Text of US HB 1 (2025)

IB Union Calendar No. 78 119TH CONGRESS 1ST SESSION H. R. 1 [Report No. 119–106] To provide for reconciliation pursuant to title II of H. Con. Res. 14. IN THE HOUSE OF REPRESENTATIVES MAY 20, 2025 Mr. ARRINGTON, from the Committee on the Budget, reported the following bill; which was committed to the Committee of the Whole House on the State of the Union and ordered to be printed VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 •HR 1 RH A BILL To provide for reconciliation pursuant to title II of H. Con. Res. 14. VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 •HR 1 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘One Big Beautiful Bill 4 Act’’. 5 SEC. 2. TABLE OF CONTENTS. 6 The table of contents for this Act is as follows: 7 Sec. 1. Short title. Sec. 2. Table of contents. TITLE I—COMMITTEE ON AGRICULTURE Subtitle A—Nutrition Sec. 10001. Thrifty food plan. Sec. 10002. Able bodied adults without dependents work requirements. Sec. 10003. Able bodied adults without dependents waivers. Sec. 10004. Availability of standard utility allowances based on receipt of en- ergy assistance. Sec. 10005. Restrictions on internet expenses. Sec. 10006. Matching funds requirements. Sec. 10007. Administrative cost sharing. Sec. 10008. General work requirement age. Sec. 10009. National Accuracy Clearinghouse. Sec. 10010. Quality control zero tolerance. Sec. 10011. National education and obesity prevention grant program repealer. Sec. 10012. Alien SNAP eligibility. Sec. 10012. Emergency food assistance. Subtitle B—Investment in Rural America Sec. 10101. Safety net. Sec. 10102. Conservation. Sec. 10103. Trade. Sec. 10104. Research. Sec. 10105. Secure rural schools; forestry. Sec. 10106. Energy. Sec. 10107. Horticulture. Sec. 10108. 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. VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 •HR 1 RH 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 superi- ority. Sec. 20008. Enhancement of resources for nuclear forces. Sec. 20009. Enhancement of Department of Defense resources to improve ca- pabilities of United States Indo-Pacific Command. Sec. 20010. Enhancement of Department of Defense resources for improving the readiness of the Armed Forces. Sec. 20011. Improving Department of Defense border support and counter- drug missions. Sec. 20012. Enhancement of military intelligence programs. Sec. 20013. Department of Defense oversight. Sec. 20014. Military construction projects authorized. Sec. 20015. Plan required. Sec. 20016. Limitation on availability of funds. TITLE III—COMMITTEE ON EDUCATION AND WORKFORCE Subtitle A—Student Eligibility Sec. 30001. Student eligibility. Sec. 30002. Amount of need; cost of attendance; median cost of college. Subtitle B—Loan Limits Sec. 30011. Loan Limits. Subtitle C—Loan Repayment Sec. 30021. Loan repayment. Sec. 30022. Deferment; forbearance. Sec. 30023. Loan rehabilitation. Sec. 30024. Public Service Loan Forgiveness. Sec. 30025. Student loan servicing. Subtitle D—Pell Grants Sec. 30031. Eligibility. Sec. 30032. Workforce pell grants. Sec. 30033. Pell shortfall. Subtitle E—Accountability Sec. 30041. Agreements with institutions. Sec. 30042. Campus-based aid programs. Subtitle F—Regulatory Relief Sec. 30051. Regulatory relief. Subtitle G—Limitation on Authority Sec. 30061. Limitation on authority of the Secretary to propose or issue regula- tions and executive actions. VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 •HR 1 RH TITLE IV—ENERGY AND COMMERCE Subtitle A—Energy Sec. 41001. Rescissions relating to certain Inflation Reduction Act programs. Sec. 41002. FERC certificates and fees for certain energy infrastructure at international boundaries of the United States. Sec. 41003. Natural gas exports and imports. Sec. 41004. Funding for Department of Energy loan guarantee expenses. Sec. 41005. Expedited permitting. Sec. 41006. Carbon dioxide, hydrogen, and petroleum pipeline permitting. Sec. 41007. De-risking Compensation Program. Sec. 41008. Strategic Petroleum Reserve. Sec. 41009. Rescissions of previously appropriated unobligated funds. Subtitle B—Environment PART 1—REPEALS AND RESCISSIONS Sec. 42101. Repeal and rescission relating to clean heavy-duty vehicles. Sec. 42102. Repeal and rescission relating to grants to reduce air pollution at ports. Sec. 42103. Repeal and rescission relating to Greenhouse Gas Reduction Fund. Sec. 42104. Repeal and rescission relating to diesel emissions reductions. Sec. 42105. Repeal and rescission relating to funding to address air pollution. Sec. 42106. Repeal and rescission relating to funding to address air pollution at schools. Sec. 42107. Repeal and rescission relating to low emissions electricity program. Sec. 42108. Repeal and rescission relating to funding for section 211(o) of the Clean Air Act. Sec. 42109. Repeal and rescission relating to funding for implementation of the American Innovation and Manufacturing Act. Sec. 42110. Repeal and rescission relating to funding for enforcement tech- nology and public information. Sec. 42111. Repeal and rescission relating to greenhouse gas corporate report- ing. Sec. 42112. Repeal and rescission relating to environmental product declaration assistance. Sec. 42113. Repeal of funding for methane emissions and waste reduction in- centive program for petroleum and natural gas systems. Sec. 42114. Repeal and rescission relating to greenhouse gas air pollution plans and implementation grants. Sec. 42115. Repeal and rescission relating to Environmental Protection Agency efficient, accurate, and timely reviews. Sec. 42116. Repeal and rescission relating to low-embodied carbon labeling for construction materials. Sec. 42117. Repeal and rescission relating to environmental and climate justice block grants. PART 2—REPEAL OF EPA RULE RELATING TO MULTI-POLLUTANT EMISSIONS STANDARDS Sec. 42201. Repeal of EPA rule relating to multi-pollutant emissions standards for light- and medium-duty vehicles. PART 3—REPEAL OF NHTSA RULE RELATING TO CAFE STANDARDS VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 •HR 1 RH Sec. 42301. Repeal of NHTSA rule relating to CAFE standards for passenger cars and light trucks. Subtitle C—Communications PART 1—SPECTRUM AUCTIONS Sec. 43101. Identification and auction of spectrum. PART 2—ARTIFICIAL INTELLIGENCE AND INFORMATION TECHNOLOGY MODERNIZATION Sec. 43201. Artificial intelligence and information technology modernization ini- tiative. Subtitle D—Health PART 1—MEDICAID SUBPART A—REDUCING FRAUD AND IMPROVING ENROLLMENT PROCESSES Sec. 44101. Moratorium on implementation of rule relating to eligibility and enrollment in Medicare Savings Programs. Sec. 44102. Moratorium on implementation of rule relating to eligibility and enrollment for Medicaid, CHIP, and the Basic Health Pro- gram. Sec. 44103. Ensuring appropriate address verification under the Medicaid and CHIP programs. Sec. 44104. Modifying certain State requirements for ensuring deceased indi- viduals do not remain enrolled. Sec. 44105. Medicaid provider screening requirements. Sec. 44106. Additional Medicaid provider screening requirements. Sec. 44107. Removing good faith waiver for payment reduction related to cer- tain erroneous excess payments under Medicaid. Sec. 44108. Increasing frequency of eligibility redeterminations for certain indi- viduals. Sec. 44109. Revising home equity limit for determining eligibility for long-term care services under the Medicaid program. Sec. 44110. Prohibiting Federal financial participation under Medicaid and CHIP for individuals without verified citizenship, nationality, or satisfactory immigration status. Sec. 44111. Reducing expansion FMAP for certain States providing payments for health care furnished to certain individuals. SUBPART B—PREVENTING WASTEFUL SPENDING Sec. 44121. Moratorium on implementation of rule relating to staffing stand- ards for long-term care facilities under the Medicare and Med- icaid programs. Sec. 44122. Modifying retroactive coverage under the Medicaid and CHIP pro- grams. Sec. 44123. Ensuring accurate payments to pharmacies under Medicaid. Sec. 44124. Preventing the use of abusive spread pricing in Medicaid. Sec. 44125. Prohibiting Federal Medicaid and CHIP funding for gender transi- tion procedures for minors. Sec. 44126. Federal payments to prohibited entities. SUBPART C—STOPPING ABUSIVE FINANCING PRACTICES VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 •HR 1 RH Sec. 44131. Sunsetting eligibility for increased FMAP for new expansion States. Sec. 44132. Moratorium on new or increased provider taxes. Sec. 44133. Revising the payment limit for certain State directed payments. Sec. 44134. Requirements regarding waiver of uniform tax requirement for Medicaid provider tax. Sec. 44135. Requiring budget neutrality for Medicaid demonstration projects under section 1115. SUBPART D—INCREASING PERSONAL ACCOUNTABILITY Sec. 44141. Requirement for States to establish Medicaid community engage- ment requirements for certain individuals. Sec. 44142. Modifying cost sharing requirements for certain expansion individ- uals under the Medicaid program. PART 2—AFFORDABLE CARE ACT Sec. 44201. Addressing waste, fraud, and abuse in the ACA Exchanges. PART 3—IMPROVING AMERICANS’ ACCESS TO CARE Sec. 44301. Expanding and clarifying the exclusion for orphan drugs under the Drug Price Negotiation Program. Sec. 44302. Streamlined enrollment process for eligible out-of-state providers under Medicaid and CHIP. Sec. 44303. Delaying DSH reductions. Sec. 44304. Modifying update to the conversion factor under the physician fee schedule under the Medicare program. Sec. 44305. Modernizing and Ensuring PBM Accountability. TITLE V—COMMITTEE ON FINANCIAL SERVICES Sec. 50001. Green and resilient retrofit program for multifamily family hous- ing. Sec. 50002. Public Company Accounting Oversight Board. Sec. 50003. Bureau of Consumer Financial Protection. Sec. 50004. Consumer Financial Civil Penalty Fund. Sec. 50005. Financial Research Fund. TITLE VI—COMMITTEE ON HOMELAND SECURITY Sec. 60001. Border barrier system construction, invasive species, and border se- curity facilities improvements. Sec. 60002. U.S. Customs and Border Protection personnel and fleet vehicles. Sec. 60003. U.S. Customs and Border Protection technology, National Vetting Center, and other efforts to enhance border security. Sec. 60004. State and local law enforcement presidential residence protection. Sec. 60005. State homeland security grant program. TITLE VII—COMMITTEE ON THE JUDICIARY Subtitle A—Immigration Matters PART 1—IMMIGRATION FEES Sec. 70001. Applicability of the immigration laws. Sec. 70002. Asylum fee. VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 8 •HR 1 RH Sec. 70003. Employment authorization document fees. Sec. 70004. Parole fee. Sec. 70005. Special immigrant juvenile fee. Sec. 70006. Temporary protected status fee. Sec. 70007. Unaccompanied alien child sponsor fee. Sec. 70008. Visa integrity fee. Sec. 70009. Form I–94 fee. Sec. 70010. Yearly asylum fee. Sec. 70011. Fee for continuances granted in immigration court proceedings. Sec. 70012. Fee relating to renewal and extension of employment authorization for parolees. Sec. 70013. Fee relating to termination, renewal, and extension of employment authorization for asylum applicants. Sec. 70014. Fee relating to renewal and extension of employment authorization for aliens granted temporary protected status. Sec. 70015. Diversity immigrant visa fees. Sec. 70016. EOIR fees. Sec. 70017. ESTA fee. Sec. 70018. Immigration user fees. Sec. 70019. EVUS fee. Sec. 70020. Fee for sponsor of unaccompanied alien child who fails to appear in immigration court. Sec. 70021. Fee for aliens ordered removed in absentia. Sec. 70022. Customs and Border Protection inadmissible alien apprehension fee. Sec. 70023. Amendment to authority to apply for asylum. PART 2—USE OF FUNDS Sec. 70100. Executive Office for Immigration Review. Sec. 70101. Adult alien detention capacity and family residential centers. Sec. 70102. Retention and signing bonuses for U.S. Immigration and Customs Enforcement personnel. Sec. 70103. Hiring of additional U.S. Immigration and Customs Enforcement personnel. Sec. 70104. U.S. Immigration and Customs Enforcement hiring capability. Sec. 70105. Transportation and removal operations. Sec. 70106. Information technology investments. Sec. 70107. Facilities upgrades. Sec. 70108. Fleet modernization. Sec. 70109. Promoting family unity. Sec. 70110. Funding section 287(g) of the Immigration and Nationality Act. Sec. 70111. Compensation for incarceration of criminal aliens. Sec. 70112. Office of the Principal Legal Advisor. Sec. 70113. Return of aliens arriving from contiguous territory. Sec. 70114. State and local participation in homeland security efforts. Sec. 70115. Unaccompanied alien children capacity. Sec. 70116. Department of Homeland Security criminal and gang checks for unaccompanied alien children. Sec. 70117. Department of Health and Human Services criminal and gang checks for unaccompanied alien children. Sec. 70118. Information about sponsors and adult residents of sponsor house- holds. Sec. 70119. Repatriation of unaccompanied alien children. Sec. 70120. United States Secret Service. VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 •HR 1 RH Sec. 70121. Combating drug trafficking and illegal drug use. Sec. 70122. Investigating and prosecuting immigration related matters. Sec. 70123. Expedited removal for criminal aliens. Sec. 70124. Removal of certain criminal aliens without further hearing. Subtitle B—Regulatory Matters Sec. 70200. Review of agency rulemaking. Sec. 70201. Congressional review act compliance. Subtitle C—Other Matters Sec. 70300. Limitation on donations made pursuant to settlement agreements to which the United States is a party. Sec. 70301. Solicitation of orders defined. Sec. 70302. Restriction of funds. TITLE VIII—COMMITTEE ON NATURAL RESOURCES Subtitle A—Energy and Mineral Resources PART I—OIL AND GAS Sec. 80101. Onshore oil and gas lease sales. Sec. 80102. Noncompetitive leasing. Sec. 80103. Permit fees. Sec. 80104. Permitting fee for non-Federal land. Sec. 80105. Reinstate reasonable royalty rates. PART II—GEOTHERMAL Sec. 80111. Geothermal leasing. Sec. 80112. Geothermal royalties. PART III—ALASKA Sec. 80121. Coastal plain oil and gas leasing. Sec. 80122. National Petroleum Reserve–Alaska. PART IV—MINING Sec. 80131. Superior National Forest lands in Minnesota. Sec. 80132. Ambler Road in Alaska. PART V—COAL Sec. 80141. Coal leasing. Sec. 80142. Future coal leasing. Sec. 80143. Coal royalty. Sec. 80144. Authorization to mine Federal minerals. PART VI—NEPA Sec. 80151. Project sponsor opt-in fees for environmental reviews. Sec. 80152. Rescission relating to environmental and climate data collection. PART VII—MISCELLANEOUS Sec. 80161. Protest fees. VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 •HR 1 RH PART VIII—OFFSHORE OIL AND GAS LEASING Sec. 80171. Mandatory offshore oil and gas lease sales. Sec. 80172. Offshore commingling. Sec. 80173. Limitations on amount of distributed qualified outer Continental Shelf revenues. PART IX—RENEWABLE ENERGY Sec. 80181. Renewable energy fees on Federal lands. Sec. 80182. Renewable energy revenue sharing. Subtitle B—Water, Wildlife, and Fisheries Sec. 80201. Rescission of funds for investing in coastal communities and cli- mate resilience. Sec. 80202. Rescission of funds for facilities of National Oceanic and Atmos- pheric Administration and national marine sanctuaries. Sec. 80203. Surface water storage enhancement. Sec. 80204. Water conveyance enhancement. Subtitle C—Federal Lands Sec. 80301. Prohibition on the Implementation of the Rock Springs Field Of- fice, Wyoming, Resource Management Plan. Sec. 80302. Prohibition on the Implementation of the Buffalo Field Office, Wy- oming, Resource Management Plan. Sec. 80303. Prohibition on the Implementation of the Miles City Field Office, Montana, Resource Management Plan. Sec. 80304. Prohibition on the Implementation of the North Dakota Resource Management Plan. Sec. 80305. Prohibition on the Implementation of the Colorado River Valley Field Office and Grand Junction Field Office Resource Man- agement Plans. Sec. 80306. Rescission of Forest Service Funds. Sec. 80307. Rescission of National Park Service and Bureau of Land Manage- ment Funds. Sec. 80308. Rescission of Bureau of Land Management and National Park Service Funds. Sec. 80309. Rescission of National Park Service Funds. Sec. 80310. Celebrating America’s 250th Anniversary. Sec. 80311. Long-Term Contracts for the Forest Service. Sec. 80312. Long-Term Contracts for the Bureau of Land Management. Sec. 80313. Timber production for the Forest Service. Sec. 80314. Timber Production for the Bureau of Land Management. Sec. 80315. Bureau of Land Management Land in Nevada. Sec. 80316. Forest Service Land in Nevada. Sec. 80317. Federal land in Utah. TITLE IX—COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM Sec. 90001. Increase in FERS employee contribution requirements. Sec. 90002. Elimination of FERS annuity supplement. Sec. 90003. High-5 average pay for calculating CSRS and FERS pension. Sec. 90004. Election for at-will employment and lower FERS contributions for new Federal civil service hires. VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 11 •HR 1 RH Sec. 90005. Filing fee for Merit Systems Protection Board claims and appeals. Sec. 90006. FEHB protection. TITLE X—COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE Sec. 100001. Coast Guard assets necessary to secure the maritime border and interdict migrants and drugs. Sec. 100002. Changes to mandatory benefits programs to allow selected reserve orders for preplanned missions to secure maritime borders and interdict persons and drugs. Sec. 100003. Vessel tonnage duties. Sec. 100004. Registration fee on motor vehicles. Sec. 100005. Deposit of registration fee on motor vehicles. Sec. 100006. Motor carrier data. Sec. 100007. IRA rescissions. Sec. 100008. Air traffic control staffing and modernization. Sec. 100009. John F. Kennedy Center for the Performing Arts appropriations. TITLE XI—COMMITTEE ON WAYS AND MEANS, ‘‘THE ONE, BIG, BEAUTIFUL BILL’’ Sec. 110000. References to the Internal Revenue Code of 1986, etc. Subtitle A—Make American Families and Workers Thrive Again PART 1—PERMANENTLY PREVENTING TAX HIKES ON AMERICAN FAMILIES AND WORKERS Sec. 110001. Extension of modification of rates. Sec. 110002. Extension of increased standard deduction and temporary en- hancement. Sec. 110003. Termination of deduction for personal exemptions. Sec. 110004. Extension of increased child tax credit and temporary enhance- ment. Sec. 110005. Extension of deduction for qualified business income and perma- nent enhancement. Sec. 110006. Extension of increased estate and gift tax exemption amounts and permanent enhancement. Sec. 110007. Extension of increased alternative minimum tax exemption and phase-out thresholds. Sec. 110008. Extension of limitation on deduction for qualified residence inter- est. Sec. 110009. Extension of limitation on casualty loss deduction. Sec. 110010. Termination of miscellaneous itemized deduction. Sec. 110011. Limitation on tax benefit of itemized deductions. Sec. 110012. Termination of qualified bicycle commuting reimbursement exclu- sion. Sec. 110013. Extension of limitation on exclusion and deduction for moving ex- penses. Sec. 110014. Extension of limitation on wagering losses. Sec. 110015. Extension of increased limitation on contributions to ABLE ac- counts and permanent enhancement. Sec. 110016. Extension of savers credit allowed for ABLE contributions. Sec. 110017. Extension of rollovers from qualified tuition programs to ABLE accounts permitted. VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 12 •HR 1 RH Sec. 110018. Extension of treatment of certain individuals performing services in the Sinai Peninsula and enhancement to include additional areas. Sec. 110019. Extension of exclusion from gross income of student loans dis- charged on account of death or disability. PART 2—ADDITIONAL TAX RELIEF FOR AMERICAN FAMILIES AND WORKERS Sec. 110101. No tax on tips. Sec. 110102. No tax on overtime. Sec. 110103. Enhanced deduction for seniors. Sec. 110104. No tax on car loan interest. Sec. 110105. Enhancement of employer-provided child care credit. Sec. 110106. Extension and enhancement of paid family and medical leave credit. Sec. 110107. Enhancement of adoption credit. Sec. 110108. Recognizing Indian tribal governments for purposes of deter- mining whether a child has special needs for purposes of the adoption credit. Sec. 110109. Tax credit for contributions of individuals to scholarship granting organizations. Sec. 110110. Additional elementary, secondary, and home school expenses treated as qualified higher education expenses for purposes of 529 accounts. Sec. 110111. Certain postsecondary credentialing expenses treated as qualified higher education expenses for purposes of 529 accounts. Sec. 110112. Reinstatement of partial deduction for charitable contributions of individuals who do not elect to itemize. Sec. 110113. Exclusion for certain employer payments of student loans under educational assistance programs made permanent and adjusted for inflation. Sec. 110114. Extension of rules for treatment of certain disaster-related per- sonal casualty losses. Sec. 110115. MAGA accounts. Sec. 110116. MAGA accounts contribution pilot program. PART 3—INVESTING IN HEALTH OF AMERICAN FAMILIES AND WORKERS Sec. 110201. Treatment of health reimbursement arrangements integrated with individual market coverage. Sec. 110202. Participants in CHOICE arrangement eligible for purchase of Ex- change insurance under cafeteria plan. Sec. 110203. Employer credit for CHOICE arrangement. Sec. 110204. Individuals entitled to part A of Medicare by reason of age al- lowed to contribute to health savings accounts. Sec. 110205. Treatment of direct primary care service arrangements. Sec. 110206. Allowance of bronze and catastrophic plans in connection with health savings accounts. Sec. 110207. On-site employee clinics. Sec. 110208. Certain amounts paid for physical activity, fitness, and exercise treated as amounts paid for medical care. Sec. 110209. Allow both spouses to make catch-up contributions to the same health savings account. Sec. 110210. FSA and HRA terminations or conversions to fund HSAs. Sec. 110211. Special rule for certain medical expenses incurred before estab- lishment of health savings account. VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 13 •HR 1 RH Sec. 110212. Contributions permitted if spouse has health flexible spending ar- rangement. Sec. 110213. Increase in health savings account contribution limitation for cer- tain individuals. Sec. 110214. Regulations. Subtitle B—Make Rural America and Main Street Grow Again PART 1—EXTENSION OF TAX CUTS AND JOBS ACT REFORMS FOR RURAL AMERICA AND MAIN STREET Sec. 111001. Extension of special depreciation allowance for certain property. Sec. 111002. Deduction of domestic research and experimental expenditures. Sec. 111003. Modified calculation of adjusted taxable income for purposes of business interest deduction. Sec. 111004. Extension of deduction for foreign-derived intangible income and global intangible low-taxed income. Sec. 111005. Extension of base erosion minimum tax amount. PART 2—ADDITIONAL TAX RELIEF FOR RURAL AMERICA AND MAIN STREET Sec. 111101. Special depreciation allowance for qualified production property. Sec. 111102. Renewal and enhancement of opportunity zones. Sec. 111103. Increased dollar limitations for expensing of certain depreciable business assets. Sec. 111104. Repeal of revision to de minimis rules for third party network transactions. Sec. 111105. Increase in threshold for requiring information reporting with re- spect to certain payees. Sec. 111106. Repeal of excise tax on indoor tanning services. Sec. 111107. Exclusion of interest on loans secured by rural or agricultural real property. Sec. 111108. Treatment of certain qualified sound recording productions. Sec. 111109. Modifications to low-income housing credit. Sec. 111110. Increased gross receipts threshold for small manufacturing busi- nesses. Sec. 111111. Global intangible low-taxed income determined without regard to certain income derived from services performed in the Virgin Islands. Sec. 111112. Extension and modification of clean fuel production credit. PART 3—INVESTING IN THE HEALTH OF RURAL AMERICA AND MAIN STREET Sec. 111201. Expanding the definition of rural emergency hospital under the Medicare program. Subtitle C—Make America Win Again PART 1—WORKING FAMILIES OVER ELITES Sec. 112001. Termination of previously-owned clean vehicle credit. Sec. 112002. Termination of clean vehicle credit. Sec. 112003. Termination of qualified commercial clean vehicles credit. Sec. 112004. Termination of alternative fuel vehicle refueling property credit. Sec. 112005. Termination of energy efficient home improvement credit. Sec. 112006. Termination of residential clean energy credit. VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 14 •HR 1 RH Sec. 112007. Termination of new energy efficient home credit. Sec. 112008. Phase-out and restrictions on clean electricity production credit. Sec. 112009. Phase-out and restrictions on clean electricity investment credit. Sec. 112010. Repeal of transferability of clean fuel production credit. Sec. 112011. Restrictions on carbon oxide sequestration credit. Sec. 112012. Phase-out and restrictions on zero-emission nuclear power produc- tion credit. Sec. 112013. Termination of clean hydrogen production credit. Sec. 112014. Phase-out and restrictions on advanced manufacturing production credit. Sec. 112015. Phase-out of credit for certain energy property. Sec. 112016. Income from hydrogen storage, carbon capture added to quali- fying income of certain publicly traded partnerships treated as corporations. Sec. 112017. Limitation on amortization of certain sports franchises. Sec. 112018. Limitation on individual deductions for certain State and local taxes, etc. Sec. 112019. Excessive employee remuneration from controlled group members and allocation of deduction. Sec. 112020. Expanding application of tax on excess compensation within tax- exempt organizations. Sec. 112021. Modification of excise tax on investment income of certain private colleges and universities. Sec. 112022. Increase in rate of tax on net investment income of certain pri- vate foundations. Sec. 112023. Certain purchases of employee-owned stock disregarded for pur- poses of foundation tax on excess business holdings. Sec. 112024. Unrelated business taxable income increased by amount of certain fringe benefit expenses for which deduction is disallowed. Sec. 112025. Name and logo royalties treated as unrelated business taxable in- come. Sec. 112026. Exclusion of research income limited to publicly available re- search. Sec. 112027. Limitation on excess business losses of noncorporate taxpayers. Sec. 112028. 1-percent floor on deduction of charitable contributions made by corporations. Sec. 112029. Enforcement of remedies against unfair foreign taxes. Sec. 112030. Reduction of excise tax on firearms silencers. Sec. 112031. Modifications to de minimis entry privilege for commercial ship- ments. Sec. 112032. Limitation on drawback of taxes paid with respect to substituted merchandise. PART 2—REMOVING TAXPAYER BENEFITS FOR ILLEGAL IMMIGRANTS Sec. 112101. Permitting premium tax credit only for certain individuals. Sec. 112102. Certain aliens treated as ineligible for premium tax credit. Sec. 112103. Disallowing premium tax credit during periods of Medicaid ineli- gibility due to alien status. Sec. 112104. Limiting Medicare coverage of certain individuals. Sec. 112105. Excise tax on remittance transfers. Sec. 112106. Social security number requirement for American opportunity and lifetime learning credits. PART 3—PREVENTING FRAUD, WASTE, AND ABUSE VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6211 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 15 •HR 1 RH Sec. 112201. Requiring Exchange verification of eligibility for health plan. Sec. 112202. Disallowing premium tax credit in case of certain coverage en- rolled in during special enrollment period. Sec. 112203. Eliminating limitation on recapture of advance payment of pre- mium tax credit. Sec. 112204. Implementing artificial intelligence tools for purposes of reducing and recouping improper payments under Medicare. Sec. 112205. Enforcement provisions with respect to COVID-related employee retention credits. Sec. 112206. Earned income tax credit reforms. Sec. 112207. Task force on the termination of Direct File. Sec. 112208. Postponement of tax deadlines for hostages and individuals wrongfully detained abroad. Sec. 112209. Termination of tax-exempt status of terrorist supporting organi- zations. Sec. 112210. Increase in penalties for unauthorized disclosures of taxpayer in- formation. Sec. 112211. Restriction on regulation of contingency fees with respect to tax returns, etc. Subtitle D—Increase in Debt Limit Sec. 113001. Modification of limitation on the public debt. TITLE I—COMMITTEE ON 1 AGRICULTURE 2 Subtitle A—Nutrition 3 SEC. 10001. THRIFTY FOOD PLAN. 4 Section 3(u) of the Food and Nutrition Act of 2008 5 (7 U.S.C. 2012(u)) is amended to read as follows: 6 ‘‘(u)(1) ‘Thrifty food plan’ means the diet required 7 to feed a family of 4 persons consisting of a man and a 8 woman 20 through 50, a child 6 through 8, and a child 9 9 through 11 years of age, based on relevant market bas- 10 kets that shall only be changed pursuant to paragraph (3). 11 The cost of such diet shall be the basis for uniform allot- 12 ments for all households regardless of their actual com- 13 position. The Secretary shall only adjust the cost of the 14 diet as specified in paragraphs (2) and (4). 15 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 16 •HR 1 RH ‘‘(2) HOUSEHOLD ADJUSTMENTS.—The Secretary 1 shall make household-size adjustments based on the fol- 2 lowing ratios of household size as a percentage of the max- 3 imum 4-person allotment: 4 ‘‘(A) For a 1-person household, 30 percent. 5 ‘‘(B) For a 2-person household, 55 percent. 6 ‘‘(C) For a 3-person household, 79 percent. 7 ‘‘(D) For a 4-person household, 100 percent. 8 ‘‘(E) For a 5-person household, 119 percent. 9 ‘‘(F) For a 6-person household, 143 percent. 10 ‘‘(G) For a 7-person household, 158 percent. 11 ‘‘(H) For an 8-person household, 180 percent. 12 ‘‘(I) For a 9-person household, 203 percent. 13 ‘‘(J) For a 10-person household, 224 percent. 14 ‘‘(K) For households with more than 10 per- 15 sons, such adjustment for each additional person 16 shall be 224 percent plus the product of 21 percent 17 and the difference in the number of persons in the 18 household and 10. 19 ‘‘(3) REEVALUATION OF MARKET BASKETS.— 20 ‘‘(A) EVALUATION.—Not earlier than Oc- 21 tober 1, 2028, and at not more frequently than 22 5-year intervals thereafter, the Secretary may 23 reevaluate the market baskets of the thrifty 24 food plan taking into consideration current food 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 17 •HR 1 RH prices, food composition data, consumption pat- 1 terns, and dietary guidance. 2 ‘‘(B) NOTICE.—Prior to any update of the 3 market baskets of the thrifty food plan based 4 on a reevaluation pursuant to subparagraph 5 (A), the methodology and results of any such 6 revelation shall be published in the Federal 7 Register with an opportunity for comment of 8 not less than 60 days. 9 ‘‘(C) COST NEUTRALITY.—The Secretary 10 shall not increase the cost of the thrifty food 11 plan based on a reevaluation or update under 12 this paragraph. 13 ‘‘(4) ALLOWABLE COST ADJUSTMENTS.—On 14 October 1 immediately following the effective date of 15 this paragraph and on each October 1 thereafter, 16 the Secretary shall— 17 ‘‘(A) adjust the cost of the thrifty food 18 plan to reflect changes in the Consumer Price 19 Index for All Urban Consumers, published by 20 the Bureau of Labor Statistics of the Depart- 21 ment of Labor, for the most recent 12-month 22 period ending in June; 23 ‘‘(B) make cost adjustments in the thrifty 24 food plan for urban and rural parts of Hawaii 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 18 •HR 1 RH and urban and rural parts of Alaska to reflect 1 the cost of food in urban and rural Hawaii and 2 urban and rural Alaska provided such cost ad- 3 justment shall not exceed the rate of increase 4 described in the Consumer Price Index for All 5 Urban Consumers, published by the Bureau of 6 Labor Statistics of the Department of Labor, 7 for the most recent 12-month period ending in 8 June; and 9 ‘‘(C) make cost adjustments in the sepa- 10 rate thrifty food plans for Guam and the Virgin 11 Islands of the United States to reflect the cost 12 of food in those States, but not to exceed the 13 cost of food in the 50 States and the District 14 of Columbia, provided that such cost adjust- 15 ment shall not exceed the rate of increase de- 16 scribed in the Consumer Price Index for All 17 Urban Consumers, published by the Bureau of 18 Labor Statistics of the Department of Labor, 19 for the most recent 12-month period ending in 20 June.’’. 21 SEC. 10002. ABLE BODIED ADULTS WITHOUT DEPENDENTS 22 WORK REQUIREMENTS. 23 (a) Section 6(o)(3) of the Food and Nutrition Act 24 of 2008 is amended to read as follows: 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 19 •HR 1 RH ‘‘(3) EXCEPTION.—Paragraph (2) shall not 1 apply to an individual if the individual is— 2 ‘‘(A) under 18 or over 65 years of age; 3 ‘‘(B) medically certified as physically or 4 mentally unfit for employment; 5 ‘‘(C) a parent or other member of a house- 6 hold with responsibility for a dependent child 7 under 7 years of age; 8 ‘‘(D) otherwise exempt under subsection 9 (d)(2); 10 ‘‘(E) a pregnant woman; 11 ‘‘(F) currently homeless; 12 ‘‘(G) a veteran; 13 ‘‘(H) 24 years of age or younger and was 14 in foster care under the responsibility of a State 15 on the date of attaining 18 years of age or such 16 higher age as the State has elected under sec- 17 tion 475(8)(B)(iii) of the Social Security Act 18 (42 U.S.C. 675(8)(B)(iii)); or 19 ‘‘(I) responsible for a dependent child 7 20 years of age or older and is married to, and re- 21 sides with, an individual who is in compliance 22 with the requirements of paragraph (2).’’. 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 20 •HR 1 RH (b) SUNSET PROVISION.—The exceptions in subpara- 1 graphs (F) through (H) shall cease to have effect on Octo- 2 ber 1, 2030. 3 SEC. 10003. ABLE BODIED ADULTS WITHOUT DEPENDENTS 4 WAIVERS. 5 Section 6(o) of the Food and Nutrition Act of 2008 6 (7 U.S.C. 2015(o)) is amended— 7 (1) by amending paragraph (4)(A) to read as 8 follows: 9 ‘‘(A) IN GENERAL.—On the request of a 10 State agency and with the support of the chief 11 executive officer of the State, the Secretary may 12 waive the applicability of paragraph (2) for not 13 more than 12 consecutive months to any group 14 of individuals in the State if the Secretary 15 makes a determination that the county, or 16 county-equivalent (as recognized by the Census 17 Bureau) in which the individuals reside has an 18 unemployment rate of over 10 percent.’’; and 19 (2) in paragraph (6)(F) by striking ‘‘8 percent’’ 20 and inserting ‘‘1 percent’’. 21 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 21 •HR 1 RH SEC. 10004. AVAILABILITY OF STANDARD UTILITY ALLOW- 1 ANCES BASED ON RECEIPT OF ENERGY AS- 2 SISTANCE. 3 (a) ALLOWANCE TO RECIPIENTS OF ENERGY ASSIST- 4 ANCE.— 5 (1) STANDARD UTILITY ALLOWANCE.—Section 6 5(e)(6)(C)(iv)(I) of the of the Food and Nutrition 7 Act of 2008 (7 U.S.C. 2014(e)(6)(C)(iv)(I)) is 8 amended by inserting ‘‘with an elderly or disabled 9 member’’ after ‘‘households’’. 10 (2) CONFORMING AMENDMENTS.—Section 11 2605(f)(2)(A) of the Low-Income Home Energy As- 12 sistance Act is amended by inserting ‘‘received by a 13 household with an elderly or disabled member’’ be- 14 fore ‘‘, consistent with section 5(e)(6)(C)(iv)(I)’’. 15 (b) THIRD-PARTY ENERGY ASSISTANCE PAY- 16 MENTS.—Section 5(k)(4) of the Food and Nutrition Act 17 of 2008 (7 U.S.C. 2014(k)(4)) is amended— 18 (1) in subparagraph (A) by inserting ‘‘without 19 an elderly or disabled member’’ after ‘‘household’’ 20 the 1st place it appears; and 21 (2) in subparagraph (B) by inserting ‘‘with an 22 elderly or disabled member’’ after ‘‘household’’ the 23 1st place it appears. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 22 •HR 1 RH SEC. 10005. RESTRICTIONS ON INTERNET EXPENSES. 1 Section 5(e)(6) of the Food and Nutrition Act of 2 2008 (7 U.S.C. 2014(e)(6)) is amended by adding at the 3 end the following: 4 ‘‘(E) RESTRICTIONS ON INTERNET EX- 5 PENSES.—Service fees associated with internet 6 connection, including, but not limited to, 7 monthly subscriber fees (i.e., the base rate paid 8 by the household each month in order to receive 9 service, which may include high-speed internet), 10 taxes and fees charged to the household by the 11 provider that recur on regular bills, the cost of 12 modem rentals, and fees charged by the pro- 13 vider for initial installation, shall not be used in 14 computing the excess shelter expense deduc- 15 tion.’’. 16 SEC. 10006. MATCHING FUNDS REQUIREMENTS. 17 (a) IN GENERAL.—Section 4(a) of the Food and Nu- 18 trition Act of 2008 (7 U.S.C. 2013(a)) is amended— 19 (1) by striking ‘‘(a) Subject to’’ and inserting 20 the following: 21 ‘‘(a) PROGRAM.— 22 ‘‘(1) ESTABLISHMENT.—Subject to’’; and 23 (2) by adding at the end the following: 24 ‘‘(2) MATCHING FUNDS REQUIREMENTS.— 25 ‘‘(A) IN GENERAL.— 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 23 •HR 1 RH ‘‘(i) FEDERAL SHARE.—Subject to sub- 1 paragraph (B), the Federal share of the cost of 2 allotments described in paragraph (1) in a fis- 3 cal year shall be— 4 ‘‘(I) for each of fiscal years 2026 and 5 2027, 100 percent; and 6 ‘‘(II) for fiscal year 2028 and each 7 fiscal year thereafter, 95 percent. 8 ‘‘(ii) STATE SHARE.—Subject to subpara- 9 graph (B), the State share of the cost of allot- 10 ments described in paragraph (1) in a fiscal 11 year shall be— 12 ‘‘(I) for each of fiscal years 2026 and 13 2027, 0 percent; and 14 ‘‘(II) for fiscal year 2028 and each 15 fiscal year thereafter, 5 percent. 16 ‘‘(B) STATE QUALITY CONTROL INCENTIVE.— 17 Beginning in fiscal year 2028, any State that has a 18 payment error rate, as defined in section 16, for the 19 most recent complete fiscal year for which data is 20 available, of— 21 ‘‘(i) equal to or greater than 6 percent but 22 less than 8 percent, shall have its Federal share 23 of the cost of allotments described in paragraph 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 24 •HR 1 RH (1) for the current fiscal year equal 85 percent, 1 and its State share equal 15 percent; 2 ‘‘(ii) equal to or greater than 8 percent but 3 less than 10 percent, shall have its Federal 4 share of the cost of allotments described in 5 paragraph (1) for the current fiscal year equal 6 80 percent, and its State share equal 20 per- 7 cent; and 8 ‘‘(iii) equal to or greater than 10 percent, 9 shall have its Federal share of the cost of allot- 10 ments described in paragraph (1) for the cur- 11 rent fiscal year equal 75 percent, and its State 12 share equal 25 percent.’’