by striking ``and'' after the semicolon; (B) by redesignating paragraph (6) as paragraph (7); and (C) by inserting after paragraph (5) the following: ``(6) provide assurances that, beginning July 1, 2026, the institution will comply with all requirements of subsection (c); and''; (2) in subsection (b)(2), by striking ``and (6)'' and inserting ``(6), and (7)''; (3) by redesignating subsection (c) as subsection (d); and (4) by inserting after subsection (b) the following: ``(c) Ineligibility for Certain Programs Based on Low Earning Outcomes.-- ``(1) In general.--Notwithstanding section 481(b), an institution of higher education subject to this subsection shall not use funds under this part for student enrollment in an educational program offered by the institution that is described in paragraph (2). ``(2) Low-earning outcome programs described.--An educational program at an institution is described in this paragraph if the program awards an undergraduate degree, graduate or professional degree, or graduate certificate, for which the median earnings (as determined by the Secretary) of the programmatic cohort of students who received funds under this title for enrollment in such program, who completed such program during the academic year that is 4 years before the year of the determination, who are not enrolled in any institution of higher education, and who are working, are, for not less than 2 of the 3 years immediately preceding the date of the determination, less than the median earnings of a working adult described in paragraph (3) for the corresponding year. ``(3) Calculation of median earnings.-- ``(A) Working adult.--For purposes of applying paragraph (2) to an educational program at an institution, a working adult described in this paragraph is a working adult who, for the corresponding year-- ``(i) is aged 25 to 34; ``(ii) is not enrolled in an institution of higher education; and ``(iii)(I) in the case of a determination made for an educational program that awards a baccalaureate or lesser degree, has only a high school diploma or its recognized equivalent; or ``(II) in the case of a determination made for a graduate or professional program, has only a baccalaureate degree. ``(B) Source of data.--For purposes of applying paragraph (2) to an educational program at an institution, the median earnings of a working adult, as described in subparagraph (A), shall be based on data from the Bureau of the Census-- ``(i) with respect to an educational program that awards a baccalaureate or lesser degree-- ``(I) for the State in which the institution is located; or ``(II) if fewer than 50 percent of the students enrolled in the institution reside in the State where the institution is located, for the entire United States; and ``(ii) with respect to an educational program that is a graduate or professional program-- ``(I) for the lowest median earnings of-- ``(aa) a working adult in the State in which the institution is located; ``(bb) a working adult in the same field of study (as determined by the Secretary, such as by using the 2-digit CIP code) in the State in which the institution is located; and ``(cc) a working adult in the same field of study (as so determined) in the entire United States; or ``(II) if fewer than 50 percent of the students enrolled in the institution reside in the State where the institution is located, for the lower median earnings of-- ``(aa) a working adult in the entire United States; or ``(bb) a working adult in the same field of study (as so determined) in the entire United States. ``(4) Small programmatic cohorts.--For any year for which the programmatic cohort described in paragraph (2) for an educational program of an institution is fewer than 30 individuals, the Secretary shall-- ``(A) first, aggregate additional years of programmatic data in order to achieve a cohort of at least 30 individuals; and [[Page S3957]] ``(B) second, in cases in which the cohort (including the individuals added under subparagraph (A)) is still fewer than 30 individuals, aggregate additional cohort years of programmatic data for educational programs of equivalent length in order to achieve a cohort of at least 30 individuals. ``(5) Appeals process.--An educational program shall not lose eligibility under this subsection unless the institution has had the opportunity to appeal the programmatic median earnings of students working and not enrolled determination under paragraph (2), through a process established by the Secretary. During such appeal, the Secretary may permit the educational program to continue to participate in the program under this part. ``(6) Notice to students.-- ``(A) In general.--If an educational program of an institution of higher education subject to this subsection does not meet the cohort median earning requirements, as described in paragraph (2), for one year during the applicable covered period but has not yet failed to meet such requirements for 2 years during such covered period, the institution shall promptly inform each student enrolled in the educational program of the eligible program's low cohort median earnings and that the educational program is at risk of losing its eligibility for funds under this part. ``(B) Covered period.--In this paragraph, the term `covered period' means the period of the 3 years immediately preceding the date of a determination made under paragraph (2). ``(7) Regaining programmatic eligibility.--The Secretary shall establish a process by which an institution of higher education that has an educational program that has lost eligibility under this subsection may, after a period of not less than 2 years of such program's ineligibility, apply to regain such eligibility, subject to the requirements established by the Secretary that further the purpose of this subsection.''. Subtitle F--Regulatory Relief SEC. 85001. DELAY OF RULE RELATING TO BORROWER DEFENSE TO REPAYMENT. (a) Delay.--Beginning on the date of enactment of this section, for loans that first originate before July 1, 2035, the provisions of subpart D of part 685 of title 34, Code of Federal Regulations (relating to borrower defense to repayment), as added or amended by the final regulations published by the Department of Education on November 1, 2022, and titled ``Institutional Eligibility Under the Higher Education Act of 1965, as Amended; Student Assistance General Provisions; Federal Perkins Loan Program; Federal Family Education Loan Program; and William D. Ford Federal Direct Loan Program'' (87 Fed. Reg. 65904) shall not be in effect. (b) Effect.--Beginning on the date of enactment of this section, with respect to loans that first originate before July 1, 2035, any regulations relating to borrower defense to repayment that took effect on July 1, 2020, are restored and revived as such regulations were in effect on such date. SEC. 85002. DELAY OF RULE RELATING TO CLOSED SCHOOL DISCHARGES. (a) Delay.--Beginning on the date of enactment of this section, for loans that first originate before July 1, 2035, the provisions of sections 674.33(g), 682.402(d), and 685.214 of title 34, Code of Federal Regulations (relating to closed school discharges), as added or amended by the final regulations published by the Department of Education on November 1, 2022, and titled ``Institutional Eligibility Under the Higher Education Act of 1965, as Amended; Student Assistance General Provisions; Federal Perkins Loan Program; Federal Family Education Loan Program; and William D. Ford Federal Direct Loan Program'' (87 Fed. Reg. 65904), shall not be in effect. (b) Effect.--Beginning on the date of enactment of this section, with respect to loans that first originate before July 1, 2035, the portions of the Code of Federal Regulations described in subsection (a) and amended by the final regulations described in subsection (a) shall be in effect as if the amendments made by such final regulations had not been made. Subtitle G--Limitation on Authority SEC. 86001. LIMITATION ON PROPOSING OR ISSUING REGULATIONS AND EXECUTIVE ACTIONS. Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended by inserting after section 492 the following: ``SEC. 492A. LIMITATION ON PROPOSING OR ISSUING REGULATIONS AND EXECUTIVE ACTIONS. ``(a) Proposed or Final Regulations and Executive Actions.--Beginning on the date of enactment of this section, the Secretary may not issue a proposed regulation, final regulation, or executive action to implement this title if the Secretary determines that the regulation or executive action will increase the subsidy cost (as `cost' is defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of a loan program under this title by more than $100,000,000. ``(b) Relationship to Other Requirements.--The requirements of subsection (a) shall not be construed to affect any other cost analysis required under any source of law for a regulation implementing this title.''. Subtitle H--Garden of Heroes SEC. 87001. GARDEN OF HEROES. In addition to amounts otherwise available, there are appropriated to the National Endowment for the Humanities for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available through fiscal year 2028, $40,000,000 for the procurement of statues as described in Executive Order 13934 (85 Fed. Reg. 41165; relating to building and rebuilding monuments to American heroes), Executive Order 13978 (86 Fed. Reg. 6809; relating to building the National Garden of American Heroes), and Executive Order 14189 (90 Fed. Reg. 8849; relating to celebrating America's birthday). Subtitle I--Office of Refugee Resettlement SEC. 88001. POTENTIAL SPONSOR VETTING FOR UNACCOMPANIED ALIEN CHILDREN APPROPRIATION. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Office of Refugee Resettlement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until September 30, 2028, for the purposes described in subsection (b). (b) Use of Funds.--The funds made available under subsection (a) may only be used for the Office of Refugee Resettlement to support costs associated with-- (1) background checks on potential sponsors, which shall include-- (A) the name of the potential sponsor and of all adult residents of the potential sponsor's household; (B) the social security number or tax payer identification number of the potential sponsor and of all adult residents of the potential sponsor's household; (C) the date of birth of the potential sponsor and of all adult residents of the potential sponsor's household; (D) the validated location of the residence at which the unaccompanied alien child will be placed; (E) an in-person or virtual interview with, and suitability study concerning, the potential sponsor and all adult residents of the potential sponsor's household; (F) contact information for the potential sponsor and for all adult residents of the potential sponsor's household; and (G) the results of all background and criminal records checks for the potential sponsor and for all adult residents of the potential sponsor's household, which shall include, at a minimum, an investigation of the public records sex offender registry, a public records background check, and a national criminal history check based on fingerprints; (2) home studies of potential sponsors of unaccompanied alien children; (3) determining whether an unaccompanied alien child poses a danger to self or others by conducting an examination of the unaccompanied alien child for gang-related tattoos and other gang-related markings and covering such tattoos or markings while the child is in the care of the Office of Refugee Resettlement; (4) data systems improvement and sharing that supports the health, safety, and well being of unaccompanied alien children by determining the appropriateness of potential sponsors of unaccompanied alien children and of adults residing in the household of the potential sponsor and by assisting with the identification and investigation of child labor exploitation and child trafficking; and (5) coordinating and communicating with State child welfare agencies regarding the placement of unaccompanied alien children in such States by the Office of Refugee Resettlement. (c) Definitions.--In this section: (1) Potential sponsor.--The term ``potential sponsor'' means an individual or entity who applies for the custody of an unaccompanied alien child. (2) Unaccompanied alien child.--The term ``unaccompanied alien child'' has the meaning given such term in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g)). TITLE IX--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS Subtitle A--Homeland Security Provisions SEC. 90001. BORDER INFRASTRUCTURE AND WALL SYSTEM. In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $46,550,000,000 for necessary expenses relating to the following elements of the border infrastructure and wall system: (1) Construction, installation, or improvement of new or replacement primary, waterborne, and secondary barriers. (2) Access roads. (3) Barrier system attributes, including cameras, lights, sensors, and other detection technology. (4) Any work necessary to prepare the ground at or near the border to allow U.S. Customs and Border Protection to conduct its operations, including the construction and maintenance of the barrier system. SEC. 90002. U.S. CUSTOMS AND BORDER PROTECTION PERSONNEL, FLEET VEHICLES, AND FACILITIES. (a) In General.--In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, the following: (1) Personnel.--$4,100,000,000, to remain available until September 30, 2029, to hire and train additional Border Patrol agents, [[Page S3958]] Office of Field Operations officers, Air and Marine agents, rehired annuitants, and U.S. Customs and Border Protection field support personnel. (2) Retention, hiring, and performance bonuses.-- $2,052,630,000, to remain available until September 30, 2029, to provide recruitment bonuses, performance awards, or annual retention bonuses to eligible Border Patrol agents, Office of Field Operations officers, and Air and Marine agents. (3) Vehicles.--$855,000,000, to remain available until September 30, 2029, for the repair of existing patrol units and the lease or acquisition of additional patrol units. (4) Facilities.--$5,000,000,000 for necessary expenses relating to lease, acquisition, construction, design, or improvement of facilities and checkpoints owned, leased, or operated by U.S. Customs and Border Protection. (b) Restriction.--None of the funds made available by subsection (a) may be used to recruit, hire, or train personnel for the duties of processing coordinators after October 31, 2028. SEC. 90003. DETENTION CAPACITY. (a) In General.--In addition to any amounts otherwise appropriated, there is appropriated to U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $45,000,000,000, for single adult alien detention capacity and family residential center capacity. (b) Duration and Standards.--Aliens may be detained at family residential centers, as described in subsection (a), pending a decision, under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), on whether the aliens are to be removed from the United States and, if such aliens are ordered removed from the United States, until such aliens are removed. The detention standards for the single adult detention capacity described in subsection (a) shall be set in the discretion of the Secretary of Homeland Security, consistent with applicable law. (c) Definition of Family Residential Center.--In this section, the term ``family residential center'' means a facility used by the Department of Homeland Security to detain family units of aliens (including alien children who are not unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g)))) who are encountered or apprehended by the Department of Homeland Security, regardless whether the facility is licensed by the State or a political subdivision of the State in which the facility is located. SEC. 90004. BORDER SECURITY, TECHNOLOGY, AND SCREENING. (a) In General.--In addition to amounts otherwise available, there is appropriated to the Commissioner of U.S. Customs and Border Protection for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $6,168,000,000 for the following: (1) Procurement and integration of new nonintrusive inspection equipment and associated civil works, including artificial intelligence, machine learning, and other innovative technologies, as well as other mission support, to combat the entry or exit of illicit narcotics at ports of entry and along the southwest, northern, and maritime borders. (2) Air and Marine operations' upgrading and procurement of new platforms for rapid air and marine response capabilities. (3) Upgrades and procurement of border surveillance technologies along the southwest, northern, and maritime borders. (4) Necessary expenses, including the deployment of technology, relating to the biometric entry and exit system under section 7208 of the Intelligence Reform and Terrorism Prevention Act of 2004 (8 U.S.C. 1365b). (5) Screening persons entering or exiting the United States. (6) Initial screenings of unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))), consistent with the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 (Public Law 110-457; 122 Stat. 5044). (7) Enhancing border security by combating drug trafficking, including fentanyl and its precursor chemicals, at the southwest, northern, and maritime borders. (8) Commemorating efforts and events related to border security. (b) Restrictions.--None of the funds made available under subsection (a) may be used for the procurement or deployment of surveillance towers along the southwest border and northern border that have not been tested and accepted by U.S. Customs and Border Protection to deliver autonomous capabilities. (c) Definition of Autonomous.--In this section, with respect to capabilities, the term ``autonomous'' means a system designed to apply artificial intelligence, machine learning, computer vision, or other algorithms to accurately detect, identify, classify, and track items of interest in real time such that the system can make operational adjustments without the active engagement of personnel or continuous human command or control. SEC. 90005. STATE AND LOCAL ASSISTANCE. (a) State Homeland Security Grant Programs.-- (1) In general.--In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, to be administered under the State Homeland Security Grant Program authorized under section 2004 of the Homeland Security Act of 2002 (6 U.S.C. 605), to enhance State, local, and Tribal security through grants, contracts, cooperative agreements, and other activities-- (A) $500,000,000 for State and local capabilities to detect, identify, track, or monitor threats from unmanned aircraft systems (as such term is defined in section 44801 of title 49, United States Code), consistent with titles 18 and 49 of the United States Code; (B) $625,000,000 for security and other costs related to the 2026 FIFA World Cup; (C) $1,000,000,000 for security, planning, and other costs related to the 2028 Olympics; and (D) $450,000,000 for the Operation Stonegarden Grant Program. (2) Terms and conditions.--None of the funds made available under subparagraph (B) or (C) of paragraph (1) shall be subject to the requirements of section 2004(e)(1) or section 2008(a)(12) of the Homeland Security Act of 2002 (6 U.S.C. 605(e)(1), 609(a)(12)). (b) State Border Security Reinforcement Fund.-- (1) Establishment.--There is established, in the Department of Homeland Security, a fund to be known as the ``State Border Security Reinforcement Fund.'' (2) Purposes.--The Secretary of Homeland Security shall use amounts appropriated or otherwise made available for the Fund for grants to eligible States and units of local government for any of the following purposes: (A) Construction or installation of a border wall, border fencing or other barrier, or buoys along the southern border of the United States, which may include planning, procurement of materials, and personnel costs related to such construction or installation. (B) Any work necessary to prepare the ground at or near land borders to allow construction and maintenance of a border wall or other barrier fencing. (C) Detection and interdiction of illicit substances and aliens who have unlawfully entered the United States and have committed a crime under Federal, State, or local law, and transfer or referral of such aliens to the Department of Homeland Security as provided by law. (D) Relocation of aliens who are unlawfully present in the United States from small population centers to other domestic locations. (3) Appropriation.--In addition to amounts otherwise available for the purposes described in paragraph (2), there is appropriated for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to the Department of Homeland Security for the State Border Security Reinforcement Fund established by paragraph (1), $10,000,000,000, to remain available until September 30, 2034, for qualified expenses for such purposes. (4) Eligibility.--The Secretary of Homeland Security may provide grants from the fund established by paragraph (1) to State agencies and units of local governments for expenditures made for completed, ongoing, or new activities, in accordance with law, that occurred on or after January 20, 2021. (5) Application.--Each State desiring to apply for a grant under this subsection shall submit an application to the Secretary containing such information in support of the application as the Secretary may require. The Secretary shall require that each State include in its application the purposes for which the State seeks the funds and a description of how the State plans to allocate the funds. The Secretary shall begin to accept applications not later than 90 days after the date of the enactment of this Act. (6) Terms and conditions.--Nothing in this subsection shall authorize any State or local government to exercise immigration or border security authorities reserved exclusively to the Federal Government under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.) or the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.). The Federal Emergency Management Agency may use not more than 1 percent of the funds made available under this subsection for the purpose of administering grants provided for in this section. SEC. 90006. PRESIDENTIAL RESIDENCE PROTECTION. (a) In General.--In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until September 30, 2029, for the reimbursement of extraordinary law enforcement personnel costs for protection activities directly and demonstrably associated with any residence of the President designated pursuant to section 3 or 4 of the Presidential Protection Assistance Act of 1976 (Public Law 94-524; 18 U.S.C. 3056 note) to be secured by the United States Secret Service. (b) Availability.--Funds appropriated under this section shall be available only for costs that a State or local agency-- (1) incurred or incurs on or after July 1, 2024; (2) demonstrates to the Administrator of the Federal Emergency Management Agency as being-- (A) in excess of typical law enforcement operation costs; (B) directly attributable to the provision of protection described in this section; and [[Page S3959]] (C) associated with a nongovernmental property designated pursuant to section 3 or 4 of the Presidential Protection Assistance Act of 1976 (Public Law 94-524; 18 U.S.C. 3056 note) to be secured by the United States Secret Service; and (3) certifies to the Administrator as compensating protection activities requested by the United States Secret Service. (c) Terms and Conditions.--The Federal Emergency Management Agency may use not more than 3 percent of the funds made available under this section for the purpose of administering grants provided for in this section. SEC. 90007. DEPARTMENT OF HOMELAND SECURITY APPROPRIATIONS FOR BORDER SUPPORT. In addition to amounts otherwise available, there are appropriated to the Secretary of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000,000, to remain available until September 30, 2029, for reimbursement of costs incurred in undertaking activities in support of the Department of Homeland Security's mission to safeguard the borders of the United States. Subtitle B--Governmental Affairs Provisions SEC. 90101. FEHB IMPROVEMENTS. (a) Short Title.--This section may be cited as the ``FEHB Protection Act of 2025''. (b) Definitions.--In this section: (1) Director.--The term ``Director'' means the Director of the Office of Personnel Management. (2) Health benefits plan; member of family.--The terms ``health benefits plan'' and ``member of family'' have the meanings given those terms in section 8901 of title 5, United States Code. (3) Open season.--The term ``open season'' means an open season described in section 890.301(f) of title 5, Code of Federal Regulations, or any successor regulation. (4) Program.--The term ``Program'' means the health insurance programs carried out under chapter 89 of title 5, United States Code, including the program carried out under section 8903c of that title. (5) Qualifying life event.--The term ``qualifying life event'' has the meaning given the term in section 892.101 of title 5, Code of Federal Regulations, or any successor regulation. (c) Verification Requirements.--Not later than 1 year after the date of enactment of this Act, the Director shall issue regulations and implement a process to verify-- (1) the veracity of any qualifying life event through which an enrollee in the Program seeks to add a member of family with respect to the enrollee to a health benefits plan under the Program; and (2) that, when an enrollee in the Program seeks to add a member of family with respect to the enrollee to the health benefits plan of the enrollee under the Program, including during any open season, the individual so added is a qualifying member of family with respect to the enrollee. (d) Fraud Risk Assessment.--In any fraud risk assessment conducted with respect to the Program on or after the date of enactment of this Act, the Director shall include an assessment of individuals who are enrolled in, or covered under, a health benefits plan under the Program even though those individuals are not eligible to be so enrolled or covered. (e) Family Member Eligibility Verification Audit.-- (1) In general.--During the 3-year period beginning on the date that is 1 year after the date of enactment of this Act, the Director shall carry out a comprehensive audit regarding members of family who are covered under an enrollment in a health benefits plan under the Program. (2) Contents.--With respect to the audit carried out under paragraph (1), the Director shall review marriage certificates, birth certificates, and other appropriate documents that are necessary to determine eligibility to enroll in a health benefits plan under the Program. (f) Disenrollment or Removal.--Not later than 180 days after the date of enactment of this Act, the Director shall develop a process by which any individual enrolled in, or covered under, a health benefits plan under the Program who is not eligible to be so enrolled or covered shall be disenrolled or removed from enrollment in, or coverage under, that health benefits plan. (g) Earned Benefits and Health Care Administrative Services Associated Oversight and Audit Funding.--Section 8909 of title 5, United States Code, is amended-- (1) in subsection (a)(2), by inserting before the period at the end the following: ``, except that the amounts required to be set aside under subsection (b)(2) shall not be subject to the limitations that may be specified annually by Congress''; and (2) in subsection (b)-- (A) by redesignating paragraph (2) as paragraph (3); and (B) by inserting after paragraph (1) the following: ``(2) In fiscal year 2026, $66,000,000, to be derived from all contributions, and to remain available until the end of fiscal year 2035, for the Director of the Office to carry out subsections (c) through (f) of the FEHB Protection Act of 2025.''. SEC. 90102. PANDEMIC RESPONSE ACCOUNTABILITY COMMITTEE. (a) Pandemic Response Accountability Committee Funding Availability.--In addition to amounts otherwise available, there is appropriated for fiscal year 2026, out of any money in the Treasury not otherwise appropriated, $88,000,000, to remain available until expended, for the Pandemic Response Accountability Committee to support oversight of the Coronavirus response and of funds provided in this Act or any other Act pertaining to the Coronavirus pandemic. (b) CARES Act.--Section 15010 of the CARES Act (Public Law 116-136; 134 Stat. 533) is amended-- (1) in subsection (a)(6)-- (A) in subparagraph (E), by striking ``or'' at the end; (B) in subparagraph (F), by striking ``and'' at the end and inserting ``or''; and (C) by adding at the end the following: ``(G) the Act titled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14'; and''; and (2) in subsection (k), by striking ``2025'' and inserting ``2034''. SEC. 90103. APPROPRIATION FOR THE OFFICE OF MANAGEMENT AND BUDGET. In addition to amounts otherwise available, there is appropriated to the Office of Management and Budget for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2029, 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 SEC. 100001. APPLICABILITY OF THE IMMIGRATION LAWS. (a) Applicability.--The fees under this subtitle shall apply to aliens in the circumstances described in this subtitle. (b) Terms.--The terms used under this subtitle shall have the meanings given such terms in section 101 of the Immigration and Nationality Act (8 U.S.C. 1101). (c) References to Immigration and Nationality Act.--Except as otherwise expressly provided, any reference in this subtitle to a section or other provision shall be considered to be to a section or other provision of the Immigration and Nationality Act (8 U.S.C. 1101 et seq.). SEC. 100002. ASYLUM FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security or the Attorney General, as applicable, shall require the payment of a fee, equal to the amount specified in this section, by any alien who files an application for asylum under section 208 (8 U.S.C. 1158) at the time such application is filed. (b) Initial Amount.--During fiscal year 2025, the amount specified in this section shall be the greater of-- (1) $100; or (2) such amount as the Secretary or the Attorney General, as applicable, may establish, by rule. (c) Annual Adjustments for Inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (1) the amount of the fee required under this section for the most recently concluded fiscal year; and (2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (d) Disposition of Asylum Fee Proceeds.--During each fiscal year-- (1) 50 percent of the fees received from aliens filing applications with the Attorney General-- (A) shall be credited to the Executive Office for Immigration Review; and (B) may be retained and expended without further appropriation; (2) 50 percent of fees received from aliens filing applications with the Secretary of Homeland Security-- (A) shall be credited to U.S. Citizenship and Immigration Services; (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended without further appropriation; and (3) any amounts received in fees required under this section that were not credited to the Executive Office for Immigration Review pursuant to paragraph (1) or to U.S. Citizenship and Immigration Services pursuant to paragraph (2) shall be deposited into the general fund of the Treasury. (e) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100003. EMPLOYMENT AUTHORIZATION DOCUMENT FEES. (a) Asylum Applicants.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien who files an initial application for employment authorization under section 208(d)(2) (8 U.S.C. 1158(d)(2)) at the time such initial employment authorization application is filed. (2) Initial amount.--During fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $550; or [[Page S3960]] (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this section for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (4) Disposition of employment authorization document fees.--During each fiscal year-- (A) 25 percent of the fees collected pursuant to this subsection-- (i) shall be credited to U.S. Citizenship and Immigration Services; (ii) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (iii) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation, provided that not less than 50 percent is used to detect and prevent immigration benefit fraud; and (B) any amounts collected pursuant to this subsection that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. (b) Parolees.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien paroled into the United States for any initial application for employment authorization at the time such initial application is filed. Each initial employment authorization shall be valid for a period of 1 year or for the duration of the alien's parole, whichever is shorter. (2) Initial amount.--During fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $550; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (4) Disposition of parolee employment authorization application fees.--All of the fees collected pursuant to this subsection shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. (c) Temporary Protected Status.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien who files an initial application for employment authorization under section 244(a)(1)(B) (8 U.S.C. 1254a(a)(1)(B)) at the time such initial application is filed. Each initial employment authorization shall be valid for a period of 1 year, or for the duration of the alien's temporary protected status, whichever is shorter. (2) Initial amount.--During fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $550; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (4) Disposition of employment authorization application fees collected from aliens granted temporary protected status.--All of the fees collected pursuant to this subsection shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. SEC. 100004. IMMIGRATION PAROLE FEE. (a) In General.--Except as provided under subsection (b), the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this section and in addition to any other fee authorized by law, by any alien who is paroled into the United States. (b) Exceptions.--An alien shall not be subject to the fee otherwise required under subsection (a) if the alien establishes, to the satisfaction of the Secretary of Homeland Security, on an individual, case-by-case basis, that the alien is being paroled because-- (1)(A) the alien has a medical emergency; and (B)(i) the alien cannot obtain necessary treatment in the foreign state in which the alien is residing; or (ii) the medical emergency is life-threatening and there is insufficient time for the alien to be admitted to the United States through the normal visa process; (2)(A) the alien is the parent or legal guardian of an alien described in paragraph (1); and (B) the alien described in paragraph (1) is a minor; (3)(A) the alien is needed in the United States to donate an organ or other tissue for transplant; and (B) there is insufficient time for the alien to be admitted to the United States through the normal visa process; (4)(A) the alien has a close family member in the United States whose death is imminent; and (B) the alien could not arrive in the United States in time to see such family member alive if the alien were to be admitted to the United States through the normal visa process; (5)(A) the alien is seeking to attend the funeral of a close family member; and (B) the alien could not arrive in the United States in time to attend such funeral if the alien were to be admitted to the United States through the normal visa process; (6) the alien is an adopted child-- (A) who has an urgent medical condition; (B) who is in the legal custody of the petitioner for a final adoption-related visa; and (C) whose medical treatment is required before the expected award of a final adoption-related visa; (7) the alien-- (A) is a lawful applicant for adjustment of status under section 245 (8 U.S.C. 1255); and (B) is returning to the United States after temporary travel abroad; (8) the alien-- (A) has been returned to a contiguous country pursuant to section 235(b)(2)(C) (8 U.S.C. 1225(b)(2)(C)); and (B) is being paroled into the United States to allow the alien to attend the alien's immigration hearing; (9) the alien has been granted the status of Cuban and Haitian entrant (as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422; 8 U.S.C. 1522 note); or (10) the Secretary of Homeland Security determines that a significant public benefit has resulted or will result from the parole of an alien-- (A) who has assisted or will assist the United States Government in a law enforcement matter; (B) whose presence is required by the United States Government in furtherance of such law enforcement matter; and (C)(i) who is inadmissible or does not satisfy the eligibility requirements for admission as a nonimmigrant; or (ii) for which there is insufficient time for the alien to be admitted to the United States through the normal visa process. (c) Initial Amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (1) $1,000; or (2) such amount as the Secretary of Homeland Security may establish, by rule. (d) Annual Adjustments for Inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (1) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (e) Disposition of Fees Collected From Aliens Granted Parole.--All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. (f) No Fee Waiver.--Except as provided in subsection (b), fees required to be paid under this section shall not be waived or reduced. SEC. 100005. SPECIAL IMMIGRANT JUVENILE FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this section, by any alien, parent, or legal guardian of an alien applying for special immigrant juvenile status under section 101(a)(27)(J) (8 U.S.C. 1101(a)(27)(J)). (b) Initial Amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- [[Page S3961]] (1) $250; or (2) such amount as the Secretary of Homeland Security may establish, by rule. (c) Annual Adjustments for Inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (1) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (2) the product resulting from the multiplication of the amount referred to in paragraph (1) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (d) Disposition of Special Immigrant Juvenile Fees.--All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. SEC. 100006. TEMPORARY PROTECTED STATUS FEE. Section 244(c)(1)(B) of the Immigration and Nationality Act (8 U.S.C. 1254a(c)(1)(B)) is amended-- (1) by striking ``The Attorney General'' and inserting the following: ``(i) In general.--The Attorney General''; (2) in clause (i), as redesignated, by striking ``$50'' and inserting ``$500, subject to the adjustments required under clause (ii)''; and (3) by adding at the end the following: ``(ii) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the maximum amount of the fee authorized under clause (i) shall be equal to the sum of-- ``(I) the maximum amount of the fee authorized under this subparagraph for the most recently concluded fiscal year; and ``(II) the product resulting from the multiplication of the amount referred to in subclause (I) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. ``(iii) Disposition of temporary protected status fees.-- All of the fees collected pursuant to this subparagraph shall be deposited into the general fund of the Treasury. ``(iv) No fee waiver.--Fees required to be paid under this subparagraph shall not be waived or reduced.''. SEC. 100007. VISA INTEGRITY FEE. (a) Visa Integrity Fee.-- (1) In general.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in this subsection, by any alien issued a nonimmigrant visa at the time of such issuance. (2) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $250; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (3) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar. (4) Disposition of visa integrity fees.--All of the fees collected pursuant to this section that are not reimbursed pursuant to subsection (b) shall be deposited into the general fund of the Treasury. (5) No fee waiver.--Fees required to be paid under this subsection shall not be waived or reduced. (b) Fee Reimbursement.--The Secretary of Homeland Security may provide a reimbursement to an alien of the fee required under subsection (a) for the issuance of a nonimmigrant visa after the expiration of such nonimmigrant visa's period of validity if such alien demonstrates that he or she-- (1) after admission to the United States pursuant to such nonimmigrant visa, complied with all conditions of such nonimmigrant visa, including the condition that an alien shall not accept unauthorized employment; and (2)(A) has not sought to extend his or her period of admission during such period of validity and departed the United States not later than 5 days after the last day of such period; or (B) during such period of validity, was granted an extension of such nonimmigrant status or an adjustment to the status of a lawful permanent resident. SEC. 100008. FORM I-94 FEE. (a) Fee Authorized.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any alien who submits an application for a Form I-94 Arrival/Departure Record. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $24; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar. (c) Disposition of Form I-94 Fees.--During each fiscal year-- (1) 20 percent of the fees collected pursuant to this section-- (A) shall be deposited into the Land Border Inspection Fee Account in accordance with section 286(q)(2) (8 U.S.C. 1356(q)(2)); and (B) shall be made available to U.S. Customs and Border Protection to retain and spend without further appropriation for the purpose of processing Form I-94; and (2) any amounts not deposited into the Land Border Inspection Fee Account pursuant to paragraph (1)(A) shall be deposited in the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100009. ANNUAL ASYLUM FEE. (a) Fee Authorized.--In addition to any other fee authorized by law, for each calendar year that an alien's application for asylum remains pending, the Secretary of Homeland Security or the Attorney General, as applicable, shall require the payment of a fee, equal to the amount specified in subsection (b), by such alien. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $100; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded down to the nearest dollar. (c) Disposition of Annual Asylum Fees.--All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100010. FEE RELATING TO RENEWAL AND EXTENSION OF EMPLOYMENT AUTHORIZATION FOR PAROLEES. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), for any parolee who seeks a renewal or extension of employment authorization based on a grant of parole. The employment authorization for each alien paroled into the United States, or any renewal or extension of such parole, shall be valid for a period of 1 year or for the duration of the alien's parole, whichever is shorter. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $275; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Disposition of Fees Relating to Renewal and Extension of Employment Authorization for Parolees.--During each fiscal year-- (1) 25 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Citizenship and Immigration Services; [[Page S3962]] (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100011. FEE RELATING TO RENEWAL OR EXTENSION OF EMPLOYMENT AUTHORIZATION FOR ASYLUM APPLICANTS. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee of not less than $275 by any alien who has applied for asylum for each renewal or extension of employment authorization based on such application. (b) Termination.--Each initial employment authorization, or renewal or extension of such authorization, shall terminate-- (1) immediately following the denial of an asylum application by an asylum officer, unless the case is referred to an immigration judge; (2) on the date that is 30 days after the date on which an immigration judge denies an asylum application, unless the alien makes a timely appeal to the Board of Immigration Appeals; or (3) immediately following the denial by the Board of Immigration Appeals of an appeal of a denial of an asylum application. (c) Disposition of Fees Relating to Renewal and Extension of Employment Authorization for Asylum Applicants.--During each fiscal year-- (1) 25 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Citizenship and Immigration Services; (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100012. FEE RELATING TO RENEWAL AND EXTENSION OF EMPLOYMENT AUTHORIZATION FOR ALIENS GRANTED TEMPORARY PROTECTED STATUS. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any alien at the time such alien seeks a renewal or extension of employment authorization based on a grant of temporary protected status. Any employment authorization for an alien granted temporary protected status, or any renewal or extension of such employment authorization, shall be valid for a period of 1 year or for the duration of the designation of temporary protected status, whichever is shorter. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $275; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Disposition of Fees Relating to Renewal and Extension of Employment Authorization for Temporary Protected Status Applicants.--During each fiscal year-- (1) 25 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Citizenship and Immigration Services; (B) shall be deposited into the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (C) may be retained and expended by U.S. Citizenship and Immigration Services without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Citizenship and Immigration Services pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100013. FEES RELATING TO APPLICATIONS FOR ADJUSTMENT OF STATUS. (a) Fee for Filing an Application to Adjust Status to That of a Lawful Permanent Resident.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien who files an application with an immigration court to adjust the alien's status to that of a lawful permanent resident, or whose application to adjust his or her status to that of a lawful permanent resident is adjudicated in immigration court. Such fee shall be paid at the time such application is filed or before such application is adjudicated by the immigration court. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,500; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of adjustment of status application fees.-- During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (b) Fee for Filing Application for Waiver of Grounds of Inadmissibility.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for a waiver of a ground of inadmissibility, or before such application is adjudicated by the immigration court. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,050; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of waiver of ground of admissibility application fees.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (c) Fee for Filing an Application for Temporary Protected Status.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for temporary protected status, or before such application is adjudicated by the immigration court. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $500; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the [[Page S3963]] date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of temporary protected status application fees.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (d) Fee for Filing an Appeal of a Decision of an Immigration Judge.-- (1) In general.--Except as provided in paragraph (3), the Attorney General shall require, in addition to any other fees authorized by law, the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an appeal from a decision of an immigration judge. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $900; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Exception.--The fee required under paragraph (1) shall not apply to the appeal of a bond decision. (4) Disposition of fees for appealing immigration judge decisions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (e) Fee for Filing an Appeal From a Decision of an Officer of the Department of Homeland Security.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an appeal of a decision of an officer of the Department of Homeland Security. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $900; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for appealing department of homeland security officer decisions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (f) Fee for Filing an Appeal From a Decision of an Adjudicating Official in a Practitioner Disciplinary Case.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any practitioner at the time such practitioner files an appeal from a decision of an adjudicating official in a practitioner disciplinary case. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,325; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for appealing department of homeland security officer decisions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (g) Fee for Filing a Motion to Reopen or a Motion to Reconsider.-- (1) In general.--Except as provided in paragraph (3), in addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files a motion to reopen or motion to reconsider a decision of an immigration judge or the Board of Immigration Appeals. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $900; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Exceptions.--The fee required under paragraph (1) shall not apply to-- (A) a motion to reopen a removal order entered in absentia if such motion is filed in accordance with section 240(b)(5)(C)(ii) (8 U.S.C. 1229a(b)(5)(C)(ii)); or (B) a motion to reopen a deportation order entered in absentia if such motion is filed in accordance with section 242B(c)(3)(B) prior to April 1, 1997. (4) Disposition of fees for filing certain motions.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (h) Fee for Filing Application for Suspension of Deportation.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court for suspension of deportation. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $600; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All [[Page S3964]] Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for filing application for suspension of deportation.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (i) Fee for Filing Application for Cancellation of Removal for Certain Permanent Residents.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien at the time such alien files an application with an immigration court an application for cancellation of removal for an alien who is a lawful permanent resident. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $600; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for filing application for cancellation of removal.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (j) Fee for Filing an Application for Cancellation of Removal and Adjustment of Status for Certain Nonpermanent Residents.-- (1) In general.--In addition to any other fees authorized by law, the Attorney General shall require the payment of a fee, equal to the amount specified in paragraph (2), by any alien who is not a lawful permanent resident at the time such alien files an application with an immigration court for cancellation of removal and adjustment of status for any alien. (2) Amount specified.-- (A) Initial amount.--For fiscal year 2025, the amount specified in this paragraph shall be the greater of-- (i) $1,500; or (ii) such amount as the Attorney General may establish, by rule. (B) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this paragraph shall be equal to the sum of-- (i) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (ii) the product resulting from the multiplication of the amount referred to in clause (i) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (3) Disposition of fees for filing application for cancellation of removal.--During each fiscal year-- (A) not more than 25 percent of the fees collected pursuant to this subsection-- (i) shall be derived by transfer from the Immigration Examinations Fee Account established under section 286(m) (8 U.S.C. 1356(m)); and (ii) shall be credited to the Executive Office for Immigration Review to retain and spend without further appropriation; and (B) any amounts not derived by transfer and credited pursuant to subparagraph (A) shall be deposited into the general fund of the Treasury. (k) Limitation on Use of Funds.--No fees collected pursuant to this section may be expended by the Executive Office for Immigration Review for the Legal Orientation Program, or for any successor program. SEC. 100014. ELECTRONIC SYSTEM FOR TRAVEL AUTHORIZATION FEE. Section 217(h)(3)(B) (8 U.S.C. 1187(h)(3)(B)) is amended-- (1) in clause (i)-- (A) in subclause (I), by striking ``and'' at the end; (B) in subclause (II)-- (i) by inserting ``of not less than $10'' after ``an amount''; and (ii) by striking the period at the end and inserting ``; and''; and (C) by adding at the end the following: ``(III) not less than $13 per travel authorization.''; (2) in clause (iii), by striking ``October 31, 2028'' and inserting ``October 31, 2034''; and (3) by adding at the end the following: ``(iv) Subsequent adjustment.--During fiscal year 2026 and each subsequent fiscal year, the amount specified in clause (i)(II) for a fiscal year shall be equal to the sum of-- ``(I) the amount of the fee required under this subparagraph during the most recently concluded fiscal year; and ``(II) the product of the amount referred to in subclause (I) multiplied by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year.''. SEC. 100015. ELECTRONIC VISA UPDATE SYSTEM FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, in the amount specified in subsection (b), by any alien subject to the Electronic Visa Update System at the time of such alien's enrollment in such system. (b) Amount Specified.-- (1) In general.--For fiscal year 2025, the amount specified in this subsection shall be the greater of-- (A) $30; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026 and each subsequent fiscal year, the amount specified in this subsection shall be equal to the sum of-- (A) the amount of the fee required under this subsection during the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $0.25. (c) Disposition of Electronic Visa Update System Fees.-- (1) In general.--Section 286 (8 U.S.C. 1356) is amended by adding at the end the following: ``(w) CBP Electronic Visa Update System Account.-- ``(1) Establishment.--There is established in the general fund of the Treasury a separate account, which shall be known as the `CBP Electronic Visa Update System Account' (referred to in this subsection as the `Account'). ``(2) Deposits.--There shall be deposited into the Account an amount equal to the difference between-- ``(A) all of the fees received pursuant to section 100015 of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress); and ``(B) an amount equal to $5 multiplied by the number of payments collected pursuant to such section. ``(3) Appropriation.--Amounts deposited in the Account-- ``(A) are hereby appropriated to make payments and offset program costs in accordance with section 100015 of the Act entitled `An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14' (119th Congress), without further appropriation; and ``(B) shall remain available until expended for any U.S. Customs and Border Protection costs associated with administering the CBP Electronic Visa Update System.''. (2) Remaining fees.--Of the fees collected pursuant to this section, an amount equal to $5 multiplied by the number of payments collected pursuant to this section shall be deposited to the general fund of the Treasury. (d) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100016. FEE FOR ALIENS ORDERED REMOVED IN ABSENTIA. (a) In General.--As partial reimbursement for the cost of arresting an alien described in this section, the Secretary of Homeland Security, except as provided in subsection (c), shall require the payment of a fee, equal to the amount specified in subsection (b) on any alien who-- (1) is ordered removed in absentia pursuant to section 240(b)(5) (8 U.S.C. 1229a(b)(5)); and (2) is subsequently arrested by U.S. Immigration and Customs Enforcement. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $5,000; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- [[Page S3965]] (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Exception.--The fee described in this section shall not apply to any alien who was ordered removed in absentia if such order was rescinded pursuant to section 240(b)(5)(C) (8 U.S.C. 1229a(b)(5)(C)). (d) Disposition of Removal in Absentia Fees.--During each fiscal year-- (1) 50 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Immigration and Customs Enforcement; (B) shall be deposited into the Detention and Removal Office Fee Account; and (C) may be retained and expended by U.S. Immigration and Customs Enforcement without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Immigration and Customs Enforcement pursuant to paragraph (1) shall be deposited into the general fund of the Treasury. (e) No Fee Waiver.--Fees required to be paid under this section shall not be waived or reduced. SEC. 100017. INADMISSIBLE ALIEN APPREHENSION FEE. (a) In General.--In addition to any other fee authorized by law, the Secretary of Homeland Security shall require the payment of a fee, equal to the amount specified in subsection (b), by any inadmissible alien at the time such alien is apprehended between ports of entry. (b) Amount Specified.-- (1) Initial amount.--For fiscal year 2025, the amount specified in this section shall be the greater of-- (A) $5,000; or (B) such amount as the Secretary of Homeland Security may establish, by rule. (2) Annual adjustments for inflation.--During fiscal year 2026, and during each subsequent fiscal year, the amount specified in this section shall be equal to the sum of-- (A) the amount of the fee required under this subsection for the most recently concluded fiscal year; and (B) the product resulting from the multiplication of the amount referred to in subparagraph (A) by the percentage (if any) by which the Consumer Price Index for All Urban Consumers for the month of July preceding the date on which such adjustment takes effect exceeds the Consumer Price Index for All Urban Consumers for the same month of the preceding calendar year, rounded to the next lowest multiple of $10. (c) Disposition of Inadmissible Alien Apprehension Fees.-- During each fiscal year-- (1) 50 percent of the fees collected pursuant to this section-- (A) shall be credited to U.S. Immigration and Customs Enforcement; (B) shall be deposited into the Detention and Removal Office Fee Account; and (C) may be retained and expended by U.S. Immigration and Customs Enforcement without further appropriation; and (2) any amounts collected pursuant to this section that are not credited to U.S. Immigration and Customs Enforcement pursuant to paragraph (1) shall be deposited into the general fund of the Treasury. (d) Disposition of Inadmissible Alien Apprehension Fees.-- All of the fees collected pursuant to this section shall be deposited into the general fund of the Treasury. SEC. 100018. AMENDMENT TO AUTHORITY TO APPLY FOR ASYLUM. Section 208(d)(3) (8 U.S.C. 1158(d)(3)) is amended-- (1) in the first sentence, by striking ``may'' and inserting ``shall''; (2) by striking ``Such fees shall not exceed'' and all that follows and inserting the following: ``Nothing in this paragraph may be construed to limit the authority of the Attorney General to set additional adjudication and naturalization fees in accordance with section 286(m).''. PART II--IMMIGRATION AND LAW ENFORCEMENT FUNDING SEC. 100051. APPROPRIATION FOR THE DEPARTMENT OF HOMELAND SECURITY. In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $2,055,000,000, to remain available through September 30, 2029, for the following purposes: (1) Immigration and enforcement activities.--Hiring and training of additional U.S. Customs and Border Protection agents, and the necessary support staff, to carry out immigration enforcement activities. (2) Departures and removals.--Funding for transportation costs and related costs associated with the departure or removal of aliens. (3) Personnel assignments.--Funding for the assignment of Department of Homeland Security employees and State officers to carry out immigration enforcement activities pursuant to sections 103(a) and 287(g) of the Immigration and Nationality Act (8 U.S.C. 1103(a) and 1357(g)). (4) Background checks.--Hiring additional staff and investing the necessary resources to enhance screening and vetting of all aliens seeking entry into United States, consistent with section 212 of such Act (8 U.S.C. 1182), or intending to remain in the United States, consistent with section 237 of such Act (8 U.S.C. 1227). (5) Protecting alien children from exploitation.--In instances of aliens and alien children entering the United States without a valid visa, funding is provided for the purposes of-- (A) collecting fingerprints, in accordance with section 262 of the Immigration and Nationality Act (8 U.S.C. 1302) and subsections (a)(3) and (b) of section 235 of such Act (8 U.S.C. 1225); and (B) collecting DNA, in accordance with sections 235(d) and 287(b) of the Immigration and Nationality Act (8 U.S.C. 1225(d) and 1357(b)). (6) Transporting and return of aliens from contiguous territory.--Transporting and facilitating the return, pursuant to section 235(b)(2)(C) of the Immigration and Nationality Act (8 U.S.C. 1225(b)(2)(C)), of aliens arriving from contiguous territory. (7) State and local participation.--Funding for State and local participation in homeland security efforts for purposes of-- (A) ending the presence of criminal gangs and criminal organizations throughout the United States; (B) addressing crime and public safety threats; (C) combating human smuggling and trafficking networks throughout the United States; (D) supporting immigration enforcement activities; and (E) providing reimbursement for State and local participation in such efforts. (8) Removal of specified unaccompanied alien children.-- (A) In general.--Funding removal operations for specified unaccompanied alien children. (B) Use of funds.--Amounts made available under this paragraph shall only be used for permitting a specified unaccompanied alien child to withdraw the application for admission of the child pursuant to section 235(a)(4) of the Immigration and Nationality Act (8 U.S.C. 1225(a)(4)). (C) Definitions.--In this paragraph: (i) Specified unaccompanied alien child.--The term ``specified unaccompanied alien child'' means an unaccompanied alien child (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))) who the Secretary of Homeland Security determines on a case-by-case basis-- (I) has been found by an immigration officer at a land border or port of entry of the United States and is inadmissible under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.); (II) has not been a victim of severe forms of trafficking in persons, and there is no credible evidence that such child is at risk of being trafficked upon return of the child to the child's country of nationality or country of last habitual residence; and (III) does not have a fear of returning to the child's country of nationality or country of last habitual residence owing to a credible fear of persecution. (ii) Severe forms of trafficking in persons.--The term ``severe forms of trafficking in persons'' has the meaning given such term in section 103 of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7102). (9) Expedited removal of criminal aliens.--Funding for the expedited removal of criminal aliens, in accordance with the provisions of section 235(b)(1) of the Immigration and Nationality Act (8 U.S.C. 1225(b)(1)). (10) Removal of certain criminal aliens without further hearings.--Funding for the removal of certain criminal aliens without further hearings, in accordance with the provisions of section 235(c) of the Immigration and Nationality Act (8 U.S.C. 1225(c)). (11) Criminal and gang checks for unaccompanied alien children.--Funding for criminal and gang checks of unaccompanied alien children (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))) who are 12 years of age and older, including the examination of such unaccompanied alien children for gang-related tattoos and other gang-related markings. (12) Information technology.--Information technology investments to support immigration purposes, including improvements to fee and revenue collections. SEC. 100052. APPROPRIATION FOR U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT. In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for U.S. Immigration and Customs Enforcement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $29,850,000,000, to remain available through September 30, 2029, for the following purposes: (1) Hiring and training.--Hiring and training additional U.S. Immigration and Customs Enforcement personnel, including officers, agents, investigators, and support staff, to carry out immigration enforcement activities and prioritizing and streamlining the hiring of retired U.S. Immigration and Customs Enforcement personnel. (2) Performance, retention, and signing bonuses.-- (A) In general.--Providing performance, retention, and signing bonuses for qualified U.S. Immigration and Customs Enforcement personnel in accordance with this subsection. [[Page S3966]] (B) Performance bonuses.--The Director of U.S. Immigration and Customs Enforcement, at the Director's discretion, may provide performance bonuses to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who demonstrates exemplary service. (C) Retention bonuses.--The Director of U.S. Immigration and Customs Enforcement may provide retention bonuses to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who commits to 2 years of additional service with U.S. Immigration and Customs Enforcement to carry out immigration enforcement activities. (D) Signing bonuses.--The Director of U.S. Immigration and Customs Enforcement may provide a signing bonus to any U.S. Immigration and Customs Enforcement agent, officer, or attorney who-- (i) is hired on or after the date of the enactment of this Act; and (ii) who commits to 5 years of service with U.S. Immigration and Customs Enforcement to carry out immigration enforcement activities. (E) Service agreement.--In providing a retention or signing bonus under this paragraph, the Director of U.S. Immigration and Customs Enforcement shall provide each qualifying individual with a written service agreement that includes-- (i) the commencement and termination dates of the required service period (or provisions for the determination of such dates); (ii) the amount of the bonus; and (iii) any other term or condition under which the bonus is payable, subject to the requirements of this paragraph, including-- (I) the conditions under which the agreement may be terminated before the agreed-upon service period has been completed; and (II) the effect of a termination described in subclause (I). (3) Recruitment, hiring, and onboarding.--Facilitating the recruitment, hiring, and onboarding of additional U.S. Immigration and Customs Enforcement personnel to carry out immigration enforcement activities, including by-- (A) investing in information technology, recruitment, and marketing; and (B) hiring staff necessary to carry out information technology, recruitment, and marketing activities. (4) Transportation.--Funding for transportation costs and related costs associated with alien departure or removal operations. (5) Information technology.--Funding for information technology investments to support enforcement and removal operations, including improvements to fee collections. (6) Facility upgrades.--Funding for facility upgrades to support enforcement and removal operations. (7) Fleet modernization.--Funding for fleet modernization to support enforcement and removal operations. (8) Family unity.--Promoting family unity by-- (A) maintaining the care and custody, during the period in which a charge described in clause (i) is pending, in accordance with applicable laws, of an alien who-- (i) is charged only with a misdemeanor offense under section 275(a) of the Immigration and Nationality Act (8 U.S.C. 1325(a)); and (ii) entered the United States with the alien's child who has not attained 18 years of age; and (B) detaining such an alien with the alien's child. (9) 287(g) agreements.--Expanding, facilitating, and implementing agreements under section 287(g) of the Immigration and Nationality Act (8 U.S.C. 1357(g)). (10) Victims of immigration crime engagement office.-- Hiring and training additional staff to carry out the mission of the Victims of Immigration Crime Engagement Office and for providing nonfinancial assistance to the victims of crimes perpetrated by aliens who are present in the United States without authorization. (11) Office of the principal legal advisor.--Hiring additional attorneys and the necessary support staff within the Office of the Principal Legal Advisor to represent the Department of Homeland Security in immigration enforcement and removal proceedings. SEC. 100053. APPROPRIATION FOR FEDERAL LAW ENFORCEMENT TRAINING CENTERS. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Secretary of Homeland Security for the Federal Law Enforcement Training Centers for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $750,000,000, to remain available until September 30, 2029, for the purposes described in subsections (b) and (c). (b) Training.--Not less than $285,000,000 of the amounts available under subsection (a) shall be for supporting the training of newly hired Federal law enforcement personnel employed by the Department of Homeland Security and State and local law enforcement agencies operating in support of the Department of Homeland Security. (c) Facilities.--Not more than $465,000,000 of the amounts available under subsection (a) shall be for procurement, construction and maintenance of, improvements to, training equipment for, and related expenses, of facilities of the Federal Law Enforcement Training Centers. SEC. 100054. APPROPRIATION FOR THE DEPARTMENT OF JUSTICE. In addition to amounts otherwise available, there is appropriated to the Attorney General for the Department of Justice for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $3,330,000,000, to remain available through September 30, 2029, for the following purposes: (1) Executive office for immigration review.-- (A) In general.--Hiring immigration judges and necessary support staff for the Executive Office for Immigration Review to address the backlog of petitions, cases, and removals. (B) Staffing level.--Effective November 1, 2028, the Executive Office for Immigration Review shall be comprised of not more than 800 immigration judges, along with the necessary support staff. (2) Combating drug trafficking.--Funding efforts to combat drug trafficking (including trafficking of fentanyl and its precursor chemicals) and illegal drug use. (3) Prosecution of immigration matters.--Funding efforts to investigate and prosecute immigration matters, gang-related crimes involving aliens, child trafficking and smuggling involving aliens within the United States, unlawful voting by aliens, violations of the Alien Registration Act, 1940 (54 Stat., chapter 439), and violations of or fraud relating to title IV of the Personal Responsibility and Work Opportunity Act of 1996 (Public Law 104-193; 110 Stat. 2277), including hiring additional Department of Justice personnel to investigate and prosecute such matters. (4) Nonparty or other injunctive relief.--Hiring additional attorneys and necessary support staff for the purpose of continuing implementation of assignments by the Attorney General pursuant to sections 516, 517, and 518 of title 28, United States Code, to conduct litigation and attend to the interests of the United States in suits pending in a court of the United States or in a court of a State in suits seeking nonparty or other injunctive relief against the Federal Governmeogies.nt. (5) Edward byrne memorial justice assistance grant program and office of community oriented policing.-- (A) In general.--Increasing funding for the Edward Byrne Memorial Justice Assistance Grant Program and the Office of Community Oriented Policing for initiatives associated with-- (i) investigating and prosecuting violent crime; (ii) criminal enforcement initiatives; and (iii) immigration enforcement and removal efforts. (B) Limitations.--No funds made available under this subsection shall be made available to community violence intervention and prevention initiative programs. (C) Eligibility.--To be eligible to receive funds made available under this subsection, a State or local government shall be in full compliance, as determined by the Attorney General, with section 642 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1373). (6) Fiscally responsible lawsuit settlements.--Hiring additional attorneys and necessary support staff for the purpose of maximizing lawsuit settlements that require the payment of fines and penalties to the Treasury of the United States in lieu of providing for the payment to any person or entity other than the United States, other than a payment that provides restitution or otherwise directly remedies actual harm directly and proximately caused by the party making the payment, or constitutes payment for services rendered in connection with the case. (7) Compensation for incarceration of criminal aliens.-- (A) In general.--Providing compensation to a State or political subdivision of a State for the incarceration of criminal aliens. (B) Use of funds.--The amounts made available under subparagraph (A) shall only be used to compensate a State or political subdivision of a State, as appropriate, with respect to the incarceration of an alien who-- (i) has been convicted of a felony or 2 or more misdemeanors; and (ii)(I) entered the United States without inspection or at any time or place other than as designated by the Secretary of Homeland Security; (II) was the subject of removal proceedings at the time the alien was taken into custody by the State or a political subdivision of the State; or (III) was admitted as a nonimmigrant and, at the time the alien was taken into custody by the State or a political subdivision of the State, has failed to maintain the nonimmigrant status in which the alien was admitted, or to which it was changed, or to comply with the conditions of any such status. (C) Limitation.--Amounts made available under this subsection shall be distributed to more than 1 State. The amounts made available under subparagraph (A) may not be used to compensate any State or political subdivision of a State if the State or political subdivision of the State prohibits or in any way restricts a Federal, State, or local government entity, official, or other personnel from doing any of the following: (i) Complying with the immigration laws (as defined in section 101(a)(17) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(17))). (ii) Assisting or cooperating with Federal law enforcement entities, officials, or other personnel regarding the enforcement of the immigration laws. [[Page S3967]] (iii) Undertaking any of the following law enforcement activities as such activities relate to information regarding the citizenship or immigration status, lawful or unlawful, the inadmissibility or deportability, and the custody status, of any individual: (I) Making inquiries to any individual to obtain such information regarding such individual or any other individuals. (II) Notifying the Federal Government regarding the presence of individuals who are encountered by law enforcement officials or other personnel of a State or political subdivision of a State. (III) Complying with requests for such information from Federal law enforcement entities, officials, or other personnel. SEC. 100055. BRIDGING IMMIGRATION-RELATED DEFICITS EXPERIENCED NATIONWIDE REIMBURSEMENT FUND. (a) Establishment.--There is established within the Department of Justice a fund, to be known as the ``Bridging Immigration-related Deficits Experienced Nationwide (BIDEN) Reimbursement Fund'' (referred to in this section as the ``Fund''). (b) Use of Funds.--The Attorney General shall use amounts appropriated or otherwise made available for the Fund for grants to eligible States, State agencies, and units of local government, pursuant to their existing statutory authorities, for any of the following purposes: (1) Locating and apprehending aliens who have committed a crime under Federal, State, or local law, in addition to being unlawfully present in the United States. (2) Collection and analysis of law enforcement investigative information within the United States to counter gang or other criminal activity. (3) Investigating and prosecuting-- (A) crimes committed by aliens within the United States; and (B) drug and human trafficking crimes committed within the United States. (4) Court operations related to the prosecution of-- (A) crimes committed by aliens; and (B) drug and human trafficking crimes. (5) Temporary criminal detention of aliens. (6) Transporting aliens described in paragraph (1) within the United States to locations related to the apprehension, detention, and prosecution of such aliens. (7) Vehicle maintenance, logistics, transportation, and other support provided to law enforcement agencies by a State agency to enhance the ability to locate and apprehend aliens who have committed crimes under Federal, State, or local law, in addition to being unlawfully present in the United States. (c) Appropriation.