. 13 (b) RULE OF CONSTRUCTION.—The Secretary of Ag- 14 riculture may not pay towards the cost of allotments de- 15 scribed in paragraph (1) of section 4(a) of the Food and 16 Nutrition Act of 2008 (7 U.S.C. 2013(a)), as designated 17 by subsection (a), an amount greater than the applicable 18 Federal share described in paragraph (2) of such section 19 4(a), as added by subsection (a). 20 SEC. 10007. ADMINISTRATIVE COST SHARING. 21 Section 16(a) of the Food and Nutrition Act of 2008 22 (7 U.S.C. 2025(a)) is amended by striking ‘‘50 per cen- 23 tum’’ and inserting ‘‘25 percent’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 25 •HR 1 RH SEC. 10008. GENERAL WORK REQUIREMENT AGE. 1 Section 6(d) of the Food and Nutrition Act of 2008 2 (7 U.S.C. 2015(d)) is amended— 3 (1) in paragraph (1)(A), in the matter pre- 4 ceding clause (i), by striking ‘‘over the age of 15 and 5 under the age of 60’’ and inserting ‘‘over the age of 6 17 and under the age of 65’’; and 7 (2) in paragraph (2)— 8 (A) by striking ‘‘child under age six’’ and 9 inserting ‘‘child under age seven’’; and 10 (B) by striking ‘‘between 1 and 6 years of 11 age’’ and inserting ‘‘between 1 and 7 years of 12 age’’. 13 SEC. 10009. NATIONAL ACCURACY CLEARINGHOUSE. 14 Section 11(x)(2) of the Food and Nutrition Act of 15 2008 (7 U.S.C. 2020(x)(2)) is amended by adding at the 16 end the following: 17 ‘‘(D) DATA SHARING TO PREVENT OTHER 18 MULTIPLE ISSUANCES.—A State agency shall 19 use each indication of multiple issuance, or each 20 indication that an individual receiving supple- 21 mental nutrition assistance program benefits in 22 1 State has applied to receive supplemental nu- 23 trition assistance program benefits in another 24 State, to prevent multiple issuances of other 25 Federal and State assistance program benefits 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 26 •HR 1 RH that a State agency administers through the in- 1 tegrated eligibility system that the State uses to 2 administer the supplemental nutrition assist- 3 ance program in the State.’’. 4 SEC. 10010. QUALITY CONTROL ZERO TOLERANCE. 5 Section 16(c)(1)(A)(ii) of the Food and Nutrition Act 6 of 2008 (7 U.S.C. 2025(c)(1)(A)(ii)) is amended— 7 (1) in subclause (I), by striking ‘‘and’’ at the 8 end; 9 (2) in subclause (II)— 10 (A) by striking ‘‘fiscal year thereafter’’ and 11 inserting ‘‘of fiscal years 2015 through 2025’’; 12 and 13 (B) by striking the period at the end and 14 inserting ‘‘; and’’; and 15 (3) by adding at the end the following: 16 ‘‘(III) for each fiscal year there- 17 after, $0.’’. 18 SEC. 10011. NATIONAL EDUCATION AND OBESITY PREVEN- 19 TION GRANT PROGRAM REPEALER. 20 The Food and Nutrition Act of 2008 (7 U.S.C. 2011 21 et seq.) is amended by striking section 28 (7 U.S.C. 22 2036a). 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 27 •HR 1 RH SEC. 10012. ALIEN SNAP ELIGIBILITY. 1 Section 6(f) of the Food and Nutrition Act of 2008 2 (7 U.S.C. 2015(f)) is amended— 3 (1) in the 1st sentence— 4 (A) by striking ‘‘No’’ and inserting ‘‘In ad- 5 dition to the limitations on eligibility in the Per- 6 sonal Responsibility and Work Opportunity 7 Reconciliation Act of 1996, no’’; and 8 (B) by striking ‘‘; or (C) an alien who en- 9 tered the United States prior to June 30, 1948, 10 or such subsequent date as is enacted by law, 11 has continuously maintained his or her resi- 12 dence in the United States since then, and is 13 not ineligible for citizenship, but who is deemed 14 to be lawfully admitted for permanent residence 15 as a result of an exercise of discretion by the 16 Attorney General pursuant to section 249 of 17 the Immigration and Nationality Act (8 U.S.C. 18 1259); or (D) an alien who has qualified for 19 conditional entry pursuant to sections 207 and 20 208 of the Immigration and Nationality Act (8 21 U.S.C. 1157 and 1158); or (E) an alien who is 22 lawfully present in the United States as a result 23 of an exercise of discretion by the Attorney 24 General for emergent reasons or reasons 25 deemed strictly in the public interest pursuant 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 28 •HR 1 RH to section 212(d)(5) of the Immigration and 1 Nationality Act (8 U.S.C. 1182(d)(5)); or (F) 2 an alien within the United States as to whom 3 the Attorney General has withheld deportation 4 pursuant to section 243 of the Immigration and 5 Nationality Act (8 U.S.C. 1253(h))’’; and 6 (2) in the 2d sentence by striking ‘‘clauses (B) 7 through (F)’’ and inserting ‘‘paragraph (2)(B)’’. 8 SEC. 10012. EMERGENCY FOOD ASSISTANCE. 9 Section 203D(d)(5) of the Emergency Food Assist- 10 ance Act of 1983 (7 U.S.C. 7507(d)(5)) is amended by 11 striking ‘‘2024’’ and inserting ‘‘2031’’. 12 Subtitle B—Investment in Rural 13 America 14 SEC. 10101. SAFETY NET. 15 (a) REFERENCE PRICE.—Section 1111(19) of the 16 Agricultural Act of 2014 (7 U.S.C. 9011(19)) is amended 17 to read as follows: 18 ‘‘(19) REFERENCE PRICE.— 19 ‘‘(A) IN GENERAL.—Subject to subpara- 20 graphs (B) and (C), the term ‘reference price’, 21 with respect to a covered commodity for a crop 22 year, means the following: 23 ‘‘(i) For wheat, $6.35 per bushel. 24 ‘‘(ii) For corn, $4.10 per bushel. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 29 •HR 1 RH ‘‘(iii) For grain sorghum, $4.40 per 1 bushel. 2 ‘‘(iv) For barley, $5.45 per bushel. 3 ‘‘(v) For oats, $2.65 per bushel. 4 ‘‘(vi) For long grain rice, $16.90 per 5 hundredweight. 6 ‘‘(vii) For medium grain rice, $16.90 7 per hundredweight. 8 ‘‘(viii) For soybeans, $10.00 per bush- 9 el. 10 ‘‘(ix) For other oilseeds, $23.75 per 11 hundredweight. 12 ‘‘(x) For peanuts, $630.00 per ton. 13 ‘‘(xi) For dry peas, $13.10 per hun- 14 dredweight. 15 ‘‘(xii) For lentils, $23.75 per hundred- 16 weight. 17 ‘‘(xiii) For small chickpeas, $22.65 18 per hundredweight. 19 ‘‘(xiv) For large chickpeas, $25.65 per 20 hundredweight. 21 ‘‘(xv) For seed cotton, $0.42 per 22 pound. 23 ‘‘(B) EFFECTIVENESS.—Effective begin- 24 ning with the 2031 crop year, the reference 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 30 •HR 1 RH prices defined in subparagraph (A) with respect 1 to a covered commodity shall equal the ref- 2 erence price in the previous crop year multiplied 3 by 1.005. 4 ‘‘(C) LIMITATION.—In no case shall a ref- 5 erence price for a covered commodity exceed 6 115 percent of the reference price for such cov- 7 ered commodity listed in subparagraph (A).’’. 8 (b) BASE ACRES.—Section 1112 of the Agricultural 9 Act of 2014 (7 U.S.C. 9012) is amended— 10 (1) in subsection (d)(3)(A), by striking ‘‘2023’’ 11 and inserting ‘‘2031’’; and 12 (2) by adding at the end the following: 13 ‘‘(e) ADDITIONAL BASE ACRES.— 14 ‘‘(1) IN GENERAL.—As soon as practicable 15 after the date of enactment of this subsection, and 16 notwithstanding subsection (a), the Secretary shall 17 provide notice to owners of eligible farms pursuant 18 to paragraph (4) and allocate to those eligible farms 19 a total of not more than an additional 30,000,000 20 base acres in the manner provided in this subsection. 21 ‘‘(2) CONTENT OF NOTICE.—The notice under 22 paragraph (1) shall include the following: 23 ‘‘(A) Information that the allocation is oc- 24 curring. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 31 •HR 1 RH ‘‘(B) Information regarding the eligibility 1 of the farm for an allocation of base acres 2 under paragraph (4). 3 ‘‘(C) Information regarding how an owner 4 may appeal a determination of ineligibility for 5 an allocation of base acres under paragraph (4) 6 through an appeals process established by the 7 Secretary. 8 ‘‘(3) OPT-OUT.—An owner of a farm that is eli- 9 gible to receive an allocation of base acres may elect 10 to not receive that allocation by notifying the Sec- 11 retary. 12 ‘‘(4) ELIGIBILITY.— 13 ‘‘(A) IN GENERAL.—Subject to subpara- 14 graph (D), effective beginning with the 2026 15 crop year, a farm is eligible to receive an alloca- 16 tion of base acres if, with respect to the farm, 17 the amount described in subparagraph (B) ex- 18 ceeds the amount described in subparagraph 19 (C). 20 ‘‘(B) 5-YEAR AVERAGE SUM.—The amount 21 described in this subparagraph, with respect to 22 a farm, is the sum of— 23 ‘‘(i) the 5-year average of— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 32 •HR 1 RH ‘‘(I) the acreage planted on the 1 farm to all covered commodities for 2 harvest, grazing, haying, silage or 3 other similar purposes for the 2019 4 through 2023 crop years; and 5 ‘‘(II) any acreage on the farm 6 that the producers were prevented 7 from planting during the 2019 8 through 2023 crop years to covered 9 commodities because of drought, 10 flood, or other natural disaster, or 11 other condition beyond the control of 12 the producers, as determined by the 13 Secretary; plus 14 ‘‘(ii) the lesser of— 15 ‘‘(I) 15 percent of the total acres 16 on the farm; and 17 ‘‘(II) the 5-year average of— 18 ‘‘(aa) the acreage planted on 19 the farm to eligible noncovered 20 commodities for harvest, grazing, 21 haying, silage, or other similar 22 purposes for the 2019 through 23 2023 crop years; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 33 •HR 1 RH ‘‘(bb) any acreage on the 1 farm that the producers were 2 prevented from planting during 3 the 2019 through 2023 crop 4 years to eligible noncovered com- 5 modities because of drought, 6 flood, or other natural disaster, 7 or other condition beyond the 8 control of the producers, as de- 9 termined by the Secretary. 10 ‘‘(C) TOTAL NUMBER OF BASE ACRES FOR 11 COVERED COMMODITIES.—The amount de- 12 scribed in this subparagraph, with respect to a 13 farm, is the total number of base acres for cov- 14 ered commodities on the farm (excluding unas- 15 signed crop base), as in effect on September 30, 16 2024. 17 ‘‘(D) EFFECT OF NO RECENT PLANTINGS 18 OF COVERED COMMODITIES.—In the case of a 19 farm for which the amount determined under 20 clause (i) of subparagraph (B) is equal to zero, 21 that farm shall be ineligible to receive an alloca- 22 tion of base acres under this subsection. 23 ‘‘(E) ACREAGE PLANTED ON THE FARM TO 24 ELIGIBLE NONCOVERED COMMODITIES DE- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 34 •HR 1 RH FINED.—In this paragraph, the term ‘acreage 1 planted on the farm to eligible noncovered com- 2 modities’ means acreage planted on a farm to 3 commodities other than covered commodities, 4 trees, bushes, vines, grass, or pasture (including 5 cropland that was idle or fallow), as determined 6 by the Secretary. 7 ‘‘(5) NUMBER OF BASE ACRES.—Subject to 8 paragraphs (4) and (7), the number of base acres al- 9 located to an eligible farm shall— 10 ‘‘(A) be equal to the difference obtained by 11 subtracting the amount determined under sub- 12 paragraph (C) of paragraph (4) from the 13 amount determined under subparagraph (B) of 14 that paragraph; and 15 ‘‘(B) include unassigned crop base. 16 ‘‘(6) ALLOCATION OF ACRES.— 17 ‘‘(A) ALLOCATION.—The Secretary shall 18 allocate the number of base acres under para- 19 graph (5) among those covered commodities 20 planted on the farm at any time during the 21 2019 through 2023 crop years. 22 ‘‘(B) ALLOCATION FORMULA.—The alloca- 23 tion of additional base acres for covered com- 24 modities shall be in proportion to the ratio of— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 35 •HR 1 RH ‘‘(i) the 5-year average of— 1 ‘‘(I) the acreage planted on the 2 farm to each covered commodity for 3 harvest, grazing, haying, silage, or 4 other similar purposes for the 2019 5 through 2023 crop years; and 6 ‘‘(II) any acreage on the farm 7 that the producers were prevented 8 from planting during the 2019 9 through 2023 crop years to that cov- 10 ered commodity because of drought, 11 flood, or other natural disaster, or 12 other condition beyond the control of 13 the producers, as determined by the 14 Secretary; to 15 ‘‘(ii) the 5-year average determined 16 under paragraph (4)(B)(i). 17 ‘‘(C) INCLUSION OF ALL 5 YEARS IN AVER- 18 AGE.—For the purpose of determining a 5-year 19 acreage average under subparagraph (B) for a 20 farm, the Secretary shall not exclude any crop 21 year in which a covered commodity was not 22 planted. 23 ‘‘(D) TREATMENT OF MULTIPLE PLANTING 24 OR PREVENTED PLANTING.—For the purpose of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 36 •HR 1 RH determining under subparagraph (B) the acre- 1 age on a farm that producers planted or were 2 prevented from planting during the 2019 3 through 2023 crop years to covered commod- 4 ities, if the acreage that was planted or pre- 5 vented from being planted was devoted to an- 6 other covered commodity in the same crop year 7 (other than a covered commodity produced 8 under an established practice of double crop- 9 ping), the owner may elect the covered com- 10 modity to be used for that crop year in deter- 11 mining the 5-year average, but may not include 12 both the initial covered commodity and the sub- 13 sequent covered commodity. 14 ‘‘(E) LIMITATION.—The allocation of addi- 15 tional base acres among covered commodities on 16 a farm under this paragraph may not result in 17 a total number of base acres for the farm in ex- 18 cess of the total number of acres on the farm. 19 ‘‘(7) REDUCTION BY THE SECRETARY.—In car- 20 rying out this subsection, if the total number of eli- 21 gible acres allocated to base acres across all farms 22 in the United States under this subsection would ex- 23 ceed 30,000,000 acres, the Secretary shall apply an 24 across-the-board, pro-rata reduction to the number 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 37 •HR 1 RH of eligible acres to ensure the number of allocated 1 base acres under this subsection is equal to 2 30,000,000 acres. 3 ‘‘(8) PAYMENT YIELD.—Beginning with crop 4 year 2026, for the purpose of making price loss cov- 5 erage payments under section 1116, the Secretary 6 shall establish payment yields to base acres allocated 7 under this subsection equal to— 8 ‘‘(A) the payment yield established on the 9 farm for the applicable covered commodity; and 10 ‘‘(B) if no such payment yield for the ap- 11 plicable covered commodity exists, a payment 12 yield— 13 ‘‘(i) equal to the average payment 14 yield for the covered commodity for the 15 county in which the farm is situated; or 16 ‘‘(ii) determined pursuant to section 17 1113(c). 18 ‘‘(9) TREATMENT OF NEW OWNERS.—In the 19 case of a farm for which the owner on the date of 20 enactment of this subsection was not the owner for 21 the 2019 through 2023 crop years, the Secretary 22 shall use the planting history of the prior owner or 23 owners of that farm for purposes of determining— 24 ‘‘(A) eligibility under paragraph (4); 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 38 •HR 1 RH ‘‘(B) eligible acres under paragraph (5); 1 and 2 ‘‘(C) the allocation of acres under para- 3 graph (6).’’. 4 (c) PRODUCER ELECTION.—Section 1115 of the Ag- 5 ricultural Act of 2014 (7 U.S.C. 9015) is amended— 6 (1) in subsection (a), in the matter preceding 7 paragraph (1) by striking ‘‘2023’’ and inserting 8 ‘‘2031’’; and 9 (2) in subsection (c)— 10 (A) in the matter preceding paragraph (1), 11 by striking ‘‘2014 crop year or the 2019 crop 12 year, as applicable’’ and inserting ‘‘2014 crop 13 year, 2019 crop year, or 2026 crop year, as ap- 14 plicable’’; 15 (B) in paragraph (1), by striking ‘‘2014 16 crop year or the 2019 crop year, as applicable,’’ 17 and inserting ‘‘2014 crop year, 2019 crop year, 18 or 2026 crop year, as applicable,’’; and 19 (C) in paragraph (2)— 20 (i) in subparagraph (A), by striking 21 ‘‘and’’ at the end; 22 (ii) in subparagraph (B), by striking 23 the period at the end and inserting ‘‘; 24 and’’; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 39 •HR 1 RH (iii) by adding at the end the fol- 1 lowing: 2 ‘‘(C) the same coverage for each covered 3 commodity on the farm for the 2026 through 4 2031 crop years as was applicable for the 2024 5 crop year.’’. 6 (d) PRICE LOSS COVERAGE.—Section 1116 of the 7 Agricultural Act of 2014 (7 U.S.C. 9016) is amended— 8 (1) in subsection (a)(2), in the matter pre- 9 ceding subparagraph (A), by striking ‘‘2023’’ and 10 inserting ‘‘2031’’; 11 (2) in subsection (c)(1)(B)— 12 (A) in the subparagraph heading, by strik- 13 ing ‘‘2023’’ and inserting ‘‘2031’’; and 14 (B) in the matter preceding clause (i), by 15 striking ‘‘2023’’ and inserting ‘‘2031’’; 16 (3) in subsection (d), by striking ‘‘2025’’ and 17 inserting ‘‘2031’’; and 18 (4) in subsection (g), by striking ‘‘2012 through 19 2016’’ each place it appears and inserting ‘‘2017 20 through 2021’’. 21 (e) AGRICULTURE RISK COVERAGE.—Section 1117 22 of the Agricultural Act of 2014 (7 U.S.C. 9017) is amend- 23 ed— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 40 •HR 1 RH (1) in subsection (a), in the matter preceding 1 paragraph (1), by striking ‘‘2023’’ and inserting 2 ‘‘2031’’; 3 (2) in subsection (c)— 4 (A) in paragraph (1), by inserting ‘‘for 5 each of the 2014 through 2024 crop years and 6 90 percent of the benchmark revenue for each 7 of the 2025 through 2031 crop years’’ before 8 the period at the end; 9 (B) by striking ‘‘2023’’ each place it ap- 10 pears and inserting ‘‘2031’’; and 11 (C) in paragraph (4)(B), in the subpara- 12 graph heading, by striking ‘‘2023’’ and inserting 13 ‘‘2031’’; 14 (3) by amending subsection (d)(1)(B) to read 15 as follows: 16 ‘‘(B)(i) for each of the crop years 2014 17 through 2024, 10 percent of the benchmark 18 revenue for the crop year applicable under sub- 19 section (c); and 20 ‘‘(ii) for each of the crop years 2025 21 through 2031, 12.5 percent of the benchmark 22 revenue for the crop year applicable under sub- 23 section (c).’’; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 41 •HR 1 RH (4) in subsections (e), (g)(5), and (i)(5), by 1 striking ‘‘2023’’ each place it appears and inserting 2 ‘‘2031’’. 3 (f) EQUITABLE TREATMENT OF CERTAIN ENTI- 4 TIES.— 5 (1) IN GENERAL.—Section 1001 of the Food 6 Security Act of 1985 (7 U.S.C. 1308) is amended— 7 (A) in subsection (a)— 8 (i) by redesignating paragraph (5) as 9 paragraph (6); and 10 (ii) by inserting after paragraph (4) 11 the following: 12 ‘‘(5) QUALIFIED PASS-THROUGH ENTITY.—The 13 term ‘qualified pass-through entity’ means— 14 ‘‘(A) a partnership (within the meaning of 15 subchapter K of chapter 1 of the Internal Rev- 16 enue Code of 1986); 17 ‘‘(B) an S corporation (as defined in sec- 18 tion 1361 of that Code); 19 ‘‘(C) a limited liability company that does 20 not affirmatively elect to be treated as a cor- 21 poration; and 22 ‘‘(D) a joint venture or general partner- 23 ship.’’; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 42 •HR 1 RH (B) in subsections (b) and (c), by striking 1 ‘‘except a joint venture or general partnership’’ 2 each place it appears and inserting ‘‘except a 3 qualified pass-through entity’’; and 4 (C) in subsection (d), by striking ‘‘subtitle 5 B’’ and all that follows through the end and in- 6 serting ‘‘title I of the Agricultural Act of 7 2014.’’. 8 (2) ATTRIBUTION OF PAYMENTS.—Section 9 1001(e)(3)(B)(ii) of the Food Security Act of 1985 10 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended— 11 (A) in the clause heading, by striking 12 ‘‘JOINT VENTURES AND GENERAL PARTNER- 13 SHIPS’’ and inserting ‘‘QUALIFIED PASS- 14 THROUGH ENTITIES’’; 15 (B) by striking ‘‘a joint venture or a gen- 16 eral partnership’’ and inserting ‘‘a qualified 17 pass-through entity’’; 18 (C) by striking ‘‘joint ventures and general 19 partnerships’’ and inserting ‘‘qualified pass- 20 through entities’’; and 21 (D) by striking ‘‘the joint venture or gen- 22 eral partnership’’ and inserting ‘‘the qualified 23 pass-through entity’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 43 •HR 1 RH (3) PERSONS ACTIVELY ENGAGED IN FARM- 1 ING.—Section 1001A(b)(2) of the Food Security Act 2 of 1985 (7 U.S.C. 1308–1(b)(2)) is amended— 3 (A) subparagraphs (A) and (B), by strik- 4 ing ‘‘in a general partnership, a participant in 5 a joint venture’’ each place it appears and in- 6 serting ‘‘a qualified pass-through entity’’; and 7 (B) in subparagraph (C), by striking ‘‘a 8 general partnership, joint venture, or similar 9 entity’’ and inserting ‘‘a qualified pass-through 10 entity or a similar entity’’. 11 (4) JOINT AND SEVERAL LIABILITY.—Section 12 1001B(d) of the Food Security Act of 1985 (7 13 U.S.C. 1308–2(d)) is amended by striking ‘‘partner- 14 ships and joint ventures’’ and inserting ‘‘qualified 15 pass-through entities’’. 16 (5) EXCLUSION FROM AGI CALCULATION.—Sec- 17 tion 1001D(d) of the Food Security Act of 1985 (7 18 U.S.C. 1308–3a(d)) is amended by striking ‘‘, gen- 19 eral partnership, or joint venture’’ each place it ap- 20 pears. 21 (g) PAYMENT LIMITATIONS.—Section 1001 of the 22 Food Security Act of 1985 (7 U.S.C. 1308) is amended— 23 (1) in subsection (b)— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 44 •HR 1 RH (A) by striking ‘‘The’’ and inserting ‘‘Sub- 1 ject to subsection (i), the’’; and 2 (B) by striking ‘‘$125,000’’ and inserting 3 ‘‘$155,000’’; 4 (2) in subsection (c)— 5 (A) by striking ‘‘The’’ and inserting ‘‘Sub- 6 ject to subsection (i), the’’; and 7 (B) by striking ‘‘$125,000’’ and inserting 8 ‘‘$155,000’’; and 9 (3) by adding at the end the following: 10 ‘‘(i) ADJUSTMENT.—For the 2025 crop year and 11 each crop year thereafter, the Secretary shall annually ad- 12 just the amounts described in subsections (b) and (c) for 13 inflation based on the Consumer Price Index for All Urban 14 Consumers published by the Bureau of Labor Statistics 15 of the Department of Labor.’’. 16 (h) ADJUSTED GROSS INCOME LIMITATION.—Sec- 17 tion 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 18 1308–3a(b)) is amended— 19 (1) in paragraph (1), by striking ‘‘paragraph 20 (3)’’ and inserting ‘‘paragraphs (3) and (4)’’; and 21 (2) by adding at the end the following: 22 ‘‘(4) EXCEPTION FOR CERTAIN OPERATIONS.— 23 ‘‘(A) DEFINITIONS.—In this paragraph: 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 45 •HR 1 RH ‘‘(i) EXCEPTED PAYMENT OR BEN- 1 EFIT.—The term ‘excepted payment or 2 benefit’ means— 3 ‘‘(I) a payment or benefit under 4 subtitle E of title I of the Agricultural 5 Act of 2014 (7 U.S.C. 9081 et seq.); 6 ‘‘(II) a payment or benefit under 7 section 196 of the Federal Agriculture 8 Improvement and Reform Act of 1996 9 (7 U.S.C. 7333); and 10 ‘‘(III) a payment or benefit de- 11 scribed in paragraph (2)(C) received 12 on or after October 1, 2024. 13 ‘‘(ii) FARMING, RANCHING, OR 14 SILVICULTURE ACTIVITIES.—The term 15 ‘farming, ranching, or silviculture activi- 16 ties’ includes agritourism, direct-to-con- 17 sumer marketing of agricultural products, 18 the sale of agricultural equipment by a 19 person or legal entity that owns such 20 equipment, and other agriculture-related 21 activities, as determined by the Secretary. 22 ‘‘(B) EXCEPTION.—In the case of an ex- 23 cepted payment or benefit, the limitation estab- 24 lished by paragraph (1) shall not apply to a 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 46 •HR 1 RH person or legal entity during a crop, fiscal, or 1 program year, as appropriate, if greater than or 2 equal to 75 percent of the average gross income 3 of the person or legal entity derives from farm- 4 ing, ranching, or silviculture activities.’’. 5 (i) MARKETING LOANS.— 6 (1) AVAILABILITY OF NONRECOURSE MAR- 7 KETING ASSISTANCE LOANS FOR LOAN COMMOD- 8 ITIES.—Section 1201(b)(1) of the Agricultural Act 9 of 2014 (7 U.S.C. 9031(b)(1)) is amended by strik- 10 ing ‘‘2023’’ and inserting ‘‘2031’’. 11 (2) LOAN RATES FOR NONRECOURSE MAR- 12 KETING ASSISTANCE LOANS.—Section 1202 of the 13 Agricultural Act of 2014 (7 U.S.C. 9032) is amend- 14 ed— 15 (A) in subsection (b)— 16 (i) in the subsection heading, by strik- 17 ing ‘‘2023’’ and inserting ‘‘2025’’; and 18 (ii) in the matter preceding paragraph 19 (1), by striking ‘‘2023’’ and inserting 20 ‘‘2025’’; 21 (B) by redesignating subsection (c) and (d) 22 as subsections (d) and (e), respectively; 23 (C) by inserting after subsection (b) the 24 following: 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 47 •HR 1 RH ‘‘(c) 2026 THROUGH 2031 CROP YEARS.—For pur- 1 poses of each of the 2026 through 2031 crop years, the 2 loan rate for a marketing assistance loan under section 3 1201 for a loan commodity shall be equal to the following: 4 ‘‘(1) In the case of wheat, $3.72 per bushel. 5 ‘‘(2) In the case of corn, $2.42 per bushel. 6 ‘‘(3) In the case of grain sorghum, $2.42 per 7 bushel. 8 ‘‘(4) In the case of barley, $2.75 per bushel. 9 ‘‘(5) In the case of oats, $2.20 per bushel. 10 ‘‘(6) In the case of upland cotton, $0.55 per 11 pound. 12 ‘‘(7) In the case of extra long staple cotton, 13 $1.00 per pound. 14 ‘‘(8) In the case of long grain rice, $7.70 per 15 hundredweight. 16 ‘‘(9) In the case of medium grain rice, $7.70 17 per hundredweight. 18 ‘‘(10) In the case of soybeans, $6.82 per bushel. 19 ‘‘(11) In the case of other oilseeds, $11.10 per 20 hundredweight for each of the following kinds of oil- 21 seeds: 22 ‘‘(A) Sunflower seed. 23 ‘‘(B) Rapeseed. 24 ‘‘(C) Canola. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 48 •HR 1 RH ‘‘(D) Safflower. 1 ‘‘(E) Flaxseed. 2 ‘‘(F) Mustard seed. 3 ‘‘(G) Crambe. 4 ‘‘(H) Sesame seed. 5 ‘‘(I) Other oilseeds designated by the Sec- 6 retary. 7 ‘‘(12) In the case of dry peas, $6.87 per hun- 8 dredweight. 9 ‘‘(13) In the case of lentils, $14.30 per hun- 10 dredweight. 11 ‘‘(14) In the case of small chickpeas, $11.00 12 per hundredweight. 13 ‘‘(15) In the case of large chickpeas, $15.40 per 14 hundredweight. 15 ‘‘(16) In the case of graded wool, $1.60 per 16 pound. 17 ‘‘(17) In the case of nongraded wool, $0.55 per 18 pound. 19 ‘‘(18) In the case of mohair, $5.00 per pound. 20 ‘‘(19) In the case of honey, $1.50 per pound. 21 ‘‘(20) In the case of peanuts, $390 per ton.’’; 22 (D) in subsection (d) (as so redesignated), 23 by striking ‘‘(a)(11) and (b)(11)’’ and inserting 24 ‘‘(a)(11), (b)(11), and (c)(11)’’; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 49 •HR 1 RH (E) by amending subsection (e) (as so re- 1 designated) to read as follows: 2 ‘‘(e) SPECIAL RULE FOR SEED COTTON AND 3 CORN.— 4 ‘‘(1) IN GENERAL.—For purposes of section 5 1116(b)(2) and paragraphs (1)(B)(ii) and 6 (2)(A)(ii)(II) of section 1117(b), the loan rate shall 7 be deemed to equal— 8 ‘‘(A) for seed cotton, $0.30 per pound; and 9 ‘‘(B) for corn, $3.30 per bushel. 10 ‘‘(2) EFFECT.—Nothing in this subsection au- 11 thorizes any nonrecourse marketing assistance loan 12 under this subtitle for seed cotton.’’. 13 (3) PAYMENT OF COTTON STORAGE COSTS.— 14 Section 1204(g) of the Agricultural Act of 2014 (7 15 U.S.C. 9034(g)) is amended— 16 (A) by striking ‘‘Effective’’ and inserting 17 the following: 18 ‘‘(1) CROP YEARS 2014 THROUGH 2025.—Effec- 19 tive’’; 20 (B) in paragraph (1) (as so designated), by 21 striking ‘‘2023’’ and inserting ‘‘2025’’; and 22 (C) by adding at the end the following: 23 ‘‘(2) PAYMENT OF COTTON STORAGE COSTS.— 24 Effective for each of the 2026 through 2031 crop 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 50 •HR 1 RH years, the Secretary shall make cotton storage pay- 1 ments for upland cotton and extra long staple cotton 2 available in the same manner as the Secretary pro- 3 vided storage payments for the 2006 crop of upland 4 cotton, except that the payment rate shall be equal 5 to the lesser of— 6 ‘‘(A) the submitted tariff rate for the cur- 7 rent marketing year; and 8 ‘‘(B) in the case of storage in— 9 ‘‘(i) California or Arizona, a payment 10 rate of $4.90; and 11 ‘‘(ii) any other State, a payment rate 12 of $3.00.’’. 13 (4) LOAN DEFICIENCY PAYMENTS.— 14 (A) CONTINUATION.—Section 15 1205(a)(2)(B) of the Agricultural Act of 2014 16 (7 U.S.C. 9035(a)(2)(B)) is amended by strik- 17 ing ‘‘2023’’ and inserting ‘‘2031’’. 18 (B) PAYMENTS IN LIEU OF LDPS.—Section 19 1206 of the Agricultural Act of 2014 (7 U.S.C. 20 9036) is amended, in subsections (a) and (d), 21 by striking ‘‘2023’’ each place it appears and 22 inserting ‘‘2031’’. 23 (5) SPECIAL COMPETITIVE PROVISIONS FOR 24 EXTRA LONG STAPLE COTTON.—Section 1208(a) of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 51 •HR 1 RH the Agricultural Act of 2014 (7 U.S.C. 9038(a)) is 1 amended, in the matter preceding paragraph (1), by 2 striking ‘‘2026’’ and inserting ‘‘2032’’. 3 (6) AVAILABILITY OF RECOURSE LOANS.—Sec- 4 tion 1209 of the Agricultural Act of 2014 (7 U.S.C. 5 9039) is amended, in subsections (a)(2), (b), and 6 (c), by striking ‘‘2023’’ each place it appears and in- 7 serting ‘‘2031’’. 8 (j) REPAYMENT OF MARKETING LOANS.—Section 9 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is 10 amended— 11 (1) in subsection (b)— 12 (A) by redesignating paragraph (1) as sub- 13 paragraph (A) and indenting appropriately; 14 (B) in the matter preceding subparagraph 15 (A) (as so redesignated), by striking ‘‘The Sec- 16 retary’’ and inserting the following: 17 ‘‘(1) IN GENERAL.—The Secretary’’; and 18 (C) by striking paragraph (2) and insert- 19 ing the following: 20 ‘‘(B)(i) in the case of long grain rice and 21 medium grain rice, the prevailing world market 22 price for the commodity, as determined and ad- 23 justed by the Secretary in accordance with this 24 section; or 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 52 •HR 1 RH ‘‘(ii) in the case of upland cotton, the low- 1 est prevailing world market price for the com- 2 modity, as determined and adjusted by the Sec- 3 retary in accordance with this section, during 4 the 30-day period following the day on which 5 the producer repays the marketing assistance 6 loan. 7 ‘‘(2) REFUND FOR UPLAND COTTON.—In the 8 case of a repayment for a marketing assistance loan 9 for upland cotton at a rate described in paragraph 10 (1)(B)(ii), the Secretary shall provide to the pro- 11 ducer a refund (if any) in an amount equal to the 12 difference between the lowest prevailing world mar- 13 ket price described in that paragraph and the repay- 14 ment amount.’’; 15 (2) in subsection (c)— 16 (A) by striking the period at the end and 17 inserting ‘‘; and’’; 18 (B) by striking ‘‘at the loan rate’’ and in- 19 serting the following: ‘‘at a rate that is the less- 20 er of— 21 ‘‘(1) the loan rate’’; and 22 (C) by adding at the end the following: 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 53 •HR 1 RH ‘‘(2) the prevailing world market price for the 1 commodity, as determined and adjusted by the Sec- 2 retary in accordance with this section.’’; 3 (3) in subsection (d)— 4 (A) in paragraph (1), by striking ‘‘and me- 5 dium grain rice’’ and inserting ‘‘medium grain 6 rice, and extra long staple cotton’’; 7 (B) by redesignating paragraphs (1) and 8 (2) as subparagraphs (A) and (B), respectively, 9 and indenting appropriately; 10 (C) in the matter preceding subparagraph 11 (A) (as so redesignated), by striking ‘‘For pur- 12 poses’’ and inserting the following: 13 ‘‘(1) IN GENERAL.—For purposes’’; and 14 (D) by adding at the end the following: 15 ‘‘(2) UPLAND COTTON.—In the case of upland 16 cotton, for any period when price quotations for 17 Middling (M) 13⁄32-inch cotton are available, the for- 18 mula under paragraph (1)(A) shall be based on the 19 average of the 3 lowest-priced growths that are 20 quoted.’’; and 21 (4) in subsection (e)— 22 (A) in the subsection heading, by inserting 23 ‘‘EXTRA LONG STAPLE COTTON,’’ after ‘‘UP- 24 LAND COTTON,’’; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 54 •HR 1 RH (B) in paragraph (2)— 1 (i) in the paragraph heading, by in- 2 serting ‘‘UPLAND’’ before ‘‘COTTON’’; and 3 (ii) in subparagraph (B), in the mat- 4 ter preceding clause (i), by striking 5 ‘‘2024’’ and inserting ‘‘2032’’; 6 (C) by redesignating paragraph (3) as 7 paragraph (4); and 8 (D) by inserting after paragraph (2) the 9 following: 10 ‘‘(3) EXTRA LONG STAPLE COTTON.—The pre- 11 vailing world market price for extra long staple cot- 12 ton determined under subsection (d)— 13 ‘‘(A) shall be adjusted to United States 14 quality and location, with the adjustment to in- 15 clude the average costs to market the com- 16 modity, including average transportation costs, 17 as determined by the Secretary; and 18 ‘‘(B) may be further adjusted, during the 19 period beginning on the date of enactment of 20 this paragraph and ending on July 31, 2032, if 21 the Secretary determines the adjustment is nec- 22 essary— 23 ‘‘(i) to minimize potential loan forfeit- 24 ures; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 55 •HR 1 RH ‘‘(ii) to minimize the accumulation of 1 stocks of extra long staple cotton by the 2 Federal Government; 3 ‘‘(iii) to ensure that extra long staple 4 cotton produced in the United States can 5 be marketed freely and competitively, both 6 domestically and internationally; and 7 ‘‘(iv) to ensure an appropriate transi- 8 tion between current-crop and forward- 9 crop price quotations, except that the Sec- 10 retary may use forward-crop price 11 quotations prior to July 31 of a marketing 12 year only if— 13 ‘‘(I) there are insufficient cur- 14 rent-crop price quotations; and 15 ‘‘(II) the forward-crop price 16 quotation is the lowest such quotation 17 available.’’. 18 (k) ECONOMIC ADJUSTMENT ASSISTANCE FOR TEX- 19 TILE MILLS.—Section 1207(c) of the Agricultural Act of 20 2014 (7 U.S.C. 9037(c)) is amended by striking para- 21 graph (2) and inserting the following: 22 ‘‘(2) VALUE OF ASSISTANCE.—The value of the 23 assistance provided under paragraph (1) shall be— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 56 •HR 1 RH ‘‘(A) for the period beginning on August 1, 1 2013, and ending on July 31, 2025, 3 cents per 2 pound; and 3 ‘‘(B) beginning on August 1, 2025, 5 cents 4 per pound.’’. 5 (l) SUGAR PROGRAM UPDATES.— 6 (1) LOAN RATE MODIFICATIONS.—Section 156 7 of the Federal Agriculture Improvement and Reform 8 Act of 1996 (7 U.S.C. 7272) is amended— 9 (A) in subsection (a)— 10 (i) in paragraph (4), by striking 11 ‘‘and’’ at the end; 12 (ii) in paragraph (5), by striking 13 ‘‘2023 crop years.’’ and inserting ‘‘2024 14 crop years; and’’; and 15 (iii) by adding at the end the fol- 16 lowing: 17 ‘‘(6) 24.00 cents per pound for raw cane sugar 18 for each of the 2025 through 2031 crop years.’’; 19 (B) in subsection (b)— 20 (i) in paragraph (1), by striking 21 ‘‘and’’ at the end; 22 (ii) in paragraph (2), by striking 23 ‘‘2023 crop years.’’ and inserting ‘‘2024 24 crop years; and’’; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 57 •HR 1 RH (iii) by adding at the end the fol- 1 lowing: 2 ‘‘(3) a rate that is equal to 136.55 percent of 3 the loan rate per pound of raw cane sugar under 4 subsection (a)(6) for each of the 2025 through 2031 5 crop years.’’; and 6 (C) in subsection (i), by striking ‘‘2023’’ 7 and inserting ‘‘2031’’. 8 (2) ADJUSTMENTS TO COMMODITY CREDIT COR- 9 PORATION STORAGE RATES.—Section 167 of the 10 Federal Agriculture Improvement and Reform Act of 11 1996 (7 U.S.C. 7287) is amended— 12 (A) by striking subsection (a) and insert- 13 ing the following: 14 ‘‘(a) IN GENERAL.—Notwithstanding any other pro- 15 vision of law, for the 2025 crop year and each subsequent 16 crop year, the Commodity Credit Corporation shall estab- 17 lish rates for the storage of forfeited sugar in an amount 18 that is not less than— 19 ‘‘(1) in the case of refined sugar, 34 cents per 20 hundredweight per month; and 21 ‘‘(2) in the case of raw cane sugar, 27 cents per 22 hundredweight per month.’’; and 23 (B) in subsection (b)— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 58 •HR 1 RH (i) in the subsection heading, by strik- 1 ing ‘‘SUBSEQUENT’’ and inserting 2 ‘‘PRIOR’’; and 3 (ii) by striking ‘‘and subsequent’’ and 4 inserting ‘‘through 2024’’. 5 (3) MODERNIZING BEET SUGAR ALLOT- 6 MENTS.— 7 (A) SUGAR ESTIMATES.—Section 8 359b(a)(1) of the Agricultural Adjustment Act 9 of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by 10 striking ‘‘2023’’ and inserting ‘‘2031’’. 11 (B) ALLOCATION TO PROCESSORS.—Sec- 12 tion 359c(g)(2) of the Agricultural Adjustment 13 Act of 1938 (7 U.S.C. 1359cc(g)(2)) is amend- 14 ed— 15 (i) by striking ‘‘In the case’’ and in- 16 serting the following: 17 ‘‘(A) IN GENERAL.—Except as provided in 18 subparagraph (B), in the case’’; and 19 (ii) by adding at the end the fol- 20 lowing: 21 ‘‘(B) EXCEPTION.—If the Secretary makes 22 an upward adjustment under paragraph (1)(A), 23 in adjusting allocations among beet sugar proc- 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 59 •HR 1 RH essors, the Secretary shall give priority to beet 1 sugar processors with available sugar.’’. 2 (C) TIMING OF REASSIGNMENT.—Section 3 359e(b)(2) of the Agricultural Adjustment Act 4 of 1938 (7 U.S.C. 1359ee(b)(2)) is amended— 5 (i) by redesignating subparagraphs 6 (A) through (C) as clauses (i) through 7 (iii), respectively, and indenting appro- 8 priately; 9 (ii) in the matter preceding clause (i) 10 (as so redesignated), by striking ‘‘If the 11 Secretary determines that a sugar beet 12 processor who has been allocated a share 13 of the beet sugar allotment will be unable 14 to market that allocation’’ and inserting 15 the following: 16 ‘‘(A) IN GENERAL.—If the Secretary deter- 17 mines that a sugar beet processor who has been 18 allocated a share of the beet sugar allotment for 19 the crop year will be unable to market that allo- 20 cation’’; and 21 (iii) by adding at the end the fol- 22 lowing: 23 ‘‘(B) TIMING.—In carrying out subpara- 24 graph (A), the Secretary shall— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 60 •HR 1 RH ‘‘(i) make an initial determination fol- 1 lowing the publication of the World Agri- 2 cultural Supply and Demand Estimates (in 3 this subparagraph referred to as 4 ‘WASDE’) approved by the World Agricul- 5 tural Outlook Board for the month of Jan- 6 uary that is applicable to the crop year for 7 which a determination under subparagraph 8 (A) is made; and 9 ‘‘(ii) provide for an initial reassign- 10 ment under subparagraph (A)(i) not later 11 than 30 days after the date of the an- 12 nouncement of such WASDE.’’. 13 (4) REALLOCATIONS OF TARIFF-RATE QUOTA 14 SHORTFALL.—Section 359k of the Agricultural Ad- 15 justment Act of 1938 (7 U.S.C. 1359kk) is amended 16 by adding at the end the following: 17 ‘‘(c) REALLOCATION.— 18 ‘‘(1) INITIAL REALLOCATION.—Subject to para- 19 graph (3), following the establishment of the tariff- 20 rate quotas under subsection (a) for a quota year, 21 the United States Trade Representative, in consulta- 22 tion with the Secretary, shall— 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 61 •HR 1 RH ‘‘(A) determine which countries do not in- 1 tend to fulfill their allocation for the quota 2 year; and 3 ‘‘(B) reallocate any forecasted shortfall in 4 the fulfillment of the tariff-rate quotas as soon 5 as practicable. 