--In addition to amounts otherwise available for the purposes described in subsection (b), there is appropriated to the Attorney General for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, not to exceed $3,500,000,000, to remain available until September 30, 2028, for the Fund for qualified and documented expenses that achieve any such purpose. (d) Grant Eligibility of Completed, Ongoing, or New Activities.--The Attorney General may provide grants under this section to State agencies and units of local government for expenditures made by State agencies or units of local government for completed, ongoing, or new activities determined to be eligible for such grant funding that occurred on or after January 20, 2021. Amounts made available under this section shall be distributed to more than 1 State. SEC. 100056. APPROPRIATION FOR THE BUREAU OF PRISONS. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Prisons for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $5,000,000,000, to remain available through September 30, 2029, for the purposes described in subsections (b) and (c). (b) Salaries and Benefits.--Not less than $3,000,000,000 of the amounts made available under subsection (a) shall be for hiring and training of new employees, including correctional officers, medical professionals, and facilities and maintenance employees, the necessary support staff, and for additional funding for salaries and benefits for the current workforce of the Bureau of Prisons. (c) Facilities.--Not more than $2,000,000,000 of the amounts made available under subsection (a) shall be for addressing maintenance and repairs to facilities maintained or operated by the Bureau of Prisons. SEC. 100057. APPROPRIATION FOR THE UNITED STATES SECRET SERVICE. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Director of the United States Secret Service (referred to in this section as the ``Director'') for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,170,000,000, to remain available through September 30, 2029, for the purposes described in subsection (b). (b) Use of Funds.--Amounts made available under subsection (a) may only be used for-- (1) additional United States Secret Service resources, including personnel, training facilities, programming, and technology; and (2) performance, retention, and signing bonuses for qualified United States Secret Service personnel in accordance with subsection (c). (c) Performance, Retention, and Signing Bonuses.-- (1) Performance bonuses.--The Director, at the Director's discretion, may provide performance bonuses to any Secret Service agent, officer, or analyst who demonstrates exemplary service. (2) Retention bonuses.--The Director may provide retention bonuses to any Secret Service agent, officer, or analyst who commits to 2 years of additional service with the Secret Service. (3) Signing bonuses.--The Director may provide a signing bonus to any Secret Service agent, officer, or analyst who-- (A) is hired on or after the date of the enactment of this Act; and (B) commits to 5 years of service with the United States Secret Service. (4) Service agreement.--In providing a retention or signing bonus under this subsection, the Director shall provide each qualifying individual with a written service agreement that includes-- (A) the commencement and termination dates of the required service period (or provisions for the determination of such dates); (B) the amount of the bonus; and (C) any other term or condition under which the bonus is payable, subject to the requirements under this subsection, including-- (i) the conditions under which the agreement may be terminated before the agreed-upon service period has been completed; and (ii) the effect of a termination described in clause (i). Subtitle B--Judiciary Matters SEC. 100101. APPROPRIATION TO THE ADMINISTRATIVE OFFICE OF THE UNITED STATES COURTS. In addition to amounts otherwise available, there is appropriated to the Director of the Administrative Office of the United States Courts, out of amounts in the Treasury not otherwise appropriated, $1,250,000 for each of fiscal years 2025 through 2028, for the purpose of continuing analyses and reporting pursuant to section 604(a)(2) of title 28, United States Code, to examine the state of the dockets of the courts and to prepare and transmit statistical data and reports as to the business of the courts, including an assessment of the number, frequency, and related metrics of judicial orders issuing non-party relief against the Federal Government and their aggregate cost impact on the taxpayers of the United States, as determined by each court when imposing securities for the issuance of preliminary injunctions or temporary restraining orders against the Federal Government pursuant to rule 65(c) of the Federal Rules of Civil Procedure. SEC. 100102. APPROPRIATION TO THE FEDERAL JUDICIAL CENTER. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Director of the Federal Judicial Center, out of amounts in the Treasury not otherwise appropriated, $1,000,000 for each of fiscal years 2025 through 2028, for the purpose described in subsection (b). (b) Use of Funds.--The Federal Judicial Center shall use the amounts appropriated under subsection (a) for the continued implementation of programs pursuant to section 620(b)(3) of title 28, United States Code, to stimulate, create, develop, and conduct programs of continuing education and training for personnel of the judicial branch, including training on the absence of constitutional and statutory authority supporting legal claims that seek non-party relief against the Federal Government, and strategic approaches for mitigating the aggregate cost impact of such legal claims on the taxpayers of the United States. Subtitle C--Radiation Exposure Compensation Matters SEC. 100201. EXTENSION OF FUND. Section 3(d) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) by striking the first sentence and inserting ``The Fund shall terminate on December 31, 2028.''; and (2) by striking ``the end of that 2-year period'' and inserting ``such date''. SEC. 100202. CLAIMS RELATING TO ATMOSPHERIC TESTING. (a) Leukemia Claims Relating to Trinity Test in New Mexico and Tests at the Nevada Site.--Section 4(a)(1)(A) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in clause (i)-- (A) in subclause (I), by striking ``October 31, 1958'' and inserting ``November 6, 1962''; (B) in subclause (II)-- (i) by striking ``in the affected area'' and inserting ``in an affected area''; and (ii) by striking ``or'' after the semicolon; (C) by redesignating subclause (III) as subclause (IV); and (D) by inserting after subclause (II) the following: ``(III) was physically present in an affected area for a period of at least 1 year during the period beginning on September 24, 1944, and ending on November 6, 1962; or''; and (2) in clause (ii)(I), by striking ``physical presence described in subclause (I) or (II) of clause (i) or onsite participation described in clause (i)(III)'' and inserting ``physical presence described in subclause (I), (II), or (III) of clause (i) or onsite participation described in clause (i)(IV)''. (b) Amounts for Claims Related to Leukemia.--Section 4(a)(1) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in subparagraph (A), by striking ``an amount'' and inserting ``the amount''; [[Page S3968]] (2) by striking subparagraph (B) and inserting the following: ``(B) Amount.--If the conditions described in subparagraph (C) are met, an individual who is described in subparagraph (A) shall receive $100,000.''; and (3) in subparagraph (C), by adding at the end the following: ``(iv) No payment under this paragraph previously has been made to the individual, on behalf of the individual, or to a survivor of the individual.''. (c) Conditions for Claims Related to Leukemia.--Section 4(a)(1)(C) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) by striking clause (i); and (2) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively. (d) Specified Diseases Claims Relating to Trinity Test in New Mexico and Tests at the Nevada Site.--Section 4(a)(2) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in subparagraph (A)-- (A) by striking ``in the affected area'' and inserting ``in an affected area''; (B) by striking ``2 years'' and inserting ``1 year''; and (C) by striking ``October 31, 1958,'' and inserting ``November 6, 1962;''; (2) in subparagraph (B)-- (A) by striking ``in the affected area'' and inserting ``in an affected area''; and (B) by striking ``, or'' at the end and inserting a semicolon; (3) by redesignating subparagraph (C) as subparagraph (D); and (4) by inserting after subparagraph (B) the following: ``(C) was physically present in an affected area for a period of at least 1 year during the period beginning on September 24, 1944, and ending on November 6, 1962; or''. (e) Amounts for Claims Related to Specified Diseases.-- Section 4(a)(2) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended in the matter following subparagraph (D) (as redesignated by subsection (d) of this section)-- (1) by striking ``$50,000 (in the case of an individual described in subparagraph (A) or (B)) or $75,000 (in the case of an individual described in subparagraph (C)),'' and inserting ``$100,000''; (2) in clause (i), by striking ``, and'' and inserting a semicolon; (3) in clause (ii), by striking the period at the end and inserting ``; and''; and (4) by adding at the end the following: ``(iii) no payment under this paragraph previously has been made to the individual, on behalf of the individual, or to a survivor of the individual.''. (f) Downwind States.--Section 4(b)(1) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended to read as follows: ``(1) `affected area' means-- ``(A) except as provided under subparagraph (B)-- ``(i) the States of New Mexico, Utah, and Idaho; ``(ii) in the State of Nevada, the counties of White Pine, Nye, Lander, Lincoln, Eureka, and that portion of Clark County that consists of townships 13 through 16 at ranges 63 through 71; and ``(iii) in the State of Arizona, the counties of Coconino, Yavapai, Navajo, Apache, and Gila, and Mohave; and ``(B) with respect to a claim by an individual under subsection (a)(1)(A)(i)(III) or subsection (a)(2)(C), only New Mexico; and''. SEC. 100203. CLAIMS RELATING TO URANIUM MINING. (a) Employees of Mines and Mills.--Section 5(a)(1)(A)(i) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended to read as follows: ``(i)(I) was employed in a uranium mine or uranium mill (including any individual who was employed in the transport of uranium ore or vanadium-uranium ore from such mine or mill) located in Colorado, New Mexico, Arizona, Wyoming, South Dakota, Washington, Utah, Idaho, North Dakota, Oregon, or Texas at any time during the period beginning on January 1, 1942, and ending on December 31, 1990; or ``(II) was employed as a core driller in a State referred to in subclause (I) during the period described in such subclause; and''. (b) Miners.--Section 5(a)(1)(A)(ii)(I) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended by inserting ``or renal cancer or any other chronic renal disease, including nephritis and kidney tubal tissue injury'' after ``nonmalignant respiratory disease''. (c) Millers, Core Drillers, and Ore Transporters.--Section 5(a)(1)(A)(ii)(II) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) by inserting ``, core driller,'' after ``was a miller''; (2) by inserting ``, or was involved in remediation efforts at such a uranium mine or uranium mill,'' after ``ore transporter''; (3) by inserting ``(I)'' after ``clause (i)''; and (4) by striking ``or renal cancers'' and all that follows and inserting ``or renal cancer or any other chronic renal disease, including nephritis and kidney tubal tissue injury; or''. (d) Combined Work Histories.--Section 5(a)(1)(A)(ii) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note), as amended by subsection (c), is further amended-- (1) in subclause (I), by striking ``or'' at the end; and (2) by adding at the end the following: ``(III)(aa) does not meet the conditions of subclause (I) or (II); ``(bb) worked, during the period described in clause (i)(I), in 2 or more of the following positions: miner, miller, core driller, and ore transporter; ``(cc) meets the requirements under paragraph (4) or (5); and ``(dd) submits written medical documentation that the individual developed lung cancer, a nonmalignant respiratory disease, renal cancer, or any other chronic renal disease, including nephritis and kidney tubal tissue injury after exposure to radiation through work in one or more of the positions referred to in item (bb);''. (e) Special Rules Relating to Combined Work Histories.-- Section 5(a) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended by adding at the end the following: ``(4) Special rule relating to combined work histories for individuals with at least one year of experience.--An individual meets the requirements under this paragraph if the individual worked in one or more of the positions referred to in paragraph (1)(A)(ii)(III)(bb) for a period of at least one year during the period described in paragraph (1)(A)(i)(I). ``(5) Special rule relating to combined work histories for miners.--An individual meets the requirements of this paragraph if the individual, during the period described in paragraph (1)(A)(i)(I), worked as a miner and was exposed to such number of working level months that the Attorney General determines, when combined with the exposure of such individual to radiation through work as a miller, core driller, or ore transporter during the period described in paragraph (1)(A)(i)(I), results in such individual being exposed to a total level of radiation that is greater or equal to the level of exposure of an individual described in paragraph (4).''. (f) Definition of Core Driller.--Section 5(b) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended-- (1) in paragraph (7), by striking ``and'' at the end; (2) in paragraph (8), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following: ``(9) the term `core driller' means any individual employed to engage in the act or process of obtaining cylindrical rock samples of uranium or vanadium by means of a borehole drilling machine for the purpose of mining uranium or vanadium.''. SEC. 100204. CLAIMS RELATING TO MANHATTAN PROJECT WASTE.-- The Radiation Exposure Compensation Act (Public Law 101- 426; 42 U.S.C. 2210 note) is amended by inserting after section 5 the following: ``SEC. 5A. CLAIMS RELATING TO MANHATTAN PROJECT WASTE. ``(a) In General.--A claimant shall receive compensation for a claim made under this Act, as described in subsection (b) or (c), if-- ``(1) a claim for compensation is filed with the Attorney General-- ``(A) by an individual described in paragraph (2); or ``(B) on behalf of that individual by an authorized agent of that individual, if the individual is deceased or incapacitated, such as-- ``(i) an executor of estate of that individual; or ``(ii) a legal guardian or conservator of that individual; ``(2) that individual, or if applicable, an authorized agent of that individual, demonstrates that such individual-- ``(A) was physically present in an affected area for a period of at least 2 years after January 1, 1949; and ``(B) contracted a specified disease after such period of physical presence; ``(3) the Attorney General certifies that the identity of that individual, and if applicable, the authorized agent of that individual, is not fraudulent or otherwise misrepresented; and ``(4) the Attorney General determines that the claimant has satisfied the applicable requirements of this Act. ``(b) Losses Available to Living Affected Individuals.-- ``(1) In general.--In the event of a claim qualifying for compensation under subsection (a) that is submitted to the Attorney General to be eligible for compensation under this section at a time when the individual described in subsection (a)(2) is living, the amount of compensation under this section shall be in an amount that is the greater of $50,000 or the total amount of compensation for which the individual is eligible under paragraph (2). ``(2) Losses due to medical expenses.--A claimant described in paragraph (1) shall be eligible to receive, upon submission of contemporaneous written medical records, reports, or billing statements created by or at the direction of a licensed medical professional who provided contemporaneous medical care to the claimant, additional compensation in the amount of all documented out-of-pocket medical expenses incurred as a result of the specified disease suffered by that claimant, such as any medical expenses not covered, paid for, or reimbursed through-- [[Page S3969]] ``(A) any public or private health insurance; ``(B) any employee health insurance; ``(C) any workers' compensation program; or ``(D) any other public, private, or employee health program or benefit. ``(3) Limitation.--No claimant is eligible to receive compensation under this subsection with respect to medical expenses unless the submissions described in paragraph (2) with respect to such expenses are submitted on or before December 31, 2028. ``(c) Payments to Beneficiaries of Deceased Individuals.-- In the event that an individual described in subsection (a)(2) who qualifies for compensation under subsection (a) is deceased at the time of submission of the claim-- ``(1) a surviving spouse may, upon submission of a claim and records sufficient to satisfy the requirements of subsection (a) with respect to the deceased individual, receive compensation in the amount of $25,000; or ``(2) in the event that there is no surviving spouse, the surviving children, minor or otherwise, of the deceased individual may, upon submission of a claim and records sufficient to satisfy the requirements of subsection (a) with respect to the deceased individual, receive compensation in the total amount of $25,000, paid in equal shares to each surviving child. ``(d) Affected Areas.--For purposes of this section, the term `affected area' means-- ``(1) in the State of Missouri, the ZIP Codes of 63031, 63033, 63034, 63042, 63045, 63074, 63114, 63135, 63138, 63044, 63121, 63140, 63145, 63147, 63102, 63304, 63134, 63043, 63341, 63368, and 63367; ``(2) in the State of Tennessee, the ZIP Codes of 37716, 37840, 37719, 37748, 37763, 37828, 37769, 37710, 37845, 37887, 37829, 37854, 37830, and 37831; ``(3) in the State of Alaska, the ZIP Codes of 99546 and 99547; and ``(4) in the State of Kentucky, the ZIP Codes of 42001, 42003, and 42086. ``(e) Specified Disease.--For purposes of this section, the term `specified disease' means any of the following: ``(1) Any leukemia, provided that the initial exposure occurred after 20 years of age and the onset of the disease was at least 2 years after first exposure. ``(2) Any of the following diseases, provided that the onset was at least 2 years after the initial exposure: ``(A) Multiple myeloma. ``(B) Lymphoma, other than Hodgkin's disease. ``(C) Primary cancer of the-- ``(i) thyroid; ``(ii) male or female breast; ``(iii) esophagus; ``(iv) stomach; ``(v) pharynx; ``(vi) small intestine; ``(vii) pancreas; ``(viii) bile ducts; ``(ix) gall bladder; ``(x) salivary gland; ``(xi) urinary bladder; ``(xii) brain; ``(xiii) colon; ``(xiv) ovary; ``(xv) bone; ``(xvi) renal; ``(xvii) liver, except if cirrhosis or hepatitis B is indicated; or ``(xviii) lung. ``(f) Physical Presence.-- ``(1) In general.--For purposes of this section, the Attorney General may not determine that a claimant has satisfied the requirements under subsection (a) unless demonstrated by submission of-- ``(A) contemporaneous written residential documentation or at least 1 additional employer-issued or government-issued document or record that the claimant, for at least 2 years after January 1, 1949, was physically present in an affected area; or ``(B) other documentation determined by the Attorney General to demonstrate that the claimant, for at least 2 years after January 1, 1949, was physically present in an affected area. ``(2) Types of physical presence.--For purposes of determining physical presence under this section, a claimant shall be considered to have been physically present in an affected area if-- ``(A) the claimant's primary residence was in the affected area; ``(B) the claimant's place of employment was in the affected area; or ``(C) the claimant attended school in the affected area. ``(g) Disease Contraction in Affected Areas.--For purposes of this section, the Attorney General may not determine that a claimant has satisfied the requirements under subsection (a) unless the claimant submits-- ``(1) written medical records or reports created by or at the direction of a licensed medical professional, created contemporaneously with the provision of medical care to the claimant, that the claimant, after a period of physical presence in an affected area, contracted a specified disease; or ``(2) other documentation determined by the Attorney General to demonstrate that the claimant contracted a specified disease after a period of physical presence in an affected area.''. SEC. 100205. LIMITATIONS ON CLAIMS. Section 8(a) of the Radiation Exposure Compensation Act (Public Law 101-426; 42 U.S.C. 2210 note) is amended by striking ``2 years after the date of enactment of the RECA Extension Act of 2022'' and inserting ``December 31, 2027''. ______ SA 2370. Ms. ERNST submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. CHARGING LABOR ORGANIZATIONS FOR USE OF FEDERAL RESOURCES. (a) In General.--Subchapter IV of chapter 71 of title 5, United States Code, is amended by inserting after section 7135 the following: ``Sec. 7136. Charging labor organizations for use of Federal resources ``(a) Definitions.--In this section: ``(1) Agency business.--The term `agency business' means work performed by employees on behalf of an agency or under the direction and control of the agency. ``(2) Agency resources provided for union use.--The term `agency resources provided for union use'-- ``(A) means the resources of an agency, other than the time of employees in a duty status, that such agency provides to labor representatives for purposes pertaining to matters covered by this chapter, including agency office space, parking space, equipment, and reimbursement for expenses incurred while on union time or otherwise performing non- agency business; and ``(B) does not include any resource to the extent that the resource is used for agency business. ``(3) Labor organization.--Notwithstanding section 7103, the term `labor organization' means a labor organization recognized as an exclusive representative of employees of an agency under this chapter or as a representative of agency employees under any system established by the Transportation Security Administration Administrator pursuant to section 111(d) of the Aviation and Transportation Security Act (49 U.S.C. 44935 note). ``(4) Hourly rate of pay.--The term `hourly rate of pay' means the total cost to an agency of employing an employee in a pay period or pay periods, including wages, salary, and other cash payments, agency contributions to employee health and retirement benefits, employer payroll tax payments, paid leave accruals, and the cost to the agency for other benefits, divided by the number of hours that employee worked in that pay period or pay periods. ``(5) Labor representative.--The term `labor representative' means an employee of an agency serving in any official or other representative capacity for a labor organization (including as any officer or steward of a labor organization) that is the exclusive representative of employees of such agency under this chapter or is the representative of employees under any system established by the Transportation Security Administration Administrator pursuant to section 111(d) of the Aviation and Transportation Security Act (49 U.S.C. 44935 note). ``(6) Union time.--The term `union time' means the time an employee of an agency who is a labor representative for a labor organization spends performing non-agency business while on duty, either in service of that labor organization or otherwise acting in the capacity as an employee representative, including official time authorized under section 7131. ``(b) Fees for Use of Agency Resources.-- ``(1) In general.--The head of each agency shall charge each labor organization recognized as an exclusive representative of employees of that agency a fee each calendar quarter for the use of the resources of that agency during that quarter. ``(2) Fee calculation.--The amount of the fee the head of an agency charges a labor organization under paragraph (1) with respect to a calendar quarter shall be equal to the amount that is the sum of-- ``(A) the value of the union time of each labor representative for that labor organization while employed by that agency in that quarter; and ``(B) the value of agency resources provided for union use to that labor organization by that agency in that quarter. ``(3) Timing.-- ``(A) Notice.--Not later than 30 days after the end of each calendar quarter, the head of each agency shall submit to each labor organization charged a fee by that agency head under paragraph (1) with respect to that calendar quarter a notice stating the amount of that fee. ``(B) Due date.--Payment of a fee charged under paragraph (1) is due not later than 60 days after the date on which the labor organization charged the fee receives a notice under subparagraph (A) with respect to that fee. ``(4) Payment.-- ``(A) In general.--Payment of a fee charged under paragraph (1) shall be made to the head of the agency that charged the fee. ``(B) Transfer to general fund.--The head of an agency shall transfer each payment of a fee charged under paragraph (1) that the agency head receives to the general fund of the Treasury. ``(c) Value Determinations.-- ``(1) In general.--The head of an agency charging a labor organization a fee under [[Page S3970]] subsection (b) shall determine the value of union time used by labor representatives and the value of agency resources provided for union use for the purposes of paragraph (2) of that subsection in accordance with this subsection. ``(2) Values.--For the purposes of paragraph (2) of subsection (b), with respect to a fee charged to a labor organization by the head of an agency under paragraph (1) of that subsection-- ``(A) the value of the union time of a labor representative during a calendar quarter is equal to amount that is the product of the hourly rate of pay of that labor representative paid by that agency and the number of hours of union time of that labor representative during that calendar quarter during which that labor representative was on duty as an employee of that agency; and ``(B) that agency head shall determine the value of agency resources provided for union use during a calendar quarter using rates established by the General Services Administration, where applicable, or to the extent that those rates are inapplicable to the use of those resources, the market rate for the use of those resources, except that with respect to resources used for both agency business and for purposes pertaining to matters covered by this chapter, only the value of the portion of the use of those resources for the business of that labor organization shall be included.''. ______ SA 2371. Ms. ERNST submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. CLOSURE AND SALE OF UNDERUTILIZED FEDERAL BUILDINGS. (a) Consolidation; Sale.-- (1) Consolidation.--Not later than 18 months after the date of enactment of this Act, any Federal agency located within a Federal building described in paragraph (2) as of that date of enactment shall vacate the applicable Federal building and relocate to another Federal building. (2) Sale.--Not later than 2 years after the vacancy of existing Federal agencies in accordance with paragraph (1), and subject to subsection (b)(2), the Administrator of General Services (referred to in this section as the ``Administrator'') shall sell for fair market value at highest and best use the following Federal buildings: (A) The Department of Agriculture South Building, located at 1400 Independence Avenue SW in Washington, DC. (B) The Hubert H. Humphrey Federal Building, located at 200 Independence Avenue SW in Washington, DC. (C) The Frances Perkins Federal Building, located at 200 Constitution Avenue NW in Washington, DC. (D) The James V. Forrestal Building, located at 1000 Independence Avenue SW in Washington, DC. (E) The Theodore Roosevelt Federal Building, located at 1900 E. Street NW in Washington, DC. (F) The Robert C. Weaver Federal Building, located at 451 7th Street SW in Washington, DC. (b) Prohibition on Foreign Ownership.-- (1) Definitions.--In this subsection, the terms ``beneficial owner'', ``foreign entity'', and ``foreign person'' have the meanings given those terms in section 2 of the Secure Federal LEASEs Act (40 U.S.C. 585 note; Public Law 116-276). (2) Prohibition.--In conducting the sale required under subsection (a)(2), the Administrator may not sell any Federal building described in that subsection to any foreign person, any foreign entity, or any entity of which a foreign person is a beneficial owner. (c) Net Proceeds.-- (1) In general.--Of the net proceeds received from the sale required under subsection (a)(2)-- (A) such amount as may be required to implement this section, as determined by the Administrator, shall be deposited into an account in the Federal Buildings Fund established by section 592(a) of title 40, United States Code (referred to in this subsection as the ``Fund''); and (B) any additional amounts after the deposit required under subparagraph (A) shall be deposited into the general fund of the Treasury for purposes of reducing the deficit. (2) Future appropriation.--On deposit of amounts into the Fund under paragraph (1)(A), those amounts may be expended only subject to a specific future appropriation. (d) Prohibition on Additional Property Acquisition.--No other building or property may be purchased or leased by the Administrator or any Federal agency or department on a short- term or long-term basis as part of the closing or consolidation of the Federal agencies impacted by the sale required under subsection (a)(2). (e) Exemption From Certain Requirements.--The sale required under subsection (a)(2) shall be exempt from the requirements of-- (1) section 501 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11411); (2) the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); (3) division A of subtitle III of title 54, United States Code (formerly known as the ``National Historic Preservation Act''); and (4) chapters 5 and 87 of title 40, United States Code. ______ SA 2372. Ms. ERNST submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. ENDING UNEMPLOYMENT PAYMENTS TO JOBLESS MILLIONAIRES. (a) Prohibition on Use of Federal Funds.-- (1) In general.--No Federal funds may be used-- (A) to make payments of unemployment compensation benefits under an unemployment compensation program of the United States in a year to an individual whose wages during the individual's base period are equal to or exceed $1,000,000; or (B) for any administrative costs associated with making payments described in subparagraph (A). (2) Compliance.-- (A) Self-certification.--Any application for unemployment compensation under an unemployment compensation program of the United States shall include a form or procedure for an individual applicant to certify that such individual's wages during the individual's base period do not equal or exceed $1,000,000. (B) Verification.--Each State agency that is responsible for administering any unemployment compensation program of the United States shall utilize available systems to verify wage eligibility by assessing claimant income to the degree possible. (3) Recovery of overpayments.--Each State agency that is responsible for administering any unemployment compensation program of the United States shall require individuals who have received amounts of unemployment compensation under such a program to which they were not entitled to repay such amounts. (4) Effective date.--The prohibition under paragraph (1) shall apply to weeks of unemployment beginning on or after the date of the enactment of this Act. (b) Unemployment Compensation Program of the United States Defined.--In this section, the term ``unemployment compensation program of the United States'' means-- (1) unemployment compensation for Federal civilian employees under subchapter I of chapter 85 of title 5, United States Code; (2) unemployment compensation for ex-servicemembers under subchapter II of chapter 85 of title 5, United States Code; (3) extended benefits under the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note); (4) any Federal temporary extension of unemployment compensation; (5) any Federal program that increases the weekly amount of unemployment compensation payable to individuals; and (6) any other Federal program providing for the payment of unemployment compensation, as determined by the Secretary of Labor. ______ SA 2373. Ms. ERNST submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. REPEAL AND RESCISSION OF FUNDS. The unobligated balances of amounts appropriated or otherwise made available by sections 70002 and 70003 of Public Law 117-169 (commonly referred to as the ``Inflation Reduction Act''), as of the date of enactment of this Act are rescinded. ______ SA 2374. Ms. ERNST submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. QUALITY CONTROL ZERO TOLERANCE. Section 16(c)(1)(A)(ii) of the Food and Nutrition Act 25 of 2008 (7 U.S.C. 2025(c)(1)(A)(ii)) is amended-- (1) in subclause (I), by striking ``and'' at the end; (2) in subclause (II)-- (A) by striking ``fiscal year thereafter'' and inserting ``of fiscal years 2015 through 2025''; and (B) by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following: ``(III) for each fiscal year thereafter, $0.''. ______ SA 2375. Mr. REED submitted an amendment intended to be proposed by [[Page S3971]] him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title II, insert the following: SEC. __. PROHIBITION ON USE OF FUNDS FOR CLASSIFIED PROGRAMS. None of the funds appropriated by this title may be made available for classified programs. ______ SA 2376. Mr. KAINE submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Beginning on page 499, strike line 4 and all that follows through page 579, line 16, and insert the following: SEC. ___. ADJUSTMENT TO CORPORATE TAX RATE. (a) In General.--Section 11(b) is amended by striking ``21 percent'' and inserting ``25 percent''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2377. Mr. KAINE submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike subtitle A of title I. Strike chapter 1 of subtitle B of title VII. Strike section 70106 and insert the following: SEC. 70106. MODIFICATIONS TO INCOME TAX RATES. (a) 39.6 Percent Rate Bracket.--Section 1(j)(2) is amended by redesignating subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E) the following new subparagraph: ``(F) 39.6 percent rate bracket.--Notwithstanding subparagraphs (A) through (E), in prescribing the tables under this subsection for purposes of paragraph (3)(B)-- ``(i) the excess of taxable income over $1,000,000 ($500,000, in the case of married individuals filing separate returns), if any, shall be taxed at a rate of 39.6 percent, and ``(ii) paragraph (3)(B)(i) shall be applied with respect to such $1,000,000 and $500,000 amounts by substituting `2024' for `2017'.''. (b) Adjustment to Corporate Tax Rate.--Section 11(b) is amended by striking ``21 percent'' and inserting ``25 percent''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2378. Mr. KAINE submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 20306(a)(6)(D) of title 14, United States Code (as added by section 40005(a)), strike the semicolon at the end and insert ``; and''. In section 20306(a)(6)(E) of title 14, United States Code (as added by section 40005(a)), strike ``; and'' and insert a period. In section 20306(a)(6) of title 14, United States Code (as added by section 40005(a)), strike subparagraph (F). ______ SA 2379. Mr. KAINE submitted an amendment intended to be propowed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 20306(b)(3) of title 14, United States Code (as added by section 40005(a)), add at the end the following: ``(D) Limitation on designation of nonprofit entity.--The Administrator may not designate, as the nonprofit entity to which the space vehicle identified under paragraph (1) is transferred, any entity that charges any amount of entrance fee or admission. ______ SA 2380. Mr. KAINE submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 20004(a)(6), insert ``, of which 25 percent shall be aligned with the European Deterrence Initiative'' after ``long-range multi-service cruise missiles''. In section 20004(a)(7), insert ``, of which 25 percent shall be aligned with the European Deterrence Initiative'' after ``long-range multi-service cruise missiles''. In section 20004(a)(31), insert ``, of which 25 percent shall be aligned with the European Deterrence Initiative'' after ``unmanned aerial systems industrial base''. In section 20004(a)(32), insert ``, of which 25 percent shall be aligned with the European Deterrence Initiative,'' after ``$200,000,000''. In section 20004(a)(33), insert ``, of which 25 percent shall be aligned with the European Deterrence Initiative,'' after ``$400,000,000''. In section 20004(a)(56), insert ``, of which 25 percent shall be aligned with the European Deterrence Initiative'' after ``counter-unmanned aerial systems programs''. In section 20004(a)(57), insert ``, of which 25 percent shall be aligned with the European Deterrence Initiative'' after ``non-kinetic counter-unmanned aerial systems programs''. In section 20004(a)(58), insert ``, of which 25 percent shall be aligned with the European Deterrence Initiative'' after ``land-based counter-unmanned aerial systems programs''. In section 20004(a)(67), insert ``, of which 25 percent shall be aligned with the European Deterrence Initiative'' after ``precision extended-range artillery''. In section 20005(a)(2), insert `` , of which 25 percent shall be aligned with the European Deterrence Initiative'' after ``small unmanned aerial system industrial base''. In section 20005(a)(20), insert `` , of which 25 percent shall be aligned with the European Deterrence Initiative'' after ``low-cost cruise missiles''. ______ SA 2381. Ms. HIRONO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 71108. ______ SA 2382. Ms. HIRONO (for herself, Mr. Van Hollen, Mr. Kaine, Mr. Reed, and Mr. Peters) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70411. ______ SA 2383. Ms. HIRONO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 397, strike lines 15 through 20 and insert the following: ``(2) Qualified contribution.--The term `qualified contribution' means a charitable contribution (as defined by section 170(c)) to a scholarship granting organization in the form of cash. ______ SA 2384. Ms. HIRONO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 60005 (relating to repeal of funding to address air pollution at schools). In section 60026(a), strike ``$256,657,000'' and insert ``$242,657,000''. ______ SA 2385. Ms. HIRONO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 50101(a), strike the subsection designation and heading and all that follows through ``Subsection (e)'' in paragraph (2) and insert the following: (a) Repeal of Inflation Reduction Act Provision.-- Subsection (e) In section 50102, strike subsection (d). In section 50102, redesignate subsection (e) as subsection (d). Strike section 50103. Strike section 50202. In section 50402(b)(2), strike subparagraphs (B) through (D). In section 50402(b)(2), redesignate subparagraphs (E) through (H) as subparagraphs (B) through (E), respectively. Strike section 50403. ______ SA 2386. Ms. HIRONO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 10604(f) and insert the following: (f) Research Facilities Act.--Section 6 of the Research Facilities Act (7 U.S.C. 390d) is amended-- (1) in subsection (c), by striking ``subsection (a)'' and inserting ``subsections (a) and (e)''; and (2) by adding at the end the following: ``(e) Mandatory Funding.--Subject to subsections (b), (c), and (d), of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out the competitive grant program under section 4 $1,000,000,000 for fiscal year 2026 and each fiscal year thereafter.''. ______ SA 2387. Ms. HIRONO submitted an amendment intended to be proposed to [[Page S3972]] amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 90001, strike ``$46,550,000,000'' and insert ``16,550,000,000''. At the end of subtitle B of title IX, insert the following: SEC. 901__. RURAL MAIL SERVICE. In addition to amounts otherwise available, there is appropriated to the United States Postal Service $30,000,000,000 for expenses to maintain rural mail service, to remain available for 10 years. ______ SA 2388. Ms. WARREN submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. LEGAL TENDER. Section 5103 of title 31, United States Code, is amended by adding at the end the following: ``The USD1 stablecoin of World Liberty Financial is not legal tender.''. ______ SA 2389. Ms. WARREN submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. AMENDMENT. Section 5(d) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)) is amended by adding at the end the following: ``(4) TBTF fee.-- ``(A) In general.--Whenever the Deposit Insurance Fund reserve ratio is below 2 percent, any insured depository institution with more than $700,000,000,000 in assets shall pay an annual fee of 10 basis points multiplied by its total liabilities, in addition to the generally applicable fees required by rule under this section. ``(B) Delay.--If the Corporation finds that imposing the fee described in subparagraph (A) would undermine the safety and soundness of the banking system, the Corporation may delay the imposition of the fee by 1 year.''. ______ SA 2390. Ms. HIRONO submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 100001(a), insert ``who are not unaccompanied alien children (as defined in section 462(g)(2) of the Homeland Security Act of 2002 (6 U.S.C. 279(g)(2)))'' after ``aliens''. Strike section 100005. ______ SA 2391. Ms. WARREN (for herself, Mr. Murphy, Ms. Smith, and Mr. Schiff) submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. EXTENSION OF ENHANCED PREMIUM TAX CREDITS. (a) In General.--Section 36B(b)(3)(A)(iii) is amended-- (1) by striking ``, and before January 1, 2026'', and (2) by striking ``2021 through 2025'' in the heading and inserting ``years after 2020''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. _____. ADJUSTMENT TO CORPORATE TAX RATE. (a) In General.--Section 11(b) is amended by striking ``21 percent'' and inserting ``24 percent''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2392. Ms. WARREN submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. PROHIBITION. (a) Definition.--In this section, the term ``large online platform''-- (1) means a social media platform, an online search engine, an online marketplace, or an online communication platform that averages more than 10,000,000 unique users on a monthly basis or has more than 10,000,000 user accounts; (2) includes all parents, subsidiaries, and affiliates of the entity; and (3) does not include a platform that only permits users to interact via a predetermined set of phrases, emoticons, or nonlinguistic symbols. (b) Prohibition.--Large online platforms shall not issue any liability with a maturity of less than 1 year, including any form of debt that is demandable. ______ SA 2393. Ms. WARREN (for herself and Mr. Reed) submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title III, insert the following: SEC. 3___. PROHIBITION ON USE OF AMOUNTS APPROPRIATED FOR THE DEFENSE PRODUCTION ACT OF 1950 FOR THE PERSONAL BENEFIT OF THE PRESIDENT. Section 303 of the Defense Production Act of 1950 (50 U.S.C. 4533) is amended by adding at the end the following: ``(h) Prohibition on Use of Appropriations for President's Benefit.-- ``(1) In general.--No amounts appropriated to carry out this Act may be obligated or expended-- ``(A) to refurbish, modify, upgrade, or make repairs to any aircraft provided as a gift by the Government of Qatar for the use of the President of the United States; or ``(B) to support any entity, project, or contract in which the President or the family of the President have a direct or indirect financial interest. ``(2) Notification required.--The President shall notify Congress not later than 15 business days after the obligation or expenditure of any amounts appropriated to carry out this Act.''. ______ SA 2394. Ms. WARREN submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. STOCKHOLDER DIVIDENDS. Section 7(a)(1)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(1)) is amended by striking clause (i) and inserting the following: ``(i) in the case of a stockholder with total consolidated assets of more than $10,000,000,000, the rate equal to the high yield of the 2-year Treasury note auctioned at the last auction held prior to the payment of such dividend; and''. ______ SA 2395. Ms. WARREN (for herself and Ms. Hirono) submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. PROHIBITION. The Director of the Federal Housing Finance Agency and the Commissioner of the Federal Housing Administration may not increase guarantee fees or mortgage insurance premiums during fiscal years 2025 through 2030, except-- (1) for loans used to finance second home or vacation home transactions; or (2) if the borrower is a private equity fund. ______ SA 2396. Ms. WARREN (for herself and Ms. Hirono) submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. PROHIBITION. (a) In General.--The Department of the Treasury shall not sell in whole or in part its share of senior preferred stocks in Fannie Mae or Freddie Mac until-- (1) the Comptroller General-- (A) completes a study on the impact that ending conservatorship or the end of an explicit government guarantee of Fannie Mae and Freddie Mac would have on the cost of mortgage lending, homeownership, and multifamily housing development; and (B) presents the findings of such study to Congress; (2) the President issues a public plan; and (3) the Director of the Federal Housing Finance Agency and the 4 members of the Federal Housing Finance Oversight Board established under section 1313A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4513a) testify on the plan required in paragraph (2) before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. (b) Rule of Construction.--Nothing in this section may be construed to authorize the Department of the Treasury to sell in whole or in part its share of senior preferred stocks in Fannie Mae or Freddie Mac. ______ SA 2397. Ms. WARREN submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: [[Page S3973]] At the appropriate place, insert the following: SEC. ___. MANDATORY REPORTING WITH RESPECT TO CERTAIN HEALTH- RELATED OWNERSHIP INFORMATION. Part A of title XI of the Social Security Act (42 U.S.C. 1301 et seq.) is amended by adding at the end the following new section: ``SEC. 1150D. MANDATORY REPORTING WITH RESPECT TO CERTAIN HEALTH-RELATED OWNERSHIP INFORMATION. ``(a) Mandatory Reporting With Respect Certain Health- related Ownership Information.-- ``(1) Reporting.--Not later than January 1, 2026 (or in the case of a specified entity formed after January 1, 2026, not later than 60 days after formation of the specified entity), and each year thereafter, each specified entity shall submit to the Secretary of Health and Human Services, in a form and manner specified by the Secretary, a report containing the following information, subject to paragraph (3)(B): ``(A) Data on mergers, acquisitions, changes in ownership, changes in control, transactions to form new affiliations, changes in partnerships, joint ventures, and/or management services agreements, to which such specified entity is a party for the previous 1-year period, including-- ``(i) the primary reason the reporting entity completed the acquisition; and ``(ii) a description of how the acquirer obtained control of the acquiree, and the percentage of ownership acquired (i.e., voting equity interests). ``(B) As applicable, the name, address, tax or health plan identification numbers (including, without limitation, the tax identification number, National Association of Insurance Commissioners identification number, State insurance identification number, Medicare provider number, and the standard unique health identifier (as described in section 1173(b)) of all health care providers within the specified entity that furnish items or services. ``(C) Business structure of any controlling entity, including the business type and the tax identification number of such entity, other affiliates under common control, subsidiaries, and management services entities of such specified entity, as of the date of the submission of this report. ``(D) Information relating to-- ``(i) the debt-to-earnings ratio of the specified entity; ``(ii) the amount of debt incurred-- ``(I) by each hospital or separate entity within the health system; and ``(II) by the entire specified entity; ``(iii) real estate leases and purchases for property used, or intended to be used, to furnish or otherwise support the provision of health care services, including expenditures on rents and maintenance, property taxes paid, and the name of the company leased from; ``(iv) details of other companies' revenue sharing arrangement; ``(v) fees charged or dividends paid to investors; ``(vi) in the case of a non-profit hospital, a subsidiary of a non-profit hospital, or a 501(c)(3) entity that shares common ownership with a non-profit hospital, capital gains investments (disaggregated by the type of investment) and any taxes paid on such gains from such investments; and ``(vii) information with respect to any controlling entity of such specified entity. ``(E) The value of quality payments received for performance under any value-based or other performance-based program such as the shared savings program under section 1899. ``(F) Any other information with respect to ownership or control of a specified entity, as determined by the Secretary. ``(G) Any changes to the health care providers within the specified entity that furnish items or services during the previous 1-year period, identified by the National Provider identifier described in section 1173(b). ``(H) The domicile and business registration information for any controlling entity or subsidiary of such controlling entity that is domiciled outside of the United States. ``(2) Avoiding duplicate reporting.--If a specified entity is owned or controlled by an entity described in subparagraph (G) of subsection (e)(8), only the entity described in such subparagraph (G) shall be required to submit reports under this subsection with respect to such entity and any specified entity owned or controlled by the entity. ``(3) Availability of information and public reporting.-- ``(A) In general.--Not later than January 1, 2027, and annually thereafter, subject to subparagraph (B), the Secretary shall post on a publicly available website of the Department of Health and Human Services the information reported under this subsection with respect to the previous 1-year period for which the information was collected. ``(B) Requirement.--In making information reported under this subsection publicly available under subparagraph (A), the Secretary shall do so in a manner that does not disclose any personally identifiable information of any individual provider of services or supplier. ``(b) Audits.--The Secretary shall conduct an annual audit consisting of a random sample of specified entities to verify compliance with the requirements of this section and the accuracy of information submitted pursuant to this section. ``(c) Penalty for Failure to Report.--If a specified entity fails to provide a complete report under subsection (a), or submits a report containing false information, such entity shall be subject to a civil monetary penalty of not more than $5,000,000 for each such report not provided or containing false information. Such penalty shall be imposed and collected in the same manner as civil money penalties under subsection (a) of section 1128A are imposed and collected under that section. ``(d) Inapplicability of Paperwork Reduction Act.--Chapter 35 of title 44, United States Code, shall not apply to collections of information made under this section. ``(e) Definitions.--In this section: ``(1) Control.--The term `control' means the direct or indirect power through ownership, contractual agreement, or otherwise-- ``(A) to vote more than 5 percent of any class of voting securities of a specified entity; or ``(B) to direct the actions of the specified entity. ``(2) Controlling entity.-- ``(A) In general.--The term `controlling entity' means, with respect to any specified entity, a parent company or other entity that owns or controls the specified entity through ownership, contractual agreement, or otherwise. ``(B) Inclusion of reits.--Such term includes, with respect to a specified entity, a real estate investment trust (as defined in section 856 of the Internal Revenue Code of 1986) that owns property where the specified entity furnishes health care items or services. ``(3) Health plan.--The term `health plan' has the meaning given such term in section 1128C(c). ``(4) Health system.--The term `health system' means a group of health care organizations (such as physician practices, hospitals, skilled nursing facilities) that are jointly owned or managed. ``(5) Hospital.--The term `hospital' has the meaning given such term in section 1861(e). ``(6) Independent freestanding emergency department.--The term `independent freestanding emergency department' has the meaning given such term in section 2799A-1(a)(3)(D) of the Public Health Service Act. ``(7) Private fund.--The term `private fund' means a corporation that-- ``(A) would be considered an investment company under section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a-3) but for the application of paragraph (1) or (7) of subsection (c) of such section 3; ``(B) is not a venture capital fund, as defined in section 275.203(l)-1 of title 17, Code of Federal Regulations, as in effect on the date of enactment of this section; and ``(C) is not an institution selected under section 107 of the Community Development Banking and Financial Institutions Act of 1994 (12 2 U.S.C. 4706). ``(8) Specified entity.--The term `specified entity' means-- ``(A) a hospital or health system; ``(B) a physician-owned physician practice (other than a practice described in subparagraph (C)) that is enrolled in the Medicare program under title XVIII under section 1866(j); ``(C) a physician practice owned, controlled, under common control, or under management agreement by a hospital, health system, a health plan, a private fund, a venture capital fund, a public or private corporation, or any subsidiaries or entities under common control thereof; ``(D) an ambulatory surgical center meeting the standards specified under section 1832(a)(2)(F)(i); ``(E) an independent freestanding emergency department; ``(F) a behavioral health treatment facility, a hospice program (as defined in section 1861(dd)(2)), a home health agency, a provider of services or renal dialysis facility that furnishes renal dialysis services, or an assisted living facility; ``(G) any other entity specified by the Secretary that furnishes health care items and services; and ``(H) any entity that owns or controls 1 or more specified entities. ``(9) Venture capital fund.--The term `venture capital fund' has the meaning given in section 275.203(l)-1 of title 17, Code of Federal Regulations.''. ______ SA 2398. Ms. WARREN submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 30003. ______ SA 2399. Ms. WARREN submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. PROHIBITION. The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Securities and Exchange Commission, the Federal Housing Finance Agency, and the Bureau of Consumer Financial Protection shall reject any regulatory application, including for a license, charter, or product approval, submitted by a financial institution owned or controlled, directly [[Page S3974]] or indirectly, by the President or the immediate family of the President. ______ SA 2400. Ms. WARREN submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. PROHIBITION. The President shall not own or control, directly or indirectly, any entity that engages in activities subject to the supervisory, regulatory, or enforcement jurisdiction of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Securities and Exchange Commission, the Federal Housing Finance Agency, or the Bureau of Consumer Financial Protection. ______ SA 2401. Mrs. BLACKBURN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. PROHIBITING FEDERAL FINANCIAL PARTICIPATION UNDER MEDICAID AND CHIP FOR INDIVIDUALS WITHOUT VERIFIED CITIZENSHIP, NATIONALITY, OR SATISFACTORY IMMIGRATION STATUS. (a) In General.-- (1) Medicaid.--Section 1903(i)(22) of the Social Security Act (42 U.S.C. 1396b(i)(22)) is amended-- (A) by adding ``and'' at the end; (B) by striking ``to amounts'' and inserting "to-- `` ``(A) amounts''; and (C) by adding at the end the following new subparagraph: ``(B) in the case that the State elects under section 1902(a)(46)(C) to provide for making medical assistance available to an individual during-- ``(i) the period in which the individual is provided the reasonable opportunity to present satisfactory documentary evidence of citizenship or nationality under section 1902(ee)(2)(C) or subsection (x)(4); ``(ii) the 90-day period described in section 1902(ee)(1)(B)(ii)(II); or ``(iii) the period in which the individual is provided the reasonable opportunity to submit evidence indicating a satisfactory immigration status under section 1137(d)(4), amounts expended for such medical assistance, unless the citizenship or nationality of such individual or the satisfactory immigration status of such individual (as applicable) is verified by the end of such period;''. (2) CHIP.--Section 2107(e)(1)(O) of the Social Security Act (42 U.S.C. 1397gg(e)(1)(O)), as redesignated by section 71103(b)(1)(A), is amended by striking ``and (17)'' and inserting ``(17), and (22)''. (b) Eliminating State Requirement to Provide Medical Assistance During Reasonable Opportunity Period.-- (1) Documentary evidence of citizenship or nationality.-- Section 1903(x)(4) of the Social Security Act (42 U.S.C. 1396b(x)) is amended-- (A) by striking ``under clauses (i) and (ii) of section 1137(d)(4)(A)'' and inserting ``under section 1137(d)(4)''; and (B) by inserting ``, except that the State shall not be required to make medical assistance available to such individual during the period in which such individual is provided such reasonable opportunity if the State has not elected the option under section 1902(a)(46)(C)'' before the period at the end. (2) Social security data match.--Section 1902(ee) of the Social Security Act (42 U.S.C. 1396a(ee)) is amended-- (A) in paragraph (1)(B)(ii)-- (i) in subclause (II), by striking ``(and continues to provide the individual with medical assistance during such 90-day period)'' and inserting ``and, if the State has elected the option under subsection (a)(46)(C), continues to provide the individual with medical assistance during such 90-day period''; and (ii) in subclause (III), by inserting ``, or denies eligibility for medical assistance under this title for such individual, as applicable'' after ``under this title''; and (B) in paragraph (2)(C)-- (i) by striking ``under clauses (i) and (ii) of section 1137(d)(4)(A)'' and inserting ``under section 1137(d)(4)''; and (ii) by inserting ``, except that the State shall not be required to make medical assistance available to such individual during the period in which such individual is provided such reasonable opportunity if the State has not elected the option under section 1902(a)(46)(C)'' before the period at the end. (3) Individuals with satisfactory immigration status.-- Section 1137(d)(4) of the Social Security Act (42 U.S.C. 1320b-7(d)(4)) is amended-- (A) in subparagraph (A)(ii), by inserting ``(except that such prohibition on delay, denial, reduction, or termination of eligibility for benefits under the Medicaid program under title XIX shall apply only if the State has elected the option under section 1902(a)(46)(C))'' after ``has been provided''; and (B) in subparagraph (B)(ii), by inserting ``(except that such prohibition on delay, denial, reduction, or termination of eligibility for benefits under the Medicaid program under title XIX shall apply only if the State has elected the option under section 1902(a)(46)(C))'' after ``status''. (c) Option to Continue Providing Medical Assistance During Reasonable Opportunity Period.-- (1) Medicaid.--Section 1902(a)(46) of the Social Security Act (42 U.S.C. 1396a(a)(46)) is amended-- (A) in subparagraph (A), by striking ``and'' at the end; (B) in subparagraph (B)(ii), by adding ``and'' at the end; and (C) by inserting after subparagraph (B)(ii) the following new subparagraph: ``(C) provide, at the option of the State, for making medical assistance available-- ``(i) to an individual described in subparagraph (B) during the period in which such individual is provided the reasonable opportunity to present satisfactory documentary evidence of citizenship or nationality under subsection (ee)(2)(C) or section 1903(x)(4), or during the 90-day period described in subsection (ee)(1)(B)(ii)(II); or ``(ii) to an individual who is not a citizen or national of the United States during the period in which such individual is provided the reasonable opportunity to submit evidence indicating a satisfactory immigration status under section 1137(d)(4);''. (2) CHIP.--Section 2105(c)(9) of the Social Security Act (42 U.S.C. 1397ee(c)(9)) is amended by adding at the end the following new subparagraph: ``(C) Option to continue providing child health assistance during reasonable opportunity period.--Section 1902(a)(46)(C) shall apply to States under this title in the same manner as it applies to a State under title XIX.''. (d) Effective Date.--The amendments made by this section shall apply beginning on October 1, 2026. ______ SA 2402. Mr. RISCH submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title IV, insert the following: SEC. 4___. REPEAL OF CERTAIN LAWS RELATED TO SWITCHBLADE KNIVES. (a) In General.--The Act entitled ``An Act to prohibit the introduction, or manufacture for introduction, into interstate commerce of switchblade knives, and for other purposes'', approved August 12, 1958 (15 U.S.C. 1241 et seq.) (commonly known as the ``Federal Switchblade Act'') is amended by striking sections 1 through 4. (b) Conforming Amendments.-- (1) Ballistic knives.--Section 7 of the Act entitled ``An Act to prohibit the introduction, or manufacture for introduction, into interstate commerce of switchblade knives, and for other purposes'', approved August 12, 1958 (15 U.S.C. 1245) is amended-- (A) by striking subsection (c) and inserting the following: ``(c) Exceptions.--Subsection (a) shall not apply to-- ``(1) any common carrier or contract carrier, with respect to any ballistic knife shipped, transported, or delivered for shipment in interstate commerce in the ordinary course of business; ``(2) the manufacture, sale, transportation, distribution, possession, or introduction into interstate commerce, of ballistic knives pursuant to contract with the Armed Forces; or ``(3) the Armed Forces or any member or employee thereof acting in the performance of his duty.''; and (B) by adding at the end the following: ``(e) Interstate Commerce Defined.--As used in this section, the term `interstate commerce' means commerce between any State, Territory, possession of the United States, or the District of Columbia, and any place outside thereof.''. (2) Postal service.--Chapter 83 of title 18, United States Code, is amended-- (A) in section 1716-- (i) by striking subsection (g), and inserting the following: ``(g)(1) All ballistic knives are nonmailable and shall not be deposited in or carried by the mails or delivered by any officer or employee of the Postal Service. Such knives may be conveyed in the mails, under such regulations as the Postal Service shall prescribe-- ``(A) to civilian or Armed Forces supply or procurement officers and employees of the Federal Government ordering, procuring, or purchasing such knives in connection with the activities of the Federal Government; ``(B) to supply or procurement officers of the National Guard, the Air National Guard, or militia of a State ordering, procuring, or purchasing such knives in connection with the activities of such organizations; ``(C) to supply or procurement officers or employees of any State, or any political subdivision of a State or Territory, ordering, procuring, or purchasing such knives in connection with the activities of such government; and ``(D) to manufacturers of such knives or bona fide dealers therein in connection with any shipment made pursuant to an order from any person designated in subparagraphs (A), (B), and (C). [[Page S3975]] ``(2) The Postal Service may require, as a condition of conveying any ballistic knife in the mails, that any person proposing to mail a ballistic knife explain in writing to the satisfaction of the Postal Service that the mailing of the ballistic knife will not be in violation of this section. ``(3) As used in this subsection, the term `ballistic knife' means a knife with a detachable blade that is propelled by a spring-operated mechanism.''; (ii) by striking subsection (i); and (iii) by redesignating subsections (j) and (k) as subsections (i) and (j), respectively; and (B) in section 1716E(i), by striking ``section 1716(k)'' and inserting ``section 1716(j)''. (c) Effective Date.--The repeals made by this section-- (1) shall take effect on the date of enactment of this Act; and (2) shall not apply with respect to any indictment, conviction, sentencing, appeal, civil or criminal fine or penalty obtained, forfeiture obtained, term of imprisonment, or any other enforcement action or proceeding occurring or commenced before the date of the enactment of this Act. ______ SA 2403. Mr. RISCH submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section 50302(a)(3), add the following: (D) Use of proceeds.--Of the monies derived from a timber sale contract entered into to meet the requirements under this paragraph and deposited in the general fund of the Treasury, 25 percent shall be distributed in accordance with the Act of May 23, 1908 (commonly known as the ``Forest Reserve Revenue Act of 1908'') (35 Stat. 260, chapter 192; 16 U.S.C. 500). ______ SA 2404. Ms. CORTEZ MASTO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike subsection (g) of section 70606 and insert the following: (g) Effective Dates.-- (1) In general.--The provisions of this section shall apply to aid, assistance, and advice provided after July 1, 2021. (2) Limitation on credits and refunds.--Subsection (d) shall apply to credits and refunds allowed or made after the date of the enactment of this Act. (3) Extension of limitation on assessment.--The amendment made by subsection (e) shall apply to assessments made after the date of the enactment of this Act. (4) Amendment to penalty for erroneous claim for refund or credit.--The amendment made by subsection (f) shall apply to claims for credit or refund after the date of the enactment of this Act. (h) Increase in Assessable Penalty on Covid-ertc Promoters for Aiding and Abetting Understatements of Tax Liability.-- (1) In general.--If any COVID-ERTC promoter is subject to penalty under section 6701(a) of the Internal Revenue Code of 1986 with respect to any COVID-ERTC document, notwithstanding paragraphs (1) and (2) of section 6701(b) of such Code, the amount of the penalty imposed under such section 6701(a) shall be the greater of-- (A) $200,000 ($10,000, in the case of a natural person), or (B) 75 percent of the gross income derived (or to be derived) by such promoter with respect to the aid, assistance, or advice referred to in section 6701(a)(1) of such Code with respect to such document. (2) No inference.--Paragraph (1) shall not be construed to create any inference with respect to the proper application of the knowledge requirement of section 6701(a)(3) of the Internal Revenue Code of 1986. (i) Failure to Comply With Due Diligence Requirements Treated as Knowledge for Purposes of Assessable Penalty for Aiding and Abetting Understatement of Tax Liability.--In the case of any COVID-ERTC promoter, the knowledge requirement of section 6701(a)(3) of the Internal Revenue Code of 1986 shall be treated as satisfied with respect to any COVID-ERTC document with respect to which such promoter provided aid, assistance, or advice, if such promoter fails to comply with the due diligence requirements referred to in subsection (c)(1). (j) Assessable Penalties for Failure to Disclose Information, Maintain Client Lists, etc.--For purposes of sections 6111, 6112, 6707 and 6708 of the Internal Revenue Code of 1986-- (1) any COVID-related employee retention tax credit (whether or not the taxpayer claims such COVID-related employee retention tax credit) shall be treated as a listed transaction (and as a reportable transaction) with respect to any COVID-ERTC promoter if such promoter provides any aid, assistance, or advice with respect to any COVID-ERTC document relating to such COVID-related employee retention tax credit, and (2) such COVID-ERTC promoter shall be treated as a material advisor with respect to such transaction. ______ SA 2405. Ms. CORTEZ MASTO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. REPORT. Not later than 60 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives an analysis of any legal authority within Federal law that allows for the buying or selling of tax credits issued to Native American tribal governments. ______ SA 2406. Ms. CORTEZ MASTO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 10103. ______ SA 2407. Ms. CORTEZ MASTO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of chapter 2, add the following new section: SEC. __. RULES PREVENTING TAXES ON TIPS MADE PERMANENT. (a) In General.--Section 224, as added by this Act, is amended by striking subsection (h). (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2024. ______ SA 2408. Ms. CORTEZ MASTO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. APPROPRIATIONS FOR A LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM. In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services for fiscal year 2026, out of any money in the Treasury not otherwise appropriated, $30,000,000, to remain available until expended, to carry out the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 through 8630). SEC. __. REDUCTION OF APPROPRIATION FOR GARDEN OF HEROS. Notwithstanding section 87001, the amount appropriated under that section shall be $10,000,000. ______ SA 2409. Ms. CORTEZ MASTO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 90103. ______ SA 2410. Ms. CORTEZ MASTO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 90103 and insert the following: SEC. 90103. APPROPRIATION FOR STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE GRANT PROGRAM. In addition to amounts otherwise available, there is appropriated to the Federal Emergency Management Agency for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2029, for the staffing for adequate fire and emergency response grant program under section 34 of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2229a). ______ SA 2411. Ms. CORTEZ MASTO (for herself and Mr. Schatz) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: [[Page S3976]] In section 50402(b)(2), strike subparagraph (D). In section 50402(b)(2), redesignate subparagraphs (E) through (H) as subparagraphs (D) through (G), respectively. ______ SA 2412. Ms. CORTEZ MASTO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 50401, add at the end the following: (d) Limitation on Import of Petroleum Products for the Strategic Petroleum Reserve.--Notwithstanding section 160 of the Energy Policy and Conservation Act (42 U.S.C. 6240), the Strategic Petroleum Reserve may not be filled with a petroleum product (as defined in section 3 of that Act (42 U.S.C. 6202)) imported from-- (1) the People's Republic of China; (2) the Russian Federation; (3) the Islamic Republic of Iran; (4) the Democratic People's Republic of Korea; (5) the Republic of Cuba; or (6) the Syrian Arab Republic. ______ SA 2413. Ms. ERNST submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. CHARGING LABOR ORGANIZATIONS FOR USE OF FEDERAL RESOURCES. (a) In General.--Subchapter IV of chapter 71 of title 5, United States Code, is amended by inserting after section 7135 the following: ``Sec. 7136. Charging labor organizations for use of Federal resources ``(a) Definitions.--In this section: ``(1) Agency business.--The term `agency business' means work performed by employees on behalf of an agency or under the direction and control of the agency. ``(2) Agency resources provided for union use.--The term `agency resources provided for union use'-- ``(A) means the resources of an agency, other than the time of employees in a duty status, that such agency provides to labor representatives for purposes pertaining to matters covered by this chapter, including agency office space, parking space, equipment, and reimbursement for expenses incurred while on union time or otherwise performing non- agency business; and ``(B) does not include any resource to the extent that the resource is used for agency business. ``(3) Labor organization.--Notwithstanding section 7103, the term `labor organization' means a labor organization recognized as an exclusive representative of employees of an agency under this chapter or as a representative of agency employees under any system established by the Transportation Security Administration Administrator pursuant to section 111(d) of the Aviation and Transportation Security Act (49 U.S.C. 44935 note), except that the term does not include a labor organization, not less than 51 percent of the members of which are employees who are subject to mandatory separation under section 8335 or 8425. ``(4) Hourly rate of pay.--The term `hourly rate of pay' means the total cost to an agency of employing an employee in a pay period or pay periods, including wages, salary, and other cash payments, agency contributions to employee health and retirement benefits, employer payroll tax payments, paid leave accruals, and the cost to the agency for other benefits, divided by the number of hours that employee worked in that pay period or pay periods. ``(5) Labor representative.--The term `labor representative' means an employee of an agency serving in any official or other representative capacity for a labor organization (including as any officer or steward of a labor organization) that is the exclusive representative of employees of such agency under this chapter or is the representative of employees under any system established by the Transportation Security Administration Administrator pursuant to section 111(d) of the Aviation and Transportation Security Act (49 U.S.C. 44935 note). ``(6) Union time.--The term `union time' means the time an employee of an agency who is a labor representative for a labor organization spends performing non-agency business while on duty, either in service of that labor organization or otherwise acting in the capacity as an employee representative, including official time authorized under section 7131. ``(b) Fees for Use of Agency Resources.-- ``(1) In general.--The head of each agency shall charge each labor organization recognized as an exclusive representative of employees of that agency a fee each calendar quarter for the use of the resources of that agency during that quarter. ``(2) Fee calculation.--The amount of the fee the head of an agency charges a labor organization under paragraph (1) with respect to a calendar quarter shall be equal to the amount that is the sum of-- ``(A) the value of the union time of each labor representative for that labor organization while employed by that agency in that quarter; and ``(B) the value of agency resources provided for union use to that labor organization by that agency in that quarter. ``(3) Timing.-- ``(A) Notice.--Not later than 30 days after the end of each calendar quarter, the head of each agency shall submit to each labor organization charged a fee by that agency head under paragraph (1) with respect to that calendar quarter a notice stating the amount of that fee. ``(B) Due date.--Payment of a fee charged under paragraph (1) is due not later than 60 days after the date on which the labor organization charged the fee receives a notice under subparagraph (A) with respect to that fee. ``(4) Payment.-- ``(A) In general.--Payment of a fee charged under paragraph (1) shall be made to the head of the agency that charged the fee. ``(B) Transfer to general fund.--The head of an agency shall transfer each payment of a fee charged under paragraph (1) that the agency head receives to the general fund of the Treasury. ``(c) Value Determinations.-- ``(1) In general.--The head of an agency charging a labor organization a fee under subsection (b) shall determine the value of union time used by labor representatives and the value of agency resources provided for union use for the purposes of paragraph (2) of that subsection in accordance with this subsection. ``(2) Values.--For the purposes of paragraph (2) of subsection (b), with respect to a fee charged to a labor organization by the head of an agency under paragraph (1) of that subsection-- ``(A) the value of the union time of a labor representative during a calendar quarter is equal to amount that is the product of the hourly rate of pay of that labor representative paid by that agency and the number of hours of union time of that labor representative during that calendar quarter during which that labor representative was on duty as an employee of that agency; and ``(B) that agency head shall determine the value of agency resources provided for union use during a calendar quarter using rates established by the General Services Administration, where applicable, or to the extent that those rates are inapplicable to the use of those resources, the market rate for the use of those resources, except that with respect to resources used for both agency business and for purposes pertaining to matters covered by this chapter, only the value of the portion of the use of those resources for the business of that labor organization shall be included. ``(3) Payment required.--The head of an agency may not forgive, reimburse, waive, or in any other manner reduce any fee charged under this section.''. (b) Technical and Conforming Amendment.--The table of sections for subchapter IV of chapter 71 of title 5, United States Code, is amended by inserting after the item relating to section 7135 the following: ``7136. Charging labor organizations for use of Federal resources.''. ______ SA 2414. Ms. WARREN (for herself, Mr. Reed, Mr. Warner, Mr. Van Hollen, Ms. Cortez Masto, Ms. Smith, Mr. Warnock, Mr. Kim, Mr. Gallego, Ms. Blunt Rochester, and Ms. Alsobrooks) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 30001. ______ SA 2415. Mr. KELLY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70411. ______ SA 2416. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section 40002(c)(3), add the following: (C) Certification.--In conducting the analysis under subparagraph (A), the Assistant Secretary shall certify that reallocation of any specific frequencies identified for commercial use would not negatively impact the primary mission of the Department of Transportation. ______ SA 2417. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; [[Page S3977]] which was ordered to lie on the table; as follows: In section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by section 40002(b)(1), strike subparagraphs (A) and (B) and insert the following: ``(A) between the frequencies of 3.1 gigahertz and 3.45 gigahertz, such authority shall not apply; ``(B) between the frequencies of 7.4 gigahertz and 8.4 gigahertz, such authority shall not apply; and ``(C) in any band of frequencies of which the Department of Transportation is the primary user, such authority shall not apply.''. ______ SA 2418. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section _0002, strike subsections (a) through (e) and insert the following: SEC. _0002. SPECTRUM AUCTIONS. (a) Definitions.--In this section: (1) Assistant secretary.--The term ``Assistant Secretary'' means the Assistant Secretary of Commerce for Communications and Information. (2) Commission.--The term ``Commission'' means the Federal Communications Commission. (3) Covered band.--The term ``covered band''-- (A) except as provided in subparagraph (B), means the band of frequencies between 1.3 gigahertz and 10.5 gigahertz; and (B) does not include-- (i) the band of frequencies between 3.1 gigahertz and 3.45 gigahertz; (ii) the band of frequencies between 5.895 gigahertz and 5.925 gigahertz; or (iii) the band of frequencies between 7.4 gigahertz and 8.4 gigahertz. (4) Full-power commercial licensed use cases.--The term ``full-power commercial licensed use cases'' means flexible use wireless broadband services with base station power levels sufficient for high-power, high-density, and wide-area commercial mobile services, consistent with the service rules under part 27 of title 47, Code of Federal Regulations, or any successor regulations, for wireless broadband deployments throughout the covered band. (b) General Auction Authority.-- (1) Amendment.--Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)) is amended by striking ``grant a license or permit under this subsection shall expire March 9, 2023'' and all that follows and inserting the following: ``complete a system of competitive bidding under this subsection shall expire September 30, 2034, except that, with respect to the electromagnetic spectrum-- ``(A) between the frequencies of 3.1 gigahertz and 3.45 gigahertz, such authority shall not apply; ``(B) between the frequencies of 5.895 gigahertz and 5.925 gigahertz, such authority shall not apply; and ``(C) between the frequencies of 7.4 gigahertz and 8.4 gigahertz, such authority shall not apply.''. (2) Spectrum auctions.--The Commission shall grant licenses through systems of competitive bidding, before the expiration of the general auction authority of the Commission under section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by paragraph (1) of this subsection, for not less than 300 megahertz across the entire spectrum band, including by completing a system of competitive bidding not later than 2 years after the date of enactment of this Act for not less than 100 megahertz in the band between 3.98 gigahertz and 4.2 gigahertz. (c) Identification for Reallocation.-- (1) In general.--The Assistant Secretary, in consultation with the Commission, shall identify 500 megahertz of frequencies in the covered band for reallocation to non- Federal use, shared Federal and non-Federal use, or a combination thereof, for full-power commercial licensed use cases, that-- (A) as of the date of enactment of this Act, are allocated for Federal use; and (B) shall be in addition to the 300 megahertz of frequencies for which the Commission grants licenses under subsection (b)(2). (2) Schedule.--The Assistant Secretary shall identify the frequencies under paragraph (1) according to the following schedule: (A) Not later than 2 years after the date of enactment of this Act, the Assistant Secretary shall identify not less than 200 megahertz of frequencies within the covered band. (B) Not later than 4 years after the date of enactment of this Act, the Assistant Secretary shall identify any remaining bandwidth required to be identified under paragraph (1). (3) Required analysis.-- (A) In general.--In determining under paragraph (1) which specific frequencies within the covered band to reallocate, the Assistant Secretary shall determine the feasibility of the reallocation of frequencies. (B) Requirements.--In conducting the analysis under subparagraph (A), the Assistant Secretary shall assess net revenue potential, relocation or sharing costs, as applicable, and the feasibility of reallocating specific frequencies, with the goal of identifying the best approach to maximize net proceeds of systems of competitive bidding for the Treasury, consistent with section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)). (d) Auctions.--The Commission shall grant licenses for the frequencies identified for reallocation under subsection (c) through systems of competitive bidding in accordance with the following schedule: (1) Not later than 4 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for not less than 200 megahertz of the frequencies. (2) Not later than 8 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for any frequencies identified under subsection (c) that remain to be auctioned after compliance with paragraph (1) of this subsection. (e) Limitations.-- (1) In general.--The President shall modify or withdraw any frequency proposed for reallocation under this section not later than 60 days before the commencement of a system of competitive bidding scheduled by the Commission with respect to that frequency, if the President determines that such modification or withdrawal is necessary to protect the national security of the United States. (2) Rules of construction.-- (A) Nothing in paragraph (1) may be construed to place any limit on the President to exercise the authority of the President under section 706 of the Communications Act of 1934 (47 U.S.C. 606). (B) Nothing in this section may be construed to authorize-- (i) the withdrawal or modification of Federal spectrum allocations between 3.1 gigahertz and 3.45 gigahertz, between 5.895 gigahertz and 5.925 gigahertz, or between 7.4 gigahertz and 8.4 gigahertz; or (ii) non-Federal use of the frequencies described in clause (i). ______ SA 2419. Mr. KELLY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70415. ______ SA 2420. Mr. KELLY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70436. ______ SA 2421. Mr. KELLY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 60021 and insert the following: SEC. 60021. REPEAL OF FUNDING FOR LOW-CARBON MATERIALS FOR FEDERAL BUILDINGS; FUNDING FOR COVERED PROJECTS OF NATIONAL INTEREST. (a) Rescission.--The unobligated balances of amounts made available to carry out section 60503 of Public Law 117-169 (136 Stat. 2083) are rescinded. (b) Funding for Covered Border Security Projects.--In addition to amounts otherwise available, there is appropriated for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2028, to be deposited in the Federal Buildings Fund established by section 592(a) of title 40, United States Code, to be used consistent with the purposes described in section 60503(a) of Public Law 117-169 (136 Stat. 2083) for covered projects of national interest described in subsection (c). (c) Covered Projects of National Interest Described.--The covered projects of national interest referred to in subsection (b) are projects that the Administrator of General Services designates as supporting border security, the collection of tariffs, fentanyl interdiction, and the operation of Federal courthouses and Federal Government operations outside the District of Columbia. ______ SA 2422. Mr. KELLY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 60021 and insert the following: [[Page S3978]] SEC. 60021. REPEAL OF FUNDING FOR LOW-CARBON MATERIALS FOR FEDERAL BUILDINGS; FUNDING FOR COVERED BORDER SECURITY PROJECTS. (a) Rescission.--The unobligated balances of amounts made available to carry out section 60503 of Public Law 117-169 (136 Stat. 2083) are rescinded. (b) Funding for Covered Border Security Projects.--In addition to amounts otherwise available, there is appropriated for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $991,169,534, to remain available until September 30, 2028, to be deposited in the Federal Buildings Fund established by section 592(a) of title 40, United States Code, to be used consistent with the purposes described in section 60503(a) of Public Law 117-169 (136 Stat. 2083) for covered border security projects described in subsection (c) in the amounts described in that subsection. (c) Covered Border Security Projects Described.--The covered border security projects referred to in subsection (b) are each of the following: (1) $45,200,000, for the Alcan LPOE modernization project in Alcan, Alaska. (2) $120,000,000, for the Raul Hector Castro LPOE modernization project in Douglas, Arizona. (3) $47,619,100, for the Denver Federal Center FDA Lab in Lakewood, Colorado. (4) $11,200,000, for the Porthill LPOE modernization project in Porthill, Idaho. (5) $18,700,000, for the Robert J. Dole United States Courthouse project in Kansas City, Kansas. (6) $27,200,000 for the Frank Carlson Federal Building and United States Courthouse project in Topeka, Kansas. (7) $4,436,097, for the Calais Ferry Point LPOE modernization project in Calais, Maine. (8) $27,769,718, for the Coburn Gore LPOE modernization project in Coburn Gore, Maine. (9) $8,869,718, for the Fort Fairfield LPOE modernization project in Fort Fairfield, Maine. (10) $8,869,718, for Houlton LPOE repairs and alterations in Houlton, Maine. (11) $5,169,718, for the Limestone LPOE modernization project in Limestone, Maine. (12) $25,571,690, for the Grand Portage LPOE modernization project in Grand Portage, Minnesota. (13) $74,000,000, for the International Falls LPOE modernization project in International Falls, Minnesota. (14) $118,300,000, for the Charles E. Whittaker United States Courthouse project in Kansas City, Missouri. (15) $8,500,000, for the Mike Mansfield Federal Building and United States Courthouse modernization project in Butte, Montana. (16) $44,331,878, for the Robert V. Denney Federal Building and United States Courthouse repairs in Lincoln, Nebraska. (17) $9,974,019, for the Trout River LPOE modernization project in Constable, New York. (18) $11,581,413, for the Rouses Point LPOE modernization project in Rouses Point, New York. (19) $20,615,632, for the Carl B. Stokes Courthouse Plaza repairs in Cleveland, Ohio. (20) $37,170,333, for the Howard Metzenbaum Courthouse plaza repairs in Cleveland, Ohio. (21) $3,700,000, for the John W. Bricker Federal Building parking lot and sidewalk repaving in Columbus, Ohio. (22) $154,700,000, for the Bridge of the Americas LPOE project in El Paso, Texas. (23) $310,000, for the Alburg Springs LPOE modernization project in Alburg Springs, Vermont. (24) $915,833, for the Beebe Plain LPOE modernization project in Beebe Plain, Vermont. (25) $49,927,750, for the Highgate Springs LPOE modernization project in Highgate Springs, Vermont. (26) $8,613,566, for the Norton LPOE modernization project in Norton, Vermont. (27) $9,200,000, for the Richford LPOE modernization project in Richford, Vermont. (28) $7,000,000, for the St. Albans Federal Building and Courthouse project in St. Albans, Vermont. (29) $29,100,000, for the Lynden (Kenneth G. Ward) LPOE modernization project in Lynden, Washington. (30) $15,900,000, for the Henry M. Jackson Federal Building modernization project in Seattle, Washington. (31) $45,700,000, for the Sumas LPOE modernization project in Sumas, Washington. ______ SA 2423. Ms. ROSEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 40002, strike subsections (a) through (c)(1) and insert the following: (a) Definitions.--In this section: (1) Assistant secretary.--The term ``Assistant Secretary'' means the Assistant Secretary of Commerce for Communications and Information. (2) Commission.--The term ``Commission'' means the Federal Communications Commission. (3) Covered band.--The term ``covered band''-- (A) except as provided in subparagraph (B), means the band of frequencies between 1.3 gigahertz and 10.5 gigahertz; and (B) does not include-- (i) the band of frequencies between 3.1 gigahertz and 3.45 gigahertz for purposes of auction, reallocation, modification, or withdrawal; or (ii) the band of frequencies between 7.4 gigahertz and 8.4 gigahertz for purposes of auction, reallocation, modification, or withdrawal. (b) General Auction Authority.-- (1) Amendment.--Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)) is amended by striking ``grant a license or permit under this subsection shall expire March 9, 2023'' and all that follows and inserting the following: ``complete a system of competitive bidding under this subsection shall expire September 30, 2034, except that, with respect to the electromagnetic spectrum-- ``(A) between the frequencies of 3.1 gigahertz and 3.45 gigahertz, such authority shall not apply; and ``(B) between the frequencies of 7.4 gigahertz and 8.4 gigahertz, such authority shall not apply.''. (2) Spectrum auctions.--The Commission shall grant licenses through systems of competitive bidding, before the expiration of the general auction authority of the Commission under section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by paragraph (1) of this subsection, for not less than 300 megahertz across the entire spectrum band, including by completing a system of competitive bidding not later than 2 years after the date of enactment of this Act for not less than 100 megahertz in the band between 3.98 gigahertz and 4.2 gigahertz. (c) Identification for Reallocation.-- (1) In general.--The Assistant Secretary, in consultation with the Commission, shall identify 500 megahertz of frequencies in the covered band for reallocation to non- Federal use, shared Federal and non-Federal use, or a combination thereof, for commercial use cases, that-- (A) as of the date of enactment of this Act, are allocated for Federal use; and (B) shall be in addition to the 300 megahertz of frequencies for which the Commission grants licenses under subsection (b)(2). ______ SA 2424. Ms. ROSEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 40002(a)(3), strike subparagraph (B) and insert the following: (B) does not include-- (i) the band of frequencies between 3.1 gigahertz and 3.45 gigahertz for purposes of auction, reallocation, modification, or withdrawal; (ii) the band of frequencies between 7.4 gigahertz and 8.4 gigahertz for purposes of auction, reallocation, modification, or withdrawal; or (iii) any band of frequencies that the Commission has previously auctioned or licensed for terrestrial commercial or private use through a system of competitive bidding under section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)) or for shared use under part 96 of title 47, Code of Federal Regulations (or any successor regulations). ______ SA 2425. Ms. ROSEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: CHAPTER 7--ADDITIONAL TAX PROVISIONS SEC. ___. START-UP EXPENDITURES. (a) In General.--Section 195(b) is amended-- (1) in paragraph (1)(A)(ii), by striking ``$5,000'' and inserting ``$50,000'', and (2) by striking paragraph (3). (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. SEC. ___. RESTORATION OF PROGRESSIVE CORPORATE TAX RATE. (a) In General.--Section 11(b) is amended to read as follows: ``(b) Amount of Tax.--The amount of the tax imposed by subsection (a) shall be the sum of-- ``(1) 21 percent of so much of the taxable income as does not exceed $1,000,000,000, and ``(2) 30 percent of so much of the taxable income as exceeds $1,000,000,000.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2426. Ms. ROSEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: [[Page S3979]] On page 177, strike lines 15 through 23 and insert the following: (a) Repeal of Inflation Reduction Act Provision.-- Subsection ______ SA 2427. Ms. ROSEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 183, strike lines 5 and 6 and insert the following: (3) by adding at the end the following: On page 183, line 7, strike ``(q)'' and insert ``(r)''. ______ SA 2428. Ms. ROSEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 71117 and insert the following: SEC. 71117. ADJUSTMENT TO CORPORATE TAX RATE. (a) In General.--Section 11(b) of the Internal Revenue Code of 1986 is amended by striking ``21 percent'' and inserting ``28 percent''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2429. Ms. ROSEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title VII, insert the following: SEC. _____. EXPANSION OF LOW-INCOME HOUSE TAX CREDIT. (a) Inclusion of Rural Areas as Difficult Development Areas for Purposes of Certain Buildings.-- (1) In general.--Section 42(d)(5)(B)(iii)(I) is amended by inserting before the period the following: ``, and, in the case of buildings placed in service after December 31, 2025, any rural area''. (2) Rural area.--Section 42(d)(5)(B)(iii) is amended by redesignating subclause (II) as subclause (III) and by inserting after subclause (I) the following new subclause: ``(II) Rural area.--For purposes of subclause (I), the term `rural area' means any rural area (as defined by section 520 of the Housing Act of 1949) and any non-metropolitan area.''. (3) Effective date.--The amendments made by this subsection shall apply to buildings placed in service after December 31, 2025. (b) Increase in Corporate Tax Rate.-- (1) In general.--Section 11(b) is amended to read as follows: ``(b) Amount of Tax.--The amount of the tax imposed by subsection (a) shall be the sum of-- ``(1) 21 percent of so much of the taxable income as does not exceed $100,000,000, and ``(2) 28 percent of so much of the taxable income as exceeds $100,000,000.''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2025. ______ SA 2430. Ms. ROSEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. PREMIUM TAX CREDITS FOR DACA RECIPIENTS. (a) In General.--Section 36B(e)(2)(B), as added by this Act, is amended by striking ``or'' at the end of clause (ii)(V), by striking the period at the end of clause (iii) and inserting ``, or'', and by adding at the end the following new clause: ``(iv) an alien who has been granted deferred action pursuant to the memorandum of the Department of Homeland Security entitled `Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children' issued on June 15, 2012.''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2026. ______ SA 2431. Ms. ROSEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: CHAPTER 7--ADDITIONAL TAX PROVISIONS SEC. ___. RESTORATION OF PROGRESSIVE CORPORATE TAX RATE. (a) In General.--Section 11(b) is amended to read as follows: ``(b) Amount of Tax.--The amount of the tax imposed by subsection (a) shall be the sum of-- ``(1) 20 percent of so much of the taxable income as does not exceed $1,000,000, ``(2) 21 percent of so much of the taxable income as exceeds $1,000,000 but does not exceed $100,000,000, and ``(3) 28 percent of so much of the taxable income as exceeds $100,000,000.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2432. Ms. ROSEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section _0012, add the following: (c) Deadline for Release of Funds After Final Proposal Approved; Conditions on Deobligation.--Section 60102 of division F of Public Law 117-58 (47 U.S.C. 1702), as amended by this section, is amended-- (1) in subsection (e)(4)-- (A) in subparagraph (D)(ii)(III), by inserting after ``shall'' the following: ``, not later than 30 days after approving the final proposal,''; and (B) in subparagraph (E)(ii)(III), by inserting after ``shall'' the following: ``, not later than 30 days after approving the final proposal,''; and (2) by adding at the end the following: ``(s) Limits on Deobligation.-- ``(1) In general.--The Assistant Secretary may not deobligate funds awarded to an eligible entity under subsection (g)(3)(B) unless the Inspector General of the Department of Commerce has-- ``(A) completed an investigation into the alleged misconduct described in clause (i), (ii), or (iii) of that subsection that is the basis for the proposed deobligation; and ``(B) reported to the Assistant Secretary the findings of the Inspector General under subparagraph (A). ``(2) Funding.--From the portion of the amount appropriated under subsection (b)(5)(A) that is available to the Assistant Secretary for administrative purposes under subsection (d)(1), the Assistant Secretary shall transfer $5,000,000 to the Inspector General of the Department of Commerce to carry out paragraph (1) of this subsection.''. ______ SA 2433. Ms. ROSEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section _40009. Section 1181(11) of title 14, United States Code (as added by section 40001), is amended by striking ``$2,200,000,000'' and inserting ``$2,050,000,000''. ______ SA 2434. Ms. ROSEN (for herself, Mr. Schatz, and Ms. Blunt Rochester) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. EXEMPTION FROM CERTAIN DUTIES FOR CRITICAL HOMEBUILDING MATERIALS. (a) In General.--Duties imposed pursuant to Executive Order 14257 (90 Fed. Reg. 15041; relating to regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual United States goods trade deficits) shall not apply with respect to critical homebuilding materials. (b) Comprehensive List of Critical Homebuilding Materials.--Not later than 60 days after the date of the enactment of this Act, the Secretary of Commerce, in consultation with the United States Trade Representative, shall develop and submit to Congress a comprehensive list of critical homebuilding materials for purposes of subsection (a). That list shall include, at a minimum, lumber, aluminum, cement, and copper. ______ SA 2435. Mr. SANDERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of chapter 2 of title VII, insert the following: [[Page S3980]] SEC. 71205. PROVIDING COVERAGE FOR DENTAL AND ORAL HEALTH CARE, HEARING CARE, AND VISION CARE UNDER MEDICARE. (a) Short Title.--This section may be cited as the ``Medicare Dental, Hearing, and Vision Expansion Act of 2025''. (b) Coverage of Dental and Oral Health Care.-- (1) Coverage.--Section 1861(s)(2) of the Social Security Act (42 U.S.C. 1395x(s)(2)) is amended-- (A) in subparagraph (JJ), by adding ``and'' at the end; and (B) by adding at the end the following new subparagraph: ``(KK) dental and oral health services (as defined in subsection (nnn));''. (2) Dental and oral health services defined.--Section 1861 of the Social Security Act (42 U.S.C. 1395x) is amended by adding at the end the following new subsection: ``(nnn) Dental and Oral Health Services.-- ``(1) In general.--Except as provided in paragraph (2), the term `dental and oral health services' means the following items and services that are furnished by a doctor of dental surgery or of dental medicine (as described in subsection (r)(2)) or an oral health professional (as defined in paragraph (3)) on or after January 1, 2028: ``(A) Preventive and screening services.--Preventive and screening services, including oral exams, dental cleanings, dental x-rays, and fluoride treatments. ``(B) Procedures and treatment services.--Services to address oral disease, including services such as restorative services, prosthodontic and endodontic services, including fillings bridges, crowns, and root canals, periodontal maintenance, periodontal scaling and root planing, tooth extractions, therapeutic pulpotomy, and other related items and services. ``(C) Dentures and dental prosthetics.--Complete dentures, partial dentures, and implants, including related items and services. ``(2) Exclusions.--Such term does not include items and services for which, as of the date of the enactment of this subsection, coverage was permissible under section 1862(a)(12) and cosmetic services not otherwise covered under section 1862(a)(10). ``(3) Oral health professional.--The term `oral health professional' means, with respect to dental and oral health services, a health professional (other than a doctor of dental surgery or of dental medicine (as described in subsection (r)(2))) who is licensed to furnish such services, acting within the scope of such license, by the State in which such services are furnished.''. (3) Payment; coinsurance; and limitations.-- (A) In general.--Section 1833(a)(1) of the Social Security Act (42 U.S.C. 1395l(a)(1)) is amended-- (i) in subparagraph (N), by inserting ``and dental and oral health services (as defined in section 1861(nnn))'' after ``section 1861(hhh)(1))''; (ii) by striking ``and'' before ``(HH)''; and (iii) by inserting before the semicolon at the end the following: ``and (II) with respect to dental and oral health services (as defined in section 1861(nnn)), the amount paid shall be the payment amount specified under section 1834(aa)''. (B) Payment and limits specified.--Section 1834 of the Social Security Act (42 U.S.C. 1395m) is amended by adding at the end the following new subsection: ``(aa) Payment and Limits for Dental and Oral Health Services.-- ``(1) Payment.--The payment amount under this part for dental and oral health services (as defined in section 1861(nnn)) shall be, subject to paragraphs (3) and (4), 80 percent (or 100 percent, in the case of preventive and screening services described in section 1861(nnn)(1)(A)) of the lesser of-- ``(A) the actual charge for the service; or ``(B)(i) in the case of such services furnished by a doctor of dental surgery or of dental medicine (as described in section 1861(r)(2)), the amount determined under the fee schedule established under paragraph (2); or ``(ii) in the case of such services furnished by an oral health professional (as defined in section 1861(nnn)(3)), 85 percent of the amount determined under the fee schedule established under paragraph (2). ``(2) Establishment of fee schedule for dental and oral health services.-- ``(A) Establishment.-- ``(i) In general.--The Secretary shall establish a fee schedule for dental and oral health services furnished in 2027 and subsequent years. The fee schedule amount for a dental or oral health service shall be equal to 70 percent of the national median fee (as determined under subparagraph (B)) for the service or a similar service for the year (or, in the case of dentures, at the bundled payment amount under clause (iv) of such subparagraph), adjusted by the geographic adjustment factor established under section 1848(e)(2) for the area for the year. ``(ii) Consultation.--In carrying out this paragraph, the Secretary shall consult annually with organizations representing dentists and other providers who furnish dental and oral health services and shall share with such providers the data and data analysis used to determine fee schedule amounts under this paragraph. ``(B) Determination of national median fee.-- ``(i) In general.--For purposes of subparagraph (A), the Secretary shall apply the national median fee for a dental or oral health service for 2028 and subsequent years in accordance with this subparagraph. ``(ii) Use of 2020 dental fee survey.-- ``(I) In general.--Except as provided in clause (iii) and clause (iv), the national median fee for a dental or oral health service shall be equal to-- ``(aa) for 2028, the median fee for the service in the table titled `General Practitioners-National' of the `2020 Survey of Dental Fees' published by the American Dental Association, increased by the applicable percent increase for the year determined under subclause (II), as reduced by the productivity adjustment under subclause (III); and ``(bb) for 2029 and subsequent years, the amount determined under this subclause for the preceding year, updated pursuant to subparagraph (C)(i). ``(II) Applicable percent increase.--The applicable percent increase determined under this subclause for a year is an amount equal to the percentage increase between-- ``(aa) the consumer price index for all urban consumers (United States city average) ending with June of the previous year; and ``(bb) the consumer price index for all urban consumers (United States city average) ending with June of 2027. ``(III) Productivity adjustment.--After determining the applicable percentage increase under subclause (II) for a year, the Secretary shall reduce such percentage increase by the productivity adjustment described in section 1886(b)(3)(B)(xi)(II). ``(iii) Determination if insufficient survey data.--If the Secretary determines there is insufficient data under the Survey described in clause (ii) with respect to a dental or oral health service, the national median fee for the service for a year shall be equal to an amount established for the service using 1 or more of the following methods, as determined appropriate by the Secretary: ``(I) The payment basis determined under section 1848. ``(II) Fee schedules for dental and oral health services which shall include, as practicable, fee schedules-- ``(aa) under Medicare Advantage plans under part C; ``(bb) under State plans (or waivers of such plans) under title XIX; and ``(cc) established by other health care payers. ``(iv) Special rule for dentures.-- ``(I) In general.--The Secretary shall make payment for dentures and associated professional services as a bundled payment as determined by the Secretary. ``(II) Payment considerations.--In establishing such bundled payment, the Secretary shall consider the national median fee for the service for the year determined under clause (ii) or (iii) and the rate determined for such dentures under the Federal Supply Schedule of the General Services Administration, as published by such Administration in 2021, updated to the year involved using the applicable percent increase for the year determined under clause (ii)(II), as reduced by the productivity adjustment under clause (ii)(III), and shall ensure that the payment component for dentures under such bundled payment does not exceed the maximum rate determined for such dentures under the Federal Supply Schedule, as so published and updated to the year involved. ``(C) Annual update and adjustments.-- ``(i) Annual update.--The Secretary shall update payment amounts determined under the fee schedule from year to year beginning in 2029 by increasing such amounts from the prior year by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period ending with June of the preceding year, reduced by the productivity adjustment described in section 1886(b)(3)(B)(xi)(II). ``(ii) Adjustments.-- ``(I) In general.--The Secretary shall, to the extent the Secretary determines to be necessary and subject to subclause (II), adjust the amounts determined under the fee schedule established under this paragraph for 2029 and subsequent years to take into account changes in dental practice, coding changes, new data on work, practice, or malpractice expenses, or the addition of new procedures. ``(II) Limitation on annual adjustments.--The adjustments under subclause (I) for a year shall not cause the amount of expenditures under this part for the year to differ by more than $20,000,000 from the amount of expenditures under this part that would have been made if such adjustments had not been made. ``(3) Limitations.--With respect to dental and oral health services that are preventive and screening services described in paragraph (1)(A) of section 1861(nnn)-- ``(A) payment shall be made under this part for-- ``(i) not more than 2 oral exams in a year; ``(ii) not more than 2 dental cleanings in a year; ``(iii) not more than 1 fluoride treatment in a year; and ``(iv) not more than 1 full-mouth series of x-rays as part of a preventive and screening oral exam every 3 years; and ``(B) in the case of preventive and screening services not described in subparagraph (A), payment shall be made under this part only at such frequencies determined appropriate by the Secretary. ``(4) Incentives for rural providers.--In the case of dental and oral health services [[Page S3981]] furnished by a doctor of dental surgery or of dental medicine (as described in section 1861(r)(2)) or an oral health professional (as defined in section 1861(nnn)(3)) who predominantly furnishes such services under this part in an area that is designated by the Secretary (under section 332(a)(1)(A) of the Public Health Service Act) as a health professional shortage area, in addition to the amount of payment that would otherwise be made for such services under this subsection, there also shall be paid an amount equal to 10 percent of the payment amount for the service under this subsection for such doctor or professional. ``(5) Limitation on beneficiary liability.--The provisions of section 1848(g) shall apply to a nonparticipating doctor of dental surgery or of dental medicine (as described in section 1861(r)(2)) who does not accept payment on an assignment-related basis for dental and oral health services furnished with respect to an individual enrolled under this part in the same manner as such provisions apply with respect to a physician's service. ``(6) Establishment of dental administrator.--The Secretary shall designate 1 or more (not to exceed 4) medicare administrative contractors under section 1874A to establish coverage policies and establish such policies and process claims for payment for dental and oral health services, as determined appropriate by the Secretary.''. (4) Inclusion of oral health professionals as certain practitioners.--Section 1842(b)(18)(C) of the Social Security Act (42 U.S.C. 1395u(b)(18)(C)) is amended by adding at the end the following new clause: ``(ix) With respect to 2028 and each subsequent year, an oral health professional (as defined in section 1861(nnn)(3)).''. (5) Exclusion modifications.--Section 1862(a) of the Social Security Act (42 U.S.C. 1395y(a)) is amended-- (A) in paragraph (1)-- (i) in subparagraph (O), by striking ``and'' at the end; (ii) in subparagraph (P), by striking the semicolon at the end and inserting ``, and''; and (iii) by adding at the end the following new subparagraph: ``(Q) in the case of dental and oral health services (as defined in section 1861(nnn)) for which a limitation is applicable under section 1834(aa)(3), which are furnished more frequently than is provided under such section;''; and (B) in paragraph (12), by inserting before the semicolon at the end the following: ``and except that payment shall be made under part B for dental and oral health services that are covered under section 1861(s)(2)(KK)''. (6) Inclusion as excepted medical treatment.--Section 1821(b)(5)(A) of the Social Security Act (42 U.S.C. 1395i- 5(b)(5)(A)) is amended-- (A) in clause (ii), by striking ``or'' at the end; (B) in clause (iii), by striking the period and inserting ``, or''; and (C) by adding at the end the following new clause: ``(iv) consisting of dental and oral health services (as defined in subsection (mmm) of section 1861) that are payable under part B as a result of the amendments made by the Medicare Dental, Hearing, and Vision Expansion Act of 2025.''. (7) Rural health clinics and federally qualified health centers.-- (A) Coverage of dental and oral health services.--Section 1861(aa) of the Social Security Act (42 U.S.C. 1395x(aa)), is amended-- (i) in paragraph (1)-- (I) in subparagraph (C), by striking ``and'' at the end; (II) in subparagraph (D), by inserting ``and'' after the comma at the end; and (III) by inserting after subparagraph (D) the following new subparagraph: ``(E) dental and oral health services (as defined in subsection (nnn)) furnished by a doctor of dental surgery or of dental medicine (as described in subsection (r)(2)) or an oral health professional (as defined in subsection (nnn)(3)) who is employed by or working under contract with a rural health clinic if such rural health clinic furnishes such services,''; and (ii) in paragraph (3)(A), by striking ``(D)'' and inserting ``(E)''. (B) Temporary payment rates for certain services under the rhc air and fqhc pps.-- (i) AIR.--Section 1833 of the Social Security Act (42 U.S.C. 1395l) is amended-- (I) in subsection (a)(3)(A), by inserting ``(which shall, in the case of dental and oral health services (as defined in section 1861(nnn)), in lieu of any limits on reasonable costs otherwise applicable, be based on the rates payable for such services under the payment basis determined under section 1848 until such time as the Secretary determines sufficient data has been collected to otherwise apply such limits (or January 1, 2031, if no such determination has been made as of such date))'' after ``may prescribe in regulations''; and (II) by adding at the end the following new subsection: ``(ee) Disregard of Costs Attributable to Certain Services From Calculation of RHC AIR.--Payments for rural health clinic services other than dental and oral health services (as defined in section 1861(nnn)) under the methodology for all-inclusive rates (established by the Secretary) under subsection (a)(3) shall not take into account the costs of such services while rates for such services are based on rates payable for such services under the payment basis established under section 1848.''. (ii) PPS.--Section 1834(o) of the Social Security Act (42 U.S.C. 1395m(o)) is amended by adding at the end the following new paragraph: ``(6) Temporary payment rates based on pfs for certain services.--The Secretary shall, in establishing payment rates for dental and oral health services (as defined in section 1861(nnn)) that are Federally qualified health center services under the prospective payment system established under this subsection, in lieu of the rates otherwise applicable under such system, base such rates on rates payable for such services under the payment basis established under section 1848 until such time as the Secretary determines sufficient data has been collected to otherwise establish rates for such services under such system (or January 1, 2031, if no such determination has been made as of such date). Payments for Federally qualified health center services other than such dental and oral health services under such system shall not take into account the costs of such services while rates for such services are based on rates payable for such services under the payment basis established under section 1848.''. (8) Implementation.--In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $900,000,000, to remain available until expended, for purposes of implementing the amendments made by this section during the period beginning on January 1, 2025, and ending on September 30, 2034. (c) Providing Coverage for Hearing Care Under the Medicare Program.-- (1) Provision of audiology services by qualified audiologists and hearing aid examination services by qualified hearing aid professionals.-- (A) In general.--Section 1861(ll) of the Social Security Act (42 U.S.C. 1395x(ll)) is amended-- (i) in paragraph (3)-- (I) by inserting ``(A)'' after ``(3)''; (II) in subparagraph (A), as added by subclause (I) of this clause-- (aa) by striking ``means such hearing and balance assessment services'' and inserting ``means-- ``(i) such hearing and balance assessment services and, beginning January 1, 2027, such hearing aid examination services and treatment services (including aural rehabilitation, vestibular rehabilitation, and cerumen management)''; (bb) in clause (i), as added by item (aa) of this subclause, by striking the period at the end and inserting ``; and''; and (cc) by adding at the end the following new clause: ``(ii) beginning January 1, 2027, such hearing aid examination services furnished by a qualified hearing aid professional (as defined in paragraph (4)(C)) as the professional is legally authorized to perform under State law (or the State regulatory mechanism provided by State law), as would otherwise be covered if furnished by a physician.''; and (III) by adding at the end the following new subparagraph: ``(B) Beginning January 1, 2027, audiology services described in subparagraph (A)(i) shall be furnished without a requirement for an order from a physician or practitioner.''; and (ii) in paragraph (4), by adding at the end the following new subparagraph: ``(C) The term `qualified hearing aid professional' means an individual who-- ``(i) is licensed or registered as a hearing aid dispenser, hearing aid specialist, hearing instrument dispenser, or related professional by the State in which the individual furnishes such services; and ``(ii) is accredited by the National Board for Certification in Hearing Instrument Sciences or meets such other requirements as the Secretary determines appropriate (including requirements relating to educational certifications or accreditations) taking into account any additional relevant requirements for hearing aid specialists, hearing aid dispensers, and hearing instrument dispensers established by Medicare Advantage organizations under part C, State plans (or waivers of such plans) under title XIX, and group health plans and health insurance issuers (as such terms are defined in section 2791 of the Public Health Service Act).''. (B) Payment for qualified hearing aid professionals.-- Section 1833(a)(1) of the Social Security Act (42 U.S.C. 1395l(a)(1)), as amended by subsection (b)(3)(A), is amended-- (i) by striking ``and'' before ``(II)''; and (ii) by inserting before the semicolon at the end the following: ``and (JJ) with respect to hearing aid examination services (as described in paragraph (3)(A)(ii) of section 1861(ll)) furnished by a qualified hearing aid professional (as defined in paragraph (4)(C) of such section), the amounts paid shall be equal to 80 percent of the lesser of the actual charge for such services or 85 percent of the amount for such services determined under the payment basis determined under section 1848''. (C) Inclusion of qualified audiologists and qualified hearing aid professionals as certain practitioners to receive payment on an assignment-related basis.-- [[Page S3982]] (i) Qualified audiologists.--Section 1842(b)(18)(C) of the Social Security Act (42 U.S.C. 1395u(b)(18)(C)), as amended by subsection (b)(4), is amended by adding at the end the following new clause: ``(x) Beginning on January 1, 2027, a qualified audiologist (as defined in section 1861(ll)(4)(B)).''. (ii) Qualified hearing aid professionals.--Section 1842(b)(18) of the Social Security Act (42 U.S.C. 1395u(b)(18)) is amended-- (I) in each of subparagraphs (A) and (B), by striking ``subparagraph (C)'' and inserting ``subparagraph (C) or, beginning on January 1, 2027, subparagraph (E)''; and (II) by adding at the end the following new subparagraph: ``(E) A practitioner described in this subparagraph is a qualified hearing aid professional (as defined in section 1861(ll)(4)(C)).''. (2) Coverage of hearing aids.-- (A) Inclusion of hearing aids as prosthetic devices.-- Section 1861(s)(8) of the Social Security Act (42 U.S.C. 1395x(s)(8)) is amended by inserting ``, and including hearing aids (as described in section 1834(h)(7)) furnished on or after January 1, 2027, to individuals with moderately severe, severe, or profound hearing loss'' before the semicolon at the end. (B) Payment limitations for hearing aids.--Section 1834(h) of the Social Security Act (42 U.S.C. 1395m(h)) is amended by adding at the end the following new paragraphs: ``(6) Payment only on an assignment-related basis.--Payment for hearing aids for which payment may be made under this part may be made only on an assignment-related basis. The provisions of subparagraphs (A) and (B) of section 1842(b)(18) shall apply to hearing aids in the same manner as they apply to services furnished by a practitioner described in subparagraph (C) of such section. ``(7) Limitations for hearing aids.-- ``(A) In general.--Payment may be made under this part with respect to an individual, with respect to hearing aids furnished by a qualified hearing aid supplier (as defined in subparagraph (C)) on or after January 1, 2027-- ``(i) not more than once per ear during a 5-year period; ``(ii) only for types of such hearing aids that are determined appropriate by the Secretary; and ``(iii) only if furnished pursuant to a written order of a physician, qualified audiologist (as defined in section 1861(ll)(4)), qualified hearing aid professional (as defined in subparagraph (C) of such section), physician assistant, nurse practitioner, or clinical nurse specialist. ``(B) Special rule.--The payment basis determined under this subsection (including after application of paragraph (1)(H), relating to application of competitive acquisition) for hearing aids furnished by a qualified hearing aid supplier on or after January 1, 2027, shall not exceed the rate determined for such hearing aids under the Federal Supply Schedule of the General Services Administration, as published by such Administration in 2021, updated to the year involved using the applicable percent increase for the year. ``(C) Definitions.--In this subsection: ``(i) Hearing aid.--The term `hearing aid' means the item and related services including selection, fitting, adjustment, and patient education and training. ``(ii) Qualified hearing aid supplier.--The term `qualified hearing aid supplier' means-- ``(I) a qualified audiologist; ``(II) a physician (as defined in section 1861(r)(1)); ``(III) a physician assistant, nurse practitioner, or clinical nurse specialist; ``(IV) a qualified hearing aid professional (as defined in section 1861(ll)(4)(C)); and ``(V) other suppliers as determined by the Secretary.''. (C) Application of competitive acquisition.-- (i) In general.--Section 1834(h)(1)(H) of the Social Security Act (42 U.S.C. 1395m(h)(1)(H)) is amended-- (I) in the header, by inserting ``and hearing aids'' after ``orthotics''; (II) in the matter preceding clause (i), by inserting ``or of hearing aids described in paragraph (2)(D) of such section,'' after ``2011,''; and (III) in clause (i), by inserting ``or such hearing aids'' after ``such orthotics''. (ii) Conforming amendments.-- (I) In general.--Section 1847(a)(2) of the Social Security Act (42 U.S.C. 1395w-3(a)(2)) is amended by adding at the end the following new subparagraph: ``(E) Hearing aids.--Hearing aids described in section 1861(s)(8) for which payment would otherwise be made under section 1834(h).''. (II) Exemption of certain items from competitive acquisition.--Section 1847(a)(7) of the Social Security Act (42 U.S.C. 1395w-3(a)(7)) is amended by adding at the end the following new subparagraph: ``(C) Certain hearing aids.--Those items and services described in paragraph (2)(E) if furnished by a physician or other practitioner (as defined by the Secretary) to the physician's or practitioner's own patients as part of the physician's or practitioner's professional service.''. (III) Implementation.--Section 1847(a) of the Social Security Act (42 U.S.C. 1395w-3(a)) is amended by adding at the end the following new paragraph: ``(8) Competition with respect to hearing aids.--Not later than January 1, 2031, the Secretary shall begin the competition with respect to the items and services described in paragraph (2)(E).''. (D) Physician self-referral law.--Section 1877(b) of the Social Security Act (42 U.S.C. 1395nn(b)) is amended by adding at the end the following new paragraph: ``(6) Hearing aids and services.--In the case of hearing aid examination services and hearing aids-- ``(A) furnished on or after January 1, 2027, and before January 1, 2029; and ``(B) furnished on or after January 1, 2029, if the financial relationship specified in subsection (a)(2) meets such requirements the Secretary imposes by regulation to protect against program or patient abuse.''. (3) Exclusion modification.--Section 1862(a)(7) of the Social Security Act (42 U.S.C. 1395y(a)(7)) is amended by inserting ``(except such hearing aids or examinations therefor as described in and otherwise allowed under section 1861(s)(8))'' after ``hearing aids or examinations therefor''. (4) Inclusion as excepted medical treatment.--Section 1821(b)(5)(A)(iv) of the Social Security Act (42 U.S.C. 1395i-5(b)(5)(A)(iv)), as added by subsection (b)(6), is amended by inserting ``, audiology services described in subsection (ll)(3) of such section, or hearing aids described in subsection (s)(8) of such section'' after ``section 1861)''. (5) Rural health clinics and federally qualified health centers.-- (A) Clarifying coverage of audiology services as physicians' services.--Section 1861(aa)(1)(A) of the Social Security Act (42 U.S.C. 1395x(aa)(1)(A)) is amended by inserting ``(including audiology services (as defined in subsection (ll)(3)))'' after ``physicians' services''. (B) Inclusion of qualified audiologists and qualified hearing aid professionals as rhc and fqhc practitioners.-- Section 1861(aa)(1)(B) of the Social Security Act (42 U.S.C. 1395x(aa)(1)(B)) is amended by inserting ``or by a qualified audiologist or a qualified hearing aid professional (as such terms are defined in subsection (ll)),'' after ``(as defined in subsection (hh)(1)),''. (C) Temporary payment rates for certain services under the rhc air and fqhc pps.-- (i) AIR.--Section 1833 of the Social Security Act (42 U.S.C. 1395l), as amended by subsection (b)(7)(B)(i), is amended-- (I) in subsection (a)(3)(A), by inserting ``or audiology services (as defined in section 1861(ll)(3))'' after ``(as defined in section 1861(nnn)''; and (II) in subsection (ee), by inserting ``or audiology services (as defined in section 1861(ll)(3))'' after ``(as defined in section 1861(nnn)''. (ii) PPS.--Section 1834(o)(6) of the Social Security Act (42 U.S.C. 1395m(o)(6)), as added by subsection (b)(7)(B)(ii), is amended-- (I) in the first sentence, by inserting ``or audiology services (as defined in section 1861(ll)(3))'' after ``(as defined in section 1861(nnn))''; and (II) in the second sentence, by inserting ``or such audiology services'' after ``such dental and oral health services''. (6) Expediting implementation.--The Secretary of Health and Human Services shall implement this section for 2027 and 2028 through program instruction or other forms of program guidance. (7) Funding.--In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $370,000,000, to remain available until expended, for purposes of implementing the amendments made by this section during the period beginning on January 1, 2026, and ending on September 30, 2035. (d) Providing Coverage for Vision Care Under the Medicare Program.-- (1) Coverage.--Section 1861(s)(2) of the Social Security Act (42 U.S.C. 1395x(s)(2)), as amended by subsection (b)(1), is amended-- (A) in subparagraph (JJ), by striking ``and'' after the semicolon at the end; (B) in subparagraph (KK), by striking the period at the end and adding ``; and''; and (C) by adding at the end the following new subparagraph: ``(LL) vision services (as defined in subsection (ooo));''. (2) Vision services defined.--Section 1861 of the Social Security Act (42 U.S.C. 1395x), as amended by subsection (b)(2), is amended by adding at the end the following new subsection: ``(ooo) Vision Services.--The term `vision services' means routine eye examinations to determine the refractive state of the eyes, including procedures performed during the course of such examination, furnished on or after January 1, 2027, by or under the direct supervision of an ophthalmologist or optometrist who is legally authorized to furnish such examinations or procedures (as applicable) under State law (or the State regulatory mechanism provided by State law) of the State in which the examinations or procedures are furnished.''. (3) Payment limitations.--Section 1834 of the Social Security Act (42 U.S.C. 1395m), as amended by subsection (b)(3)(B), is amended by adding at the end the following new subsection: ``(bb) Limitation for Vision Services.--With respect to vision services (as defined in section 1861(ooo)) and an individual, payment shall be made under this part for only 1 routine eye examination described in such subsection during a 2-year period.''. [[Page S3983]] (4) Payment under physician fee schedule.--Section 1848(j)(3) of the Social Security Act (42 U.S.C. 1395w- 4(j)(3)) is amended by inserting ``(2)(LL),'' before ``(3)''. (5) Coverage of conventional eyeglasses.--Section 1861(s)(8) of the Social Security Act (42 U.S.C. 1395x(s)(8)), as amended by subsection (c)(2)(A), is amended by striking ``, and including one pair of conventional eyeglasses or contact lenses furnished subsequent to each cataract surgery with insertion of an intraocular lens'' and inserting ``, including 1 pair of conventional eyeglasses or contact lenses furnished subsequent to each cataract surgery with insertion of an intraocular lens, if furnished before January 1, 2027, and including conventional eyeglasses (as described in section 1834(h)(8)), whether or not furnished subsequent to such a surgery, if furnished on or after January 1, 2027''. (6) Special payment rules for eyeglasses.-- (A) Limitations.--Section 1834(h) of the Social Security Act (42 U.S.C. 1395m(h)), as amended by subsection (c)(2)(B), is amended by adding at the end the following new paragraph: ``(8) Payment limitations for eyeglasses.-- ``(A) In general.--With respect to conventional eyeglasses furnished to an individual on or after January 1, 2027, subject to subparagraph (B), payment shall be made under this part only during a 2-year period, for 1 pair of eyeglasses (including lenses and the frame). ``(B) Exception.--With respect to a 2-year period described in subparagraph (A), in the case of an individual who receives cataract surgery with insertion of an intraocular lens, payment shall be made under this part for 1 pair of conventional eyeglasses furnished subsequent to such cataract surgery during such period. ``(C) Special rule.--The payment basis determined under this subsection (including after application of paragraph (1)(H), relating to application of competitive acquisition) for conventional eyeglasses furnished to an individual on or after January 1, 2027, shall not exceed the rate determined for such eyeglasses under the Federal Supply Schedule of the General Services Administration, as published by such Administration in 2021, updated to the year involved using the applicable percent increase for the year. ``(D) No coverage of certain items.--Payment shall not be made under this part for deluxe eyeglasses or conventional reading glasses.''. (B) Application of competitive acquisition.-- (i) In general.--Section 1834(h)(1)(H) of the Social Security Act (42 U.S.C. 1395m(h)(1)(H)), as amended by subsection (c)(2)(C)(i), is amended-- (I) in the heading, by striking ``and hearing aids'' and inserting ``hearing aids, and eyeglasses''; (II) in the matter preceding clause (i)-- (aa) by striking ``or of hearing aids'' and inserting ``of hearing aids''; and (bb) by inserting ``or of eyeglasses described in paragraph (2)(E) of such section,'' after ``paragraph (2)(D) of such section,''; and (III) in clause (i), by striking ``or such hearing aids'' and inserting ``, such hearing aids, or such eyeglasses''. (ii) Conforming amendment.--Section 1847(a)(2) of the Social Security Act (42 U.S.C. 1395w-3(a)(2)), as amended by subsection (c)(2)(C)(ii)(I), is amended by adding at the end the following new subparagraph: ``(F) Eyeglasses.--Eyeglasses described in section 1861(s)(8) for which payment would otherwise be made under section 1834(h).''. (iii) Implementation.--Section 1847(a) of the Social Security Act (42 U.S.C. 1395w-3(a)), as amended by subsection (c)(2)(C)(ii)(III), is amended by adding at the end the following new paragraph: ``(9) Competition with respect to eyeglasses.--Not later than January 1, 2030, the Secretary shall begin the competition with respect to the items and services described in paragraph (2)(F).''. (7) Exclusion modifications.--Section 1862(a) of the Social Security Act (42 U.S.C. 1395y(a)), as amended by subsection (b)(5), is amended-- (A) in paragraph (1)-- (i) in subparagraph (P), by striking ``and'' at the end; (ii) in subparagraph (Q), by striking the semicolon at the end and inserting ``, and''; and (iii) by adding at the end the following new subparagraph: ``(R) in the case of vision services (as defined in section 1861(ooo)) that are routine eye examinations as described in such section, which are furnished more frequently than once during a 2-year period;''; and (B) in paragraph (7)-- (i) by inserting ``(other than such an examination that is a vision service that is covered under section 1861(s)(2)(LL))'' after ``eye examinations''; and (ii) by inserting ``(other than such a procedure that is a vision service that is covered under section 1861(s)(2)(LL))'' after ``refractive state of the eyes''. (8) Inclusion as excepted medical treatment.--Section 1821(b)(5)(A)(iv) of the Social Security Act (42 U.S.C. 1395i-5(b)(5)(A)(iv)), as added by subsection (b)(6) and amended by subsection (c)(4), is amended-- (A) by striking ``or hearing aids'' and inserting ``hearing aids''; and (B) by inserting ``, or vision services (as defined in subsection (ooo) of such section)'' after ``subsection (s)(8) of such section''. (9) Rural health clinics and federally qualified health centers.-- (A) Clarifying coverage of vision services as physicians' services.--Section 1861(aa)(1)(A) of the Social Security Act (42 U.S.C. 1395x(aa)(1)(A)), as amended by subsection (c)(5)(A), is amended by inserting ``and vision services (as defined in subsection (ooo))'' after ``(as defined in subsection (ll)(3))''. (B) Temporary payment rates for certain services under the rhc air and fqhc pps.-- (i) AIR.--Section 1833 of the Social Security Act (42 U.S.C. 1395l), as amended by subsections (b)(7)(B)(i) and (c)(5)(C)(i), is amended-- (I) in subsection (a)(3)(A)-- (aa) by striking ``or audiology'' and inserting ``, audiology''; and (bb) by inserting ``, or vision services (as defined in section 1861(ooo))'' after ``(as defined in section 1861(ll)(3))''; and (II) in subsection (ee)-- (aa) by striking ``or audiology'' and inserting ``, audiology''; and (bb) by inserting ``, or vision services (as defined in section 1861(ooo))'' after ``(as defined in section 1861(ll)(3))''. (ii) PPS.--Section 1834(o)(6) of the Social Security Act (42 U.S.C. 1395m(o)(6)), as added by subsection (b)(7)(B)(ii) and amended by subsection (c)(5)(C)(ii), is amended-- (I) in the first sentence-- (aa) by striking ``or audiology'' and inserting ``, audiology''; and (bb) by inserting ``, or vision services (as defined in section 1861(ooo))'' after ``(as defined in section 1861(ll)(3))''; and (II) in the second sentence, by striking ``or such audiology services'' and inserting ``, such audiology services, or such vision services''. (10) Expediting implementation.--The Secretary of Health and Human Services shall implement this section for 2027 and 2028 through program instruction or other forms of program guidance. (11) Funding.--In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended, for purposes of implementing the amendments made by this section during the period beginning on January 1, 2026, and ending on September 30, 2034. SEC. 71206. IMPROVEMENTS TO THE MEDICARE DRUG PRICE NEGOTIATION PROGRAM. (a) Acceleration of the Selection of Negotiation-Eligible Drugs.--Section 1192(a) of the Social Security Act (42 U.S.C. 1320f-1(a)) is amended-- (1) in paragraph (2), by adding ``and'' at the end; (2) in paragraph (3)-- (A) by striking ``2028, 15 negotiation-eligible drugs'' and inserting ``2028 or a subsequent initial price applicability year, at least 50 negotiation-eligible drugs''; (B) by striking ``less than 15'' and inserting ``less than 50''; and (C) by striking ``; and'' at the end and inserting a period; and (3) by striking paragraph (4). (b) Improvements to the Definition of Negotiation-Eligible Drugs.--Subparagraphs (A) and (B) of section 1192(d)(1) of the Social Security Act (42 U.S.C. 1320f-1(d)(1)) are each amended by striking ``among the 50'' and inserting ``among the 50 (or, in the case of initial price applicability year 2028 or a subsequent initial price applicability year, 125)''. (c) Improvements to the Definition of Qualifying Single Source Drugs.--Subparagraphs (A)(ii) and (B)(ii) of section 1192(e)(1) of the Social Security Act (42 U.S.C. 1320f- 1(e)(1)) are each amended by striking ``for which'' and inserting ``with respect to initial price applicability year 2026 and 2027, for which''. (d) Improvement to the Ceiling for Maximum Fair Price.-- Section 1194(c)(1) of the Social Security Act (42 U.S.C. 1320f-3(c)(1)) is amended-- (1) in subparagraph (A), by striking ``or the amount under subparagraph (C)'' and inserting ``, the amount under subparagraph (C), or, if available, the amount under subparagraph (D)''; and (2) by adding at the end the following new subparagraph: ``(D) Subparagraph (D) amount.-- ``(i) In general.--An amount equal to the international maximum fair price for the drug or biological product. ``(ii) International maximum fair price.--For purposes of clause (i), the term `international maximum fair price' means, with respect to a drug or biological product, an amount equal to the highest price (which shall be the net price, if practicable, and volume-weighted, if practicable) for a unit (as defined in section 1191(c)(6)) of such drug or biological product for sales of such drug or biological product (calculated across different dosage forms and strengths of the drug or biological product and not based on the specific formulation or package size or package type), as computed (as of the date of publication of such drug or biological product as a selected drug) among any applicable countries for which pricing information is available with respect to such drug or biological product. ``(iii) Applicable countries.-- [[Page S3984]] ``(I) In general.--For purposes of clause (ii), the term `applicable countries' includes any country described in subclause (II) for which, with respect to a drug or biological product, there is available a price for any unit of such drug or biological product for sales of such drug or biological product in such country. ``(II) Countries described.--For purposes of subclause (I), the following countries are described in this subclause: ``(aa) Australia. ``(bb) Canada. ``(cc) France. ``(dd) Germany. ``(ee) Japan. ``(ff) The United Kingdom.''. (e) Effective Date.--The amendments made by this section shall apply with respect to initial price applicability years (as defined in section 1191(b) of the Social Security Act (42 U.S.C. 1320f(b)) beginning with initial price applicability year 2028. ______ SA 2436. Mr. SANDERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70106. ______ SA 2437. Mr. SANDERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike title II. ______ SA 2438. Ms. BALDWIN submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in subtitle H of title VIII, insert the following: SEC. __. PROVIDING FOR ADDITIONAL REQUIREMENTS WITH RESPECT TO THE NAVIGATOR PROGRAM. (a) In General.--Section 1311(i) of the Patient Protection and Affordable Care Act (42 U.S.C. 18031(i)) is amended-- (1) in paragraph (2), by adding at the end the following new subparagraph: ``(C) Selection of recipients.--In the case of an Exchange established and operated by the Secretary within a State pursuant to section 1321(c), in awarding grants under paragraph (1), the Exchange shall-- ``(i) select entities to receive such grants based on an entity's demonstrated capacity to carry out each of the duties specified in paragraph (3); ``(ii) not take into account whether or not the entity has demonstrated how the entity will provide information to individuals relating to group health plans that are not qualified health plans; and ``(iii) ensure that, each year, the Exchange awards such a grant to at least 1 entity described in this paragraph that is a community and consumer-focused nonprofit group.''; (2) in paragraph (3)-- (A) in subparagraph (C), by inserting after ``qualified health plans'' the following: ``, State Medicaid plans under title XIX of the Social Security Act, and State children's health insurance programs under title XXI of such Act''; (B) in subparagraph (D), by striking ``and'' at the end; (C) in subparagraph (E), by striking the period and inserting ``; and''; (D) by adding at the end the following: ``(F) conduct public education activities in plain language to raise awareness of the requirements of and the protections provided under qualified health plans.''; and (E) by adding at the end the following flush left sentence: ``The duties specified in the preceding sentence may be carried out by such a navigator at any time during a year.''; (3) in paragraph (4)(A)-- (A) in the matter preceding clause (i), by striking ``not''; (B) in clause (i)-- (i) by inserting ``not'' before ``be''; and (ii) by striking ``; or'' and inserting a semicolon; (C) in clause (ii)-- (i) by inserting ``not'' before ``receive''; and (ii) by striking the period and inserting a semicolon; and (D) by adding at the end the following new clause: ``(iii) maintain physical presence in the State of the Exchange so as to allow in-person assistance to consumers.''; and (4) in paragraph (6)-- (A) by striking ``Funding.--Grants under'' and inserting ``Funding.-- ``(A) State exchanges.--Grants under''; and (B) by adding at the end the following new subparagraph: ``(B) Federal exchanges.--For purposes of carrying out this subsection, with respect to an Exchange established and operated by the Secretary within a State pursuant to section 1321(c), the Secretary shall obligate $100,000,000 out of amounts collected through the user fees on participating health insurance issuers pursuant to section 156.50 of title 45, Code of Federal Regulations (or any successor regulations) for fiscal year 2026 and each subsequent fiscal year. Such amount for a fiscal year shall remain available until expended.''. (b) Effective Date.--The amendments made by subsection (a) shall apply with respect to plan years beginning on or after January 1, 2026. ______ SA 2439. Ms. BALDWIN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title __, insert the following: SEC. _____. FLEXIBILITY FOR ELIGIBLE ENTITIES UNDER THE BROADBAND EQUITY, ACCESS, AND DEPLOYMENT PROGRAM. Section 60102 of division F of Public Law 117-58 (47 U.S.C. 1702) is amended by adding at the end the following: ``(p) Flexibility for Eligible Entities.--Notwithstanding the policy notice entitled `Broadband Equity, Access, and Deployment (BEAD) Program: BEAD Restructuring Policy Notice' issued by the Assistant Secretary on June 6, 2025 (in this subsection referred to as the `June 6 policy notice')-- ``(1) an eligible entity may choose whether to expend grant funds received under this section in accordance with either-- ``(A) the notice of funding opportunity issued by the Assistant Secretary on May 12, 2022 under subsection (e)(1)(A)(i), without regard to the June 6 policy notice; or ``(B) the notice of funding opportunity described in subparagraph (A) as modified by the June 6 policy notice; and ``(2) an eligible entity that makes the choice described in paragraph (1) (A) shall not be required to comply with the June 6 policy notice in order to gain approval of the eligible entity's final proposal from the Assistant Secretary.''. ______ SA 2440. Ms. BALDWIN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 1181(8) of title 14, United States Code (as added by section 40001), strike ``and medium'' and insert ``, medium, and heavy''. ______ SA 2441. Ms. BALDWIN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 71117. ______ SA 2442. Ms. BALDWIN (for herself, Mr. Booker, Ms. Warren, and Mr. Gallego) submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. PARTNERSHIP INTERESTS TRANSFERRED IN CONNECTION WITH PERFORMANCE OF SERVICES. (a) Modification to Election To Include Partnership Interest in Gross Income in Year of Transfer.--Subsection (c) of section 83 is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: ``(4) Partnership interests.--Except as provided by the Secretary-- ``(A) In general.--In the case of any transfer of an interest in a partnership in connection with the provision of services to (or for the benefit of) such partnership-- ``(i) the fair market value of such interest shall be treated for purposes of this section as being equal to the amount of the distribution which the partner would receive if the partnership sold (at the time of the transfer) all of its assets at fair market value and distributed the proceeds of such sale (reduced by the liabilities of the partnership) to its partners in liquidation of the partnership, and ``(ii) the person receiving such interest shall be treated as having made the election under subsection (b)(1) unless such person makes an election under this paragraph to have such subsection not apply. ``(B) Election.--The election under subparagraph (A)(ii) shall be made under rules similar to the rules of subsection (b)(2).''. (b) Effective Date.--The amendments made by this section shall apply to interests in partnerships transferred after the date of the enactment of this Act. SEC. _____. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT SERVICES TO PARTNERSHIPS. (a) In General.--Part I of subchapter K of chapter 1 is amended by adding at the end the following new section: [[Page S3985]] ``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT SERVICES TO PARTNERSHIPS. ``(a) Treatment of Distributive Share of Partnership Items.--For purposes of this title, in the case of an investment services partnership interest-- ``(1) In general.--Notwithstanding section 702(b)-- ``(A) an amount equal to the net capital gain with respect to such interest for any partnership taxable year shall be treated as ordinary income, and ``(B) subject to the limitation of paragraph (2), an amount equal to the net capital loss with respect to such interest for any partnership taxable year shall be treated as an ordinary loss. ``(2) Recharacterization of losses limited to recharacterized gains.--The amount treated as ordinary loss under paragraph (1)(B) for any taxable year shall not exceed the excess (if any) of-- ``(A) the aggregate amount treated as ordinary income under paragraph (1)(A) with respect to the investment services partnership interest for all preceding partnership taxable years to which this section applies, over ``(B) the aggregate amount treated as ordinary loss under paragraph (1)(B) with respect to such interest for all preceding partnership taxable years to which this section applies. ``(3) Allocation to items of gain and loss.-- ``(A) Net capital gain.--The amount treated as ordinary income under paragraph (1)(A) shall be allocated ratably among the items of long-term capital gain taken into account in determining such net capital gain. ``(B) Net capital loss.--The amount treated as ordinary loss under paragraph (1)(B) shall be allocated ratably among the items of long-term capital loss and short-term capital loss taken into account in determining such net capital loss. ``(4) Terms relating to capital gains and losses.--For purposes of this section-- ``(A) In general.--Net capital gain, long-term capital gain, and long-term capital loss, with respect to any investment services partnership interest for any taxable year, shall be determined under section 1222, except that such section shall be applied-- ``(i) without regard to the recharacterization of any item as ordinary income or ordinary loss under this section, ``(ii) by only taking into account items of gain and loss taken into account by the holder of such interest under section 702 (other than subsection (a)(9) thereof) with respect to such interest for such taxable year, and ``(iii) by treating property which is taken into account in determining gains and losses to which section 1231 applies as capital assets held for more than 1 year. ``(B) Net capital loss.--The term `net capital loss' means the excess of the losses from sales or exchanges of capital assets over the gains from such sales or exchanges. Rules similar to the rules of clauses (i) through (iii) of subparagraph (A) shall apply for purposes of the preceding sentence. ``(5) Special rule for dividends.--Any dividend allocated with respect to any investment services partnership interest shall not be treated as qualified dividend income for purposes of section 1(h). ``(6) Special rule for qualified small business stock.-- Section 1202 shall not apply to any gain from the sale or exchange of qualified small business stock (as defined in section 1202(c)) allocated with respect to any investment services partnership interest. ``(b) Dispositions of Partnership Interests.-- ``(1) Gain.-- ``(A) In general.--Any gain on the disposition of an investment services partnership interest shall be-- ``(i) treated as ordinary income, and ``(ii) recognized notwithstanding any other provision of this subtitle. ``(B) Gift and transfers at death.--In the case of a disposition of an investment services partnership interest by gift or by reason of death of the taxpayer-- ``(i) subparagraph (A) shall not apply, ``(ii) such interest shall be treated as an investment services partnership interest in the hands of the person acquiring such interest, and ``(iii) any amount that would have been treated as ordinary income under this subsection had the decedent sold such interest immediately before death shall be treated as an item of income in respect of a decedent under section 691. ``(2) Loss.--Any loss on the disposition of an investment services partnership interest shall be treated as an ordinary loss to the extent of the excess (if any) of-- ``(A) the aggregate amount treated as ordinary income under subsection (a) with respect to such interest for all partnership taxable years to which this section applies, over ``(B) the aggregate amount treated as ordinary loss under subsection (a) with respect to such interest for all partnership taxable years to which this section applies. ``(3) Election with respect to certain exchanges.-- Paragraph (1)(A)(ii) shall not apply to the contribution of an investment services partnership interest to a partnership in exchange for an interest in such partnership if-- ``(A) the taxpayer makes an irrevocable election to treat the partnership interest received in the exchange as an investment services partnership interest, and ``(B) the taxpayer agrees to comply with such reporting and recordkeeping requirements as the Secretary may prescribe. ``(4) Distributions of partnership property.