6 ‘‘(2) SUBSEQUENT REALLOCATION.—Subject to 7 paragraph (3), not later than March 1 of a quota 8 year, the United States Trade Representative, in 9 consultation with the Secretary, shall reallocate any 10 additional forecasted shortfall in the fulfillment of 11 the tariff-rate quotas for raw cane sugar established 12 under subsection (a)(1) for that quota year. 13 ‘‘(3) CESSATION OF EFFECTIVENESS.—Para- 14 graphs (1) and (2) shall cease to be in effect if— 15 ‘‘(A) the Agreement Suspending the Coun- 16 tervailing Duty Investigation on Sugar from 17 Mexico, signed December 19, 2014, is termi- 18 nated; and 19 ‘‘(B) no countervailing duty order under 20 subtitle A of title VII of the Tariff Act of 1930 21 (19 U.S.C. 1671 et seq.) is in effect with re- 22 spect to sugar from Mexico. 23 ‘‘(d) REFINED SUGAR.— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 62 •HR 1 RH ‘‘(1) DEFINITION OF DOMESTIC SUGAR INDUS- 1 TRY.—In this subsection, the term ‘domestic sugar 2 industry’ means domestic— 3 ‘‘(A) sugar beet producers and processors; 4 ‘‘(B) producers and processors of sugar 5 cane; and 6 ‘‘(C) refiners of raw cane sugar. 7 ‘‘(2) STUDY REQUIRED.— 8 ‘‘(A) IN GENERAL.—Not later than 180 9 days after the date of enactment of this sub- 10 section, the Secretary shall conduct a study on 11 whether the establishment of additional terms 12 and conditions with respect to refined sugar im- 13 ports is necessary and appropriate. 14 ‘‘(B) ELEMENTS.—In conducting the study 15 under subparagraph (A), the Secretary shall ex- 16 amine the following: 17 ‘‘(i) The need for— 18 ‘‘(I) defining ‘refined sugar’ as 19 having a minimum polarization of 20 99.8 degrees or higher; 21 ‘‘(II) establishing a standard for 22 color- or reflectance-based units for 23 refined sugar such as those utilized by 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 63 •HR 1 RH the International Commission of Uni- 1 form Methods of Sugar Analysis; 2 ‘‘(III) prescribing specifications 3 for packaging type for refined sugar; 4 ‘‘(IV) prescribing specifications 5 for transportation modes for refined 6 sugar; 7 ‘‘(V) requiring affidavits or other 8 evidence that sugar imported as re- 9 fined sugar will not undergo further 10 refining in the United States; 11 ‘‘(VI) prescribing appropriate 12 terms and conditions to avoid the cir- 13 cumvention of Federal laws relating to 14 any sugar imports; and 15 ‘‘(VII) establishing other defini- 16 tions, terms and conditions, or other 17 requirements. 18 ‘‘(ii) The potential impact of modifica- 19 tions described in each of subclauses (I) 20 through (VII) of clause (i) on the domestic 21 sugar industry. 22 ‘‘(iii) Whether, based on the needs de- 23 scribed in clause (i) and the impact de- 24 scribed in clause (ii), the establishment of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 64 •HR 1 RH additional terms and conditions is appro- 1 priate. 2 ‘‘(C) CONSULTATION.—In conducting the 3 study under subparagraph (A), the Secretary 4 shall consult with representatives of the domes- 5 tic sugar industry, users of refined sugar, and 6 relevant State and Federal agencies. 7 ‘‘(D) REPORT.—Not later than 1 year 8 after the date of enactment of this subsection, 9 the Secretary shall submit to the Committee on 10 Agriculture of the House of Representatives 11 and the Committee on Agriculture, Nutrition, 12 and Forestry of the Senate a report that de- 13 scribes the findings of the study conducted 14 under subparagraph (A). 15 ‘‘(3) ESTABLISHMENT OF ADDITIONAL TERMS 16 AND CONDITIONS PERMITTED.— 17 ‘‘(A) IN GENERAL.—Based on the findings 18 in the report submitted under paragraph 19 (2)(D), and after providing notice to the Com- 20 mittee on Agriculture of the House of Rep- 21 resentatives and the Committee on Agriculture, 22 Nutrition, and Forestry of the Senate, the Sec- 23 retary may issue regulations in accordance with 24 subparagraph (B) to establish additional terms 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 65 •HR 1 RH and conditions with respect to refined sugar im- 1 ports that are necessary and appropriate. 2 ‘‘(B) PROMULGATION OF REGULATIONS.— 3 The Secretary may issue regulations under sub- 4 paragraph (A) if the regulations— 5 ‘‘(i) do not have an adverse impact on 6 the domestic sugar industry; and 7 ‘‘(ii) are consistent with the require- 8 ments of this part, section 156 of the Fed- 9 eral Agriculture Improvement and Reform 10 Act of 1996 (7 U.S.C. 7272), and obliga- 11 tions under international trade agreements 12 that have been approved by Congress.’’. 13 (5) CLARIFICATION OF TARIFF-RATE QUOTA 14 ADJUSTMENTS.—Section 359k(b)(1) of the Agricul- 15 tural Adjustment Act of 1938 (7 U.S.C. 16 1359kk(b)(1)) is amended, in the matter preceding 17 subparagraph (A)— 18 (A) by striking ‘‘Before’’ and inserting 19 ‘‘Notwithstanding any other provision of law, 20 before’’; and 21 (B) by striking ‘‘if there is an’’ and insert- 22 ing ‘‘for the sole purpose of responding directly 23 to an’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 66 •HR 1 RH (6) PERIOD OF EFFECTIVENESS.—Section 1 359l(a) of the Agricultural Adjustment Act of 1938 2 (7 U.S.C. 1359ll(a)) is amended by striking ‘‘2023’’ 3 and inserting ‘‘2031’’. 4 (m) DAIRY POLICY UPDATES.— 5 (1) DAIRY MARGIN COVERAGE PRODUCTION 6 HISTORY.— 7 (A) DEFINITION.—Section 1401(8) of the 8 Agricultural Act of 2014 (7 U.S.C. 9051(8)) is 9 amended by striking ‘‘when the participating 10 dairy operation first registers to participate in 11 dairy margin coverage’’. 12 (B) PRODUCTION HISTORY OF PARTICI- 13 PATING DAIRY OPERATIONS.—Section 1405 of 14 the Agricultural Act of 2014 (7 U.S.C. 9055) 15 is amended— 16 (i) by amending subsection (a) to read 17 as follows: 18 ‘‘(a) PRODUCTION HISTORY.—Except as provided in 19 subsection (b), the production history of a dairy operation 20 for dairy margin coverage is equal to the highest annual 21 milk marketings of the participating dairy operation dur- 22 ing any one of the 2021, 2022, or 2023 calendar years.’’; 23 and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 67 •HR 1 RH (ii) by amending subsection (b) to 1 read as follows: 2 ‘‘(b) ELECTION BY NEW DAIRY OPERATIONS.—In 3 the case of a participating dairy operation that has been 4 in operation for less than a year, the participating dairy 5 operation shall elect 1 of the following methods for the 6 Secretary to determine the production history of the par- 7 ticipating dairy operation: 8 ‘‘(1) The volume of the actual milk marketings 9 for the months the participating dairy operation has 10 been in operation extrapolated to a yearly amount. 11 ‘‘(2) An estimate of the actual milk marketings 12 of the participating dairy operation based on the 13 herd size of the participating dairy operation relative 14 to the national rolling herd average data published 15 by the Secretary.’’. 16 (2) DAIRY MARGIN COVERAGE PAYMENTS.— 17 Section 1406(a)(1)(C) of the Agricultural Act of 18 2014 (7 U.S.C. 9056(a)(1)(C)) is amended by strik- 19 ing ‘‘5,000,000’’ and inserting ‘‘6,000,000’’ each 20 place it appears. 21 (3) PREMIUMS FOR DAIRY MARGINS.— 22 (A) TIER I.—Section 1407(b) of the Agri- 23 cultural Act of 2014 (7 U.S.C. 9057(b)) is 24 amended— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 68 •HR 1 RH (i) in the heading, by striking 1 ‘‘5,000,000’’ and inserting ‘‘6,000,000’’; 2 and 3 (ii) in paragraph (1), by striking 4 ‘‘5,000,000’’ and inserting ‘‘6,000,000’’. 5 (B) TIER II.—Section 1407(c) of the Agri- 6 cultural Act of 2014 (7 U.S.C. 9057(c)) is 7 amended— 8 (i) in the heading, by striking 9 ‘‘5,000,000’’ and inserting ‘‘6,000,000’’; 10 and 11 (ii) in paragraph (1), by striking 12 ‘‘5,000,000’’ and inserting ‘‘6,000,000’’. 13 (C) PREMIUM DISCOUNTS.—Section 14 1407(g) of the Agricultural Act of 2014 (7 15 U.S.C. 9057(g)) is amended— 16 (i) in paragraph (1)— 17 (I) by striking ‘‘2019 through 18 2023’’ and inserting ‘‘2026 through 19 2031’’; and 20 (II) by striking ‘‘January 2019’’ 21 and inserting ‘‘January 2026’’; and 22 (ii) in paragraph (2), by striking 23 ‘‘2023’’ each place it appears and inserting 24 ‘‘2031’’. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 69 •HR 1 RH (4) DURATION.—Section 1409 of the Agricul- 1 tural Act of 2014 (7 U.S.C. 9059) is amended by 2 striking ‘‘2025’’ and inserting ‘‘2031’’. 3 (n) SUSPENSION OF PERMANENT PRICE SUPPORT 4 AUTHORITY.—Section 1602 of the Agricultural Act of 5 2014 (7 U.S.C. 9092) is amended by striking ‘‘2023’’ each 6 place it appears and inserting ‘‘2031’’. 7 (o) IMPLEMENTATION.—Section 1614(c) of the Agri- 8 cultural Act of 2014 (7 U.S.C. 9097(c)) is amended by 9 adding at the end the following: 10 ‘‘(5) FISCAL YEAR 2025 RECONCILIATION.—The 11 Secretary shall make available to the Farm Service 12 Agency to carry out section 10101 of the Act titled 13 ‘An Act to provide for reconciliation pursuant to 14 title II of H. Con. Res. 14’, and the amendments 15 made by that section, $50,000,000, to remain avail- 16 able until expended, of which— 17 ‘‘(A) not less than $5,000,000 shall be 18 used to carry out paragraphs (3) and (4) of 19 subsection (b); 20 ‘‘(B) $3,000,000 shall be used for activi- 21 ties described in paragraph (3)(A) of this sub- 22 section; 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 70 •HR 1 RH ‘‘(C) $3,000,000 shall be used for activities 1 described in paragraph (3)(B) of this sub- 2 section; and 3 ‘‘(D) $10,000,000 shall be used to— 4 ‘‘(i) carry out mandatory surveys of 5 dairy production cost and product yield in- 6 formation to be reported by manufacturers 7 required to report under section 273 of the 8 Agricultural Marketing Act of 1946 (7 9 U.S.C. 1637b), for all products processed 10 in the same facility or facilities; and 11 ‘‘(ii) publish the results of such sur- 12 veys biennially.’’. 13 (p) LIVESTOCK SAFETY NET UPDATES.— 14 (1) IN GENERAL.—Section 1501(b) of the Agri- 15 cultural Act of 2014 (7 U.S.C. 9081(b)) is amend- 16 ed— 17 (A) by amending paragraph (2) to read as 18 follows: 19 ‘‘(2) PAYMENT RATES.— 20 ‘‘(A) LOSSES DUE TO PREDATION.—In- 21 demnity payments to an eligible producer on a 22 farm under paragraph (1)(A) shall be made at 23 a rate of 100 percent of the market value of the 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 71 •HR 1 RH affected livestock on the applicable date, as de- 1 termined by the Secretary. 2 ‘‘(B) LOSSES DUE TO ADVERSE WEATHER 3 OR DISEASE.—Indemnity payments to an eligi- 4 ble producer on a farm under subparagraph (B) 5 or (C) of paragraph (1) shall be made at a rate 6 of 75 percent of the market value of the af- 7 fected livestock on the applicable date, as deter- 8 mined by the Secretary. 9 ‘‘(C) DETERMINATION OF MARKET 10 VALUE.—In determining the market value de- 11 scribed in subparagraphs (A) and (B), the Sec- 12 retary may consider the ability of eligible pro- 13 ducers to document regional price premiums for 14 affected livestock that exceed the national aver- 15 age market price for those livestock. 16 ‘‘(D) APPLICABLE DATE DEFINED.—In 17 this paragraph, the term ‘applicable date’ 18 means, with respect to livestock, as applicable— 19 ‘‘(i) the day before the date of death 20 of the livestock; or 21 ‘‘(ii) the day before the date of the 22 event that caused the harm to the livestock 23 that resulted in a reduced sale price.’’; and 24 (B) by adding at the end the following: 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 72 •HR 1 RH ‘‘(5) ADDITIONAL PAYMENT FOR UNBORN LIVE- 1 STOCK.— 2 ‘‘(A) IN GENERAL.—In the case of unborn 3 livestock death losses incurred on or after Janu- 4 ary 1, 2024, the Secretary shall make an addi- 5 tional payment to eligible producers on farms 6 that have incurred such losses in excess of the 7 normal mortality due to a condition specified in 8 paragraph (1). 9 ‘‘(B) PAYMENT RATE.—Additional pay- 10 ments under subparagraph (A) shall be made at 11 a rate— 12 ‘‘(i) determined by the Secretary; and 13 ‘‘(ii) less than or equal to 85 percent 14 of the payment rate established with re- 15 spect to the lowest weight class of the live- 16 stock, as determined by the Secretary, act- 17 ing through the Administrator of the Farm 18 Service Agency. 19 ‘‘(C) PAYMENT AMOUNT.—The amount of 20 a payment to an eligible producer that has in- 21 curred unborn livestock death losses shall be 22 equal to the payment rate determined under 23 subparagraph (B) multiplied, in the case of live- 24 stock described in— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 73 •HR 1 RH ‘‘(i) subparagraph (A), (B), or (F) of 1 subsection (a)(4), by 1; 2 ‘‘(ii) subparagraph (D) of such sub- 3 section, by 2; 4 ‘‘(iii) subparagraph (E) of such sub- 5 section, by 12; and 6 ‘‘(iv) subparagraph (G) of such sub- 7 section, by the average number of birthed 8 animals (for one gestation cycle) for the 9 species of each such livestock, as deter- 10 mined by the Secretary. 11 ‘‘(D) UNBORN LIVESTOCK DEATH LOSSES 12 DEFINED.—In this paragraph, the term ‘unborn 13 livestock death losses’ means losses of any live- 14 stock described in subparagraph (A), (B), (D), 15 (E), (F), or (G) of subsection (a)(4) that was 16 gestating on the date of the death of the live- 17 stock.’’. 18 (2) LIVESTOCK FORAGE DISASTER PROGRAM.— 19 Section 1501(c)(3)(D)(ii)(I) of the Agricultural Act 20 of 2014 (7 U.S.C. 9081(c)(3)(D)(ii)(I)) is amend- 21 ed— 22 (A) by striking ‘‘1 monthly payment’’ and 23 inserting ‘‘2 monthly payments’’; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 74 •HR 1 RH (B) by striking ‘‘county for at least 8 con- 1 secutive’’ and inserting the following: ‘‘county 2 for not less than— 3 ‘‘(aa) 4 consecutive weeks 4 during the normal grazing period 5 for the county, as determined by 6 the Secretary, shall be eligible to 7 receive assistance under this 8 paragraph in an amount equal to 9 1 monthly payment using the 10 monthly payment rate deter- 11 mined under subparagraph (B); 12 or 13 ‘‘(bb) any of the 7 of the 14 previous 8 consecutive’’. 15 (3) EMERGENCY ASSISTANCE FOR LIVESTOCK, 16 HONEY BEES, AND FARM-RAISED FISH.—Section 17 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 18 9081(d)) is amended by adding at the end the fol- 19 lowing: 20 ‘‘(5) ASSISTANCE FOR LOSSES DUE TO BIRD 21 DEPREDATION.— 22 ‘‘(A) PAYMENTS.—Eligible producers on a 23 farm of farm-raised fish, including fish grown 24 as food for human consumption, shall be eligi- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 75 •HR 1 RH ble to receive payments under this subsection to 1 aid in the reduction of losses due to piscivorous 2 birds. 3 ‘‘(B) PAYMENT RATE.— 4 ‘‘(i) IN GENERAL.—The payment rate 5 for payments under subparagraph (B) 6 shall be determined by the Secretary, tak- 7 ing into account— 8 ‘‘(I) costs associated with the de- 9 terrence of piscivorous birds; 10 ‘‘(II) the value of lost fish and 11 revenue due to bird depredation; and 12 ‘‘(III) costs associated with dis- 13 ease loss from bird depredation. 14 ‘‘(ii) MINIMUM RATE.—The payment 15 rate for payments under subparagraph (B) 16 shall be not less than $600 per acre of 17 farm-raised fish. 18 ‘‘(C) PAYMENT AMOUNT.—The amount of 19 a payment under subparagraph (B) shall be the 20 product obtained by multiplying— 21 ‘‘(i) the applicable payment rate under 22 subparagraph (C); and 23 ‘‘(ii) 85 percent of the total number of 24 acres of farm-raised fish farms that the eli- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 76 •HR 1 RH gible producer has in production for the 1 calendar year.’’. 2 (4) TREE ASSISTANCE PROGRAM.—Section 3 1501(e) of the Agricultural Act of 2014 (7 U.S.C. 4 9081(e)) is amended— 5 (A) in paragraph (2)(B), by striking ‘‘15 6 percent (adjusted for normal mortality)’’ and 7 inserting ‘‘normal mortality’’; and 8 (B) in paragraph (3)— 9 (i) in subparagraph (A)(i), by striking 10 ‘‘15 percent mortality (adjusted for normal 11 mortality)’’ and inserting ‘‘normal mor- 12 tality’’; and 13 (ii) in subparagraph (B)— 14 (I) by striking ‘‘50’’ and insert- 15 ing ‘‘65’’; and 16 (II) by striking ‘‘15 percent dam- 17 age or mortality (adjusted for normal 18 tree damage and mortality)’’ and in- 19 serting ‘‘normal tree damage or mor- 20 tality’’. 21 (q) EMERGENCY ASSISTANCE FOR HONEYBEES.—In 22 determining honeybee colony losses eligible for assistance 23 under section 1501(d) of the Agricultural Act of 2014 (7 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 77 •HR 1 RH U.S.C. 9081(d)), the Secretary shall utilize a normal mor- 1 tality rate of 15 percent. 2 (r) BEGINNING AND VETERAN FARMER AND RANCH- 3 ER BENEFIT.— 4 (1) DEFINITIONS.— 5 (A) IN GENERAL.—Section 502(b) of the 6 Federal Crop Insurance Act (7 U.S.C. 1502(b)) 7 is amended— 8 (i) in paragraph (3), by striking ‘‘5’’ 9 and inserting ‘‘10’’; and 10 (ii) in paragraph (14)(B)— 11 (I) in clause (i), by adding ‘‘or’’ 12 at the end after the semicolon; 13 (II) in clause (ii), by striking ‘‘5 14 years; or’’ and inserting ‘‘10 years.’’; 15 and 16 (III) in clause (iii), by striking 17 ‘‘5-year’’ and inserting ‘‘10-year’’. 18 (B) CONFORMING AMENDMENT.—Section 19 522(c)(7) of the Federal Crop Insurance Act (7 20 U.S.C. 1522(c)(7)) is amended by striking sub- 21 paragraph (F). 22 (2) INCREASE IN ASSISTANCE.—Section 23 508(e)(8) of the Federal Crop Insurance Act (7 24 U.S.C. 1508(e)(8)) is amended— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 78 •HR 1 RH (A) by striking ‘‘Notwithstanding’’ and in- 1 serting the following: 2 ‘‘(A) IN GENERAL.—Notwithstanding’’; 3 (B) in subparagraph (A) (as so des- 4 ignated), by striking ‘‘is 10 percentage points 5 greater than’’ and inserting ‘‘is the number of 6 percentage points specified in subparagraph (B) 7 greater than’’; and 8 (C) by adding at the end the following: 9 ‘‘(B) PERCENTAGE POINTS ADJUST- 10 MENTS.—The percentage points referred to in 11 subparagraph (A) are the following: 12 ‘‘(i) For each of the first and second 13 reinsurance years that a beginning farmer 14 or rancher or veteran farmer or rancher 15 participates as a beginning farmer or 16 rancher or veteran farmer or rancher, re- 17 spectively, in the applicable policy or plan 18 of insurance, 15 percentage points. 19 ‘‘(ii) For the third reinsurance year 20 that a beginning farmer or rancher or vet- 21 eran farmer or rancher participates as a 22 beginning farmer or rancher or veteran 23 farmer or rancher, respectively, in the ap- 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00078 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 79 •HR 1 RH plicable policy or plan of insurance, 13 per- 1 centage points. 2 ‘‘(iii) For the fourth reinsurance year 3 that a beginning farmer or rancher or vet- 4 eran farmer or rancher participates as a 5 beginning farmer or rancher or veteran 6 farmer or rancher, respectively, in the ap- 7 plicable policy or plan of insurance, 11 per- 8 centage points. 9 ‘‘(iv) For each of the fifth through 10 tenth reinsurance years that a beginning 11 farmer or rancher or veteran farmer or 12 rancher participates as a beginning farmer 13 or rancher or veteran farmer or rancher, 14 respectively, in the applicable policy or 15 plan of insurance, 10 percentage points.’’. 16 (s) AREA-BASED CROP INSURANCE COVERAGE AND 17 AFFORDABILITY.— 18 (1) COVERAGE LEVEL.—Section 508(c)(4) of 19 the Federal Crop Insurance Act (7 U.S.C. 20 1508(c)(4)) is amended— 21 (A) by amending subparagraph (A)(ii) to 22 read as follows: 23 ‘‘(ii) may be purchased at any level 24 not to exceed— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 80 •HR 1 RH ‘‘(I) in the case of the individual 1 yield or revenue coverage, 85 percent; 2 ‘‘(II) in the case of individual 3 yield or revenue coverage aggregated 4 across multiple commodities, 90 per- 5 cent; and 6 ‘‘(III) in the case of area yield or 7 revenue coverage (as determined by 8 the Corporation), 95 percent.’’; and 9 (B) in subparagraph (C)— 10 (i) in clause (ii), by striking ‘‘14’’ and 11 inserting ‘‘10’’; and 12 (ii) in clause (iii)(I), by striking ‘‘86’’ 13 and inserting ‘‘90’’. 14 (2) PREMIUM COST SHARE.—Section 15 508(e)(2)(H)(i) of the Federal Crop Insurance Act 16 (7 U.S.C. 1508(e)(2)(H)(i)) is amended by striking 17 ‘‘65’’ and inserting ‘‘80’’. 18 (t) PREMIUM SUPPORT.—Section 508(e)(2) of the 19 Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is 20 amended— 21 (1) in subparagraph (C)(i), by striking ‘‘64’’ 22 and inserting ‘‘69’’; 23 (2) in subparagraph (D)(i), by striking ‘‘59’’ 24 and inserting ‘‘64’’; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 81 •HR 1 RH (3) in subparagraph (E)(i), by striking ‘‘55’’ 1 and inserting ‘‘60’’; 2 (4) in subparagraph (F)(i), by striking ‘‘48’’ 3 and inserting ‘‘51’’; and 4 (5) in subparagraph (G)(i), by striking ‘‘38’’ 5 and inserting ‘‘41’’. 6 (u) ADMINISTRATIVE AND OPERATING EXPENSE AD- 7 JUSTMENTS.—Section 508(k) of the Federal Crop Insur- 8 ance Act (7 U.S.C. 1508(k)) is amended by adding at the 9 end the following: 10 ‘‘(10) ADDITIONAL EXPENSES.— 11 ‘‘(A) IN GENERAL.—Beginning with the 12 2026 reinsurance year and for each reinsurance 13 year thereafter, in addition to the terms and 14 conditions of the Standard Reinsurance Agree- 15 ment, to cover additional expenses for loss ad- 16 justment procedures, the Corporation shall pay 17 an additional administrative and operating ex- 18 pense subsidy to approved insurance providers 19 for eligible contracts. 20 ‘‘(B) PAYMENT AMOUNT.—In the case of 21 an eligible contract, the payment to an ap- 22 proved insurance provider required under sub- 23 paragraph (A) shall be the amount equal to 6 24 percent of the net book premium. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00081 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 82 •HR 1 RH ‘‘(C) DEFINITIONS.—In this paragraph: 1 ‘‘(i) ELIGIBLE STATE.—The term ‘eli- 2 gible State’ means a State— 3 ‘‘(I) identified in State Group 2 4 or State Group 3 (as defined in the 5 Standard Reinsurance Agreement for 6 reinsurance year 2026); and 7 ‘‘(II) in which, with respect to an 8 insurance year, the loss ratio for eligi- 9 ble contracts is greater than 120 per- 10 cent of the total net book premium 11 written by all approved insurance pro- 12 viders. 13 ‘‘(ii) ELIGIBLE CONTRACTS.—The 14 term ‘eligible contract’— 15 ‘‘(I) means a crop insurance con- 16 tract entered into by an approved in- 17 surance provider in an eligible State; 18 and 19 ‘‘(II) does not include a contract 20 for— 21 ‘‘(aa) catastrophic risk pro- 22 tection under subsection (b); 23 ‘‘(bb) an area-based plan of 24 insurance or similar plan of in- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 83 •HR 1 RH surance, as determined by the 1 Corporation; or 2 ‘‘(cc) a policy under which 3 an approved insurance provider 4 does not incur loss adjustment 5 expenses, as determined by the 6 Corporation. 7 ‘‘(11) SPECIALTY CROPS.— 8 ‘‘(A) MINIMUM REIMBURSEMENT.—Begin- 9 ning with the 2026 reinsurance year and for 10 each reinsurance year thereafter, the rate of re- 11 imbursement to approved insurance providers 12 and agents for administrative and operating ex- 13 penses with respect to crop insurance contracts 14 covering agricultural commodities described in 15 section 101 of title I of the Specialty Crops 16 Competitiveness Act of 2004 (7 U.S.C. 1621 17 note) shall be equal to or greater than the per- 18 cent that is the greater of the following: 19 ‘‘(i) 17 percent of the premium used 20 to define loss ratio. 21 ‘‘(ii) The percent of the premium used 22 to define loss ratio that is otherwise appli- 23 cable for the reinsurance year under the 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 84 •HR 1 RH terms of the Standard Reinsurance Agree- 1 ment in effect for the reinsurance year. 2 ‘‘(B) OTHER CONTRACTS.—In carrying out 3 subparagraph (A), the Corporation shall not re- 4 duce, with respect to any reinsurance year, the 5 amount or the rate of reimbursement to ap- 6 proved insurance providers and agents under 7 the Standard Reinsurance Agreement described 8 in clause (ii) of such subparagraph for adminis- 9 trative and operating expenses with respect to 10 contracts covering agricultural commodities 11 that are not subject to such subparagraph. 12 ‘‘(C) ADMINISTRATION.—The requirements 13 of this paragraph and the adjustments made 14 pursuant to this paragraph shall not be consid- 15 ered a renegotiation under paragraph (8)(A). 16 ‘‘(12) A&O INFLATION ADJUSTMENT.— 17 ‘‘(A) IN GENERAL.—Subject to subpara- 18 graph (B), for the 2026 reinsurance year, and 19 each reinsurance year thereafter, the Corpora- 20 tion shall increase the total administrative and 21 operating expense reimbursements otherwise re- 22 quired under the Standard Reinsurance Agree- 23 ment in effect for the reinsurance year in order 24 to account for inflation, in a manner consistent 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00084 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 85 •HR 1 RH with the increases provided with respect to the 1 2011 through 2015 reinsurance years under the 2 enclosure included in Risk Management Agency 3 Bulletin numbered MGR–10–007 and dated 4 June 30, 2010. 5 ‘‘(B) SPECIAL RULE FOR 2026 REINSUR- 6 ANCE YEAR.—The increase under subparagraph 7 (A) for the 2026 reinsurance year shall not ex- 8 ceed the percentage change for the preceding 9 reinsurance year included in the Consumer 10 Price Index for All Urban Consumers published 11 by the Bureau of Labor Statistics of the De- 12 partment of Labor. 13 ‘‘(C) ADMINISTRATION.—An increase 14 under subparagraph (A)— 15 ‘‘(i) shall apply with respect to all 16 contracts covering agricultural commodities 17 that were subject to an increase during the 18 period of the 2011 through 2015 reinsur- 19 ance years under the enclosure referred to 20 in that subparagraph; and 21 ‘‘(ii) shall not be considered to be a 22 renegotiation of the Standard Reinsurance 23 Agreement for purposes of paragraph 24 (8)(A).’’. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00085 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 86 •HR 1 RH (v) PROGRAM COMPLIANCE AND INTEGRITY.—Sec- 1 tion 515(l)(2) of the Federal Crop Insurance Act (7 2 U.S.C. 1515(l)(2)) is amended by striking ‘‘than’’ and all 3 that follows through the period at the end and inserting 4 the following: ‘‘than— 5 ‘‘(A) $4,000,000 for each of fiscal years 6 2009 through 2025; and 7 ‘‘(B) $6,000,000 for fiscal year 2026 and 8 each subsequent fiscal year.’’. 9 (w) REVIEWS, COMPLIANCE, AND INTEGRITY.—Sec- 10 tion 516(b)(2)(C)(i) of the Federal Crop Insurance Act 11 (7 U.S.C. 1516(b)(2)(C)(i)) is amended by striking ‘‘each 12 fiscal year’’ and inserting ‘‘each of fiscal years 2014 13 through 2025 and $10,000,000 for fiscal year 2026 and 14 each fiscal year thereafter’’. 15 (x) POULTRY INSURANCE PILOT PROGRAM.—Section 16 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) 17 is amended by adding at the end the following: 18 ‘‘(j) POULTRY INSURANCE PILOT PROGRAM.— 19 ‘‘(1) IN GENERAL.—Notwithstanding subsection 20 (a)(2), the Corporation shall establish a pilot pro- 21 gram under which contract poultry growers, includ- 22 ing growers of broilers and laying hens, may elect to 23 receive index-based insurance from extreme weather- 24 related risk resulting in increased utility costs (in- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 87 •HR 1 RH cluding costs of natural gas, propane, electricity, 1 water, and other appropriate costs, as determined by 2 the Corporation) associated with poultry production. 3 ‘‘(2) STAKEHOLDER ENGAGEMENT.—The Cor- 4 poration shall engage with poultry industry stake- 5 holders in establishing the pilot program under para- 6 graph (1). 7 ‘‘(3) LOCATION.—The pilot program established 8 under paragraph (1) shall be conducted in a suffi- 9 cient number of counties to provide a comprehensive 10 evaluation of the feasibility, effectiveness, and de- 11 mand among producers in the top poultry producing 12 States, including Alabama, Arkansas, and Mis- 13 sissippi, as determined by the Corporation. 14 ‘‘(4) APPROVAL OF POLICY OR PLAN.—Notwith- 15 standing section 508(l), the Board shall approve a 16 policy or plan of insurance based on the pilot pro- 17 gram under paragraph (1)— 18 ‘‘(A) in accordance with section 508(h); 19 and 20 ‘‘(B) not later than 24 months after the 21 date of enactment of this subsection.’’. 22 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00087 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 88 •HR 1 RH SEC. 10102. CONSERVATION. 1 (a) GRASSROOTS SOURCE WATER PROTECTION PRO- 2 GRAM.—Section 1240O(b) of the Food Security Act of 3 1985 (16 U.S.C. 3839bb–2(b)) is amended— 4 (1) in paragraph (1), by striking ‘‘2023’’ and 5 inserting ‘‘2031’’; and 6 (2) in paragraph (3)— 7 (A) in subparagraph (A), by striking the 8 ‘‘and’’ at the end; 9 (B) in subparagraph (B), by striking the 10 period at the end and inserting ‘‘; and’’; and 11 (C) by adding at the end the following: 12 ‘‘(C) $1,000,000 beginning in fiscal year 13 2026, to remain available until expended.’’. 14 (b) VOLUNTARY PUBLIC ACCESS AND HABITAT IN- 15 CENTIVE PROGRAM.—Section 1240R(f)(1) of the Food 16 Security Act of 1985 (16 U.S.C. 3839bb–5(f)(1)) is 17 amended— 18 (1) by striking the ‘‘and’’ after ‘‘2023,’’; and 19 (2) by inserting ‘‘, and $10,000,000 for each of 20 fiscal years 2025 through 2031’’ before the period at 21 the end. 22 (c) FERAL SWINE ERADICATION AND CONTROL 23 PILOT PROGRAM.—Section 2408(g)(1) of the Agriculture 24 Improvement Act of 2018 (7 U.S.C. 8351 note; Public 25 Law 115–334) is amended— 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00088 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 89 •HR 1 RH (1) by striking ‘‘and’’ and inserting a comma; 1 and 2 (2) by inserting ‘‘, and $15,000,000 for each of 3 fiscal years 2025 through 2031’’ before the period at 4 the end. 5 (d) FUNDING.— 6 (1) IN GENERAL.—Section 1241(a) of the Food 7 Security Act of 1985 (16 U.S.C. 3841(a)) is amend- 8 ed— 9 (A) in paragraph (2), by striking subpara- 10 graphs (A) through (F) and inserting the fol- 11 lowing: 12 ‘‘(A) $625,000,000 for fiscal year 2026; 13 ‘‘(B) $650,000,000 for fiscal year 2027; 14 ‘‘(C) $675,000,000 for fiscal year 2028; 15 ‘‘(D) $700,000,000 for fiscal year 2029; 16 ‘‘(E) $700,000,000 for fiscal year 2030; 17 and 18 ‘‘(F) $700,000,000 for fiscal year 2031.’’; 19 and 20 (B) in paragraph (3)— 21 (i) in subparagraph (A), by striking 22 clauses (i) through (v) and inserting the 23 following: 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 90 •HR 1 RH ‘‘(i) $2,655,000,000 for fiscal year 1 2026; 2 ‘‘(ii) $2,855,000,000 for fiscal year 3 2027; 4 ‘‘(iii) $3,255,000,000 for fiscal year 5 2028; 6 ‘‘(iv) $3,255,000,000 for fiscal year 7 2029; 8 ‘‘(v) $3,255,000,000 for fiscal year 9 2030; and 10 ‘‘(vi) $3,255,000,000 for fiscal year 11 2031; and’’; and 12 (ii) in subparagraph (B), by striking 13 clauses (i) through (v) and inserting the 14 following: 15 ‘‘(i) $1,300,000,000 for fiscal year 16 2026; 17 ‘‘(ii) $1,325,000,000 for fiscal year 18 2027; 19 ‘‘(iii) $1,350,000,000 for fiscal year 20 2028; 21 ‘‘(iv) $1,375,000,000 for fiscal year 22 2029; 23 ‘‘(v) $1,375,000,000 for fiscal year 24 2030; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 91 •HR 1 RH ‘‘(vi) $1,375,000,000 for fiscal year 1 2031.’’. 2 (2) REGIONAL CONSERVATION PARTNERSHIP 3 PROGRAM.—Section 1271D of the Food Security Act 4 of 1985 (16 U.S.C. 3871d) is amended by striking 5 subsection (a) and inserting the following: 6 ‘‘(a) AVAILABILITY OF FUNDING.—Of the funds of 7 the Commodity Credit Corporation, the Secretary shall 8 use to carry out the program, to the maximum extent 9 practicable— 10 ‘‘(1) $425,000,000 for fiscal year 2026; 11 ‘‘(2) $450,000,000 for fiscal year 2027; 12 ‘‘(3) $450,000,000 for fiscal year 2028; 13 ‘‘(4) $450,000,000 for fiscal year 2029; 14 ‘‘(5) $450,000,000 for fiscal year 2030; and 15 ‘‘(6) $450,000,000 for fiscal year 2031.’’. 16 (3) WATERSHED PROTECTION AND FLOOD PRE- 17 VENTION.—Section 15 of the Watershed Protection 18 and Flood Prevention Act (16 U.S.C. 1012a) is 19 amended— 20 (A) by striking ‘‘$50,000,000 for fiscal 21 year 2019’’ and inserting ‘‘$150,000,000 for 22 fiscal year 2026’’; and 23 (B) by inserting ‘‘, to remain available 24 until expended’’ before the period at the end. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00091 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 92 •HR 1 RH (4) RESCISSION.—The unobligated balances of 1 amounts appropriated by section 21001(a) of Public 2 Law 117–169 (136 Stat. 2015) are rescinded. 3 SEC. 10103. TRADE. 4 Section 203(f) of the Agricultural Trade Act of 1978 5 (7 U.S.C. 5623(f)) is amended— 6 (1) in paragraph (2)— 7 (A) by striking ‘‘For each of fiscal years’’ 8 and inserting ‘‘(A) IN GENERAL.—For each of 9 fiscal years’’; and 10 (B) by adding at the end the following new 11 subparagraph: 12 ‘‘(B) FISCAL YEARS 2026 THROUGH 2031.— 13 For each of fiscal years 2026 through 2031, of 14 the funds of, or an equal value of commodities 15 owned by, the Commodity Credit Corporation, 16 the Secretary shall use to carry out this section 17 $489,500,000, to remain available until ex- 18 pended.’’; 19 (2) by redesignating paragraphs (4) and (5) as 20 paragraphs (5) and (6), respectively; 21 (3) by inserting after paragraph (3) the fol- 22 lowing new paragraph: 23 ‘‘(4) ALLOCATIONS FOR FISCAL YEARS 2026 24 THROUGH 2031.— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00092 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 93 •HR 1 RH ‘‘(A) IN GENERAL.—For each of fiscal 1 years 2026 through 2031, the Secretary shall 2 allocate funds to carry out this section in ac- 3 cordance with the following: 4 ‘‘(i) MARKET ACCESS PROGRAM.—For 5 market access activities authorized under 6 subsection (b), of the funds of, or an equal 7 value of commodities owned by, the Com- 8 modity Credit Corporation, not less than 9 $400,000,000 for each fiscal year. 10 ‘‘(ii) FOREIGN MARKET DEVELOP- 11 MENT COOPERATOR PROGRAM.—To carry 12 out subsection (c), of the funds of, or an 13 equal value of commodities owned by, the 14 Commodity Credit Corporation, not less 15 than $69,000,000 for each fiscal year. 16 ‘‘(iii) E (KIKA) DE LA GARZA EMERG- 17 ING MARKETS PROGRAM.—To provide as- 18 sistance under subsection (d), of the funds 19 of, or an equal value of commodities owned 20 by, the Commodity Credit Corporation, not 21 more than $8,000,000 for each fiscal year. 22 ‘‘(iv) TECHNICAL ASSISTANCE FOR 23 SPECIALTY CROPS.—To carry out sub- 24 section (e), of the funds of, or an equal 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00093 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 94 •HR 1 RH value of the commodities owned by, the 1 Commodity Credit Corporation, 2 $9,000,000 for each fiscal year. 3 ‘‘(v) PRIORITY TRADE FUND.— 4 ‘‘(I) IN GENERAL.—In addition 5 to the amounts allocated under 6 clauses (i) through (iv), and notwith- 7 standing any limitations in those 8 clauses, as determined by the Sec- 9 retary, for 1 or more programs under 10 this section for authorized activities to 11 access, develop, maintain, and expand 12 markets for United States agricultural 13 commodities, $3,500,000 for each fis- 14 cal year. 15 ‘‘(II) CONSIDERATIONS.—In allo- 16 cating funds made available under 17 subclause (I), the Secretary may con- 18 sider providing a greater allocation to 19 1 or more programs under this section 20 for which the amounts requested 21 under applications exceed available 22 funding for the 1 or more programs. 23 ‘‘(B) REALLOCATION.—Any funds allo- 24 cated under clauses (i) through (iv) of subpara- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00094 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 95 •HR 1 RH graph (A) that remain unobligated one year 1 after the end of the fiscal year in which they 2 are first made available shall be reallocated to 3 the priority trade fund under subparagraph 4 (A)(v). To the maximum extent practicable, the 5 Secretary shall allocate such reallocated funds 6 to support exports of those types of United 7 States agricultural commodities eligible for as- 8 sistance under the program for which the funds 9 were originally allocated under subparagraph 10 (A).’’; and 11 (4) in paragraph (6), as so redesignated, by in- 12 serting ‘‘, paragraph (4)(A)(v),’’ after ‘‘paragraph 13 (3)(A)(v)’’. 14 SEC. 10104. RESEARCH. 15 (a) URBAN, INDOOR, AND OTHER EMERGING AGRI- 16 CULTURAL PRODUCTION RESEARCH, EDUCATION, AND 17 EXTENSION INITIATIVE.—Section 1672E(d)(1)(B) of the 18 Food, Agriculture, Conservation, and Trade Act of 1990 19 (7 U.S.C. 5925g(d)(1)(B)) is amended by striking ‘‘fiscal 20 year 2024, to remain available until expended’’ and insert- 21 ing ‘‘each of fiscal years 2024 through 2031’’. 22 (b) FOUNDATION FOR FOOD AND AGRICULTURE RE- 23 SEARCH.—Section 7601(g)(1)(A) of the Agricultural Act 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 96 •HR 1 RH of 2014 (7 U.S.C. 5939(g)(1)(A)) is amended adding at 1 the end the following: 2 ‘‘(iv) FURTHER FUNDING.—Of the 3 funds of the Commodity Credit Corpora- 4 tion, the Secretary shall transfer to the 5 Foundation to carry out this section, to re- 6 main available until expended, not later 7 than 30 days after the date of enactment 8 of this clause, $37,000,000.’’. 9 (c) SCHOLARSHIPS FOR STUDENTS AT 1890 INSTI- 10 TUTIONS.—Section 1446 of the National Agricultural Re- 11 search, Extension, and Teaching Policy Act of 1977 (7 12 U.S.C. 3222a) is amended— 13 (1) in subsection (a)— 14 (A) by striking paragraph (3); and 15 (B) by redesignating paragraph (4) as 16 paragraph (3); and 17 (2) in subsection (b), by amending paragraph 18 (1) to read as follows: 19 ‘‘(1) MANDATORY FUNDING.—Of the funds of 20 the Commodity Credit Corporation, the Secretary 21 shall make available to carry out this section 22 $60,000,000 for fiscal year 2026, to remain avail- 23 able until expended.’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00096 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 97 •HR 1 RH (d) ASSISTIVE TECHNOLOGY PROGRAM FOR FARM- 1 ERS WITH DISABILITIES.—Section 1680(c) of the Food, 2 Agriculture, Conservation, and Trade Act of 1990 (7 3 U.S.C. 5933(c)) is amended— 4 (1) in the subsection heading, by striking ‘‘AU- 5 THORIZATION OF APPROPRIATIONS’’ and inserting 6 ‘‘FUNDING’’; 7 (2) by redesignating paragraphs (1) and (2) as 8 paragraphs (2) and (3), respectively; and 9 (3) by inserting before paragraph (2), as so re- 10 designated, the following: 11 ‘‘(1) MANDATORY FUNDING.—Of the funds of 12 the Commodity Credit Corporation, the Secretary 13 shall use to carry out this section $8,000,000, to re- 14 main available until expended.’’; and 15 (4) in paragraph (2), as so redesignated— 16 (A) in the paragraph heading, by striking 17 ‘‘IN GENERAL’’ and inserting ‘‘AUTHORIZATION 18 OF APPROPRIATIONS’’; and 19 (B) by striking ‘‘Subject to paragraph (2)’’ 20 and inserting ‘‘Subject to paragraph (3)’’. 