-- ``(A) In general.--In the case of any distribution of property by a partnership with respect to any investment services partnership interest held by a partner, the partner receiving such property shall recognize gain equal to the excess (if any) of-- ``(i) the fair market value of such property at the time of such distribution, over ``(ii) the adjusted basis of such property in the hands of such partner (determined without regard to subparagraph (C)). ``(B) Treatment of gain as ordinary income.--Any gain recognized by such partner under subparagraph (A) shall be treated as ordinary income to the same extent and in the same manner as the increase in such partner's distributive share of the taxable income of the partnership would be treated under subsection (a) if, immediately prior to the distribution, the partnership had sold the distributed property at fair market value and all of the gain from such disposition were allocated to such partner. For purposes of applying subsection (a)(2), any gain treated as ordinary income under this subparagraph shall be treated as an amount treated as ordinary income under subsection (a)(1)(A). ``(C) Adjustment of basis.--In the case a distribution to which subparagraph (A) applies, the basis of the distributed property in the hands of the distributee partner shall be the fair market value of such property. ``(D) Special rules with respect to mergers and divisions.--In the case of a taxpayer which satisfies requirements similar to the requirements of subparagraphs (A) and (B) of paragraph (3), this paragraph and paragraph (1)(A)(ii) shall not apply to the distribution of a partnership interest if such distribution is in connection with a contribution (or deemed contribution) of any property of the partnership to which section 721 applies pursuant to a transaction described in section 708(b)(2). ``(c) Investment Services Partnership Interest.--For purposes of this section-- ``(1) In general.--The term `investment services partnership interest' means any interest in an investment partnership acquired or held by any person in connection with the conduct of a trade or business described in paragraph (2) by such person (or any person related to such person). An interest in an investment partnership held by any person-- ``(A) shall not be treated as an investment services partnership interest for any period before the first date on which it is so held in connection with such a trade or business, ``(B) shall not cease to be an investment services partnership interest merely because such person holds such interest other than in connection with such a trade or business, and ``(C) shall be treated as an investment services partnership interest if acquired from a related person in whose hands such interest was an investment services partnership interest. ``(2) Businesses to which this section applies.--A trade or business is described in this paragraph if such trade or business primarily involves the performance of any of the following services with respect to assets held (directly or indirectly) by one or more investment partnerships referred to in paragraph (1): ``(A) Advising as to the advisability of investing in, purchasing, or selling any specified asset. ``(B) Managing, acquiring, or disposing of any specified asset. ``(C) Arranging financing with respect to acquiring specified assets. ``(D) Any activity in support of any service described in subparagraphs (A) through (C). ``(3) Investment partnership.-- ``(A) In general.--The term `investment partnership' means any partnership if, at the end of any two consecutive calendar quarters ending after the date of enactment of this section-- ``(i) substantially all of the assets of the partnership are specified assets (determined without regard to any section 197 intangible within the meaning of section 197(d)), and ``(ii) less than 75 percent of the capital of the partnership is attributable to qualified capital interests which constitute property held in connection with a trade or business of the owner of such interest. ``(B) Look-through of certain wholly owned entities for purposes of determining assets of the partnership.-- ``(i) In general.--For purposes of determining the assets of a partnership under subparagraph (A)(i)-- ``(I) any interest in a specified entity shall not be treated as an asset of such partnership, and ``(II) such partnership shall be treated as holding its proportionate share of each of the assets of such specified entity. ``(ii) Specified entity.--For purposes of clause (i), the term `specified entity' means, with respect to any partnership (hereafter referred to as the upper-tier partnership), any person which engages in the same trade or business as the upper-tier partnership and is-- ``(I) a partnership all of the capital and profits interests of which are held directly or indirectly by the upper-tier partnership, or ``(II) a foreign corporation which does not engage in a trade or business in the United States and all of the stock of which is held directly or indirectly by the upper-tier partnership. [[Page S3986]] ``(C) Special rules for determining if property held in connection with trade or business.-- ``(i) In general.--Except as otherwise provided by the Secretary, solely for purposes of determining whether any interest in a partnership constitutes property held in connection with a trade or business under subparagraph (A)(ii)-- ``(I) a trade or business of any person closely related to the owner of such interest shall be treated as a trade or business of such owner, ``(II) such interest shall be treated as held by a person in connection with a trade or business during any taxable year if such interest was so held by such person during any 3 taxable years preceding such taxable year, and ``(III) paragraph (5)(B) shall not apply. ``(ii) Closely related persons.--For purposes of clause (i)(I), a person shall be treated as closely related to another person if, taking into account the rules of section 267(c), the relationship between such persons is described in-- ``(I) paragraph (1) or (9) of section 267(b), or ``(II) section 267(b)(4), but solely in the case of a trust with respect to which each current beneficiary is the grantor or a person whose relationship to the grantor is described in paragraph (1) or (9) of section 267(b). ``(D) Antiabuse rules.--The Secretary may issue regulations or other guidance which prevent the avoidance of the purposes of subparagraph (A), including regulations or other guidance which treat convertible and contingent debt (and other debt having the attributes of equity) as a capital interest in the partnership. ``(E) Controlled groups of entities.-- ``(i) In general.--In the case of a controlled group of entities, if an interest in the partnership received in exchange for a contribution to the capital of the partnership by any member of such controlled group would (in the hands of such member) constitute property held in connection with a trade or business, then any interest in such partnership held by any member of such group shall be treated for purposes of subparagraph (A) as constituting (in the hands of such member) property held in connection with a trade or business. ``(ii) Controlled group of entities.--For purposes of clause (i), the term `controlled group of entities' means a controlled group of corporations as defined in section 1563(a)(1), applied without regard to subsections (a)(4) and (b)(2) of section 1563. A partnership or any other entity (other than a corporation) shall be treated as a member of a controlled group of entities if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this sentence). ``(F) Special rule for corporations.--For purposes of this paragraph, in the case of a corporation, the determination of whether property is held in connection with a trade or business shall be determined as if the taxpayer were an individual. ``(4) Specified asset.--The term `specified asset' means securities (as defined in section 475(c)(2) without regard to the last sentence thereof), real estate held for rental or investment, interests in partnerships, commodities (as defined in section 475(e)(2)), cash or cash equivalents, or options or derivative contracts with respect to any of the foregoing. ``(5) Related persons.-- ``(A) In general.--A person shall be treated as related to another person if the relationship between such persons is described in section 267(b) or 707(b). ``(B) Attribution of partner services.--Any service described in paragraph (2) which is provided by a partner of a partnership shall be treated as also provided by such partnership. ``(d) Exception for Certain Capital Interests.-- ``(1) In general.--In the case of any portion of an investment services partnership interest which is a qualified capital interest, all items of gain and loss (and any dividends) which are allocated to such qualified capital interest shall not be taken into account under subsection (a) if-- ``(A) allocations of items are made by the partnership to such qualified capital interest in the same manner as such allocations are made to other qualified capital interests held by partners who do not provide any services described in subsection (c)(2) and who are not related to the partner holding the qualified capital interest, and ``(B) the allocations made to such other interests are significant compared to the allocations made to such qualified capital interest. ``(2) Authority to provide exceptions to allocation requirements.--To the extent provided by the Secretary in regulations or other guidance-- ``(A) Allocations to portion of qualified capital interest.--Paragraph (1) may be applied separately with respect to a portion of a qualified capital interest. ``(B) No or insignificant allocations to nonservice providers.--In any case in which the requirements of paragraph (1)(B) are not satisfied, items of gain and loss (and any dividends) shall not be taken into account under subsection (a) to the extent that such items are properly allocable under such regulations or other guidance to qualified capital interests. ``(C) Allocations to service providers' qualified capital interests which are less than other allocations.--Allocations shall not be treated as failing to meet the requirement of paragraph (1)(A) merely because the allocations to the qualified capital interest represent a lower return than the allocations made to the other qualified capital interests referred to in such paragraph. ``(3) Special rule for changes in services and capital contributions.--In the case of an interest in a partnership which was not an investment services partnership interest and which, by reason of a change in the services with respect to assets held (directly or indirectly) by the partnership or by reason of a change in the capital contributions to such partnership, becomes an investment services partnership interest, the qualified capital interest of the holder of such partnership interest immediately after such change shall not, for purposes of this subsection, be less than the fair market value of such interest (determined immediately before such change). ``(4) Special rule for tiered partnerships.--Except as otherwise provided by the Secretary, in the case of tiered partnerships, all items which are allocated in a manner which meets the requirements of paragraph (1) to qualified capital interests in a lower-tier partnership shall retain such character to the extent allocated on the basis of qualified capital interests in any upper-tier partnership. ``(5) Exception for no-self-charged carry and management fee provisions.--Except as otherwise provided by the Secretary, an interest shall not fail to be treated as satisfying the requirement of paragraph (1)(A) merely because the allocations made by the partnership to such interest do not reflect the cost of services described in subsection (c)(2) which are provided (directly or indirectly) to the partnership by the holder of such interest (or a related person). ``(6) Special rule for dispositions.--In the case of any investment services partnership interest any portion of which is a qualified capital interest, subsection (b) shall not apply to so much of any gain or loss as bears the same proportion to the entire amount of such gain or loss as-- ``(A) the distributive share of gain or loss that would have been allocated to the qualified capital interest (consistent with the requirements of paragraph (1)) if the partnership had sold all of its assets at fair market value immediately before the disposition, bears to ``(B) the distributive share of gain or loss that would have been so allocated to the investment services partnership interest of which such qualified capital interest is a part. ``(7) Qualified capital interest.--For purposes of this section-- ``(A) In general.--The term `qualified capital interest' means so much of a partner's interest in the capital of the partnership as is attributable to-- ``(i) the fair market value of any money or other property contributed to the partnership in exchange for such interest (determined without regard to section 752(a)), ``(ii) any amounts which have been included in gross income under section 83 with respect to the transfer of such interest, and ``(iii) the excess (if any) of-- ``(I) any items of income and gain taken into account under section 702 with respect to such interest, over ``(II) any items of deduction and loss so taken into account. ``(B) Adjustment to qualified capital interest.-- ``(i) Distributions and losses.--The qualified capital interest shall be reduced by distributions from the partnership with respect to such interest and by the excess (if any) of the amount described in subparagraph (A)(iii)(II) over the amount described in subparagraph (A)(iii)(I). ``(ii) Special rule for contributions of property.--In the case of any contribution of property described in subparagraph (A)(i) with respect to which the fair market value of such property is not equal to the adjusted basis of such property immediately before such contribution, proper adjustments shall be made to the qualified capital interest to take into account such difference consistent with such regulations or other guidance as the Secretary may provide. ``(C) Mergers, consolidations, etc., disregarded.--No increase or decrease in the qualified capital interest of any partner shall result from a merger, consolidation, or division described in section 708, or any similar transaction. ``(8) Treatment of certain loans.-- ``(A) Proceeds of partnership loans not treated as qualified capital interest of service providing partners.-- For purposes of this subsection, an investment services partnership interest shall not be treated as a qualified capital interest to the extent that such interest is acquired in connection with the proceeds of any loan or other advance made or guaranteed, directly or indirectly, by any other partner or the partnership (or any person related to any such other partner or the partnership). The preceding sentence shall not apply to the extent the loan or other advance is repaid before the date of the enactment of this section unless such repayment is made with the proceeds of a loan or other advance described in the preceding sentence. ``(B) Reduction in allocations to qualified capital interests for loans from nonservice-providing partners to the partnership.--For purposes of this subsection, any loan or other advance to the partnership [[Page S3987]] made or guaranteed, directly or indirectly, by a partner not providing services described in subsection (c)(2) to the partnership (or any person related to such partner) shall be taken into account in determining the qualified capital interests of the partners in the partnership. ``(9) Special rule for qualified family partnerships.-- ``(A) In general.--In the case of any specified family partnership interest, paragraph (1)(A) shall be applied without regard to the phrase `and who are not related to the partner holding the qualified capital interest'. ``(B) Specified family partnership interest.--For purposes of this paragraph, the term `specified family partnership interest' means any investment services partnership interest if-- ``(i) such interest is an interest in a qualified family partnership, ``(ii) such interest is held by a natural person or by a trust with respect to which each beneficiary is a grantor or a person whose relationship to the grantor is described in section 267(b)(1), and ``(iii) all other interests in such qualified family partnership with respect to which significant allocations are made (within the meaning of paragraph (1)(B) and in comparison to the allocations made to the interest described in clause (ii)) are held by persons who-- ``(I) are related to the natural person or trust referred to in clause (ii), or ``(II) provide services described in subsection (c)(2). ``(C) Qualified family partnership.--For purposes of this paragraph, the term `qualified family partnership' means any partnership if-- ``(i) all of the capital and profits interests of such partnership are held by-- ``(I) specified family members, ``(II) any person closely related (within the meaning of subsection (c)(3)(C)(ii)) to a specified family member, or ``(III) any other person (not described in subclause (I) or (II)) if such interest is an investment services partnership interest with respect to such person, and ``(ii) such partnership does not hold itself out to the public as an investment advisor. ``(D) Specified family members.--For purposes of subparagraph (C), individuals shall be treated as specified family members if such individuals would be treated as one person under the rules of section 1361(c)(1) if the applicable date (within the meaning of subparagraph (B)(iii) thereof) were the latest of-- ``(i) the date of the establishment of the partnership, ``(ii) the earliest date that the common ancestor holds a capital or profits interest in the partnership, or ``(iii) the date of the enactment of this section. ``(e) Other Income and Gain in Connection With Investment Management Services.-- ``(1) In general.--If-- ``(A) a person performs (directly or indirectly) investment management services for any investment entity or special purpose acquisition company, ``(B) such person holds (directly or indirectly) a disqualified interest with respect to such entity or such company (as the case may be), and ``(C) the value of such interest (or payments thereunder) is substantially related to the amount of income or gain (whether or not realized) from the assets with respect to which the investment management services are performed, any income or gain with respect to such interest shall be treated as ordinary income. Rules similar to the rules of subsections (a)(5) and (d) shall apply for purposes of this subsection. ``(2) Definitions.--For purposes of this subsection-- ``(A) Disqualified interest.-- ``(i) In general.--The term `disqualified interest' means, with respect to any investment entity-- ``(I) any interest in such entity other than indebtedness, ``(II) convertible or contingent debt of such entity, ``(III) any option or other right to acquire property described in subclause (I) or (II), and ``(IV) any derivative instrument entered into (directly or indirectly) with such entity or any investor in such entity. ``(ii) Exceptions.--Such term shall not include-- ``(I) a partnership interest, ``(II) except as provided by the Secretary, any interest in a taxable corporation (other than a special purpose acquisition company), and ``(III) except as provided by the Secretary, stock in an S corporation. ``(B) Taxable corporation.--The term `taxable corporation' means-- ``(i) a domestic C corporation, or ``(ii) a foreign corporation substantially all of the income of which is-- ``(I) effectively connected with the conduct of a trade or business in the United States, or ``(II) subject to a comprehensive foreign income tax (as defined in section 457A(d)(2)). ``(C) Investment management services.--The term `investment management services' means a substantial quantity of any of the services described in subsection (c)(2). ``(D) Investment entity.--The term `investment entity' means any entity which, if it were a partnership, would be an investment partnership. ``(E) Special purpose acquisition company.--The term `special purpose acquisition company' means any corporation that-- ``(i) is formed for the purpose of acquiring a privately held company, ``(ii) is publicly traded on an established securities market or its interests are readily tradable on a secondary market (or the substantial equivalent thereof), and ``(iii) is required to report an acquisition under Item 2.01 or make a disclosure under Item 5.06 of Form 8-K (or any successor form) with the Securities and Exchange Commission. ``(f) Exception for Domestic C Corporations.--Except as otherwise provided by the Secretary, in the case of a domestic C corporation (other than a special purpose acquisition company, as defined in subsection (e)(2)(E))-- ``(1) subsections (a) and (b) shall not apply to any item allocated to such corporation with respect to any investment services partnership interest (or to any gain or loss with respect to the disposition of such an interest), and ``(2) subsection (e) shall not apply. ``(g) Regulations.--The Secretary shall prescribe such regulations or other guidance as is necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to-- ``(1) require such reporting and recordkeeping by any person in such manner and at such time as the Secretary may prescribe for purposes of enabling the partnership to meet the requirements of section 6031 with respect to any item described in section 702(a)(9), ``(2) provide modifications to the application of this section (including treating related persons as not related to one another) to the extent such modification is consistent with the purposes of this section, ``(3) prevent the avoidance of the purposes of this section (including through the use of qualified family partnerships), and ``(4) coordinate this section with the other provisions of this title. ``(h) Cross Reference.--For 40 percent penalty on certain underpayments due to the avoidance of this section, see section 6662.''. (b) Application of Section 751 to Indirect Dispositions of Investment Services Partnership Interests.-- (1) In general.--Subsection (a) of section 751 is amended by striking ``or'' at the end of paragraph (1), by inserting ``or'' at the end of paragraph (2), and by inserting after paragraph (2) the following new paragraph: ``(3) investment services partnership interests held by the partnership,''. (2) Certain distributions treated as sales or exchanges.-- Subparagraph (A) of section 751(b)(1) is amended by striking ``or'' at the end of clause (i), by inserting ``or'' at the end of clause (ii), and by inserting after clause (ii) the following new clause: ``(iii) investment services partnership interests held by the partnership,''. (3) Application of special rules in the case of tiered partnerships.--Subsection (f) of section 751 is amended-- (A) by striking ``or'' at the end of paragraph (1), by inserting ``or'' at the end of paragraph (2), and by inserting after paragraph (2) the following new paragraph: ``(3) an investment services partnership interest held by the partnership,'', and (B) by striking ``partner.'' and inserting ``partner (other than a partnership in which it holds an investment services partnership interest).''. (4) Investment services partnership interests; qualified capital interests.--Section 751 is amended by adding at the end the following new subsection: ``(g) Investment Services Partnership Interests.--For purposes of this section-- ``(1) In general.--The term `investment services partnership interest' has the meaning given such term by section 710(c). ``(2) Adjustments for qualified capital interests.--The amount to which subsection (a) applies by reason of paragraph (3) thereof shall not include so much of such amount as is attributable to any portion of the investment services partnership interest which is a qualified capital interest (determined under rules similar to the rules of section 710(d)). ``(3) Exception for publicly traded partnerships.--Except as otherwise provided by the Secretary, in the case of an exchange of an interest in a publicly traded partnership (as defined in section 7704) to which subsection (a) applies-- ``(A) this section shall be applied without regard to subsections (a)(3), (b)(1)(A)(iii), and (f)(3), and ``(B) such partnership shall be treated as owning its proportionate share of the property of any other partnership in which it is a partner. ``(4) Recognition of gains.--Any gain with respect to which subsection (a) applies by reason of paragraph (3) thereof shall be recognized notwithstanding any other provision of this title. ``(5) Coordination with inventory items.--An investment services partnership interest held by the partnership shall not be treated as an inventory item of the partnership. ``(6) Prevention of double counting.--Under regulations or other guidance prescribed by the Secretary, subsection (a)(3) shall not apply with respect to any amount to which section 710 applies. ``(7) Valuation methods.--The Secretary shall prescribe regulations or other guidance which provide the acceptable methods for valuing investment services partnership interests for purposes of this section.''. [[Page S3988]] (c) Treatment for Purposes of Section 7704.--Subsection (d) of section 7704 is amended by adding at the end the following new paragraph: ``(6) Income from certain carried interests not qualified.-- ``(A) In general.--Specified carried interest income shall not be treated as qualifying income. ``(B) Specified carried interest income.--For purposes of this paragraph-- ``(i) In general.--The term `specified carried interest income' means-- ``(I) any item of income or gain allocated to an investment services partnership interest (as defined in section 710(c)) held by the partnership, ``(II) any gain on the disposition of an investment services partnership interest (as so defined) or a partnership interest to which (in the hands of the partnership) section 751 applies, and ``(III) any income or gain taken into account by the partnership under subsection (b)(4) or (e) of section 710. ``(ii) Exception for qualified capital interests.--A rule similar to the rule of section 710(d) shall apply for purposes of clause (i). ``(C) Coordination with other provisions.--Subparagraph (A) shall not apply to any item described in paragraph (1)(E) (or so much of paragraph (1)(F) as relates to paragraph (1)(E)). ``(D) Special rules for certain partnerships.-- ``(i) Certain partnerships owned by real estate investment trusts.--Subparagraph (A) shall not apply in the case of a partnership which meets each of the following requirements: ``(I) Such partnership is treated as publicly traded under this section solely by reason of interests in such partnership being convertible into interests in a real estate investment trust which is publicly traded. ``(II) Fifty percent or more of the capital and profits interests of such partnership are owned, directly or indirectly, at all times during the taxable year by such real estate investment trust (determined with the application of section 267(c)). ``(III) Such partnership meets the requirements of paragraphs (2), (3), and (4) of section 856(c). ``(ii) Certain partnerships owning other publicly traded partnerships.--Subparagraph (A) shall not apply in the case of a partnership which meets each of the following requirements: ``(I) Substantially all of the assets of such partnership consist of interests in one or more publicly traded partnerships (determined without regard to subsection (b)(2)). ``(II) Substantially all of the income of such partnership is ordinary income or section 1231 gain (as defined in section 1231(a)(3)). ``(E) Transitional rule.--Subparagraph (A) shall not apply to any taxable year of the partnership beginning before the date which is 10 years after the date of the enactment of this paragraph.''. (d) Imposition of Penalty on Underpayments.-- (1) In general.--Subsection (b) of section 6662 is amended by inserting after paragraph (10) the following new paragraph: ``(11) The application of section 710(e) or the regulations or other guidance prescribed under section 710(g) to prevent the avoidance of the purposes of section 710.''. (2) Amount of penalty.-- (A) In general.--Section 6662, as amended by this Act, is amended by adding at the end the following new subsection: ``(n) Increase in Penalty in Case of Property Transferred for Investment Management Services.--In the case of any portion of an underpayment to which this section applies by reason of subsection (b)(11), subsection (a) shall be applied with respect to such portion by substituting `40 percent' for `20 percent'.''. (B) Conforming amendment.--Subparagraph (B) of section 6662A(e)(2) is amended by striking ``or (i)'' and inserting ``, (i), or (m)''. (3) Special rules for application of reasonable cause exception.--Subsection (c) of section 6664 is amended-- (A) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; (B) by striking ``paragraph (3)'' in paragraph (5)(A), as so redesignated, and inserting ``paragraph (4)''; and (C) by inserting after paragraph (2) the following new paragraph: ``(3) Special rule for underpayments attributable to investment management services.-- ``(A) In general.--Paragraph (1) shall not apply to any portion of an underpayment to which section 6662 applies by reason of subsection (b)(11) unless-- ``(i) the relevant facts affecting the tax treatment of the item are adequately disclosed, ``(ii) there is or was substantial authority for such treatment, and ``(iii) the taxpayer reasonably believed that such treatment was more likely than not the proper treatment. ``(B) Rules relating to reasonable belief.--Rules similar to the rules of subsection (d)(4) shall apply for purposes of subparagraph (A)(iii).''. (e) Income and Loss From Investment Services Partnership Interests Taken Into Account in Determining Net Earnings From Self-Employment.-- (1) Internal revenue code.-- (A) In general.--Section 1402(a) is amended by striking ``and'' at the end of paragraph (16), by striking the period at the end of paragraph (17) and inserting ``; and'', and by inserting after paragraph (17) the following new paragraph: ``(18) notwithstanding the preceding provisions of this subsection, in the case of any individual engaged in the trade or business of providing services described in section 710(c)(2) with respect to any entity, investment services partnership income or loss (as defined in subsection (m)) of such individual with respect to such entity shall be taken into account in determining the net earnings from self- employment of such individual.''. (B) Investment services partnership income or loss.-- Section 1402 is amended by adding at the end the following new subsection: ``(m) Investment Services Partnership Income or Loss.--For purposes of subsection (a)-- ``(1) In general.--The term `investment services partnership income or loss' means, with respect to any investment services partnership interest (as defined in section 710(c)) or disqualified interest (as defined in section 710(e)), the net of-- ``(A) the amounts treated as ordinary income or ordinary loss under subsections (b) and (e) of section 710 with respect to such interest, ``(B) all items of income, gain, loss, and deduction allocated to such interest, and ``(C) the amounts treated as realized from the sale or exchange of property other than a capital asset under section 751 with respect to such interest. ``(2) Exception for qualified capital interests.--A rule similar to the rule of section 710(d) shall apply for purposes of applying paragraph (1)(B).''. (2) Social security act.--Section 211(a) of the Social Security Act is amended by striking ``and'' at the end of paragraph (15), by striking the period at the end of paragraph (16) and inserting ``; and'', and by inserting after paragraph (16) the following new paragraph: ``(17) Notwithstanding the preceding provisions of this subsection, in the case of any individual engaged in the trade or business of providing services described in section 710(c)(2) of the Internal Revenue Code of 1986 with respect to any entity, investment services partnership income or loss (as defined in section 1402(m) of such Code) shall be taken into account in determining the net earnings from self- employment of such individual.''. (f) Separate Accounting by Partner.--Section 702(a) is amended by striking ``and'' at the end of paragraph (7), by striking the period at the end of paragraph (8) and inserting ``, and'', and by inserting after paragraph (8) the following: ``(9) any amount treated as ordinary income or loss under subsection (a), (b), or (e) of section 710.''. (g) Conforming Amendments.-- (1) Subsection (d) of section 731 is amended by inserting ``section 710(b)(4) (relating to distributions of partnership property),'' after ``to the extent otherwise provided by''. (2) Section 741 is amended by inserting ``or section 710 (relating to special rules for partners providing investment management services to partnerships)'' before the period at the end. (3) The table of sections for part I of subchapter K of chapter 1 is amended by adding at the end the following new item: ``Sec. 710. Special rules for partners providing investment management services to partnerships.''. (4)(A) Part IV of subchapter O of chapter 1 is amended by striking section 1061. (B) The table of sections for part IV of subchapter O of chapter 1 is amended by striking the item relating to section 1061. (h) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. (2) Partnership taxable years which include effective date.--In applying section 710(a) of the Internal Revenue Code of 1986 (as added by this section) in the case of any partnership taxable year which includes the date of the enactment of this Act, the amount of the net capital gain referred to in such section shall be treated as being the lesser of the net capital gain for the entire partnership taxable year or the net capital gain determined by only taking into account items attributable to the portion of the partnership taxable year which is after such date. (3) Dispositions of partnership interests.-- (A) In general.--Section 710(b) of such Code (as added by this section) shall apply to dispositions and distributions after the date of the enactment of this Act. (B) Indirect dispositions.--The amendments made by subsection (b) shall apply to transactions after the date of the enactment of this Act. (4) Other income and gain in connection with investment management services.--Section 710(e) of such Code (as added by this section) shall take effect on the date of the enactment of this Act. ______ SA 2443. Mr. KELLY (for himself, Mr. Kaine, Mr. Warner, and Mr. Peters) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) [[Page S3989]] to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 20306(a)(6)(D), of title 51, United States Code (as added by section 40005), strike the semicolon at the end and insert ``; and'' In section 20306(a)(6)(E) of title 51, United States Code (as added by section 40005), strike ``; and'' and insert a period. In section 20306(a)(6) of title 51, United States Code (as added by section 40005), strike subparagraph (F). In section 20306 of title 51, United States Code (as added by section 40005), strike subsection (b). In section 20306 of title 51, United States Code (as added by section 40005), redesignate subsection (c) as subsection (b). ______ SA 2444. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. CONDITIONAL EFFECTIVENESS. Sections 10101 through 10108, and the amendments made by such sections, shall only take effect upon the Administrator of the Food and Nutrition Service and the Administrator of the Economic Research Service of the Department of Agriculture, and all State agencies (as defined in section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012)), issuing reports evaluating and certifying that any changes made by sections 10101 through 10108, or the amendments made by such sections, to the supplemental nutrition assistance program will not result in a decrease in benefits to eligible individuals who are part of households with children under the age of 18, or a decrease in participation due to changes in eligibility impacting individuals who are part of households with children under the age of 18, in comparison to what would have occurred in the absence of sections 10101 through 10108, and the amendments made by such sections. ______ SA 2445. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 10104. ______ SA 2446. Mr. MERKLEY (for himself, Ms. Warren, and Mr. Reed) submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. PREVENTING CRYPTOCURRENCY CORRUPTION. (a) In General.-- (1) Definitions.--In this subsection-- (A) the term ``covered cryptocurrency'' means any cryptocurrency, meme coin, token, non-fungible token, payment stablecoin, or other digital asset that is sold for remuneration; (B) the term ``covered former special Government employee'' means an individual who-- (i) served as a special Government employee associated with the Executive Office of the President on or after January 1, 2024; and (ii) ceased to serve as a special Government employee associated with the Executive Office of the President during the period beginning on January 2, 2024 and ending on the day before the date of enactment of this Act; (C) the term ``covered individual'' means-- (i) the President; (ii) the Vice President; (iii) a Member of Congress; (iv) an individual appointed to a Senate-confirmed position; (v) a special Government employee associated with the Executive Office of the President; or (vi) a covered former special Government employee; (D) the term ``directly'' means by virtue of the ownership or beneficial interest of a covered individual, or the spouse or child of a covered individual, in an issuer of a covered cryptocurrency; (E) the term ``indirectly'' means by virtue of the financial interest of a covered individual, or the spouse or child of a covered individual, in a business entity, partnership interest, company, investment fund, trust, or other third party in which the covered individual, or the spouse or child of a covered individual, has an ownership or beneficial interest; (F) the term ``Member of Congress'' has the meaning given that term in section 13101 of title 5, United States Code; (G) the term ``payment stablecoin''-- (i) means a digital asset-- (I) that is, or is designed to be, used as a means of payment or settlement; and (II) the issuer of which-- (aa) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value, not including a digital asset denominated in a fixed amount of monetary value; and (bb) represents that such issuer will maintain, or create the reasonable expectation that it will maintain, a stable value relative to the value of a fixed amount of monetary value; and (ii) does not include a digital asset that-- (I) is a national currency; (II) is a deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), including a deposit recorded using distributed ledger technology; or (III) is a security, as defined in section 2 of the Securities Act of 1933 (15 U.S.C. 77b), section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c), or section 2 of the Investment Company Act of 1940 (15 U.S.C. 80a-2); (H) the term ``promote'' includes the use of the name and likeness of a covered individual in any marketing materials, including in the title of the covered cryptocurrency; and (I) the term ``special Government employee'' has the meaning given the term in section 202(a) of title 18, United States Code. (2) Prohibition.-- (A) In general.--It shall be unlawful for any covered individual described in clauses (i) through (v) of paragraph (1)(C), or any spouse or child of any such covered individual, to directly or indirectly own, control, promote in exchange for anything of value, or affiliate with any issuer of a covered cryptocurrency or any entity that provides custodial or safekeeping services for covered cryptocurrencies. (B) Covered former special government employees.--It shall be unlawful for any covered former special Government employee, or any spouse or child of a covered special Government employee, to directly or indirectly own, control, promote in exchange for anything of value, or affiliate with any issuer of a covered cryptocurrency or any entity that provides custodial or safekeeping services for covered cryptocurrencies during the 1-year period beginning on the last day of service of the covered former special Government employee as a special Government employee associated with the Executive Office of the President. (3) Transition.--Any individual in violation of subparagraph (A) or (B) of paragraph (2) on the date of enactment of this Act shall, not later than 90 days after the date of enactment of this Act, come into compliance with the prohibition under that paragraph. (4) Enforcement.-- (A) In general.--Beginning on the date that is 90 days after the date of enactment of this Act, a violation of paragraph (2) shall be punishable by not more than 5 years in prison and fines of not more than 3 times the monetary value of any earnings related to the violation. (B) Not an official act.--A violation of paragraph (2)(A) shall not be deemed an official act if committed by any covered individual described in clauses (i) through (v) of paragraph (1)(C) who is in office at the time of the violation. (C) Statute of limitations.--No person shall be prosecuted, tried, or punished for any offense under this subsection unless the indictment for such offense is found, or the information for such offense is instituted, not later than 15 years after the date on which the offense was committed. (b) Financial Disclosure Reports.--Section 13104(b) of title 5, United States Code, is amended-- (1) by redesignating paragraph (2) as paragraph (3); and (2) by inserting after paragraph (1) the following: ``(2) Disclosure relating to covered cryptocurrency involvement.-- ``(A) Definitions.--In this paragraph: ``(i) Covered cryptocurrency.--The term `covered cryptocurrency' means any cryptocurrency, meme coin, token, non-fungible token, payment stablecoin, or other digital asset that is sold for remuneration. ``(ii) Directly.--The term `directly' means by virtue of the ownership or beneficial interest of a reporting individual, or the spouse or child of a reporting individual, in a covered cryptocurrency issuer. ``(iii) Indirectly.--The term `indirectly' means by virtue of the financial interest of a reporting individual, or the spouse or child of a reporting individual, in a business entity, partnership interest, company, investment fund, trust, or other third party in which the reporting individual, or the spouse or child of a reporting individual, has an ownership or beneficial interest. ``(iv) Payment stablecoin.--The term `payment stablecoin'-- ``(I) means a digital asset-- ``(aa) that is, or is designed to be, used as a means of payment or settlement; and ``(bb) the issuer of which-- ``(AA) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value, not including a digital asset denominated in a fixed amount of monetary value; and ``(BB) represents that such issuer will maintain, or create the reasonable expectation that it will maintain, a stable value relative to the value of a fixed amount of monetary value; and ``(II) does not include a digital asset that-- ``(aa) is a national currency; [[Page S3990]] ``(bb) is a deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), including a deposit recorded using distributed ledger technology; or ``(cc) is a security, as defined in section 2 of the Securities Act of 1933 (15 U.S.C. 77b), section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c), or section 2 of the Investment Company Act of 1940 (15 U.S.C. 80a-2). ``(v) Promote.--The term `promote' includes the use of the name and likeness of a reporting individual in any marketing materials, including in the title of the covered cryptocurrency. ``(B) Requirement.--Each report filed pursuant to subsections (b) and (c) of section 13103 shall include a statement of whether the reporting individual, or the spouse or child of the reporting individual, as of the filing date, directly or indirectly owns, controls, promotes in exchange for anything of value, or affiliates with any covered cryptocurrency issuer or any entity that provides custodial or safekeeping services for covered cryptocurrencies.''. ______ SA 2447. Mr. MERKLEY submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. END JUNK FEES FOR RENTERS. (a) Definitions.--In this section: (1) Appropriate regulator.--The term ``appropriate regulator'' means-- (A) the Secretary of Housing and Urban Development, with respect to covered dwelling units described in-- (i) paragraph (2)(A); (ii) paragraph (2)(B), to the extent the Federally backed mortgage loan referred to in such paragraph is described in subparagraph (A), (B), or (C) of paragraph (3); or (iii) paragraph (2)(B), to the extent the Federally backed mortgage loan referred to in such paragraph is described in paragraph (4) and is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way under or in connection with a housing or urban development program administered by the Secretary of Housing and Urban Development; (B) the Secretary of Veterans Affairs, with respect to covered dwelling units described in paragraph (2)(B), to the extent the Federally backed mortgage loan referred to in such paragraph is described in-- (i) paragraph (3)(D); or (ii) paragraph (4) and is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by the Secretary of Veterans Affairs or under or in connection with a housing or related program administered by Secretary of Veterans Affairs; (C) the Secretary of Agriculture, with respect to covered dwelling units described in paragraph (2)(B), to the extent the Federally backed mortgage loan referred to in such paragraph is described in-- (i) subparagraph (E) or (F) of paragraph (3); or (ii) paragraph (4) and is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by the Secretary of Agriculture or under or in connection with a housing or related program administered by Secretary of Agriculture; and (D) the Director of the Federal Housing Finance Agency, with respect to covered dwelling units described in paragraph (2)(B), to the extent the Federally backed mortgage loan referred to in such paragraph is described in-- (i) paragraph (3)(G); or (ii) paragraph (4) and is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. (2) Covered dwelling unit.--The term ``covered dwelling unit'' means a dwelling unit that-- (A) is provided assistance within the jurisdiction of the Department, as defined in section 102(m) of the Department of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545(m)); or (B) is subject to, or is on or in a property that is subject to, a Federally backed single-family mortgage loan or a Federally backed multifamily mortgage loan. (3) Federally backed single-family mortgage loan.--The term ``Federally backed single-family mortgage loan'' includes any loan that is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4-families that is-- (A) insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.); (B) insured under section 255 of the National Housing Act (12 U.S.C. 1715z-20); (C) guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a, 1715z-13b); (D) guaranteed or insured by the Department of Veterans Affairs; (E) guaranteed or insured by the Department of Agriculture; (F) made by the Department of Agriculture; or (G) purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. (4) Federally backed multifamily mortgage loan.--The term ``Federally backed multifamily mortgage loan'' includes any loan (other than temporary financing such as a construction loan) that-- (A) is secured by a first or subordinate lien on residential multifamily real property designed principally for the occupancy of 5 or more families, including any such secured loan, the proceeds of which are used to prepay or pay off an existing loan secured by the same property; and (B) is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the Federal Government or under or in connection with a housing or urban development program administered by the Secretary of Housing and Urban Development or a housing or related program administered by any other such officer or agency, or is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. (5) Owner.--The term ``owner'' means, with respect to a dwelling unit, any private person or entity, including a cooperative, an agency of the Federal Government, or a public housing agency, having the legal right to lease or sublease the dwelling unit. (b) Rental Junk Fees.-- (1) Application fees.--The appropriate regulator shall prohibit the owner of a covered dwelling unit from assessing or collecting a fee or charge, from any household in connection with the submission of an application for rental of the dwelling unit. (2) Tenant screening fees.--The appropriate regulator shall prohibit the owner of a covered dwelling unit from assessing to or collecting from any household applying to rent the dwelling unit any fee or charge for costs of conducting any criminal history, tenant screening, consumer report, or other background check of the household. (3) Late fees.--The appropriate regulator shall require that owners of covered dwelling units-- (A) only impose fees or charges on tenants in connection with the late payment of rent for a covered dwelling unit if the amount of the fee or charge is less than 3 percent of the monthly rent the tenant pays for the covered dwelling unit; (B) only impose fees or charges on tenants in connection with the late payment of rent for a covered dwelling unit if 15 days have elapsed since the date on which the rent was due; and (C) disclose the requirements imposed under subparagraphs (A) and (B) in any lease entered for a covered dwelling unit on or after the date on which rules are issued under subsection (c). (4) Required disclosures.--The appropriate regulator shall require each owner of a covered dwelling unit to disclose to the tenant before a lease is signed-- (A) the total amount due each month, including any fees; (B) to the degree practicable, a summary of any past litigation between the the owner and any former or current tenants; (C) a description of any ongoing pest and maintenance issues; and (D) the amount rent increase for the property in each of the 10 previous years. (c) Rulemaking.--Not later than 180 days after the date of enactment of this Act, the Bureau of Consumer Financial Protection and the Federal Trade Commission shall issue a rule that-- (1) defines the term ``junk fee'' with respect to rental housing; and (2) finds the furnishing of any information about a unpaid junk fee (as such term is defined pursuant to paragraph (1)) to a consumer reporting agency to be a unfair or unconscionable means to collect or attempt to collect debt in violation of section 808 of the Fair Debt Collection Practices Act (15 U.S.C. 1692f). ______ SA 2448. Mr. MERKLEY submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. HOMEOWNERSHIP PROVISIONS. (a) Excise Tax on Acquisition of Single-family Residences by Hedge Fund Taxpayers.-- (1) In general.--Subtitle D is amended by adding at the end the following new chapter: ``CHAPTER 50B--SINGLE-FAMILY RESIDENCES ``Sec. 5000E. Newly acquired single-family residences. ``SEC. 5000E. NEWLY ACQUIRED SINGLE-FAMILY RESIDENCES. ``(a) In General.--There is hereby imposed the acquisition of any newly acquired single-family residence by a hedge fund taxpayer an amount equal to 15 percent of the purchase price thereof. ``(b) Newly Acquired Single-family Residence.--For purposes of this section-- ``(1) In general.--The term `newly acquired single-family residence' means any residential property which-- ``(A) consists of 1-to-4 dwelling units, and ``(B) was acquired by the taxpayer in any taxable year which begins after the date of the enactment of this chapter. ``(2) Exception.--A residential property shall not be treated as a newly acquired single-family residence if, immediately after acquisition and at all times thereafter, such property is-- [[Page S3991]] ``(A) not rented or leased, and ``(B) used as the principal residence (within the meaning of section 121) of any person who has an ownership interest in the hedge fund taxpayer acquiring such taxpayer. ``(c) Hedge Fund Taxpayer.--For purposes of this chapter-- ``(1) In general.--The term `hedge fund taxpayer' means, with respect to any taxable year, any applicable entity which-- ``(A) manages funds pooled from investors, ``(B) has $50,000,000 or more in net value or assets under management on any day during the taxable year, and ``(C) is a fiduciary with respect to such investors. ``(2) Applicable entity.-- ``(A) In general.--The term `applicable entity' means-- ``(i) any partnership, ``(ii) any corporation, or ``(iii) any real estate investment trust. ``(B) Exceptions.--The term `applicable entity' shall not include-- ``(i) an organization which is described in section 501(c)(3) and exempt from tax under section 501(a), or ``(ii) an organization which is primarily engaged in the construction or rehabilitation of single-family residences and which offers such residences for sale in the ordinary course of business. ``(3) Aggregation rules.-- ``(A) In general.--All persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single person. ``(B) Modifications.--For purposes of this subsection-- ``(i) section 52(a) shall be applied by substituting `component members' for `members', and ``(ii) for purposes of applying section 52(b), the term `trade or business' shall include any activity treated as a trade or business under paragraph (5) or (6) of section 469(c) (determined without regard to the phrase `To the extent provided in regulations' in such paragraph (6)). ``(C) Component member.--For purposes of this paragraph, the term `component member' has the meaning given such term by section 1563(b), except that the determination shall be made without regard to section 1563(b)(2). ``(d) Other Definitions and Rules.--For purposes of this section-- ``(1) Purchase price.--The term `purchase price' means the adjusted basis of the newly acquired single-family residence on the date such residence is purchased. ``(2) Acquisition.--A hedge fund taxpayer shall be treated as acquiring a single-family residence if the taxpayer acquires a majority ownership interest in the single-family residence, regardless of the percentage of that ownership interest.''. (2) Clerical amendment.--The table of chapters for subtitle D is amended by adding at the end the following new item: ``Chapter 50B--Excess Single-family Residences''. (3) Effective date.--The amendments made by this subsection shall apply to taxable years beginning after the date of enactment of this Act. (b) Corporate Surtax on Hedge Fund Taxpayers.-- (1) In general.--Section 11 is amended by adding at the end the following new subsection: ``(e) Hedge Fund Taxpayers.--In the case of a corporation which is described in section 5000E(c), the percentage under subsection (b) shall be increased by 5 percentage points.''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2035. (c) Disallowance of Certain Deductions Taken in Connection With Single-family Residences of Hedge Fund Taxpayers.-- (1) Mortgage interest.-- (A) In general.--Section 163 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection: ``(n) No Deduction for Interest on Acquisition Indebtedness of Single-family Residences of Certain Taxpayers.-- ``(1) In general.--In the case of a hedge fund taxpayer, no deduction shall be allowed under this chapter with respect to interest paid or accrued on acquisition indebtedness with respect to any single family residence. ``(2) Definitions.--For purposes of this subsection-- ``(A) Hedge fund taxpayer.--The term `hedge fund taxpayer' means, for any taxable year, any taxpayer-- ``(i) who is described in section 5000E(c), and ``(ii) who is in the trade or business of renting or leasing single-family residences. ``(B) Acquisition indebtedness.--The term `acquisition indebtedness' has the meaning given such term under subsection (h)(3)(B), determined-- ``(i) by substituting `single-family residence (as defined in subsection (n))' for `qualified residence', and ``(ii) without regard to clause (ii) thereof. ``(C) Single-family residence.--The term `single-family residence' means any residential property which consists of 1-to-4 dwelling units''. (B) Effective date.--The amendments made by this paragraph shall apply to taxable years beginning after December 31, 2030. (2) Depreciation.-- (A) In general.--Section 167 is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: ``(i) Deduction Disallowed for Single-family Residences of Certain Taxpayers.-- ``(1) In general.--In the case of a hedge fund taxpayer, no deduction shall be allowed under this section for any single family residence. ``(2) Definitions.--For purposes of this subsection-- ``(A) Hedge fund taxpayer.--The term `hedge fund taxpayer' means, for any taxable year, any taxpayer-- ``(i) who is described in section 5000E(c), and ``(ii) who is in the trade or business of renting or leasing single-family residences. ``(B) Single-family residence.--The term `single-family residence' means any residential property which consists of 1-to-4 dwelling units.''. (B) Effective date.--The amendments made by this paragraph shall apply to taxable years beginning after December 31, 2030. (3) Qualified business income.-- (A) In general.--Section 199A(d) is amended by striking ``or'' at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ``, or'', and by adding at the end the following new subparagraph: ``(C) any trade or business of hedge fund taxpayer (as defined in section 163(n)(2)(A)).''. (B) Effective date.--The amendments made by this paragraph shall apply to taxable years beginning after December 31, 2035. ______ SA 2449. Mr. MERKLEY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 50302(a)(3), strike subparagraph (C) and insert the following: (C) Receipts.--Of the monies derived from a timber sale contract entered into to meet the requirements under subparagraphs (A) and (B)-- (i) 50 percent shall be deposited in the general fund of the Treasury; and (ii) 50 percent shall be distributed to the county within the boundaries of which the applicable National Forest System land is located. In section 50302(b)(3), strike subparagraph (C) and insert the following: (C) Receipts.--Of the monies derived from a contract entered into to meet the requirements under subparagraphs (A) and (B)-- (i) 50 percent shall be deposited in the general fund of the Treasury; and (ii) 50 percent shall be distributed to the county within the boundaries of which the applicable public lands are located. In section 1706(f)(1) of the Energy Policy Act of 2005 (as added by section 50403(a)(6)), strike ``$1,000,000,000'' and insert ``$819,000,000''. ______ SA 2450. Mr. MERKLEY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 50302(a)(3), strike subparagraph (C) and insert the following: (C) Receipts.--Of the monies derived from a timber sale contract entered into to meet the requirements under subparagraphs (A) and (B)-- (i) 50 percent shall be deposited in the general fund of the Treasury; and (ii) 50 percent shall be distributed to the county within the boundaries of which the applicable National Forest System land is located. In section 50302(b)(3), strike subparagraph (C) and insert the following: (C) Receipts.--Of the monies derived from a contract entered into to meet the requirements under subparagraphs (A) and (B)-- (i) 50 percent shall be deposited in the general fund of the Treasury; and (ii) 50 percent shall be distributed to the county within the boundaries of which the applicable public lands are located. In section 50401(b), in the matter preceding paragraph (1), strike ``September 30, 2029--'' and all that follows through the period in paragraph (2) and insert ``September 30, 2029, $217,000,000 for maintenance of, including repairs to, storage facilities and related facilities of the Strategic Petroleum Reserve.'' ______ SA 2451. Mr. MERKLEY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 100052, strike paragraph (8). ______ SA 2452. Mr. MERKLEY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; [[Page S3992]] which was ordered to lie on the table; as follows: In section 90003(a), strike ``and family residential center capacity''. In section 90003(b), strike the first sentence. In section 90003, strike subsection (c). ______ SA 2453. Mr. SCHIFF (for himself and Mr. Bennet) submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. PROHIBITION ON USE OF FUNDS UNTIL REHIRING OF FOREST SERVICE PERSONNEL. (a) Definitions.--In this section: (1) Covered individual.--The term ``covered individual'' means an individual who-- (A) was separated from Federal service during the period beginning on January 20, 2025, and ending on the date of enactment of this Act as part of a mass removal of Federal employees; and (B) as of the date of separation described in subparagraph (A) was employed with the Forest Service. (2) Secretary.--The term ``Secretary'' means the Secretary of Agriculture. (b) Prohibition.--None of the funds made available by this Act or any amendment made by this Act shall be used until the date on which the Secretary certifies that-- (1) each covered individual is employed with the Forest Service; or (2) with respect to each covered individual who declines employment with the Forest Service or is otherwise unavailable for such employment, another qualified individual who is not a covered individual is employed with the Forest Service. (c) Direct Hiring Authority.--For purposes of carrying out this section, the Secretary may noncompetitively appoint qualified individuals to positions in the Forest Service. ______ SA 2454. Mr. SCHIFF (for himself and Mr. Booker) submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. PROHIBITION ON USE OF FUNDS UNTIL RESUMPTION OF PAYMENTS UNDER CONTRACTS. None of the funds made available by this Act or any amendment made by this Act shall be used until the date on which the Secretary of Agriculture certifies that payments under all contracts entered into by the Department of Agriculture during the period beginning on October 1, 2020, and ending on the date of enactment of this Act are being made in accordance with the terms of the contracts. ______ SA 2455. Mr. SCHIFF submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title IX, insert the following: SEC. ____. RESTRICTION ON IMMIGRATION ENFORCEMENT AT FARMS. None of the funds made available under this Act may be used by the Department of Homeland Security to carry out immigration enforcement operations at a farm. ______ SA 2456. Mr. SCHIFF (for himself and Mr. Kelly) submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. TAX ON DIGITAL ASSETS ISSUED BY PUBLIC OFFICIALS. (a) In General.--Subchapter A of chapter 1 is amended by adding at the end the following new part: ``PART VIII--CERTAIN INCOME FROM DIGITAL ASSETS ``Sec. 59B. Income from the issuance of digital assets by public officials. ``SEC. 59B. INCOME FROM THE ISSUANCE OF DIGITAL ASSETS BY PUBLIC OFFICIALS. ``(a) In General.--In the case of an individual, if such individual has applicable digital asset income for the taxable year-- ``(1) gross income shall be reduced by the amount of such applicable digital asset income, and ``(2) the tax imposed by section 1 for the taxable year shall be increased by an amount equal to 100 percent of such applicable digital asset income (determined by reducing the amount of such income by any deductions properly allocable to such income). ``(b) Applicable Digital Asset Income.--For purposes of this section-- ``(1) In general.--The term `applicable digital asset income' means, with respect to any individual, any income derived in connection with the issuance of a digital asset by such individual or any person related to such individual if, at the time such digital asset is issued, the individual is a person who is such is described in section 13101(f) of title 5, United States Code. ``(2) Digital asset.--The term `digital asset' has the meaning given such term under section 6045(g)(3)(D). ``(3) Related person.--For purposes of paragraph (1), a person is related to another person if the relationship between such persons would result in a disallowance of losses under section 267 or 707(b). ``(c) Regulations.--The Secretary shall prescribe such regulations or other guidance as is necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to the determination of items of income which are derived in connection with the issuance of digital assets.''. (b) Clerical Amendment.--The table of parts for subchapter A of chapter 1 is amended by adding at the end the following new item: ``PART VIII--Certain Income From Digital Assets''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. ______ SA 2457. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 90003(a), strike ``$45,000,000,000'' and insert ``$42,774,500,000''. At the end of subtitle B of title IX, add the following: SEC. 901___. NONPROFIT SECURITY GRANT PROGRAM. In addition to amounts otherwise available, there is appropriated for fiscal year 2025 $2,225,500,000, to remain available until September 30, 2029, for the Nonprofit Security Grant Program established under section 2009 of the Homeland Security Act of 2002 (6 U.S.C. 609a). ______ SA 2458. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 50305, strike paragraph (3). ______ SA 2459. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 50402(b)(2), strike subparagraph (D). In section 50402(b)(2), redesignate subparagraphs (E) through (H) as subparagraphs (D) through (G), respectively. ______ SA 2460. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 50303. ______ SA 2461. Mr. SCHIFF (for himself and Mr. Booker) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 6(o)(3) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)(3)) (as amended by section 10102(a)), redesignate subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively. In section 6(o)(3) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)(3)) (as amended by section 10102(a)), insert after subparagraph (E) the following: ``(F) a veteran; ______ SA 2462. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 71116. ______ SA 2463. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike chapter 1 of subtitle B of title VII and insert the following: [[Page S3993]] SEC. 71101. CORPORATE INCOME TAX RATE. (a) In General.--Section 11(b) is amended by striking ``21 percent'' and inserting ``25 percent''. (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2464. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 71118. ______ SA 2465. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 50301(f), add at the end the following: (5) Prohibition.--The Secretary may not dispose of any tract of covered Federal land for which the Secretary has received-- (A) from the Governor of the State in which the tract of covered Federal land is located notice that the Governor disapproves of the proposed disposal; or (B) from an Indian Tribe notice indicating that the Indian Tribe-- (i) has a connection to the applicable tract of covered Federal land under the Archaeological Resources Protection Act of 1979 (16 U.S.C. 470aa et seq.) or the Native American Graves Protection and Repatriation Act (25 U.S.C. 3001 et seq.) or a historic property (as defined in section 300308 of title 54, United States Code) located on the applicable tract of covered Federal land that is confirmed by the Secretary; and (ii) objects to the proposed disposal of the applicable tract of covered Federal land. ______ SA 2466. Mr. SCHIFF (for himself, Mr. Hickenlooper, Mr. Bennet, and Mr. Welch) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 557, strike line 21 and all that follows through page 561, line 2, and insert the following: (l) Establishment of 39.6 Percent Individual Income Tax Rate Bracket.-- (1) In general.--Section 1(j)(2) is amended by redesignating subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E) the following new subparagraph: ``(F) 39.6 percent rate bracket.--Notwithstanding subparagraphs (A) through (E), in prescribing the tables under this subsection for purposes of paragraph (3)(B)-- ``(i) the excess of taxable income over $10,000,000, if any, shall be taxed at a rate of 39.6 percent, and ``(ii) paragraph (3)(B)(i) shall be applied with respect to such $10,000,000 amount by substituting `2024' for `2017'.''. (2) Effective date.--The amendments made by this subsection shall apply to taxable years beginning after December 31, 2025. ______ SA 2467. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in chapter 5 of subtitle A of title VII, insert the following: SEC. 705___. ELIMINATING RESTRICTIONS RELATING TO WIND AND SOLAR FACILITIES. (a) Clean Electricity Production Credit.--Section 45Y, as amended by subsections (a) and (d) of section 70512 of this Act, is amended-- (1) in subsection (d), by striking paragraph (4), and (2) by striking subsection (h). (b) Clean Electricity Investment Credit.--Section 48E(e), as amended by subsections (a) and (c)(1) of section 70513 of this Act, is amended-- (1) in subsection (e), by striking paragraph (4), and (2) by striking subsection (i). (c) Geothermal Heat Pumps.--Section 50, as amended by section 70513(c)(2) of this Act, is amended by striking subsection (e). (d) Advanced Manufacturing Production Credit.--Section 45X(b)(3), as amended by section 70514(b) of this Act, is amended by striking subparagraph (D). (e) Excise Tax on Certain Facilities.--Subtitle D, as amended by section 70512(l) of this Act, is amended by striking section 5000E-1. (f) Establishment of 39.6 Percent Individual Income Tax Rate Bracket.-- (1) In general.--Section 1(j)(2) is amended by redesignating subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E) the following new subparagraph: ``(F) 39.6 percent rate bracket.--Notwithstanding subparagraphs (A) through (E), in prescribing the tables under this subsection for purposes of paragraph (3)(B)-- ``(i) the excess of taxable income over $10,000,000, if any, shall be taxed at a rate of 39.6 percent, and ``(ii) paragraph (3)(B)(i) shall be applied with respect to such $10,000,000 amount by substituting `2024' for `2017'.''. (2) Effective date.--The amendments made by this subsection shall apply to taxable years beginning after December 31, 2025. ______ SA 2468. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of chapter 5 of subtitle A of title VII, insert the following: SEC. 705___. SUNSET PROVISION. If the Energy Information Administration determines that the amendments enacted under this chapter have resulted in the average price of electricity to ultimate customers in the residential category having increased for 3 consecutive months, the amendments made by this chapter shall be repealed, and the Internal Revenue Code of 1986 shall be applied as if such amendments had not been enacted. ______ SA 2469. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 50301(f), add at the end the following: (5) Prohibition.--The Secretary may not dispose of any tract of covered Federal land for which the Secretary has received from the Governor of the State in which the tract of covered Federal land is located notice that the Governor disapproves of the proposed disposal. ______ SA 2470. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 50301(a), strike paragraph (4) and insert the following: (4) Federally protected land.--The term ``federally protected land'' means-- (A) a National Monument; (B) a National Recreation Area; (C) a component of the National Wilderness Preservation System; (D) a component of the National Wild and Scenic Rivers System; (E) a component of the National Trails System; (F) a National Conservation Area; (G) a unit of the National Wildlife Refuge System; (H) a unit of the National Fish Hatchery System; (I) a unit of the National Park System; (J) a National Preserve; (K) a National Seashore or National Lakeshore; (L) a National Historic Site; (M) a National Memorial; (N) a National Battlefield, National Battlefield Park, National Battlefield Site, or National Military Park; (O) a National Historical Park; (P) a designated wilderness study area; (Q) an inventoried roadless area within the National Forest System; (R) an area of critical environmental concern; (S) Federal land that has been withdrawn; or (T) Federal land that holds natural resource value, as determined by the Secretary concerned. ______ SA 2471. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 50301(f), add at the end the following: (5) Reversionary interest.--If the Secretary determines that housing has not been constructed on a tract of covered Federal land conveyed under this section by the date that is 5 years after the date of the conveyance of the tract of covered Federal land, the tract of covered Federal land shall revert to the United States. ______ SA 2472. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: [[Page S3994]] In section 50301(f), add at the end the following: (5) Prohibition.--The Secretary may not dispose of any tract of covered Federal land for which the Secretary has received from an Indian Tribe notice indicating that the Indian Tribe-- (A) has a connection to the applicable tract of covered Federal land under the Archaeological Resources Protection Act of 1979 (16 U.S.C. 470aa et seq.) or the Native American Graves Protection and Repatriation Act (25 U.S.C. 3001 et seq.) or a historic property (as defined in section 300308 of title 54, United States Code) located on the applicable tract of covered Federal land that is confirmed by the Secretary; and (B) objects to the proposed disposal of the applicable tract of covered Federal land. ______ SA 2473. Mr. SCHIFF submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. PROHIBITION ON GRANT CANCELLATION. The Administrator of the Federal Emergency Management Agency shall be prohibited from canceling any grant after the date that such grant is awarded. ______ SA 2474. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section 70104, insert the following: (g) Increase Tied to Average Wage.--Section 24(h) is amended by adding at the end the following new paragraph: ``(8) Increase tied to average wage.--If the average wages and salaries for the first 12-month period ending after the date of the enactment of this Act, as determined according to the Employment Cost Index for total compensation for civilian workers, are not at least 3.5 percent higher than such average wages and salaries, as so determined, for calendar year 2024-- ``(A) paragraph (2) shall be applied by substituting `$3,600 ($6,360 in the case of a child who has not attained age 1 as of the last day of the taxable year, and $4,320 in the case of a child who has attained age 1 but has not attained age 7 as of the last day of the taxable year)' for `$2,200', and ``(B) subsection (i)(2) shall be applied by substituting `$3,600, $6,360, and $4,320 amounts' for `$2,200 amount'.''. ______ SA 2475. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. EFFECTIVE DATE. Title 1 and the amendments made by title I shall not take effect until the date on which the Administrator of the Food and Nutrition Service certifies that those provisions and amendments shall not result in a reduction in nutrition benefits for children, seniors, or veterans. ______ SA 2476. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. INEFFECTIVENESS ON CBO DETERMINATION. If the Congressional Budget Office determines that the provisions of, or the amendments made by, this Act would increase the number of children without nutrition assistance, such provisions or amendments shall be null and void and this Act shall be applied and administered as if such provisions and amendments had not been enacted. ______ SA 2477. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. EFFECTIVE DATE. Title 1 and the amendments made by title I shall not take effect until the date on which the Administrator of the Food and Nutrition Service certifies that those provisions and amendments shall not result in an increase in the number of children who are obese or living with a diet-related disease as compared to such number if such provisions and amendments were not enacted. ______ SA 2478. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. SPECIAL APPROPRIATIONS FOR THE NATIONAL SCIENCE FOUNDATION. (a) In General.--In addition to amounts otherwise available, there is appropriated for fiscal year 2026, out of any money in the Treasury not otherwise appropriated, $10,490,200,000, to remain available until September 30, 2029, to be used for the National Science Foundation and the Arctic Research Commission as follows: (1) $1,130,000,000 for the Directorate for Biological Sciences, of which not less than $282,500,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (2) $1,286,000,000 for the Directorate for Computer and Information Science and Engineering, of which not less than $321,500,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (3) $1,732,000,000 for the Directorate for STEM Education, of which not less than $433,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (4) $1,112,000,000 for the Directorate for Engineering, of which not less than $278,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (5) $1,408,000,000 for the Directorate for Geosciences, of which not less than $352,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (6) $2,078,000,000 for the Directorate for Mathematical and Physical Sciences, of which not less than $519,500,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (7) $392,000,000 for the Directorate for Social, Behavioral and Economic Sciences, of which not less than $98,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (8) $536,000,000 for the Directorate for Technology, Innovation and Partnerships, of which not less than $134,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (9) $7,000,000 for the Office of the Chief of Research Security Strategy and Policy, of which not less than $1,750,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (10) $102,000,000 for the Office of International Science and Engineering, of which not less than $25,500,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (11) $504,000,000 for the Office of Integrative Activities, of which not less than $126,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (12) $1,200,000 for the Arctic Research Commission, of which not less than $300,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (13) $186,000,000 for National Science Foundation operations and award management, of which not less than $46,500,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (14) $13,000,000 for the Office of the Inspector General, of which not less than $3,250,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (15) $4,000,000 for the National Science Board, of which not less than $1,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. (b) Obligation and Outlays of Funds.--Funds appropriated under subsection (a) shall be obligated and outlaid as follows: (1) Not less than 50 percent of those funds shall be obligated not later than September 30, 2028. (2) 100 percent of those funds shall be obligated not later than September 30, 2029. (3) All associated outlays shall occur not later than September 30, 2034. ______ SA 2479. Mr. BLUMENTHAL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 20003(a)(9), strike ``$7,200,000,000'' and insert ``$4,200,000,000''. At the end of title II, add the following: SEC. 20016. UKRAINE SECURITY ASSISTANCE INITIATIVE. In addition to amounts otherwise available, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029, $3,000,000,000, for the Ukraine Security Assistance Initiative. ______ SA 2480. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: [[Page S3995]] At the end of section 40002(c)(3), add the following: (C) Certification.--In conducting the analysis under subparagraph (A), the Assistant Secretary shall certify that reallocation of any specific frequencies identified for commercial use would not negatively impact the primary mission of the Federal Aviation Administration. ______ SA 2481. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by section 40002(b)(1), strike subparagraphs (A) and (B) and insert the following: ``(A) between the frequencies of 3.1 gigahertz and 3.45 gigahertz, such authority shall not apply; ``(B) between the frequencies of 7.4 gigahertz and 8.4 gigahertz, such authority shall not apply; and ``(C) in any band of frequencies of which the Federal Aviation Administration is the primary user, such authority shall not apply.''. ______ SA 2482. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 809, strike lines 19 through 21 and insert the following: ``(i) The term `eligible institution' means an eligible institution for purposes of section 401, but does not include a proprietary institution, as defined in section 102(b). ______ SA 2483. Mr. KIM submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title II, insert the following: SEC. ___. PROHIBITION ON FUNDING FOR PROCUREMENT OR MODIFICATION OF FOREIGN PLANES FOR USE AS EXECUTIVE AIRLIFT AIRCRAFT. (a) Definitions.--In this section: (1) Executive airlift aircraft.--The term ``executive airlift aircraft'' means an aircraft used or intended for the transport of the President, Vice President, or individual serving in a cabinet-level position, as designated by the President. (2) Foreign source.--The term ``foreign source'' means an entity that is not incorporated or headquartered in the United States. (b) Limitation.--None of the funds made available under this title may be used-- (1) to procure, upgrade, retrofit, or modify an aircraft acquired from a foreign source for use as an executive airlift aircraft, including any aircraft designated or intended for use as Air Force One; or (2) to transfer such an aircraft to a nongovernmental entity. ______ SA 2484. Mr. KIM submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of part I of subtitle A of title X, add the following: SEC. 100019. INCOME-BASED FULL AND PARTIAL INCOME-BASED IMMIGRATION FEE WAIVERS. (a) New Fees Imposed Under This Part.--Notwithstanding any other provision under this part-- (1) if an alien's monthly income is less than 150 percent of the Federal poverty level, no fee may be charged or collected from the alien under this part; and (2) if an alien's monthly income is less than 250 percent of the Federal poverty line, each of the applicable fees under this part shall be reduced for such alien by not less than 50 percent. (b) Form I-94 Applications.--Notwithstanding any other provision of law-- (1) if an alien's monthly income is less than 150 percent of the Federal poverty level, no fee may be charged or collected from the alien in connection with an application for a Form I-94 Arrival/Departure Record; and (2) if an alien's monthly income is less than 250 percent of the Federal poverty line, the fee imposed on such alien in connection with an application described in paragraph (1) shall be reduced by not less than 50 percent. (c) Defined Term.--Section 101(a) of the Immigration and Nationality Act (8 U.S.C. 1101(a)) is amended by adding at the end the following: ``(53) The term `Federal poverty line' has the meaning given such term by the Director of the Office of Management and Budget, as revised annually by the Secretary of Health and Human Services, in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)).''. (d) Diversity Immigrant Visa Applications.--Section 204(a)(1)(I)(iv) of the Immigration and Nationality Act (8 U.S.C. 1154(a)(1)(I)(iv)) is amended-- (1) by moving the margin 4 ems to the left; and (2) by inserting ``(I)'' before ``Each petition''; and (3) by striking ``All amounts'' and inserting the following: ``(II) Notwithstanding any other provision of law-- ``(aa) if an alien's monthly income is less than 150 percent of the Federal poverty level, the fee required under subclause (I) shall be waived; and ``(bb) if an alien's monthly income is less than 250 percent of the Federal poverty line, the fee required under subclause (I) shall be reduced by not less than 50 percent. ``(III) All amounts''. (e) Asylum Applications.--Section 208(d)(3) of the Immigration and Nationality Act (8 U.S.C. 1158(d)(3)) is amended-- (1) by striking ``The Attorney General may impose'' and inserting the following: ``(A) In general.--The Attorney General may impose''. (2) by striking ``Nothing'' and inserting the following: ``(B) Income-based fee waiver or reduction.-- Notwithstanding any other provision of law-- ``(i) if an alien's monthly income is less than 150 percent of the Federal poverty level, no fee may be collected from the alien under this paragraph; and ``(ii) if an alien's monthly income is less than 250 percent of the Federal poverty line, the fee imposed under subparagraph (A) shall be reduced for such alien by not less than 50 percent. ``(C) Rule of construction.--Nothing''. (f) ESTA Fees.--Section 217(h)(3)(B) of the Immigration and Nationality Act (8 U.S.C. 1187(h)(3)(B)) is amended-- (1) by redesignating clause (iii) as clause (iv); and (2) by inserting after clause (ii) the following: ``(iii) Income-based fee waiver or reduction.-- Notwithstanding any other provision of law-- ``(I) if an alien's monthly income is less than 150 percent of the Federal poverty level, no fee may be collected from the alien under this subparagraph; and ``(II) if an alien's monthly income is less than 250 percent of the Federal poverty line, the fees imposed under clause (i) shall be reduced for such alien by not less than 50 percent.''. (g) Temporary Protected Status Applications.--Section 244(c)(1)(B) of the Immigration and Nationality Act (8 U.S.C. 1254a(c)(1)(B)) is amended-- (1) by striking ``The Attorney General may require'' and inserting the following: ``(i) In general.--The Secretary of Homeland Security may require''; (2) by striking ``Attorney General'' and inserting ``Secretary''; and (3) by striking ``Notwithstanding'' and inserting the following: ``(ii) Income-based fee waiver or reduction.-- Notwithstanding any other provision of law-- ``(I) if an alien's monthly income is less than 150 percent of the Federal poverty level, no fee may be collected from the alien under this subparagraph; and ``(II) if an alien's monthly income is less than 250 percent of the Federal poverty line, the fees imposed under clause (i) shall be reduced for such alien by not less than 50 percent. ``(iii) Disposition of fees.--Notwithstanding''. (h) Employment Authorization Applications.--Section 286(u)(3) of the Immigration and Nationality Act (8 U.S.C. 1356(u)(3)) is amended by adding at the end the following: ``(D) Income-based fee waiver or reduction.-- Notwithstanding subparagraph (A)-- ``(i) if an alien's monthly income is less than 150 percent of the Federal poverty level, no fee may be collected from the alien under subparagraph (A) in connection with an application for employment authorization; and ``(ii) if an alien's monthly income is less than 250 percent of the Federal poverty line, the premium fee imposed under subparagraph (A) in connection with an application for employment authorization shall be reduced for such alien by not less than 50 percent.''. (i) Naturalization Applications.--Section 344(b) of the Immigration and Nationality Act (8 U.S.C. 1455(b)) is amended-- (1) in the subsection enumerator, by striking ``(b)'' and inserting ``(b)(1)''; and (2) by adding at the end the following: ``(2) Notwithstanding any provision of this Act or of any other law, the following fee waivers shall apply: ``(A) If an alien's monthly income is less than 150 percent of the Federal poverty line, no fee shall be charged or collected from the alien for-- ``(i) the filing of an application for naturalization or the issuance of a certificate of naturalization upon admission to citizenship; ``(ii) the filing of an application to preserve residence for naturalization purposes; ``(iii) the filing of an application for a replacement naturalization or citizenship document; ``(iv) the filing of an application for citizenship and issuance of certificate of citizenship (Form N-600K) under section 322; [[Page S3996]] ``(v) the filing of an application for certificate of citizenship (Form N-600); or ``(vi) a biometrics capture or background check associated with any application described in any of clauses (i) through (iv). ``(B) If an alien's monthly income is less than 250 percent of the Federal poverty line, not more than 50 percent of the applicable fee shall be charged or collected for each of the applications and checks described in clauses (i) through (vi) of subparagraph (A). ``(3) Notwithstanding any other provision of law, the Secretary of Homeland Security shall consider the receipt of means-tested benefits as a criterion for the purpose of demonstrating eligibility for a fee waiver under paragraph (2).''. ______ SA 2485. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 1181(1) of title 14, United States Code (as added by section 40001), strike ``$1,142,500,000'' and insert ``$802,500,000''. In section 1181 of title 14, United States Code (as added by section 40001), insert after paragraph (1) the following: ``(2) $340,000,000 is provided for procurement and acquisition of a hurricane hunter aircraft and for equipment for such aircraft for the National Oceanic and Atmospheric Administration to address critical operational gaps in hurricane weather forecasting.''. ______ SA 2486. Mr. KIM submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Beginning on page 912, strike line 9 and all that follows through page 913, line 9. On page 913, strike ``(6)'' and insert ``(5)''. On page 913, strike ``(7)'' and insert ``(6)''. ______ SA 2487. Mr. KIM submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 100052, strike paragraph (9). ______ SA 2488. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: After section 40001, insert the following: SEC. 40001A. MODIFICATION TO SPECIAL APPROPRIATIONS FOR COAST GUARD MISSION READINESS. Section 1181(a)(10) of title 14, United States Code (as added by section 40001), is amended-- (1) in subparagraph (C)-- (A) by striking ``$2,729,500,000'' and inserting ``$1,429,000,000''; and (B) by striking ``; and'' and inserting a semicolon; (2) in subparagraph (D), by striking the semicolon and inserting ``; and''; and (3) by adding at the end the following: ``(E) $100,000,000 is provided for tuition assistance for members of the Coast Guard.''. ______ SA 2489. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: After section 40001, insert the following: SEC. 40001A. MODIFICATION TO SPECIAL APPROPRIATIONS FOR COAST GUARD MISSION READINESS. Section 1181(a)(10) of title 14, United States Code (as added by section 40001), is amended-- (1) in subparagraph (C)-- (A) by striking ``$2,729,500,000'' and inserting ``$1,429,000,000''; and (B) by striking ``; and'' and inserting a semicolon; and (2) by adding at the end the following: ``(E) $1,000,000,000 is provided for Coast Guard Small Boat Stations conducting search and rescue and other Coast Guard missions; ``(F) $200,000,000 is provided for Coast Guard medical clinics and infrastructure improvements associated with such clinics; ``(G) $1,000,000,000 is provided for childcare services for members of the Coast Guard and design, planning, engineering, and construction of Coast Guard child development centers; and ``(H) $100,000,000 is provided for the design, planning, engineering, construction, and improvement of housing for members of the Coast Guard;''. ______ SA 2490. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 30001. ______ SA 2491. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. TRUST FUND TO COMPENSATE UNITED STATES MANUFACTURERS FOR COST INCREASES ATTRIBUTABLE TO TARIFFS. (a) Establishment of Trust Fund.--There is established in the Treasury of the United States a trust fund, consisting of-- (1) amounts transferred to the trust fund under subsection (b); and (2) any amounts that may be credited to the trust fund under subsection (c). (b) Transfer of Amounts.-- (1) In general.--For fiscal year 2026 and each fiscal year thereafter, the Secretary of the Treasury shall transfer to the trust fund established under subsection (a), from the general fund of the Treasury, an amount (subject to paragraph (2)) equivalent to the amount received into the general fund during that fiscal year and attributable to duties imposed on or after January 20, 2025. (2) Limitation.--The Secretary may transfer not more than $1,000,000,000 to the trust fund established under subsection (a) in a fiscal year. (3) Frequency of transfers.--The Secretary shall transfer amounts required by this subsection to the trust fund established under subsection (a) not less frequently than quarterly. (c) Investment of Amounts.-- (1) Investment of amounts.--The Secretary shall invest such portion of the trust fund established under subsection (a) as is not required to meet current withdrawals in interest- bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. (2) Interest and proceeds.--The interest on, and the proceeds from the sale or redemption of, any obligations held in the trust fund established under subsection (a) shall be credited to and form a part of the trust fund. (d) Availability of Amounts in Trust Fund.--Amounts in the trust fund established under subsection (a) shall be available, without further appropriation, to the Secretary to provide payments to manufacturers in the United States to compensate such manufacturers for increases in the cost of manufacturing inputs attributable to duties imposed on or after January 20, 2025. ______ SA 2492. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. TRUST FUND FOR PAYMENTS TO LOW- AND MIDDLE-INCOME HOUSEHOLDS FROM TARIFF REVENUE. (a) Establishment of Trust Fund.--There is established in the Treasury of the United States a trust fund, consisting of-- (1) amounts transferred to the trust fund under subsection (b); and (2) any amounts that may be credited to the trust fund under subsection (c). (b) Transfer of Amounts.--For each fiscal quarter in which revenue from duties imposed on or after January 20, 2025, exceeds $25,000,000,000, the Secretary of the Treasury shall transfer to the trust fund established under subsection (a), from the general fund of the Treasury, an amount equivalent to the amount received into the general fund during that quarter and attributable to such duties. (c) Investment of Amounts.-- (1) Investment of amounts.--The Secretary shall invest such portion of the trust fund established under subsection (a) as is not required to meet current withdrawals in interest- bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. (2) Interest and proceeds.--The interest on, and the proceeds from the sale or redemption of, any obligations held in the trust fund established under subsection (a) shall be credited to and form a part of the trust fund. (d) Availability of Amounts in Trust Fund.--During each fiscal quarter in which revenue from duties imposed on or after January 20, 2025, exceeds $25,000,000,000, amounts in the trust fund established under subsection (a) shall be available, without further appropriation, to the Secretary to provide payments to low- and middle-income households in the United States. ______ SA 2493. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. [[Page S3997]] Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. TERMINATION OF TARIFFS AFTER 3 YEARS. Any duty imposed by the President on or after January 20, 2025, shall terminate on the date that is 3 years after the date on which the duty was first imposed unless extended by an Act of Congress. ______ SA 2494. Mr. KIM submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. CFPB CERTIFICATION. If any provision of this Act results in a change in outlays or revenues of the Bureau of Consumer Financial Protection, as in effect on of the day before the date of enactment of this Act, the Director of the Bureau of Consumer Financial Protection, the Chairman of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury shall submit to Congress a certification on the number of consumer scams or complaints or other abuses committed against consumers that were reported to Bureau but went unanswered or were not investigated in a reasonable manner during the 1-year period beginning on January 20, 2025, and for each 1-year period thereafter. ______ SA 2495. Mr. KIM submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section 30004, add the following: (b) Limitation on Use of Funds.--None of the amounts appropriated under this section may be made available to any entity if a senior executive of, or a shareholder holding more than 5 percent of the equity interest in, the entity-- (1) is or was an elected official of the Federal Government; or (2) is serving or has served in a position at level I of the Executive Schedule under section 5312 of title 5, United States Code. ______ SA 2496. Mr. KIM submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. LIMITATION ON USE OF DEPARTMENT OF HOMELAND SECURITY FUNDS TO PREVENT CONGRESSIONAL OVERSIGHT OF DEPARTMENT FACILITIES. None of the funds made available to the Department of Homeland Security under this Act or under any other Act may be expended to prevent a Member of Congress and an accompanying employee of the Senate or of the House of Representatives from entering, for the purpose of conducting oversight, without advanced notice, any facility operated or used by the Department of Homeland Security to detain or otherwise house aliens, including U.S. Immigration and Customs Enforcement detention facilities, U.S. Customs and Border Patrol detention facilities, and field offices. ______ SA 2497. Mr. KIM (for himself, Mr. Schiff, and Mr. Peters) submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. FEDERAL EMERGENCY MANAGEMENT AGENCY APPROPRIATION. In addition to amounts otherwise made available, there is appropriated to the Federal Emergency Management Agency for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $12,000,000,000, to remain available until September 30, 2026, to carry out the purposes of the Disaster Relief Fund for costs associated with major disaster declarations. ______ SA 2498. Mr. KIM submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. APPROPRIATION TO INSPECTORS GENERAL TO INVESTIGATE CORRUPTION AND THE ABUSE OF POWER BY CERTAIN OFFICIALS. There is appropriated for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $10,000,000 to each office of an inspector general of an agency in the executive branch of the Federal Government, to remain available until expended, to investigate any conflicts of interest, including conflicts of interest for special government employees (as defined in section 202(a) of title 18, United States Code). ______ SA 2499. Mr. ROUNDS submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___01. POSTPONEMENT OF TAX DEADLINES FOR HOSTAGES AND INDIVIDUALS WRONGFULLY DETAINED ABROAD. (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 is amended by inserting after section 7510 the following new section: ``SEC. 7511. TIME FOR PERFORMING CERTAIN ACTS POSTPONED FOR HOSTAGES AND INDIVIDUALS WRONGFULLY DETAINED ABROAD. ``(a) Time To Be Disregarded.-- ``(1) In general.--The period during which an applicable individual was unlawfully or wrongfully detained abroad, or held hostage abroad, shall be disregarded in determining, under the internal revenue laws, in respect of any tax liability of such individual-- ``(A) whether any of the acts described in section 7508(a)(1) were performed within the time prescribed thereof (determined without regard to extension under any other provision of this subtitle for periods after the initial date (as determined by the Secretary) on which such individual was unlawfully or wrongfully detained abroad or held hostage abroad), ``(B) the amount of any interest, penalty, additional amount, or addition to the tax for periods after such date, and ``(C) the amount of any credit or refund. ``(2) Application to spouse.--The provisions of paragraph (1) shall apply to the spouse of any individual entitled to the benefits of such paragraph. ``(3) Special rule for overpayments.--The rules of section 7508(b) shall apply for purposes of this section. ``(b) Applicable Individual.-- ``(1) In general.--For purposes of this section, the term `applicable individual' means any individual who is-- ``(A) a United States national unlawfully or wrongfully detained abroad, as determined under section 302 of the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act (22 U.S.C. 1741), or ``(B) a United States national taken hostage abroad, as determined pursuant to the findings of the Hostage Recovery Fusion Cell (as described in section 304 of the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act (22 U.S.C. 1741b)). ``(2) Information provided to treasury.--For purposes of identifying individuals described in paragraph (1), not later than January 1, 2026, and annually thereafter-- ``(A) the Secretary of State shall provide the Secretary with a list of the individuals described in paragraph (1)(A), as well as any other information necessary to identify such individuals, and ``(B) the Attorney General, acting through the Hostage Recovery Fusion Cell, shall provide the Secretary with a list of the individuals described in paragraph (1)(B), as well as any other information necessary to identify such individuals. ``(c) Modification of Treasury Databases and Information Systems.--The Secretary shall update, as necessary, any database or information system of the Department of the Treasury in order to ensure that the provisions of subsection (a) are applied with respect to each applicable individual. ``(d) Refund and Abatement of Penalties and Fines Imposed Prior to Identification as Applicable Individual.--In the case of any applicable individual-- ``(1) for whom any interest, penalty, additional amount, or addition to the tax in respect to any tax liability for any taxable year ending during the period described in subsection (a)(1) was assessed or collected, and ``(2) who was, subsequent to such assessment or collection, determined to be an individual described in subparagraph (A) or (B) of subsection (b)(1), the Secretary shall abate any such assessment and refund any amount collected to such applicable individual in the same manner as any refund of an overpayment of tax under section 6402.''. (b) Clerical Amendment.--The table of sections for chapter 77 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 7510 the following new item: ``Sec. 7511. Time for performing certain acts postponed for hostages and individuals wrongfully detained abroad.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years ending after the date of enactment of this Act. SEC. ___02. REFUND AND ABATEMENT OF PENALTIES AND FINES PAID BY ELIGIBLE INDIVIDUALS. (a) In General.--Section 7511 of the Internal Revenue Code of 1986, as added by section ___01, is amended by adding at the end the following new subsection: [[Page S3998]] ``(d) Refund and Abatement of Penalties and Fines Paid by Eligible Individuals.-- ``(1) In general.-- ``(A) Establishment.--Not later than January 1, 2026, the Secretary shall establish a program to allow any eligible individual (or the spouse or any dependent (as defined in section 152) of such individual) to apply for a refund or an abatement of any amount described in paragraph (2) (including interest) to the extent such amount was attributable to the applicable period. ``(B) Identification of individuals.--Not later than January 1, 2026, the Secretary of State and the Attorney General, acting through the Hostage Recovery Fusion Cell (as described in section 304 of the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act (22 U.S.C. 1741b)), shall-- ``(i) compile a list, based on such information as is available, of individuals who were applicable individuals during the applicable period, and ``(ii) provide the list described in clause (i) to the Secretary. ``(C) Notice.--For purposes of carrying out the program described in subparagraph (A), the Secretary (in consultation with the Secretary of State and the Attorney General) shall, with respect to any individual identified under subparagraph (B), provide notice to such individual-- ``(i) in the case of an individual who has been released on or before the date of enactment of this subsection, not later than 90 days after the date of enactment of this subsection, or ``(ii) in the case of an individual who is released after the date of enactment of this subsection, not later than 90 days after the date on which such individual is released, that such individual may be eligible for a refund or an abatement of any amount described in paragraph (2) pursuant to the program described in subparagraph (A). ``(D) Authorization.-- ``(i) In general.--Subject to clause (ii), in the case of any refund described in subparagraph (A), the Secretary shall issue such refund to the eligible individual in the same manner as any refund of an overpayment of tax. ``(ii) Extension of limitation on time for refund.--With respect to any refund under subparagraph (A)-- ``(I) the 3-year period of limitation prescribed by section 6511(a) shall be extended until the end of the 1-year period beginning on the date that the notice described in subparagraph (C) is provided to the eligible individual, and ``(II) any limitation under section 6511(b)(2) shall not apply. ``(2) Eligible individual.--For purposes of this subsection, the term `eligible individual' means any applicable individual who, for any taxable year ending during the applicable period, paid or incurred any interest, penalty, additional amount, or addition to the tax in respect to any tax liability for such year of such individual based on a determination that an act described in section 7508(a)(1) which was not performed by the time prescribed therefor (without regard to any extensions). ``(3) Applicable period.--For purposes of this subsection, the term `applicable period' means the period-- ``(A) beginning on January 1, 2021, and ``(B) ending on the date of enactment of this subsection.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years ending on or before the date of enactment of this Act. ______ SA 2500. Ms. HIRONO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 60005 (relating to rescission of funding to address air pollution at schools). In section 60025(a), strike ``$256,657,000'' and insert ``$242,657,000''. ______ SA 2501. Mr. PAUL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike subsections (c) and (d) of section 70104 and insert the following: (c) Inflation Adjustment.--Section 24(i) is amended to read as follows: ``(i) Inflation Adjustment.-- ``(1) Adjustment of credit amount.--In the case of a taxable year beginning after 2025, the $2,200 amount in subsection (h)(2) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `2024' for `2016' in subparagraph (A)(ii) thereof. ``(2) Rounding.--If any increase under this subsection is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.''. (d) Elimination of Refundable Credit.-- (1) In general.--Section 24 is amended by striking subsection (d). (2) Conforming amendments.-- (A) Section 24(h) is amended by striking paragraphs (5) and (6). (B) Section 24(k)(2)(B) is amended by striking ``December 31, 2021'' and all that follows through the period and inserting ``December 31, 2021, the credit determined under this section shall be allowable to such resident.''. (C) Section 45R(f)(3)(B) is amended by inserting ``(as in effect before the date of the enactment of the One Big Beautiful Bill Act)'' after ``24(d)(2)(C)''. ______ SA 2502. Mr. WYDEN submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. JUDICIAL SECURITY AND PRIVACY. The Daniel Anderl Judicial Security and Privacy Act of 2022 (28 U.S.C. part III note; subtitle D of title LIX of Public Law 117-263) is amended-- (1) in section 5933(1)-- (A) by redesignating subparagraphs (A) through (E) as clauses (i) through (v), respectively, and adjusting the margins accordingly; (B) by striking ``The'' and inserting the following: ``(A) In general.--Except as provided in subparagraph (B), the''; and (C) by adding at the end the following: ``(B) Exception.--For purposes of section 5934(d)(1)(A), the term `at-risk individual' means-- ``(i) an individual that is located in the United States; or ``(ii) a United States person, as defined in section 101 of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801).''; and (2) in section 5934(f)(1) by inserting ``The Attorney General or the attorney general (or equivalent thereof) of any State may file an action seeking injunctive or declaratory relief in any court of competent jurisdiction to enforce the provisions of subsection (d)(1)(A).'' after the period at the end. ______ SA 2503. Mr. WYDEN submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. RESTRICTION ON THE USE OF FUNDS. No agency shall use any appropriated funds to construct an executive dining room or private gym for the use of senior administration officials without congressional approval. ______ SA 2504. Mr. WYDEN submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. TERMINATION OF DUTIES IMPOSED PURSUANT TO EXECUTIVE ORDER 14257. Duties imposed pursuant to the national emergency declared by Executive Order 14257 (90 Fed. Reg. 15041; relating to regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual United States goods trade deficits) shall not apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after the date that is 15 days after the date of the enactment of this Act. ______ SA 2505. Mr. WYDEN (for himself, Mr. Merkley, Mr. Markey, Mr. Warnock, and Ms. Baldwin) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 60019 (relating to rescission of neighborhood access and equity grant program). ______ SA 2506. Mr. WYDEN submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. PROTECTING PERSONALLY IDENTIFIABLE INFORMATION. (a) Definitions.--In this section: (1) Agency.--The term ``agency'' has the meaning given that term in section 552(f) of title 5, United States Code. (2) Individual.--The term ``individual'' means an individual that is a-- (A) United States person, as defined in section 101 of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801); or [[Page S3999]] (B) person in the United States. (3) Personally identifiable information.--The term ``personally identifiable information'' means any information that identifies, or is linked or reasonably linkable, alone or in combination with other data, to-- (A) an individual; or (B) a device that identifies, or is linked or reasonably linkable to, an individual. (4) Process.--The term ``process'', with respect to personally identifiable information, means to perform an operation or set of operations on the personally identifiable information, including by storing, analyzing, organizing, structuring, using, modifying, or otherwise handling the personally identifiable information, whether or not by automated means. (5) Record.--The term ``record'' means any personally identifiable information processed by an agency. (6) System of records.--The term ``system of records'' means a group of any records maintained by or for, or otherwise under the control of, any agency. (b) Prohibition on Use of Federal Funds.--No Federal funds may be used to implement, administer, or enforce Executive Order 14243 (90 Fed. Reg. 13681; relating to stopping waste, fraud, and abuse by eliminating information silos), or any successive executive order. (c) Contracts.-- (1) In general.--No Federal funds may be used to acquire services or software from, or use any services or software acquired from, Palantir Technologies Inc. for the processing of personally identifiable information in 1 or more systems of records. (2) Termination.--Any contract which has a requirement for the processing described in paragraph (1) is hereby terminated. ______ SA 2507. Mr. WYDEN (for himself, Mr. Merkley, Mr. Markey, Mr. Warnock, and Ms. Baldwin) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 60019 (relating to rescission of neighborhood access and equity grant program), insert ``except for any amounts that were awarded before the date of enactment of this Act but are unobligated as of that date of enactment,'' after ``Code,''. In section 60019 (relating to rescission of neighborhood access and equity grant program), strike ``The unobligated'' and insert the following: (a) In General.--The unobligated In section 60019 (relating to rescission of neighborhood access and equity grant program), add at the end the following: (b) Treatment.--Amounts made available to carry out section 177 of title 23, United States Code, that were not rescinded under subsection (a) shall be obligated for the projects for which those funds were awarded. ______ SA 2508. Mr. WHITEHOUSE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 60012, strike subsection (b). ______ SA 2509. Mr. WHITEHOUSE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike title VI (relating to Committee on Environment and Public Works). ______ SA 2510. Mr. WHITEHOUSE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 112 of the National Environmental Policy Act of 1969 (as added by section 60026), add at the end the following: ``(c) Additional Fee for Renaming of Issuing Agency.--In addition to the fee determined under subsection (b), a project sponsor may pay an additional fee, which shall be in an amount equal to the amount determined under that subsection, to add the name of the project sponsor to the front of the name of the Federal agency that issued the permit for the applicable project for a period of 180 days.''. ______ SA 2511. Mr. WHITEHOUSE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. REPEAL OF CERTAIN PROVISIONS. (a) Provisions Relating to International Tax.--The amendments made by the following provisions of this Act are repealed, and the Internal Revenue Code of 1986 shall be applied as if such amendments had not been enacted: (1) Section 70311 (relating to rules for allocation of certain deductions to foreign source net CFC tested income for purposes of foreign tax credit limitation). (2) Section 70312 (relating to modifications to determination of deemed paid credit for taxes property attributable to tested income). (3) Section 70313 (relating to sourcing certain income from sale of inventory produced in the United States). (4) Section 70321 (relating to modification of deduction for foreign-derived deduction eligible income and net CFC tested income). (5) Section 70322 (relating to determination of deduction eligible income). (6) Section 70331 (relating to the extension and modification of the base erosion minimum tax amount). (7) Section 70351 (relating to permanent extension of look- thru rule for controlled foreign corporations). (8) Section 70353 (relating to restoration of limitation on downward attribution of stock ownership in applying constructive ownership rules). (b) Provisions Relating to Medicaid.--The amendments made by the following provisions of this Act are repealed, and the Social Security Act shall be applied as if such amendments had not been enacted: (1) Section 71103 (relating to reducing duplicate enrollment under the Medicaid and CHIP programs). (2) Section 71107 (relating to eligibility redetermination). (3) Section 71113 (relating to limiting retroactive coverage). (4) Section 71116 (relating to sunsetting increased FMAP incentive). (5) Section 71122 (relating to modifying cost sharing requirements for certain expansion individuals under the Medicaid program). (c) Effective Date.--The repeals made by this section shall take effect as if included in the enactment of the section to which they relate. ______ SA 2512. Mr. WHITEHOUSE submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title VII, insert the following: SEC. __. GAO STUDY AND REPORT ON RURAL AND URBAN HOSPITAL AND NURSING HOME CLOSURES. (a) Study.-- (1) In general.--The Comptroller General shall conduct a study on the closures of hospitals and nursing homes located in rural, urban, and suburban areas in the United States. Such study shall include an analysis, for each of 2024, 2025, 2026, and 2027, of-- (A) the number of hospitals located in such areas that-- (i) closed; or (ii) reduced service offerings (obstetric services, inpatient services, etc.); and (B) the number of nursing homes located in such areas that closed. (2) Definitions.--For purposes of this section: (A) Comptroller general.--The term ``Comptroller General'' means the Comptroller General of the United States. (B) Nursing home.--The term ``nursing home'' means-- (i) a skilled nursing facility (as defined in section 1819(a) of the Social Security Act (42 U.S.C. 1395i-3(a))); and (ii) a nursing facility (as defined in section 1919(a) of such Act (42 U.S.C. 1396r(a))) (C) Nursing home closure.--The term ``closure'' means, with respect to a nursing home, that the nursing home-- (i) does not complete a required survey or certification; or (ii) is no longer submitting assessment data to the Centers for Medicare & Medicaid Services. (b) Report.--Not later than 4 years after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report containing the results of the study conducted under subsection (a)(1), together with recommendations for such legislation and administrative action as the Comptroller General determines appropriate. ______ SA 2513. Mr. WHITEHOUSE submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. ADDITIONAL HOSPITAL INSURANCE TAX ON TRADE OR BUSINESS INCOME OF CERTAIN HIGH INCOME INDIVIDUALS. (a) In General.--Section 1401(b) is amended by adding at the end the following new paragraph: ``(3) Application to certain high income individuals.-- ``(A) In general.--In addition to the taxes imposed by paragraphs (1) and (2) and subsection (a), in the case of any individual [[Page S4000]] whose modified adjusted gross income for the taxable year exceeds the high income threshold amount, there is hereby imposed on the income of such individual a tax equal to 3.8 percent of the individual's specified net income for the taxable year. ``(B) Phase-in of tax.--The tax imposed by subparagraph (A) shall not exceed the amount which bears the same ratio to the amount of such tax (determined without regard to this subparagraph) as-- ``(i) the amount by which the individual's modified adjusted gross income exceeds the high income threshold amount, bears to ``(ii) $100,000 (\1/2\ such amount in the case of a married taxpayer (as defined in section 7703) filing a separate return). ``(C) High income threshold amount.--For purposes of this paragraph, the term `high income threshold amount' means-- ``(i) except as provided in clause (ii) or (iii), $400,000, ``(ii) in the case of a taxpayer making a joint return under section 6013 or a surviving spouse (as defined in section 2(a)), $500,000, and ``(iii) in the case of a married taxpayer (as defined in section 7703) filing a separate return, \1/2\ of the dollar amount determined under clause (ii). ``(D) Specified net income.--For purposes of this paragraph-- ``(i) In general.--The term `specified net income' means the excess, if any, of-- ``(I) the sum of-- ``(aa) gross income from interest, dividends, annuities, royalties, and rents which is derived in the ordinary course of a trade or business not described in section 1411(c)(2), ``(bb) other gross income derived from a trade or business not described in section 1411(c)(2), and ``(cc) net gain (to the extent taken into account in computing taxable income) attributable to the disposition of property held in a trade or business not described in section 1411(c)(2), including gain from the disposition of an interest in a partnership or S corporation (other than gain which is described in section 1411(c)(1)(A)(iii), after the application of section 1411(c)(4)), over ``(II) the deductions allowed by this subtitle, other than section 172, which are properly allocable to such gross income or net gain. The rules of paragraphs (5) and (6) of section 469(c) shall apply for purposes of this clause. ``(ii) Exceptions.--Such term shall not include-- ``(I) any distribution to which section 1411(c)(5) applies, ``(II) self-employment income subject to the taxes imposed by paragraphs (1) and (2), ``(III) wages on which a tax is imposed under section 3101(b), ``(IV) compensation subject to the tax under subsections (a) and (b) of section 3201, or ``(V) net investment income subject to the tax under section 1411(a). ``(E) Coordination rule.--For purposes of section 1402(a)(12)(B), the tax imposed by subparagraph (A) shall not be treated as a rate imposed by this subsection.''. (b) Application to Trusts and Estates.--Section 1411(a)(2)(A) is amended by striking ``undistributed net investment income'' and inserting ``the greater of undistributed specified net income (as determined under section 1401(b)(3)(D)) or undistributed net investment income''. (c) Clarifications With Respect to Determination of Net Investment Income.-- (1) Net operating losses not taken into account.--Section 1411(c)(1)(B) is amended by inserting ``(other than section 172)'' after ``this subtitle''. (2) Inclusion of certain foreign income.-- (A) In general.--Section 1411(c)(1)(A) is amended by striking ``and'' at the end of clause (ii), by striking ``over'' at the end of clause (iii) and inserting ``and'', and by adding at the end the following new clause: ``(iv) any amount includible in gross income under section 951, 951A, 1293, or 1296, over''. (B) Proper treatment of certain previously taxed income.-- Section 1411(c) is amended by adding at the end the following new paragraph: ``(7) Certain previously taxed income.--The Secretary shall issue regulations or other guidance providing for the treatment of distributions of amounts previously included in gross income for purposes of chapter 1 but not previously subject to tax under this section.''. (d) Conforming Amendment.--Section 164(f)(1) is amended by striking ``section 1401(b)(2)'' and inserting ``paragraphs (2) and (3) of section 1401''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. (f) Transition Rule.--The regulations or other guidance issued by the Secretary under section 1411(c)(7) of the Internal Revenue Code of 1986 (as added by this section) shall include provisions which provide for the proper coordination and application of clauses (i) and (iv) of section 1411(c)(1)(A) with respect to-- (1) taxable years beginning on or before December 31, 2025, and (2) taxable years beginning after such date. ______ SA 2514. Mr. WHITEHOUSE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70523. ______ SA 2515. Mr. WHITEHOUSE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. REPEAL OF CERTAIN PROVISIONS. (a) Modification of Deduction for Foreign-derived Deduction Eligible Income and Net CFC Tested Income.--Section 70321 is repealed, and the Internal Revenue Code of 1986 shall be applied as if the amendments made by such section had not been enacted. (b) Provisions Relating to Medicaid.--The amendments made by the following provisions of this Act are repealed, and the Social Security Act shall be applied as if such amendments had not been enacted: (1) Section 71107 (relating to eligibility redeterminations). (2) Section 71116 (relating to sunsetting increased FMAP incentive). (3) Section 71122 (relating to modifying cost sharing requirements for certain expansion individuals under the Medicaid program). (c) Effective Date.--The repeals made by this section shall take effect as if included in the enactment of the section to which they relate. ______ SA 2516. Mr. WHITEHOUSE (for himself, Mr. Reed, and Ms. Hirono) submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. INDEXING FEDERAL PELL GRANTS FOR INFLATION. Clause (i) of section 401(b)(5)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)(A)) is amended to read as follows: ``(i)(I) for award years 2024-2025 and 2025-2026, $1,060; and ``(II) for award year 2026-2027 and each subsequent award year, the amount awarded under this clause for the preceding award year, increased by the percentage increase, if any, in the Consumer Price Index for All Urban Consumers published by the Department of Labor for the most recent calendar year ending prior to the beginning of the award year for which the determination is being made.''. ______ SA 2517. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 829, between lines 3 and 4, insert the following: (d) Restriction on Certain Contracts, Grants, and Cooperative Agreements.--None of the funds made available under subsection (a) may be used for a contract, grant, or cooperative agreement with any company in which a Federal official or employee, including a special Government employee (as defined in section 202(a) of title 18, United States Code), has financial holdings equal to or greater than $100,000. On page 834, line 23, strike ``In addition'' and insert the following: (a) In General.--In addition On page 835, between lines 5 and 6, insert the following: (b) Restriction on Certain Contracts, Grants, and Cooperative Agreements.--None of the funds made available under subsection (a) may be used for a contract, grant, or cooperative agreement with any company in which a Federal official or employee, including a special Government employee (as defined in section 202(a) of title 18, United States Code), has financial holdings equal to or greater than $100,000. On page 899, line 11, strike ``in addition'' and insert the following: (a) In General.--In addition On page 904, between lines 16 and 17, insert the following: (b) Restriction on Certain Contracts, Grants, and Cooperative Agreements.--None of the funds made available under subsection (a) may be used for a contract, grant, or cooperative agreement with any company in which a Federal official or employee, including a special Government employee (as defined in section 202(a) of title 18, United States Code), has financial holdings equal to or greater than $100,000. On page 904, line 19, strike ``In addition'' and insert the following: (a) In General.--In addition On page 909, between lines 15 and 16, insert the following: (b) Restriction on Certain Contracts, Grants, and Cooperative Agreements.--None of the funds made available under subsection (a) may be used for a contract, grant, or cooperative agreement with any company in which a Federal official or employee, including a special Government employee (as [[Page S4001]] defined in section 202(a) of title 18, United States Code), has financial holdings equal to or greater than $100,000. ______ SA 2518. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in chapter 6 of subtitle A of title VIII, insert the following: SEC. _____. TRANSACTION TAX. (a) In General.--Chapter 36 is amended by inserting after subchapter B the following new subchapter: ``Subchapter C--Tax on Certain Digital Asset Transaction Fees ``Sec. 4475. Tax on certain digital asset transaction fees. ``SEC. 4475. TAX ON CERTAIN DIGITAL ASSET TRANSACTION FEES. ``(a) Imposition of Tax.--There is hereby imposed a tax on any covered transaction fee with respect to any digital asset. ``(b) Rate of Tax.--The tax imposed under subsection (a) with respect to any covered transaction shall be 25 percent of the transaction fee. ``(c) Covered Transaction Fee.--For purposes of this section-- ``(1) In general.--The term `covered transaction fee' means a fee assessed on the purchase of a digital asset if such fee is assessed by an applicable entity. ``(2) Applicable entity.-- ``(A) In general.--The term `applicable entity' means any entity in which a Federal official directly or indirectly holds a controlling interest. ``(B) Federal official.--The term `Federal official' means any individual who occupies a position in any agency or instrumentality of the executive, legislative, or judicial branch of the Federal Government. ``(C) Controlling interest.--The term `controlling interest' means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity. ``(d) Digital Asset.--For purposes of this section, the term `digital asset' has the meaning given such term under section 6045(g)(3)(D). ``(e) By Whom Paid.--The tax imposed by this section shall be paid by the applicable entity. ``(f) Regulations and Guidance.--The Secretary shall prescribe such regulations as are necessary or appropriate to carry out the purposes of this section.''. (b) Conforming Amendment.--The table of subchapters for chapter 36 of such Code is amended by inserting after the item relating to subchapter B the following new item: ``subchapter c--tax on certain digital asset transaction fees''. (c) Effective Date.--The amendments made by this section shall apply to transactions after December 31, 2025. ______ SA 2519. Mr. KAINE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. LIMITATIONS. (a) In General.--No amounts made available under this Act, or an amendment made by this Act, may be obligated or expended until after the date on which the head of each agency to which amounts are made available under this Act has certified to Congress that the agency-- (1) has ceased any mass layoff; (2) is not executing a reduction in force plan; and (3) is not in violation of the Impoundment Control Act of 1974 (2 U.S.C. 681 et seq.) or sections 1341, 1342, or 1517 of title 31, United States Code (commonly known as ``the Antideficiency Act''). (b) Reporting.--The Comptroller General of the United States shall submit to Congress a report that, for each agency to which amounts are made available under this Act, or an amendment made by this Act, addresses the legal authority of, and impacts on the mission of the agency resulting from, any reduction in force by the agency, any mass termination by the agency, any coerced resignations of employees of the agency, or any firing or placing on administrative leave of employees of the agency for the cause of alleged insubordination on or after January 20, 2025. (c) Definition.--In this section, the term ``mass layoff'' means the termination of more than 1 percent of the employees of an agency. ______ SA 2520. Ms. ALSOBROOKS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 402, strike lines 2 and 3 and insert the following: ``(H) such organization provides scholarships only to qualified elementary or secondary schools that provide the same protections under applicable Federal civil rights laws that are provided to a student of a public elementary or secondary school, including the Age Discrimination Act of 1975, title VI of the Civil Rights Act of 1964, title IX of the Education Amendments of 1972, section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, section 444 of the General Education Provisions Act (commonly referred to as the `Family Educational Rights and Privacy Act of 1974'), and the Individuals with Disabilities Education Act, and ``(I) no officer or board member of such ______ SA 2521. Ms. ALSOBROOKS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. DELAYED EFFECTIVE DATE. The provisions of, and the amendments made by, this Act shall not take effect until the date on which each State completes a study and submits to Congress a report on such study regarding the number of individuals currently enrolled and receiving medical assistance under a State plan (or a waiver of such plan) under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) or enrolled in a health plan offered on the American Health Benefit Exchanges established pursuant to subtitle D of title I of the Patient Protection and Affordable Care Act (42 U.S.C. 18021 et seq.) that would lose coverage under such plan as a result of such provisions and amendments taking effect. ______ SA 2522. Ms. ALSOBROOKS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70436 and insert the following: SEC. 70436. ADDITIONAL FUNDING FOR THE MEDICARE PART A TRUST FUND. In addition to amounts otherwise made available, there is appropriated to the Federal Hospital Insurance Trust Fund under section 1817 of the Social Security Act (42 U.S.C. 1395i) for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,700,000,000, to remain available until expended. ______ SA 2523. Ms. ALSOBROOKS (for herself, Mr. Bennet, Mr. Booker, Ms. Blunt Rochester, Mr. Schiff, Mr. Van Hollen, and Mr. Hickenlooper) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 10107. ______ SA 2524. Ms. ALSOBROOKS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. DEDUCTION FOR TRADE AND BUSINESS EXPENSES OF FIREFIGHTERS AND LAW ENFORCEMENT OFFICERS. (a) Deduction From Adjusted Gross Income.--Section 62(a)(2) is amended by adding at the end the following new subparagraph: ``(F) Certain expenses of firefighters and law enforcement officers.--The deductions allowed by section 162 which consist of expenses paid or incurred by Federal, State, or local firefighters or law enforcement officers in connection with the performance of their official duties.''. (b) Adjustment to Corporate Tax Rate.--Section 11(b) is amended by striking ``20 percent'' and inserting ``20.5 percent''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2525. Mr. KIM (for himself and Mr. Blumenthal) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 82002 and insert the following: SEC. 82002. DEFERMENT; FORBEARANCE. (a) Sunset of Economic Hardship and Unemployment Deferments.--Section 455(f) of [[Page S4002]] the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended-- (1) by striking the subsection heading and inserting the following: ``Deferment; Forbearance''; (2) in paragraph (2)-- (A) in subparagraph (B), by striking ``not in'' and inserting ``subject to paragraph (7), not in'' ; and (B) in subparagraph (D), by striking ``not in'' and inserting ``subject to paragraph (7), not in''; and (3) by adding at the end the following: ``(7) Sunset of unemployment and economic hardship deferments.--A borrower who receives a loan made under this part on or after the later of July 1, 2027, or the date on which the Secretary makes a determination under section 82002(c) of the One Big Beautiful Bill Act, shall not be eligible to defer such loan under subparagraph (B) or (D) of paragraph (2).''. (b) Forbearance on Loans Made Under This Part on or After July 1, 2027.--Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended by adding at the end the following: ``(8) Forbearance on loans made under this part on or after july 1, 2027.--A borrower who receives a loan made under this part on or after the later of July 1, 2027, or the date on which the Secretary makes a determination under section 82002(c) of the One Big Beautiful Bill Act, may only be eligible for a forbearance on such loan pursuant to section 428(c)(3)(B) that does not exceed 9 months during any 24- month period.''. (c) Certification Requirement.-- (1) In general.--The amendments made by subsections (a) and (b) shall not apply until the date on which the Chief Operating Officer for the Office of Federal Student Aid certifies in writing to the Secretary of Education and the appropriate committees of Congress that implementation of such amendments will not result in additional financial hardship for any borrower who-- (A)(i) is serving on active duty during a war or other military operation or national emergency; or (ii) is performing qualifying National Guard duty during a war or other military operation or national emergency; (B) is receiving treatment for cancer; (C) is enrolled in a rehabilitation program for physical or mental impairment; or (D) became unemployed in the 180 days preceding the date of such certification. (2) Definitions.--In this subsection: (A) Additional financial hardship.--The term ``additional financial hardship'' means any-- (i) increase in monthly payment amounts for a loan made under part D of title IV of the Higher Education Act of 1965; (ii) loss of eligibility for any deferment or forbearance option under the Higher Education Act of 1965 for which the borrower would have been eligible prior to the implementation of the amendments made by subsections (a) and (b); or (iii) other changes resulting in a materially adverse impact on the ability of the borrower to afford basic living expenses. (B) Appropriate committees of congress.--The term ``appropriate committees of Congress'' means-- (i) the Committee on Health, Education, Labor, and Pensions of the Senate; (ii) the Committee on Appropriations of the Senate; (iii) the Committee on Education and Workforce of the House of Representatives; and (iv) the Committee on Appropriations of the House of Representatives. ______ SA 2526. Mr. MURPHY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 491, line 15, strike ``$0'' and insert ``$1''. On page 491, line 23, strike ``$0'' and insert ``$1''. ______ SA 2527. Mr. GRASSLEY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike sections 10306 through 10307 and insert the following: SEC. 1____. DEFINITION OF SIGNIFICANT CONTRIBUTION OF ACTIVE PERSONAL MANAGEMENT. Section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a)) is amended by adding at the end the following: ``(6) Significant contribution of active personal management.--The term `significant contribution of active personal management' means active personal management activities performed by a person with a direct or indirect ownership interest in the farming operation on a regular, continuous, and substantial basis to the farming operation, and that meet at least one of the following to be considered significant: ``(A) Are performed for at least 25 percent of the total management hours required for the farming operation on an annual basis. ``(B) Are performed for at least 500 hours annually for the farming operation.''. SEC. 1____. ACTIVELY ENGAGED IN FARMING REQUIREMENT. Section 1001A(b) of the Food Security Act of 1985 (7 U.S.C. 1308-1(b)) is amended by adding at the end the following: ``(3) Actively engaged in farming requirement.-- ``(A) In general.--Notwithstanding any other provision of this section (other than subsection (c)(6)), section 1001, and sections 1001B through 1001F, and any regulations to implement those provisions or sections, the Secretary shall consider not more than 1 person or legal entity per farming operation to be actively engaged in farming using active personal management. ``(B) Requirements.--The Secretary may only consider a person or legal entity to be actively engaged in farming using active personal management under subparagraph (A) if the person or legal entity-- ``(i) does not use the active management contribution allowed under this section to qualify as actively engaged in farming in more than 1 farming operation; and ``(ii) manages a farming operation that does not substantially share equipment, labor, or management with persons or legal entities that, together with the person or legal entity, collectively receive, directly or indirectly, an amount equal to more than the limitation under subsection (b) or (c) of section 1001. ``(C) Effect.--Nothing in this paragraph shall limit-- ``(i) a person or legal entity otherwise eligible to receive a payment described in subsection (b) or (c) of section 1001 from being considered actively engaged in farming using personal labor pursuant to paragraph (2)(A)(i)(II); or ``(ii) the determination, pursuant to subsection (c)(6), that a spouse (or estate of a deceased spouse) has met the requirements of paragraph (2)(A)(i)(II), if the other spouse meets the requirements (including the requirements under this paragraph) to be considered actively engaged in farming using active personal management.''. ______ SA 2528. Mr. GRASSLEY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. ALLOWANCE OF CASUALTY LOSS DEDUCTION FOR CERTAIN LOSSES RELATED TO RETIREMENT ACCOUNT THEFT. (a) In General.--Section 165(h)(5)(A), as amended by this Act, is further amended-- (1) by striking ``attributable to a Federally declared disaster'' and inserting ``attributable to-- ``(i) a Federally declared disaster'', (2) by striking the period at the end and inserting ``, or'', and (3) by adding at the end the following new clause: ``(ii) theft in connection with a qualified theft-related retirement distribution.''. (b) Exception Related to Personal Casualty Gains.--Section 165(h)(5)(B), as amended by this Act, is further amended by striking ``(as so defined) or a State declared disaster'' in clause (i) and inserting ``(as so defined), a State declared disaster, or a theft described in subparagraph (A)(ii),''. (c) Qualified Theft-related Retirement Distribution.-- Section 165(h) is amended by adding at the end the following new paragraph: ``(6) Rules relating to qualified theft-related retirement distribution.--For purposes of this section-- ``(A) In general.--The term `qualified theft-related retirement distribution' means any distribution from an eligible retirement plan (as defined in section 402(c)(8)(B))-- ``(i) which is induced by fraud or deceit, and ``(ii) the amounts distributed in which are lost due to theft (within the meaning of subsection (c)(3)). ``(B) Substantiation requirement.--A distribution shall be treated as a qualified theft-related retirement distribution only if-- ``(i) the theft is reported to a law enforcement agency within 60 days of discovery of the theft, and ``(ii) the taxpayer provides substantiation of the theft and that the theft was properly reported to a law enforcement agency, including a police report and statement from the plan, or other documentation as determined by the Secretary. The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subparagraph, including regulations that may provide that some or all of the requirements of this subparagraph do not apply in appropriate cases. ``(C) Loss allowed to extent of income inclusion.--The loss taken into account with respect to a qualified theft-related retirement distribution shall not exceed the amount included in gross income as a result of the distribution under section 72, 402(a), 403(a), 403(b), 408(d), or 457(a). ``(D) Exemption from 10 percent rule.--Paragraph (2)(A) shall not apply to loss or gain related to a qualified theft- related retirement distribution. [[Page S4003]] ``(E) Year of deduction.-- ``(i) In general.--Loss or gain related to a qualified theft-related retirement distribution may be taken into account either in the year of the income inclusion described in subparagraph (C) or in the year of discovery of the theft or fraud. ``(ii) Period of limitation for claims.--The period of limitation under section 6511 shall be extended such that, notwithstanding subsections (a) and (b) of section 6511-- ``(I) any claim for credit or refund (and any assessment of tax) attributable to a deduction under this section with respect to a qualified theft-related retirement distribution may be made within 3 years after the later of the date of the income inclusion described in subparagraph (C) or the date of the discovery of the theft or fraud, and ``(II) the limitation of subsection 6511(b)(2) shall not apply to such claim.''. (d) Waiver of 10-percent Additional Tax on Early Distributions.--Section 72(t)(2) is amended by adding at the end the following new subparagraph: ``(O) Qualified theft-related retirement distributions.-- Any qualified theft-related retirement distribution (as defined in section 165(h)(6)).''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2017. (f) Claims Originating in Prior Years.--In the case of a qualified theft-related retirement distribution occurring before the date of the enactment of this Act, notwithstanding section 165(h)(6)(D)(ii) of the Internal Revenue Code of 1986 (as added by this section), the period of limitation under section 6511 of such Code shall not expire until the date which is 3 years after such date of enactment. ______ SA 2529. Mr. GRASSLEY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 582, strike line 20 and all that follows through page 583, line 14, and insert the following: (e) Preventing Double Credit.--Section 45Z(d)(5) is amended-- (1) in subparagraph (A)-- (A) in clause (ii), by striking ``and'' at the end, (B) in clause (iii), by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following new clause: ``(iv) subject to subparagraph (C), is not produced from a fuel for which a credit under this section is allowable.'', and (2) by adding at the end the following new subparagraphs: ``(C) Special rule.--In the case of any alcohol fuel produced by a taxpayer, if such taxpayer-- ``(i) sells such fuel to an unrelated person for use by such person in the production of sustainable aviation fuel, ``(ii) makes an election (in such form and manner as the Secretary shall designate) under this subparagraph that such taxpayer will not claim a credit under this section with respect to the fuel described in clause (i), and ``(iii) provides written notice of such election to the producer of the sustainable aviation fuel, subparagraph (A)(iv) shall not apply with respect to such sustainable aviation fuel. ``(D) Regulations and guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of subparagraphs (A)(iv) and (C).''. ______ SA 2530. Mr. GRASSLEY submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. EXPANSION OF PELL GRANT EXCLUSION FROM GROSS INCOME. (a) In General.--Section 117(b)(1) is amended by striking ``received by an individual'' and all that follows and inserting ``received by an individual-- ``(A) as a scholarship or fellowship grant to the extent the individual establishes that, in accordance with the conditions of the grant, such amount was used for qualified tuition and related expenses, or ``(B) as a Federal Pell Grant under section 401 of the Higher Education Act of 1965 (as in effect on the date of the enactment of the One Big Beautiful Bill Act).''. (b) No Adjustment Under American Opportunity and Lifetime Learning Credits.--Section 25A(g)(2)(A) is amended by inserting ``(other than a Federal Pell Grant under section 401 of the Higher Education Act of 1965 (as in effect on the date of the enactment of the One Big Beautiful Bill Act))'' after ``section 117''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2531. Mr. KELLY (for himself and Mr. Warner) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 40005, strike subsection (a) and insert the following: (a) In General.--Chapter 203 of title 51, United States Code, is amended by adding at the end the following: ``Sec. 20306. Special appropriations for Mars missions, Artemis missions, and Moon to Mars program ``(a) In General.--In addition to amounts otherwise available, there is appropriated to the Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $9,995,000,000, to remain available until September 30, 2032, to use as follows: ``(1) $700,000,000, to be obligated not later than fiscal year 2026, for the procurement, using a competitively bid, firm fixed-price contract with a United States commercial provider (as defined in section 50101(7)), of a high- performance Mars telecommunications orbiter-- ``(A) that-- ``(i) is capable of providing robust, continuous communications for-- ``(I) a Mars sample return mission, as described in section 432(3)(C) of the National Aeronautics and Space Administration Transition Authorization Act of 2017 (51 U.S.C. 20302 note; Public Law 115-10); and ``(II) future Mars surface, orbital, and human exploration missions; ``(ii) supports autonomous operations, onboard processing, and extended mission duration capabilities; and ``(iii) is selected from among the commercial proposals that-- ``(I) received funding from the Administration in fiscal year 2024 or 2025 for commercial design studies for Mars Sample Return; and ``(II) proposed a separate, independently launched Mars telecommunication orbiter supporting an end-to-end Mars sample return mission; and ``(B) which shall be delivered to the Administration not later than December 31, 2028. ``(2) $2,600,000,000 to meet the requirements of section 20302(a) using the program of record known, as of the date of the enactment of this section, as `Gateway', and as described in section 10811(b)(2)(B)(iv) of the National Aeronautics and Space Administration Authorization Act of 2022 (51 U.S.C. 20302 note; Public Law 117-167), of which not less than $750,000,000 shall be obligated for each of fiscal years 2026, 2027, and 2028. ``(3) $4,100,000,000 for expenses related to meeting the requirements of section 10812 of the National Aeronautics and Space Administration Authorization Act of 2022 (51 U.S.C. 20301; Public Law 117-167) for the procurement, transportation, integration, operation, and other necessary expenses of the Space Launch System for Artemis Missions IV and V, of which not less than $1,025,000,000 shall be obligated for each of fiscal years 2026, 2027, 2028, and 2029. ``(4) $20,000,000 for expenses related to the continued procurement of the multi-purpose crew vehicle described in section 303 of the National Aeronautics and Space Administration Authorization Act of 2010 (42 U.S.C. 18323), known as the `Orion', for use with the Space Launch System on the Artemis IV Mission and reuse in subsequent Artemis Missions, of which not less than $20,000,000 shall be obligated not later than fiscal year 2026. ``(5) $1,250,000,000 for expenses related to the operation of the International Space Station and for the purpose of meeting the requirement under section 503(a) of the National Aeronautics and Space Administration Authorization Act of 2010 (42 U.S.C. 18353(a)), of which not less than $250,000,000 shall be obligated for such expenses for each of fiscal years 2025, 2026, 2027, 2028, and 2029. ``(6) $1,000,000,000 for infrastructure improvements at the manned spaceflight centers of the Administration, of which not less than-- ``(A) $120,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 12641 (53 Fed. Reg. 18816; relating to designating certain facilities of the National Aeronautics and Space Administration in the State of Mississippi as the John C. Stennis Space Center); ``(B) $250,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 11129 (28 Fed. Reg. 12787; relating to designating certain facilities of the National Aeronautics and Space Administration and of the Department of Defense, in the State of Florida, as the John F. Kennedy Space Center); ``(C) $300,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in the Joint Resolution entitled `Joint Resolution to designate the Manned Spacecraft Center in Houston, Texas, as the ``Lyndon B. Johnson Space Center'' in honor of the late President', approved February 17, 1973 (Public Law 93-8; 87 Stat. 7); ``(D) $100,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the center described in Executive Order 10870 (25 [[Page S4004]] Fed. Reg. 2197; relating to designating the facilities of the National Aeronautics and Space Administration at Huntsville, Alabama, as the George C. Marshall Space Flight Center); and ``(E) $30,000,000 shall be obligated not later than fiscal year 2026 for construction, revitalization, recapitalization, or other infrastructure projects and improvements at the Michoud Assembly Facility in New Orleans, Louisiana. ``(7) $325,000,000 to fulfill contract number 80JSC024CA002 issued by the National Aeronautics and Space Administration on June 26, 2024. ``(b) Obligation of Funds.--Funds appropriated under subsection (a) shall be obligated as follows: ``(1) Not less than 50 percent of the total funds in subsection (a) shall be obligated not later than September 30, 2028. ``(2) 100 percent of funds shall be obligated not later than September 30, 2029. ``(3) All associated outlays shall occur not later than September 30, 2034.''. ______ SA 2532. Mr. KELLY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike sections 70522 and 70523 and insert the following: SEC. 70522. RESTRICTIONS ON CARBON OXIDE SEQUESTRATION CREDIT. (a) Restrictions Relating to Prohibited Foreign Entities.-- Section 45Q(f) is amended by adding at the end the following new paragraph: ``(10) Restrictions relating to prohibited foreign entities.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is-- ``(A) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(B) a foreign-influenced entity (as defined in section 7701(a)(51)(D), determined without regard to clause (i)(II) thereof).''. (b) Effective Dates.--The amendment made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. ______ SA 2533. Mr. KELLY submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 50305 and insert the following: SEC. 50305. RESPONSIBLE STEWARDSHIP OF PUBLIC LANDS. (a) National Park Service.-- (1) Definitions.--In this subsection: (A) Secretary.--The term ``Secretary'' means the Secretary of the Interior. (B) Service.--The term ``Service'' means the National Park Service. (2) National park service staffing and personnel.--As soon as practicable after the date of enactment of this Act, using funds previously appropriated to the Secretary for such purposes, the Secretary shall-- (A) take such actions as are necessary-- (i) to ensure that the units of the National Park System are fully staffed to ensure visitor safety and enjoyment and natural and cultural resource protection at the units of the National Park System; and (ii) to ensure that all maintenance staff positions at the Service are filled; and (B) reinstate any individuals who were involuntarily removed or otherwise terminated from employment with the Service during the period beginning on January 20, 2025, and ending on the date of enactment of this Act. (3) Continuation of authorized national park service projects.--The Secretary shall have the authority to continue to carry out any Service project for which funds are authorized or appropriated under-- (A) the Federal Lands Recreation Enhancement Act (16 U.S.C. 6801 et seq.); (B) the Great American Outdoors Act (Public Law 116-152; 134 Stat. 682); (C) the Infrastructure Investment and Jobs Act (Public Law 117-58; 135 Stat. 429); or (D) Public Law 117-169 (commonly known as the ``Inflation Reduction Act of 2022'') (136 Stat. 1818). (b) Bureau of Land Management.-- (1) Definitions.--In this subsection: (A) Bureau.--The term ``Bureau'' means the Bureau of Land Management. (B) Public lands.--The term ``public lands'' has the meaning given the term in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702). (C) Secretary.--The term ``Secretary'' means the Secretary of the Interior. (2) Bureau staffing and personnel.