21 (e) SPECIALTY CROP RESEARCH INITIATIVE.—Sec- 22 tion 412(k)(1)(B) of the Agricultural Research, Exten- 23 sion, and Education Reform Act of 1998 (7 U.S.C. 24 7632(k)(1)(B)) is amended by striking ‘‘section 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00097 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 98 •HR 1 RH $80,000,000 for fiscal year 2014’’ and inserting the fol- 1 lowing: ‘‘section— 2 ‘‘(i) $80,000,000 for each of fiscal 3 years 2014 through 2025; and 4 ‘‘(ii) $175,000,000 for fiscal year 5 2026’’. 6 (f) RESEARCH FACILITIES ACT.—Section 6 of the 7 Research Facilities Act (7 U.S.C. 390d) is amended— 8 (1) in the section heading by striking ‘‘AU- 9 THORIZATION OF APPROPRIATIONS’’ and insert- 10 ing ‘‘FUNDING’’; and 11 (2) in subsection (a)— 12 (A) by striking ‘‘(a) IN GENERAL.—Sub- 13 ject to’’ and inserting the following: 14 ‘‘(a) IN GENERAL.— 15 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 16 Subject to’’; and 17 (B) by adding at the end the following: 18 ‘‘(2) MANDATORY FUNDING.—Of the funds of 19 the Commodity Credit Corporation, the Secretary 20 shall make available to carry out the competitive 21 grant program under section 4, $125,000,000 for 22 each fiscal year beginning with fiscal year 2026.’’. 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00098 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 99 •HR 1 RH SEC. 10105. SECURE RURAL SCHOOLS; FORESTRY. 1 (a) EXTENSION OF CERTAIN PROVISIONS OF SECURE 2 RURAL SCHOOLS AND COMMUNITY SELF-DETERMINA- 3 TION ACT OF 2000.— 4 (1) SECURE PAYMENTS FOR STATES AND COUN- 5 TIES CONTAINING FEDERAL LAND.— 6 (A) SECURE PAYMENTS.—Section 101 of 7 the Secure Rural Schools and Community Self- 8 Determination Act of 2000 (16 U.S.C. 7111) is 9 amended— 10 (i) in subsections (a) and (b), by 11 striking ‘‘2023’’ each place it appears and 12 inserting ‘‘2026’’; and 13 (ii) by adding at the end the fol- 14 lowing: 15 ‘‘(e) SPECIAL RULE FOR FISCAL YEAR 2024 PAY- 16 MENTS.— 17 ‘‘(1) STATE PAYMENT.—If an eligible county in 18 a State that will receive a share of the State pay- 19 ment for fiscal year 2024 has already received, or 20 will receive, a share of the 25-percent payment for 21 fiscal year 2024 distributed to the State before the 22 date of enactment of this subsection— 23 ‘‘(A) if the amount of the State payment 24 exceeds the amount of the 25-percent payment, 25 the amount of the State payment shall be re- 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 100 •HR 1 RH duced by the amount of the share of the eligible 1 county of the 25-percent payment; or 2 ‘‘(B) if the amount of the State payment 3 is less than or equal to the amount of the 25- 4 percent payment, the eligible county— 5 ‘‘(i) may retain the amount of the 6 share of the eligible county of the 25-per- 7 cent payment; and 8 ‘‘(ii) if so retained, such amount shall 9 be treated as if it were received by the 10 county as a State payment for purposes of 11 this Act. 12 ‘‘(2) COUNTY PAYMENT.—If an eligible county 13 that will receive a county payment for fiscal year 14 2024 has already received a 50-percent payment for 15 fiscal year 2024— 16 ‘‘(A) if the amount of the county payment 17 exceeds the amount of the 50-percent payment, 18 the amount of the county payment shall be re- 19 duced by the amount of the 50-percent pay- 20 ment; or 21 ‘‘(B) if the amount of the county payment 22 is less than or equal to the amount of the 50- 23 percent payment, the eligible county— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00100 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 101 •HR 1 RH ‘‘(i) may retain the amount of the 50- 1 percent payment; and 2 ‘‘(ii) if so retained, such amount shall 3 be treated as if it were received as a coun- 4 ty payment for purposes of this Act. 5 ‘‘(3) TIMELY PAYMENT.—Not later than 90 6 days after the date of enactment of this subsection, 7 the Secretary of the Treasury shall make all pay- 8 ments under this title for fiscal year 2024.’’. 9 (B) DISTRIBUTION OF PAYMENTS TO ELI- 10 GIBLE COUNTIES.—Section 103(d)(2) of the Se- 11 cure Rural Schools and Community Self-Deter- 12 mination Act of 2000 (16 U.S.C. 7113(d)(2)) is 13 amended by striking ‘‘2023’’ and inserting 14 ‘‘2026’’. 15 (2) PAYMENTS TO STATES AND COUNTIES.— 16 Section 102 of the Secure Rural Schools and Com- 17 munity Self-Determination Act of 2000 (16 U.S.C. 18 7112) is amended— 19 (A) in subsection (b)— 20 (i) in paragraph (1), by adding at the 21 end the following: 22 ‘‘(E) PAYMENTS FOR EACH OF FISCAL 23 YEARS 2024 AND 2025.—The election otherwise 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00101 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 102 •HR 1 RH required by subparagraph (A) shall not apply 1 for each of fiscal years 2024 and 2025.’’; and 2 (ii) in paragraph (2), by adding at the 3 end the following: 4 ‘‘(C) FISCAL YEARS 2024 AND 2025.—The 5 election described in paragraph (1)(A) applica- 6 ble to a county in fiscal year 2023 shall be ef- 7 fective for each of fiscal years 2024 and 8 2025.’’; and 9 (B) in subsection (d)— 10 (i) in paragraph (1), by adding at the 11 end the following: 12 ‘‘(G) PAYMENTS FOR EACH OF FISCAL 13 YEARS 2024 AND 2025.—The election made by 14 an eligible county under subparagraph (B), (C), 15 or (D) for fiscal year 2023, or deemed to be 16 made by the county under paragraph (3)(B) for 17 that fiscal year, shall be effective for each of 18 fiscal years 2024 and 2025.’’; and 19 (ii) in paragraph (3), by adding at the 20 end the following: 21 ‘‘(E) PAYMENTS FOR EACH OF FISCAL 22 YEARS 2024 AND 2025.—This paragraph does 23 not apply for each of fiscal years 2024 and 24 2025.’’. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00102 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 103 •HR 1 RH (3) EXTENSION OF AUTHORITY TO CONDUCT 1 SPECIAL PROJECTS ON FEDERAL LAND.— 2 (A) COMMITTEE ON COMPOSITION WAIVER 3 AUTHORITY.—Section 205(d)(6)(C) of the Se- 4 cure Rural Schools and Community Self-Deter- 5 mination Act of 2000 (16 U.S.C. 6 7125(d)(6)(C)) is amended by striking ‘‘2023’’ 7 and inserting ‘‘2026’’. 8 (B) EXTENSION OF AUTHORITY.—Section 9 208 of the Secure Rural Schools and Commu- 10 nity Self-Determination Act of 2000 (16 U.S.C. 11 7128) is amended— 12 (i) in subsection (a), by striking 13 ‘‘2025’’ and inserting ‘‘2028’’; and 14 (ii) in subsection (b), by striking 15 ‘‘2026’’ and inserting ‘‘2029’’. 16 (4) EXTENSION OF AUTHORITY TO EXPEND 17 COUNTY FUNDS.—Section 305 of the Secure Rural 18 Schools and Community Self-Determination Act of 19 2000 (16 U.S.C. 7144) is amended— 20 (A) in subsection (a), by striking ‘‘2025’’ 21 and inserting ‘‘2028’’; and 22 (B) in subsection (b), by striking ‘‘2026’’ 23 and inserting ‘‘2029’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00103 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 104 •HR 1 RH (b) RESOURCE ADVISORY COMMITTEE PILOT PRO- 1 GRAM EXTENSION.—Section 205(g) of the Secure Rural 2 Schools and Community Self-Determination Act of 2000 3 (16 U.S.C. 7125(g)) is amended— 4 (1) in paragraph (5), by striking ‘‘2023’’ and 5 inserting ‘‘2026’’; and 6 (2) by striking paragraph (6). 7 (c) TECHNICAL CORRECTIONS.— 8 (1) RESOURCE ADVISORY COMMITTEES.—Sec- 9 tion 205 of the Secure Rural Schools and Commu- 10 nity Self-Determination Act of 2000 (16 U.S.C. 11 7125) is amended— 12 (A) in subsection (c)— 13 (i) in paragraph (1), by striking ‘‘con- 14 cerned,’’ and inserting ‘‘concerned’’; and 15 (ii) in paragraph (3), by striking ‘‘the 16 date of the enactment of this Act’’ and in- 17 serting ‘‘October 3, 2008’’; and 18 (B) in subsection (d)(4), by striking ‘‘to 19 extent’’ and inserting ‘‘to the extent’’. 20 (2) USE OF PROJECT FUNDS.—Section 21 206(b)(2) of the Secure Rural Schools and Commu- 22 nity Self-Determination Act of 2000 (16 U.S.C. 23 7126(b)(2)) is amended by striking ‘‘concerned,’’ 24 and inserting ‘‘concerned’’. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 105 •HR 1 RH (d) RESCISSIONS.— 1 (1) COMPETITIVE GRANTS FOR NON-FEDERAL 2 FOREST LANDOWNERS.—All of the unobligated bal- 3 ances of the funds made available under each of 4 paragraphs (1) through (4) of section 23002(a) of 5 subtitle D of Public Law 117–169 are rescinded. 6 (2) STATE AND PRIVATE FORESTRY CONSERVA- 7 TION PROGRAMS.—Of the unobligated balances avail- 8 able under section 23003(a)(1) of subtitle D of Pub- 9 lic Law 117–169, $100,719,676 are rescinded. 10 SEC. 10106. ENERGY. 11 (a) BIOBASED MARKETS PROGRAM.—Section 12 9002(k)(1) of the Farm Security and Rural Investment 13 Act of 2002 (7 U.S.C. 8102(k)(1)) is amended by striking 14 ‘‘2024’’ and inserting ‘‘2031’’. 15 (b) BIOENERGY PROGRAM FOR ADVANCED 16 BIOFUELS.—Section 9005(g)(1)(F) of the Farm Security 17 and Rural Investment Act of 2002 (7 U.S.C. 18 8105(g)(1)(F)) is amended by striking ‘‘2024’’ and insert- 19 ing ‘‘2031’’. 20 SEC. 10107. HORTICULTURE. 21 (a) PLANT PEST AND DISEASE MANAGEMENT AND 22 DISASTER PREVENTION.—Section 420(f) of the Plant 23 Protection Act (7 U.S.C. 7721) is amended— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 106 •HR 1 RH (1) in paragraph (5), by striking ‘‘and’’ at the 1 end; 2 (2) by redesignating paragraph (6) as para- 3 graph (7); 4 (3) by inserting after paragraph (5) the fol- 5 lowing: 6 ‘‘(6) $75,000,000 for each of fiscal years 2018 7 through 2025; and’’; and 8 (4) in paragraph (7) (as so redesignated), by 9 striking ‘‘$75,000,000 for fiscal year 2018’’ and in- 10 serting ‘‘$90,000,000 for fiscal year 2026’’. 11 (b) SPECIALTY CROP BLOCK GRANTS.—Section 12 101(l)(1) of the Specialty Crops Competitiveness Act of 13 2004 (7 U.S.C. 1621 note; Public Law 108–465) is 14 amended— 15 (1) in subparagraph (D), by striking ‘‘and’’ at 16 the end; 17 (2) by redesignating subparagraph (E) as sub- 18 paragraph (F); 19 (3) by inserting after subparagraph (D) the fol- 20 lowing: 21 ‘‘(E) $85,000,000 for each of fiscal years 22 2018 through 2025; and’’; and 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00106 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 107 •HR 1 RH (4) in subparagraph (F) (as so redesignated), 1 by striking ‘‘$85,000,000 for fiscal year 2018’’ and 2 inserting ‘‘$100,000,000 for fiscal year 2026’’.’’. 3 (c) ORGANIC PRODUCTION AND MARKET DATA INI- 4 TIATIVE.—Section 7407(d)(1) of the Farm Security and 5 Rural Investment Act of 2002 (7 U.S.C. 5925c(d)(1)) is 6 amended— 7 (1) in subparagraph (B), by striking ‘‘and’’ at 8 the end; 9 (2) in subparagraph (C), by striking the period 10 at the end and inserting ‘‘; and’’; and 11 (3) by adding at the end the following: 12 ‘‘(D) $10,000,000 for the period of fiscal 13 years 2026 through 2031.’’. 14 (d) MODERNIZATION AND IMPROVEMENT OF INTER- 15 NATIONAL TRADE TECHNOLOGY SYSTEMS AND DATA 16 COLLECTION FUNDING.—Section 2123(c)(4) of the Or- 17 ganic Foods Production Act of 1990 (7 U.S.C. 18 6522(c)(4)) is amended, in the matter preceding subpara- 19 graph (A), by striking ‘‘and $1,000,000 for fiscal year 20 2024’’ and inserting ‘‘, $1,000,000 for fiscal years 2024 21 and 2025, and $5,000,000 for fiscal year 2026’’. 22 (e) NATIONAL ORGANIC CERTIFICATION COST-SHARE 23 PROGRAM.—Section 10606(d)(1)(C) of the Farm Security 24 and Rural Investment Act of 2002 (7 U.S.C. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00107 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 108 •HR 1 RH 6523(d)(1)(C)) is amended by striking ‘‘for each of fiscal 1 years 2022 through 2024’’ and inserting ‘‘for each of fis- 2 cal years 2022 through 2031’’. 3 (f) MULTIPLE CROP AND PESTICIDE USE SURVEY.— 4 Section 10109(c)(1) of the Agriculture Improvement Act 5 of 2018 (Public Law 115–334; 132 Stat. 4906) is amend- 6 ed to read as follows: 7 ‘‘(1) MANDATORY FUNDING.—Of the funds of 8 the Commodity Credit Corporation, the Secretary 9 shall use to carry out this section— 10 ‘‘(A) $500,000 for fiscal year 2019, to re- 11 main available until expended; 12 ‘‘(B) $100,000 for fiscal year 2024, to re- 13 main available until expended; and 14 ‘‘(C) $5,000,000 for fiscal year 2026, to 15 remain available until expended.’’. 16 SEC. 10108. MISCELLANEOUS. 17 (a) ANIMAL DISEASE PREVENTION AND MANAGE- 18 MENT.—Section 10409A(d)(1) of the Animal Health Pro- 19 tection Act (7 U.S.C. 8308a(d)(1)) is amended to read 20 as follows: 21 ‘‘(1) MANDATORY FUNDING.— 22 ‘‘(A) FISCAL YEARS 2023 THROUGH 23 2025.—Of the funds of the Commodity Credit 24 Corporation, the Secretary shall make available 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 109 •HR 1 RH to carry out this section $30,000,000 for each 1 of fiscal years 2023 through 2025, of which not 2 less than $18,000,000 shall be made available 3 for each of those fiscal years to carry out sub- 4 section (b). 5 ‘‘(B) FISCAL YEARS 2026 THROUGH 6 2030.—Of the funds of the Commodity Credit 7 Corporation, the Secretary shall make available 8 to carry out this section $233,000,000 for each 9 of fiscal years 2026 through 2030, of which— 10 ‘‘(i) not less than $10,000,000 shall 11 be made available for each such fiscal year 12 to carry out subsection (a); 13 ‘‘(ii) not less than $70,000,000 shall 14 be made available for each such fiscal year 15 to carry out subsection (b); and 16 ‘‘(iii) not less than $153,000,000 shall 17 be made available for each such fiscal year 18 to carry out subsection (c). 19 ‘‘(C) SUBSEQUENT FISCAL YEARS.—Of the 20 funds of the Commodity Credit Corporation, the 21 Secretary shall make available to carry out this 22 section $75,000,000 for fiscal year 2031 and 23 each fiscal year thereafter, of which not less 24 than $45,000,000 shall be made available for 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00109 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 110 •HR 1 RH each of those fiscal years to carry out sub- 1 section (b).’’. 2 (b) SHEEP PRODUCTION AND MARKETING GRANT 3 PROGRAM.—Section 209(c) of the Agricultural Marketing 4 Act of 1946 (7 U.S.C. 1627a(c)) is amended— 5 (1) by striking ‘‘$2,000,000 for fiscal year 6 2019, and’’; and 7 (2) by inserting ‘‘and $3,000,000 for fiscal year 8 2026’’ after ‘‘fiscal year 2024’’. 9 (c) MISCELLANEOUS TRUST FUNDS.— 10 (1) PIMA AGRICULTURE COTTON TRUST 11 FUND.—Section 12314 of the Agricultural Act of 12 2014 (7 U.S.C. 2101 note; Public Law 113–79) is 13 amended— 14 (A) in subsection (b), in the matter pre- 15 ceding paragraph (1), by striking ‘‘2024’’ and 16 inserting ‘‘2031’’; and 17 (B) in subsection (h), by striking ‘‘2024’’ 18 and inserting ‘‘2031’’. 19 (2) AGRICULTURE WOOL APPAREL MANUFAC- 20 TURERS TRUST FUND.—Section 12315 of the Agri- 21 cultural Act of 2014 (7 U.S.C. 7101 note; Public 22 Law 113–79) is amended by striking ‘‘2024’’ each 23 place it appears and inserting ‘‘2031’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00110 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 111 •HR 1 RH (3) WOOL RESEARCH AND PROMOTION.—Sec- 1 tion 12316(a) of the Agricultural Act of 2014 (7 2 U.S.C. 7101 note; Public Law 113–79) is amended 3 by striking ‘‘2024’’ and inserting ‘‘2031’’. 4 (4) EMERGENCY CITRUS DISEASE RESEARCH 5 AND DEVELOPMENT TRUST FUND.—Section 6 12605(d) of the Agriculture Improvement Act of 7 2018 (7 U.S.C. 7632 note; Public Law 115–334) is 8 amended by striking ‘‘2024’’ and inserting ‘‘2031’’. 9 TITLE II—COMMITTEE ON 10 ARMED SERVICES 11 SEC. 20001. ENHANCEMENT OF DEPARTMENT OF DEFENSE 12 RESOURCES FOR IMPROVING THE QUALITY 13 OF LIFE FOR MILITARY PERSONNEL. 14 (a) APPROPRIATIONS.—In addition to amounts other- 15 wise available, there are appropriated to the Secretary of 16 Defense for fiscal year 2025, out of any money in the 17 Treasury not otherwise appropriated, to remain available 18 until September 30, 2029— 19 (1) $230,480,000 for restoration and mod- 20 ernization costs under the Marine Corps Barracks 21 2030 initiative; 22 (2) $119,000,000 for base operating support 23 costs under the Marine Corps Barracks 2030 initia- 24 tive; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00111 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 112 •HR 1 RH (3) $1,000,000,000 for Army, Navy, Air Force, 1 and Space Force sustainment, restoration, and mod- 2 ernizations of military unaccompanied housing; 3 (4) $2,000,000,000 for the Defense Health 4 Program; 5 (5) $2,900,000,000 to supplement the basic al- 6 lowance for housing payable to members of the 7 Armed Forces, notwithstanding section 403 of title 8 37, United States Code; 9 (6) $50,000,000 for bonuses, special pays, and 10 incentive pays for members of the Armed Forces 11 pursuant to titles 10 and 37, United States Code; 12 (7) $10,000,000 for the Defense Activity for 13 Non-Traditional Education Support’s Online Aca- 14 demic Skills Course program for members of the 15 Armed Forces; 16 (8) $100,000,000 for tuition assistance for 17 members of the Armed Forces pursuant to title 10, 18 United States Code; 19 (9) $100,000,000 for child care fee assistance 20 for members of the Armed Forces under part II of 21 chapter 88 of title 10, United States Code; 22 (10) $590,000,000 to increase the Temporary 23 Lodging Expense Allowance under chapter 8 of title 24 37, United States Code, to 21 days; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00112 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 113 •HR 1 RH (11) $100,000,000 for Department of Defense 1 Impact Aid payments to local educational agencies 2 under section 2008 of title 10, United States Code; 3 (12) $10,000,000 for military spouse profes- 4 sional licensure under section 1784 of title 10, 5 United States Code; 6 (13) $6,000,000 for Armed Forces Retirement 7 Home facilities; and 8 (14) $100,000,000 for the Defense Community 9 Infrastructure Program. 10 (b) TEMPORARY INCREASE IN PERCENTAGE OF 11 VALUE OF AUTHORIZED INVESTMENT IN CERTAIN 12 PRIVATIZED MILITARY HOUSING PROJECTS.— 13 (1) IN GENERAL.—During the period beginning 14 on the date of the enactment of this section and 15 ending on September 30, 2029, the Secretary con- 16 cerned shall apply— 17 (A) paragraph (1) of subsection (c) of sec- 18 tion 2875 of title 10, United States Code, by 19 substituting ‘‘60 percent’’ for ‘‘33 1⁄3 per- 20 cent’’; and 21 (B) paragraph (2) of such subsection by 22 substituting ‘‘60 percent’’ for ‘‘45 percent’’. 23 (2) SECRETARY CONCERNED DEFINED.—In this 24 subsection, the term ‘‘Secretary concerned’’ has the 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00113 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 114 •HR 1 RH meaning given such term in section 101 of title 10, 1 United States Code. 2 (c) TEMPORARY AUTHORITY FOR ACQUISITION OR 3 CONSTRUCTION OF PRIVATIZED MILITARY UNACCOM- 4 PANIED HOUSING.—Section 2881a of title 10, United 5 States Code, is amended— 6 (1) by striking the heading and inserting 7 ‘‘Temporary authority for acquisition or 8 construction of privatized military unac- 9 companied housing’’; 10 (2) by striking ‘‘Secretary of the Navy’’ each 11 place it appears and inserting ‘‘Secretary con- 12 cerned’’; 13 (3) by striking ‘‘under the pilot projects’’ each 14 place it appears and inserting ‘‘pursuant to this sec- 15 tion’’; 16 (4) in subsection (a)— 17 (A) by striking the heading and inserting 18 ‘‘IN GENERAL’’; and 19 (B) by striking ‘‘carry out not more than 20 three pilot projects under the authority of this 21 section or another provision of this subchapter 22 to use the private sector’’ and inserting ‘‘use 23 the authority under this subchapter to enter 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00114 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 115 •HR 1 RH into contracts with appropriate private sector 1 entities’’; 2 (5) in subsection (c), by striking ‘‘privatized 3 housing’’ and inserting ‘‘privatized housing units’’; 4 (6) by redesignating subsection (f) as sub- 5 section (e); and 6 (7) in subsection (e) (as so redesignated)— 7 (A) by striking ‘‘under the pilot programs’’ 8 and inserting ‘‘under this section’’; and 9 (B) by striking ‘‘September 30, 2009’’ and 10 inserting ‘‘September 30, 2029’’. 11 SEC. 20002. ENHANCEMENT OF DEPARTMENT OF DEFENSE 12 RESOURCES FOR SHIPBUILDING. 13 In addition to amounts otherwise available, there are 14 appropriated to the Secretary of Defense for fiscal year 15 2025, out of any money in the Treasury not otherwise ap- 16 propriated, to remain available until September 30, 17 2029— 18 (1) $250,000,000 for the expansion of acceler- 19 ated Training in Defense Manufacturing program; 20 (2) $250,000,000 for United States production 21 of turbine generators for shipbuilding industrial 22 base; 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00115 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 116 •HR 1 RH (3) $450,000,000 for United States additive 1 manufacturing for wire production and machining 2 capacity for shipbuilding industrial base; 3 (4) $492,000,000 for next-generation ship- 4 building techniques; 5 (5) $85,000,000 for United States-made steel 6 plate for shipbuilding industrial base; 7 (6) $50,000,000 for machining capacity for 8 naval propellers for shipbuilding industrial base; 9 (7) $110,000,000 for rolled steel and fabrica- 10 tion facility for shipbuilding industrial base; 11 (8) $400,000,000 for expansion of collaborative 12 campus for naval shipbuilding; 13 (9) $450,000,000 for application of autonomy 14 and artificial intelligence to naval shipbuilding; 15 (10) $500,000,000 for the adoption of advanced 16 manufacturing techniques in the maritime industrial 17 base; 18 (11) $500,000,000 for additional dry-dock ca- 19 pability; 20 (12) $50,000,000 for the expansion of cold 21 spray repair technologies; 22 (13) $450,000,000 for additional maritime in- 23 dustrial workforce development programs; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00116 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 117 •HR 1 RH (14) $750,000,000 for additional supplier devel- 1 opment across the naval shipbuilding industrial base; 2 (15) $250,000,000 for additional advanced 3 manufacturing processes across the naval ship- 4 building industrial base; 5 (16) $4,600,000,000 for a second Virginia-class 6 submarine in fiscal year 2027; 7 (17) $5,400,000,000 for two additional Guided 8 Missile Destroyer (DDG) ships; 9 (18) $160,000,000 for advanced procurement 10 for Landing Ship Medium; 11 (19) $1,803,941,000 for procurement of Land- 12 ing Ship Medium; 13 (20) $295,000,000 for development of a second 14 Landing Craft Utility shipyard and production of 15 additional Landing Craft Utility; 16 (21) $100,000,000 for the procurement of com- 17 mercial logistics ships; 18 (22) $600,000,000 for the lease or purchase of 19 new ships through the National Defense Sealift 20 Fund; 21 (23) $2,725,000,000 for the procurement of T- 22 AO oilers; 23 (24) $500,000,000 for cost-to-complete for res- 24 cue and salvage ships; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00117 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 118 •HR 1 RH (25) $300,000,000 for production of ship-to- 1 shore connectors; 2 (26) $695,000,000 for the implementation of a 3 multi-ship amphibious warship contract; 4 (27) $80,000,000 for accelerated development 5 of vertical launch system reloading at sea; 6 (28) $250,000,000 for expansion of Navy corro- 7 sion control programs; 8 (29) $159,000,000 for leasing of ships for Ma- 9 rine Corps operations; 10 (30) $1,534,000,000 for expansion of small un- 11 manned surface vessel production; 12 (31) $1,800,000,000 for expansion of medium 13 unmanned surface vessel production; 14 (32) $1,300,000,000 for expansion of un- 15 manned underwater vehicle production; 16 (33) $188,360,000 for the development and 17 testing of maritime robotic autonomous systems and 18 enabling technologies; 19 (34) $174,000,000 for the development of a 20 Test Resource Management Center robotic autono- 21 mous systems proving ground; 22 (35) $250,000,000 for the development, produc- 23 tion, and integration of wave-powered unmanned un- 24 derwater vehicles; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00118 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 119 •HR 1 RH (36) $2,100,000,000 for San Antonio-class Am- 1 phibious Transport Dock (LPD); and 2 (37) $3,700,000,000 for America-class Amphib- 3 ious Assault Ship (LHA). 4 SEC. 20003. ENHANCEMENT OF DEPARTMENT OF DEFENSE 5 RESOURCES FOR INTEGRATED AIR AND MIS- 6 SILE DEFENSE. 7 (a) NEXT GENERATION MISSILE DEFENSE TECH- 8 NOLOGIES.—In addition to amounts otherwise available, 9 there are appropriated to the Secretary of Defense for fis- 10 cal year 2025, out of any money in the Treasury not other- 11 wise appropriated, to remain available until September 30, 12 2029— 13 (1) $183,000,000 for Missile Defense Agency 14 special programs; 15 (2) $250,000,000 for development and testing 16 of directed energy capabilities by the Under Sec- 17 retary for Research and Engineering; 18 (3) $300,000,000 for classified military space 19 superiority programs run by the Strategic Capabili- 20 ties Office; 21 (4) $500,000,000 for national security space 22 launch infrastructure; 23 (5) $2,000,000,000 for air moving target indi- 24 cator military satellites; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00119 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 120 •HR 1 RH (6) $400,000,000 for expansion of Multi-Serv- 1 ice Advanced Capability Hypersonic Test Bed pro- 2 gram; 3 (7) $5,600,000,000 for development of space- 4 based and boost phase intercept capabilities; 5 (8) $2,400,000,000 for the development of mili- 6 tary non-kinetic missile defense effects; and 7 (9) $7,200,000,000 for the development, pro- 8 curement, and integration of military space-based 9 sensors. 10 (b) LAYERED HOMELAND DEFENSE.—In addition to 11 amounts otherwise available, there are appropriated to the 12 Secretary of Defense for fiscal year 2025, out of any 13 money in the Treasury not otherwise appropriated, to re- 14 main available until September 30, 2029— 15 (1) $2,200,000,000 for acceleration of 16 hypersonic defense systems; 17 (2) $800,000,000 for accelerated development 18 and deployment of next-generation intercontinental 19 ballistic missile defense systems; 20 (3) $408,000,000 for Army space and strategic 21 missile test range infrastructure restoration and 22 modernization in the United States Indo-Pacific 23 Command area of operations west of the inter- 24 national dateline; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00120 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 121 •HR 1 RH (4) $1,975,000,000 for improved ground-based 1 missile defense radars; and 2 (5) $530,000,000 for the design and construc- 3 tion of Missile Defense Agency missile instrumenta- 4 tion range safety ship. 5 SEC. 20004. ENHANCEMENT OF DEPARTMENT OF DEFENSE 6 RESOURCES FOR MUNITIONS AND DEFENSE 7 SUPPLY CHAIN RESILIENCY. 8 (a) APPROPRIATIONS.—In addition to amounts other- 9 wise available, there are appropriated to the Secretary of 10 Defense for fiscal year 2025, out of any money in the 11 Treasury not otherwise appropriated, to remain available 12 until September 30, 2029— 13 (1) $400,000,000 for the development, produc- 14 tion, and integration of Navy and Air Force long- 15 range anti-ship missiles; 16 (2) $380,000,000 for production capacity ex- 17 pansion for Navy and Air Force long-range anti-ship 18 missiles; 19 (3) $490,000,000 for the development, produc- 20 tion, and integration of Navy and Air Force long- 21 range air-to-surface missiles; 22 (4) $94,000,000 for the development, produc- 23 tion, and integration of alternative Navy and Air 24 Force long-range air-to-surface missiles; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00121 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 122 •HR 1 RH (5) $630,000,000 for the development, produc- 1 tion, and integration of long-range Navy air defense 2 and anti-ship missiles; 3 (6) $688,000,000 for the development, produc- 4 tion, and integration of long-range multi-service 5 cruise missiles; 6 (7) $250,000,000 for production capacity ex- 7 pansion and supplier base strengthening of long- 8 range multi-service cruise missiles; 9 (8) $70,000,000 for the development, produc- 10 tion, and integration of short-range Navy and Ma- 11 rine Corps anti-ship missiles; 12 (9) $100,000,000 for the development of an 13 anti-ship seeker for short-range Army ballistic mis- 14 siles; 15 (10) $175,000,000 for production capacity ex- 16 pansion for next-generation Army medium-range 17 ballistic missiles; 18 (11) $50,000,000 for the mitigation of dimin- 19 ishing manufacturing sources for medium-range air- 20 to-air missiles; 21 (12) $250,000,000 for the procurement of me- 22 dium-range air-to-air missiles; 23 (13) $225,000,000 for the expansion of produc- 24 tion capacity for medium-range air-to-air missiles; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00122 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 123 •HR 1 RH (14) $50,000,000 for the development of second 1 sources for components of short-range air-to-air mis- 2 siles; 3 (15) $325,000,000 for production capacity im- 4 provements for air-launched anti-radiation missiles; 5 (16) $50,000,000 for the accelerated develop- 6 ment of Army next-generation medium-range anti- 7 ship ballistic missiles; 8 (17) $114,000,000 for the production of Army 9 next-generation medium-range ballistic missiles; 10 (18) $300,000,000 for the production of Army 11 medium-range ballistic missiles; 12 (19) $85,000,000 for the accelerated develop- 13 ment of Army long-range ballistic missiles; 14 (20) $400,000,000 for the production of heavy- 15 weight torpedoes; 16 (21) $200,000,000 for the development, pro- 17 curement, and integration of commercial heavy- 18 weight torpedoes; 19 (22) $70,000,000 for the improvement of 20 heavyweight torpedo maintenance activities; 21 (23) $200,000,000 for the production of light- 22 weight torpedoes; 23 (24) $500,000,000 for the development, pro- 24 curement, and integration of maritime mines; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00123 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 124 •HR 1 RH (25) $50,000,000 for the development, procure- 1 ment, and integration of new underwater explosives; 2 (26) $55,000,000 for the development, procure- 3 ment, and integration of lightweight multi-mission 4 torpedoes; 5 (27) $80,000,000 for the production of 6 sonobuoys; 7 (28) $150,000,000 for the development, pro- 8 curement, and integration of air-delivered long-range 9 maritime mines; 10 (29) $61,000,000 for the acceleration of Navy 11 expeditionary loitering munitions deployment; 12 (30) $50,000,000 for the acceleration of one- 13 way attack unmanned aerial systems with advanced 14 autonomy; 15 (31) $1,000,000,000 for the expansion of the 16 one-way attack unmanned aerial systems industrial 17 base; 18 (32) $3,500,000,000 for grants made pursuant 19 to the Industrial Base Fund established under sec- 20 tion 4817 of title 10, United States Code; 21 (33) $1,000,000,000 for grants and purchase 22 commitments made pursuant to the Industrial Base 23 Fund established under section 4817 of title 10, 24 United States Code; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00124 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 125 •HR 1 RH (34) $200,000,000 for investments in solid 1 rocket motor industrial base through the Industrial 2 Base Fund established under section 4817 of title 3 10, United States Code; 4 (35) $400,000,000 for investments in the 5 emerging solid rocket motor industrial base through 6 the Industrial Base Fund established under section 7 4817 of title 10, United States Code; 8 (36) $42,000,000 for investments in second 9 sources for large-diameter solid rocket motors for 10 hypersonic missiles; 11 (37) $1,000,000,000 for the creation of next- 12 generation automated munitions production fac- 13 tories; 14 (38) $170,000,000 for the development of ad- 15 vanced radar depot for repair, testing, and produc- 16 tion of radar and electronic warfare systems; 17 (39) $25,000,000 for the expansion of the De- 18 partment of Defense industrial base policy analysis 19 workforce; 20 (40) $30,300,000 for the repair of Army mis- 21 siles; 22 (41) $100,000,000 for the production of small 23 and medium ammunition; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00125 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 126 •HR 1 RH (42) $2,500,000,000 for additional activities to 1 improve the United States production of critical 2 minerals through the National Defense Stockpile, 3 authorized by subchapter III of chapter 5 of title 50, 4 United States Code; 5 (43) $10,000,000 for the expansion of the De- 6 partment of Defense armaments cooperation work- 7 force; 8 (44) $250,000,000 for the expansion of the De- 9 fense Exportability Features program; 10 (45) $250,000,000 for the development of new 11 armaments cooperation programs; 12 (46) $350,000,000 for production of Navy long- 13 range air and missile defense interceptors; 14 (47) $93,000,000 for replacement of Navy long- 15 range air and missile defense interceptors; 16 (48) $100,000,000 for development of a second 17 solid rocket motor source for Navy air defense and 18 anti ship missiles; 19 (49) $65,000,000 for expansion of production 20 capacity of Missile Defense Agency long-range anti- 21 ballistic missiles; 22 (50) $225,000,000 for expansion of production 23 capacity for Navy air defense and anti-ship missiles; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00126 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 127 •HR 1 RH (51) $103,300,000 for expansion of depot level 1 maintenance facility for Navy long-range air and 2 missile defense interceptors; 3 (52) $18,000,000 for creation of domestic 4 source for guidance section of Navy short-range air 5 defense missiles; 6 (53) $65,000,000 for integration of Army me- 7 dium-range air and missile defense interceptor with 8 Navy ships; 9 (54) $176,100,000 for production of Army 10 long-range movable missile defense radar; 11 (55) $100,000,000 for accelerated fielding of 12 Army short-range gun-based air and missile defense 13 system; 14 (56) $40,000,000 for development of low-cost 15 alternatives to air and missile defense interceptors; 16 (57) $50,000,000 for acceleration of Army 17 next-generation shoulder-fired air defense system; 18 (58) $91,000,000 for production of Army next- 19 generation shoulder-fired air defense system; 20 (59) $500,000,000 for development, production, 21 and integration of counter-unmanned aerial systems 22 programs; 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00127 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 128 •HR 1 RH (60) $350,000,000 for development, production, 1 and integration of non-kinetic counter-unmanned 2 aerial systems programs; 3 (61) $250,000,000 for development, production, 4 and integration of land-based counter-unmanned 5 aerial systems programs; 6 (62) $200,000,000 for development, production, 7 and integration of ship-based counter-unmanned aer- 8 ial systems programs; and 9 (63) $400,000,000 for acceleration of 10 hypersonic strike programs. 11 (b) APPROPRIATIONS.—In addition to amounts other- 12 wise available, there is appropriated to the Secretary of 13 Defense, out of any money in the Treasury not otherwise 14 appropriated, to remain available until September 30, 15 2029, $500,000,000 to the ‘‘Department of Defense Cred- 16 it Program Account’’ to carry out the capital assistance 17 program, including loans, loan guarantees, and technical 18 assistance, established under section 149(e) of title 10, 19 United States Code, for the development of reliable 20 sources of critical minerals: Provided, That— 21 (1) such amounts are available to subsidize 22 gross obligations for the principal amount of direct 23 loans, and total loan principal, any part of which is 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00128 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 129 •HR 1 RH to be guaranteed, not to exceed $100,000,000,000; 1 and 2 (2) such amounts are available to cover all costs 3 and expenditures as provided under section 4 149(e)(5)(B) of title 10, United States Code. 5 SEC. 20005. ENHANCEMENT OF DEPARTMENT OF DEFENSE 6 RESOURCES FOR SCALING LOW-COST WEAP- 7 ONS INTO PRODUCTION. 8 (a) APPROPRIATIONS.—In addition to amounts other- 9 wise available, there are appropriated to the Secretary of 10 Defense for fiscal year 2025, out of any money in the 11 Treasury not otherwise appropriated, to remain available 12 until September 30, 2029— 13 (1) $25,000,000 for the Office of Strategic 14 Capital Global Technology Scout program; 15 (2) $1,100,000,000 for the expansion of the 16 small unmanned aerial system industrial base; 17 (3) $400,000,000 for the development and de- 18 ployment of the Joint Fires Network and associated 19 joint battle management capabilities; 20 (4) $400,000,000 for the expansion of advanced 21 command-and-control tools to combatant commands 22 and military departments; 23 (5) $100,000,000 for the development of shared 24 secure facilities for the defense industrial base; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00129 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 130 •HR 1 RH (6) $50,000,000 for the creation of additional 1 Defense Innovation Unit OnRamp Hubs; 2 (7) $250,000,000 for the acceleration of Stra- 3 tegic Capabilities Office programs; 4 (8) $650,000,000 for the expansion of Mission 5 Capabilities office joint prototyping and experimen- 6 tation activities for military innovation; 7 (9) $500,000,000 for the accelerated develop- 8 ment and integration of advanced 5G/6G tech- 9 nologies for military use; 10 (10) $25,000,000 for testing of simultaneous 11 transmit and receive technology for military spec- 12 trum agility; 13 (11) $50,000,000 for the development, procure- 14 ment, and integration of high-altitude stratospheric 15 balloons for military use; 16 (12) $120,000,000 for the development, pro- 17 curement, and integration of long-endurance un- 18 manned aerial systems for surveillance; 19 (13) $40,000,000 for the development, procure- 20 ment, and integration of alternative positioning and 21 navigation technology to enable military operations 22 in contested electromagnetic environments; 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00130 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 131 •HR 1 RH (14) $750,000,000 for the acceleration of inno- 1 vative military logistics and energy capability devel- 2 opment and deployment; 3 (15) $120,000,000 for the acceleration of devel- 4 opment of small modular nuclear reactors for mili- 5 tary use; 6 (16) $1,000,000,000 for the expansion of pro- 7 grams to accelerate the procurement and fielding of 8 innovative technologies; 9 (17) $90,000,000 for the development of reus- 10 able hypersonic technology for military strikes and 11 intelligence; 12 (18) $2,000,000,000 for the expansion of De- 13 fense Innovation Unit scaling of commercial tech- 14 nology for military use; 15 (19) $500,000,000 to prevent delays in delivery 16 of attritable autonomous military capabilities; 17 (20) $1,000,000,000 for the development, pro- 18 curement, and integration of low-cost cruise missiles; 19 (21) $500,000,000 for the development, pro- 20 curement, and integration of exportable low-cost 21 cruise missiles; 22 (22) $124,000,000 for improvements to Test 23 Resource Management Center artificial intelligence 24 capabilities; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00131 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 132 •HR 1 RH (23) $145,000,000 for the development of arti- 1 ficial intelligence to enable one-way attack un- 2 manned aerial systems and naval systems; 3 (24) $250,000,000 for the development of the 4 Test Resource Management Center digital test envi- 5 ronment; 6 (25) $250,000,000 for the advancement of the 7 artificial intelligence ecosystem; 8 (26) $250,000,000 for the expansion of Cyber 9 Command artificial intelligence lines of effort; 10 (27) $250,000,000 for the acceleration of the 11 Quantum Benchmarking Initiative; 12 (28) $500,000,000 for the expansion and accel- 13 eration of qualification activities and technical data 14 management to enhance competition in defense in- 15 dustrial base; 16 (29) $400,000,000 for the expansion of the de- 17 fense manufacturing technology program; and 18 (30) $685,000,000 for military cryptographic 19 modernization activities. 