--As soon as practicable after the date of enactment of this Act, using funds previously appropriated to the Secretary for such purposes, the Secretary shall-- (A) increase staffing necessary to sustain the health, diversity, and productivity of public lands to meet the needs of present and future generations; and (B) reinstate any individuals who were involuntarily removed or otherwise terminated from employment with the Bureau during the period beginning on January 20, 2025, and ending on the date of enactment of this Act. (3) Continuation of authorized bureau projects.--The Secretary shall have the authority to continue to carry out any Bureau project for which funds are authorized or appropriated under-- (A) the Federal Lands Recreation Enhancement Act (16 U.S.C. 6801 et seq.); (B) the Great American Outdoors Act (Public Law 116-152; 134 Stat. 682); (C) the Infrastructure Investment and Jobs Act (Public Law 117-58; 135 Stat. 429); or (D) Public Law 117-169 (commonly known as the ``Inflation Reduction Act of 2022'') (136 Stat. 1818). ______ SA 2534. Mr. WELCH submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. SURVEYS AND REPORTS ON FARMLAND OWNERSHIP, TENURE, AND TRANSITION. (a) In General.--Not later than 1 year after the date of enactment of this Act, the Secretary of Agriculture shall develop surveys, collect information, and, not less frequently than once every 3 years, report regionally segmented statistical and economic analyses of data and trends in farmland ownership, tenure, and transition. (b) Survey Requirements.--Surveys designed to carry out this section shall, at a minimum, include questions concerning-- (1) owners of farmland that-- (A) are not operators on the farm; and (B) lease land on the farm to operators on the farm; (2) owners of farmland that-- (A) are operators on the farm; and (B) lease land on the farm to other operators on the farm; (3) all farmland leased by-- (A) owners described in paragraph (1); and (B) owners described in paragraph (2); (4) all farmland, including land owned by operators on farms that do not lease land on the farm; (5) primary motivations among owners of farmland that are not operators on the farm for purchasing the farmland; and (6) the extent to which there are farms and ranches on farmland and ranchland, respectively, with undivided interests and no identified administrative authority. ______ SA 2535. Mr. WELCH submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 10106. Strike section 10301 and insert the following: SEC. 10301. REFERENCE PRICE. Section 1111(19) of the Agricultural Act of 2014 (7 U.S.C. 9011(19)) is amended-- (1) by redesignating subparagraphs (A) through (O) as clauses (i) through (xv), respectively, and indenting appropriately; (2) in the matter preceding clause (i) (as so redesignated), by striking ``The term'' and inserting the following: ``(A) In general.--Subject to subparagraph (B), the term''; and (3) by adding at the end the following: ``(B) Effectiveness.--Effective beginning with the 2025 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price defined in that subparagraph multiplied by 1.05.''. ______ SA 2536. Mr. WELCH submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 3(u) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(u)) (as amended by section 10101(a)), strike paragraph (3) and insert the following: ``(3) Allowable cost adjustments.--The Secretary-- ``(A) shall-- ``(i) make cost adjustments in the thrifty food plan for Hawaii and the urban and rural parts of Alaska to reflect the cost of food in Hawaii and urban and rural Alaska; ``(ii) make cost adjustments in the separate thrifty food plans for Guam and the Virgin Islands of the United States to reflect the cost of food in those States, but not to exceed the cost of food in the 50 States and the District of Columbia; and ``(iii) on October 1, 2025, and on each October 1 thereafter, adjust the cost of the thrifty food plan to reflect changes in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor, for the most recent 12-month period ending in June; and ``(B) may make yearly cost adjustments to the thrifty food plan to reflect the cost of food in cities, counties, or regions where in the most recent year the cost of food at [[Page S4005]] home is at least 10 percent higher than the average cost of food at home based on the Consumer Price Index for All Urban Consumers. Strike section 10301 and insert the following: SEC. 10301. REFERENCE PRICE. Section 1111(19) of the Agricultural Act of 2014 (7 U.S.C. 9011(19)) is amended-- (1) by redesignating subparagraphs (A) through (O) as clauses (i) through (xv), respectively, and indenting appropriately; (2) in the matter preceding clause (i) (as so redesignated), by striking ``The term'' and inserting the following: ``(A) In general.--Subject to subparagraph (B), the term''; and (3) by adding at the end the following: ``(B) Effectiveness.--Effective beginning with the 2025 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price defined in that subparagraph multiplied by 1.05.''. ______ SA 2537. Mr. WELCH submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 3(u) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(u)) (as amended by section 10101(a)), strike paragraph (2) and insert the following: ``(2) Household adjustments.--The Secretary shall make household adjustments using the following ratios of household size as a percentage of the maximum 4-person allotment: ``(A) For a 1-person household, at least 30 percent. ``(B) For a 2-person household, at least 55 percent. ``(C) For a 3-person household, at least 79 percent. ``(D) For a 4-person household, at least 100 percent. ``(E) For a 5-person household, at least 119 percent. ``(F) For a 6-person household, at least 143 percent. ``(G) For a 7-person household, at least 158 percent. ``(H) For an 8-person household, at least 180 percent. ``(I) For a household of 9 persons or more, an additional 22 percent per person. Strike section 10301 and insert the following: SEC. 10301. REFERENCE PRICE. Section 1111(19) of the Agricultural Act of 2014 (7 U.S.C. 9011(19)) is amended-- (1) by redesignating subparagraphs (A) through (O) as clauses (i) through (xv), respectively, and indenting appropriately; (2) in the matter preceding clause (i) (as so redesignated), by striking ``The term'' and inserting the following: ``(A) In general.--Subject to subparagraph (B), the term''; and (3) by adding at the end the following: ``(B) Effectiveness.--Effective beginning with the 2025 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price defined in that subparagraph multiplied by 1.1.''. ______ SA 2538. Mr. WELCH submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70106 and insert the following: SEC. 70106. EXTENSION AND ENHANCEMENT OF INCREASED ESTATE AND GIFT TAX EXEMPTION AMOUNTS. (a) In General.--Section 2010(c)(3) is amended-- (1) in subparagraph (A) by striking ``$5,000,000'' and inserting ``$15,000,000 (or, in the case of a decedent whose income for the preceding taxable year was greater than $100,000,000, $5,000,000)'', (2) in subparagraph (B)-- (A) in the matter preceding clause (i), by striking ``2011'' and inserting ``2026'', and (B) in clause (ii), by striking ``calendar year 2010'' and inserting ``calendar year 2025'', and (3) by striking subparagraph (C). (b) Effective Date.--The amendments made by this section shall apply to estates of decedents dying and gifts made after December 31, 2025. ______ SA 2539. Mr. WELCH submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike sections 10201 and 10301 and insert the following: SEC. 10301. REFERENCE PRICE. Section 1111(19) of the Agricultural Act of 2014 (7 U.S.C. 9011(19)) is amended-- (1) by redesignating subparagraphs (A) through (O) as clauses (i) through (xv), respectively, and indenting appropriately; (2) in the matter preceding clause (i) (as so redesignated), by striking ``The term'' and inserting the following: ``(A) In general.--Subject to subparagraph (B), the term''; and (3) by adding at the end the following: ``(B) Effectiveness.--Effective beginning with the 2025 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price defined in that subparagraph multiplied by 1.05.''. ______ SA 2540. Mr. MULLIN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. LIMITATION ON DRAWBACK OF TAXES PAID WITH RESPECT TO SUBSTITUTED MERCHANDISE. Effective for claims filed on or after July 1, 2026, for purposes of drawback of internal revenue tax imposed under chapter 52 of the Internal Revenue Code of 1986, the amount of drawback granted under such Code, or the Tariff Act of 1930, on the export or destruction of substituted merchandise may not exceed the amount of taxes paid (and not returned by refund, credit, or drawback) on the substituted merchandise. ______ SA 2541. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. LIMITATION OF TAX BENEFITS TO ELIGIBLE ALIENS. (a) Deduction for Seniors.--Section 151(d)(5)(C), as added by this Act, is amended by adding at the end the following new clause: ``(vi) Deduction permitted only for certain individuals.-- In the case of an individual who is an alien, such individual shall be treated as a qualified individual only if such individual is an eligible alien (as defined in section 36B(e)(2)(B), without regard to clause (ii) thereof).''. (b) Child Tax Credit.--Section 24(h), as amended by this Act, is further amended-- (1) by striking ``or, in the case of a joint return, the social security number of at least 1 spouse'' in paragraph (7)(A)(i) and inserting ``the social security numbers of both spouses, in the case of a joint return'', and (2) by adding at the end the following new paragraph: ``(8) Credit permitted only for certain individuals.--In the case of a taxpayer who is an alien, no credit shall be allowed under this section unless the taxpayer is an eligible alien (as defined in section 36B(e)(2)(B), without regard to clause (ii) thereof).''. (c) No Tax on Tips.--Section 224, as added by this Act, is amended by redesignating subsections (g) and (h) as subsections (h) and (i), respectively, and by inserting after subsection (f) the following new subsection: ``(g) Deduction Permitted Only for Certain Individuals.--In the case of an individual who is an alien, no deduction shall be allowed under this section unless such individual is an eligible alien (as defined in section 36B(e)(2)(B), without regard to clause (ii) thereof).''. (d) No Tax on Overtime.--Section 225, as added by this Act, is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection: ``(f) Deduction Permitted Only for Certain Individuals.--In the case of an individual who is an alien, no deduction shall be allowed under this section unless such individual is an eligible alien (as defined in section 36B(e)(2)(B), without regard to clause (ii) thereof).''. (e) No Tax on Car Loan Interest.--Section 163(h)(4)(E), as added by this Act, is amended by adding at the end the following new clause: ``(iv) Exclusion permitted only for certain individuals.-- In the case of a taxpayer who is an alien, subparagraph (A) shall not apply unless the taxpayer is an eligible alien (as defined in section 36B(e)(2)(B), without regard to clause (ii) thereof).''. (f) American Opportunity and Lifetime Learning Credits.-- Section 25A(g) is amended by adding at the end the following new paragraph: ``(9) Credit permitted only for certain individuals.--In the case of a taxpayer who is an alien, this section shall apply only if the taxpayer is an eligible alien (as defined in section 36B(e)(2)(B), without regard to clause (ii) thereof).''. (g) Earned Income Credit.--Section 32(c)(1) is amended by adding at the end the following new subparagraph: ``(F) Credit permitted only for certain individuals.--In the case of an individual who is an alien, such individual shall be treated as an eligible individual only if such individual is an eligible alien (as defined in section 36B(e)(2)(B), without regard to clause (ii) thereof).''. [[Page S4006]] (h) Trump Accounts Contribution Pilot Program.--Section 6434, as added by this Act, is amended by adding at the end the following new subsection: ``(j) Credit Permitted Only for Certain Individuals.--In the case of a taxpayer who is an alien, no credit shall be allowed under this section unless the taxpayer is an eligible alien (as defined in section 36B(e)(2)(B), without regard to clause (ii) thereof).''. (i) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2026. ______ SA 2542. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70120 and insert the following: SEC. 70120. PERMANENT EXTENSION OF LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE AND LOCAL TAXES. Section 164(b)(6) is amended by striking ``, and before January 1, 2026''. ______ SA 2543. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 72001, strike ``$5,000,000,000,000'' and insert ``$2,000,000,000,000''. ______ SA 2544. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70604. ______ SA 2545. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title VII, insert the following: SEC. __. LIMITATION ON DRAWBACK OF TAXES PAID WITH RESPECT TO SUBSTITUTED MERCHANDISE. Effective for claims filed on or after July 1, 2026, for purposes of drawback of internal revenue tax imposed under chapter 52 of the Internal Revenue Code of 1986, the amount of drawback granted under such Code, or the Tariff Act of 1930, on the export or destruction of substituted merchandise may not exceed the amount of taxes paid (and not returned by refund, credit, or drawback) on the substituted merchandise. ______ SA 2546. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title VIII, insert the following: SEC. __. STUDENT ELIGIBILITY. (a) In General.--Section 484(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1091(a)(5)) is amended to read as follows: ``(5) be-- ``(A) a citizen or national of the United States; ``(B) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.); ``(C) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96-422); or ``(D) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G)); and''. (b) Effective Date and Application.--The amendment made by subsection (a) shall take effect on July 1, 2026, and shall apply with respect to award year 2026-2027 and each subsequent award year, as determined under the Higher Education Act of 1965. ______ SA 2547. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title VIII, insert the following: SEC. __. STUDENT ELIGIBILITY. (a) In General.--Section 484(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1091(a)(5)) is amended to read as follows: ``(5) be-- ``(A) a citizen or national of the United States; ``(B) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.); or ``(C) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G)); and''. (b) Effective Date and Application.--The amendment made by subsection (a) shall take effect on July 1, 2026, and shall apply with respect to award year 2026-2027 and each subsequent award year, as determined under the Higher Education Act of 1965. ______ SA 2548. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 722, strike line 5 and all that follows through line 20, and insert the following: ``(i) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.); or ``(ii) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G)).''. ______ SA 2549. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 646, strike line 7 and all that follows through line 24, and insert the following: ``(ii) an alien lawfully admitted for permanent residence as an immigrant as defined by sections 101(a)(15) and 101(a)(20) of the Immigration and Nationality Act, excluding, among others, alien visitors, tourists, diplomats, and students who enter the United States temporarily with no intention of abandoning their residence in a foreign country; or ``(iii) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.''. ______ SA 2550. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Beginning on page 715, strike line 22 and all that follows through page 716, line 9, and insert the following: ``(2) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act; or ``(3) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. ______ SA 2551. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 28, strike lines 14 through 20 and insert the following: residence in a foreign country; or ``(C) an individual who lawfully resides in ______ SA 2552. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. INDIVIDUALS ENTITLED TO PART A OF MEDICARE BY REASON OF AGE ALLOWED TO CONTRIBUTE TO HEALTH SAVINGS ACCOUNTS. (a) In General.--Section 223(c)(1)(B) is amended by striking ``and'' at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ``, and'', and by adding at the end the following new clause: ``(iv) entitlement to hospital insurance benefits under part A of title XVIII of the [[Page S4007]] Social Security Act by reason of section 226(a) of such Act.''. (b) Treatment of Health Insurance Purchased From Account.-- Section 223(d)(2)(C)(iv) is amended by inserting ``and who is not an eligible individual'' after ``who has attained the age specified in section 1811 of the Social Security Act''. (c) Coordination With Penalty on Distributions Not Used for Qualified Medical Expenses.--Section 223(f)(4)(C) is amended by striking ``Subparagraph (A)'' and inserting ``Except in the case of an eligible individual, subparagraph (A)'' (d) Conforming Amendment.--Section 223(b)(7) is amended by inserting ``(other than an entitlement to benefits described in subsection (c)(1)(B)(iv))'' after ``Social Security Act''. (e) Effective Date.--The amendments made by this section shall apply to months beginning after December 31, 2025. ______ SA 2553. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 937 strike lines 4 through 11. ______ SA 2554. Mr. SCOTT of Florida (for himself, Mr. Crapo, Mr. Johnson, Mr. Lee, and Ms. Lummis) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. GRANDFATHERING OF MEDICAID EXPANSION AND UNIFYING FMAP FOR EXPANSION STATES. (a) In General.--Title XIX of the Social Security Act (42 U.S.C. 1396 et seq.), as amended by section 71121(a), is amended-- (1) in section 1902 (42 U.S.C. 1396a)-- (A) in subsection (a)(10)(A)-- (i) in clause (i)(VIII), by inserting ``and ending December 31, 2030,'' after ``2014,''; (ii) in clause (ii)(XX), by inserting ``and ending December 31, 2030,'' after ``2014,''; and (iii) in clause (ii), by adding at the end the following new subclause: ``(XXIV) beginning January 1, 2031-- ``(aa) who are expansion enrollees (as defined in subsection (yy)(1)); or ``(bb) who are grandfathered expansion enrollees (as defined in subsection (yy)(2));''; and (B) by adding at the end the following new subsection: ``(yy) Expansion Enrollees.--For purposes of this subsection: ``(1) Expansion enrollee.--The term `expansion enrollee' means an individual-- ``(A) who is under 65 years of age; ``(B) who is not pregnant; ``(C) who is not entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII; ``(D) who is not described in any of subclauses (I) through (VII) of subsection (a)(10)(A)(i); and ``(E) whose income (as determined under subsection (e)(14)) does not exceed 133 percent of the poverty line (as defined in section 2110(c)(5)) applicable to a family of the size involved. ``(2) Grandfathered expansion enrollees.--The term `grandfathered expansion enrollee' means an expansion enrollee who-- ``(A) was enrolled under the State plan under this title (or under a waiver of such plan) as of December 31, 2030; and ``(B) does not have a break in eligibility for medical assistance under such State plan (or waiver) for more than one month after such date. ``(3) Application of related provisions.--Any reference in subsection (a)(10)(G), (k), or (gg) of this section or in section 1903, 1905(a), 1920(e), or 1937(a)(1)(B) to individuals described in subclause (VIII) of subsection (a)(10)(A)(i) shall be deemed to include a reference to expansion enrollees (including grandfathered expansion enrollees).''; and (2) in section 1905(y)(1) (42 U.S.C. 1396d(y)(1)), in the matter preceding subparagraph (A)-- (A) by inserting ``and that has elected to cover newly eligible individuals before January 1, 2031'' after ``that is one of the 50 States or the District of Columbia''; and (B) by inserting after ``subclause (VIII) of section 1902(a)(10)(A)(i)'' the following: ``who, for periods after December 31, 2030, are grandfathered expansion enrollees (as defined in section 1902(yy)(2))''. ______ SA 2555. Mr. WARNER (for himself, Mr. Kaine, Mr. Van Hollen, and Ms. Alsobrooks) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section 40007, insert the following: SEC. 40007A. USE OF REVENUES FROM LEASE PAYMENTS FROM METROPOLITAN WASHINGTON AIRPORTS FOR AVIATION SAFETY IMPROVEMENTS AND OTHER PURPOSES. (a) In General.--Section 49104(b) of title 49, United States Code, as amended by section 40007, is amended by striking paragraph (2) and inserting the following new paragraph: ``(2) Funding for aviation safety improvements.-- ``(A) In general.--In order to carry out the purposes described in subparagraph (B), in addition to amounts otherwise made available, there is appropriated to the Secretary of Transportation, out of any money in the Treasury not otherwise appropriated for fiscal year 2025, $63,000,000, to remain available until September 30, 2029. ``(B) Purposes described.--The purposes described in this subparagraph are the following: ``(i) To implement preliminary and final recommendations on any safety measures directed by the National Transportation Safety Board and the Secretary relating to the tragic mid-air collision between American Airlines Flight 5342 and United States Army Aviation Brigade Priority Air Transport 25 on January 29, 2025. ``(ii) To establish a permanent memorial for victims of such tragic mid-air collision and to provide for maintenance of such memorial. ``(iii) Subject to subparagraph (C), to undertake projects directly related to the safety and security of airports under the jurisdiction of the Airports Authority. ``(C) Requirements.--In undertaking the projects under subparagraph (B)(iii), the Secretary, working with the Airports Authority, shall prioritize projects that improve safety for all current flight service located at Ronald Reagan Washington Airport, including non-stop Part 121 flight service between Ronald Reagan Washington Airport and the airports primarily serving the following localities: ``(i) Birmingham, AL. ``(ii) Huntsville, AL. ``(iii) Montgomery, AL. ``(iv) Fayetteville, AR. ``(v) Little Rock, AR. ``(vi) Daytona Beach, FL. ``(vii) Orlando, FL. ``(viii) Panama City, FL. ``(ix) Pensacola, FL. ``(x) Sarasota, FL. ``(xi) Tallahassee, FL. ``(xii) Tampa, FL. ``(xiii) West Palm Beach, FL. ``(xiv) Fort Lauderdale, FL. ``(xv) Fort Myers, FL. ``(xvi) Fort Walton, FL. ``(xvii) Jacksonville, FL. ``(xviii) Key West, FL. ``(xix) Miami, FL. ``(xx) Cedar Rapids, IA. ``(xxi) Des Moines, IA. ``(xxii) Indianapolis, IN. ``(xxiii) Wichita, KS. ``(xxiv) Lexington, KY. ``(xxv) Louisville, KY. ``(xxvi) Baton Rouge, LA. ``(xxvii) New Orleans, LA. ``(xxviii) Bangor, ME. ``(xxix) Portland, ME. ``(xxx) Grand Rapids, MI. ``(xxxi) Lansing, MI. ``(xxxii) Traverse City, MI. ``(xxxiii) Kansas City, MO. ``(xxxiv) St. Louis, MO. ``(xxxv) Jackson, MS. ``(xxxvi) Omaha, NE. ``(xxxvii) Asheville, NC. ``(xxxviii) Charlotte, NC. ``(xxxix) Greensboro, NC. ``(xl) Raleigh, NC. ``(xli) Wilmington, NC. ``(xlii) Newark, NJ. ``(xliii) Akron/Canton, OH. ``(xliv) Cincinnati, OH. ``(xlv) Cleveland, OH. ``(xlvi) Columbus, OH. ``(xlvii) Dayton, OH. ``(xlviii) Oklahoma City, OK. ``(xlix) Tulsa, OK. ``(l) Philadelphia, PA. ``(li) Pittsburgh, PA. ``(lii) Providence, RI. ``(liii) Charleston, SC. ``(liv) Columbia, SC. ``(lv) Greenville, SC. ``(lvi) Hilton Head Island, SC. ``(lvii) Myrtle Beach, SC. ``(lviii) Memphis, TN. ``(lix) Chattanooga, TN. ``(lx) Knoxville, TN. ``(lxi) Nashville, TN. ``(lxii) Austin, TX. ``(lxiii) Dallas/Ft. Worth, TX. ``(lxiv) Dallas-Love Field, TX. ``(lxv) Houston-Bush, TX. ``(lxvi) Houston-Hobby, TX. ``(lxvii) Salt Lake City, UT. ``(lxviii) Norfolk, VA. ``(lxix) Burlington, VT. ``(lxx) Seattle, WA. ``(lxxi) Madison, WI. ``(lxxii) Milwaukee, WI. ``(lxxiii) Charleston, WV.''. (b) Reduction in AI Funding.--Paragraph (5) of section 60102(b) of division F of Public Law 117-58 (47 U.S.C. 1702), as added by section 40012, is amended by striking ``$500,000,000'' and inserting ``$437,000,000''. ______ SA 2556. Mr. WARNER submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill [[Page S4008]] H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 40012 and insert the following: SEC. 40012. PRESERVATION OF THE PUBLIC WIRELESS SUPPLY CHAIN INNOVATION FUND TRUST FUND TO SUPPORT AMERICAN COMPETITIVENESS AND COUNTER CHINESE COMMUNIST PARTY INFLUENCE. (a) Appropriation.-- In addition to amounts otherwise available, there is appropriated to the Secretary of Commerce for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2029, to carry out the activities authorized by section 9202(a)(1) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (47 U.S.C. 906(a)(1)). (b) Reductions in Other Appropriations.--Notwithstanding section 20306(a) of title 51, United States Code, as added by section 40005(a)-- (1) the amount appropriated under such section 20306(a), in the matter preceding paragraph (1), shall be $9,645,000,000; (2) the amount made available under paragraph (6) of such section 20306(a), in the matter preceding subparagraph (A), shall be $650,000,000; (3) the amount required to be obligated under paragraph (6)(A) of such section 20306(a) shall be $46,000,000; (4) the amount required to be obligated under paragraph (6)(B) of such section 20306(a) shall be $50,000,000; and (5) the amount required to be obligated under paragraph (6)(C) of such section 20306(a) shall be $24,000,000. ______ SA 2557. Mr. KING (for himself, Mr. Wyden, Mr. Schatz, Mr. Hickenlooper, and Ms. Hirono) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 50305. ______ SA 2558. Mr. KING submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 71117. ______ SA 2559. Mr. KING submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 1181(10)(C) of title 14, United States Code (as added by section __0001(a)), strike ``$2,729,500,000'' and insert ``$1,729,500,000''. In section 1181(10)(C) of title 14, United States Code (as added by section __0001(a)), strike ``; and''. In section 1181(10)(D) of title 14, United States Code (as added by section __0001(a)), insert ``and'' after the semicolon. In section 1181(10) of title 14, United States Code (as added by section __0001(a)), add at the end the following: ``(E) $1,000,000,000 is provided for Coast Guard Small Boat Stations conducting search and rescue and other Coast Guard missions; ______ SA 2560. Mrs. SHAHEEN submitted an amendment intended to be proposed by her to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. BUREAU OF PRISONS RETENTION INCENTIVE FUNDING. Of the amounts appropriated to the Bureau of Prisons for staffing and recruitment, there is appropriated to the Director of the Bureau of Prisons for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, amounts necessary for the continuation of retention incentives and bonuses for facilities that received such retention incentives and bonuses prior to March 2025. ______ SA 2561. Mrs. SHAHEEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70523 and insert the following: SEC. __. REQUIREMENTS WITH RESPECT TO COST-SHARING FOR CERTAIN INSULIN PRODUCTS. (a) In General.--Part D of title XXVII of the Public Health Service Act (42 U.S.C. 300gg-111 et seq.) is amended by adding at the end the following: ``SEC. 2799A-11. REQUIREMENTS WITH RESPECT TO COST-SHARING FOR CERTAIN INSULIN PRODUCTS. ``(a) In General.--For plan years beginning on or after January 1, 2026, a group health plan or health insurance issuer offering group or individual health insurance coverage shall provide coverage of selected insulin products, and with respect to such products, shall not-- ``(1) apply any deductible; or ``(2) impose any cost-sharing requirements in excess of, per 30-day supply-- ``(A) for any applicable plan year beginning before January 1, 2027, $35; or ``(B) for any plan year beginning on or after January 1, 2027, the lesser of-- ``(i) $35; or ``(ii) the amount equal to 25 percent of the negotiated price of the selected insulin product net of all price concessions received by or on behalf of the plan or issuer, including price concessions received by or on behalf of third-party entities providing services to the plan or issuer, such as pharmacy benefit management services or third party administrators. ``(b) Definitions.--In this section: ``(1) Selected insulin products.--The term `selected insulin products' means, for any plan year beginning on or after January 1, 2026, at least one of each dosage form (such as vial, pen, or inhaler dosage forms) of each different type (such as rapid-acting, short-acting, intermediate-acting, long-acting, and pre-mixed) of insulin, when such form is licensed and marketed, as selected by the group health plan or health insurance issuer. ``(2) Insulin.--The term `insulin' means insulin that is licensed under subsection (a) or (k) of section 351 and continues to be marketed pursuant to such licensure. ``(c) Out-of-Network Providers.--Nothing in this section requires a plan or issuer that has a network of providers to provide benefits for selected insulin products described in this section that are delivered by an out-of-network provider, or precludes a plan or issuer that has a network of providers from imposing higher cost-sharing than the levels specified in subsection (a) for selected insulin products described in this section that are delivered by an out-of- network provider. ``(d) Rule of Construction.--Subsection (a) shall not be construed to require coverage of, or prevent a group health plan or health insurance coverage from imposing cost-sharing other than the levels specified in subsection (a) on, insulin products that are not selected insulin products, to the extent that such coverage is not otherwise required and such cost-sharing is otherwise permitted under Federal and applicable State law. ``(e) Application of Cost-Sharing Towards Deductibles and Out-of-Pocket Maximums.--Any cost-sharing payments made pursuant to subsection (a)(2) shall be counted toward any deductible or out-of-pocket maximum that applies under the plan or coverage. ``(f) Other Requirements.--A group health plan or health insurance issuer offering group or individual health insurance coverage shall not impose, directly or through an entity providing pharmacy benefit management services, any prior authorization or other medical management requirement, or other similar conditions, on selected insulin products, except as clinically justified for safety reasons, to ensure reasonable quantity limits and as specified by the Secretary.''. (b) No Effect on Other Cost-Sharing.--Section 1302(d)(2) of the Patient Protection and Affordable Care Act (42 U.S.C. 18022(d)(2)) is amended by adding at the end the following new subparagraph: ``(D) Special rule relating to insulin coverage.--For plans years beginning on or after January 1, 2027, the exemption of coverage of selected insulin products (as defined in section 2799A-11(b) of the Public Health Service Act) from the application of any deductible pursuant to section 2799A- 11(a)(1) of such Act, section 726(a)(1) of the Employee Retirement Income Security Act of 1974, or section 9826(a)(1) of the Internal Revenue Code of 1986 shall not be considered when determining the actuarial value of a qualified health plan under this subsection.''. (c) Coverage of Certain Insulin Products Under Catastrophic Plans.--Section 1302(e) of the Patient Protection and Affordable Care Act (42 U.S.C. 18022(e)) is amended by adding at the end the following: ``(4) Coverage of certain insulin products.-- ``(A) In general.--Notwithstanding paragraph (1)(B)(i), a health plan described in paragraph (1) shall provide coverage of selected insulin products, in accordance with section 2799A-11 of the Public Health Service Act, before an enrolled individual has incurred, during the plan year, cost-sharing expenses in an amount equal to the annual limitation in effect under subsection (c)(1) for the plan year. ``(B) Terminology.--For purposes of subparagraph (A)-- ``(i) the term `selected insulin products' has the meaning given such term in section 2799A-11(b) of the Public Health Service Act; and ``(ii) the requirements of section 2799A-11 of such Act shall be applied by deeming each reference in such section to `individual health insurance coverage' to be a reference to a plan described in paragraph (1).''. (d) ERISA.-- (1) In general.--Subpart B of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1185 et [[Page S4009]] seq.) is amended by adding at the end the following: ``SEC. 726. REQUIREMENTS WITH RESPECT TO COST-SHARING FOR CERTAIN INSULIN PRODUCTS. ``(a) In General.--For plan years beginning on or after January 1, 2026, a group health plan or health insurance issuer offering group health insurance coverage shall provide coverage of selected insulin products, and with respect to such products, shall not-- ``(1) apply any deductible; or ``(2) impose any cost-sharing requirements in excess of, per 30-day supply-- ``(A) for any applicable plan year beginning before January 1, 2027, $35; or ``(B) for any plan year beginning on or after January 1, 2027, the lesser of-- ``(i) $35; or ``(ii) the amount equal to 25 percent of the negotiated price of the selected insulin product net of all price concessions received by or on behalf of the plan or issuer, including price concessions received by or on behalf of third-party entities providing services to the plan or issuer, such as pharmacy benefit management services or third party administrators. ``(b) Definitions.--In this section: ``(1) Selected insulin products.--The term `selected insulin products' means, for any plan year beginning on or after January 1, 2026, at least one of each dosage form (such as vial, pen, or inhaler dosage forms) of each different type (such as rapid-acting, short-acting, intermediate-acting, long-acting, and pre-mixed) of insulin, when such form is licensed and marketed, as selected by the group health plan or health insurance issuer. ``(2) Insulin.--The term `insulin' means insulin that is licensed under subsection (a) or (k) of section 351 of the Public Health Service Act (42 U.S.C. 262) and continues to be marketed pursuant to such licensure. ``(c) Out-of-Network Providers.--Nothing in this section requires a plan or issuer that has a network of providers to provide benefits for selected insulin products described in this section that are delivered by an out-of-network provider, or precludes a plan or issuer that has a network of providers from imposing higher cost-sharing than the levels specified in subsection (a) for selected insulin products described in this section that are delivered by an out-of- network provider. ``(d) Rule of Construction.--Subsection (a) shall not be construed to require coverage of, or prevent a group health plan or health insurance coverage from imposing cost-sharing other than the levels specified in subsection (a) on, insulin products that are not selected insulin products, to the extent that such coverage is not otherwise required and such cost-sharing is otherwise permitted under Federal and applicable State law. ``(e) Application of Cost-Sharing Towards Deductibles and Out-of-Pocket Maximums.--Any cost-sharing payments made pursuant to subsection (a)(2) shall be counted toward any deductible or out-of-pocket maximum that applies under the plan or coverage. ``(f) Other Requirements.--A group health plan or health insurance issuer offering group health insurance coverage shall not impose, directly or through an entity providing pharmacy benefit management services, any prior authorization or other medical management requirement, or other similar conditions, on selected insulin products, except as clinically justified for safety reasons, to ensure reasonable quantity limits and as specified by the Secretary.''. (2) Clerical amendment.--The table of contents in section 1 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.) is amended by inserting after the item relating to section 725 the following: ``Sec. 726. Requirements with respect to cost-sharing for certain insulin products.''. (e) Internal Revenue Code.-- (1) In general.--Subchapter B of chapter 100 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: ``SEC. 9826. REQUIREMENTS WITH RESPECT TO COST-SHARING FOR CERTAIN INSULIN PRODUCTS. ``(a) In General.--For plan years beginning on or after January 1, 2026, a group health plan shall provide coverage of selected insulin products, and with respect to such products, shall not-- ``(1) apply any deductible; or ``(2) impose any cost-sharing requirements in excess of, per 30-day supply-- ``(A) for any applicable plan year beginning before January 1, 2027, $35; or ``(B) for any plan year beginning on or after January 1, 2027, the lesser of-- ``(i) $35; or ``(ii) the amount equal to 25 percent of the negotiated price of the selected insulin product net of all price concessions received by or on behalf of the plan, including price concessions received by or on behalf of third-party entities providing services to the plan, such as pharmacy benefit management services or third party administrators. ``(b) Definitions.--In this section: ``(1) Selected insulin products.--The term `selected insulin products' means, for any plan year beginning on or after January 1, 2026, at least one of each dosage form (such as vial, pen, or inhaler dosage forms) of each different type (such as rapid-acting, short-acting, intermediate-acting, long-acting, and pre-mixed) of insulin, when such form is licensed and marketed, as selected by the group health plan. ``(2) Insulin.--The term `insulin' means insulin that is licensed under subsection (a) or (k) of section 351 of the Public Health Service Act (42 U.S.C. 262) and continues to be marketed pursuant to such licensure. ``(c) Out-of-Network Providers.--Nothing in this section requires a plan that has a network of providers to provide benefits for selected insulin products described in this section that are delivered by an out-of-network provider, or precludes a plan that has a network of providers from imposing higher cost-sharing than the levels specified in subsection (a) for selected insulin products described in this section that are delivered by an out-of-network provider. ``(d) Rule of Construction.--Subsection (a) shall not be construed to require coverage of, or prevent a group health plan from imposing cost-sharing other than the levels specified in subsection (a) on, insulin products that are not selected insulin products, to the extent that such coverage is not otherwise required and such cost-sharing is otherwise permitted under Federal and applicable State law. ``(e) Application of Cost-Sharing Towards Deductibles and Out-of-Pocket Maximums.--Any cost-sharing payments made pursuant to subsection (a)(2) shall be counted toward any deductible or out-of-pocket maximum that applies under the plan. ``(f) Other Requirements.--A group health plan shall not impose, directly or through an entity providing pharmacy benefit management services, any prior authorization or other medical management requirement, or other similar conditions, on selected insulin products, except as clinically justified for safety reasons, to ensure reasonable quantity limits and as specified by the Secretary''. (2) Clerical amendment.--The table of sections for subchapter B of chapter 100 of such Code, as amended by this Act, is further amended by adding at the end the following new item: ``Sec. 9827. Requirements with respect to cost-sharing for certain insulin products.''. SEC. __. APPLICATION TO RETIREE AND CERTAIN SMALL GROUP PLANS. (a) ERISA.--Section 732(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1191a(a)) is amended by striking ``section 711'' and inserting ``sections 711 and 726''. (b) IRC.--The Internal Revenue Code of 1986 is amended-- (1) in section 9831(a), by adding at the end the following flush text: ``Paragraph (2) shall not apply to the requirements under sections 9811 and 9826.''; and (2) in section 4980D(d)(1), by striking ``section 9811'' and inserting ``sections 9811 and 9826''. SEC. ___. ADMINISTRATION. (a) Implementation.--Notwithstanding any other provision of law, the Secretary of Health and Human Services, the Secretary of Labor, and the Secretary of the Treasury may implement the provisions of, including the amendments made by, this title for plan years that begin on or after January 1, 2026, and end not later than January 1, 2029, by subregulatory guidance, program instruction, or otherwise. (b) Non-Application of the Paperwork Reduction Act.-- Chapter 35 of title 44, United States Code (commonly referred to as the ``Paperwork Reduction Act of 1995''), shall not apply to the provisions of, including the amendments made by, this title. SEC. ___. FULL REBATE ON INSULIN PASS-THROUGH TO PLAN. Part A of title XXVII of the Public Health Service Act (42 U.S.C. 300gg et seq.) is further amended by adding at the end the following: ``SEC. 2729A. FULL REBATE ON INSULIN PASS-THROUGH TO PLAN. ``(a) In General.--A pharmacy benefits manager, a third- party administrator of a group health plan, a health insurance issuer offering group health insurance coverage, or an entity providing pharmacy benefits management services under such health plan or health insurance coverage shall remit 100 percent of rebates, fees, alternative discounts, and all other remuneration received from a pharmaceutical manufacturer, distributor or any other third party, that are related to utilization of insulin under such health plan or health insurance coverage, to the group health plan. ``(b) Form and Manner of Remittance.--Such rebates, fees, alternative discounts, and other remuneration shall be-- ``(1) remitted to the group health plan in a timely fashion after the period for which such rebates, fees, or other remuneration is calculated, and in no case later than 90 days after the end of such period; ``(2) fully disclosed and enumerated to the group health plan sponsor; and ``(3) available for audit by the plan sponsor, or a third- party designated by a plan sponsor no less than once per plan year.''. SEC. __. ENSURING TIMELY ACCESS TO GENERICS. Section 505(q) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(q)) is amended-- (1) in paragraph (1)-- (A) in subparagraph (A)(i), by inserting ``, 10.31,'' after ``10.30''; (B) in subparagraph (E)-- (i) by striking ``application and'' and inserting ``application or''; [[Page S4010]] (ii) by striking ``If the Secretary'' and inserting the following: ``(i) In general.--If the Secretary''; and (iii) by striking the second sentence and inserting the following: ``(ii) Primary purpose of delaying.-- ``(I) In general.--In determining whether a petition was submitted with the primary purpose of delaying an application, the Secretary may consider the following factors: ``(aa) Whether the petition was submitted in accordance with paragraph (2)(B), based on when the petitioner knew or reasonably should have known the relevant information relied upon to form the basis of such petition. ``(bb) Whether the petitioner has submitted multiple or serial petitions or supplements to petitions raising issues that reasonably could have been known to the petitioner at the time of submission of the earlier petition or petitions. ``(cc) Whether the petition was submitted close in time to a known, first date upon which an application under subsection (b)(2) or (j) of this section or section 351(k) of the Public Health Service Act could be approved. ``(dd) Whether the petition was submitted without relevant data or information in support of the scientific positions forming the basis of such petition. ``(ee) Whether the petition raises the same or substantially similar issues as a prior petition to which the Secretary has responded substantively already, including if the subsequent submission follows such response from the Secretary closely in time. ``(ff) Whether the petition requests changing the applicable standards that other applicants are required to meet, including requesting testing, data, or labeling standards that are more onerous or rigorous than the standards the Secretary has determined to be applicable to the listed drug, reference product, or petitioner's version of the same drug. ``(gg) The petitioner's record of submitting petitions to the Food and Drug Administration that have been determined by the Secretary to have been submitted with the primary purpose of delay. ``(hh) Other relevant and appropriate factors, which the Secretary shall describe in guidance. ``(II) Guidance.--The Secretary may issue or update guidance, as appropriate, to describe factors the Secretary considers in accordance with subclause (I).''; (C) by adding at the end the following: ``(iii) Referral to the federal trade commission.--The Secretary shall establish procedures for referring to the Federal Trade Commission any petition or supplement to a petition that the Secretary determines was submitted with the primary purpose of delaying approval of an application. Such procedures shall include notification to the petitioner by the Secretary.''; (D) by striking subparagraph (F); (E) by redesignating subparagraphs (G) through (I) as subparagraphs (F) through (H), respectively; and (F) in subparagraph (H), as so redesignated, by striking ``submission of this petition'' and inserting ``submission of this document''; (2) in paragraph (2)-- (A) by redesignating subparagraphs (A) through (C) as subparagraphs (C) through (E), respectively; (B) by inserting before subparagraph (C), as so redesignated, the following: ``(A) In general.--A person shall submit a petition to the Secretary under paragraph (1) before filing a civil action in which the person seeks to set aside, delay, rescind, withdraw, or prevent submission, review, or approval of an application submitted under subsection (b)(2) or (j) of this section or section 351(k) of the Public Health Service Act. Such petition and any supplement to such a petition shall describe all information and arguments that form the basis of the relief requested in any civil action described in the previous sentence. ``(B) Timely submission of citizen petition.--A petition and any supplement to a petition shall be submitted within 60 days after the person knew, or reasonably should have known, the information that forms the basis of the request made in the petition or supplement.''; (C) in subparagraph (C), as so redesignated-- (i) in the heading, by striking ``within 150 days''; (ii) in clause (i), by striking ``during the 150-day period referred to in paragraph (1)(F),''; and (iii) by amending clause (ii) to read as follows: ``(ii) on or after the date that is 151 days after the date of submission of the petition, the Secretary approves or has approved the application that is the subject of the petition without having made such a final decision.''; (D) by amending subparagraph (D), as so redesignated, to read as follows: ``(D) Dismissal of certain civil actions.-- ``(i) Petition.--If a person files a civil action against the Secretary in which a person seeks to set aside, delay, rescind, withdraw, or prevent submission, review, or approval of an application submitted under subsection (b)(2) or (j) of this section or section 351(k) of the Public Health Service Act without complying with the requirements of subparagraph (A), the court shall dismiss without prejudice the action for failure to exhaust administrative remedies. ``(ii) Timeliness.--If a person files a civil action against the Secretary in which a person seeks to set aside, delay, rescind, withdraw, or prevent submission, review, or approval of an application submitted under subsection (b)(2) or (j) of this section or section 351(k) of the Public Health Service Act without complying with the requirements of subparagraph (B), the court shall dismiss with prejudice the action for failure to timely file a petition. ``(iii) Final response.--If a civil action is filed against the Secretary with respect to any issue raised in a petition timely filed under paragraph (1) in which the petitioner requests that the Secretary take any form of action that could, if taken, set aside, delay, rescind, withdraw, or prevent submission, review, or approval of an application submitted under subsection (b)(2) or (j) of this section or section 351(k) of the Public Health Service Act before the Secretary has taken final agency action on the petition within the meaning of subparagraph (C), the court shall dismiss without prejudice the action for failure to exhaust administrative remedies.''; and (E) in clause (iii) of subparagraph (E), as so redesignated, by striking ``as defined under subparagraph (2)(A)'' and inserting ``within the meaning of subparagraph (C)''; and (3) in paragraph (4)-- (A) by striking ``Exceptions'' and all that follows through ``This subsection does'' and inserting ``Exceptions.--This subsection does''; (B) by striking subparagraph (B); and (C) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively, and adjusting the margins accordingly. SEC. __. EXPEDITING COMPETITIVE BIOSIMILAR COMPETITION. (a) In General.--Section 351(k) of the Public Health Service Act (42 U.S.C. 262(k)) is amended by adding at the end the following: ``(10) Expediting competitive biosimilar competition.-- ``(A) In general.--The Secretary may, at the request of the sponsor of an application under this subsection for a biosimilar biological product that is designated as a competitive biosimilar therapy pursuant to subsection (b), expedite the development and review of such application under this subsection. ``(B) Designation process.-- ``(i) Request.--The sponsor of an application under this subsection may request the Secretary to designate the drug as a competitive biosimilar therapy. A request for such designation may be made concurrently with, or at any time prior to, the submission of a biosimilar biological product license application under this subsection. ``(ii) Criteria.--A biological product is eligible for designation as a competitive biosimilar therapy under this paragraph if the Secretary determines that there is inadequate biosimilar competition. ``(iii) Designation.--Not later than 60 calendar days after the receipt of a request under clause (i), the Secretary may-- ``(I) determine whether the biosimilar biological product that is the subject of the request meets the criteria described in clause (ii); and ``(II) if the Secretary finds that such product meets such criteria, designate the biosimilar biological product as a competitive biosimilar therapy. ``(C) Actions.--In expediting the development and review of an application under subparagraph (A), the Secretary may, as requested by the applicant, take actions including the following: ``(i) Hold meetings with the sponsor and the review team throughout the development of the biosimilar biological product prior to submission of the application under this subsection. ``(ii) Provide timely advice to, and interactive communication with, the sponsor regarding the development of the drug to ensure that the development program to gather the data necessary for approval is as efficient as practicable. ``(iii) Involve senior managers and experienced review staff, as appropriate, in a collaborative, coordinated review of such application, including with respect to biological product-device combination products and other complex products. ``(iv) Assign a cross-disciplinary project lead-- ``(I) to facilitate an efficient review of the development program and application, including manufacturing inspections; and ``(II) to serve as a scientific liaison between the review team and the applicant. ``(D) Inspections.--With respect to an application described in subparagraph (A), in the case of an inspection report that finds approval of such biological product is dependent upon remediation of a facility, if the applicant attests that necessary changes have been made to the facility, the Secretary shall expedite reinspection of such facility, including establishing a set timeline to reinspect the facility or make a determination about the response of the applicant and whether to approve the application. ``(E) Reporting requirement.--Not later than 1 year after the date of licensure under this subsection with respect to a biosimilar biological product for which the development and review is expedited under this paragraph, the holder of the license of such biosimilar biological product shall report to the Secretary on whether the biosimilar biological product has been marketed in interstate commerce since the date of such licensure. ``(F) Inadequate biosimilar competition.--In this paragraph, the term `inadequate biosimilar competition' means, with [[Page S4011]] respect to a biological product, there are fewer than 3 licensed biological products on the list published under paragraph (9)(A) (not including biological products on the discontinued section of such list) that are biosimilar biological products with the same reference product.''. SEC. ___. INSULIN COMPETITION REPORT. Not later than 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services, in collaboration with the Administrator for the Centers for Medicare & Medicaid Services and the Commissioner of Food and Drugs, shall-- (1) complete a study to determine the extent of, and causes of, delays in getting insulin products to market, and the market dynamics and extent biosimilar biological product development and competition could increase, or is increasing, the number of biological products approved and available to patients, including by examining barriers to-- (A) placement of biosimilar biological products on health insurance formularies; (B) market entry of insulin product in the United States, as compared to other highly developed nations; and (C) patient and provider education around biosimilar biological products; and (2) submit a report to Congress that describes the results of the study conducted pursuant to paragraph (1) and recommended policy solutions. ______ SA 2562. Mrs. SHAHEEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 145, line 23, strike ``and''. On page 146, line 3, strike the semicolon and insert ``; and''. On page 146, between lines 3 and 4, insert the following: ``(E) $424,500,000 is provided for recapitalizing and repairing Coast Guard stations in States with not more than 1 Coast Guard stations, with priority given to facilities damaged by storms and those most in need of recapitalization. ______ SA 2563. Mrs. SHAHEEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title II, insert the following: SEC. __. PROHIBITION ON USE OF FUNDS TO REDUCE THE WORKFORCE AT PUBLIC SHIPYARDS. (a) In General.--None of the funds appropriated by this Act may be used to reduce the workforce at public shipyards, including probationary employees. (b) Exemption.--The workforce at public shipyards and any other positions at a public shipyard not specified in subsection (c) shall be exempt from any workforce reductions related to spending cuts, reprogramming of funds, or the probationary status of employees. (c) Workforce at Public Shipyards Defined.--In this section, the term ``workforce at public shipyards'' includes any of the following positions at a public shipyard: (1) Welders. (2) Pipefitters. (3) Shipfitters. (4) Radiological technicians and engineers. (5) Engineers and engineer technicians. (6) Apprentices. (7) Positions supporting a workforce development pipeline. (8) Positions supporting nuclear maintenance and refueling. (9) Mechanics. (10) Painters and blasters. (11) Positions supporting maintenance and operations of infrastructure. (12) Positions supporting implementation of the Shipyard Infrastructure Optimization Program. ______ SA 2564. Mrs. SHAHEEN (for herself, Mr. Welch, Mr. Hickenlooper, Mr. Bennet, Mr. Gallego, Mr. Heinrich, Mr. Kelly, and Mr. Booker) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: CHAPTER 7--ADDITIONAL TAX PROVISIONS SEC. 70701. REPEAL OF TERMINATION OF CERTAIN CLEAN ENERGY CREDITS. The amendments made by sections 70505, 70506, 70507, and 70508 are repealed and the Internal Revenue Code of 1986 shall be applied as if such amendments had not been enacted. SEC. 70702. ESTABLISHMENT OF 39.6 PERCENT INDIVIDUAL INCOME TAX RATE BRACKET. (a) In General.--Section 1(j)(2) is amended by redesignating subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E) the following new subparagraph: ``(F) 39.6 percent rate bracket.--Notwithstanding subparagraphs (A) through (E), in prescribing the tables under this subsection for purposes of paragraph (3)(B)-- ``(i) the excess of taxable income over $10,000,000, if any, shall be taxed at a rate of 39.6 percent, and ``(ii) paragraph (3)(B)(i) shall be applied with respect to such $10,000,000 amount by substituting `2024' for `2017'.''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2565. Mr. VAN HOLLEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 40008, strike ``40001,''. ______ SA 2566. Mr. VAN HOLLEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 40008, strike ``40003, and 40004'' and insert ``and 40003''. ______ SA 2567. Mr. VAN HOLLEN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70608. ______ SA 2568. Mr. VAN HOLLEN (for himself and Mr. Welch) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 50402(b)(2), strike subparagraph (A). In section 50402(b)(2), redesignate subparagraphs (B) through (H) as subparagraphs (A) through (G), respectively. ______ SA 2569. Mr. VAN HOLLEN (for himself, Mr. Markey, and Mr. Sanders) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 60002 (relating to repeal of greenhouse gas reduction fund). ______ SA 2570. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title II, insert the following: SEC. __. PROHIBITION ON USE OF FUNDS FOR CLASSIFIED PROGRAMS. None of the funds appropriated by this title may be made available for classified programs. ______ SA 2571. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. PROHIBITION ON EXPORT OF ENERGY RESOURCES EXTRACTED FROM PUBLIC LANDS AND WATERS. Notwithstanding any other provision of this Act, energy resources extracted from public lands and public waters of the United States impacted by any lease sale required by this Act may not be exported. ______ SA 2572. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 50306 and insert the following: [[Page S4012]] SEC. 50306. ENSURING SUFFICIENT NATIONAL PARK SERVICE STAFFING. In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior for fiscal year 2026, out of any money in the Treasury not otherwise appropriated, to remain available through September 30, 2029, $150,000,000 to hire employees for units of the National Park System and national scenic trails and components of the National Trails System administered by the Secretary of the Interior (acting through the Director of the National Park Service). ______ SA 2573. Mr. SCHATZ submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In paragraph (2) of section 17(a) of the Mineral Leasing Act (30 U.S.C. 226(a)) (as amended by section 50101(d)(1)), strike subparagraph (A) and insert the following: ``(A) Lease terms and conditions; tribal stipulations or mitigation requirements.-- ``(i) In general.--A lease issued by the Secretary under this section with respect to an applicable parcel of land made available for leasing under paragraph (1)-- ``(I) shall be subject to the terms and conditions of the approved resource management plan; and ``(II) subject to clause (ii), may not require any stipulations or mitigation requirements not included in the approved resource management plan. ``(ii) Tribal stipulations or mitigation requirements.--Any stipulations or mitigation requirements developed through consultation with any applicable Indian tribe but not included in an approved resource management plan shall be included as a lease term or condition. ______ SA 2574. Mr. SCHATZ submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. EXEMPTION FOR CERTAIN FOOD ITEMS FROM DUTIES IMPOSED PURSUANT TO NATIONAL EMERGENCY DECLARATION. (a) In General.--Duties imposed pursuant to the national emergency declared in Executive Order 14257 (90 Fed. Reg. 15041; relating to regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual United States goods trade deficits) shall not apply with respect to a food item if the duties are estimated to result in an increase in the final sale price of the food item that exceeds the increase that would occur under a projected annual inflation rate of 2 percent. (b) Food Item Defined.--In this section, the term ``food item'' means an item included in the ``foods, feeds, and beverages'' principle end-use commodity category referred to in the International Trade Application Programming Interface of the Bureau of the Census. ______ SA 2575. Mr. SCHATZ submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _______. DETERRING FOREIGN BRIBERY OF UNITED STATES OFFICIALS. (a) Short Title.--This section may be cited as the ``Deterring Foreign Bribery of United States Officials Act''. (b) Global Magnitsky Human Rights Accountability Act Sanctions.--Section 1263(a)(3) of the Global Magnitsky Human Rights Accountability Act (22 U.S.C. 10102(a)(3)) is amended by inserting after ``bribery'' the following: ``(including directly or indirectly, corruptly giving, offering, or promising anything of value to a public official or an individual who has been selected to be a public official)''. (c) Bribery of Public Officials and Witnesses.--Section 201 of title 18, United States Code, is amended-- (1) in subsection (a)-- (A) in paragraph (2), by striking ``and'' at the end; (B) in paragraph (3), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: ``(4) the term `foreign official' means-- ``(A)(i) any official or employee of a foreign government or any department, agency, or instrumentality thereof; or ``(ii) any senior foreign political figure, as defined in section 1010.605 of title 31, Code of Federal Regulations, or any successor regulation; ``(B) any official or employee of a public international organization; ``(C) any person acting in an official capacity for or on behalf of-- ``(i) a government, department, agency, or instrumentality described in subparagraph (A)(i); or ``(ii) a public international organization; or ``(D) any person acting in an unofficial capacity for or on behalf of-- ``(i) a government, department, agency, or instrumentality described in subparagraph (A)(i); or ``(ii) a public international organization; and ``(5) the term `public international organization' means-- ``(A) an organization that is designated by Executive order pursuant to section 1 of the International Organizations Immunities Act (22 U.S.C. 288); or ``(B) any other international organization that is designated by the President by Executive order for the purposes of this section, effective as of the date of publication of such order in the Federal Register.''; and (2) by adding at the end the following: ``(f) Applicability.--The prohibitions under paragraphs (1) and (3) of subsection (b) and paragraphs (1)(A) and (2) of subsection (c) shall apply with respect to conduct prohibited under those provisions by any foreign official.''. (d) Statute of Limitations.--Section 201 of title 18, United States Code, as amended by subsection (c) of this section, is amended by adding at the end the following: ``(g) Statute of Limitations.--No person shall be prosecuted, tried, or punished for any offense under this section unless the indictment is found or the information is instituted within 10 years after the latest date of the violation upon which the indictment or information is based.''. (e) Reporting.--Not later than 180 days after the date of enactment of this section, and each year thereafter, the Attorney General shall submit to Congress a report that describes, with respect to each violation of section 201 of title 18, United States Code, as amended by this section, by a foreign official, as defined in section 201 of title 18, United States Code-- (1) each violation that was investigated by the Department of Justice during the 1-year period preceding the date on which the report is submitted; and (2) each violation that is being investigated by the Department of Justice as of the date on which the report is submitted, except that such report may exclude classified information or information that could compromise an ongoing law enforcement or national security effort. ______ SA 2576. Mr. SCHATZ submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. EXEMPTION FOR BABY ITEMS FROM DUTIES IMPOSED PURSUANT TO NATIONAL EMERGENCY DECLARATION. (a) In General.--Duties imposed pursuant to the national emergency declared in Executive Order 14257 (90 Fed. Reg. 15041; relating to regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual United States goods trade deficits) shall not apply with respect to baby items. (b) Baby Item Defined.--The term ``baby item'' means-- (1) an item in the ``infants' and toddlers' apparel'' and ``baby food and formula'' expenditure categories in the Consumer Price Index for All Urban Consumers, as published by the Bureau of Labor Statistics; (2) an accessory or equipment required to maintain the storage of breast milk, baby formula, or baby food; or (3) a durable infant or toddler product, as defined in section 104 of the Consumer Product Safety Improvement Act of 2008 (15 U.S.C. 2056a). ______ SA 2577. Mr. SCHATZ submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. EXEMPTION FOR COUNTRIES THAT ARE MEMBERS OF THE FIVE EYES INTELLIGENCE OVERSIGHT AND REVIEW COUNCIL FROM DUTIES IMPOSED PURSUANT TO NATIONAL EMERGENCY DECLARATION. Duties imposed pursuant to the national emergency declared in Executive Order 14257 (90 Fed. Reg. 15041; relating to regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual United States goods trade deficits) shall not apply to articles imported from countries that are members of the Five Eyes Intelligence Oversight and Review Council. ______ SA 2578. Mr. SCHATZ submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; [[Page S4013]] which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. EXEMPTION FOR CERTAIN CONSUMER GOODS FROM DUTIES IMPOSED PURSUANT TO NATIONAL EMERGENCY DECLARATION. (a) In General.--Duties imposed pursuant to the national emergency declared in Executive Order 14257 (90 Fed. Reg. 15041; relating to regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual United States goods trade deficits) shall not apply with respect to a consumer good if the duties are estimated to result in an increase in the final sale price of the good that exceeds the increase that would occur under a projected annual inflation rate of 2 percent. (b) Consumer Good Defined.--In this section, the term ``consumer good'' means-- (1) an item included in the ``consumer goods'' principle end-use commodity category referred to in the International Trade Application Programming Interface of the Bureau of the Census; and (2) an intermediate input included in the ``capital goods'' or ``industrial supplies'' principle end-use commodity category referred to in the International Trade Application Programming Interface of the Bureau of the Census if the intermediate input is used for the production of a good in the United States for final sale to United States consumers. ______ SA 2579. Mr. SCHATZ submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 142, line 14, strike ``$24,593,500,000'' and insert ``$24,559,500,000''. On page 146, line 4, strike ``$2,200,000,000'' and insert ``$2,166,000,000''. Beginning on page 165, strike line 19 and all that follows through page 166, line 17. On page 167, strike lines 12 through 18. ______ SA 2580. Mr. SCHATZ (for himself, Ms. Rosen, Mr. Welch, Mr. Lujan, and Ms. Alsobrooks) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. EXEMPTION FROM DUTIES IMPOSED PURSUANT TO NATIONAL EMERGENCY DECLARATION FOR GOODS THAT WOULD INCREASE CONSUMER COSTS FOR RURAL AND LOW- INCOME COMMUNITIES. (a) In General.--Duties imposed pursuant to the national emergency declared in Executive Order 14257 (90 Fed. Reg. 15041; relating to regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual United States goods trade deficits) shall not apply with respect to goods that are estimated to result in an increase in the Consumer Price Index for All Urban Consumers, that exceeds a projected annual inflation rate of 2 percent, as published by the Bureau of Labor Statistics, specifically for rural and low-income communities. (b) Definitions.--In this section: (1) Low-income community.--The term ``low-income community'' has the meaning given that term in section 45D(e) of the Internal Revenue Code of 1986. (2) Rural.--The term ``rural'' has the meaning given that term in section 520 of the Housing Act of 1949 (42 U.S.C. 1490). ______ SA 2581. Mr. SCHATZ submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. EXEMPTION FOR MEDICINE AND MEDICAL PRODUCTS FROM DUTIES IMPOSED PURSUANT TO NATIONAL EMERGENCY DECLARATION. (a) In General.--Duties imposed pursuant to the national emergency declared in Executive Order 14257 (90 Fed. Reg. 15041; relating to regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual United States goods trade deficits) shall not apply with respect to medicine and medical products. (b) Definitions.--In this section: (1) Medical product.--The term ``medical product'' means-- (A) personal protective equipment, as defined by the Commissioner of Food and Drugs, which may include protective clothing, helmets, gloves, face shields, goggles, facemasks or respirators, or other equipment designed to protect the wearer from injury or the spread of infection or illness; or (B) a device, as defined in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321). (2) Medicine.--The term ``medicine'' has the meaning given the term ``drug'' in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321). ______ SA 2582. Ms. ERNST submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. CHARGING LABOR ORGANIZATIONS FOR USE OF FEDERAL RESOURCES. (a) In General.--Subchapter IV of chapter 71 of title 5, United States Code, is amended by inserting after section 7135 the following: ``Sec. 7136. Charging labor organizations for use of Federal resources ``(a) Definitions.--In this section: ``(1) Agency business.--The term `agency business' means work performed by employees on behalf of an agency or under the direction and control of the agency. ``(2) Agency resources provided for union use.--The term `agency resources provided for union use'-- ``(A) means the resources of an agency, other than the time of employees in a duty status, that such agency provides to labor representatives for purposes pertaining to matters covered by this chapter, including agency office space, parking space, equipment, and reimbursement for expenses incurred while on union time or otherwise performing non- agency business; and ``(B) does not include any resource to the extent that the resource is used for agency business. ``(3) Labor organization.--Notwithstanding section 7103, the term `labor organization' means a labor organization recognized as an exclusive representative of employees of an agency under this chapter or as a representative of agency employees under any system established by the Transportation Security Administration Administrator pursuant to section 111(d) of the Aviation and Transportation Security Act (49 U.S.C. 44935 note), except that the term does not include a labor organization, or a subordinate body of a labor organization such as a bargaining council or local chapter, not less than 51 percent of the members of which are employees who are subject to mandatory separation under section 8335 or 8425. ``(4) Hourly rate of pay.--The term `hourly rate of pay' means the total cost to an agency of employing an employee in a pay period or pay periods, including wages, salary, and other cash payments, agency contributions to employee health and retirement benefits, employer payroll tax payments, paid leave accruals, and the cost to the agency for other benefits, divided by the number of hours that employee worked in that pay period or pay periods. ``(5) Labor representative.--The term `labor representative' means an employee of an agency serving in any official or other representative capacity for a labor organization (including as any officer or steward of a labor organization) that is the exclusive representative of employees of such agency under this chapter or is the representative of employees under any system established by the Transportation Security Administration Administrator pursuant to section 111(d) of the Aviation and Transportation Security Act (49 U.S.C. 44935 note). ``(6) Union time.--The term `union time' means the time an employee of an agency who is a labor representative for a labor organization spends performing non-agency business while on duty, either in service of that labor organization or otherwise acting in the capacity as an employee representative, including official time authorized under section 7131. ``(b) Fees for Use of Agency Resources.-- ``(1) In general.--The head of each agency shall charge each labor organization recognized as an exclusive representative of employees of that agency a fee each calendar quarter for the use of the resources of that agency during that quarter. ``(2) Fee calculation.--The amount of the fee the head of an agency charges a labor organization under paragraph (1) with respect to a calendar quarter shall be equal to the amount that is the sum of-- ``(A) the value of the union time of each labor representative for that labor organization while employed by that agency in that quarter; and ``(B) the value of agency resources provided for union use to that labor organization by that agency in that quarter. ``(3) Timing.-- ``(A) Notice.--Not later than 30 days after the end of each calendar quarter, the head of each agency shall submit to each labor organization charged a fee by that agency head under paragraph (1) with respect to that calendar quarter a notice stating the amount of that fee. ``(B) Due date.--Payment of a fee charged under paragraph (1) is due not later than 60 days after the date on which the labor organization charged the fee receives a notice under subparagraph (A) with respect to that fee. ``(4) Payment.-- ``(A) In general.--Payment of a fee charged under paragraph (1) shall be made to the head of the agency that charged the fee. [[Page S4014]] ``(B) Transfer to general fund.--The head of an agency shall transfer each payment of a fee charged under paragraph (1) that the agency head receives to the general fund of the Treasury. ``(c) Value Determinations.-- ``(1) In general.--The head of an agency charging a labor organization a fee under subsection (b) shall determine the value of union time used by labor representatives and the value of agency resources provided for union use for the purposes of paragraph (2) of that subsection in accordance with this subsection. ``(2) Values.--For the purposes of paragraph (2) of subsection (b), with respect to a fee charged to a labor organization by the head of an agency under paragraph (1) of that subsection-- ``(A) the value of the union time of a labor representative during a calendar quarter is equal to amount that is the product of the hourly rate of pay of that labor representative paid by that agency and the number of hours of union time of that labor representative during that calendar quarter during which that labor representative was on duty as an employee of that agency; and ``(B) that agency head shall determine the value of agency resources provided for union use during a calendar quarter using rates established by the General Services Administration, where applicable, or to the extent that those rates are inapplicable to the use of those resources, the market rate for the use of those resources, except that with respect to resources used for both agency business and for purposes pertaining to matters covered by this chapter, only the value of the portion of the use of those resources for the business of that labor organization shall be included. ``(3) Payment required.--The head of an agency may not forgive, reimburse, waive, or in any other manner reduce any fee charged under this section.''. (b) Technical and Conforming Amendment.--The table of sections for subchapter IV of chapter 71 of title 5, United States Code, is amended by inserting after the item relating to section 7135 the following: ``7136. Charging labor organizations for use of Federal resources.''. ______ SA 2583. Mr. CURTIS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70512 and insert the following: SEC. 70512. TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT. (a) Termination for Wind and Solar Facilities.--Section 45Y(d) is amended-- (1) in paragraph (1), by striking ``The amount of'' and inserting ``Subject to paragraph (4), the amount of'', and (2) by striking paragraph (3) and inserting the following new paragraphs: ``(3) Applicable year.--For purposes of this subsection, the term `applicable year' means calendar year 2032. ``(4) Termination for wind and solar facilities.-- ``(A) In general.--This section shall not apply with respect to any applicable facility placed in service after December 31, 2027. ``(B) Applicable facility.--For purposes of this paragraph, the term `applicable facility' means a qualified facility which-- ``(i) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or ``(ii) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins).''. (b) Restrictions Relating to Prohibited Foreign Entities.-- Section 45Y is amended-- (1) in subsection (b)(1), by adding at the end the following new subparagraph: ``(E) Material assistance from prohibited foreign entities.--The term `qualified facility' shall not include any facility for which construction begins after December 31, 2025 (or, in the case of an applicable facility, as defined in subsection (d)(4)(B), after June 16, 2025), if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).'', and (2) in subsection (g), by adding at the end the following new paragraph: ``(13) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year if the taxpayer is-- ``(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(ii) a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). ``(B) Effective control.--In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection (a) for such taxable year if such determination relates to a qualified facility described in subsection (b)(1).''. (c) Definitions Relating to Prohibited Foreign Entities.-- Section 7701(a) is amended by adding at the end the following new paragraphs: ``(51) Prohibited foreign entity.-- ``(A) In general.-- ``(i) Definition.--The term `prohibited foreign entity' means a specified foreign entity or a foreign-influenced entity. ``(ii) Determination.-- ``(I) In general.--Subject to subclause (II), for any taxable year, the determination as to whether an entity is a specified foreign entity or foreign-influenced entity shall be made as of the last day of such taxable year. ``(II) Initial taxable year.--For purposes of the first taxable year beginning after the date of enactment of this paragraph, the determination as to whether an entity is a specified foreign entity described in clauses (i) through (iv) of subparagraph (B) shall be made as of the first day of such taxable year. ``(B) Specified foreign entity.--For purposes of this paragraph, the term `specified foreign entity' means-- ``(i) a foreign entity of concern described in subparagraph (A), (B), (D), or (E) of section 9901(8) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 15 U.S.C. 4651), ``(ii) an entity identified as a Chinese military company operating in the United States in accordance with section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 10 U.S.C. 113 note), ``(iii) an entity included on a list required by clause (i), (ii), (iv), or (v) of section 2(d)(2)(B) of Public Law 117-78 (135 Stat. 1527), ``(iv) an entity specified under section 154(b) of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec. 4651), or ``(v) a foreign-controlled entity. ``(C) Foreign-controlled entity.--For purposes of subparagraph (B), the term `foreign-controlled entity' means-- ``(i) the government (including any level of government below the national level) of a covered nation, ``(ii) an agency or instrumentality of a government described in clause (i), ``(iii) a person who is a citizen or national of a covered nation, provided that such person is not an individual who is a citizen, national, or lawful permanent resident of the United States, ``(iv) an entity or a qualified business unit (as defined in section 989(a)) incorporated or organized under the laws of, or having its principal place of business in, a covered nation, or ``(v) an entity (including subsidiary entities) controlled (as determined under subparagraph (G)) by an entity described in clause (i), (ii), (iii), or (iv). ``(D) Foreign-influenced entity.-- ``(i) In general.--For purposes of subparagraph (A), the term `foreign-influenced entity' means an entity-- ``(I) with respect to which, during the taxable year-- ``(aa) a specified foreign entity has the direct authority to appoint a covered officer of such entity, ``(bb) a single specified foreign entity owns at least 25 percent of such entity, ``(cc) one or more specified foreign entities own in the aggregate at least 40 percent of such entity, or ``(dd) at least 15 percent of the debt of such entity has been issued, in the aggregate, to 1 or more specified foreign entities, or ``(II) which, during the previous taxable year, made a payment to a specified foreign entity pursuant to a contract, agreement, or other arrangement which entitles such specified foreign entity (or an entity related to such specified foreign entity) to exercise effective control over-- ``(aa) any qualified facility or energy storage technology of the taxpayer (or any person related to the taxpayer), or ``(bb) with respect to any eligible component produced by the taxpayer (or any person related to the taxpayer)-- ``(AA) the extraction, processing, or recycling of any applicable critical mineral, or ``(BB) the production of an eligible component which is not an applicable critical mineral. ``(ii) Effective control.-- ``(I) In general.-- ``(aa) General rule.--Subject to subclause (II), for purposes of clause (i)(II), the term `effective control' means 1 or more agreements or arrangements similar to those described in subclauses (II) and (III) which provide 1 or more contractual counterparties of a taxpayer with specific authority over key aspects of the production of eligible components, energy generation in a qualified facility, or energy storage which are not included in the measures of control through authority, ownership, or debt held which are described in clause (i)(I). ``(bb) Guidance.--The Secretary shall issue such guidance as is necessary to carry out the purposes of this clause, including the establishment of rules to prevent entities from evading, circumventing, or abusing the application of the restrictions described subparagraph (C) and subclauses (II) and (III) of this clause through a contract, agreement, or other arrangement. ``(II) Application of rules prior to issuance of guidance.--During any period prior to the date that the guidance described [[Page S4015]] in subclause (I)(bb) is issued by the Secretary, for purposes of clause (i)(II), the term `effective control' means the unrestricted contractual right of a contractual counterparty to-- ``(aa) determine the quantity or timing of production of an eligible component produced by the taxpayer, ``(bb) determine the amount or timing of activities related to the production of electricity undertaken at a qualified facility of the taxpayer or the storage of electrical energy in energy storage technology of the taxpayer, ``(cc) determine which entity may purchase or use the output of a production unit of the taxpayer that produces eligible components, ``(dd) determine which entity may purchase or use the output of a qualified facility of the taxpayer, ``(ee) restrict access to data critical to production or storage of energy undertaken at a qualified facility of the taxpayer, or to the site of production or any part of a qualified facility or energy storage technology of the taxpayer, to the personnel or agents of such contractual counterparty, or ``(ff) on an exclusive basis, maintain, repair, or operate any plant or equipment which is necessary to the production by the taxpayer of eligible components or electricity. ``(III) Licensing and other agreements.-- ``(aa) In general.--In addition to subclause (II), for purposes of clause (i)(II), the term `effective control' means, with respect to a licensing agreement for the provision of intellectual property or any other contract, agreement, or other arrangement entered into with a contractual counterparty which is related to such licensing agreement and to a qualified facility, energy storage technology, or the production of an eligible component, any of the following: ``(AA) A contractual right retained by the contractual counterparty to specify or otherwise direct 1 or more sources of components, subcomponents, or applicable critical minerals utilized in a qualified facility, energy storage technology, or in the production of an eligible component. ``(BB) A contractual right retained by the contractual counterparty to direct the operation of any qualified facility, any energy storage technology, or any production unit that produces an eligible component. ``(CC) A contractual right retained by the contractual counterparty to limit the taxpayer's utilization of intellectual property related to the operation of a qualified facility or energy storage technology, or in the production of an eligible component. ``(DD) A contractual right retained by the contractual counterparty to receive royalties under the licensing agreement or any similar agreement (or payments under any related agreement) beyond the 10th year of the agreement (including modifications or extensions thereof). ``(EE) A contractual right retained by the contractual counterparty to direct or otherwise require the taxpayer to enter into an agreement for the provision of services for a duration longer than 2 years (including any modifications or extensions thereof). ``(FF) Such contract, agreement, or other arrangement does not provide the licensee with all the technical data, information, and know-how necessary to enable the licensee to produce the eligible component or components subject to the contract, agreement, or other arrangement without further involvement from the contractual counterparty or a specified foreign entity. ``(GG) Such contract, agreement, or other arrangement was entered into (or modified) on or after June 16, 2025. ``(bb) Exception.-- ``(AA) In general.--Item (aa) shall not apply in the case of a bona fide purchase or sale of intellectual property. ``(BB) Bona fide purchase or sale.--For purposes of item (aa), any purchase or sale of intellectual property where the agreement provides that ownership of the intellectual property reverts to the contractual counterparty after a period of time shall not be considered a bona-fide purchase or sale. ``(IV) Persons related to the taxpayer.--For purposes of subclauses (I), (II), and (III), the term `taxpayer' shall include any person related to the taxpayer. ``(V) Contractual counterparty.--For purposes of this clause, the term `contractual counterparty' means an entity with which the taxpayer has entered into a contract, agreement, or other arrangement. ``(iii) Guidance.--Not later than December 31, 2026, the Secretary shall issue such guidance as is necessary to carry out the purposes of this subparagraph, including establishment of rules to prevent entities from evading, circumventing, or abusing the application of the restrictions against impermissible technology licensing arrangements with specified foreign entities, such as through temporary transfers of intellectual property, retention by a specified foreign entity of a reversionary interest in transferred intellectual property, or otherwise. ``(E) Publicly traded entities.-- ``(i) In general.-- ``(I) Nonapplication of certain foreign-controlled entity rules.--Subparagraph (C)(v) shall not apply in the case of any entity the securities of which are regularly traded on-- ``(aa) a national securities exchange which is registered with the Securities and Exchange Commission, ``(bb) the national market system established pursuant to section 11A of the Securities and Exchange Act of 1934, or ``(cc) any other exchange or other market which the Secretary has determined in guidance issued under section 1296(e)(1)(A)(ii) has rules adequate to carry out the purposes of part VI of subchapter P of chapter 1 of subtitle A. ``(II) Nonapplication of certain foreign-influenced entity rules.--Subparagraph (D)(i)(I) shall not apply in the case of any entity-- ``(aa) the securities of which are regularly traded in a manner described in subclause (I), or ``(bb) for which not less than 80 percent of the equity securities of such entity are owned directly or indirectly by an entity which is described in item (aa). ``(III) Exclusion of exchanges or markets in covered nations.--Subclause (I)(cc) shall not apply with respect to any exchange or market which-- ``(aa) is incorporated or organized under the laws of a covered nation, or ``(bb) has its principal place of business in a covered nation. ``(ii) Additional foreign-controlled entity requirements for publicly traded companies.--In the case of an entity described in clause (i)(I), such entity shall be deemed to be a foreign-controlled entity under subparagraph (C)(v) if such entity is controlled (as determined under subparagraph (G)) by-- ``(I) 1 or more specified foreign entities (as determined without regard to subparagraph (B)(v)) that are each required to report their beneficial ownership pursuant to a rule described in clause (iii)(I)(bb), or ``(II) 1 or more foreign-controlled entities (as determined without regard to subparagraph (C)(v)) that are each required to report their beneficial ownership pursuant to a rule described in such clause. ``(iii) Additional foreign-influenced entity requirements for publicly traded companies.--In the case of an entity described in clause (i)(II), such entity shall be deemed to be a foreign-influenced entity under subparagraph (D)(i)(I) if-- ``(I) during the taxable year-- ``(aa) a specified foreign entity has the authority to appoint a covered officer of such entity, ``(bb) a single specified foreign entity required to report its beneficial ownership under Rule 13d-3 of the Securities and Exchange Act of 1934 (or, in the case of an exchange or market described in clause (i)(I)(cc), an equivalent rule) owns not less than 25 percent of such entity, or ``(cc) 1 or more specified foreign entities that are each required to report their beneficial ownership under Rule 13d- 3 of the Securities and Exchange Act of 1934 own, in the aggregate, not less than 40 percent of such entity, or ``(II) such entity has issued debt, as part of an original issuance, in excess of 15 percent of its publicly-traded debt to 1 or more specified foreign entities. ``(F) Covered officer.--For purposes of this paragraph, the term `covered officer' means, with respect to an entity-- ``(i) a member of the board of directors, board of supervisors, or equivalent governing body, ``(ii) an executive-level officer, including the president, chief executive officer, chief operating officer, chief financial officer, general counsel, or senior vice president, or ``(iii) an individual having powers or responsibilities similar to those of officers or members described in clause (i) or (ii). ``(G) Determination of control.--For purposes of subparagraph (C)(v), the term `control' means-- ``(i) in the case of a corporation, ownership (by vote or value) of more than 50 percent of the stock in such corporation, ``(ii) in the case of a partnership, ownership of more than 50 percent of the profits interests or capital interests in such partnership, or ``(iii) in any other case, ownership of more than 50 percent of the beneficial interests in the entity. ``(H) Determination of ownership.--For purposes of this section, section 318(a)(2) shall apply for purposes of determining ownership of stock in a corporation. Similar principles shall apply for purposes of determining ownership of interests in any other entity. ``(I) Other definitions.--For purposes of this paragraph-- ``(i) Applicable critical mineral.--The term `applicable critical mineral' has the same meaning given such term under section 45X(c)(6). ``(ii) Covered nation.--The term `covered nation' has the same meaning given such term under section 4872(f)(2) of title 10, United States Code. ``(iii) Eligible component.--The term `eligible component' has the same meaning given such term under section 45X(c)(1). ``(iv) Energy storage technology.--The term `energy storage technology' has the same meaning given such term under section 48E(c)(2). ``(v) Qualified facility.--The term `qualified facility' means-- ``(I) a qualified facility, as defined in section 45Y(b)(1), and ``(II) a qualified facility, as defined in section 48E(b)(3). ``(vi) Related.--The term `related' shall have the same meaning given such term under sections 267(b) and 707(b). ``(J) Beginning of construction.--For purposes of applying any provision under this [[Page S4016]] paragraph, the beginning of construction with respect to any property shall be determined pursuant to rules similar to the rules under Internal Revenue Service Notice 2013-29 and Internal Revenue Service Notice 2018-59 (as well as any subsequently issued guidance clarifying, modifying, or updating either such Notice), as in effect on January 1, 2025. ``(K) Regulations and guidance.--The Secretary may prescribe such regulations and guidance as may be necessary or appropriate to carry out the provisions of this paragraph, including rules to prevent the circumvention of any rules or restrictions with respect to prohibited foreign entities. ``(52) Material assistance from a prohibited foreign entity.-- ``(A) In general.--The term `material assistance from a prohibited foreign entity' means-- ``(i) with respect to any qualified facility or energy storage technology, a material assistance cost ratio which is less than the threshold percentage applicable under subparagraph (B), or ``(ii) with respect to any facility which produces eligible components, a material assistance cost ratio which is less than the threshold percentage applicable under subparagraph (C). ``(B) Threshold percentage for qualified facilities and energy storage technology.--For purposes of subparagraph (A)(i), the threshold percentage shall be-- ``(i) in the case of a qualified facility the construction of which begins-- ``(I) after June 16, 2025, and before January 1, 2026, 37.5 percent, ``(II) during calendar year 2026, 40 percent, ``(III) during calendar year 2027, 45 percent, ``(IV) during calendar year 2028, 50 percent, ``(V) during calendar year 2029, 55 percent, and ``(VI) after December 31, 2029, 60 percent, and ``(ii) in the case of energy storage technology the construction of which begins-- ``(I) during calendar year 2026, 55 percent, ``(II) during calendar year 2027, 60 percent, ``(III) during calendar year 2028, 65 percent, ``(IV) during calendar year 2029, 70 percent, and ``(V) after December 31, 2029, 75 percent. ``(C) Threshold percentage for eligible components.-- ``(i) In general.--For purposes of subparagraph (A)(ii), the threshold percentage shall be-- ``(I) in the case of any solar energy component (as such term is defined in section 45X(c)(3)(A)) which is sold-- ``(aa) during calendar year 2026, 50 percent, ``(bb) during calendar year 2027, 60 percent, ``(cc) during calendar year 2028, 70 percent, ``(dd) during calendar year 2029, 80 percent, and ``(ee) after December 31, 2029, 85 percent, ``(II) in the case of any wind energy component (as such term is defined in section 45X(c)(4)(A)) which is sold-- ``(aa) during calendar year 2026, 85 percent, and ``(bb) during calendar year 2027, 90 percent, ``(III) in the case of any inverter described in subparagraphs (B) through (G) of section 45X(c)(2) which is sold-- ``(aa) during calendar year 2026, 50 percent, ``(bb) during calendar year 2027, 55 percent, ``(cc) during calendar year 2028, 60 percent, ``(dd) during calendar year 2029, 65 percent, and ``(ee) after December 31, 2029, 70 percent, ``(IV) in the case of any qualifying battery component (as such term is defined in section 45X(c)(5)(A)) which is sold-- ``(aa) during calendar year 2026, 60 percent, ``(bb) during calendar year 2027, 65 percent, ``(cc) during calendar year 2028, 70 percent, ``(dd) during calendar year 2029, 80 percent, and ``(ee) after December 31, 2029, 85 percent, and ``(V) subject to clause (ii), in the case of any applicable critical mineral (as such term is defined in section 45X(c)(6)) which is sold-- ``(aa) after December 31, 2025, and before January 1, 2030, 0 percent, ``(bb) during calendar year 2030, 25 percent, ``(cc) during calendar year 2031, 30 percent, ``(dd) during calendar year 2032, 40 percent, and ``(ee) after December 31, 2032, 50 percent. ``(ii) Adjusted threshold percentage for applicable critical minerals.--Not later than December 31, 2027, the Secretary shall issue threshold percentages for each of the applicable critical minerals described in section 45X(c)(6)), which shall-- ``(I) apply in lieu of the threshold percentage determined under clause (i)(V) for each calendar year, and ``(II) equal or exceed the threshold percentage which would otherwise apply with respect to such applicable critical mineral under such clause for such calendar year, taking into account-- ``(aa) domestic geographic availability, ``(bb) supply chain constraints, ``(cc) domestic processing capacity needs, and ``(dd) national security concerns. ``(D) Material assistance cost ratio.-- ``(i) Qualified facilities and energy storage technology.-- For purposes of subparagraph (A)(i), the term `material assistance cost ratio' means the amount (expressed as a percentage) equal to the quotient of-- ``(I) an amount equal to-- ``(aa) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are incorporated into the qualified facility or energy storage technology upon completion of construction, minus ``(bb) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are-- ``(AA) incorporated into the qualified facility or energy storage technology upon completion of construction, and ``(BB) mined, produced, or manufactured by a prohibited foreign entity, divided by ``(II) the amount described in subclause (I)(aa). ``(ii) Eligible components.--For purposes of subparagraph (A)(ii), the term `material assistance cost ratio' means the amount (expressed as a percentage) equal to the quotient of-- ``(I) an amount equal to-- ``(aa) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer for production of such eligible component, minus ``(bb) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer for production of such eligible component that are attributable to a prohibited foreign entity, divided by ``(II) the amount described in subclause (I)(aa). ``(iii) Safe harbor tables.-- ``(I) In general.--Not later than December 31, 2026, the Secretary shall issue safe harbor tables (and such other guidance as deemed necessary) to-- ``(aa) identify the percentage of total direct costs of any manufactured product which is attributable to a prohibited foreign entity, ``(bb) identify the percentage of total direct material costs of any eligible component which is attributable to a prohibited foreign entity, and ``(cc) provide all rules necessary to determine the appropriate amount of a taxpayer's material assistance from a prohibited foreign entity within the meaning of this paragraph or as such term is used in section 5000E-1. ``(II) Safe harbors prior to issuance.--For purposes of this paragraph, prior to the date on which the Secretary issues the safe harbor tables described in subclause (I), and for construction of a qualified facility or energy storage technology which begins on or before the date which is 60 days after the date of issuance of such tables, a taxpayer may-- ``(aa) use the tables included in Internal Revenue Service Notice 2025-08 to establish the percentage of the total direct costs of any listed eligible component and any manufactured product, and ``(bb) rely on a certification by the supplier of the manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component-- ``(AA) of the total direct costs or the total direct material costs, as applicable, of such product or component that was not produced or manufactured by a prohibited foreign entity, or ``(BB) that such product or component was not produced or manufactured by a prohibited foreign entity. ``(III) Exception.--Notwithstanding subclauses (I) and (II)-- ``(aa) if the taxpayer knows (or has reason to know) that a manufactured product or eligible component was produced or manufactured by a prohibited foreign entity, the taxpayer shall treat all direct costs with respect to such manufactured product, or all direct material costs with respect to such eligible component, as attributable to a prohibited foreign entity, and ``(bb) if the taxpayer knows (or has reason to know) that the certification referred to in subclause (II)(bb) pertaining to a manufactured product or eligible component is inaccurate, the taxpayer may not rely on such certification. ``(IV) Certification requirement.--In a manner consistent with Treasury Regulation section 1.45X-4(c)(4)(i) (as in effect on the date of enactment of this paragraph), the certification referred to in subclause (II)(bb) shall-- ``(aa) include-- ``(AA) the supplier's employer identification number, or ``(BB) any such similar identification number issued by a foreign government, ``(bb) be signed under penalties of perjury, ``(cc) be retained by the supplier and the taxpayer for a period of not less than 6 years and shall be provided to the Secretary upon request, and ``(dd) be from the supplier from which the taxpayer purchased any manufactured product, eligible component, or constituent elements, materials, or subcomponents of an eligible component, stating either-- ``(AA) that such property was not produced or manufactured by a prohibited foreign entity and that the supplier is not aware that any prior supplier in the chain of production of that property is a prohibited foreign entity, ``(BB) for purposes of section 45X, the total direct material costs for each component, constituent element, material, or subcomponent that were not produced or manufactured by a prohibited foreign entity, or [[Page S4017]] ``(CC) for purposes of section 45Y or section 48E, the total direct costs attributable to all manufactured products that were not produced or manufactured by a prohibited foreign entity. ``(iv) Existing contract.--Upon the election of the taxpayer (in such form and manner as the Secretary shall designate), in the case of any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component which is-- ``(I) acquired by the taxpayer, or manufactured or assembled by or for the taxpayer, pursuant to a binding written contract which was entered into prior to June 16, 2025, and ``(II)(aa) placed into service before January 1, 2030 (or, in the case of an applicable facility, as defined in section 45Y(d)(4)(B), before January 1, 2028), or ``(bb) in the case of a constituent element, material, or subcomponent, used in a product sold before January 1, 2030, the cost to the taxpayer with respect to such product, component, element, material, or subcomponent shall not be included for purposes of determining the material assistance cost ratio under this subparagraph. ``(v) Anti-circumvention rules.--The Secretary shall prescribe such regulations and guidance as may be necessary or appropriate to prevent circumvention of the rules under this subparagraph, including prevention of-- ``(I) any abuse of the exception provided under clause (iv) through the stockpiling of any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component during any period prior to the application of the requirements under this paragraph, or ``(II) any evasion with respect to the requirements of this subparagraph where the facts and circumstances demonstrate that the beginning of construction of a qualified facility or energy storage technology has not in fact occurred. ``(E) Other definitions.--For purposes of this paragraph-- ``(i) Eligible component.--The term `eligible component' means-- ``(I) any property described in section 45X(c)(1), or ``(II) any component which is identified by the Secretary pursuant to regulations or guidance issued under subparagraph (G). ``(ii) Energy storage technology.--The term `energy storage technology' has the same meaning given such term under section 48E(c)(2). ``(iii) Manufactured product.--The term `manufactured product' means-- ``(I) a manufactured product which is a component of a qualified facility, as described in section 45Y(g)(11)(B) and any guidance issued thereunder, or ``(II) any product which is identified by the Secretary pursuant to regulations or guidance issued under subparagraph (G). ``(iv) Qualified facility.--The term `qualified facility' means-- ``(I) a qualified facility, as defined in section 45Y(b)(1), ``(II) a qualified facility, as defined in section 48E(b)(3), and ``(III) any qualified interconnection property (as defined in section 48E(b)(4)) which is part of the qualified investment with respect to a qualified facility (as described in section 48E(b)(1)). ``(F) Beginning of construction.--Rules similar to the rules under paragraph (51)(J) shall apply for purposes of this paragraph. ``(G) Regulations and guidance.--The Secretary may prescribe such regulations and guidance as may be necessary or appropriate to carry out the provisions of this paragraph, including-- ``(i) identification of components or products for purposes of clauses (i) and (iii) of subparagraph (E), and ``(ii) for purposes of subparagraph (A)(ii), rules to address facilities which produce more than one eligible component.''. (d) Denial of Credit for Certain Wind and Solar Leasing Arrangements.--Section 45Y is amended by adding at the end the following new subsection: ``(h) Denial of Credit for Wind and Solar Leasing Arrangements.--No credit shall be determined under this section with respect to any production of electricity during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.''. (e) Emissions Rates Tables.--Section 45Y(b)(2)(C) is amended by adding at the end the following new clause: ``(iii) Existing studies.--For purposes of clause (i), in determining greenhouse gas emissions rates for types or categories of facilities for the purpose of determining whether a facility satisfies the requirements under paragraph (1), the Secretary shall consider studies published on or before the date of enactment of this clause which demonstrate a net lifecycle greenhouse gas emissions rate which is not greater than zero using widely accepted lifecycle assessment concepts, such as concepts described in standards developed by the International Organization for Standardization.''. (f) Nuclear Energy Communities.-- (1) In general.--Section 45(b)(11) is amended-- (A) in subparagraph (B)-- (i) in clause (ii)(II), by striking ``or'' at the end, (ii) in clause (iii)(II), by striking the period at the end and inserting ``, or'', and (iii) by adding at the end the following new clause: ``(iv) for purposes of any qualified facility which is an advanced nuclear facility, a metropolitan statistical area which has (or, at any time during the period beginning after December 31, 2009, had) 0.17 percent or greater direct employment related to the advancement of nuclear power, including employment related to-- ``(I) an advanced nuclear facility, ``(II) advanced nuclear power research and development, ``(III) nuclear fuel cycle research, development, or production, including mining, enrichment, manufacture, storage, disposal, or recycling of nuclear fuel, and ``(IV) the manufacturing or assembly of components used in an advanced nuclear facility.'', and (B) by adding at the end the following new subparagraph: ``(C) Advanced nuclear facilities.-- ``(i) In general.--Subject to clause (ii), for purposes of subparagraph (B)(iv), the term `advanced nuclear facility' means any nuclear facility the reactor design for which is approved in the manner described in section 45J(d)(2). ``(ii) Special rule.--For purposes of clause (i), a facility shall be deemed to have a reactor design which is approved in the manner described in section 45J(d)(2) if the Nuclear Regulatory Commission has authorized construction and issued a site-specific construction permit or combined license with respect to such facility.''. (2) Nonapplication for clean electricity investment credit.--Section 48E(a)(3)(A)(i) is amended by inserting ``, as applied without regard to clause (iv) thereof'' after ``section 45(b)(11)(B)''. (g) Conforming Amendments.-- (1) Paragraph (1) of section 48D(c) is amended to read as follows: ``(1) is not a specified foreign entity (as defined in section 7701(a)(51)(B)), and''. (2) Section 45Y(b)(1) is amended-- (A) by redesignating subparagraph (D) as subparagraph (E), and (B) by inserting after subparagraph (C) the following new subparagraph: ``(D) Determination of capacity.--For purposes of subparagraph (C), additions of capacity of a facility shall be determined in any reasonable manner, including based on-- ``(i) determinations by, or reports to, the Federal Energy Regulatory Commission (including interconnection agreements), the Nuclear Regulatory Commission, or any similar entity, reflecting additions of capacity, ``(ii) determinations or reports reflecting additions of capacity made by an independent professional engineer, ``(iii) reports to, or issued by, regional transmission organizations or independent system operators reflecting additions of capacity, or ``(iv) any other method or manner provided by the Secretary.''. (h) Prohibition on Transfer of Credits to Specified Foreign Entities.--Section 6418(g) is amended by adding at the end the following new paragraph: ``(5) Prohibition on transfer of credits to specified foreign entities.--With respect to any eligible credit described in clause (iii), (iv), (vi), (vii), (viii), or (xi) of subsection (f)(1)(A), an eligible taxpayer may not elect to transfer any portion of such credit to a taxpayer that is a specified foreign entity (as defined in section 7701(a)(51)(B)).''. (i) Extension of Period of Limitations for Errors Relating to Determining of Material Assistance From a Prohibited Foreign Entity.--Section 6501 is amended-- (1) by redesignating subsection (o) as subsection (p), and (2) by inserting after subsection (n) the following new subsection: ``(o) Material Assistance From a Prohibited Foreign Entity.--In the case of a deficiency attributable to an error with respect to the determination under section 7701(a)(52) for any taxable year, such deficiency may be assessed at any time within 6 years after the return for such year was filed.''. (j) Imposition of Accuracy-related Penalties.-- (1) In general.--Section 6662 is amended by adding at the end the following new subsection: ``(m) Substantial Understatement of Income Tax Due to Disallowance of Applicable Energy Credits.-- ``(1) In general.--In the case of a taxpayer for which there is a disallowance of an applicable energy credit for any taxable year, for purposes of determining whether there is a substantial understatement of income tax for such taxable year, subsection (d)(1) shall be applied-- ``(A) in subparagraphs (A) and (B), by substituting `1 percent' for `10 percent' each place it appears, and ``(B) without regard to subparagraph (C). ``(2) Disallowance of an applicable energy credit.--For purposes of this subsection, the term `disallowance of an applicable energy credit' means the disallowance of a credit under section 45X, 45Y, or 48E by reason of overstating the material assistance cost ratio (as determined under section 7701(a)(52)) with respect to any qualified facility, energy storage technology, or facility which produces eligible components.''. [[Page S4018]] (2) Conforming amendment.--Section 6417(d)(6) is amended by adding at the end the following new subparagraph: ``(D) Disallowance of an applicable energy credit.--In the case of an applicable entity which made an election under subsection (a) with respect to an applicable credit for which there is a disallowance described in section 6662(m)(2), subparagraph (A) shall apply with respect to any excessive payment resulting from such disallowance.''. (k) Penalty for Substantial Misstatements on Certification Provided by Supplier.-- (1) In general.--Part I of subchapter B of chapter 68 is amended by inserting after section 6695A the following new section: ``SEC. 6695B. PENALTY FOR SUBSTANTIAL MISSTATEMENTS ON CERTIFICATION PROVIDED BY SUPPLIER. ``(a) Imposition of Penalty.--If-- ``(1) a person-- ``(A) provides a certification described in clause (iii)(II)(bb) of section 7701(a)(52)(D) with respect to any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component, and ``(B) knows, or reasonably should have known, that the certification would be used in connection with a determination under such section, ``(2) such certification is inaccurate or false with respect to-- ``(A) whether such property was produced or manufactured by a prohibited foreign entity, or ``(B) the total direct costs or total direct material costs of such property that was not produced or manufactured by a prohibited foreign entity that were provided on such certification, and ``(3) the inaccuracy or falsity described in paragraph (2) resulted in the disallowance of an applicable energy credit (as defined in section 6662(m)(2)) and an understatement of income tax (within the meaning of section 6662(d)(2)) for the taxable year in an amount which exceeds the lesser of-- ``(A) 5 percent of the tax required to be shown on the return for the taxable year, or ``(B) $100,000, then such person shall pay a penalty in the amount determined under subsection (b). ``(b) Amount of Penalty.--The amount of the penalty imposed under subsection (a) on any person with respect to a certification shall be equal to the greater of-- ``(1) 10 percent of the amount of the underpayment (as defined in section 6664(a)) solely attributable to the inaccuracy or falsity described in subsection (a)(2), or ``(2) $5,000. ``(c) Exception.--No penalty shall be imposed under subsection (a) if the person establishes to the satisfaction of the Secretary that any inaccuracy or falsity described in subsection (a)(2) is due to a reasonable cause and not willful neglect. ``(d) Definitions.--Any term used in this section which is also used in section 7701(a)(52) shall have the meaning given such term in such section.''. (2) Clerical amendments.-- (A) Section 6696 is amended-- (i) in the heading, by striking ``and 6695a'' and inserting ``6695a, and 6695b'', (ii) in subsections (a), (b), and (e), by striking ``and 6695A'' each place it appears and inserting ``6695A, and 6695B'', (iii) in subsection (c), by striking ``or 6695A'' and inserting ``6695A, or 6695B'', and (iv) in subsection (d)-- (I) in paragraph (1), by inserting ``(or, in the case of any penalty under section 6695B, 6 years)'' after ``assessed within 3 years'', and (II) in paragraph (2), by inserting ``(or, in the case of any claim for refund of an overpayment of any penalty assessed under section 6695B, 6 years)'' after ``filed within 3 years''. (B) The table of sections for part I of subchapter B of chapter 68 is amended by inserting after item relating to section 6695A the following new item: ``Sec. 6695B. Penalty for substantial misstatements on certification provided by supplier.''. (l) Excise Tax on Facilities That Receive Material Assistance From Prohibited Foreign Entities.-- (1) In general.--Subtitle D is amended by adding at the end the following new chapter: ``CHAPTER 50B--MATERIAL ASSISTANCE FROM PROHIBITED FOREIGN ENTITIES ``Sec. 5000E-1. Imposition of tax. ``SEC. 5000E-1. IMPOSITION OF TAX. ``(a) In General.--In the case of an applicable facility for which there is a material assistance cost ratio violation, a tax is hereby imposed for the taxable year in which such facility is placed in service in the amount determined under subsection (d) with respect to such facility. ``(b) Applicable Facility.--For purposes of this section, the term `applicable facility' means a facility owned by the taxpayer-- ``(1) which-- ``(A) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or ``(B) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), and ``(2) either-- ``(A) the construction of which begins after the date of the enactment of this section and before January 1, 2028, and which is placed in service after December 31, 2027, or ``(B) the construction of which begins after December 31, 2027, and before January 1, 2036. ``(c) Material Assistance Cost Ratio Violation.--For purposes of this section, the term `material assistance cost ratio violation' means, with respect to an applicable facility, that the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)). ``(d) Amount of Tax.-- ``(1) In general.--The amount determined under this subsection with respect to any applicable facility shall be equal to the applicable percentage of the amount equal to the product of-- ``(A) the amount (expressed in percentage points) by which the threshold percentage (as determined under section 7701(a)(52)(B)(i)) exceeds the material assistance cost ratio (as determined under section 7701(a)(52)(D)(i)), multiplied by ``(B) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are incorporated into the applicable facility upon completion of construction (as determined under section 7701(a)(52)(D)(i)(I)). ``(2) Applicable percentage.--For purposes of paragraph (1), the applicable percentage shall be-- ``(A) in the case of a facility described in subparagraph (A) of subsection (b)(1), 30 percent, or ``(B) in the case of a facility described in subparagraph (B) of such subsection, 50 percent. ``(e) Rule of Application.--For purposes of this section, with respect to the application of section 7701(a)(52) or any provision thereof, such section shall be applied by substituting `applicable facility' for `qualified facility' each place it appears. ``(f) Regulations and Guidance.--The Secretary may prescribe such regulations and guidance as may be necessary or appropriate to carry out the provisions of this section, including-- ``(1) identifying an applicable facility of the taxpayer, ``(2) determining a material assistance cost ratio violation of the taxpayer, and ``(3) application of the rules to specific fact patterns in a manner that is consistent with the purposes of this section.''. (2) Clerical amendment.--The table of chapters for subtitle D is amended by inserting after the item relating to chapter 50A the following new item: ``Chapter 50B--Material Assistance From Prohibited Foreign Entities''. (m) Effective Dates.-- (1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Material assistance from prohibited foreign entities.-- The amendments made by subsection (b)(1) shall apply to facilities for which construction begins after June 16, 2025. (3) Excise tax on facilities that receive material assistance from prohibited foreign entities.--The amendments made by subsection (l) shall apply to facilities for which construction begins after June 16, 2025. (4) Penalty for substantial misstatements on certification provided by supplier.--The amendments made by subsection (k) shall apply to certifications provided after December 31, 2025. (5) Termination for wind and solar facilities.--The amendments made by subsection (a) shall apply to facilities the construction of which begins after the date of enactment of this Act. ______ SA 2584. Mr. VAN HOLLEN (for himself, Ms. Alsobrooks, Mr. Kaine, and Mr. Warner) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 90103 and insert the following: SEC. 90103. APPROPRIATION FOR INVESTIGATIONS OF WASTE, FRAUD, AND ABUSE BY THE GOVERNMENT ACCOUNTABILITY OFFICE. In addition to amounts otherwise available, there is appropriated to the Government Accountability Office for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2029, for investigations of waste, fraud, and abuse. ______ SA 2585. Mr. VAN HOLLEN (for himself, Ms. Alsobrooks, Mr. Kaine, and Mr. Warner) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 90103. ______ SA 2586. Mr. DURBIN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. [[Page S4019]] Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section _0003 and insert the following: SEC. _0003. AIR TRAFFIC CONTROL STAFFING AND MODERNIZATION. (a) In General.--For the purpose of the acquisition, construction, sustainment, improvement, and operation of facilities and equipment necessary to improve or maintain aviation safety, and for personnel expenses related to such facilities and equipment, in addition to amounts otherwise made available, there is appropriated to the Administrator of the Federal Aviation Administration for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029-- (1) $2,640,000,000 for air traffic control tower and terminal radar approach control facility replacement, of which not less than $240,000,000 shall be available for Contract Tower Program air traffic control tower replacement and airport sponsor owned air traffic control tower replacement; (2) $2,000,000,000 for air route traffic control center replacement; (3) $3,000,000,000 for radar systems replacement; (4) $4,750,000,000 for telecommunications infrastructure and systems replacement; (5) $500,000,000 for runway safety projects, airport surface surveillance projects, and to carry out section 347 of the FAA Reauthorization Act of 2024; (6) $550,000,000 for unstaffed infrastructure sustainment and replacement; (7) $300,000,000 to carry out section 619 of the FAA Reauthorization Act of 2024; (8) $260,000,000 to carry out section 44745 of title 49, United States Code; and (9) $1,000,000,000 for air traffic controller recruitment, retention, training, and advanced training technologies. (b) Quarterly Reporting.--Not later than 180 days after the date of enactment of this Act, and every 90 days thereafter, the Administrator shall submit to Congress a report that describes any expenditures under this section. ______ SA 2587. Mr. DURBIN submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. PROTECTION AND PRESERVATION OF PATRIOTIC ARTWORK IN FEDERAL BUILDINGS. (a) Definitions.--In this section: (1) Administrator.--The term ``Administrator'' means the Administrator of General Services. (2) Patriotic artwork.--The term ``patriotic artwork'' means artwork acquired and owned or managed by the Fine Arts Collection of the General Services Administration. (3) Public building.-- (A) In general.--The term ``public building'' means a building described in subparagraphs (A) and (B) of section 3301(a)(5) of title 40, United States Code. (B) Inclusions.--The term ``public building'' includes any building described in subparagraph (A) that is-- (i) leased by the Federal Government; or (ii) located in a foreign country. (b) Protection and Preservation of Patriotic Artwork.-- Notwithstanding any other provision of law, the Administrator shall-- (1) ensure that not fewer than 30 dedicated employees of the General Services Administration are available to track, maintain, and protect patriotic artwork in public buildings; and (2) establish a process for the disposition or lease of patriotic artwork. ______ SA 2588. Mr. DURBIN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section 100051, add the following: (13) DACA applications.--Processing applications for deferred action pursuant to the final rule of the Department of Homeland Security entitled ``Deferred Action for Childhood Arrivals'' (87 Fed. Reg. 53152 (August 30, 2022)). (14) Limitation.--None of the funds appropriated under this section may be expended to remove an alien who appears to be prima facie eligible for relief pursuant ``Deferred Action for Childhood Arrivals'' (87 Fed. Reg. 53152 (August 30, 2022)), unless such alien has been convicted of any of the following offenses (excluding any offense for which an essential element is the alien's immigration status, any offense involving civil disobedience without violence, and any minor traffic offense): (A) A felony offense. (B) A significant misdemeanor offense. (C) 3 misdemeanor offenses not arising out of the same act of misconduct. ______ SA 2589. Mr. DURBIN submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title VIII, insert the following: SEC. 8___. NO FUNDING FOR NONCOMPLIANCE WITH 90/10 RULE. None of the funds made available under this title may be used to provide Federal education assistance to a student to attend an institution of higher education that derives less than ten percent of such institution's revenues from sources other than Federal Funds that are disbursed or delivered to or on behalf of a student to be used to attend such institution. ______ SA 2590. Mr. SCHUMER submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title II, insert the following: SEC. __. PROHIBITION ON USE OF FUNDS TO PROCURE OR MODIFY FOREIGN AIRCRAFT FOR PRESIDENTIAL AIRLIFT. None of the funds appropriated or otherwise made available by this Act may be made available for the procurement, modification, restoration, or maintenance of an aircraft previously owned by a foreign government, an entity controlled by a foreign government, or a representative of a foreign government for the purposes of providing presidential airlift options. ______ SA 2591. Mr. SCHUMER (for himself, Ms. Warren, and Mr. Reed) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. PROHIBITION ON USE OF FUNDS TO PROCURE OR MODIFY FOREIGN AIRCRAFT FOR PRESIDENTIAL AIRLIFT. None of the funds appropriated or otherwise made available by this Act may be made available-- (1) for the procurement, modification, restoration, or maintenance of an aircraft previously owned by a foreign government, an entity controlled by a foreign government, or a representative of a foreign government for the purposes of providing presidential airlift options; or (2) to support any entity, project, or contract in which the President or the family of the President has a direct or indirect financial interest. ______ SA 2592. Mr. WYDEN (for himself and Mr. Merkley) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section 50302(a)(3), add the following: (D) Use of proceeds.--Of the monies derived from a timber sale contract entered into to meet the requirements under this paragraph and deposited in the general fund of the Treasury, 25 percent shall be distributed in accordance with the Act of May 23, 1908 (commonly known as the ``Forest Reserve Revenue Act of 1908'') (35 Stat. 260, chapter 192; 16 U.S.C. 500). At the end of section 50302(b)(3), add the following: (D) Use of proceeds.--Amounts derived from a contract entered into to meet the requirements under this paragraph on land subject to the Act of August 28, 1937 (50 Stat. 874, chapter 876; 43 U.S.C. 2601 et seq.), or the Act of May 24, 1939 (53 Stat. 753, chapter 144; 43 U.S.C. 2621 et seq.), shall be distributed in accordance with those Acts. ______ SA 2593. Ms. COLLINS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. 39.6 PERCENT INCOME TAX RATE BRACKET. (a) In General.--Section 1(j)(2) is amended by redesignating subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E) the following new subparagraph: ``(F) 39.6 percent rate bracket.--Notwithstanding subparagraphs (A) through (E), in prescribing the tables under this subsection for purposes of paragraph (3)(B)-- ``(i) the excess, if any, of taxable income over-- ``(I) $50,000,000, in the case of married individuals filing joint returns and surviving spouses, and [[Page S4020]] ``(II) $25,000,000, in any other case, shall be taxed at a rate of 39.6 percent, and ``(ii) paragraph (3)(B)(i) shall be applied with respect to such $50,000,000 and $25,000,000 amounts by substituting `2025' for `2017'.''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SEC. _____. ADDITIONAL FUNDING FOR RURAL HEALTH TRANSFORMATION PROGRAM. Section 2105(h)(1)(A) of the Social Security Act, as added by section 71401(a), is amended-- (1) in clause (i), by striking ``$10,000,000,000'' and inserting ``$22,500,000,000''; and (2) in clause (ii), by striking ``$10,000,000,000'' and inserting ``$22,500,000,000''. ______ SA 2594. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. EXTENSION OF DELAY ON IMPLEMENTATION OF THE NEGATIVE OPTION RULE. The Federal Trade Commission shall not, prior to September 30, 2034, implement, administer, or enforce the provisions of the final rule published by the Federal Trade Commission on November 15, 2024, and titled ``Negative Option Rule'' (89 Fed. Reg. 90476). ______ SA 2595. Mr. LEE submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. MORATORIUM ON IMPLEMENTATION OF CERTAIN RULES RELATING TO THE BUDGET. (a) Office of Information and Regulatory Affairs Appropriation.--In addition to amounts otherwise available, there is appropriated to the Administrator of the Office of Information and Regulatory Affairs for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available through September 30, 2034, for necessary expenses to delay the implementation, administration, and enforcement of budgetary rules, including expenses relating to the appointment and training of personnel, the development of programmatic documents, the procurement of technical services, the purchase of new equipment, and oversight of agency compliance. (b) Guidance.-- (1) In general.--The Administrator of the Office of Information and Regulatory Affairs shall update Circular A-4 of the Office of Management and Budget for the purpose of carrying out this section. (2) Effect and contents.--The updates under paragraph (1) shall-- (A) take effect on October 1, 2026; (B) remain in effect through September 30, 2034; and (C) include guidance requiring agencies to delay, until October 1, 2034, the implementation, administration, and enforcement of any budgetary rule. (c) Definitions.--In this section: (1) Budgetary rule.--The term ``budgetary rule'' means a proposed rule or a final rule that has not been implemented that-- (A) has a budgetary effect that would increase Federal outlays by not less than $100,000,000 during any of fiscal years 2025 through 2034, relative to the baseline of the Office of Management and Budget prepared in accordance with section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 907); and (B) was not required by a provision of Federal statute. (2) Rule.--The term ``rule''-- (A) has the meaning given the term in section 551 of title 5, United States Code; (B) includes a guidance document; and (C) does not include-- (i) any rule of particular applicability, including a rule that approves or prescribes for the future rates, wages, prices, services, or allowances thereof, corporate or financial structures, reorganizations, mergers, or acquisitions thereof, or accounting practices or disclosures bearing on any of the foregoing; (ii) any rule relating to agency management or personnel; or (iii) any rule of agency organization, procedure, or practice that does not substantially affect the rights or obligations of non-agency parties. (d) Adjustment for Inflation.--The amount described in subsection (c)(1)(A) shall be annually adjusted for inflation to reflect the change in the Chained Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor for the applicable year. (e) Exclusion.--The requirements of this section shall not apply to any rulemaking promulgated in relation to the old- age, survivors, and disability insurance benefits program established under title II of the Social Security Act (42 U.S.C. 401 et seq.). ______ SA 2596. Mr. BOOKER submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 40003(a), insert the following after paragraph (12): (12-A) $1,000,000,000 for air traffic controller recruitment, retention, training, and advanced training technologies. ______ SA 2597. Mr. BOOKER submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 40003(a), strike paragraphs (1) and (2) and insert the following: (1) $9,500,000,000 for telecommunications infrastructure modernization and systems upgrades, with priority given to regions with repeated instances of a complete failure of the telecommunication system between TRACON facilities and approaching aircraft; (2) $6,000,000,000 for radar systems replacement, with priority given to the regions described in paragraph (1); ______ SA 2598. Mr. BOOKER submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of subtitle A of title VII, insert the following: CHAPTER 7--RAISE ACT SEC. 70701. SHORT TITLE. This chapter may be cited as the ``Respect, Advancement, and Increasing Support for Educators Act of 2025'' or the ``RAISE Act of 2025''. SEC. 70702. REFUNDABLE TEACHER TAX CREDIT. (a) Allowance of Tax Credit.-- (1) In general.--Subpart C of part IV of subchapter A of chapter 1 is amended by inserting after section 36B the following new section: ``SEC. 36C. TEACHER TAX CREDIT. ``(a) Credit Allowed.--In the case of an individual who is an eligible educator during school years ending with or within the taxable year, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to the sum of-- ``(1) $1,000, plus ``(2) in the case of an eligible educator who is employed at a qualifying school, the applicable amount. ``(b) Applicable Amount.--For purposes of subsection (a), the applicable amount is the amount which bears the same ratio (not to exceed one) to $14,000 ($9,000, in the case of any early childhood educator without a bachelor's degree) as-- ``(1) the number of percentage points by which the student poverty ratio for such qualifying school exceeds 39 percent, bears to ``(2) 36 percentage points. ``(c) Eligible Educator.--For purposes of this section-- ``(1) In general.--The term `eligible educator' means-- ``(A) any elementary or secondary teacher, and ``(B) any early childhood educator. ``(2) Elementary or secondary teacher.-- ``(A) In general.--The term `elementary or secondary teacher' means an individual who-- ``(i) is a teacher of record who provides direct classroom teaching (or classroom-type teaching in a nonclassroom setting) in a public elementary school or a public secondary school for not less than 75 percent of the normal or statutory number of hours of work for a full-time teacher over a complete school year (as determined by the State in which the school is located), ``(ii) meets the applicable requirements for State certification and licensure in the State in which such school is located in the subject area in which the individual is the teacher of record, and ``(iii) has met the requirements of clauses (i) and (ii) for a period of not less than 1 year before the first day of the taxable year. ``(B) Teacher of record.--For purposes of subparagraph (A), the term `teacher of record' means a teacher who has been assigned the responsibility for specified pupils' learning in a grade, subject, or course as reflected on the school's official record of attendance. ``(3) Early childhood educator.--The term `early childhood educator' means an individual who-- ``(A) has a Child Development Associate credential (or an equivalent credential), or has an associate's degree or higher, ``(B) meets the applicable requirements for State certification, licensure, or permitting under State law for early childhood education, ``(C) has primary responsibility for the learning and development of children in an [[Page S4021]] early childhood education program (as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) for not less than 75 percent of the normal or statutory number of hours of work for a full-time teacher over a complete program year, as determined by the Secretary of Health and Human Services, and ``(D) has met the requirements of subparagraphs (A), (B), and (C) for a period of not less than 1 year before the first day of the taxable year. ``(d) Qualifying School.-- ``(1) In general.--The term `qualifying school' means, with respect to any school year-- ``(A) a public elementary school or a public secondary school that-- ``(i) is served by a local educational agency that is eligible in such year for assistance pursuant to part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.), or ``(ii) is served by an educational service agency, or a location operated by an educational service agency, that is eligible, for the year in which the determination is made, for assistance under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.), ``(B) an elementary school or secondary school that is funded by the Bureau of Indian Education, or ``(C) an early childhood education program (as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) that serves children who receive, or are eligible for, services for which financial assistance is provided in accordance with the Child Care and Development Block Grant of 1990 (42 U.S.C. 9857 et seq.) or the child and adult care food program established under section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766). ``(2) ESEA definitions.--For purposes of this subsection, the terms `educational service agency', `elementary school', `local educational agency', `secondary school', and `State educational agency' have the meanings given such terms in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801). ``(e) Student Poverty Ratio.-- ``(1) In general.--The term `student poverty ratio' means-- ``(A) with respect to any qualifying school described in subparagraph (A) or (B) of subsection (d)(1), the ratio (expressed as a percentage) of-- ``(i) the total number of children served at such qualifying school meeting at least one measure of poverty described in section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6313(a)(5)), to ``(ii) the total number of children served at such qualifying school, and ``(B) with respect to any qualifying school described in subsection (d)(1)(C), the ratio (expressed as a percentage) of-- ``(i) the total number of children attending such qualifying school who are eligible for services under the Child Care and Development Block Grant of 1990 (42 U.S.C. 9857 et seq.) or for the child and adult care food program established under section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766), to ``(ii) the total number of children attending such qualifying school. ``(2) Determination of ratio.--In determining the student poverty ratio with respect to a qualifying school under paragraph (1)(A), the Secretary shall use the same measure of poverty as is used for purposes of determining the allocation of funds under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) with respect to the qualifying school. ``(f) Inflation Adjustment.-- ``(1) In general.--In the case of any taxable year beginning after 2026, each of the dollar amounts in subsections (a) and (b) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting in subparagraph (A)(ii) thereof `calendar year 2025' for `calendar year 2016'. ``(2) Rounding.--If any increase determined under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.''. (2) Conforming amendments.-- (A) The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 36B the following new item: ``Sec. 36C. Teacher tax credit.''. (B) Section 6211(b)(4)(A) is amended by inserting ``36C,'' after ``36B,''. (C) Section 1324(b)(2) of title 31, United States Code, is amended by inserting ``36C,'' after ``36B,''. (b) Information Sharing.-- (1) In general.--The Secretary of Education shall-- (A) collect such information as necessary for purposes of determining whether a school is a qualifying school (as defined in section 36C of the Internal Revenue Code of 1986, as added by subsection (a)) and the appropriate amount of tax credit under such section; and (B) provide such information to the Secretary of the Treasury (or the Secretary's delegate). (2) Information for the secretary of education.--As a condition of receiving Federal funds and if requested by the Secretary of Education, each qualifying school shall collect and submit to the Secretary of Education such information as may be necessary to enable the Secretary of Education to carry out paragraph (1). (c) Supplementation of Funds.-- (1) Elementary and secondary education.--A State educational agency or local educational agency (as such terms are defined in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)) shall not reduce or adjust any teacher pay or teacher loan forgiveness program due to the eligibility of teachers within the jurisdiction of such agency for the tax credit under section 36C of the Internal Revenue Code of 1986. Each State educational agency and local educational agency (as so defined), upon request by the Secretary of the Treasury, shall demonstrate that the methodology used to allocate teacher pay and teacher loan forgiveness (if applicable) to qualifying schools (as defined in section 36C(d) of such Code) ensures that each such school receives the same State and local funds for teacher compensation it would receive if the credit under such section 36C had not been enacted. (2) Early childhood education.--An agency or other entity that funds, licenses, or regulates an early childhood education program (as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) shall not reduce or adjust any teacher pay or teacher loan forgiveness program, or permit such a reduction or adjustment in the early childhood education program, due to the eligibility of teachers within the jurisdiction of such agency for the tax credit under section 36C of the Internal Revenue Code of 1986. Each such agency or entity, upon request by the Secretary of the Treasury, shall demonstrate that the methodology used to allocate teacher pay and teacher loan forgiveness (if applicable) to such early childhood education programs ensures that each such program receives the same State and local funds for teacher compensation it would receive if the credit under such section 36C had not been enacted. (d) Employer Limitations.-- (1) Prohibition of use in collective bargaining.--An employer that engages in collective bargaining with employees who are eligible educators, as defined in section 36C(c) of the Internal Revenue Code of 1986, shall not include the amount of the teacher tax credit under section 36C of such Code in determining the amount of salary or other compensation provided to any employee under the collective bargaining agreement. (2) Prohibition of use as punishment or retribution.--An employer of an eligible educator, as defined in section 36C of the Internal Revenue Code of 1986, shall not change the work assignment or location of the eligible educator if one of the primary reasons for the change is to-- (A) prevent the eligible educator from receiving a teacher tax credit under section 36C of such Code; or (B) reduce the amount of the teacher tax credit that the eligible educator will receive. (3) Enforcement.--Notwithstanding any other provision of law, the Federal Labor Relations Authority shall have the authority to investigate and enforce any alleged violation of this section in the same manner, and subject to the same procedures, as would apply to an allegation of an unfair labor practice under section 7118 of title 5, United States Code. (4) Definition.--In this subsection-- (A) the term ``affecting commerce'' has the meaning given the term in section 2 of the National Labor Relations Act (29 U.S.C. 152); (B) the term ``employee'' means an employee of an employer who is employed in a business of an employer that affects commerce; and (C) the term ``employer'' means a person, including a State or political subdivision of a State, engaged in a business affecting commerce. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. SEC. 70703. INCREASE IN AND EXPANSION OF DEDUCTION FOR EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS. (a) Increase.-- (1) In general.--Subparagraph (D) of section 62(a)(2) is amended by striking ``$250'' and inserting ``$500''. (2) Inflation adjustment.--Section 62(d)(3) is amended-- (A) by striking ``2015'' and inserting ``2026''; (B) by striking ``the $250 amount'' and inserting ``each of the dollar amounts''; and (C) by striking ``2014'' in subparagraph (B) thereof and inserting ``2025''. (b) Expansion to Early Childhood Educators.--Section 62(d)(1)(A) is amended-- (1) by striking ``who is a kindergarten'' and inserting "who is-- `` ``(i) a kindergarten''; (2) by striking the period at the end and inserting ``, or''; and (3) by adding at the end the following new subparagraph: ``(ii) an early childhood educator (as defined in section 200 of the Higher Education Act of 1965 (20 U.S.C. 1021)) in an early childhood education program (as defined in section 103 of such Act (20 U.S.C. 1003)) for at least 1,020 hours during a year.''. (c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act. [[Page S4022]] SEC. 70704. MANDATORY FUNDING TO SUPPORT LOCAL EDUCATIONAL AGENCIES THAT MAINTAIN OR INCREASE TEACHER SALARIES. Section 2003 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6603) is amended-- (1) in the section heading, by striking ``authorization of appropriations'' and inserting ``funding''; and (2) by striking subsection (a) and inserting the following: ``(a) Appropriations for Part A.-- ``(1) In general.--There are authorized to be appropriated, and there are appropriated, out of any funds not otherwise appropriated-- ``(A) for fiscal year 2026, $5,200,000,000 to carry out part A; and ``(B) for fiscal year 2027 and each succeeding fiscal year, the amount appropriated under this paragraph for the preceding year, increased by a percentage equal to the annual percentage increase in the Consumer Price Index for All Urban Consumers published by the Department of Labor for the most recent calendar year. ``(2) Reservation for teacher salary incentive grants.-- ``(A) Definitions.--In this paragraph: ``(i) Eligible local educational agency.--The term `eligible local educational agency' means a local educational agency that, for the preceding school year, maintained or increased the salary schedule for all teachers employed by the local educational agency. ``(ii) Teacher salary incentive reservation.--The term `teacher salary incentive reservation' means, for each fiscal year, the amount that is 20 percent of the amount by which the funds appropriated under paragraph (1) for the fiscal year exceeds $2,200,000,000. ``(B) In general.--For each fiscal year for which the total amount appropriated under paragraph (1) is greater than $2,200,000,000, the Secretary shall, after making any reservations under section 2101(a), reserve and use the teacher salary incentive reservation to award grants, based on allotments under subparagraph (C), to eligible local educational agencies for purposes described in subparagraph (E). ``(C) Allotments.--An allotment under this subparagraph for a fiscal year to an eligible local educational agency shall bear the same relationship to the teacher salary incentive reservation as the number of children counted under section 1124(c) who are served by the local educational agency bears to the total number of such children counted under such section served by all eligible local educational agencies that submitted an application under subparagraph (D). ``(D) Application.--An eligible local educational agency desiring an allotment under this paragraph shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. ``(E) Use of funds.--A local educational agency receiving an allotment under subparagraph (C) may use the allotment to carry out one or more of the following: ``(i) Comprehensive teacher or school leader preparation programs described subsection (d), (e), or (f) of section 202 of the Higher Education Act of 1965. ``(ii) Support for teachers to earn certifications or credentials in high-need fields or advanced credentials, such as certification or credentialing by the National Board for Professional Teaching Standards. ``(iii) Teacher leadership programs. ``(iv) Induction or mentoring programs for new teachers, principals, or other school leaders. ``(v) High-quality research-based professional development. ``(vi) Other activities approved by the Secretary that-- ``(I) promote and strengthen the teaching profession; ``(II) attract, retain, and diversify the educator workforce; or ``(III) advance the skills and efficacy of the educator workforce. ``(F) Supplement, not supplant.--A local educational agency receiving an allotment under subparagraph (C) shall use the allotment to supplement, and not supplant, any State funds or efforts to raise teacher pay.''. ______ SA 2599. Mr. BOOKER submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 10303(b). Strike sections 10306 through 10308 and insert the following: SEC. 1____. REINSTATEMENT OF LOCAL FOOD COOPERATIVE AGREEMENTS. (a) In General.--There is appropriated to the Secretary of Agriculture, out of amounts in the Treasury not otherwise appropriated, $866,000,000 for fiscal year 2026, to remain available until expended, for the immediate reinstatement of each cooperative agreement entered into with a State, territory, or Tribal government under a local food cooperative agreement program that was terminated during the period beginning on March 1, 2025, and ending on the date of enactment of this Act. (b) Allocation.--The Secretary of Agriculture shall allocate and immediately transfer the amount made available by subsection (a) for cooperative agreements among States, territories, and Tribal governments described in that subsection by prorating the amounts originally allocated to the States, territories, and Tribal governments under the cooperative agreements that were terminated during the period described in that subsection. (c) Cancellation.--The Secretary of Agriculture shall not cancel any cooperative agreement in effect as of the date of enactment of this Act or reinstated under this section under a local food cooperative agreement program for any reason other than fraud or malfeasance. (d) Local Food Cooperative Agreement Program Defined.--In this section, the term ``local food cooperative agreement program'' means-- (1) the Local Food Purchase Assistance Cooperative Agreement Program Plus authorized by section 5(c) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c(c)) (or any successor similar program authorized by that section, such as the Local Food Purchase Assistance Cooperative Agreement Program 2025); and (2) the Local Food for Schools Cooperative Agreement Program authorized by that section (or any successor similar program authorized by that section, such as the Local Food for Schools Cooperative Agreement Program 2025). ______ SA 2600. Mr. SCHIFF submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 10104. ______ SA 2601. Mr. SCHIFF (for himself and Ms. Hirono) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of subtitle A of title IX, add the following: SEC. 90008. RESTRICTION ON IMMIGRATION ENFORCEMENT AT FARMS. No funds made available under this title may be used by any Federal, State, or local agency to carry out an immigration enforcement operation at a farm unless executing a judicial warrant of a violent criminal. ______ SA 2602. Mrs. BLACKBURN (for herself and Mr. Cruz) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 40012 and insert the following: SEC. 40012. SUPPORT FOR ARTIFICIAL INTELLIGENCE UNDER THE BROADBAND EQUITY, ACCESS, AND DEPLOYMENT PROGRAM. (a) In General.--Section 60102 of division F of Public Law 117-58 (47 U.S.C. 1702) is amended-- (1) in subsection (a)(2)-- (A) by redesignating subparagraphs (B) through (N) as subparagraphs (F) through (R), respectively; (B) by redesignating subparagraph (A) as subparagraph (D); (C) by inserting before subparagraph (D), as so redesignated, the following: ``(A) Artificial intelligence.--The term `artificial intelligence' has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401). ``(B) Artificial intelligence model.--The term `artificial intelligence model' means a software component of an information system that implements artificial intelligence technology and uses computational, statistical, or machine- learning techniques to produce outputs from a defined set of inputs. ``(C) Artificial intelligence system.--The term `artificial intelligence system' means any data system, software, hardware, application, tool, or utility that operates, in whole or in part, using artificial intelligence.''; (D) by inserting after subparagraph (D), as so redesignated, the following: ``(E) Automated decision system.--The term `automated decision system' means any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues a simplified output, including a score, classification, or recommendation, to materially influence or replace human decision making.''; and (E) by striking subparagraph (O), as so redesignated, and inserting the following: ``(O) Project.--The term `project' means an undertaking by a subgrantee under this section to construct and deploy infrastructure for the provision of-- ``(i) broadband service; or ``(ii) artificial intelligence models, artificial intelligence systems, or automated decision systems.''; [[Page S4023]] (2) in subsection (b), by adding at the end the following: ``(5) Appropriation for fiscal year 2025.-- ``(A) In general.--In addition to any amounts otherwise appropriated to the Program, there is appropriated to the Assistant Secretary for fiscal year 2025, out of any funds in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2030, to carry out the Program. ``(B) Set-aside for artificial intelligence infrastructure master services agreements.