20 (b) APPROPRIATIONS.—In addition to amounts other- 21 wise available, there are appropriated to the Secretary of 22 Defense, out of any money in the Treasury not otherwise 23 appropriated, to remain available until September 30, 24 2029, $1,000,000,000 to the ‘‘Department of Defense 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00132 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 133 •HR 1 RH Credit Program Account’’ to carry out the capital assist- 1 ance program, including loans, loan guarantees, and tech- 2 nical assistance, established under section 149(e) of title 3 10, United States Code: Provided, That— 4 (1) such amounts are available to subsidize 5 gross obligations for the principal amount of direct 6 loans, and total loan principal, any part of which is 7 to be guaranteed, not to exceed $100,000,000,000; 8 and 9 (2) such amounts are available to cover all costs 10 and expenditures as provided under section 11 149(e)(5)(B) of title 10, United States Code. 12 SEC. 20006. ENHANCEMENT OF DEPARTMENT OF DEFENSE 13 RESOURCES FOR IMPROVING THE EFFI- 14 CIENCY AND CYBERSECURITY OF THE DE- 15 PARTMENT OF DEFENSE. 16 In addition to amounts otherwise available, there are 17 appropriated to the Secretary of Defense for fiscal year 18 2025, out of any money in the Treasury not otherwise ap- 19 propriated, to remain available until September 30, 20 2029— 21 (1) $150,000,000 for business systems replace- 22 ment to accelerate the audits of the financial state- 23 ments of the Department of Defense pursuant to 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00133 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 134 •HR 1 RH chapter 9A and section 2222 of title 10, United 1 States Code; 2 (2) $200,000,000 for the deployment of auto- 3 mation and artificial intelligence to accelerate the 4 audits of the financial statements of the Department 5 of Defense pursuant to chapter 9A and section 2222 6 of title 10, United States Code; 7 (3) $10,000,000 for the improvement of the 8 budgetary and programmatic infrastructure of the 9 Office of the Secretary of Defense; and 10 (4) $20,000,000 for defense cybersecurity pro- 11 grams of the Defense Advanced Research Projects 12 Agency. 13 SEC. 20007. ENHANCEMENT OF DEPARTMENT OF DEFENSE 14 RESOURCES FOR AIR SUPERIORITY. 15 In addition to amounts otherwise available, there are 16 appropriated to the Secretary of Defense for fiscal year 17 2025, out of any money in the Treasury not otherwise ap- 18 propriated, to remain available until September 30, 19 2029— 20 (1) $3,150,000,000 to increase F–15EX air- 21 craft production; 22 (2) $361,220,000 to prevent the retirement of 23 F–22 aircraft; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00134 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 135 •HR 1 RH (3) $127,460,000 to prevent the retirement of 1 F–15E aircraft; 2 (4) $50,000,000 to accelerate installation of F– 3 16 electronic warfare capability; 4 (5) $116,000,000 for C–17A Mobility Aircraft 5 Connectivity; 6 (6) $84,000,000 for KC–135 Mobility Aircraft 7 Connectivity; 8 (7) $440,000,000 to increase C–130J produc- 9 tion; 10 (8) $474,000,000 to increase EA–37B produc- 11 tion; 12 (9) $300,000,000 for Air Force classified pro- 13 grams; 14 (10) $678,000,000 to accelerate the Collabo- 15 rative Combat Aircraft program; 16 (11) $400,000,000 to accelerate production of 17 the F–47 aircraft; 18 (12) $230,000,000 for Navy classified pro- 19 grams; 20 (13) $500,000,000 accelerate the FA/XX air- 21 craft; 22 (14) $100,000,000 for production of Advanced 23 Aerial Sensors; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00135 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 136 •HR 1 RH (15) $160,000,000 to accelerate V–22 nacelle 1 improvement; and 2 (16) $100,000,000 to accelerate production of 3 MQ–25 aircraft. 4 SEC. 20008. ENHANCEMENT OF RESOURCES FOR NUCLEAR 5 FORCES. 6 (a) DOD APPROPRIATIONS.—In addition to amounts 7 otherwise available, there are appropriated to the Sec- 8 retary of Defense for fiscal year 2025, out of any money 9 in the Treasury not otherwise appropriated, to remain 10 available until September 30, 2029— 11 (1) $1,500,000,000 for risk reduction activities 12 for the Sentinel intercontinental ballistic missile pro- 13 gram; 14 (2) $4,500,000,000 for acceleration of the B– 15 21 long-range bomber aircraft; 16 (3) $500,000,000 for improvements to the Min- 17 uteman III intercontinental ballistic missile system; 18 (4) $100,000,000 for capability enhancements 19 to intercontinental ballistic missile reentry vehicles; 20 (5) $148,000,000 for the expansion of D5 mis- 21 sile motor production; 22 (6) $400,000,000 to accelerate the development 23 of Trident D5LE2 submarine-launched ballistic mis- 24 siles; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00136 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 137 •HR 1 RH (7) $2,000,000,000 to accelerate the develop- 1 ment, procurement, and integration of the nuclear- 2 armed sea-launched cruise missile; 3 (8) $62,000,000 to convert Ohio-class sub- 4 marine tubes to accept additional missiles; 5 (9) $22,000,000 to enhance nuclear deterrence 6 through classified programs; 7 (10) $168,000,000 to accelerate the production 8 of the Survivable Airborne Operations Center pro- 9 gram; 10 (11) $65,000,000 to accelerate the moderniza- 11 tion of nuclear command, control, and communica- 12 tions; and 13 (12) $210,300,000 for the increased production 14 of MH–139 helicopters. 15 (b) NNSA APPROPRIATIONS.—In addition to 16 amounts otherwise available, there are appropriated to the 17 Administrator of the National Nuclear Security Adminis- 18 tration for fiscal year 2025, out of any money in the 19 Treasury not otherwise appropriated, to remain available 20 until September 30, 2029— 21 (1) $200,000,000 to perform National Nuclear 22 Security Administration Phase 1 studies pursuant to 23 section 3211 of the National Nuclear Security Ad- 24 ministration Act (50 U.S.C. 2401); 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00137 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 138 •HR 1 RH (2) $540,000,000 to address deferred mainte- 1 nance and repair needs of the National Nuclear Se- 2 curity Administration pursuant to section 3211 of 3 the National Nuclear Security Administration Act 4 (50 U.S.C. 2401); 5 (3) $1,000,000,000 to accelerate the construc- 6 tion of National Nuclear Security Administration fa- 7 cilities pursuant to section 3211 of the National Nu- 8 clear Security Administration Act (50 U.S.C. 2401); 9 (4) $400,000,000 to accelerate the develop- 10 ment, procurement, and integration of the warhead 11 for the nuclear-armed sea-launched cruise missile 12 pursuant to section 3211 of the National Nuclear 13 Security Administration Act (50 U.S.C. 2401); 14 (5) $500,000,000 to accelerate primary capa- 15 bility modernization pursuant to section 3211 of the 16 National Nuclear Security Administration Act (50 17 U.S.C. 2401); 18 (6) $500,000,000 to accelerate secondary capa- 19 bility modernization pursuant to section 3211 of the 20 National Nuclear Security Administration Act (50 21 U.S.C. 2401); and 22 (7) $100,000,000 to accelerate domestic ura- 23 nium enrichment centrifuge deployment for defense 24 purposes pursuant to section 3211 of the National 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00138 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 139 •HR 1 RH Nuclear Security Administration Act (50 U.S.C. 1 2401). 2 SEC. 20009. ENHANCEMENT OF DEPARTMENT OF DEFENSE 3 RESOURCES TO IMPROVE CAPABILITIES OF 4 UNITED STATES INDO-PACIFIC COMMAND. 5 In addition to amounts otherwise available, there are 6 appropriated to the Secretary of Defense for fiscal year 7 2025, out of any money in the Treasury not otherwise ap- 8 propriated, to remain available until September 30, 9 2029— 10 (1) $365,000,000 for Army exercises and oper- 11 ations in the Western Pacific area of operations; 12 (2) $53,000,000 for Special Operations Com- 13 mand exercises and operations in the Western Pa- 14 cific area of operations; 15 (3) $47,000,000 for Marine Corps exercises and 16 operations in Western Pacific area of operations; 17 (4) $90,000,000 for Air Force exercises and op- 18 erations in Western Pacific area of operations; 19 (5) $532,600,000 for the Pacific Air Force bi- 20 ennial large-scale exercise; 21 (6) $19,000,000 for the development of naval 22 small craft capabilities; 23 (7) $35,000,000 for military additive manufac- 24 turing capabilities in the United States Indo-Pacific 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00139 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 140 •HR 1 RH Command area of operations west of the inter- 1 national dateline; 2 (8) $450,000,000 for the development of air- 3 fields within the area of operations of United States 4 Indo-Pacific Command; 5 (9) $1,100,000,000 for development of infra- 6 structure within the area of operations of United 7 States Indo-Pacific Command; 8 (10) $124,000,000 for mission networks for 9 United States Indo-Pacific Command; 10 (11) $100,000,000 for Air Force regionally 11 based cluster pre-position base kits; 12 (12) $25,000,000 to explore the revitalization 13 of existing Arctic naval infrastructure; 14 (13) $90,000,000 for the accelerated develop- 15 ment of non-kinetic capabilities; 16 (14) $20,000,000 for military exercises with 17 Taiwan; 18 (15) $23,000,000 for anti-submarine sonar ar- 19 rays; 20 (16) $30,000,000 for intelligence, surveillance, 21 and reconnaissance capabilities for United States Af- 22 rica Command; 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00140 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 141 •HR 1 RH (17) $30,000,000 for intelligence, surveillance, 1 and reconnaissance capabilities for United States 2 Indo-Pacific Command; 3 (18) $400,000,000 for the development, coordi- 4 nation, and deployment of economic competition ef- 5 fects within the Department of Defense; 6 (19) $10,000,000 for the expansion of Depart- 7 ment of Defense workforce for economic competition; 8 (20) $1,000,000,000 for offensive cyber oper- 9 ations; 10 (21) $500,000,000 for the Joint Training 11 Team; 12 (22) $300,000,000 for the procurement of mesh 13 network communications capabilities for Special Op- 14 erations Command Pacific; 15 (23) $850,000,000 for activities to protect 16 United States interests and deter Chinese Com- 17 munist Party aggression through provision of mili- 18 tary support and assistance to the military, central 19 government security forces, and central government 20 security agencies of Taiwan; 21 (24) $200,000,000 for acceleration of Guam 22 Defense System program; 23 (25) $4,029,000,000 for classified military 24 space superiority programs; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00141 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 142 •HR 1 RH (26) $68,000,000 for Space Force facilities im- 1 provements; 2 (27) $100,000,000 for ground moving target 3 indicator military satellites; and 4 (28) $528,000,000 for DARC and 5 SILENTBARKER military space situational aware- 6 ness programs. 7 SEC. 20010. ENHANCEMENT OF DEPARTMENT OF DEFENSE 8 RESOURCES FOR IMPROVING THE READI- 9 NESS OF THE ARMED FORCES. 10 In addition to amounts otherwise available, there are 11 appropriated to the Secretary of Defense for fiscal year 12 2025, out of any money in the Treasury not otherwise ap- 13 propriated, to remain available until September 30, 14 2029— 15 (1) $1,400,000,000 for a pilot program on 16 OPN-8 maritime spares and repair rotable pool; 17 (2) $700,000,000 for a pilot program on OPN- 18 8 maritime spares and repair rotable pool for am- 19 phibious ships; 20 (3) $2,118,000,000 for readiness packages to 21 keep Air Force aircraft mission capable; 22 (4) $1,500,000,000 for Army depot moderniza- 23 tion and capacity enhancement; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00142 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 143 •HR 1 RH (5) $2,000,000,000 for Navy depot and ship- 1 yard modernization and capacity enhancement; 2 (6) $250,000,000 for Air Force depot mod- 3 ernization and capacity enhancement; 4 (7) $1,391,000,000 for the enhancement of 5 Special Operations Command equipment and readi- 6 ness; 7 (8) $500,000,000 for National Guard unit 8 readiness; 9 (9) $400,000,000 for Marine Corps readiness 10 and capabilities; 11 (10) $20,000,000 for upgrades to Marine Corps 12 utility helicopters; 13 (11) $310,000,000 for next-generation vertical 14 lift, assault, and intra-theater aeromedical evacu- 15 ation aircraft; 16 (12) $75,000,000 for the procurement of anti- 17 lock braking systems for Army wheeled transport ve- 18 hicles; 19 (13) $230,000,000 for the procurement of 20 Army wheeled combat vehicles; 21 (14) $63,000,000 for the development of ad- 22 vanced rotary-wing engines; 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00143 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 144 •HR 1 RH (15) $241,000,000 for the development, pro- 1 curement, and integration of Marine Corps amphib- 2 ious vehicles; 3 (16) $250,000,000 for the procurement of 4 Army tracked combat transport vehicles; and 5 (17) $98,000,000 for the enhancement of Army 6 light rotary-wing capabilities. 7 SEC. 20011. IMPROVING DEPARTMENT OF DEFENSE BOR- 8 DER SUPPORT AND COUNTER-DRUG MIS- 9 SIONS. 10 In addition to amounts otherwise available, there are 11 appropriated to the Secretary of Defense for fiscal year 12 2025, out of any money in the Treasury not otherwise ap- 13 propriated, to remain available until September 30, 2029, 14 $5,000,000,000 for activities in support of border oper- 15 ations, including deployment of military personnel, oper- 16 ations and maintenance, counter-narcotics and counter- 17 transnational criminal organization mission support, the 18 operation of and construction in national defense areas, 19 the temporary detention of migrants on Department of 20 Defense installations, and the repatriation of persons in 21 support of law enforcement activities, pursuant to sections 22 272, 277, 284, and 2672 of title 10, United States Code. 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00144 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 145 •HR 1 RH SEC. 20012. ENHANCEMENT OF MILITARY INTELLIGENCE 1 PROGRAMS. 2 In addition to amounts otherwise available, there are 3 appropriated to the Secretary of Defense for fiscal year 4 2025, out of any money in the Treasury not otherwise ap- 5 propriated, to remain available until September 30, 2029, 6 $2,000,000,000 for the enhancement of military intel- 7 ligence programs. 8 SEC. 20013. DEPARTMENT OF DEFENSE OVERSIGHT. 9 (a) OFFICE OF THE SECRETARY OF DEFENSE.—In 10 addition to amounts otherwise available, there is appro- 11 priated to the Inspector General of the Department of De- 12 fense for fiscal year 2025, out of any money in the Treas- 13 ury not otherwise appropriated, $10,000,000, to remain 14 available through September 30, 2029, to carry out this 15 section. 16 (b) OVERSIGHT OF PROGRAMS.—The Inspector Gen- 17 eral shall monitor Department of Defense activities for 18 which funding is appropriated in this title, including— 19 (1) programs with mutual technological depend- 20 encies; 21 (2) programs with related data management 22 and data ownership considerations; 23 (3) programs particularly vulnerable to supply 24 chain disruptions and long lead time components; 25 and 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00145 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 146 •HR 1 RH (4) programs involving classified matters. 1 (c) CLASSIFIED MATTERS.—Not later than 30 days 2 after the date of the enactment of this title, the Chairs 3 of the Committees on Armed Services of the Senate and 4 House of Representatives shall jointly transmit to the De- 5 partment of Defense a classified memorandum regarding 6 amounts made available in this title related to classified 7 matters. 8 SEC. 20014. MILITARY CONSTRUCTION PROJECTS AUTHOR- 9 IZED. 10 (a) AUTHORIZATION OF APPROPRIATIONS.—Funds 11 are hereby authorized to be appropriated for military con- 12 struction, land acquisition, and military family housing 13 functions of each military department (as defined in sec- 14 tion 101(a) of title 10, United States Code) as specified 15 in this title. 16 (b) SPENDING PLAN.—Not later than 30 days after 17 the date of the enactment of this title, the Secretary of 18 each military department shall submit to the congressional 19 defense committees (as defined in section 101(a) of title 20 10, United States Code) a detailed spending plan by 21 project for all funds made available by this title to be ex- 22 pended on military construction projects. 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00146 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 147 •HR 1 RH SEC. 20015. PLAN REQUIRED. 1 (a) IN GENERAL.—Not later than 45 days after the 2 date of the enactment of this title, the Secretary of De- 3 fense shall submit to the Committees on Armed Services 4 of the Senate and the House of Representatives a spend- 5 ing, expenditure, or operating plan for amounts made 6 available pursuant to this title. Such plan shall include the 7 same level of detail as required for the report submitted 8 under section 8007 of division A of the Further Consoli- 9 dated Appropriations Act, 2024 (Public Law 118–47; 138 10 Stat. 482). 11 (b) EXPENDITURE REPORT.—Not later than one 12 year after the date of enactment of this title, and annually 13 thereafter, the Secretary shall submit to the Committees 14 on Armed Services of the Senate and the House of Rep- 15 resentative a report that includes a description of any ex- 16 penditures made pursuant to the plan required under sub- 17 section (a). 18 SEC. 20016. LIMITATION ON AVAILABILITY OF FUNDS. 19 The funds made available under this title may not 20 be used to enter into any agreement under which any pay- 21 ment of such funds could be outlaid or disbursed after 22 September 30, 2034. 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00147 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 148 •HR 1 RH TITLE III—COMMITTEE ON 1 EDUCATION AND WORKFORCE 2 Subtitle A—Student Eligibility 3 SEC. 30001. STUDENT ELIGIBILITY. 4 (a) IN GENERAL.—Section 484(a)(5) of the Higher 5 Education Act of 1965 (20 U.S.C. 1091(a)(5)) is amended 6 to read as follows: 7 ‘‘(5) be— 8 ‘‘(A) a citizen or national of the United 9 States; 10 ‘‘(B) an alien who is lawfully admitted for 11 permanent residence under the Immigration 12 and Nationality Act (8 U.S.C. 1101 et seq.); 13 ‘‘(C) an alien who— 14 ‘‘(i) is a citizen or national of the Re- 15 public of Cuba; 16 ‘‘(ii) is the beneficiary of an approved 17 petition under section 203(a) of the Immi- 18 gration and Nationality Act (8 U.S.C. 19 1153(a)); 20 ‘‘(iii) meets all eligibility requirements 21 for an immigrant visa but for whom such 22 a visa is not immediately available; 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00148 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 149 •HR 1 RH ‘‘(iv) is not otherwise inadmissible 1 under section 212(a) of such Act (8 U.S.C. 2 8 U.S.C. 1182(a)); and 3 ‘‘(v) is physically present in the 4 United States pursuant to a grant of pa- 5 role in furtherance of the commitment of 6 the United States to the minimum level of 7 annual legal migration of Cuban nationals 8 to the United States specified in the U.S.- 9 Cuba Joint Communique´ on Migration, 10 done at New York September 9, 1994, and 11 reaffirmed in the Cuba-United States: 12 Joint Statement on Normalization of Mi- 13 gration, Building on the Agreement of 14 September 9, 1994, done at New York 15 May 2, 1995; 16 ‘‘(D) an alien described in section 401(a) 17 of the Additional Ukraine Supplemental Appro- 18 priations Act, 2022 (Public Law 117-128; 8 19 U.S.C. 1101 note); 20 ‘‘(E) an alien described in section 2502(a) 21 of the Afghanistan Supplemental Appropria- 22 tions Act, 2022 (division C of Public Law 117- 23 43; 8 U.S.C. 1101 note); or 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00149 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 150 •HR 1 RH ‘‘(F) an individual who lawfully resides in 1 the United States in accordance with a Com- 2 pact of Free Association referred to in section 3 402(b)(2)(G) of the Personal Responsibility and 4 Work Opportunity Reconciliation Act of 1996 5 (8 U.S.C. 1612(b)(2)(G)); and’’. 6 (b) EFFECTIVE DATE AND APPLICATION.—The 7 amendment made by subsection (a) shall take effect on 8 July 1, 2025, and shall apply with respect to award year 9 2025–2026 and each subsequent award year, as deter- 10 mined under the Higher Education Act of 1965. 11 SEC. 30002. AMOUNT OF NEED; COST OF ATTENDANCE; ME- 12 DIAN COST OF COLLEGE. 13 (a) AMOUNT OF NEED.—Section 471 of the Higher 14 Education Act of 1965 (20 U.S.C. 1087kk) is amended 15 by amending paragraph (1) to read as follows: 16 ‘‘(1)(A) for award year 2025–2026, the cost of 17 attendance of such student; or 18 ‘‘(B) for award year 2026–2027, and each sub- 19 sequent award year, the median cost of college of the 20 program of study of such student, minus’’. 21 (b) COST OF ATTENDANCE OF A PROGRAM OF 22 STUDY.— 23 (1) DETERMINATION OF COST OF ATTENDANCE 24 OF A PROGRAM OF STUDY.— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00150 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 151 •HR 1 RH (A) IN GENERAL.—Section 472(a) of the 1 Higher Education Act of 1965 (20 U.S.C. 2 1087ll(a)) is amended— 3 (i) in paragraph (1), by striking ‘‘car- 4 rying the same academic workload’’ and in- 5 serting ‘‘enrolled in the same program of 6 study’’; 7 (ii) in paragraph (2), by striking 8 ‘‘same course of study’’ and inserting 9 ‘‘same program of study’’; and 10 (iii) in paragraph (14), by striking 11 ‘‘program’’ and inserting ‘‘program of 12 study’’. 13 (B) EFFECTIVE DATE.—The amendments 14 made by subparagraph (A) shall take effect on 15 July 1, 2026, and shall apply with respect to 16 award year 2026–2027 and each subsequent 17 award year, as determined under the Higher 18 Education Act of 1965. 19 (2) DISCLOSURE.—Section 472(c) of the High- 20 er Education Act of 1965 (20 U.S.C. 1087ll(c)) is 21 amended— 22 (A) by inserting ‘‘of each program of study 23 at the institution’’ after ‘‘cost of attendance’’; 24 and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00151 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 152 •HR 1 RH (B) by striking ‘‘of the institution’’ and in- 1 serting ‘‘of such programs of study at the insti- 2 tution’’. 3 (c) DETERMINATION OF MEDIAN COST OF COL- 4 LEGE.—Part F of title IV of the Higher Education Act 5 of 1965 (20 U.S.C. 1087kk) is amended by inserting after 6 section 472 (as so amended), the following: 7 ‘‘SEC. 472A. DETERMINATION OF MEDIAN COST OF COL- 8 LEGE. 9 ‘‘(a) IN GENERAL.—For the purpose of this title, the 10 term ‘median cost of college’, when used with respect to 11 a program of study, offered by one or more institutions 12 of higher education for an award year, means the median 13 of the cost of attendance of the program of study (as de- 14 termined under section 472) across all institutions of high- 15 er education offering such a program of study for the pre- 16 ceding award year. 17 ‘‘(b) PROGRAM OF STUDY DEFINED.—In this section 18 and section 472, and part D: 19 ‘‘(1) IN GENERAL.—The term ‘program of 20 study’— 21 ‘‘(A) means an eligible program at an in- 22 stitution of higher education that is classified 23 by a combination of— 24 ‘‘(i) one or more CIP codes; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00152 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 153 •HR 1 RH ‘‘(ii) one credential level, determined 1 by the credential awarded upon completion 2 of the program; and 3 ‘‘(B) does not include a program of study 4 abroad. 5 ‘‘(2) CIP CODE.—The term ‘CIP code’ means 6 the six-digit taxonomic identification code assigned 7 by an institution of higher education to a specific 8 program of study at the institution, determined by 9 the institution of higher education in accordance 10 with the Classification of Instructional Programs 11 published by the National Center for Education Sta- 12 tistics. 13 ‘‘(3) CREDENTIAL LEVEL.— 14 ‘‘(A) IN GENERAL.—The term ‘credential 15 level’ means the level of the degree or other cre- 16 dential awarded by an institution of higher edu- 17 cation to students who complete a program of 18 study of the institution. Each degree or other 19 credential awarded by an institution shall be 20 categorized by the institution as either under- 21 graduate credential level or graduate credential 22 level. 23 ‘‘(B) UNDERGRADUATE CREDENTIAL.— 24 When used with respect to a credential or cre- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00153 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 154 •HR 1 RH dential level, the term ‘undergraduate creden- 1 tial’ includes credentials such as an under- 2 graduate certificate, an associate degree, a 3 bachelor’s degree, and a post-baccalaureate cer- 4 tificate (including the coursework specified in 5 paragraphs (3)(B) and (4)(B) of section 6 484(b)). 7 ‘‘(C) GRADUATE CREDENTIAL.—When 8 used with respect to a credential or credential 9 level, the term ‘graduate credential’ includes 10 credentials such as a master’s degree, a doc- 11 toral degree, a professional degree, and a post- 12 graduate certificate.’’. 13 (d) EXEMPTION OF CERTAIN ASSETS.— 14 (1) IN GENERAL.—Section 480(f)(2) of the 15 Higher Education Act of 1965 (20 U.S.C. 16 1087vv(f)(2)) is amended— 17 (A) by striking ‘‘net value of the’’ and in- 18 serting the following: ‘‘net value of— 19 ‘‘(A) the’’; 20 (B) by striking the period at the end and 21 inserting a semicolon; and 22 (C) by adding at the end the following: 23 ‘‘(B) a family farm on which the family re- 24 sides; or 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00154 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 155 •HR 1 RH ‘‘(C) a small business with not more than 1 100 full-time or full-time equivalent employees 2 (or any part of such a small business) that is 3 owned and controlled by the family.’’. 4 (2) EFFECTIVE DATE.—The amendments made 5 by paragraph (1) shall take effect on July 1, 2026, 6 and shall apply with respect to award year 2026– 7 2027 and each subsequent award year, as deter- 8 mined under the Higher Education Act of 1965. 9 Subtitle B—Loan Limits 10 SEC. 30011. LOAN LIMITS. 11 (a) TERMINATIONS OF AND RESTRICTIONS ON LOAN 12 AUTHORITY.— 13 (1) TERMINATION OF AUTHORITY TO MAKE 14 SUBSIDIZED LOANS TO UNDERGRADUATE STU- 15 DENTS.—Section 455(a)(3) of the Higher Education 16 Act of 1965 (20 U.S.C. 1087e(a)(3)) is amended by 17 adding at the end the following: 18 ‘‘(C) TERMINATION OF AUTHORITY TO 19 MAKE SUBSIDIZED LOANS TO UNDERGRADUATE 20 STUDENTS.—Notwithstanding any provision of 21 this part or part B, except as provided in para- 22 graph (4), for any period of instruction begin- 23 ning on or after July 1, 2026— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00155 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 156 •HR 1 RH ‘‘(i) an undergraduate student shall 1 not be eligible to receive a Federal Direct 2 Stafford loan under this part; and 3 ‘‘(ii) the maximum annual amount of 4 Federal Direct Unsubsidized Stafford 5 loans such a student may borrow in any 6 academic year (as defined in section 7 481(a)(2)) or its equivalent shall be the 8 maximum annual amount for such student 9 determined under paragraph (5)).’’. 10 (2) TERMINATION OF AUTHORITY TO MAKE 11 FEDERAL DIRECT PLUS LOANS TO ANY STUDENT 12 BORROWER.—Section 455(a)(3) of the Higher Edu- 13 cation Act of 1965 (20 U.S.C. 1087e(a)(3)) is fur- 14 ther amended by adding at the end the following: 15 ‘‘(D) TERMINATION OF AUTHORITY TO 16 MAKE FEDERAL DIRECT PLUS LOANS TO ANY 17 STUDENT BORROWER.—Notwithstanding any 18 provision of this part or part B, except as pro- 19 vided in paragraph (4), for any period of in- 20 struction beginning on or after July 1, 2026, a 21 graduate student or professional student shall 22 not be eligible to receive a Federal Direct 23 PLUS Loan under this part.’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00156 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 157 •HR 1 RH (3) RESTRICTION ON AUTHORITY TO MAKE 1 FEDERAL DIRECT PLUS LOANS TO ANY PARENT BOR- 2 ROWER.—Section 455(a)(3) of the Higher Education 3 Act of 1965 (20 U.S.C. 1087e(a)(3)) is further 4 amended by adding at the end the following: 5 ‘‘(E) RESTRICTION ON AUTHORITY TO 6 MAKE FEDERAL DIRECT PLUS LOANS TO ANY 7 PARENT BORROWER.— 8 ‘‘(i) IN GENERAL.—Notwithstanding 9 any provision of this part or part B, except 10 as provided in clause (ii) and paragraph 11 (4), for any period of instruction beginning 12 on or after July 1, 2026, a parent, on be- 13 half of a dependent student, shall not be 14 eligible to receive a Federal Direct PLUS 15 Loan under this part. 16 ‘‘(ii) EXCEPTION.—A parent may re- 17 ceive a Federal Direct PLUS Loan under 18 this part, on behalf of a dependent stu- 19 dent, in any academic year (as defined in 20 section 481(a)(2)) or its equivalent if— 21 ‘‘(I) such student borrows the 22 maximum annual amount of Federal 23 Direct Unsubsidized Stafford loans 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00157 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 158 •HR 1 RH such student may borrow in such aca- 1 demic year; and 2 ‘‘(II) such maximum annual 3 amount is less than the cost of at- 4 tendance of the program of study of 5 such student.’’. 6 (4) CONFORMING AMENDMENTS.—Section 7 455(a)(3) of the Higher Education Act of 1965 (20 8 U.S.C. 1087e(a)(3)) is further amended— 9 (A) in the paragraph heading, by striking 10 ‘‘TERMINATION OF AUTHORITY TO MAKE IN- 11 TEREST SUBSIDIZED LOANS TO GRADUATE AND 12 PROFESSIONAL STUDENTS’’ and inserting 13 ‘‘TERMINATIONS OF AND RESTRICTIONS ON 14 LOAN AUTHORITY’’; 15 (B) in subparagraph (A)— 16 (i) in the heading, by striking ‘‘IN 17 GENERAL’’ and inserting ‘‘TERMINATION 18 OF AUTHORITY TO MAKE SUBSIDIZED 19 LOANS TO GRADUATE AND PROFESSIONAL 20 STUDENTS’’; 21 (ii) in the matter preceding clause (i), 22 by striking ‘‘beginning on or after July 1, 23 2012’’; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00158 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 159 •HR 1 RH (iii) in clause (i), by striking ‘‘a grad- 1 uate’’ and inserting ‘‘beginning on or after 2 July 1, 2012, a graduate’’; and 3 (iv) in clause (ii), by striking ‘‘the 4 maximum annual amount of Federal’’ and 5 inserting ‘‘beginning on or after July 1, 6 2012, and ending June 30, 2026, the max- 7 imum annual amount of Federal’’; and 8 (C) in subparagraph (B)— 9 (i) in the heading, by striking ‘‘EX- 10 CEPTION’’ and inserting ‘‘EXCEPTION FOR 11 SUBSIDIZED LOANS TO INDIVIDUALS EN- 12 ROLLED IN CERTAIN COURSE WORK’’. 13 (ii) by striking ‘‘Subparagraph (A)’’ 14 and inserting ‘‘For any period of instruc- 15 tion beginning on or after July 1, 2012, 16 and ending June 30, 2026, subparagraph 17 (A)’’. 18 (b) INTERIM RULES FOR ENROLLED BORROWERS.— 19 Section 455(a) of the Higher Education Act of 1965 (20 20 U.S.C. 1087e(a)) is amended by adding at the end the 21 following: 22 ‘‘(4) INTERIM EXCEPTION FOR CERTAIN STU- 23 DENTS.— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00159 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 160 •HR 1 RH ‘‘(A) APPLICATION OF PRIOR LIMITS.— 1 Subparagraphs (C), (D), and (E) of paragraph 2 (3), and paragraphs (5) and (6), shall not 3 apply, during the expected time to credential 4 described in subparagraph (B), with respect to 5 an individual who, as of June 30, 2026— 6 ‘‘(i) is enrolled in a program of study 7 at an institution of higher education; and 8 ‘‘(ii) has received a loan (or on whose 9 behalf a loan was made) under this part 10 for such program of study. 11 ‘‘(B) EXPECTED TIME TO CREDENTIAL.— 12 For purposes of this paragraph, the expected 13 time to credential of an individual shall be 14 equal to the lesser of— 15 ‘‘(i) three academic years; or 16 ‘‘(ii) the period determined by calcu- 17 lating the difference between— 18 ‘‘(I) the program length (as de- 19 fined in section 420W) for the pro- 20 gram of study in which the individual 21 is enrolled; and 22 ‘‘(II) the period of such program 23 of study that such individual has com- 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00160 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 161 •HR 1 RH pleted as of the date of the determina- 1 tion under this subparagraph.’’. 2 (c) LOAN LIMITS FOR UNSUBSIDIZED LOANS AND 3 CERTAIN FEDERAL DIRECT PLUS LOANS.— 4 (1) ANNUAL AND AGGREGATE UNSUBSIDIZED 5 LOAN LIMITS.—Section 455(a) of the Higher Edu- 6 cation Act of 1965 (20 U.S.C. 1087e(a)) is further 7 amended by adding at the end the following: 8 ‘‘(5) ANNUAL AND AGGREGATE UNSUBSIDIZED 9 LOAN LIMITS.— 10 ‘‘(A) UNDERGRADUATE STUDENTS.— 11 ‘‘(i) ANNUAL LOAN LIMITS.—Notwith- 12 standing any provision of this part or part 13 B, subject to subparagraph (C) and except 14 as provided in paragraph (4), beginning on 15 July 1, 2026, the maximum annual 16 amount of Federal Direct Unsubsidized 17 Stafford loans that an undergraduate stu- 18 dent may borrow in any academic year (as 19 defined in section 481(a)(2)) or its equiva- 20 lent shall be the difference between— 21 ‘‘(I) the amount of the median 22 cost of college of the program of study 23 in which the student is enrolled; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00161 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 162 •HR 1 RH ‘‘(II) the amount of the Federal 1 Pell Grant under section 401 awarded 2 to the student for such academic year. 3 ‘‘(ii) AGGREGATE LIMITS.—Notwith- 4 standing any provision of this part or part 5 B, except as provided in paragraph (4), be- 6 ginning on July 1, 2026, the maximum ag- 7 gregate amount of Federal Direct Unsub- 8 sidized Stafford loans that a student may 9 borrow for programs of study that award 10 an undergraduate credential upon comple- 11 tion of such a program shall be $50,000. 12 ‘‘(B) GRADUATE AND PROFESSIONAL STU- 13 DENTS.— 14 ‘‘(i) ANNUAL LIMITS.—Notwith- 15 standing any provision of this part or part 16 B, subject to subparagraph (C) and except 17 as provided in paragraph (4), beginning on 18 July 1, 2026, the maximum annual 19 amount of Federal Direct Unsubsidized 20 Stafford loans that a graduate student or 21 professional student may borrow in any 22 academic year (as defined in section 23 481(a)(2)) or its equivalent shall be the 24 amount of the median cost of college of the 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00162 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 163 •HR 1 RH program of study in which the student is 1 enrolled. 2 ‘‘(ii) AGGREGATE LIMITS.—Notwith- 3 standing any provision of this part or part 4 B, except as provided in paragraph (4), be- 5 ginning on July 1, 2026, the maximum ag- 6 gregate amount of Federal Direct Unsub- 7 sidized Stafford loans that, in addition to 8 the maximum aggregate amount described 9 in subparagraph (A)(ii)— 10 ‘‘(I) a graduate student— 11 ‘‘(aa) who is not (and has 12 not been) a professional student, 13 may borrow for programs of 14 study described in subparagraph 15 (D)(i) shall be $100,000; or 16 ‘‘(bb) who is (or has been) a 17 professional student, may borrow 18 for programs of study described 19 in subparagraph (D)(i) shall be 20 an amount equal to— 21 ‘‘(AA) $150,000, minus 22 ‘‘(BB) the amount such 23 student borrowed for pro- 24 grams of study described in 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00163 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 164 •HR 1 RH subclauses (I) and (II) of 1 subparagraph (D)(ii); and 2 ‘‘(II) a professional student— 3 ‘‘(aa) who is not (and has 4 not been) a graduate student, 5 may borrow for programs of 6 study described in subclauses (I) 7 and (II) of subparagraph (D)(ii) 8 shall be $150,000; or 9 ‘‘(bb) who is (or has been) a 10 graduate student, may borrow for 11 programs of study described in 12 subclauses (I) and (II) of sub- 13 paragraph (D)(ii) shall be an 14 amount equal to— 15 ‘‘(AA) $150,000, minus 16 ‘‘(BB) the amount such 17 student borrowed for pro- 18 grams of study described in 19 subparagraph (D)(i). 20 ‘‘(C) LESS THAN FULL-TIME ENROLL- 21 MENT.—In any case where a student is enrolled 22 in an program of study of an institution of 23 higher education on less than a full-time basis 24 during any academic year, the amount of a loan 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00164 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 165 •HR 1 RH that student may borrow for an academic year 1 (as defined in section 481(a)(2)) or its equiva- 2 lent shall be reduced in direct proportion to the 3 degree to which that student is not so enrolled 4 on a full-time basis, rounded to the nearest 5 whole percentage point, as provided in a sched- 6 ule of reductions published by the Secretary 7 computed for purposes of this paragraph. 8 ‘‘(D) DEFINITION.—For purposes of this 9 subsection: 10 ‘‘(i) GRADUATE STUDENT.—The term 11 ‘graduate student’ means a student en- 12 rolled in a program of study that awards 13 a graduate credential (other than a profes- 14 sional degree) upon completion of the pro- 15 gram. 16 ‘‘(ii) PROFESSIONAL STUDENT.—The 17 term ‘professional student’ means a stu- 18 dent enrolled in a program of study that— 19 ‘‘(I) awards a professional degree 20 upon completion of the program; or 21 ‘‘(II) provides the training de- 22 scribed in part 141 of title 14, Code 23 of Federal Regulations (or any suc- 24 cessor regulations). 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00165 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 166 •HR 1 RH ‘‘(iii) UNDERGRADUATE STUDENT.— 1 The term ‘undergraduate student’ means a 2 student enrolled in a program of study 3 that awards an undergraduate credential 4 upon completion of the program.’’. 5 (2) ANNUAL AND AGGREGATE FEDERAL DIRECT 6 PLUS LOANS LIMITS FOR PARENT BORROWERS.— 7 Section 455(a) of the Higher Education Act of 1965 8 (20 U.S.C. 1087e(a)) is further amended by adding 9 at the end the following: 10 ‘‘(6) ANNUAL AND AGGREGATE FEDERAL DI- 11 RECT PLUS LOANS LIMITS FOR PARENT BOR- 12 ROWERS.— 13 ‘‘(A) ANNUAL LIMITS.—Notwithstanding 14 any provision of this part or part B, subject to 15 paragraph (3)(E) and except as provided in 16 paragraph (4), beginning on July 1, 2026, the 17 maximum annual amount of Federal Direct 18 PLUS loans that a parent may borrow, on be- 19 half of a dependent student, in any academic 20 year (as defined in section 481(a)(2)) or its 21 equivalent shall be the amount equal to— 22 ‘‘(i) the cost of attendance of the pro- 23 gram of study of such student; minus 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00166 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 167 •HR 1 RH ‘‘(ii) the maximum annual amount of 1 Federal Direct Unsubsidized Stafford 2 loans such student may borrow in such 3 academic year. 4 ‘‘(B) AGGREGATE LIMITS.—Notwith- 5 standing any provision of this part or part B, 6 subject to paragraph (3)(E) and except as pro- 7 vided in paragraph (4), beginning on July 1, 8 2026, the maximum aggregate amount of Fed- 9 eral Direct PLUS loans that a parent may bor- 10 row shall be $50,000, without regard to the 11 number of dependent students on behalf of 12 whom such parent borrows such a loan.’’. 13 (3) LIFETIME MAXIMUM AGGREGATE AMOUNT 14 FOR ALL STUDENTS.—Section 455(a) of the Higher 15 Education Act of 1965 (20 U.S.C. 1087e(a)) is fur- 16 ther amended by adding at the end the following: 17 ‘‘(7) LIFETIME MAXIMUM AGGREGATE AMOUNT 18 FOR ALL STUDENTS.—Notwithstanding any provi- 19 sion of this part or part B, except as provided in 20 paragraph (4), beginning on July 1, 2026, the max- 21 imum aggregate amount of loans made, insured, or 22 guaranteed under this title that a student may bor- 23 row, and that a parent may borrow on behalf of 24 such student, shall be $200,000, without regard to 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00167 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 168 •HR 1 RH any amounts repaid, forgiven, canceled, or otherwise 1 discharged on any such loan.’’. 2 (4) INSTITUTIONALLY DETERMINED LIMITS.— 3 Section 455(a) of the Higher Education Act of 1965 4 (20 U.S.C. 1087e(a)) is further amended by adding 5 at the end the following: 6 ‘‘(8) INSTITUTIONALLY DETERMINED LIMITS.— 7 Notwithstanding the annual loan limits described in 8 subparagraphs (A)(i) and (B)(i) of paragraph (5) 9 and subparagraph (A) of paragraph (6), beginning 10 on July 1, 2026, an institution of higher education 11 (at the discretion of a financial aid administrator at 12 the institution) may limit the total amount of loans 13 made under this part for a program of study for an 14 academic year (as defined in section 481(a)(2)) that 15 a student may borrow, and that a parent may bor- 16 row on behalf of such student, as long as any such 17 limit is applied consistently to all students enrolled 18 in such program of study.’’. 19 Subtitle C—Loan Repayment 20 SEC. 30021. LOAN REPAYMENT. 21 (a) TRANSITION TO INCOME-BASED REPAYMENT 22 PLANS.— 23 (1) AUTHORITY TO TRANSITION TO INCOME- 24 BASED REPAYMENT PLANS.— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00168 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 169 •HR 1 RH (A) AUTHORITY TO CARRY OUT TRANSI- 1 TION.—Beginning on the date of enactment of 2 this title, the Secretary of Education shall take 3 such steps as may be necessary to apply the re- 4 payment plan under section 493C of the Higher 5 Education Act of 1965 (as amended by this 6 title) to the loans of each borrower who, on the 7 day before such date of enactment, is in a re- 8 payment status in accordance with, or an ad- 9 ministrative forbearance associated with, an in- 10 come-contingent repayment plan authorized 11 under section 455(e) of the Higher Education 12 Act of 1965 (as in effect on the day before the 13 date of enactment of this title). 14 (B) DEADLINE FOR TRANSITION.—The 15 Secretary shall complete the application of the 16 repayment plan under section 493C to the loans 17 described in paragraph (1) as soon as prac- 18 ticable, but not later than 9 months after the 19 date of enactment of this title. 20 (2) LIMITATION OF REGULATORY AUTHOR- 21 ITY.—The Secretary may not establish, promulgate, 22 issue, or modify any regulations or guidance with re- 23 spect to any income-based repayment plan under the 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00169 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 170 •HR 1 RH Higher Education Act of 1965, except that the Sec- 1 retary may— 2 (A) during the 270-day period after the 3 date of enactment of this title, issue an interim 4 final rule as necessary for the application of the 5 repayment plan under section 493C of such Act 6 of 1965 in accordance with paragraph (1); 7 (B) during the 270-day period after the 8 date of enactment of this title, issue an interim 9 final rule as necessary to implement the amend- 10 ments to such section 493C made by subsection 11 (f) of this title; and 12 (C) during the 18-month period after the 13 date of enactment of this title, issue an interim 14 final rule as necessary to implement the in- 15 come-based Repayment Assistance Program 16 under section 455(q) of such Act of 1965 (as 17 added by this title). 18 (3) WAIVER OF NEGOTIATED RULEMAKING.— 19 Any guidance or regulations issued or modified in 20 accordance with subparagraph (A) or (B) of para- 21 graph (2) shall not be subject to negotiated rule- 22 making requirements under section 492 of the High- 23 er Education Act of 1965 (20 U.S.C. 1098a). 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00170 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 171 •HR 1 RH (b) REPAYMENT PLANS.—Section 455(d) of the 1 Higher Education Act of 1965 (20 U.S.C. 1087e(d)) is 2 amended— 3 (1) in paragraph (1)— 4 (A) in the matter preceding subparagraph 5 (A), by inserting ‘‘before July 1, 2026, who has 6 not received a loan made under this part on or 7 after July 1, 2026,’’ after ‘‘made under this 8 part’’; 9 (B) by amending subparagraph (D) to 10 read as follows: 11 ‘‘(D) beginning on July 1, 2026, the in- 12 come-based Repayment Assistance Plan under 13 subsection (q), provided that— 14 ‘‘(i) the borrower is required to pay 15 each outstanding loan of the borrower 16 made under this part under such Repay- 17 ment Assistance Plan; 18 ‘‘(ii) such Plan shall not be available 19 to borrowers with an excepted loan (as de- 20 fined in paragraph (7)); and 21 ‘‘(iii) the borrower may not change 22 the borrower’s selection of the Repayment 23 Assistance Plan except in accordance with 24 paragraph (7)(C).’’; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00171 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 172 •HR 1 RH (C) in subparagraph (E)— 1 (i) by striking ‘‘that enables borrowers 2 who have a partial financial hardship to 3 make a lower monthly payment’’; and 4 (ii) by striking ‘‘a Federal Direct Con- 5 solidation Loan, if the proceeds of such 6 loan were used to discharge the liability on 7 such Federal Direct PLUS Loan or a loan 8 under section 428B made on behalf of a 9 dependent student’’ and inserting ‘‘an ex- 10 cepted Consolidation Loan (as defined in 11 section 493C(a)(2))’’; 12 (2) in paragraph (5), by amending subpara- 13 graph (B) to read as follows: 14 ‘‘(B) repay the loan pursuant to an in- 15 come-based repayment plan under subsection 16 (q) or section 493C, as applicable.’’; and 17 (3) by adding at the end the following: 18 ‘‘(6) TERMINATION AND LIMITATION OF REPAY- 19 MENT AUTHORITY.— 20 ‘‘(A) SUNSET OF REPAYMENT PLANS 21 AVAILABLE BEFORE JULY 1, 2026.—Paragraphs 22 (1) through (4) of this subsection shall only 23 apply to loans made under this part before July 24 1, 2026. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00172 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 173 •HR 1 RH ‘‘(B) PROHIBITIONS.—The Secretary may 1 not, for any loan made under this part on or 2 after July 1, 2026— 3 ‘‘(i) authorize a borrower of such a 4 loan to repay such loan pursuant to a re- 5 payment plan that is not described in 6 paragraph (7)(A); or 7 ‘‘(ii) carry out or modify a repayment 8 plan that is not described in such para- 9 graph. 10 ‘‘(7) REPAYMENT PLANS FOR LOANS MADE ON 11 OR AFTER JULY 1, 2026.— 12 ‘‘(A) DESIGN AND SELECTION.—Beginning 13 on July 1, 2026, the Secretary shall offer a bor- 14 rower of a loan made under this part on or 15 after such date (including such a borrower who 16 also has a loan made under this part before 17 such date) two plans for repayment of the bor- 18 rower’s loans under this part, including prin- 19 cipal and interest on such loans. The borrower 20 shall be entitled to accelerate, without penalty, 21 repayment on such loans. The borrower may 22 choose— 23 ‘‘(i) a standard repayment plan— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00173 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 174 •HR 1 RH ‘‘(I) with a fixed monthly repay- 1 ment amount paid over a fixed period 2 of time equal to the applicable period 3 determined under subclause (II); and 4 ‘‘(II) with the applicable period 5 of time for repayment determined 6 based on the total outstanding prin- 7 cipal of all loans of the borrower made 8 under this part before, on, or after 9 July 1, 2026, at the time the bor- 10 rower is entering repayment under 11 such plan, as follows— 12 ‘‘(aa) for a borrower with 13 total outstanding principal of less 14 than $25,000, a period of 10 15 years; 16 ‘‘(bb) for a borrower with 17 total outstanding principal of not 18 less than $25,000 and less than 19 $50,000, a period of 15 years; 20 ‘‘(cc) for a borrower with 21 total outstanding principal of not 22 less than $50,000 and less than 23 $100,000, a period of 20 years; 24 and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00174 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 175 •HR 1 RH ‘‘(dd) for a borrower with 1 total outstanding principal of 2 $100,000 or more, a period of 25 3 years; or 4 ‘‘(ii) the income-based Repayment As- 5 sistance Plan under subsection (q). 6 ‘‘(B) SELECTION BY SECRETARY.—If a 7 borrower of a loan made under this part on or 8 after July 1, 2026, does not select a repayment 9 plan described in subparagraph (A), the Sec- 10 retary shall provide the borrower with the 11 standard repayment plan described in subpara- 12 graph (A)(i). 13 ‘‘(C) SELECTION AVAILABLE FOR EACH 14 NEW LOAN; SELECTION APPLIES TO ALL OUT- 15 STANDING LOANS.—Each time a borrower re- 16 ceives a loan made under this part on or after 17 July 1, 2026, the borrower may select either 18 the standard repayment plan under subpara- 19 graph (A)(i) or the Repayment Assistance Plan 20 under subparagraph (A)(ii), provided that the 21 borrower is required to pay each outstanding 22 loan of the borrower made under this part 23 under such selected repayment plan. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00175 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 176 •HR 1 RH ‘‘(D) PERMISSIBLE CHANGES OF REPAY- 1 MENT PLAN.— 2 ‘‘(i) CHANGING FROM STANDARD RE- 3 PAYMENT PLAN.—A borrower may change 4 the borrower’s selection of the standard re- 5 payment plan under subparagraph (A)(i), 6 or the Secretary’s selection of such plan 7 for the borrower under subparagraph (C), 8 as the case may be, to the Repayment As- 9 sistance Plan under subparagraph (A)(ii) 10 at any time. 11 ‘‘(ii) LIMITED CHANGE FROM REPAY- 12 MENT ASSISTANCE PLAN.—A borrower 13 may not change the borrower’s selection of 14 the Repayment Assistance Plan under sub- 15 paragraph (A)(ii), except in accordance 16 with subparagraph (C). 17 ‘‘(E) SPECIAL RULE FOR EXCEPTED LOAN 18 BORROWERS WITH LOANS MADE ON OR AFTER 19 JULY 1, 2026.— 20 ‘‘(i) STANDARD REPAYMENT PLAN RE- 21 QUIRED.—Notwithstanding subparagraphs 22 (A) through (D), beginning on July 1, 23 2026, the Secretary shall require a bor- 24 rower who has an excepted loan and who 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00176 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 177 •HR 1 RH has received a loan made under this part 1 on or after such date to repay each out- 2 standing loan of the borrower made under 3 this part, including principal and interest 4 on such loans, under the standard repay- 5 ment plan under subparagraph (A)(i). The 6 borrower shall be entitled to accelerate, 7 without penalty, repayment on such loans. 8 ‘‘(ii) EXCEPTED LOAN DEFINED.— 9 For the purposes of this paragraph, the 10 term ‘excepted loan’ means a loan with an 11 outstanding balance that is— 12 ‘‘(I) a Federal Direct PLUS 13 Loan that is made on behalf of a de- 14 pendent student; or 15 ‘‘(II) a Federal Direct Consolida- 16 tion Loan, if the proceeds of such loan 17 were used to the discharge the liability 18 on— 19 ‘‘(aa) an excepted PLUS 20 loan, as defined in section 21 493C(a)(1); or 22 ‘‘(bb) an excepted consolida- 23 tion loan (as such term is defined 24 in section 493C(a)(2)(A), not- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00177 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 178 •HR 1 RH withstanding subparagraph (B) 1 of such section). 2 ‘‘(F) TREATMENT OF BORROWERS WITH- 3 OUT LOANS MADE ON OR AFTER JULY 1, 2026.— 4 A borrower who has an outstanding loan (in- 5 cluding an excepted loan) made under this part 6 before July 1, 2026, and who has not received 7 a loan made under this part on or after July 8 1, 2026, shall not be eligible to change the bor- 9 rower’s selection of a repayment plan to the 10 standard repayment plan under subparagraph 11 (A)(i).’’. 12 (c) ELIMINATION OF AUTHORITY TO PROVIDE IN- 13 COME CONTINGENT REPAYMENT PLANS.— 14 (1) REPEAL.—Subsection (e) of section 455 the 15 Higher Education Act of 1965 (20 U.S.C. 1087e(e)) 16 is repealed. 17 (2) FURTHER AMENDMENTS TO ELIMINATE IN- 18 COME CONTINGENT REPAYMENT.— 19 (A) Section 428 of the Higher Education 20 Act of 1965 (20 U.S.C. 1078) is amended— 21 (i) in subsection (b)(1)(D), by striking 22 ‘‘be subject to income contingent repay- 23 ment in accordance with subsection (m)’’ 24 and inserting ‘‘be subject to income-based 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00178 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 179 •HR 1 RH repayment in accordance with subsection 1 (m)’’; and 2 (ii) in subsection (m)— 3 (I) in the subsection heading, by 4 striking ‘‘INCOME CONTINGENT AND’’; 5 (II) by amending paragraph (1) 6 to read as follows: 7 ‘‘(1) AUTHORITY OF SECRETARY TO RE- 8 QUIRE.—The Secretary may require borrowers who 9 have defaulted on loans made under this part that 10 are assigned to the Secretary under subsection 11 (c)(8) to repay those loans pursuant to an income- 12 based repayment plan under section 455(q) or sec- 13 tion 493C, as applicable.’’; and 14 (III) in the heading of paragraph 15 (2), by striking ‘‘INCOME CONTINGENT 16 OR’’. 17 (B) Section 428C of the Higher Education 18 Act of 1965 (20 U.S.C. 1078–3) is amended— 19 (i) in subsection (a)(3)(B)(i)(V)(aa), 20 by striking ‘‘for the purposes of obtaining 21 income contingent repayment or income- 22 based repayment’’ and inserting ‘‘for the 23 purposes of qualifying for an income-based 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00179 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 180 •HR 1 RH repayment plan under section 455(q) or 1 section 493C, as applicable’’; 2 (ii) in subsection (b)(5), by striking 3 ‘‘be repaid either pursuant to income con- 4 tingent repayment under part D of this 5 title, pursuant to income-based repayment 6 under section 493C, or pursuant to any 7 other repayment provision under this sec- 8 tion’’ and inserting ‘‘be repaid pursuant to 9 an income-based repayment plan under 10 section 493C or any other repayment pro- 11 vision under this section’’; and 12 (iii) in subsection (c)— 13 (I) in paragraph (2)(A), by strik- 14 ing ‘‘or by the terms of repayment 15 pursuant to income contingent repay- 16 ment offered by the Secretary under 17 subsection (b)(5)’’ and inserting ‘‘or 18 by the terms of repayment pursuant 19 to an income-based repayment plan 20 under section 493C’’; and 21 (II) in paragraph (3)(B), by 22 striking ‘‘except as required by the 23 terms of repayment pursuant to in- 24 come contingent repayment offered by 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00180 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 181 •HR 1 RH the Secretary under subsection 1 (b)(5)’’ and inserting ‘‘except as re- 2 quired by the terms of repayment pur- 3 suant to an income-based repayment 4 plan under section 493C’’. 5 (C) Section 485(d)(1) of the Higher Edu- 6 cation Act of 1965 (20 U.S.C. 1092(d)(1)) is 7 amended by striking ‘‘income-contingent and’’. 8 (D) Section 494(a)(2) of the Higher Edu- 9 cation Act of 1965 (20 U.S.C. 1098h(a)(2)) is 10 amended— 11 (i) in the paragraph heading, by strik- 12 ing ‘‘INCOME-CONTINGENT AND INCOME- 13 BASED’’ and inserting ‘‘INCOME-BASED’’; 14 (ii) in subparagraph (A)— 15 (I) in the matter preceding clause 16 (i), by striking ‘‘income-contingent 17 or’’; and 18 (II) in clause (ii)(I), by inserting 19 ‘‘(as in effect on the day before the 20 date of repeal of subsection (e) of sec- 21 tion 455)’’ after ‘‘section 455(e)(8)’’. 22 (d) REPAYMENT ASSISTANCE PLAN.—Section 455 of 23 the Higher Education Act of 1965 (20 U.S.C. 1087e) is 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00181 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 182 •HR 1 RH amended by adding at the end the following new sub- 1 section: 2 ‘‘(q) REPAYMENT ASSISTANCE PLAN.— 3 ‘‘(1) IN GENERAL.—Notwithstanding any other 4 provision of this Act, beginning on July 1, 2026, the 5 Secretary shall carry out an income-based repayment 6 plan (to be known as the ‘Repayment Assistance 7 Plan’), that shall have the following terms and con- 8 ditions: 9 ‘‘(A) The total monthly repayment amount 10 owed by a borrower for all of the loans of the 11 borrower that are repaid pursuant to the Re- 12 payment Assistance Plan shall be equal to the 13 applicable monthly payment of a borrower cal- 14 culated under paragraph (3)(B), except that the 15 borrower may not be precluded from repaying 16 an amount that exceeds such amount for any 17 month. 18 ‘‘(B) The Secretary shall apply the bor- 19 rower’s applicable monthly payment under this 20 paragraph first toward interest due on each 21 such loan, next toward any fees due on each 22 loan, and then toward the principal of each 23 loan. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00182 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 183 •HR 1 RH ‘‘(C) Any principal due and not paid under 1 subparagraph (B) or paragraph (2)(B) shall be 2 deferred. 3 ‘‘(D) A borrower who is not in a period of 4 deferment or forbearance shall make an appli- 5 cable monthly payment for each month until the 6 earlier of— 7 ‘‘(i) the date on which the outstanding 8 balance of principal and interest due on all 9 of the loans of the borrower that are re- 10 paid pursuant to the Repayment Assist- 11 ance Plan is $0; or 12 ‘‘(ii) the date on which the borrower 13 has made 360 qualifying monthly pay- 14 ments. 15 ‘‘(E) The Secretary shall repay or cancel 16 any outstanding balance of principal and inter- 17 est due on a loan made under this part to a 18 borrower— 19 ‘‘(i) who, for any period of time, par- 20 ticipated in the Repayment Assistance 21 Plan under this subsection; 22 ‘‘(ii) whose most recent payment for 23 such loan prior to the loan cancellation 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00183 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 184 •HR 1 RH under this subparagraph was made under 1 such Repayment Assistance Plan; and 2 ‘‘(iii) who has made 360 qualifying 3 monthly payments on such loan. 4 ‘‘(F) For the purposes of this subsection, 5 the term ‘qualifying monthly payment’ means 6 any of the following: 7 ‘‘(i) An on-time applicable monthly 8 payment under this subsection. 9 ‘‘(ii) An on-time monthly payment 10 under the standard repayment plan under 11 subsection (d)(7)(A)(i) of not less than the 12 monthly payment required under such 13 plan. 14 ‘‘(iii) A monthly payment under any 15 repayment plan of not less than the 16 monthly payment that would be required 17 under a standard repayment plan under 18 section 455(d)(1)(A) with a repayment pe- 19 riod of 10 years. 20 ‘‘(iv) A monthly payment under sec- 21 tion 493C of not less than the monthly 22 payment required under such section, in- 23 cluding a monthly payment equal to the 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00184 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 185 •HR 1 RH minimum payment amount permitted 1 under such section. 2 ‘‘(v) A monthly payment made before 3 the date of enactment of this subsection 4 under an income-contingent repayment 5 plan carried out under section 6 455(d)(1)(D) (or under an alternative re- 7 payment plan in lieu of repayment under 8 such an income-contingent repayment plan, 9 if placed in such an alternative repayment 10 plan by the Secretary) of not less than the 11 monthly payment required under such a 12 plan, including a monthly payment equal 13 to the minimum payment amount per- 14 mitted under such a plan. 15 ‘‘(vi) A month when the borrower did 16 not make a payment because the borrower 17 was in deferment due to an economic hard- 18 ship described in section 435(o). 19 ‘‘(vii) A month that ended before the 20 date of enactment of this subsection when 21 the borrower did not make a payment be- 22 cause the borrower was in a period 23 deferment or forbearance described in sec- 24 tion 685.209(k)(4)(iv) of title 34, Code of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00185 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 186 •HR 1 RH Federal Regulations (as in effect on the 1 date of enactment of this subsection). 2 ‘‘(G) With respect to carrying out section 3 494(a)(2) for the Repayment Assistance Plan, 4 an individual may elect to opt out of the disclo- 5 sures required under section 494(a)(2)(A)(ii) in 6 accordance with the procedures established 7 under section 493C(c)(2)(B). 8 ‘‘(2) BALANCE ASSISTANCE FOR DISTRESSED 9 BORROWERS.— 10 ‘‘(A) INTEREST SUBSIDY.—With respect to 11 a borrower of a loan made under this part, for 12 each month for which such a borrower makes 13 an on-time applicable monthly payment re- 14 quired under paragraph (1)(A) and such 15 monthly payment is insufficient to pay the total 16 amount of interest that accrues for the month 17 on all loans of the borrower repaid pursuant to 18 the Repayment Assistance Plan under this sub- 19 section, the amount of interest accrued and not 20 paid for the month shall not be charged to the 21 borrower. 22 ‘‘(B) MATCHING PRINCIPAL PAYMENT.— 23 With respect to a borrower of a loan made 24 under this part and not in a period of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00186 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 187 •HR 1 RH deferment or forbearance, for each month for 1 which a borrower makes an on-time applicable 2 monthly payment required under paragraph 3 (1)(A) and such monthly payment reduces the 4 total outstanding principal balance of all loans 5 of the borrower repaid pursuant to the Repay- 6 ment Assistance Plan under this subsection by 7 less than $50, the Secretary shall reduce such 8 total outstanding principal balance of the bor- 9 rower by an amount that is equal to— 10 ‘‘(i) the amount that is the lesser of— 11 ‘‘(I) $50; or 12 ‘‘(II) the total amount paid by 13 the borrower for such month pursuant 14 to paragraph (1)(A), minus 15 ‘‘(ii) the total amount paid by the bor- 16 rower for such month pursuant to para- 17 graph (1)(A) that is applied to such total 18 outstanding principal balance. 19 ‘‘(3) DEFINITIONS.—In this paragraph: 20 ‘‘(A) ADJUSTED GROSS INCOME.—The 21 term ‘adjusted gross income’, when used with 22 respect to a borrower, means the adjusted gross 23 income (as such term is defined in section 62 24 of the Internal Revenue Code of 1986) of the 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00187 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 188 •HR 1 RH borrower (and the borrower’s spouse, as appli- 1 cable) for the most recent taxable year, except 2 that, in the case of a married borrower who 3 files a separate Federal income tax return, the 4 term does not include the adjusted gross income 5 of the borrower’s spouse. 6 ‘‘(B) APPLICABLE MONTHLY PAYMENT.— 7 ‘‘(i) IN GENERAL.—Except as pro- 8 vided in clause (ii) or (iii), the term ‘appli- 9 cable monthly payment’ means, when used 10 with respect to a borrower, the amount 11 equal to— 12 ‘‘(I) the applicable base payment 13 of the borrower, divided by 12; minus 14 ‘‘(II) $50 for each dependent 15 child of the borrower. 16 ‘‘(ii) MINIMUM AMOUNT.—In the case 17 of a borrower with an applicable monthly 18 payment amount calculated under clause 19 (i) that is less than $10, the applicable 20 monthly payment of the borrower shall be 21 $10. 22 ‘‘(iii) FINAL PAYMENT.—In the case 23 of a borrower whose total outstanding bal- 24 ance of principal and interest on all of the 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00188 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 189 •HR 1 RH loans of the borrower that are repaid pur- 1 suant to the Repayment Assistance Plan is 2 less than the applicable monthly payment 3 calculated pursuant to clause (i) or (ii), as 4 applicable, then the applicable monthly 5 payment of the borrower shall be the total 6 outstanding balance of principal and inter- 7 est on all such loans. 8 ‘‘(iv) BASE PAYMENT.—The amount 9 of the applicable base payment for a bor- 10 rower with an adjusted gross income of— 11 ‘‘(I) not more than $10,000, is 12 $120; 13 ‘‘(II) more than $10,000 and not 14 more than $20,000, is 1 percent of 15 such adjusted gross income; 16 ‘‘(III) more than $20,000 and 17 not more than $30,000, is 2 percent 18 of such adjusted gross income; 19 ‘‘(IV) more than $30,000 and 20 not more than $40,000, is 3 percent 21 of such adjusted gross income; 22 ‘‘(V) more than $40,000 and not 23 more than $50,000, is 4 percent of 24 such adjusted gross income; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00189 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 190 •HR 1 RH ‘‘(VI) more than $50,000 and 1 not more than $60,000, is 5 percent 2 of such adjusted gross income; 3 ‘‘(VII) more than $60,000 and 4 not more than $70,000, is 6 percent 5 of such adjusted gross income; 6 ‘‘(VIII) more than $70,000 and 7 not more than $80,000, is 7 percent 8 of such adjusted gross income; 9 ‘‘(IX) more than $80,000 and 10 not more than $90,000, is 8 percent 11 of such adjusted gross income; 12 ‘‘(X) more than $90,000 and not 13 more than $100,000, is 9 percent of 14 such adjusted gross income; and 15 ‘‘(XI) more than $100,000, is 10 16 percent of such adjusted gross in- 17 come. 18 ‘‘(v) DEPENDENT CHILD OF THE BOR- 19 ROWER.—For the purposes of this para- 20 graph, the term ‘dependent child of the 21 borrower’ means an individual who— 22 ‘‘(I) is under 17 years of age; 23 and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00190 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 191 •HR 1 RH ‘‘(II) is the borrower’s dependent 1 child or another person who lives with 2 and receives more than one-half of 3 their support from the borrower.’’. 4 (e) FEDERAL CONSOLIDATION LOANS.—Section 5 455(g) of the Higher Education Act of 1965 (20 U.S.C. 6 1087e(g)) is amended by adding at the end the following 7 new paragraph: 8 ‘‘(3) CONSOLIDATION LOANS MADE ON OR 9 AFTER JULY 1, 2026.—Notwithstanding subsections 10 (b)(5), (c)(2), and (c)(3)(A) and (B) of section 11 428C, a Federal Direct Consolidation Loan offered 12 to a borrower under this part on or after July 1, 13 2026, may only be repaid pursuant to a repayment 14 plan described in subsection (d)(7)(A)(i) or (ii) of 15 this section, as applicable, and the repayment sched- 16 ule of such a Consolidation Loan shall be determined 17 in accordance with such repayment plan.’’. 18 (f) INCOME-BASED REPAYMENT.— 19 (1) AMENDMENTS.— 20 (A) EXCEPTED CONSOLIDATION LOAN DE- 21 FINED.—Section 493C(a)(2) of the Higher 22 Education Act of 1965 (20 U.S.C. 1098e(a)(2)) 23 is amended to read as follows: 24 ‘‘(2) EXCEPTED CONSOLIDATION LOAN.— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00191 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 192 •HR 1 RH ‘‘(A) IN GENERAL.—The term ‘excepted 1 consolidation loan’ means— 2 ‘‘(i) a consolidation loan under section 3 428C, or a Federal Direct Consolidation 4 Loan, if the proceeds of such loan were 5 used to the discharge the liability on an ex- 6 cepted PLUS loan; or 7 ‘‘(ii) a consolidation loan under sec- 8 tion 428C, or a Federal Direct Consolida- 9 tion Loan, if the proceeds of such loan 10 were used to discharge the liability on a 11 consolidation loan under section 428C or a 12 Federal Direct Consolidation Loan de- 13 scribed in clause (i). 14 ‘‘(B) EXCLUSION.—The term ‘excepted 15 consolidation loan’ does not include a Federal 16 Direct Consolidation Loan described in sub- 17 paragraph (A) that (on the day before the date 18 of enactment of this subparagraph) was being 19 repaid pursuant to the Income-Contingent Re- 20 payment (ICR) plan in accordance with section 21 685.209(a) of title 34, Code of Federal Regula- 22 tions (as in effect on June 30, 2023).’’. 23 (B) TERMS OF INCOME-BASED REPAY- 24 MENT.—Section 493C(b) of the Higher Edu- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00192 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 193 •HR 1 RH cation Act of 1965 (20 U.S.C. 1098e(b)) is 1 amended— 2 (i) by amending paragraph (1) to read 3 as follows: 4 ‘‘(1) a borrower of any loan made, insured, or 5 guaranteed under part B or D (other than an ex- 6 cepted PLUS loan or excepted consolidation loan), 7 may elect to have the borrower’s aggregate monthly 8 payment for all such loans not exceed the result de- 9 scribed in subsection (a)(3)(B) divided by 12;’’; 10 (ii) in paragraph (3)— 11 (I) in subparagraph (B)— 12 (aa) in clause (i)— 13 (AA) by striking sub- 14 clause (II); and 15 (BB) by striking ‘‘the 16 borrower’’ and all the fol- 17 lows through ‘‘ends’’ and in- 18 serting ‘‘the borrower ends’’; 19 and 20 (bb) in clause (ii)— 21 (AA) by striking sub- 22 clause (II); 23 (BB) by striking ‘‘the 24 borrower’’ and all the fol- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00193 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 194 •HR 1 RH lows through ‘‘ends’’ and in- 1 serting ‘‘the borrower ends’’; 2 and 3 (CC) by striking ‘‘or’’ 4 at the end; 5 (iii) by repealing paragraph (6); 6 (iv) in paragraph (7)(B)— 7 (I) in the matter preceding clause 8 (i), by striking ‘‘for a period of time 9 prescribed by the Secretary, not to ex- 10 ceed 25 years’’ and inserting the fol- 11 lowing: ‘‘for 25 years (in the case of 12 a borrower who is repaying at least 13 one loan for a program of study for 14 which a graduate credential (as de- 15 fined in section 472A)) is awarded, or, 16 for 20 years (in the case of a bor- 17 rower who is not repaying at least one 18 such loan)’’; 19 (II) in clause (i), by inserting 20 ‘‘(as such paragraph was in effect on 21 the day before the date of the repeal 22 of paragraph (6))’’ after ‘‘paragraph 23 (6)’’; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00194 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 195 •HR 1 RH (III) in clause (iv), by inserting 1 ‘‘(as such section was in effect on the 2 day before the date of the repeal of 3 paragraph (6))’’ after ‘‘section 4 455(d)(1)(D)’’; and 5 (v) in paragraph (8), by striking 6 ‘‘standard repayment plan’’ and inserting 7 ‘‘standard repayment plan under section 8 428(b)(9)(A)(i) or 455(d)(1)(A), or the 9 Repayment Assistance Program under sec- 10 tion 455(q)’’. 11 (C) ELIGIBILITY DETERMINATIONS.—Sec- 12 tion 493C(c)(2) of the Higher Education Act of 13 1965 (20 U.S.C. 1098e(c)(2)) is further amend- 14 ed— 15 (i) in subparagraph (A), by inserting 16 ‘‘(as in effect on the day before the date of 17 repeal of subsection (e) of section 455)’’ 18 after ‘‘section 455(e)(1)’’; and 19 (ii) in subparagraph (B), by inserting 20 ‘‘(as in effect on the day before the date of 21 repeal of subsection (e) of section 455)’’ 22 after ‘‘section 455(e)(8)’’. 23 (D) TERMINATION OF SPECIAL TERMS FOR 24 NEW BORROWERS ON AND AFTER JULY 1, 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00195 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 196 •HR 1 RH 2014.—Section 493C of the Higher Education 1 Act of 1965 (20 U.S.C. 1098e(e)) is further 2 amended by striking subsection (e). 3 (2) EFFECTIVE DATE AND APPLICATION.—The 4 amendments made by this subsection shall take ef- 5 fect on the date of enactment of this title, and shall 6 apply with respect to any borrower who is in repay- 7 ment before, on, or after the date of enactment of 8 this title. 9 SEC. 30022. DEFERMENT; FORBEARANCE. 10 (a) HEADING AMENDMENT.—Section 455(f) of the 11 Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is 12 amended by striking the subsection heading and inserting 13 the following: ‘‘DEFERMENT; FORBEARANCE’’. 14 (b) SUNSET OF ECONOMIC HARDSHIP AND UNEM- 15 PLOYMENT DEFERMENTS.—Section 455(f) of the Higher 16 Education Act of 1965 (20 U.S.C.1087e(f)) is amended— 17 (1) in paragraph (2)— 18 (A) in subparagraph (B), by striking ‘‘not 19 in’’ and inserting ‘‘subject to paragraph (7), not 20 in’’ ; and 21 (B) in subparagraph (D), by striking ‘‘not 22 in’’ and inserting ‘‘subject to paragraph (7), not 23 in’’; and 24 (2) by adding at the end the following: 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00196 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 197 •HR 1 RH ‘‘(7) SUNSET OF UNEMPLOYMENT AND ECO- 1 NOMIC HARDSHIP DEFERMENTS.—A borrower who 2 receives a loan made under this part on or after 3 July 1, 2025, shall not be eligible to defer such loan 4 under subparagraph (B) or (D) of paragraph (2).’’. 5 (c) FORBEARANCE ON LOANS MADE UNDER THIS 6 PART ON OR AFTER JULY 1, 2025.—Section 455(f) of the 7 Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is 8 amended by adding at the end the following: 9 ‘‘(8) FORBEARANCE ON LOANS MADE UNDER 10 THIS PART ON OR AFTER JULY 1, 2025.—A borrower 11 who receives a loan made under this part on or after 12 July 1, 2025— 13 ‘‘(A) may only be eligible for a forbearance 14 on such loan pursuant to section 428(c)(3)(B) 15 that does not exceed 9 months during any 24- 16 month period; and 17 ‘‘(B) in the case of a borrower who is serv- 18 ing in a medical or dental internship or resi- 19 dency program (as such program is described in 20 section 428(c)(3)(A)(i)(I)), may be eligible for a 21 forbearance on such loan pursuant to 22 428(c)(3)(A)(i)(I), during which— 23 ‘‘(i) for the first 4 12-month intervals, 24 interest shall not accrue; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00197 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 198 •HR 1 RH ‘‘(ii) for any subsequent 12-month in- 1 terval, interest shall accrue.’’. 2 SEC. 30023. LOAN REHABILITATION. 3 (a) UPDATING LOAN REHABILITATION LIMITS.— 4 (1) FFEL AND DIRECT LOANS.—Section 5 428F(a)(5) of the Higher Education Act of 1965 6 (20 U.S.C. 1078–6(a)(5)) is amended by striking 7 ‘‘one time’’ and inserting ‘‘two times’’. 8 (2) PERKINS LOANS.—Section 464(h)(1)(D) of 9 the Higher Education Act of 1965 (20 U.S.C. 10 1087dd(h)(1)(D)) is amended by striking ‘‘once’’ 11 and inserting ‘‘twice’’. 12 (3) EFFECTIVE DATE.—The amendments made 13 by this subsection shall take effect on the date of en- 14 actment of this Act, and shall apply with respect to 15 any loan made, insured, or guaranteed under title IV 16 of the Higher Education Act of 1965 (20 U.S.C. 17 1070 et seq.). 18 (b) MINIMUM MONTHLY PAYMENT AMOUNT.—Sec- 19 tion 428F(a)(1)(B) of the Higher Education Act of 1965 20 (20 U.S.C. 1078–6(a)(1)(B)) is amended by adding at the 21 end the following: ‘‘With respect a loan made under part 22 D on or after July 1, 2025, a monthly payment amount 23 described in subparagraph (A) may not be less than $10.’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00198 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 199 •HR 1 RH SEC. 30024. PUBLIC SERVICE LOAN FORGIVENESS. 1 (a) REPAYMENT ASSISTANCE PLAN.—Section 2 455(m)(1)(A) of the Higher Education Act of 1965 (20 3 U.S.C. 1087e(m)(1)(A)) is amended— 4 (1) in clause (iii), by striking ‘‘; or’’ and insert- 5 ing a semicolon; 6 (2) in clause (iv), by striking ‘‘; and’’ and in- 7 serting ‘‘(as in effect on the day before the date of 8 the repeal of subsection (e) of this section); or’’; and 9 (3) by adding at the end the following new 10 clause: 11 ‘‘(v) on-time payments under the Re- 12 payment Assistance Plan under section 13 455(q); and’’. 14 (b) PUBLIC SERVICE JOB.—Section 455(m)(3)(B) of 15 the Higher Education Act of 1965 (20 U.S.C. 16 1087e(m)(3)(B)) is amended— 17 (1) by redesignating clauses (i) and (ii) as sub- 18 clauses (I) and (II), respectively, and adjusting the 19 margins accordingly; 20 (2) by striking ‘‘The term’’ and inserting the 21 following: 22 ‘‘(i) IN GENERAL.—The term’’; and 23 (3) by adding at the end the following: 24 ‘‘(ii) EXCLUSION.—The term ‘public 25 service job’ does not include time served in 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00199 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 200 •HR 1 RH a medical or dental internship or residency 1 program (as such program is described in 2 section 428(c)(3)(A)(i)(I)) by an individual 3 who, as of June 30, 2025, has not bor- 4 rowed a Federal Direct PLUS Loan or a 5 Federal Direct Unsubsidized Stafford 6 Loan for a program of study that awards 7 a graduate credential upon completion of 8 such program.’’. 9 SEC. 30025. STUDENT LOAN SERVICING. 10 Paragraph (1) of section 458(a) of the Higher Edu- 11 cation Act of 1965 (20 U.S.C. 1087h(a)(1)) is amended 12 to read as follows: 13 ‘‘(1) ADDITIONAL MANDATORY FUNDS FOR FIS- 14 CAL YEARS 2025 AND 2026.