--Of the amount appropriated under subparagraph (A), $25,000,000 shall be used by the Assistant Secretary for the purpose of negotiating master services agreements on behalf of subgrantees of an eligible entity or political subdivision to enable access to quantity purchasing and licensing discounts for the construction, acquisition, and deployment of infrastructure for the provision of artificial intelligence models, artificial intelligence systems, or automated decision systems funded under this section.''; (3) in subsection (f)-- (A) in paragraph (5), by striking ``and'' at the end; (B) by redesignating paragraph (6) as paragraph (7); and (C) by inserting after paragraph (5) the following: ``(6) the construction and deployment of infrastructure for the provision of artificial intelligence models, artificial intelligence systems, or automated decision systems; and''; (4) in subsection (g)(3), by striking subparagraph (B) and inserting the following: ``(B) may, in addition to other authority under applicable law, deobligate grant funds awarded to an eligible entity that-- ``(i) violates paragraph (2); ``(ii) demonstrates an insufficient level of performance, or wasteful or fraudulent spending, as defined in advance by the Assistant Secretary; or ``(iii) if obligated any funds made available under subsection (b)(5)(A), is not in compliance with subsection (q) or (r); and''; (5) in subsection (j)(1)-- (A) in subparagraph (A)-- (i) in clause (iii), by striking ``and'' at the end; (ii) by redesignating clause (iv) as clause (v); and (iii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r); and''; (B) in subparagraph (B)-- (i) in clause (iii), by striking ``and'' at the end; (ii) by redesignating clause (iv) as clause (v); and (iii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r); and''; and (C) in subparagraph (C)-- (i) by redesignating clauses (iv) and (v) as clauses (v) and (vi), respectively; and (ii) by inserting after clause (iii) the following: ``(iv) certifies that the eligible entity, if obligated any funds made available under subsection (b)(5)(A), is in compliance with subsections (q) and (r);''; and (6) by adding at the end the following: ``(p) Receipt of Funds Conditioned on Temporary Pause and Efficiencies.--On and after the date of enactment of this subsection, no funds made available under subsection (b)(5)(A) may be obligated to an eligible entity or a political subdivision thereof that is not in compliance with subsections (q) and (r). ``(q) Temporary Pause.-- ``(1) In general.--Except as provided in paragraph (2), no eligible entity or political subdivision thereof to which funds made available under subsection (b)(5)(A) are obligated on or after the date of enactment of this subsection may enforce, during the 5-year period beginning on the date of enactment of this subsection, any law or regulation of that eligible entity or a political subdivision thereof limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce. ``(2) Rule of construction.--Paragraph (1) may not be construed to prohibit the enforcement of any law or regulation-- ``(A)(i) the primary purpose and effect of which is to-- ``(I) remove legal impediments to, or facilitate the deployment or operation of, an artificial intelligence model, artificial intelligence system, or automated decision system; or ``(II) streamline licensing, permitting, routing, zoning, procurement, or reporting procedures related to the adoption or deployment of artificial intelligence models, artificial intelligence systems, or automated decision systems; or ``(ii) that does not impose any substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirement on artificial intelligence models, artificial intelligence systems, or automated decision systems unless that requirement is imposed under-- ``(I) Federal law; or ``(II) a generally applicable law or regulation, such as a law or regulation pertaining to unfair or deceptive acts or practices, child online safety, child sexual abuse material, rights of publicity, protection of a person's name, image, voice, or likeness and any necessary documentation for enforcement, or a body of common law, that may address, without undue or disproportionate burden, artificial intelligence models, artificial intelligence systems, or automated decision systems to reasonably effectuate the broader underlying purposes of the law or regulation; and ``(B) that does not impose a fee or bond unless-- ``(i) the fee or bond is reasonable and cost-based; and ``(ii) under the fee or bond, artificial intelligence models, artificial intelligence systems, and automated decision systems are treated in the same manner as other models and systems that perform comparable functions. ``(r) Master Services Agreements.--An eligible entity, or political subdivision thereof, to which funds made available under subsection (b)(5)(A) are obligated on or after the date of enactment of this subsection shall certify to the Assistant Secretary either that-- ``(1) each subgrantee of the eligible entity or political subdivision is utilizing applicable master services agreements negotiated using amounts made available under subsection (b)(5)(B); or ``(2) each contract, license, purchase order, or services agreement entered into, procured, or made by a subgrantee of the eligible entity or political subdivision for purposes described in subsection (b)(5)(B) is at least as cost- effective as the terms of executable master services agreements, as applicable, negotiated by the Assistant Secretary using amounts made available under subsection (b)(5)(B).''. (b) Technical and Conforming Amendments.--Section 60102(a)(1) of division F of Public Law 117-58 (47 U.S.C. 1702(a)(1)) is amended-- (1) in subparagraph (B), by striking ``a project'' and inserting ``a project described in subsection (a)(2)(O)(i)''; and (2) in subparagraph (D), by striking ``a project'' and inserting ``a project described in subsection (a)(2)(O)(i)''. ______ SA 2603. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike paragraphs (8) and (9) of section 40003(a) and insert the following: (8) $1,000,000,000 to support the modernization and replacement of FAA air traffic control towers (in this subsection referred to as ``ATCT'') and terminal radar approach control facilities (in this subsection referred to as ``TRACONs'' ), including the analysis and identification of TRACONs for modernization and replacement, and other appropriate activities for carrying out the establishment of brand new TRACONs; ______ SA 2604. Mr. LUJAN submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title II, insert the following: SEC. 2___. PROHIBITION ON FUNDING FOR UPGRADING THE AIR FORCE ONE FLEET. Notwithstanding any other provision of law, none of the funds made available under this title may be used to upgrade a plane gifted by the government of Qatar for use by the United States Government in the Air Force One fleet. ______ SA 2605. Mr. LUJAN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. REPEAL OF CERTAIN PROVISIONS. (a) Internal Revenue Code of 1986.--The amendments made by the following provisions of this Act are repealed, and the Internal Revenue Code of 1986 shall be applied as if such amendments had not been enacted: (1) Section 70506 (relating to termination of residential energy credit). (2) Section 70512 (relating to phase-out and restrictions on clean electricity production credit). (3) Section 70513 (relating to phase-out and restrictions on clean electricity investment credit). (4) Section 70514(relating to phase-out and restrictions on advanced manufacturing production credit). (b) Effective Date.--The repeals made by this section shall take effect as if included in the enactment of the section to which they relate. ______ SA 2606. Mr. LUJAN submitted an amendment intended to be proposed to [[Page S4024]] amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike sections 60004, 60005, and 60012. ______ SA 2607. Mr. LUJAN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 60002 (relating to repeal of greenhouse gas reduction fund). ______ SA 2608. Mr. LUJAN submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70105 and insert the following: SEC. 70105. MODIFICATION OF 199A DEDUCTION. (a) Deduction Allowed for First $25,000 of Qualified Business Income.-- (1) In general.--Section 199A(b)(1) is amended to read as follows: ``(1) In general.--The term `combined qualified business income amount' means, with respect to any taxable year, an amount equal to the lesser of-- ``(A) the sum of the taxpayer's qualified business income for each qualified trade or business carried on by the taxpayer, or ``(B) $25,000.''. (2) Conforming amendments.-- (A) Section 199A(a)(2) is amended by striking ``20 percent of''. (B) Section 199A(b) is amended by striking paragraph (2). (b) Consolidated Taxpayer Level Adjusted Gross Income Limitation.--Section 199A(b), as amended by subsection (a), is amended-- (1) by striking paragraph (3), and (2) by inserting after paragraph (1) the following new paragraph: ``(2) Adjusted gross income limitation.--The combined qualified business income of the taxpayer for the taxable year shall be reduced (but not below zero) by so much of the amount by which the adjusted gross income of the taxpayer exceeds $200,000 ($400,000 in the case of a joint return).''. (c) Simplification With Respect to Loss Carryover.--Section 199(c) is amended by striking paragraph (2). (d) Other Conforming Amendments.-- (1)(A) Section 199A(b) is amended by striking paragraph (4). (B) Section 199A(g)(1)(B)(ii) is amended to read as follows: ``(ii) W-2 wages.--For purposes of this subparagraph-- ``(I) In general.--The term `W-2 wages' means, with respect to any person for any taxable year of such person, the amounts described in paragraphs (3) and (8) of section 6051(a) paid by such person with respect to employment of employees by such person during the calendar year ending during such taxable year. ``(II) Must be properly allocable to domestic production gross receipts.--The W-2 wages of the taxpayer shall not include any amount which is not properly allocable to domestic production gross receipts for purposes of paragraph (3)(A). ``(III) Return requirement.--Such term shall not include any amount which is not properly included in a return filed with the Social Security Administration on or before the 60th day after the due date (including extensions) for such return.''. (C) Section 199A(f)(1) is amended-- (i) by inserting ``and'' at the end of subparagraph (A)(i), (ii) by striking ``, and'' at the end of subparagraph (A)(ii), (iii) by striking clause (iii), (iv) by striking ``For purposes of clause (iii)'' and all that follows through ``For purposes of this subparagraph'' and inserting ``For purposes of this subparagraph'', and (v) by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B). (2)(A) Section 199A(b) is amended by striking paragraph (5). (B) Section 199A(g)(5) is amended by adding at the end the following new subparagraph: ``(F) Acquisitions, dispositions, and short taxable years.--The Secretary shall provide for the application of this subsection in cases of a short taxable year or where the taxpayer acquires, or disposes of, the major portion of a trade or business or the major portion of a separate unit of a trade or business during the taxable year.''. (3) Section 199A(b) is amended by striking paragraph (6). (4)(A) Section 199A(b) is amended by redesignating paragraph (7) as paragraph (3). (B) Section 199A(b)(3) (as so redesignated) is amended by striking ``under paragraph (2)'' and inserting ``under paragraph (1)(A)''. (5) Section 199A(d) is amended to read as follows: ``(d) Qualified Trade or Business.--For purposes of this section, the term `qualified trade or business' means any trade or business other than the trade or business of performing services as an employee.''. (6) Section 199A(e) is amended to read as follows: ``(e) Taxable Income Defined.--For purposes of this section, except as otherwise provided in subsection (g)(2)(B), taxable income shall be computed without regard to any deduction allowable under this section.''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2609. Ms. CANTWELL (for herself and Mr. Durbin) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 40003(a)(2) and insert the following: (2) $3,000,000,000 for radar systems replacement, of which not less than $150,000,000 shall be available to hire, train, and recruit airway transportation system specialists that support and repair air traffic control and navigation systems; ______ SA 2610. Ms. CANTWELL (for herself and Mr. Durbin) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike paragraphs (7), (8), and (9) of section 40003(a) and insert the following: (7) $1,900,000,000 for necessary actions to replace and construct new air route traffic control centers (in this subsection referred to as ``ARTCCs''), of which not less than $900,000,000 shall be available for airport traffic control tower (in this subsection referred to as ``ATCT'') modernization and replacement: Provided, That not more than 2 percent of such amount is used for planning or administrative purposes; (8) $1,000,000,000 to support the modernization and replacement of terminal radar approach control facilities (in this subsection referred to as ``TRACONs''), the analysis and identification of TRACONs for modernization and replacement, and other appropriate activities for carrying out the establishment of brand new TRACONs; ______ SA 2611. Ms. CANTWELL (for herself and Mr. Durbin) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike paragraphs (7), (8), and (9) of section 40003(a) and insert the following: (7) $1,900,000,000 for necessary actions to replace and construct new air route traffic control centers (in this subsection referred to as ``ARTCCs''), of which not less than $1,000,000,000 shall be available for air traffic controller hiring, retention, and training; (8) $1,000,000,000 to support the modernization and replacement of terminal radar approach control facilities (in this subsection referred to as ``TRACONs''), the analysis and identification of TRACONs for modernization and replacement, and other appropriate activities for carrying out the establishment of brand new TRACONs; ______ SA 2612. Ms. CANTWELL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 1181 of title 14, United States Code (as added by section 40001), in the matter preceding paragraph (1), strike ``$24,593,500,000'' and insert ``$24,383,500,000''. In section 1181(11) of title 14, United States Code (as added by section 40001), strike ``$2,200,000,000'' and insert ``$1,990,000,000''. Strike paragraph (8) of section 40003(a). Strike section 40010. ______ SA 2613. Ms. CANTWELL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike subsection (c) of section 225 of the Internal Revenue Code of 1986, as added by section 70202(a), and insert the following: ``(c) Qualified Overtime Compensation.--For purposes of this section, the term `qualified overtime compensation' means compensation that is paid to a taxpayer-- ``(1) at a rate that is in excess of the regular rate at which the taxpayer is employed, and ``(2) for work for a single employer performed at a rate required pursuant to-- [[Page S4025]] ``(A) section 7 of the Fair Labor Standards Act of 1938, ``(B) an agreement that-- ``(i) is a collective bargaining agreement or an agreement or understanding arrived at between the employer and the employee before performance of the work, and ``(ii) requires the work to be in excess of a maximum number of hours for a specified period of time that is not less than 40 hours for a 7-day work period, or ``(C)(i) an agreement or arrangement, including a collective bargaining agreement, between an employee who is a crewmember (including a flight crewmember), or labor organization representing such employees, and an employer who are covered by the Railway Labor Act that provides for premium pay for work beyond scheduled hours on duty or for hours on duty that exceed a monthly maximum, or ``(ii) any other agreement or arrangement, including a collective bargaining agreement, between an employee (or a labor organization representing employees) and an employer who are covered by the Railway Labor Act.''. ______ SA 2614. Ms. CANTWELL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 40002 and insert the following: SEC. 40002. SPECTRUM AUCTIONS. (a) Definitions.--In this section: (1) Assistant secretary.--The term ``Assistant Secretary'' means the Assistant Secretary of Commerce for Communications and Information. (2) Commission.--The term ``Commission'' means the Federal Communications Commission. (3) Covered band.--The term ``covered band''-- (A) except as provided in subparagraph (B), means the band of frequencies between 1.3 gigahertz and 10.5 gigahertz; and (B) does not include-- (i) the band of frequencies between 3.1 gigahertz and 3.45 gigahertz for purposes of auction, reallocation, modification, or withdrawal; (ii) the band of frequencies between 3.55 gigahertz and 3.7 gigahertz for purposes of auction, reallocation, modification, or withdrawal; (iii) the band of frequencies between 5.925 gigahertz and 7.125 gigahertz for purposes of auction, reallocation, modification, or withdrawal; or (iv) the band of frequencies between 7.4 gigahertz and 8.4 gigahertz for purposes of auction, reallocation, modification, or withdrawal. (4) Full-power commercial licensed use cases.--The term ``full-power commercial licensed use cases'' means flexible use wireless broadband services with base station power levels sufficient for high-power, high-density, and wide-area commercial mobile services, consistent with the service rules under part 27 of title 47, Code of Federal Regulations, or any successor regulations, for wireless broadband deployments throughout the covered band. (b) General Auction Authority.-- (1) Amendment.--Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)) is amended by striking ``grant a license or permit under this subsection shall expire March 9, 2023'' and all that follows and inserting the following: ``complete a system of competitive bidding under this subsection shall expire September 30, 2034, except that, with respect to the electromagnetic spectrum-- ``(A) between the frequencies of 3.1 gigahertz and 3.45 gigahertz, such authority shall not apply; ``(B) between the frequencies of 3.55 gigahertz and 3.7 gigahertz, such authority shall not apply; ``(C) between the frequencies of 5.925 gigahertz and 7.125 gigahertz, such authority shall not apply; and ``(D) between the frequencies of 7.4 gigahertz and 8.4 gigahertz, such authority shall not apply.''. (2) Spectrum auctions.--The Commission shall grant licenses through systems of competitive bidding, before the expiration of the general auction authority of the Commission under section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by paragraph (1) of this subsection, for not less than 300 megahertz, including by completing a system of competitive bidding not later than 2 years after the date of enactment of this Act for not less than 100 megahertz in the band between 3.98 gigahertz and 4.2 gigahertz. (c) Identification for Reallocation.-- (1) In general.--The Assistant Secretary, in consultation with the Commission, shall identify 500 megahertz of frequencies in the covered band for reallocation to non- Federal use, shared Federal and non-Federal use, or a combination thereof, for full-power commercial licensed use cases, that-- (A) as of the date of enactment of this Act, are allocated for Federal use; and (B) shall be in addition to the 300 megahertz of frequencies for which the Commission grants licenses under subsection (b)(2). (2) Schedule.--The Assistant Secretary shall identify the frequencies under paragraph (1) according to the following schedule: (A) Not later than 2 years after the date of enactment of this Act, the Assistant Secretary shall identify not less than 200 megahertz of frequencies within the covered band. (B) Not later than 4 years after the date of enactment of this Act, the Assistant Secretary shall identify any remaining bandwidth required to be identified under paragraph (1). (3) Required analysis.-- (A) In general.--In determining under paragraph (1) which specific frequencies within the covered band to reallocate, the Assistant Secretary shall determine the feasibility of the reallocation of frequencies. (B) Requirements.--In conducting the analysis under subparagraph (A), the Assistant Secretary shall assess net revenue potential, relocation or sharing costs, as applicable, and the feasibility of reallocating specific frequencies, with the goal of identifying the best approach to maximize net proceeds of systems of competitive bidding for the Treasury, consistent with section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)). (d) Auctions.--The Commission shall grant licenses for the frequencies identified for reallocation under subsection (c) through systems of competitive bidding in accordance with the following schedule: (1) Not later than 4 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for not less than 200 megahertz of the frequencies. (2) Not later than 8 years after the date of enactment of this Act, the Commission shall, after notifying the Assistant Secretary, complete 1 or more systems of competitive bidding for any frequencies identified under subsection (c) that remain to be auctioned after compliance with paragraph (1) of this subsection. (e) Limitation.--The President shall modify or withdraw any frequency proposed for reallocation under this section not later than 60 days before the commencement of a system of competitive bidding scheduled by the Commission with respect to that frequency, if the President determines that such modification or withdrawal is necessary to protect the national security of the United States. ______ SA 2615. Ms. CANTWELL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 40002 and insert the following: SEC. 40002. SPECTRUM AUCTIONS. Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)) is amended by striking ``grant a license or permit under this subsection shall expire March 9, 2023'' and all that follows and inserting the following: ``complete a system of competitive bidding under this subsection shall expire September 30, 2034.''. ______ SA 2616. Ms. CANTWELL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 40002(b)(2), strike ``, including by completing a system of competitive bidding not later than 2 years after the date of enactment of this Act for not less than 100 megahertz in the band between 3.98 gigahertz and 4.2 gigahertz''. ______ SA 2617. Mr. BARRASSO submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place in title VII, insert the following: SEC. __. EXPANDING AND CLARIFYING THE EXCLUSION FOR ORPHAN DRUGS UNDER THE DRUG PRICE NEGOTIATION PROGRAM. Section 1192(e) of the Social Security Act (42 U.S.C. 1320f-1(e)) is amended-- (1) in paragraph (1), by adding at the end the following new subparagraph: ``(C) Treatment of former orphan drugs.--In calculating the amount of time that has elapsed with respect to the approval of a drug or licensure of a biological product under subparagraph (A)(ii) and subparagraph (B)(ii), respectively, the Secretary shall not take into account any period during which such drug or product was a drug described in paragraph (3)(A).''; and (2) in paragraph (3)(A)-- (A) by striking ``only one rare disease or condition'' and inserting ``one or more rare diseases or conditions''; and (B) by striking ``such disease or condition'' and inserting ``one or more rare diseases or conditions (as such term is defined in section [[Page S4026]] 526(a)(2) of the Federal Food, Drug, and Cosmetic Act)''. ______ SA 2618. Ms. CANTWELL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section 40002(c)(3), add the following: (C) Certification.--In conducting the analysis under subparagraph (A), the Assistant Secretary shall certify that reallocation of any specific frequencies identified for commercial use would not negatively impact the primary mission of the National Aeronautics and Space Administration. ______ SA 2619. Ms. CANTWELL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by section 40002(b)(1), strike subparagraphs (A) and (B) and insert the following: ``(A) between the frequencies of 3.1 gigahertz and 3.45 gigahertz, such authority shall not apply; ``(B) between the frequencies of 7.4 gigahertz and 8.4 gigahertz, such authority shall not apply; and ``(C) in any band of frequencies of which the National Aeronautics and Space Administration is the primary user, such authority shall not apply.''. ______ SA 2620. Ms. CANTWELL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section 40002(c)(3), add the following: (C) Certification.--In conducting the analysis under subparagraph (A), the Assistant Secretary shall certify that reallocation of any specific frequencies identified for commercial use would not negatively impact the primary mission of the National Oceanic and Atmospheric Administration. ______ SA 2621. Ms. CANTWELL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by section 40002(b)(1), strike subparagraphs (A) and (B) and insert the following: ``(A) between the frequencies of 3.1 gigahertz and 3.45 gigahertz, such authority shall not apply; ``(B) between the frequencies of 7.4 gigahertz and 8.4 gigahertz, such authority shall not apply; and ``(C) in any band of frequencies of which the National Oceanic and Atmospheric Administration is the primary user, such authority shall not apply.''. ______ SA 2622. Ms. CANTWELL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section 40002(c)(3), add the following: (C) Certification.--In conducting the analysis under subparagraph (A), the Assistant Secretary shall certify that reallocation of any specific frequencies identified for commercial use would not negatively impact the primary mission of the Coast Guard. ______ SA 2623. Ms. CANTWELL submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 309(j)(11)), as amended by section 40002(b)(1), strike subparagraphs (A) and (B) and insert the following: ``(A) between the frequencies of 3.1 gigahertz and 3.45 gigahertz, such authority shall not apply; ``(B) between the frequencies of 7.4 gigahertz and 8.4 gigahertz, such authority shall not apply; and ``(C) in any band of frequencies of which the Coast Guard is the primary user, such authority shall not apply.''. ______ SA 2624. Mr. REED submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ___. PROTECTION OF MEDICAID BENEFICIARIES. The provisions of, and the amendments made by, chapters 1 and 2 of subtitle B title VII of this Act shall not take effect, and no funds shall be expended to implement such provisions and amendments, until the date on which the Administrator of the Centers for Medicare & Medicaid Services certifies that implementation of such provisions and amendments shall not result in any individuals who are eligible for medical assistance under a State plan under title XIX of the Social Security Act or under a waiver of such plan as of the date of enactment of this Act losing benefits under such a State plan or waiver. ______ SA 2625. Mr. REED submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. REFUND TIMELINE. (a) In General.--Section 6402 is amended by adding at the end the following new subsection: ``(o) Required Timeline for Refunds to Certain Taxpayers.-- ``(1) In general.--In the case of a taxpayer who files a simple return electronically, the Secretary shall pay any refund of an overpayment due to such taxpayer not later than 3 weeks after the date such return is accepted. ``(2) Simple return.--For purposes of paragraph (1), the term `simple return' means a return-- ``(A) which includes only income reported on Forms W-2, SSA-1099, 1099-G, 1099-INT, 1099-R, and, in the case of Alaska residents reporting the Alaska Permanent Fund Dividend, 1099-MISC, and ``(B) which does not include income in excess of-- ``(i) in the case of a joint return-- ``(I) $250,000 in the aggregate, and ``(II) $200,000 for either spouse ($168,600, if the individual has wages from more than 1 employer), ``(ii) $200,000 ($168,600, if the individual has wages from more than 1 employer) in the case of a head of a household (as defined in section 2(b)), and ``(iii) $125,000, in any other case. A return shall not fail to be treated as a simple return solely because such return includes a claim of the credit under section 21, 24, 25A, 25B, or 32, or a deduction under section 219 or 221.''. (b) Authorization of Appropriations.--There are hereby authorized to be appropriated to the Secretary of the Treasury such sums as are necessary to carry out the purposes of the amendment made by subsection (a). (c) Effective Date.--The amendment made by this section shall apply to returns for taxable years beginning after December 31, 2024. ______ SA 2626. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. MODIFICATION OF RATES. (a) In General.--Section 1(j)(2) is amended by striking subparagraphs (A) through (D) and by inserting before subparagraph (E) the following new subparagraphs: ``(A) Married individuals filing joint returns and surviving spouses.--The following table shall be applied in lieu of the table contained in subsection (a): ``If taxable income is: The tax is: ------------------------------------------------------------------------ Not over $19,050.......................... 8% of taxable income. Over $19,050 but not over $77,400......... $1,524, plus 9% of the excess over $19,050. Over $77,400 but not over $165,000........ $6,775.50, plus 18% of the excess over $77,400. Over $165,000 but not over $315,000....... $22,543.50, plus 22% of the excess over $165,000. Over $315,000 but not over $400,000....... $55,543.50, plus 32% of the excess over $315,000. Over $400,000 but not over $600,000....... $82,743.50, plus 36% of the excess over $400,000. Over $600,000............................. $154,743.50, plus 39.6% of the excess over $600,000. ``(B) Heads of households.--The following table shall be applied in lieu of the table contained in subsection (b): ``If taxable income is: The tax is: ------------------------------------------------------------------------ Not over $13,600.......................... 8% of taxable income. Over $13,600 but not over $51,800......... $1,088, plus 9% of the excess over $13,600. Over $51,800 but not over $82,500......... $4,526, plus 18% of the excess over $51,800. Over $82,500 but not over $157,500........ $10,052, plus 22% of the excess over $82,500. Over $157,500 but not over $200,000....... $26,552, plus 32% of the excess over $157,500. Over $200,000 but not over $500,000....... $40,152, plus 36% of the excess over $200,000. Over $500,000............................. $148,152, plus 39.6% of the excess over $500,000. [[Page S4027]] ``(C) Unmarried individuals other than surviving spouses and heads of households.--The following table shall be applied in lieu of the table contained in subsection (c): ``If taxable income is: The tax is: ------------------------------------------------------------------------ Not over $9,525........................... 8% of taxable income. Over $9,525 but not over $38,700.......... $762, plus 9% of the excess over $9,525. Over $38,700 but not over $82,500......... $3,387.75, plus 18% of the excess over $38,700. Over $82,500 but not over $157,500........ $11,271.75, plus 22% of the excess over $82,500. Over $157,500 but not over $200,000....... $27,771.75, plus 32% of the excess over $157,500. Over $200,000 but not over $500,000....... $41,371.75, plus 36% of the excess over $200,000. Over $500,000............................. $149,371.75, plus 39.6% of the excess over $500,000. ``(D) Married individuals filing separate returns.--The following table shall be applied in lieu of the table contained in subsection (d): ``If taxable income is: The tax is: ------------------------------------------------------------------------ Not over $9,525........................... 8% of taxable income. Over $9,525 but not over $38,700.......... $762, plus 9% of the excess over $9,525. Over $38,700 but not over $82,500......... $3,387.75, plus 18% of the excess over $38,700. Over $82,500 but not over $157,500........ $11,271.75, plus 22% of the excess over $82,500. Over $157,500 but not over $200,000....... $27,771.75, plus 32% of the excess over $157,500. Over $200,000 but not over $300,000....... $41,371.75, plus 36% of the excess over $200,000. Over $300,000............................. $77,371.75, plus 39.6% of the excess over $300,000.''. (b) Modification of Inflation Adjustment.--Section 1(j)(3)(B)(i), as amended by section 70101, is further amended to read as follows: ``(i) subsection (f)(3) shall be applied-- ``(I) solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins, except as provided in subclause (II), by substituting `calendar year 2017' for `calendar year 2016' in subparagraph (A)(ii) thereof, and ``(II) in the case of any taxable year beginning after December 31, 2025, solely for purposes of determining the dollar amounts at which the 36-percent rate bracket ends and the 39.6-percent rate bracket begins, by substituting `calendar year 2024' for `calendar year 2016' in subparagraph (A)(ii) thereof,''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2627. Mr. REED submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. EXPANSION OF DENIAL OF DEDUCTION FOR CERTAIN EXCESSIVE EMPLOYEE REMUNERATION. (a) In General.-- (1) Expansion.--Section 162(m) is amended-- (A) by striking ``applicable employee remuneration'' each place it appears in paragraphs (1), (4), and (5)(E) and inserting ``applicable remuneration'', (B) by striking ``covered employee'' each place it appears and inserting ``covered individual'', and (C) by striking ``employee'' each place it appears in paragraph (1) and subparagraphs (A), (C)(ii), and (E) of paragraph (4) and inserting ``individual''. (2) Covered individual.--Paragraph (3) of section 162(m) is amended to read as follows: ``(3) Covered individual.--For purposes of this subsection, the term `covered individual' means-- ``(A) any individual who performs services (directly or indirectly) for the taxpayer (or any predecessor) for any taxable year beginning after December 31, 2024, or ``(B) any employee-- ``(i) who was the principal executive officer or principal financial officer of the taxpayer (or any predecessor) at any time during any preceding taxable year beginning after December 31, 2016, and before January 1, 2025, or who was an individual acting in such a capacity, or ``(ii) the total compensation of whom for any taxable year described in clause (i) was required to be reported to shareholders under the Securities Exchange Act of 1934 by reason of such individual being among the 3 highest compensated officers for the taxable year (other than any individual described in clause (i)). Such term shall include any employee who would be described in subparagraph (B)(ii) if the reporting described in such subparagraph were required as so described.''. (3) Conforming amendments.-- (A) The heading for section 162(m) is amended by striking ``Employee''. (B) The heading for section 162(m)(4) is amended by striking ``employee''. (b) Modification of Definition of Publicly Held Corporation.--Section 162(m)(2) is amended-- (1) by inserting ``, with respect to any taxable year,'' after ``means'', and (2) by striking subparagraph (B) and inserting the following: ``(B) that was required to file reports under section 15(d) of such Act (15 U.S.C. 78o(d)) at any time during the 3- taxable year period ending with such taxable year.''. (c) Regulatory Authority.-- (1) In general.--Section 162(m) is amended by adding at the end the following new paragraph: ``(7) Regulations.--The Secretary may prescribe such guidance, rules, or regulations as are necessary to carry out the purposes of this subsection, including regulations-- ``(A) with respect to reporting, and ``(B) to prevent avoidance of the purposes of this section by providing compensation through a pass-through or other entity.''. (2) Conforming amendment.--Paragraph (6) of section 162(m) is amended by striking subparagraph (H). (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024. ______ SA 2628. Mr. REED submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. ____. AUDITS. (a) In General.--Subchapter A of chapter 78 is amended by inserting after section 7606 the following new section: ``SEC. 7607. AUDITS. ``(a) In General.-- ``(1) Audit requirement.--The Internal Revenue Service shall not initiate any audit for a taxable year of a taxpayer whose taxable income for the preceding taxable year was not in excess of the threshold amount unless audits have been completed of-- ``(A) all corporations whose taxable income for the preceding taxable year was in excess of $10,000,000, and ``(B) all taxpayers other than corporations whose taxable income for the preceding taxable year was in excess of $5,000,000. ``(2) Threshold amount.--For purposes of paragraph (1), the threshold amount is-- ``(A) $200,000 in the case of a joint return, ``(B) $150,000 in the case of a head of a household (as defined in section 2(b)), and ``(C) $100,000 in any other case. ``(b) Adjustment for Inflation.--In the case of a return for any taxable year beginning after December 31, 2026, each of the dollar amounts in subsection (a)(2) shall be increased by an amount equal to-- ``(1) such dollar amount, multiplied by ``(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any amount as increased under the preceding sentence is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.''. (b) Clerical Amendment.--The table of sections for subchapter A of chapter 78 is amended by inserting after the item relating to section 7606 the following new item: ``Sec. 7607. Audits.''. (c) Effective Date.--The amendments made by this section shall apply to returns for taxable years beginning after December 31, 2025. ______ SA 2629. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 87001, strike ``for the procurement'' and all that follows through the period at the end and insert ``for Federal/State partnership grants awarded pursuant to section 7 of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 956).''. ______ SA 2630. Mr. REED (for himself, Ms. Hirono, and Mr. Whitehouse) submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. FUNDING TO INCREASE THE TOTAL MAXIMUM FEDERAL PELL GRANT AWARD PER STUDENT. Section 401(b)(5)(A)(i) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)(A)(i)) is amended by inserting ``for award years 2024-2025 and 2025-2026, and $6,060 for award year 2026-2027 and each subsequent award year'' after ``$1,060''. ______ SA 2631. Mr. REED (for himself, Ms. Hirono, and Mr. Whitehouse) submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. FUNDING TO INCREASE THE TOTAL MAXIMUM FEDERAL PELL GRANT AWARD PER STUDENT. Section 401(b)(5)(A)(i) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)(A)(i)) [[Page S4028]] is amended by inserting ``for award years 2024-2025 and 2025- 2026, and $3,560 for award year 2026-2027 and each subsequent award year'' after ``$1,060''. ______ SA 2632. Mr. REED (for himself, Ms. Hirono, and Mr. Whitehouse) submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. FUNDING TO INCREASE THE TOTAL MAXIMUM FEDERAL PELL GRANT AWARD PER STUDENT. Section 401(b)(5)(A)(i) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)(A)(i)) is amended by inserting ``for award years 2024-2025 and 2025-2026, and $2,060 for award year 2026-2027 and each subsequent award year'' after ``$1,060''. ______ SA 2633. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70411. ______ SA 2634. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 60025 (relating to the John F. Kennedy Center for the Performing Arts). ______ SA 2635. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70413. ______ SA 2636. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of section 82002, add the following: (c) Eliminating Interest Accrual During Certain Federal Student Loan Deferments.-- (1) In general.--Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended-- (A) in paragraph (1), by striking ``, and interest--'' and all that follows through the period at the end of subparagraph (B) and inserting ``, and interest shall not accrue.''; (B) in paragraph (4)(A), by striking ``, and interest--'' and all that follows through the period at the end of clause (ii), and inserting ``and interest shall not accrue.''; and (C) by adding at the end the following: ``(9) Interest accrual during certain 6-month periods of deferment for federal direct plus loans.-- ``(A) Parent borrowers.--In the case of a Federal Direct PLUS Loan made under this part to a parent borrower and for which the parent has received a deferral pursuant to section 428B(d)(1)(B)(i), interest shall not accrue with respect to such loan during such period. ``(B) Graduate or professional student borrowers.--In the case of a Federal Direct PLUS Loan made under this part to a graduate or professional student borrower and for which the student has received a deferral pursuant to section 428B(d)(1)(B)(ii), interest shall not accrue with respect to such loan during such period.''. (2) Applicability.--The amendments made by this subsection shall not apply to any loan made prior to the date of enactment of this Act. ______ SA 2637. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 40008 and insert the following: SEC. 40008. PROHIBITION ON USE OF FUNDS TO ELIMINATE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION PROGRAMS THAT PROVIDE DATA AND SERVICES TO PROTECT LIFE AND PROPERTY FROM NATURAL DISASTERS. None of the funds appropriated by this Act may be used to eliminate programs of the National Oceanic and Atmospheric Administration that provide data and services to protect life and property from natural disasters. ______ SA 2638. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 30002. ______ SA 2639. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 30003. ______ SA 2640. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70436. ______ SA 2641. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of chapter 5 of subtitle A of title VII, insert the following: SEC. 705___. DELAY IN EFFECT UNTIL CERTIFICATION OF LOWER ELECTRICITY PRICES. Notwithstanding any other provision of this chapter, the amendments made by this chapter shall not take effect until after the date on which the Comptroller General certifies that the enactment of such amendments will not increase electricity prices for any American household. ______ SA 2642. Mr. REED submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. __. APPROPRIATIONS FOR A LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM. In addition to amounts otherwise available, there is appropriated to the Secretary of Health and Human Services for fiscal year 2026, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until expended, to carry out the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 through 8630), including to help low-income households afford the higher energy costs projected to be caused by this Act, and to provide for sufficient staff of the Department of Health and Human Services to oversee the distribution of funding under the Low-Income Home Energy Assistance Act of 1981. ______ SA 2643. Mr. BENNET (for himself, Mr. Warnock, Mr. Kelly, Mr. Hickenlooper, Ms. Cortez Masto, Ms. Rosen, and Mr. Gallego) submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike sections 70514 and 70515 and insert the following: SEC. 70514. RESTRICTIONS ON ADVANCED MANUFACTURING PRODUCTION CREDIT. (a) Restrictions Relating to Prohibited Foreign Entities.-- Section 45X is amended-- (1) in subsection (c)(1), by adding at the end the following new subparagraph: ``(C) Material assistance from prohibited foreign entities.--In the case of taxable years beginning after the date of enactment of this subparagraph, the term `eligible component' shall not include any property which includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).'', and (2) in subsection (d), by adding at the end the following new paragraph: ``(5) Restrictions relating to prohibited foreign entities.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a prohibited foreign entity (as defined in section 7701(a)(51)(A)).''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. [[Page S4029]] SEC. 70515. ESTABLISHMENT OF 39.6 PERCENT INDIVIDUAL INCOME TAX RATE BRACKET. (a) In General.--Section 1(j)(2) is amended by redesignating subparagraph (F) as subparagraph (G) and by inserting after subparagraph (E) the following new subparagraph: ``(F) 39.6 percent rate bracket.--Notwithstanding subparagraphs (A) through (E), in prescribing the tables under this subsection for purposes of paragraph (3)(B)-- ``(i) the excess of taxable income over $10,000,000, if any, shall be taxed at a rate of 39.6 percent, and ``(ii) paragraph (3)(B)(i) shall be applied with respect to such $10,000,000 amount by substituting `2024' for `2017'.''. (b) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2644. Mr. BENNET submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 20004(b), strike ``to remain available until September 30, 2029, $3,300,000,000 for grants and purchase commitments made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code'' and insert ``$3,300,000,000 for the Ukraine Security Assistance Initiative''. ______ SA 2645. Mr. BENNET submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Res. Con. 14; which was ordered to lie on the table; as follows: On page 24, strike line 1 and all that follows through line 22 on page 25 and insert the following: ``(B) State cost share.-- ``(i) In general.--Beginning in fiscal year 2030, if the payment error rate of a State as determined under clause (ii) is-- ``(I) less than 6 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 100 percent, and the State share shall be 0 percent; ``(II) equal to or greater than 6 percent but less than 8 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 95 percent, and the State share shall be 5 percent; ``(III) equal to or greater than 8 percent but less than 10 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 90 percent, and the State share shall be 10 percent; and ``(IV) equal to or greater than 10 percent, the Federal share of the cost of the allotment described in paragraph (1) for that State in a fiscal year shall be 85 percent, and the State share shall be 15 percent. ``(ii) Elections.-- ``(I) Fiscal year 2030.--For fiscal year 2030, to calculate the applicable State share under clause (i), a State may elect to use the payment error rate of the State from fiscal year 2027 or 2028. ``(II) Fiscal year 2031 and thereafter.--For fiscal year 2031 and each fiscal year thereafter, to calculate the applicable State share under clause (i), the Secretary shall use the payment error rate of the State for the third fiscal year preceding the fiscal year for which the State share is being calculated. ______ SA 2646. Mr. BENNET submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 70120 and insert the following: SEC. 70120. LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE AND LOCAL TAXES, ETC AND ADDRESSING SALT WORKAROUNDS. (a) In General.-- (1) Limitation.--Section 275 is amended by redesignating subsection (b) as subsection (c) and by inserting after subsection (a) the following new subsection: ``(b) Limitation on Individual Deductions for Certain State and Local Taxes, etc.-- ``(1) In general.--In the case of an individual, no deduction shall be allowed for-- ``(A) any disallowed foreign real property taxes, ``(B) any specified taxes to the extent that such taxes for such taxable year in the aggregate exceed $10,000 ($5,000 in the case of a married individual filing a separate return), and ``(C) any pass-through entity taxes to the extent that such taxes for the taxable year in the aggregate exceed the sum of-- ``(i) the excess (if any) of the amount applicable to such individual under subparagraph (B) over the amount of the individual's specified taxes, plus ``(ii) the greater of-- ``(I) $40,000 ($20,000 in the case of a married individual filing a separate return), or ``(II) 50 percent of the pass-through entity taxes of the taxpayer. ``(2) Disallowed foreign real property tax.--For purposes of this subsection, the term `disallowed foreign real property tax' means any tax which-- ``(A) is a foreign real property tax described in section 164(a)(1), and ``(B) is not an excepted tax. ``(3) Specified tax.--For purposes of this subsection, the term `specified tax' means-- ``(A) any tax which-- ``(i) is described in paragraph (1), (2), or (3) of section 164(a) (determined without regard to any election under section 164(b)(5)) or is taken into account under section 164(b)(5), and ``(ii) is not an excepted tax, a pass-through entity tax, or a disallowed foreign real property tax, ``(B) any amount which is paid or accrued by a tenant- stockholder (as defined in section 216(b)(2)) to a cooperative housing corporation and represents such tenant- stockholder's proportionate share of taxes described in section 216(a)(1) (other than an excepted tax), and ``(C) any substitute payment. ``(4) Excepted tax.--For purposes of this subsection, the term `excepted tax' means-- ``(A) any tax described in section 164(a)(3) imposed by the authority of a foreign country or by a possession of the United States or a political subdivision thereof, and ``(B) any tax described in paragraph (1) or (2) of section 164(a), or section 216, which is paid or accrued in carrying on a trade or business or an activity described in section 212. ``(5) Substitute payment.--For purposes of this subsection-- ``(A) In general.--The term `substitute payment' means any amount (other than a tax described in paragraph (3)(A)) paid, incurred, or accrued to any jurisdiction referred to in section 164(b)(2) (other than a possession of the United States or a political subdivision thereof)) if, under the laws of one or more such jurisdictions, one or more persons would (if the assumptions described in subparagraphs (B) and (C) applied) be entitled to specified tax benefits the aggregate dollar value of which equals or exceeds 25 percent of such amount. ``(B) Assumption regarding dollar value of tax benefits.-- The assumption described in this subparagraph is that the dollar value of a specified tax benefit is-- ``(i) in the case of a credit or refund, the amount of such credit or refund, ``(ii) in the case of a deduction or exclusion, 15 percent of the amount of such deduction or exclusion, and ``(iii) in any other case, an amount determined in such manner as the Secretary may provide consistent with the principles of clauses (i) and (ii). ``(C) Assumption regarding status of partners or shareholders.--The assumption described in this subparagraph is, in the case of any amount referred to in subparagraph (A) which is paid, incurred, or accrued by a partnership or S corporation, that all of the partners or shareholders of such partnership or S corporation, respectively, are individuals who are residents of the jurisdiction or jurisdictions providing the specified tax benefits (and possess such other characteristics as the laws of such jurisdictions may require for entitlement to such benefits). ``(D) Specified tax benefit.--For purposes of subparagraph (A), the term `specified tax benefit' means any benefit which-- ``(i) is determined with respect to the amount referred to in subparagraph (A), and ``(ii) is allowed against, or determined by reference to, a tax described in paragraph (3)(A) or section 164(b)(5). ``(E) Exception for non-deductible payments.--To the extent that a deduction for an amount described in subparagraph (A) is not allowed under this chapter (determined without regard to this subsection, section 170(b)(1), section 703(a), section 704(d), section 1363(b), and section 1366(d)), the term `substitute payment' shall not include such amount. ``(F) Exception for certain withholding taxes.--To the extent provided in regulations issued by the Secretary, the term `substitute payment' shall not include an amount withheld on behalf of another person if all of such amount is included in the gross income of such person (determined under this chapter). ``(6) Pass-through entity tax.--For purposes of this subsection, the term `pass-through entity tax' means-- ``(A) the taxpayer's distributive share of any tax described in section 702(a)(6)(B), plus ``(B) the taxpayer's pro rata share of any such taxes taken into account under section 1366(a)(1). ``(7) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance-- ``(A) to treat as a tax described in paragraph (3) of section 164(a) any tax that is, in substance, based on general tax principles, described in such paragraph, ``(B) to treat as a substitute payment any amount that, in substance, substitutes for a specified tax, and ``(C) to otherwise prevent the avoidance of the purposes of this subsection.''. (2) Conforming amendment.--Section 216(a)(1) is amended by inserting ``(other than disallowed foreign real property taxes (as defined in section 275(b)(2)))'' after ``under section 164''. [[Page S4030]] (b) State and Local Income Taxes Paid by Partnerships and S Corporations Taken Into Account Separately by Partners and Shareholders.-- (1) In general.--Section 702(a)(6) is amended to read as follows: ``(6)(A) taxes, described in section 901, paid or accrued to foreign countries or to possessions of the United States, ``(B) pass-through entity taxes, ``(C) specified taxes (within the meaning of section 275(b)), and ``(D) taxes described in section 275(b)(2),''. (2) Rules relating to separately stated taxes.--Section 702 is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: ``(d) Rules Relating to Taxes.-- ``(1) Pass-through entity tax.--For purposes of subsection (a)(6)(B)-- ``(A) In general.--The term `pass-through entity tax' means any tax which is described in section 164(a)(3) (other than an excepted tax (as defined in section 275(b)(4)) to the extent that such tax is paid or accrued in carrying on a trade or business (other than the performance of services as an employee) or an activity described in section 212. ``(B) Exception for jurisdictions with income taxes.--The term `pass-through entity tax' shall not include any tax described in subparagraph (A) if-- ``(i) such tax is imposed for a taxable year beginning after the date that is 18 months after the date of the enactment of this subsection, ``(ii) the jurisdiction imposing the tax also imposes an income tax on individuals, and ``(iii) the tax liability for such tax by any pass-through entity would exceed 102 percent of the liability for the tax described in clause (i) imposed on an unmarried individual with net income (as determined under the rules of the jurisdiction imposing the tax) equal to the net income of the pass-through entity. ``(C) Exception for jurisdictions without income taxes.-- The term `pass-through entity tax' shall not include any tax described in subparagraph (A) if-- ``(i) the jurisdiction imposing the tax does not also impose an income tax on individuals, and ``(ii) such tax would be a substitute payment (as defined in section 275(b)(5)) if, for purposes of applying section 275(b)(5)(A), section 275(b)(3)(A) were applied-- ``(I) by substituting `paragraph (1) or (2) of section 164(a)' for `paragraph (1), (2), or (3) of section 164(a)' in clause (i) thereof, and ``(II) without regard to the phrase `, a pass-through entity tax,' in clause (ii) thereof. ``(2) Treatment of substitute payments.--Any substitute payment (as defined in section 275(b)(5)) shall be taken into account under subsection (a)(6)(C) and not under any other paragraph of subsection (a). ``(3) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out, and prevent the avoidance of, the purposes of this section, including regulations or other guidance-- ``(A) providing for whether and to what extent a tax is described in paragraph (1)(A), and ``(B) for preventing the treatment of any tax which is described in paragraph (1)(A) but not described in paragraph (1)(B) as a pass-through entity tax if the principal purpose of either such tax or the rates of such tax is to avoid the purposes of section 275(b).''. (3) Disallowance of deduction to partnerships.--Section 703(a)(2)(B) is amended to read as follows: ``(B) any deduction under this chapter with respect to taxes or payments described in section 702(a)(6),''. (4) Limitation on allowances of losses.--Section 704(d)(2) is amended to read as follows: ``(2) Carryovers.-- ``(A) In general.--Any excess of such loss over such basis (determined after application of paragraph (3)) shall be taken into account (including for purposes of section 705) at the end of the partnership year in which such excess is repaid to the partnership. ``(B) Treatment.--Any item of loss carried forward under subparagraph (A) shall retain the character of such item. ``(C) Allocation.--The amount of the excess described in subparagraph (A) shall be allocated to the partner's distributive share of each item of separately stated and non- separately stated loss taken into account under paragraph (1), apportioned in the ratio that the amount of each item of loss bears to the total of all such losses. For the purposes of the preceding sentence, the total losses for the taxable year shall be the sum of the partner's distributive share of such losses for the current year and the partner's losses carried forward under this paragraph from prior years. ``(D) Special rule for nondeductible specified taxes.-- ``(i) In general.--Except in the case of a partnership or corporation, the lesser of the amount described in clause (ii)(I), or the applicable percentage of nondeductible specified taxes, of a partner shall be separately carried forward under subparagraph (A) and shall not be allowed as a deduction in any taxable year. ``(ii) Applicable percentage.--For purposes of this subparagraph, the applicable percentage with respect to any partner of a partnership is the ratio (expressed as a percentage) of-- ``(I) the amount described in section 702(a)(6)(C) with respect to the partner of such partnership, to ``(II) the amount described in clause (iii)(I) which is attributable to partnerships for which there is an excess under subparagraph (A) and to S corporations for which there is an excess under section 1366(d)(1). ``(iii) Nondeductible specified taxes.--For purposes of this subparagraph, the nondeductible specified taxes for any taxable year is the excess (if any) of-- ``(I) the sum of the aggregate amounts described in section 702(a)(6)(C) with respect to the partner for all partnerships plus the aggregate amounts so described which are a separately stated item under section 1366(a)(1)(A) with respect to the shareholder for all S corporations, over ``(II) the amount of specified taxes (as defined in section 275(b)(3)) allowable under this chapter for the taxable year, reduced by the amount of any such taxes taken into account under subclause (I). For purposes of subclause (II), the determination of the amount of such taxes so allowable shall be made after the application of section 275(b)(1)(B), after the application of this subsection and 1366(d) to items of loss and deduction other than such taxes but before their application to such taxes, and before the application of section 68.''. (5) S corporations.-- (A) In general.--For corresponding provisions related to S corporations which apply by reason of the amendments made by paragraphs (1) through (3), see sections 1366(a)(1) and 1363(b)(2) of the Internal Revenue Code of 1986. (B) Loss carryovers.-- (i) In general.--Section 1366(d)(2) is amended by adding at the end the following new subparagraph: ``(C) Special rule for certain specified taxes.-- ``(i) In general.--Except in the case of a partnership or corporation, the lesser of the amount described in clause (ii)(I), or the applicable percentage of nondeductible specified taxes, of a shareholder shall be separately carried forward under subparagraph (A) and shall not be allowed as a deduction in any taxable year. ``(ii) Applicable percentage.--For purposes of this subparagraph, the applicable percentage with respect to any shareholder of an S corporation is the ratio (expressed as a percentage) of-- ``(I) the amount taken into account under section 704(d)(2)(D)(iii)(I) which are separately stated items under subsection (a)(1)(A) with respect to such shareholder of such S corporation, to ``(II) the amount described in section 704(d)(2)(D)(iii)(I) which is attributable to S corporations for which there is an excess under subparagraph (A) and to partnerships for which there is an excess under section 704(d)(2)(A) . ``(iii) Nondeductible specified taxes.--For purposes of this subparagraph, the term `nondeductible specified taxes' has the meaning given such term under section 704(d)(2)(D)(iii),''. (ii) Conforming amendment.--Section 1366(d)(2)(A) is amended by striking ``subparagraph (B)'' and inserting ``subparagraph (B) or (C)''. (6) Conforming amendments.-- (A) Alternative minimum tax.--Section 56(b)(1)(A)(ii) is amended by inserting ``or for any substitute payment (as defined in section 275(b)(5))'' before the period at the end. (B) Adjusted gross income.--Section 62(a)(1) is amended by inserting ``or with respect to any specified tax (as defined in section 275(b)(3))'' after ``this subchapter''. (c) Addition to Tax for State and Local Tax Allocation Mismatch.-- (1) In general.--Part I of subchapter A of chapter 68, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: ``SEC. 6660. STATE AND LOCAL TAX ALLOCATION MISMATCH. ``(a) In General.--In the case of any covered individual, there shall be added to the tax imposed under section 1 for the taxable year an amount equal to the product of-- ``(1) the highest rate of tax in effect under such section for such taxable year, multiplied by ``(2) the sum of the State and local tax allocation mismatches for such taxable year with respect to each partnership specified tax payment with respect to which such individual is a covered individual. ``(b) Covered Individual.--For purposes of this section, the term `covered individual' means, with respect to any partnership specified tax payment, any individual (or estate or trust) who-- ``(1) is entitled (directly or indirectly) to one or more specified tax benefits with respect to such payment, and ``(2) takes into account (directly or indirectly) any item of income, gain, deduction, loss, or credit of the partnership (including guaranteed payments) which made such payment. ``(c) State and Local Tax Allocation Mismatch.--For purposes of this section-- ``(1) In general.--The term `State and local tax allocation mismatch' means, with respect to any partnership specified tax payment, the excess (if any) of-- ``(A) the aggregate dollar value of the specified tax benefits of the covered individual with respect to such payment, over [[Page S4031]] ``(B) the amount of such payment taken into account by such individual under section 702(a) (without regard to sections 275(b) and 704(d)). ``(2) Taxable year of individual in which mismatch taken into account.--In the case of any partnership specified tax payment paid, incurred, or accrued in any taxable year of the partnership, the State and local tax allocation mismatch determined under paragraph (1) with respect to such payment shall be taken into account under subsection (a) by the covered individual for the taxable year of such individual in which such individual takes into account the items referred to in subsection (b)(2) which are determined with respect to such partnership taxable year. ``(d) Determination of Dollar Value of Specified Tax Benefits.-- ``(1) In general.--Except in the case of a covered individual who elects the application of paragraph (3) for any taxable year, the dollar value of any specified tax benefit shall be the sum of-- ``(A) the aggregate increase in tax liability (and reduction in credit or refund) for taxes described in section 275(b)(3)(A) for the taxable year and all prior taxable years that would result if such specified tax benefit were not taken into account with respect to such taxes, plus ``(B) the deemed value of any carryforward of such specified tax benefit (including any tax attribute derived from such benefit) to any subsequent taxable year. ``(2) Deemed value of carryforwards.--For purposes of paragraph (1), the deemed value of any carryforward is-- ``(A) in the case of a credit or refund, the amount of such credit or refund, ``(B) in the case of a deduction or exclusion, the product of-- ``(i) the highest rate of tax which may be imposed on individuals under the tax referred to in subsection (e)(4)(B) with respect to the specified tax benefit, multiplied by ``(ii) the amount of such deduction or exclusion, and ``(C) in any other case, an amount determined in such manner as the Secretary may provide consistent with the principles of subparagraphs (A) and (B). ``(3) Election of simplified method.--In the case of a covered individual who elects the application of this paragraph for any taxable year, the dollar value of any specified tax benefit shall be determined under the assumptions described in section 275(b)(5)(B). ``(e) Other Definitions and Special Rules.--For purposes of this section-- ``(1) Partnership specified tax payment.--The term `partnership specified tax payment' means any specified tax and any pass-through entity tax paid, incurred, or accrued by a partnership. ``(2) Pass-through entity tax.--The term `pass-through entity tax' has the meaning given such term by section 275(b)(6). ``(3) Specified tax.--The term `specified tax' has the meaning given such term by section 275(b)(3). ``(4) Specified tax benefit.--The term `specified tax benefit' means any benefit which-- ``(A) is determined with respect to a partnership specified tax payment, and ``(B) is allowed against, or determined by reference to, a tax described in section 275(b)(3)(A). ``(f) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance preventing avoidance of the addition to tax prescribed by this section through partnership allocations that achieve similar tax reductions as a State and local tax allocation mismatch.''. (2) Clerical amendment.--The table of sections for part I of subchapter A of chapter 68, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: ``Sec. 6660. State and local tax allocation mismatch.''. (d) Limitation on Capitalization of Specified Taxes.-- Section 275, as amended by the preceding provisions of this section, is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: ``(c) Limitations on Capitalization of Specified Taxes.-- Notwithstanding any other provision of this chapter, in the case of an individual, specified taxes, pass-through entity taxes, and disallowed foreign real property taxes (as such terms are defined in subsection (b)) shall not be treated as chargeable to capital account.''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. ______ SA 2647. Mr. BENNET submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 895, strike lines 20 through 23 and insert the following: (c) Exception.--The fee described in this section shall not apply to-- (1) any alien who was ordered removed in absentia if such order was rescinded pursuant to section 240(b)(5)(C) (8 U.S.C. 1229a(b)(5)(C)); or (2) an individual determined to be an unaccompanied alien child (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))) who did not have a legal representative on file with the court at the time the removal order was entered. ______ SA 2648. Mr. BENNET submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 840, between lines 18 and 19, insert the following: (d) Exception.--The fees under this subtitle shall not apply to an individual determined to be an unaccompanied alien child (as defined in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g))). On page 899, between lines 6 and 7, insert the following: SEC. 100019. UNACCOMPANIED ALIEN CHILDREN CAPACITY. (a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Office of Refugee Resettlement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $3,000,000,000 to remain available until September 30, 2029, for use as described in subsection (b). (b) Use of Funds.--The funds made available under subsection (a) shall be used for the Office of Refugee Resettlement pursuant to section 235 of the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 (8 U.S.C. 1232), of which not less than $750,000,000 shall be used for unaccompanied children's legal services, post-release services, and child advocates. ______ SA 2649. Mr. BENNET submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: On page 835, line 5, insert ``, of which $90,000,000 shall be available to hire, train, and deploy licensed child welfare professionals at border facilities as part of the Department of Homeland Security Office of Health Security (OHS) Child Well-Being Program'' before the period at the end. ______ SA 2650. Mr. BENNET submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Beginning on page 853, strike line 1 and all that follows through page 854, line 5. ______ SA 2651. Mr. BENNET submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the appropriate place, insert the following: SEC. _____. FEMA INVESTMENT IN FIRE-PRONE STATES. The Administrator of the Federal Emergency Management Agency shall enhance investment in wildfire recovery, resilient rebuilding, and pre-disaster mitigation in fire- prone States. ______ SA 2652. Mr. BENNET submitted an amendment intended to be proposed by him to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 100054(2), add at the end the following: ``Amounts appropriated under this section for the purposes described in this paragraph shall be directed to border States and to States along drug trafficking routes in the interior of the United States that are being affected by drug-related crime.''. ______ SA 2653. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: Strike section 90103 and insert the following: SEC. 90103. APPROPRIATION FOR THE OFFICE OF MANAGEMENT AND BUDGET AND FOR STATE AND LOCAL CYBERSECURITY GRANT PROGRAM FUNDING. (a) Office of Management and Budget.--In addition to amounts otherwise available, there is appropriated to the Office of Management and Budget for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $1,000,000, to remain available until September 30, 2029, for purposes of finding budget and accounting efficiencies in the executive branch. (b) Cybersecurity Grant Programs.--In addition to amounts otherwise available, [[Page S4032]] there is appropriated to the Department of Homeland Security for fiscal year 2026, out of any money in the Treasury not otherwise appropriated, $99,000,000, to remain available until expended, for grants to State, local, Tribal, and territorial governments for improvement to cybersecurity and critical infrastructure, as authorized by section 2220A of the Homeland Security Act of 2002 (6 U.S.C. 665g). ______ SA 2654. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 90004(b), strike ``None'' and insert the following: (1) Surveillance towers.--None At the end of section 90004(b), add the following: (2) Mass surveillance of united states persons.--None of the funds made available under subsection (a) may be used to purchase, operate, or modify technology that enables the systematic, indiscriminate, or wide-scale monitoring, surveillance, or tracking of United States persons. ______ SA 2655. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: At the end of subtitle A of title IX, add the following: SEC. 90008. COMPLIANCE WITH THE BUY AMERICAN ACT. (a) In General.--In accordance with applicable law and not less than 75 percent of the amounts appropriated by this title shall be expended in compliance with chapter 83 of title 41, United States Code (commonly known as the ``Buy American Act'' ). (b) Further Limitation.--All amounts appropriated by this title that are not expended in compliance with the Buy American Act may not be paid to any entity that is based in the foreign adversary countries of the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, and the Democratic People's Republic of Korea. ______ SA 2656. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 100051, in the matter preceding paragraph (1), strike ``In addition'' and insert the following: (a) Appropriation.--Subject to subsection (b), in addition At the end of section 100051, add the following: (b) Identification Requirement.-- (1) In general.--Except as provided in paragraph (2), none of the funds appropriated under subsection (a) may be used for immigration enforcement purposes unless all sworn law enforcement officers engaged in immigration enforcement operations clearly identify themselves as law enforcement and provide a warrant when required. (2) Exception.--The requirement set forth in paragraph (1) shall not apply to officers who are conducting undercover activities in the regular performance of their duties. In section 100052, in the matter preceding paragraph (1), strike ``In addition'' and insert the following: (a) Appropriation.--Subject to subsection (b), in addition At the end of section 100052, add the following: (b) Identification Requirement.-- (1) In general.--Except as provided in paragraph (2), none of the funds appropriated under subsection (a) may be used for immigration enforcement purposes unless all sworn law enforcement officers engaged in immigration enforcement operations clearly identify themselves as law enforcement and provide a warrant when required. (2) Exception.--The requirement set forth in paragraph (1) shall not apply to officers who are conducting undercover activities in the regular performance of their duties. In section 100054, in the matter preceding paragraph (1), strike ``In addition'' and insert the following: (a) Appropriation.--Subject to subsection (b), in addition At the end of section 100054, add the following: (b) Identification Requirement.-- (1) In general.--Except as provided in paragraph (2), none of the funds appropriated under subsection (a) may be used for immigration enforcement purposes unless all sworn law enforcement officers engaged in immigration enforcement operations clearly identify themselves as law enforcement and provide a warrant when required. (2) Exception.--The requirement set forth in paragraph (1) shall not apply to officers who are conducting undercover activities in the regular performance of their duties. At the end of section 100055, add the following: (e) Identification Requirement.-- (1) In general.--Except as provided in paragraph (2), none of the funds appropriated under this section may be used for immigration enforcement purposes unless all sworn law enforcement officers engaged in immigration enforcement operations clearly identify themselves as law enforcement and provide a warrant when required. (2) Exception.--The requirement set forth in paragraph (1) shall not apply to officers who are conducting undercover activities in the regular performance of their duties. ______ SA 2657. Mr. PETERS submitted an amendment intended to be proposed to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill H.R. 1, to provide for reconciliation pursuant to title II of H. Con. Res. 14; which was ordered to lie on the table; as follows: In section 100051, in the matter preceding paragraph (1), strike ``In addition'' and insert the following: (a) Appropriation.--Subject to subsection (b), in addition At the end of section 100051, add the following: (b) Identification Requirement.-- (1) In general.--Except as provided in paragraph (2), none of the funds appropriated under subsection (a) may be used for immigration enforcement purposes unless all sworn law enforcement officers engaged in immigration enforcement operations clearly identify themselves as law enforcement. (2) Exception.--The requirement set forth in paragraph (1) shall not apply to officers who are conducting undercover activities in the regular performance of their duties. In section 100052, in the matter preceding paragraph (1), strike ``In addition'' and insert the following: (a) Appropriation.--Subject to subsection (b), in addition At the end of section 100052, add the following: (b) Identification Requirement.-- (1) In general.--Except as provided in paragraph (2), none of the funds appropriated under subsection (a) may be used for immigration enforcement purposes unless all sworn law enforcement officers engaged in immigration enforcement operations clearly identify themselves as law enforcement. (2) Exception.--The requirement set forth in paragraph (1) shall not apply to officers who are conducting undercover activities in the regular performance of their duties. In section 100054, in the matter preceding paragraph (1), strike ``In addition'' and insert the following: (a) Appropriation.--Subject to subsection (b), in addition At the end of section 100054, add the following: (b) Identification Requirement.-- (1) In general.--Except as provided in paragraph (2), none of the funds appropriated under subsection (a) may be used for immigration enforcement purposes unless all sworn law enforcement officers engaged in immigration enforcement operations clearly identify themselves as law enforcement. (2) Exception.--The requirement set forth in paragraph (1) shall not apply to officers who are conducting undercover activities in the regular performance of their duties. At the end of section 100055, add the following: (e) Identification Requirement.-- (1) In general.--Except as provided in paragraph (2), none of the funds appropriated under this section may be used for immigration enforcement purposes unless all sworn law enforcement officers engaged in immigration enforcement operations clearly identify themselves as law enforcement. (2) Exception.--The requirement set forth in paragraph (1) shall not apply to officers who are conducting undercover activities in the regular performance of their duties. ____________________ |