—For each of the fiscal 15 years 2025 and 2026 there shall be available to the 16 Secretary (in addition to any other amounts appro- 17 priated under any appropriations Act for administra- 18 tive costs under this part and part B and out of any 19 money in the Treasury not otherwise appropriated) 20 funds to be obligated for administrative costs under 21 this part and part B, including the costs of the di- 22 rect student loan programs under this part, not to 23 exceed $500,000,000 in each such fiscal year.’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00200 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 201 •HR 1 RH Subtitle D—Pell Grants 1 SEC. 30031. ELIGIBILITY. 2 (a) FOREIGN INCOME AND FEDERAL PELL GRANT 3 ELIGIBILITY.— 4 (1) ADJUSTED GROSS INCOME DEFINED.—Sec- 5 tion 401(a)(2)(A) of the Higher Education Act of 6 1965 (20 U.S.C. 1070a(a)(2)(A)) is amended to 7 read as follows: 8 ‘‘(A) the term ‘adjusted gross income’ 9 means— 10 ‘‘(i) in the case of a dependent stu- 11 dent, for the second tax year preceding the 12 academic year— 13 ‘‘(I) the adjusted gross income 14 (as defined in section 62 of the Inter- 15 nal Revenue Code of 1986) of the stu- 16 dent’s parents; plus 17 ‘‘(II) the foreign income (as de- 18 scribed in section 480(b)(5)) of the 19 student’s parents; and 20 ‘‘(ii) in the case of an independent 21 student, for the second tax year preceding 22 the academic year— 23 ‘‘(I) the adjusted gross income 24 (as defined in section 62 of the Inter- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00201 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 202 •HR 1 RH nal Revenue Code of 1986) of the stu- 1 dent (and the student’s spouse, if ap- 2 plicable); plus 3 ‘‘(II) the foreign income (as de- 4 scribed in section 480(b)(5)) of the 5 student (and the student’s spouse, if 6 applicable);’’. 7 (2) SUNSET.—Section 401(b)(1)(D) of the 8 Higher Education Act of 1965 (20 U.S.C. 9 1070a(b)(1)(D)) is amended by striking ‘‘A student’’ 10 and inserting ‘‘For each academic year beginning be- 11 fore July 1, 2025, a student’’. 12 (3) CONFORMING AMENDMENT.—Section 13 479A(b)(1)(B) of the Higher Education Act of 1965 14 (20 U.S.C. 1087tt(b)(1)(B)) is amended— 15 (A) by striking clause (v); and 16 (B) by redesignating clauses (vi) and (vii) 17 as clauses (v) and (vi), respectively. 18 (b) DEFINITION OF FULL TIME ENROLLMENT FOR 19 FEDERAL PELL GRANT ELIGIBILITY.—Section 401(a)(2) 20 of the Higher Education Act of 1965 (20 U.S.C. 21 1070a(a)(2)) is further amended— 22 (1) in subparagraph (E), by striking ‘‘and’’ 23 after the semicolon; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00202 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 203 •HR 1 RH (2) in subparagraph (F), by striking the period 1 and inserting ‘‘; and’’; and 2 (3) by adding at the end the following new sub- 3 paragraph: 4 ‘‘(G) notwithstanding section 5 481(a)(2)(A)(iii), the terms ‘full time’ and ‘full- 6 time’ (except with respect to subsection (d)(4) 7 when used as part of the term ‘normal full-time 8 workload’) mean, with respect to a student en- 9 rolled in an undergraduate course of study, the 10 student is expected to complete at least 30 se- 11 mester or trimester hours or 45 quarter credit 12 hours (or the clock hour equivalent) in each 13 academic year a student is enrolled in the 14 course of study.’’. 15 (c) FEDERAL PELL GRANT INELIGIBILITY DUE TO 16 A HIGH STUDENT AID INDEX.—Section 401(b)(1) of the 17 Higher Education Act of 1965 (20 U.S.C. 1070a–1(b)(1)) 18 is amended by adding at the end the following: 19 ‘‘(F) INELIGIBILITY OF STUDENTS WITH A 20 HIGH STUDENT AID INDEX.—Notwithstanding 21 subparagraphs (A) through (E), a student shall 22 not be eligible for a Federal Pell Grant under 23 this subsection for an academic year in which 24 the student has a student aid index that equals 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00203 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 204 •HR 1 RH or exceeds twice the amount of the total max- 1 imum Federal Pell Grant for such academic 2 year.’’. 3 (d) NO FEDERAL PELL GRANT ELIGIBILITY FOR 4 STUDENTS ENROLLED LESS THAN HALF TIME.—Section 5 401 of the Higher Education Act of 1965 (20 U.S.C. 6 1070a) is further amended— 7 (1) in subsection (b)— 8 (A) by striking ‘‘(2) LESS’’ and inserting 9 ‘‘(2)(A) LESS’’; and 10 (B) by inserting after subparagraph (A) 11 (as so designated by subparagraph (A) of this 12 subsection) the following new subparagraph: 13 ‘‘(B) LESS THAN HALF-TIME ENROLLMENT.— 14 Notwithstanding subparagraph (A), a student who 15 first receives a Federal Pell Grant on or after July 16 1, 2025, shall not be eligible for an award under this 17 subsection for any academic year beginning after 18 such date in which the student is enrolled in an eli- 19 gible program of an institution of higher education 20 on less than a half-time basis. The Secretary shall 21 update the schedule of reductions described in sub- 22 paragraph (A) in accordance with this subpara- 23 graph, including for students receiving the minimum 24 Federal Pell Grant.’’; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00204 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 205 •HR 1 RH (2) in subsection (c)(6)(A), by inserting ‘‘, and 1 the eligibility requirement of enrollment on at least 2 a half-time basis under subsection (b)(2),’’ after 3 ‘‘(b)(1)’’; and 4 (3) in subsection (d)(5)(A), by inserting ‘‘(and 5 at least half time, in the case of a student who first 6 receives a Federal Pell Grant under subsection (b) 7 on or after July 1, 2025)’’ after ‘‘full time’’. 8 (e) EFFECTIVE DATE AND APPLICATION.—The 9 amendments made by this section shall take effect on July 10 1, 2025, and shall apply with respect to award year 2025– 11 2026 and each subsequent award year. 12 SEC. 30032. WORKFORCE PELL GRANTS. 13 (a) IN GENERAL.—Section 401 of the Higher Edu- 14 cation Act of 1965 (20 U.S.C. 1070a) is amended by add- 15 ing at the end the following:— 16 ‘‘(k) WORKFORCE PELL GRANT PROGRAM.— 17 ‘‘(1) IN GENERAL.—For the award year begin- 18 ning on July 1, 2026, and each subsequent award 19 year, the Secretary shall award grants (to be known 20 as ‘Workforce Pell Grants’) to eligible students 21 under paragraph (2) in accordance with this sub- 22 section. 23 ‘‘(2) ELIGIBLE STUDENTS.—To be eligible to 24 receive a Workforce Pell Grant under this subsection 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00205 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 206 •HR 1 RH for any period of enrollment, a student shall meet 1 the eligibility requirements for a Federal Pell Grant 2 under this section, except that the student— 3 ‘‘(A) shall be enrolled, or accepted for en- 4 rollment, in an eligible program under section 5 481(b)(3) (hereinafter referred to as an ‘eligible 6 workforce program’); and 7 ‘‘(B) may not— 8 ‘‘(i) be enrolled, or accepted for enroll- 9 ment, in a program of study that leads to 10 a graduate credential; or 11 ‘‘(ii) have attained such a credential. 12 ‘‘(3) TERMS AND CONDITIONS OF AWARDS.— 13 The Secretary shall award Workforce Pell Grants 14 under this subsection in the same manner and with 15 the same terms and conditions as the Secretary 16 awards Federal Pell Grants under this section, ex- 17 cept that— 18 ‘‘(A) each use of the term ‘eligible pro- 19 gram’ (except in subsections (b)(9)(A) and 20 (d)(2)) shall be substituted by ‘eligible work- 21 force program under section 481(b)(3)’; and 22 ‘‘(B) a student who is eligible for a grant 23 equal to less than the amount of the minimum 24 Federal Pell Grant because the eligible work- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00206 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 207 •HR 1 RH force program in which the student is enrolled 1 or accepted for enrollment is less than an aca- 2 demic year (in hours of instruction or weeks of 3 duration) may still be eligible for a Workforce 4 Pell Grant in an amount that is prorated based 5 on the length of the program. 6 ‘‘(4) PREVENTION OF DOUBLE BENEFITS.—No 7 eligible student described in paragraph (2) may con- 8 currently receive a grant under both this subsection 9 and— 10 ‘‘(A) subsection (b); or 11 ‘‘(B) subsection (c). 12 ‘‘(5) DURATION LIMIT.—Any period of study 13 covered by a Workforce Pell Grant awarded under 14 this subsection shall be included in determining a 15 student’s duration limit under subsection (d)(5).’’. 16 (b) PROGRAM ELIGIBILITY FOR WORKFORCE PELL 17 GRANTS.—Section 481(b) of the Higher Education Act of 18 1965 (20 U.S.C. 1088(b)) is amended— 19 (1) by redesignating paragraphs (3) and (4) as 20 paragraphs (4) and (5), respectively; and 21 (2) by inserting after paragraph (2) the fol- 22 lowing: 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00207 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 208 •HR 1 RH ‘‘(3)(A) A program is an eligible program for pur- 1 poses of the Workforce Pell Grant program under section 2 401(k) only if— 3 ‘‘(i) it is a program of at least 150 clock hours 4 of instruction, but less than 600 clock hours of in- 5 struction, or an equivalent number of credit hours, 6 offered by an eligible institution during a minimum 7 of 8 weeks, but less than 15 weeks; 8 ‘‘(ii) it is not offered as a correspondence 9 course, as defined in 600.2 of title 34, Code of Fed- 10 eral Regulations (as in effect on September 20, 11 2020); 12 ‘‘(iii) the Governor of a State, after consulta- 13 tion with the State board, determines that the pro- 14 gram— 15 ‘‘(I) provides an education aligned with the 16 requirements of high-skill, high-wage (as identi- 17 fied by the State pursuant to section 122 of the 18 Carl D. Perkins Career and Technical Edu- 19 cation Act (20 U.S.C. 2342)), or in-demand in- 20 dustry sectors or occupations; 21 ‘‘(II) meets the hiring requirements of po- 22 tential employers in the sectors or occupations 23 described in subclause (I); 24 ‘‘(III) either— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00208 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 209 •HR 1 RH ‘‘(aa) leads to a recognized postsec- 1 ondary credential that is stackable and 2 portable across more than one employer; or 3 ‘‘(bb) with respect to students en- 4 rolled in the program— 5 ‘‘(AA) prepares such students for 6 employment in an occupation for 7 which there is only one recognized 8 postsecondary credential; and 9 ‘‘(BB) provides such students 10 with such a credential upon comple- 11 tion of such program; and 12 ‘‘(IV) prepares students to pursue 1 or 13 more certificate or degree programs at 1 or 14 more institutions of higher education (which 15 may include the eligible institution providing 16 the program), including by ensuring— 17 ‘‘(aa) that a student, upon completion 18 of the program and enrollment in such a 19 related certificate or degree program, will 20 receive academic credit for the Workforce 21 Pell program that will be accepted toward 22 meeting such certificate or degree program 23 requirements; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00209 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 210 •HR 1 RH ‘‘(bb) the acceptability of such credit 1 toward meeting such certificate or degree 2 program requirements; and 3 ‘‘(iv) after the Governor of such State makes 4 the determination that the program meets the re- 5 quirements under clause (iii), the Secretary deter- 6 mines that— 7 ‘‘(I) the program has been offered by the 8 eligible institution for not less than 1 year prior 9 to the date on which the Secretary makes a de- 10 termination under this clause; 11 ‘‘(II) for each award year, the program has 12 a verified completion rate of at least 70 percent, 13 within 150 percent of the normal time for com- 14 pletion; 15 ‘‘(III) for each award year, the program 16 has a verified job placement rate of at least 70 17 percent, measured 180 days after completion; 18 and 19 ‘‘(IV) for each award year, the median 20 value-added earnings (as defined in section 21 420W) of students who completed such pro- 22 gram for the most recent year for which data 23 is available exceeds the median total price (as 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00210 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 211 •HR 1 RH defined in section 454(d)(3)(D)) charged to stu- 1 dents in such award year. 2 ‘‘(B) In this paragraph: 3 ‘‘(i) The term ‘eligible institution’ means 4 an institution of higher education (as defined in 5 section 102), or any other entity that has en- 6 tered into a program participation agreement 7 with the Secretary under section 487(a) (with- 8 out regard to whether that entity is accredited 9 by a national recognized accrediting agency or 10 association), which has not been subject, during 11 any of the preceding 3 years, to— 12 ‘‘(I) any suspension, emergency ac- 13 tion, or termination under this title; 14 ‘‘(II) in the case of an institution of 15 higher education, any adverse action by the 16 institution’s accrediting agency or associa- 17 tion that revokes or denies accreditation 18 for the institution; or 19 ‘‘(III) any final action by the State in 20 which the institution or other entity holds 21 its legal domicile, authorization, or accredi- 22 tation that revokes the institution’s or enti- 23 ty’s license or other authority to operate in 24 such State. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00211 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 212 •HR 1 RH ‘‘(ii) The term ‘Governor’ means the chief 1 executive of a State. 2 ‘‘(iii) The terms ‘industry or sector part- 3 nership’, ‘in-demand industry sector or occupa- 4 tion’, ‘recognized postsecondary credential’, and 5 ‘State board’ have the meanings given such 6 terms in section 3 of the Workforce Innovation 7 and Opportunity Act.’’. 8 (c) STUDENT ELIGIBILITY.—Section 484(a)(1) of the 9 Higher Education Act of 1965 (20 U.S.C. 1091(a)(1)) is 10 amended by inserting ‘‘or, for purposes of section 401(k), 11 at an entity (other than an institution of higher education) 12 that meets the requirements of section 481(b)(3)(B)(i)’’ 13 after ‘‘section 487’’. 14 (d) EFFECTIVE DATE; APPLICABILITY.—The amend- 15 ments made by this section shall take effect on July 1, 16 2026, and shall apply with respect to award year 2026– 17 2027 and each succeeding award year. 18 SEC. 30033. PELL SHORTFALL. 19 Section 401(b)(7)(A) of the Higher Education Act of 20 1965 (20 U.S.C. 1070a(b)(7)(A)) is amended— 21 (1) in clause (iii)— 22 (A) by striking ‘‘$2,170,000,000’’ and in- 23 serting ‘‘$5,351,000,000’’; and 24 (B) by striking ‘‘and’’ at the end; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00212 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 213 •HR 1 RH (2) in clause (iv)— 1 (A) by striking ‘‘$1,236,000,000’’ and in- 2 serting ‘‘$6,058,000,000’’; and 3 (B) by striking ‘‘ and each succeeding fis- 4 cal year.’’ and inserting a semicolon; and 5 (3) by adding at the end the following: 6 ‘‘(v) $3,743,000,000 for fiscal year 7 2028; and 8 ‘‘(vi) $1,236,000,000 for each suc- 9 ceeding fiscal year.’’. 10 Subtitle E—Accountability 11 SEC. 30041. AGREEMENTS WITH INSTITUTIONS. 12 Section 454 of the Higher Education Act of 1965 (20 13 U.S.C. 1087d) is amended— 14 (1) in subsection (a)— 15 (A) in paragraph (5), by striking ‘‘and’’ 16 after the semicolon; 17 (B) by redesignating paragraph (6) as 18 paragraph (7); and 19 (C) by inserting after paragraph (5) the 20 following new paragraph: 21 ‘‘(6) provide annual reimbursements to the Sec- 22 retary in accordance with the requirements under 23 subsection (d); and’’; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00213 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 214 •HR 1 RH (2) by adding at the end the following new sub- 1 section: 2 ‘‘(d) REIMBURSEMENT REQUIREMENTS.— 3 ‘‘(1) ANNUAL REIMBURSEMENTS REQUIRED.— 4 Beginning in award year 2028–2029, each institu- 5 tion of higher education participating in the direct 6 student loan program under this part shall, for 7 qualifying student loans, remit to the Secretary, at 8 such time as the Secretary may specify, an annual 9 reimbursement for each student cohort of the insti- 10 tution, based on the non-repayment balance of such 11 cohort and calculated in accordance with paragraph 12 (3). 13 ‘‘(2) STUDENT COHORTS.— 14 ‘‘(A) COHORTS ESTABLISHED.—For each 15 institution of higher education participating in 16 the direct student loan program under this 17 part, the Secretary shall establish student co- 18 horts, beginning with award year 2027–2028, 19 as follows: 20 ‘‘(i) COMPLETING STUDENT CO- 21 HORT.—For each program of study at 22 such institution, a student cohort com- 23 prised of all students who received Federal 24 financial assistance under this title and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00214 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 215 •HR 1 RH who completed such program during such 1 award year. 2 ‘‘(ii) UNDERGRADUATE NON-COM- 3 PLETING STUDENT COHORT.—For such in- 4 stitution, a student cohort comprised of all 5 students who received Federal financial as- 6 sistance under this title, who were enrolled 7 in the institution during the previous 8 award year in a program of study leading 9 to an undergraduate credential, and who at 10 the time the cohort is established— 11 ‘‘(I) have not completed such 12 program of study; and 13 ‘‘(II) are not enrolled at the in- 14 stitution in any program of study 15 leading to an undergraduate creden- 16 tial. 17 ‘‘(iii) GRADUATE NON-COMPLETING 18 STUDENT COHORT.—For each program of 19 study leading to a graduate credential at 20 such institution, a student cohort com- 21 prised of all students who received Federal 22 financial assistance under this title, who 23 were enrolled in such program during the 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00215 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 216 •HR 1 RH previous award year, and who at the time 1 the cohort is established— 2 ‘‘(I) have not completed such 3 program of study; and 4 ‘‘(II) are not enrolled in such 5 program. 6 ‘‘(B) QUALIFYING STUDENT LOAN.—For 7 the purposes of this subsection, the term ‘quali- 8 fying student loan’ means a loan made under 9 this part on or after July 1, 2027, that— 10 ‘‘(i) was made to a student included 11 in a student cohort of an institution or to 12 a parent on behalf of such a student; 13 ‘‘(ii) except in the case of a loan de- 14 scribed in clause (i) or (ii) of subparagraph 15 (C), is not included in any other student 16 cohort of any institution of higher edu- 17 cation; 18 ‘‘(iii) is not in— 19 ‘‘(I) a medical or dental intern- 20 ship or residency forbearance de- 21 scribed in section 428(c)(3)(A)(i)(I), 22 section 428B(a)(2), section 428H(a), 23 or section 685.205(a)(3) of title 34, 24 Code of Federal Regulations; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00216 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 217 •HR 1 RH ‘‘(II) a graduate fellowship 1 deferment described in section 2 455(f)(2)(A)(ii); 3 ‘‘(III) rehabilitation training pro- 4 gram deferment described under sec- 5 tion 455(f)(2)(A)(ii); 6 ‘‘(IV) an in-school deferment de- 7 scribed under section 455(f)(2)(A)(i); 8 ‘‘(V) a cancer deferment de- 9 scribed under section 455(f)(3); 10 ‘‘(VI) a military service 11 deferment described under section 12 455(f)(2)(C); or 13 ‘‘(VII) a post-active duty student 14 deferment described under section 15 493D; and 16 ‘‘(iv) is not in default. 17 ‘‘(C) SPECIAL CIRCUMSTANCES.— 18 ‘‘(i) MULTIPLE CREDENTIALS.—In 19 the case of a student who completes two or 20 more programs of study during the same 21 award year, each qualifying student loan of 22 the student shall be included in the student 23 cohort for each of such program of study 24 for such award year. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00217 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 218 •HR 1 RH ‘‘(ii) TREATMENT OF CERTAIN CON- 1 SOLIDATION LOANS.—A Federal Direct 2 Consolidation loan made under this title 3 shall not be considered a qualifying stu- 4 dent loan for a student cohort for an 5 award year if all of the loans included in 6 such consolidation loan are attributable to 7 another student cohort. 8 ‘‘(iii) CONSOLIDATION AFTER INCLU- 9 SION IN A STUDENT COHORT.—If a quali- 10 fying student loan is consolidated into a 11 consolidation loan under this title after 12 such qualifying student loan has been in- 13 cluded in a student cohort, the percentage 14 of the consolidation loan that was attrib- 15 utable to such student cohort at the time 16 of consolidation shall remain attributable 17 to the student cohort for the life of the 18 consolidation loan. 19 ‘‘(3) CALCULATION OF REIMBURSEMENT.— 20 ‘‘(A) REIMBURSEMENT PAYMENT FOR- 21 MULA.—For each student cohort of an institu- 22 tion of higher education established under this 23 subsection, the annual reimbursement for such 24 cohort shall be equal to— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00218 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 219 •HR 1 RH ‘‘(i) the reimbursement percentage for 1 the cohort, determined in accordance with 2 subparagraph (B); multiplied by 3 ‘‘(ii) the non-repayment balance for 4 the cohort for the award year, determined 5 in accordance with subparagraph (C). 6 ‘‘(B) REIMBURSEMENT PERCENTAGE.— 7 The reimbursement percentage of a student co- 8 hort of an institution shall be determined by the 9 Secretary when the cohort is established, shall 10 remain constant for the life of the student co- 11 hort, and shall be determined as follows: 12 ‘‘(i) COMPLETING STUDENT CO- 13 HORTS.—The reimbursement percentage of 14 a completing student cohort shall be equal 15 to the percentage determined by— 16 ‘‘(I) subtracting from one the 17 quotient of— 18 ‘‘(aa) the median value- 19 added earnings of students who 20 completed such program of study 21 in the most recent award year for 22 which such earnings data is 23 available; divided by 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00219 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 220 •HR 1 RH ‘‘(bb) the median total price 1 charged to students included in 2 such cohort; and 3 ‘‘(II) multiplying the difference 4 determined under subclause (I) by 5 100. 6 ‘‘(ii) SPECIAL CIRCUMSTANCES FOR 7 COMPLETING STUDENT COHORTS.— 8 ‘‘(I) HIGH-RISK COHORTS.—Not- 9 withstanding clause (i), if the median 10 value-added earnings of a completing 11 student cohort under clause (i)(I)(aa) 12 is negative, the reimbursement per- 13 centage of the student cohort shall be 14 100 percent. 15 ‘‘(II) LOW-RISK COHORTS.—Not- 16 withstanding clause (i), if the median 17 value-added earnings of a completing 18 student cohort under clause (i)(I)(aa) 19 exceeds the median total price of such 20 cohort under clause (i)(I)(bb), the re- 21 imbursement percentage of the stu- 22 dent cohort shall be 0 percent. 23 ‘‘(iii) NON-COMPLETING STUDENT CO- 24 HORTS.—The reimbursement percentage of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00220 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 221 •HR 1 RH a non-completing student cohort shall be 1 determined based on the most recent data 2 available in the award year in which the 3 cohort is established, and— 4 ‘‘(I) for an undergraduate non- 5 completing student cohort, shall be 6 equal to the percentage of under- 7 graduate students who received Fed- 8 eral financial assistance under this 9 title at such institution who— 10 ‘‘(aa) did not complete an 11 undergraduate program of study 12 at the institution within 150 per- 13 cent of the program length of 14 such program; or 15 ‘‘(bb) only in the case of a 16 two-year institution, did not, 17 within 6 years after first enroll- 18 ing at the two-year institution, 19 complete a program of study at a 20 four-year institution for which a 21 bachelor’s degree (or substan- 22 tially similar credential) is 23 awarded; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00221 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 222 •HR 1 RH ‘‘(II) for a graduate non-com- 1 pleting student cohort, shall be equal 2 to the percentage of students who re- 3 ceived Federal financial assistance 4 under this title at the institution for 5 the applicable graduate program of 6 study and who did not complete such 7 program of study within 150 percent 8 of the program length. 9 ‘‘(C) NON-REPAYMENT LOAN BALANCE.— 10 ‘‘(i) IN GENERAL.—For each award 11 year, the Secretary shall determine the 12 non-repayment loan balance for such 13 award year for each student cohort of an 14 institution of higher education by calcu- 15 lating the sum of— 16 ‘‘(I) for loans in such cohort, the 17 difference between the total amount of 18 payments due from all borrowers on 19 such loans during such year and the 20 total amount of payments made by all 21 such borrowers on such loans during 22 such year; plus 23 ‘‘(II) the total amount of interest 24 waived, paid, or otherwise not charged 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00222 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 223 •HR 1 RH by the Secretary during such year 1 under the income-based repayment 2 plan described in section 455(q); plus 3 ‘‘(III) the total amount of prin- 4 cipal and interest forgiven, cancelled, 5 waived, discharged, repaid, or other- 6 wise reduced by the Secretary under 7 any act during such year that is not 8 included in subclause (II) and was not 9 discharged or forgiven under section 10 437(a), 428J, or section 455(m). 11 ‘‘(ii) SPECIAL CIRCUMSTANCES.—For 12 the purpose of calculating the non-repay- 13 ment loan balance of student cohorts under 14 this paragraph, the Secretary shall— 15 ‘‘(I) for each qualifying student 16 loan in a student cohort that is in- 17 cluded in another student cohort be- 18 cause the student who borrowed such 19 loan completed two or more programs 20 of study during the same award year, 21 the sum of the amounts described in 22 subclauses (I) through (III) of clause 23 (i) for such qualifying student loan 24 shall be divided equally among each of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00223 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 224 •HR 1 RH the student cohorts in which such loan 1 is included; and 2 ‘‘(II) for each consolidation loan 3 in a student cohort— 4 ‘‘(aa) determine the percent- 5 age of the outstanding principal 6 balance of the consolidation loan 7 attributable to such student co- 8 hort— 9 ‘‘(AA) at the time of 10 that loan was included in 11 such cohort, in the case of a 12 loan consolidated before in- 13 clusion in such cohort; or 14 ‘‘(BB) at the time of 15 consolidation, in the case of 16 a loan consolidated after in- 17 clusion in such cohort; and 18 ‘‘(bb) include in the calcula- 19 tions under clause (i) for such 20 student cohort only the percent- 21 age of the sum of the amounts 22 described in subclauses (I) 23 through (III) of clause (i) for the 24 consolidation loan for such year 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00224 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 225 •HR 1 RH that is equal to the percentage of 1 the consolidation loan determined 2 under item (aa). 3 ‘‘(D) TOTAL PRICE.—With respect to a 4 student who received Federal financial assist- 5 ance under this title and who completes a pro- 6 gram of study, the term ‘total price’ means the 7 total amount, before Federal financial assist- 8 ance under this title was applied, a student was 9 required to pay to complete the program of 10 study. A student’s total price shall be calculated 11 by the Secretary as the difference between— 12 ‘‘(i) the total amount of tuition and 13 fees that were charged to such student be- 14 fore the application of any Federal finan- 15 cial assistance provided under this title; 16 minus 17 ‘‘(ii) the total amount of grants and 18 scholarships described in section 480(i) 19 awarded to such student from non-Federal 20 sources for such program of study. 21 ‘‘(4) NOTIFICATION AND REMITTANCE.—Begin- 22 ning with the first award year for which reimburse- 23 ments are required under this subsection, and for 24 each succeeding award year, the Secretary shall— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00225 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 226 •HR 1 RH ‘‘(A) notify each institution of higher edu- 1 cation of the amounts and due dates of each 2 annual reimbursement calculated under para- 3 graph (3) for each student cohort of the institu- 4 tion within 30 days of calculating such 5 amounts; and 6 ‘‘(B) require the institution to remit such 7 payments within 90 days of such notification. 8 ‘‘(5) PENALTY FOR LATE PAYMENTS.— 9 ‘‘(A) THREE-MONTH DELINQUENCY.—If 10 an institution fails to remit to the Secretary a 11 reimbursement for a student cohort as required 12 under this subsection within 90 days of receiv- 13 ing notification from the Secretary in accord- 14 ance with paragraph (4), the institution shall 15 pay to the Secretary, in addition to such reim- 16 bursement, interest on such reimbursement 17 payment, at a rate that is the average rate ap- 18 plicable to the loans in such student cohort. 19 ‘‘(B) TWELVE-MONTH DELINQUENCY.—If 20 an institution fails to remit to the Secretary a 21 reimbursement for a student cohort as required 22 under this subsection, plus interest owed in 23 under subparagraph (A), within 12 months of 24 receiving notification from the Secretary in ac- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00226 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 227 •HR 1 RH cordance with paragraph (4), the institution 1 shall be ineligible to make direct loans to any 2 student enrolled in the program of study for 3 which the institution has failed to make the re- 4 imbursement payments until such payment is 5 made. 6 ‘‘(C) EIGHTEEN-MONTH DELINQUENCY.— 7 If an institution fails to remit to the Secretary 8 a reimbursement for a student cohort as re- 9 quired under this subsection, plus interest owed 10 under subparagraph (A), within 18 months of 11 receiving notification from the Secretary in ac- 12 cordance with paragraph (4), the institution 13 shall be ineligible to make direct loans or award 14 Federal Pell Grants under section 401 to any 15 student enrolled in the institution until such 16 payment is made. 17 ‘‘(D) TWO-YEAR DELINQUENCY.—If an in- 18 stitution fails to remit to the Secretary a reim- 19 bursement for a student cohort as required 20 under this subsection, plus interest owed under 21 subparagraph (A), within 2 years of receiving 22 notification from the Secretary in accordance 23 with paragraph (4), the institution shall be in- 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00227 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 228 •HR 1 RH eligible to participate in any program under this 1 title for a period of not less than 10 years. 2 ‘‘(6) RELIEF FOR VOLUNTARY CESSATION OF 3 FEDERAL DIRECT LOANS FOR A PROGRAM OF 4 STUDY.—The Secretary shall, upon the request of an 5 institution that voluntarily ceases to make Federal 6 Direct loans to students enrolled in a specific pro- 7 gram of study, reduce the amount of the annual re- 8 imbursement owed by the institution for each stu- 9 dent cohort associated with such program by 50 per- 10 cent if the institution assures the Secretary that the 11 institution will not make Federal Direct loans to any 12 student enrolled in such program of study (or any 13 substantially similar program of study, as deter- 14 mined by the Secretary) for a period of not less than 15 10 award years, beginning with the first award year 16 that begins after the date on which the Secretary re- 17 duces such reimbursement. 18 ‘‘(7) RESERVATION OF FUNDS FOR PROMISE 19 GRANTS.—Notwithstanding any other provision of 20 law, the Secretary shall reserve the funds remitted 21 to the Secretary as reimbursements in accordance 22 with this subsection, and such funds shall be made 23 available to the Secretary only for the purpose of 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00228 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 229 •HR 1 RH awarding PROMISE grants in accordance with sub- 1 part 11 of part A of this title.’’. 2 SEC. 30042. CAMPUS-BASED AID PROGRAMS. 3 (a) PROMISE GRANTS.—Part A of title IV of the 4 Higher Education Act of 1965 (20 U.S.C. 1070c et seq.) 5 is amended by adding at the end the following: 6 ‘‘Subpart 11—Promoting Real Opportunities to 7 Maximize Investments and Savings in Education 8 ‘‘SEC. 420S. PROMISE GRANTS. 9 ‘‘For award year 2028–2029 and each succeeding 10 award year, from reserved funds remitted to the Secretary 11 in accordance with section 454(d) and additional funds 12 made available under section 420V, as necessary, the Sec- 13 retary shall award PROMISE grants to eligible institu- 14 tions to carry out the activities described in section 15 420U(c). PROMISE grants awarded under this subpart 16 shall be awarded on a noncompetitive basis to each eligible 17 institution that submits a satisfactory application under 18 section 420T for a 6-year period in an amount that is de- 19 termined in accordance with section 420U. 20 ‘‘SEC. 420T. ELIGIBLE INSTITUTIONS; APPLICATION. 21 ‘‘(a) ELIGIBLE INSTITUTION.—To be eligible for a 22 PROMISE grant under this subpart, an institution 23 shall— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00229 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 230 •HR 1 RH ‘‘(1) be an institution of higher education under 1 section 102, except that an institution described in 2 section 102(a)(1)(C) shall not be an eligible institu- 3 tion under this subpart; and 4 ‘‘(2) meet the maximum total price guarantee 5 requirements under subsection (c). 6 ‘‘(b) APPLICATION.—An eligible institution seeking a 7 PROMISE grant under this subpart (including a renewal 8 of such a grant) shall submit to the Secretary an applica- 9 tion, at such time as the Secretary may require, containing 10 the information required under this subsection. Such ap- 11 plication shall— 12 ‘‘(1) demonstrate that the institution— 13 ‘‘(A) meets the maximum total price guar- 14 antee requirements under subsection (c); and 15 ‘‘(B) will continue to meet the maximum 16 total price guarantee requirements for each 17 award year during the grant period with respect 18 to students first enrolling at the institution for 19 each such award year; 20 ‘‘(2) describe how grant funds awarded under 21 this subpart will be used by the institution to carry 22 out activities related to— 23 ‘‘(A) increasing postsecondary afford- 24 ability, including— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00230 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 231 •HR 1 RH ‘‘(i) the expansion and continuation of 1 the maximum total price guarantee re- 2 quirements under subsection (c); and 3 ‘‘(ii) any other activities to be carried 4 out by the institution to increase postsec- 5 ondary affordability and minimize the max- 6 imum total price for completion paid by 7 students receiving need-based student aid; 8 ‘‘(B) increasing postsecondary access, 9 which may include— 10 ‘‘(i) the activities described in section 11 485E of this Act; and 12 ‘‘(ii) any other activities to be carried 13 out by the institution to increase postsec- 14 ondary access and expand opportunities for 15 low- and middle-income students; and 16 ‘‘(C) increasing postsecondary student suc- 17 cess, which may include— 18 ‘‘(i) activities to improve completion 19 rates and reduce time to credential; 20 ‘‘(ii) activities to align programs of 21 study with the needs of employers, includ- 22 ing with respect to in-demand industry sec- 23 tors or occupations (as defined in section 3 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00231 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 232 •HR 1 RH of the Workforce Innovation and Oppor- 1 tunity Act (29 U.S.C. 3102)); and 2 ‘‘(iii) any other activities to be carried 3 out by the institution to increase value- 4 added earnings and postsecondary student 5 success; 6 ‘‘(3) describe— 7 ‘‘(A) how the institution will evaluate the 8 effectiveness of the institution’s use of grant 9 funds awarded under this subpart; and 10 ‘‘(B) how the institution will collect and 11 disseminate information on promising practices 12 developed with the use of such grant funds; and 13 ‘‘(4) in the case of an institution that has pre- 14 viously received a grant under this subpart, contain 15 the evaluation required under paragraph (3) for 16 each previous grant. 17 ‘‘(c) MAXIMUM TOTAL PRICE GUARANTEE REQUIRE- 18 MENTS.—As a condition of eligibility for a PROMISE 19 grant under this subpart, an institution shall— 20 ‘‘(1) for each award year beginning after the 21 date of enactment of this subpart, not later than 1 22 year before the start of each such award year (ex- 23 cept that, for the first award year beginning after 24 such date of enactment, the institution shall meet 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00232 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 233 •HR 1 RH these requirements as soon as practicable after such 1 date of enactment), determine the maximum total 2 price for completion, in accordance with subsection 3 (e), for each program of study at the institution ap- 4 plicable to students in each income category and stu- 5 dent aid index category (as determined by the Sec- 6 retary) and publish such information on the institu- 7 tion’s website and in the institution’s catalog, mar- 8 keting materials, or other official publications; 9 ‘‘(2) for the award year for which the institu- 10 tion is applying for a PROMISE grant, and at least 11 1 award year preceding such award year, provide to 12 each student who first enrolls, or plans to enroll, in 13 the institution during the award year and who re- 14 ceives Federal financial aid under this title a max- 15 imum total price guarantee, in accordance with this 16 section, for the minimum guarantee period applica- 17 ble to the student; and 18 ‘‘(3) provide to the Secretary an assurance that 19 the institution will continue to meet each of the 20 maximum total price guarantee requirements under 21 this subsection for students who first enroll, or plan 22 to enroll, in the institution during each award year 23 included in the grant period. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00233 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 234 •HR 1 RH ‘‘(d) DURATION OF MINIMUM GUARANTEE PE- 1 RIOD.— 2 ‘‘(1) IN GENERAL.—The minimum period dur- 3 ing which a student shall be provided a guarantee 4 under subsection (c) with respect to the maximum 5 total price for completion of a program of study at 6 an institution shall be the average, for the 3 most 7 recent award years for which data are available, of 8 the median time to credential of students who com- 9 pleted any undergraduate program of study at the 10 institution during each such award year, except that 11 such minimum guarantee period shall not be less 12 than the program length of the program of study in 13 which the student is enrolled. 14 ‘‘(2) LIMITATION.—An institution shall not be 15 required to provide a maximum total price guarantee 16 under subsection (c) to a student after the conclu- 17 sion of the 6-year period beginning on the first day 18 on which the student enrolled at such institution. 19 ‘‘(e) DETERMINATION OF MAXIMUM TOTAL PRICE 20 FOR COMPLETION.— 21 ‘‘(1) IN GENERAL.—For the purposes of sub- 22 section (c), an institution shall determine, prior to 23 the first award year in which a student enrolls at 24 the institution, the maximum total price that may be 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00234 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 235 •HR 1 RH charged to the student for completion of a program 1 of study at the institution for the minimum guar- 2 antee period applicable to a student, before applica- 3 tion of any Federal Pell Grants or other Federal fi- 4 nancial aid under this title. Such a maximum total 5 price for completion shall be determined for students 6 in each income category and student aid index cat- 7 egory (as determined by the Secretary). In deter- 8 mining the maximum total price for completion to be 9 charged to each such category of students, the insti- 10 tution may consider the ability of a category of stu- 11 dents to pay tuition and fees, but may not include 12 in such consideration any Federal Pell Grants or 13 other Federal financial aid awards that may be 14 available to such category of students under this 15 title. 16 ‘‘(2) MULTIPLE MAXIMUM TOTAL PRICE GUAR- 17 ANTEES.—In the event that a student receives more 18 than 1 maximum total price guarantee because the 19 student is included in more than 1 category of stu- 20 dents for which the institution determines a max- 21 imum total price guarantee amount for the purposes 22 of subsection (c), the maximum total price guarantee 23 applicable to such student for the purposes of this 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00235 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 236 •HR 1 RH section shall be equal to the lowest such guarantee 1 amount. 2 ‘‘SEC. 420U. GRANT AMOUNTS; FLEXIBLE USE OF FUNDS. 3 ‘‘(a) GRANT AMOUNT FORMULA.— 4 ‘‘(1) FORMULA.—Subject to subsection (b) and 5 section 420V(b), the amount of a PROMISE grant 6 for an eligible institution for each year of the grant 7 period shall be calculated by the Secretary annually 8 and shall be equal to the amount determined by 9 multiplying— 10 ‘‘(A) the lesser of— 11 ‘‘(i) the difference determined by sub- 12 tracting one from the quotient of— 13 ‘‘(I) the average, for the 3 most 14 recent award years for which data are 15 available, of the median value-added 16 earnings for each such award year of 17 students who completed any program 18 of study of the institution; divided by 19 ‘‘(II) the average, for the 3 most 20 recent award years for which data are 21 available, of the maximum total price 22 for completion determined under sec- 23 tion 420T(e) applicable for each such 24 award year to students enrolled in the 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00236 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 237 •HR 1 RH institution in any program of study 1 who received financial aid under this 2 title; or 3 ‘‘(ii) the number two; 4 ‘‘(B) the average, for the 3 most recent 5 award years for which data are available, of the 6 total dollar amount of Federal Pell Grants 7 awarded to students enrolled in the institution 8 in each such award year; and 9 ‘‘(C) the average, for the 3 most recent 10 award years for which data are available, of the 11 percentage of low-income students who received 12 Federal financial assistance under this title who 13 were enrolled in the institution in each such 14 award year who— 15 ‘‘(i) completed a program of study at 16 the institution within 100 percent of the 17 program length of such program; or 18 ‘‘(ii) only in the case of a two-year in- 19 stitution or a less than two-year institu- 20 tion— 21 ‘‘(I) transfer to a four-year insti- 22 tution; and 23 ‘‘(II) within 4 years after first 24 enrolling at the two-year or less than 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00237 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 238 •HR 1 RH two-year institution, complete a pro- 1 gram of study at the four-year institu- 2 tion for which a bachelor’s degree (or 3 substantially similar credential) is 4 awarded. 5 ‘‘(2) DEFINITION OF LOW-INCOME.—In this 6 section, the term ‘low-income’, when used with re- 7 spect to a student, means that the student’s family 8 income does not exceed the maximum income in the 9 lowest income category (as determined by the Sec- 10 retary). 11 ‘‘(b) MAXIMUM GRANT AMOUNT.—Notwithstanding 12 subsection (a), the maximum amount an eligible institu- 13 tion may receive annually for a grant under this subpart 14 shall be the amount equal to— 15 ‘‘(1) the average, for the 3 most recent award 16 years, of the number of students enrolled in the in- 17 stitution in an award year who receive Federal fi- 18 nancial aid under this title; multiplied by 19 ‘‘(2) $5,000. 20 ‘‘(c) FLEXIBLE USE OF FUNDS.—A PROMISE 21 grant awarded under this subpart shall be used by an eli- 22 gible institution to— 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00238 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 239 •HR 1 RH ‘‘(1) carry out activities included in the institu- 1 tion’s application for such grant related to postsec- 2 ondary affordability, access, and student success; 3 ‘‘(2) evaluate the effectiveness of the activities 4 carried out with such grant in accordance with sec- 5 tion 420T(b)(3)(A); and 6 ‘‘(3) collect and disseminate promising practices 7 related to the activities carried out with such grant, 8 in accordance with section 420T(b)(3)(B). 9 ‘‘SEC. 420V. AVAILABILITY OF FUNDS. 10 ‘‘(a) USED OF RESERVED FUNDS.— 11 ‘‘(1) PRIMARY FUNDS.—To carry out this sub- 12 part, there shall be available to the Secretary any 13 funds remitted to the Secretary as reimbursements 14 in accordance with section 454(d) for any award 15 year. 16 ‘‘(2) SECONDARY FUNDS.—Beginning award 17 year 2028–2029, if the amounts made available to 18 the Secretary under paragraph (1) to carry out this 19 subpart in any award year are insufficient to fully 20 fund the PROMISE grants awarded under this sub- 21 part in such award year, there shall be available to 22 the Secretary, in addition to such amounts, any 23 funds returned to the Secretary under section 484B 24 in the previous award year. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00239 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 240 •HR 1 RH ‘‘(b) REDUCTION OF GRANT AMOUNT IN CASE OF IN- 1 SUFFICIENT FUNDS.— 2 ‘‘(1) IN GENERAL.—If the amounts made avail- 3 able to the Secretary under subsection (a) to carry 4 out this subpart for an award year are not sufficient 5 to provide grants to each eligible institution in the 6 amount determined under section 420U for such 7 award year, the Secretary shall reduce each such 8 grant amount by the applicable percentage described 9 in paragraph (2). 10 ‘‘(2) APPLICABLE PERCENTAGE.—The applica- 11 ble percentage described in this paragraph is the 12 percentage determined by dividing— 13 ‘‘(A) the amounts made available under 14 subsection (a) for the award year described in 15 paragraph (1); by 16 ‘‘(B) the total amount that would be nec- 17 essary to provide grants to all eligible institu- 18 tions in the amounts determined under section 19 420U for such award year. 20 ‘‘SEC. 420W. DEFINITIONS. 21 ‘‘In this title: 22 ‘‘(1) VALUE-ADDED EARNINGS.— 23 ‘‘(A) IN GENERAL.—With respect to a stu- 24 dent who received Federal financial aid under 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00240 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 241 •HR 1 RH this title and who completed a program of study 1 offered by an institution of higher education, 2 the term ‘value-added earnings’ means— 3 ‘‘(i) the annual earnings of such stu- 4 dent measured during the applicable earn- 5 ings measurement period for such program 6 (as determined under subparagraph (C)); 7 minus 8 ‘‘(ii) in the case of a student who 9 completed a program of study that 10 awards— 11 ‘‘(I) an undergraduate credential, 12 150 percent of the poverty line appli- 13 cable to a single individual as deter- 14 mined under section 673(2) of the 15 Community Services Block Grant Act 16 (42 U.S.C. 9902(2)) for such year; or 17 ‘‘(II) a graduate credential, 300 18 percent of the poverty line applicable 19 to a single individual as determined 20 under section 673(2) of the Commu- 21 nity Services Block Grant Act (42 22 U.S.C. 9902(2)) for such year. 23 ‘‘(B) GEOGRAPHIC ADJUSTMENT.— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00241 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 242 •HR 1 RH ‘‘(i) IN GENERAL.—Except as pro- 1 vided in clause (ii), the Secretary shall use 2 the geographic location of the institution at 3 which a student completed a program of 4 study to adjust the value-added earnings of 5 the student calculated under subparagraph 6 (A) by dividing— 7 ‘‘(I) the difference between 8 clauses (i) and (ii) of such subpara- 9 graph; by 10 ‘‘(II) the most recent regional 11 price parity index of the Bureau of 12 Economics Analysis for the State or, 13 as applicable, metropolitan area in 14 which such institution is located. 15 ‘‘(ii) EXCEPTION.—The value-added 16 earnings of a student calculated under sub- 17 paragraph (A) shall not be adjusted based 18 on geographic location in accordance with 19 clause (i) if such student attended prin- 20 cipally through distance education. 21 ‘‘(C) EARNINGS MEASUREMENT PERIOD.— 22 ‘‘(i) IN GENERAL.—For the purpose 23 of calculating the value-added earnings of 24 a student, except as provided in clause (ii), 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00242 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 243 •HR 1 RH the annual earnings of a student shall be 1 measured— 2 ‘‘(I) in the case of a program of 3 study that awards an undergraduate 4 certificate, post baccalaureate certifi- 5 cate, or graduate certificate, 1 year 6 after the student completes such pro- 7 gram; 8 ‘‘(II) in the case of a program of 9 study that awards an associate’s de- 10 gree or master’s degree, 2 years after 11 the student completes such program; 12 and 13 ‘‘(III) in the case of a program of 14 study that awards a bachelor’s degree, 15 doctoral degree, or professional de- 16 gree, 4 years after the student com- 17 pletes such program. 18 ‘‘(ii) EXCEPTION.—The Secretary 19 may, as the Secretary determines appro- 20 priate based on the characteristics of a 21 program of study, extend an earnings 22 measurement period described in clause (i) 23 for a program of study that— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00243 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 244 •HR 1 RH ‘‘(I) requires completion of an 1 additional educational program after 2 completion of the program of study in 3 order to obtain a licensure associated 4 with the credential awarded for such 5 program of study; and 6 ‘‘(II) when combined with the 7 program length of such additional 8 educational program for licensure, has 9 a total program length that exceeds 10 the relevant earnings measurement 11 period prescribed for such program of 12 study under clause (i), 13 except that in no case shall the annual 14 earnings of a student be measured more 15 than 1 year after the student completes 16 such additional educational program. 17 ‘‘(2) PROGRAM LENGTH.—The term ‘program 18 length’ means the minimum amount of time in 19 weeks, months, or years that is specified in the cata- 20 log, marketing materials, or other official publica- 21 tions of an institution of higher education for a full- 22 time student to complete the requirements for a spe- 23 cific program of study.’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00244 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 245 •HR 1 RH (b) INSTITUTIONAL REFUNDS.—Section 484B of the 1 Higher Education Act of 1965 (20 U.S.C. 1091b) is 2 amended by adding at the end the following: 3 ‘‘(f) RESERVATION OF FUNDS FOR PROMISE 4 GRANTS.—Notwithstanding any other provision of law, 5 the Secretary shall reserve the funds returned to the Sec- 6 retary under this section for 1 year after the return of 7 such funds for the purpose of awarding PROMISE grants 8 in accordance with subpart 4 of part A of this title.’’. 9 Subtitle F—Regulatory Relief 10 SEC. 30051. REGULATORY RELIEF. 11 (a) 90/10 RULE.—Section 487 of the Higher Edu- 12 cation Act of 1965 (20 U.S.C. 1094) is amended— 13 (1) in subsection (a), by repealing paragraph 14 (24); 15 (2) by striking subsection (d); and 16 (3) by redesignating subsections (e) through (j) 17 as subsections (d) through (i), respectively. 18 (b) GAINFUL EMPLOYMENT.—The Higher Education 19 Act of 1965 (20 U.S.C. 1001 et seq.) is amended— 20 (1) in section 101(b)(1), by striking ‘‘gainful 21 employment in’’; 22 (2) in section 102— 23 (A) in subsection (b)(1)(A)(i), by striking 24 ‘‘gainful employment in’’; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00245 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 246 •HR 1 RH (B) in subsection (c)(1)(A), by striking 1 ‘‘gainful employment in’’; and 2 (3) in section 481(b)(1)(A)(i), by striking 3 ‘‘gainful employment in’’. 4 (c) OTHER REPEALS.—The following regulations (in- 5 cluding any supplement or revision to such regulations) 6 are repealed and shall have no legal effect: 7 (1) CLOSED SCHOOL DISCHARGES.—Sections 8 674.33(g), 682.402(d), and 685.214 of title 34, 9 Code of Federal Regulations (relating to closed 10 school discharges), as added or amended by the final 11 regulations published by the Department of Edu- 12 cation in the Federal Register on November 1, 2022 13 (87 Fed. Reg. 65904 et seq.). 14 (2) BORROWER DEFENSE TO REPAYMENT.— 15 Subpart D of part 685 of title 34, Code of Federal 16 Regulations (relating to borrower defense to repay- 17 ment), as added or amended by the final regulations 18 published by the Department of Education in the 19 Federal Register on November 1, 2022 (87 Fed. 20 Reg. 65904 et seq.). 21 (d) EFFECT OF REPEAL.—Any regulations repealed 22 by subsection (c) that were in effect on June 30, 2023, 23 are restored and revived as if the repeal of such regula- 24 tions under such subsection had not taken effect. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00246 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 247 •HR 1 RH (e) PROHIBITION.—The Secretary of Education may 1 not implement any rule, regulation, policy, or executive ac- 2 tion specified in this section (or a substantially similar 3 rule, regulation, policy, or executive action) unless author- 4 ity for such implementation is explicitly provided in an Act 5 of Congress. 6 Subtitle G—Limitation on 7 Authority 8 SEC. 30061. LIMITATION ON AUTHORITY OF THE SEC- 9 RETARY TO PROPOSE OR ISSUE REGULA- 10 TIONS AND EXECUTIVE ACTIONS. 11 Part G of title IV of the Higher Education Act of 12 1965 (20 U.S.C. 1088 et seq.) is amended by inserting 13 after section 492 the following: 14 ‘‘SEC. 492A. LIMITATION ON AUTHORITY OF THE SEC- 15 RETARY TO PROPOSE OR ISSUE REGULA- 16 TIONS AND EXECUTIVE ACTIONS. 17 ‘‘(a) DRAFT REGULATIONS.—Beginning on the date 18 of enactment of this section, a draft regulation imple- 19 menting this title (as described in section 492(b)(1)) that 20 is determined by the Secretary to be economically signifi- 21 cant shall be subject to the following requirements (re- 22 gardless of whether negotiated rulemaking occurs): 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00247 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 248 •HR 1 RH ‘‘(1) The Secretary shall determine whether the 1 draft regulation, if implemented, would result in an 2 increase in a subsidy cost. 3 ‘‘(2) If the Secretary determines under para- 4 graph (1) that the draft regulation would result in 5 an increase in a subsidy cost, then the Secretary 6 may not take any further action with respect to such 7 regulation. 8 ‘‘(b) PROPOSED OR FINAL REGULATIONS AND EXEC- 9 UTIVE ACTIONS.—Beginning on the date of enactment of 10 this section, the Secretary may not issue a proposed rule, 11 final regulation, or executive action implementing this title 12 if the Secretary determines that the rule, regulation, or 13 executive action— 14 ‘‘(1) is economically significant; and 15 ‘‘(2) would result in an increase in a subsidy 16 cost. 17 ‘‘(c) RELATIONSHIP TO OTHER REQUIREMENTS.— 18 The analyses required under subsections (a) and (b) shall 19 be in addition to any other cost analysis required under 20 law for a regulation implementing this title, including any 21 cost analysis that may be required pursuant to Executive 22 Order 12866 (58 Fed. Reg. 51735; relating to regulatory 23 planning and review), Executive Order 13563 (76 Fed. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00248 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 249 •HR 1 RH Reg. 3821; relating to improving regulation and regu- 1 latory review), or any related or successor orders. 2 ‘‘(d) DEFINITION.—In this section, the term ‘eco- 3 nomically significant’, when used with respect to a draft, 4 proposed, or final regulation or executive action, means 5 that the regulation or executive action is likely, as deter- 6 mined by the Secretary— 7 ‘‘(1) to have an annual effect on the economy 8 of $100,000,000 or more; or 9 ‘‘(2) to adversely affect in a material way the 10 economy, a sector of the economy, productivity, com- 11 petition, jobs, the environment, public health or safe- 12 ty, or State, local, or tribal governments or commu- 13 nities.’’. 14 TITLE IV—ENERGY AND 15 COMMERCE 16 Subtitle A—Energy 17 SEC. 41001. RESCISSIONS RELATING TO CERTAIN INFLA- 18 TION REDUCTION ACT PROGRAMS. 19 (a) STATE-BASED HOME ENERGY EFFICIENCY CON- 20 TRACTOR TRAINING GRANTS.—The unobligated balance 21 of any amounts made available under subsection (a) of 22 section 50123 of Public Law 117–169 (42 U.S.C. 18795b) 23 is rescinded. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00249 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 250 •HR 1 RH (b) FUNDING FOR DEPARTMENT OF ENERGY LOAN 1 PROGRAMS OFFICE.—The unobligated balance of any 2 amounts made available under subsection (b) of section 3 50141 of Public Law 117–169 (136 Stat. 2042) is re- 4 scinded. 5 (c) ADVANCED TECHNOLOGY VEHICLE MANUFAC- 6 TURING.—The unobligated balance of any amounts made 7 available under subsection (a) of section 50142 of Public 8 Law 117–169 (136 Stat. 2044) is rescinded. 9 (d) ENERGY INFRASTRUCTURE REINVESTMENT FI- 10 NANCING.—The unobligated balance of any amounts made 11 available under subsection (a) of section 50144 of Public 12 Law 117–169 (136 Stat. 2044) is rescinded. 13 (e) TRIBAL ENERGY LOAN GUARANTEE PROGRAM.— 14 The unobligated balance of any amounts made available 15 under subsection (a) of section 50145 of Public Law 117– 16 169 (136 Stat. 2045) is rescinded. 17 (f) TRANSMISSION FACILITY FINANCING.—The un- 18 obligated balance of any amounts made available under 19 subsection (a) of section 50151 of Public Law 117–169 20 (42 U.S.C. 18715) is rescinded. 21 (g) GRANTS TO FACILITATE THE SITING OF INTER- 22 STATE ELECTRICITY TRANSMISSION LINES.—The unobli- 23 gated balance of any amounts made available under sub- 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00250 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 251 •HR 1 RH section (a) of section 50152 of Public Law 117–169 (42 1 U.S.C. 18715a) is rescinded. 2 (h) INTERREGIONAL AND OFFSHORE WIND ELEC- 3 TRICITY TRANSMISSION PLANNING, MODELING, AND 4 ANALYSIS.—The unobligated balance of any amounts 5 made available under subsection (a) of section 50153 of 6 Public Law 117–169 (42 U.S.C. 18715b) is rescinded. 7 (i) ADVANCED INDUSTRIAL FACILITIES DEPLOY- 8 MENT PROGRAM.—The unobligated balance of any 9 amounts made available under subsection (a) of section 10 50161 of Public Law 117–169 (42 U.S.C. 17113a) is re- 11 scinded. 12 SEC. 41002. FERC CERTIFICATES AND FEES FOR CERTAIN 13 ENERGY INFRASTRUCTURE AT INTER- 14 NATIONAL BOUNDARIES OF THE UNITED 15 STATES. 16 (a) DEFINITIONS.—In this section: 17 (1) CERTIFICATE OF CROSSING.—The term 18 ‘‘certificate of crossing’’ means a permit for the con- 19 struction, connection, operation, or maintenance of a 20 cross-border segment. 21 (2) COMMISSION.—The term ‘‘Commission’’ 22 means the Federal Energy Regulatory Commission. 23 (3) COVERED FACILITY.—The term ‘‘covered 24 facility’’ means— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00251 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 252 •HR 1 RH (A) an oil, natural gas, hydrocarbon liq- 1 uids, refined petroleum products, hydrogen, or 2 carbon dioxide pipeline; 3 (B) a pipeline for the movement of any 4 other energy-related product; and 5 (C) an electric transmission facility. 6 (4) CROSS-BORDER SEGMENT.—The term 7 ‘‘cross-border segment’’ means a segment, as deter- 8 mined by the Commission, of a covered facility that 9 is located at an international boundary between— 10 (A) the United States and Canada; or 11 (B) the United States and Mexico. 12 (5) PRESIDENTIAL PERMIT.—The term ‘‘Presi- 13 dential permit’’ means a permit or other approval 14 issued or required by the President under or pursu- 15 ant to any provision of law, including under or pur- 16 suant to any Executive order, with respect to the 17 construction, connection, operation, or maintenance 18 of a cross-border segment. 19 (b) CERTIFICATE OF CROSSING AND FEE.— 20 (1) IN GENERAL.—The Commission shall, upon 21 payment of a fee in the amount of $50,000 by a per- 22 son requesting a certificate of crossing, issue to such 23 person such certificate of crossing. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00252 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 253 •HR 1 RH (2) TREATMENT OF FEE.—A fee paid under 1 this subsection shall not be considered a fee assessed 2 under section 3401 of the Omnibus Budget Rec- 3 onciliation Act of 1986 (42 U.S.C. 7178). 4 (c) PROHIBITION.—Except as provided in subsection 5 (d), no person may construct, connect, operate, or main- 6 tain a cross-border segment for the import or export of 7 oil, natural gas, hydrocarbon liquids, refined petroleum 8 products, hydrogen, carbon dioxide, or other energy-re- 9 lated products, or for the transmission of electricity, to 10 or from Canada or Mexico without obtaining a certificate 11 of crossing from the Commission under subsection (b) for 12 the applicable construction, connection, operation, or 13 maintenance. 14 (d) PREVIOUSLY AUTHORIZED FACILITIES.—Sub- 15 section (c) shall not apply to the construction, connection, 16 operation, or maintenance of a cross-border segment with 17 respect to which a Presidential permit that was issued be- 18 fore the date of enactment of this Act applies and is in 19 effect. 20 SEC. 41003. NATURAL GAS EXPORTS AND IMPORTS. 21 Section 3 of the Natural Gas Act (15 U.S.C. 717b) 22 is amended by adding at the end the following: 23 ‘‘(g) CHARGE FOR EXPORTATION OR IMPORTATION 24 OF NATURAL GAS.—The Secretary of Energy shall, by 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00253 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 254 •HR 1 RH rule, impose and collect, for each application to export nat- 1 ural gas from the United States to a foreign country with 2 which there is not in effect a free trade agreement requir- 3 ing national treatment for trade in natural gas, or to im- 4 port natural gas from such a foreign country, a non- 5 refundable charge of $1,000,000, and, for purposes of sub- 6 section (a), the importation or exportation of natural gas 7 that is proposed in an application for which such a non- 8 refundable charge was imposed and collected shall be 9 deemed to be in the public interest, and such an applica- 10 tion shall be granted without modification or delay.’’. 11 SEC. 41004. FUNDING FOR DEPARTMENT OF ENERGY LOAN 12 GUARANTEE EXPENSES. 13 In addition to amounts otherwise available, there is 14 appropriated to the Secretary of Energy, out of any money 15 in the Treasury not otherwise appropriated, $5,000,000, 16 to remain available for a period of five years for adminis- 17 trative expenses associated with carrying out section 116 18 of the Alaska Natural Gas Pipeline Act (15 U.S.C. 720n). 19 SEC. 41005. EXPEDITED PERMITTING. 20 The Natural Gas Act is amended by adding after sec- 21 tion 15 (15 U.S.C. 717n) the following: 22 ‘‘SEC. 15A. EXPEDITED PERMITTING. 23 ‘‘(a) DEFINITIONS.—In this section: 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00254 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 255 •HR 1 RH ‘‘(1) COVERED APPLICATION.—The term ‘cov- 1 ered application’ means an application for an au- 2 thorization under section 3 or a certificate of public 3 convenience and necessity under section 7, as appli- 4 cable, for activities that include construction. 5 ‘‘(2) FEDERAL AUTHORIZATION.—The term 6 ‘Federal authorization’ has the meaning given such 7 term in section 15(a). 8 ‘‘(b) EXPEDITED REVIEW.— 9 ‘‘(1) NOTIFICATION OF ELECTION AND PAY- 10 MENT OF FEE.—Prior to submitting a covered appli- 11 cation, an applicant may elect to obtain an expedited 12 review of all Federal authorizations required for the 13 approval of such covered application by— 14 ‘‘(A) submitting to the Commission a writ- 15 ten notification— 16 ‘‘(i) of the election; and 17 ‘‘(ii) that identifies each Federal au- 18 thorization required for the approval of the 19 covered application and each Federal, 20 State, interstate, or Tribal agency that will 21 consider an aspect of each such Federal 22 authorization; and 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00255 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 256 •HR 1 RH ‘‘(B) making a payment to the Secretary 1 of the Treasury in an amount that is the lesser 2 of— 3 ‘‘(i) one percent of the expected cost 4 of the applicable construction, as deter- 5 mined by the applicant; or 6 ‘‘(ii) $10,000,000 (adjusted for infla- 7 tion, as the Secretary of the Treasury de- 8 termines necessary). 9 ‘‘(2) SUBMISSION AND REVIEW OF APPLICA- 10 TIONS.— 11 ‘‘(A) APPLICATION.—Not later than 60 12 days after the date on which an applicant elects 13 to obtain an expedited review under paragraph 14 (1), the applicant shall submit to the Commis- 15 sion the covered application for which such elec- 16 tion for an expedited review was made, which 17 shall include— 18 ‘‘(i) the scope of the applicable activi- 19 ties, including capital investment, siting, 20 temporary construction, and final work- 21 force numbers; 22 ‘‘(ii) the industrial sector of the appli- 23 cant, as classified by the North American 24 Industry Classification System; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00256 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 257 •HR 1 RH ‘‘(iii) a list of the statutes and regula- 1 tions that are relevant to the covered appli- 2 cation. 3 ‘‘(B) APPROVAL.— 4 ‘‘(i) STANDARD DEADLINE.—Except 5 as provided in clause (ii), not later than 6 one year after the date on which an appli- 7 cant submits a covered application pursu- 8 ant to subparagraph (A)— 9 ‘‘(I) each Federal, State, inter- 10 state, or Tribal agency identified 11 under paragraph (1)(A)(ii) shall— 12 ‘‘(aa) review the relevant 13 Federal authorization identified 14 under such paragraph; and 15 ‘‘(bb) subject to any condi- 16 tions determined by such agency 17 to be necessary to comply with 18 the requirements of the Federal 19 law under which such approval is 20 required, approve such Federal 21 authorization; and 22 ‘‘(II) the Commission shall— 23 ‘‘(aa) review the covered ap- 24 plication; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00257 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 258 •HR 1 RH ‘‘(bb) subject to any condi- 1 tions determined by the Commis- 2 sion to be necessary to comply 3 with the requirements of this 4 Act, approve the covered applica- 5 tion. 6 ‘‘(ii) EXTENDED DEADLINE.— 7 ‘‘(I) EXTENSION.—With respect 8 to a covered application submitted 9 pursuant to subparagraph (A), the 10 Commission may approve a request by 11 an agency identified under paragraph 12 (1)(A)(ii) for an extension of the one- 13 year deadline imposed by clause (i) of 14 this subparagraph for a period of 6 15 months if the Commission receives 16 consent from the relevant applicant. 17 ‘‘(II) APPLICABILITY.—If the 18 Commission approves a request for an 19 extension under subclause (I), such 20 extension shall apply to the applicable 21 covered application and the Federal 22 authorization for which the extension 23 was requested. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00258 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 259 •HR 1 RH ‘‘(C) EFFECT OF FAILURE TO MEET DEAD- 1 LINE.— 2 ‘‘(i) DEEMED APPROVAL.—Any cov- 3 ered application submitted pursuant to 4 subparagraph (A), or Federal authoriza- 5 tion that is required with respect to such 6 covered application, that is not approved 7 by the applicable deadline under subpara- 8 graph (B) shall be deemed approved in 9 perpetuity, notwithstanding any procedural 10 requirements relating to such approval 11 under the Federal law under which such 12 approval was required (including any re- 13 quirements applicable to the effective pe- 14 riod of a Federal authorization). 15 ‘‘(ii) COMPLIANCE.—A person car- 16 rying out activities under a covered appli- 17 cation or Federal authorization that has 18 been deemed approved under clause (i) 19 shall comply with the requirements of the 20 Federal law under which such approval 21 was required (other than with respect to 22 any procedural requirements relating to 23 such approval, including any requirements 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00259 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 260 •HR 1 RH relating to the effective period of the Fed- 1 eral authorization). 2 ‘‘(c) JUDICIAL REVIEW.— 3 ‘‘(1) REVIEWABLE CLAIMS.— 4 ‘‘(A) IN GENERAL.—Notwithstanding any 5 other provision of law, no court shall have juris- 6 diction to review a claim with respect to the ap- 7 proval of a covered application or Federal au- 8 thorization under subparagraph (B) or (C)(i) of 9 subsection (b)(2), except for a claim under 10 chapter 7 of title 5, United States Code, filed 11 not later than 180 days after the date of such 12 approval by— 13 ‘‘(i) the applicant; or 14 ‘‘(ii) a person who has suffered, or 15 likely and imminently will suffer, direct 16 and irreparable economic harm from the 17 approval. 18 ‘‘(B) CLAIMS BY CERTAIN NON-APPLI- 19 CANTS.—An association may only bring a claim 20 on behalf of one or more of its members pursu- 21 ant to subparagraph (A)(ii) if each member of 22 the association has suffered, or likely and immi- 23 nently will suffer, the harm described in sub- 24 paragraph (A)(ii). 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00260 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 261 •HR 1 RH ‘‘(2) STANDARD OF REVIEW.—If an applicant 1 or other person brings a claim described in para- 2 graph (1) with respect to the approval of a covered 3 application or Federal authorization under sub- 4 section (b)(2)(B), the court shall hold unlawful and 5 set aside any agency actions, findings, and conclu- 6 sions in accordance with section 706(2) of title 5, 7 United States Code, except that, for purposes of the 8 application of subparagraph (E) of such section, the 9 court shall apply such subparagraph by substituting 10 ‘clear and convincing evidence’ for ‘substantial evi- 11 dence’. 12 ‘‘(3) EXCLUSIVE JURISDICTION.—Notwith- 13 standing any other provision of law, the United 14 States Court of Appeals for the District of Columbia 15 Circuit shall have original and exclusive jurisdiction 16 over any claim— 17 ‘‘(A) alleging the invalidity of subsection 18 (b); or 19 ‘‘(B) that an agency action relating to a 20 covered application or Federal authorization 21 under subsection (b) is beyond the scope of au- 22 thority conferred by the Federal law under 23 which such agency action is made.’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00261 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 262 •HR 1 RH SEC. 41006. CARBON DIOXIDE, HYDROGEN, AND PETRO- 1 LEUM PIPELINE PERMITTING. 2 The Natural Gas Act is amended by inserting after 3 section 7 (15 U.S.C. 717f) the following: 4 ‘‘SEC. 7A. CARBON DIOXIDE, HYDROGEN, AND PETROLEUM 5 PIPELINE PERMITTING. 6 ‘‘(a) COVERED PIPELINE DEFINED.—In this section, 7 the term ‘covered pipeline’ means— 8 ‘‘(1) a pipeline or pipeline facility for the trans- 9 portation of carbon dioxide that is regulated under 10 chapter 601 of title 49, United States Code, pursu- 11 ant to section 60102(i) of such chapter; 12 ‘‘(2) a gas pipeline facility, as such term is de- 13 fined in section 60101 of title 49, United States 14 Code, for the transportation of hydrogen that is reg- 15 ulated under chapter 601 of such title; or 16 ‘‘(3) a hazardous liquid pipeline facility, as such 17 term is defined in section 60101 of title 49, United 18 States Code, for the transportation of petroleum or 19 a petroleum product that is regulated under chapter 20 601 of such title. 21 ‘‘(b) APPLICATION AND FEE.—Any person may sub- 22 mit to the Commission— 23 ‘‘(1) an application for a license authorizing the 24 whole or any part of the operation, sale, service, con- 25 struction, extension, or acquisition of a covered pipe- 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00262 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 263 •HR 1 RH line, which application shall be made in the same 1 manner as, and in accordance with the requirements 2 for, an application for a certificate of public conven- 3 ience and necessity under section 7(d); and 4 ‘‘(2) a fee in the amount of $10,000,000 for the 5 consideration of such application. 6 ‘‘(c) PROCEDURE.— 7 ‘‘(1) IN GENERAL.—With respect to each appli- 8 cation for which a fee is submitted under subsection 9 (b), the Commission shall— 10 ‘‘(A) consider the application in accordance 11 with the procedures applicable to an application 12 for a certificate of public convenience and ne- 13 cessity under the matter preceding the proviso 14 in section 7(c)(1)(B), including the procedure 15 provided in section 7(e); and 16 ‘‘(B) in accordance with section 7(e), issue 17 the license for which the application was sub- 18 mitted or deny such application. 19 ‘‘(2) NECESSARY MODIFICATIONS.—For pur- 20 poses of this section, the Commission may modify 21 procedures in place under section 7 as the Commis- 22 sion determines necessary to apply such procedures 23 to the consideration, issuance, or denial of an appli- 24 cation under this section. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00263 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 264 •HR 1 RH ‘‘(d) EFFECT OF LICENSE.—Notwithstanding any 1 other provision of law, if the Commission issues a license 2 under subsection (c)(1) of this section and the licensee is 3 in compliance with such license, no requirement of State 4 or local law that requires approval of the location of the 5 covered pipeline with respect to which the license is issued 6 may be enforced against the licensee. 7 ‘‘(e) APPLICATION TO OTHER PROVISIONS.— 8 ‘‘(1) EXTENSION OF FACILITIES; ABANDON- 9 MENT OF SERVICE.—For purposes of section 7— 10 ‘‘(A) subsection (b) of such section shall be 11 applied with respect to this section by sub- 12 stituting ‘licensee under section 7A’ for ‘nat- 13 ural-gas company’; 14 ‘‘(B) subsection (c)(2) of such section shall 15 be applied with respect to this section— 16 ‘‘(i) by substituting ‘licensee under 17 section 7A’ for ‘natural-gas company’; and 18 ‘‘(ii) by substituting ‘petroleum or a 19 petroleum product’ for ‘natural gas’ each 20 place it appears; 21 ‘‘(C) subsection (f)(1) shall be applied with 22 respect to this section— 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00264 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 265 •HR 1 RH ‘‘(i) by substituting ‘license under sec- 1 tion 7A’ for ‘authorization under this sec- 2 tion’; and 3 ‘‘(ii) by substituting ‘licensee under 4 section 7A’ for ‘natural-gas company’; 5 ‘‘(D) subsection (f)(2) shall be applied with 6 respect to this section— 7 ‘‘(i) by substituting ‘transported liquid 8 or gas is consumed’ for ‘gas is consumed’; 9 and 10 ‘‘(ii) by substituting ‘a liquid or gas to 11 another licensee under section 7A’ for ‘nat- 12 ural gas to another natural gas company’; 13 ‘‘(E) subsection (g) shall be applied with 14 respect to this section— 15 ‘‘(i) by substituting ‘licenses under 16 section 7A’ for ‘certificates of public con- 17 venience and necessity’; and 18 ‘‘(ii) by substituting ‘licensee under 19 section 7A’ for ‘natural-gas company’; 20 ‘‘(F) subsection (h) of such section shall be 21 applied with respect to this section— 22 ‘‘(i) by substituting ‘licensee under 23 section 7A’ for ‘holder of a certificate of 24 public convenience and necessity’; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00265 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 266 •HR 1 RH ‘‘(ii) by substituting ‘to carry out an 1 activity authorized by the license issued 2 under such section’ for ‘to construct, oper- 3 ate, and maintain a pipe line or pipe lines 4 for the transportation of natural gas, and 5 the necessary land or other property, in 6 addition to right-of-way, for the location of 7 compressor stations, pressure apparatus, 8 or other stations or equipment necessary to 9 the proper operation of such pipe line or 10 pipe lines’. 11 ‘‘(2) PROCESS COORDINATION; HEARINGS; 12 RULES OF PROCEDURE.—For purposes of applying 13 section 15 with respect to this section, each ref- 14 erence to an application in subsection (a) of such 15 section shall be considered to be a reference to an 16 application for a license under this section. 17 ‘‘(3) REHEARING; COURT REVIEW OF OR- 18 DERS.—For purposes of section 19— 19 ‘‘(A) subsection (b) of such section shall be 20 applied with respect to this section by sub- 21 stituting ‘person who submitted the relevant ap- 22 plication and paid a fee under section 7A’ for 23 ‘natural gas company’; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00266 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 267 •HR 1 RH ‘‘(B) subsection (d) of such section shall be 1 applied with respect to this section by sub- 2 stituting ‘covered pipeline with respect to which 3 an application and fee has been submitted 4 under section 7A’ for ‘facility subject to section 5 3 or section 7’ each place it appears. 6 ‘‘(4) ENFORCEMENT OF ACT; REGULATIONS 7 AND ORDERS.—For purposes of section 20(d), para- 8 graph (1) of such section shall be applied with re- 9 spect to this section by substituting ‘company that 10 is a licensee under section 7A’ for ‘natural gas com- 11 pany’.’’. 12 SEC. 41007. DE-RISKING COMPENSATION PROGRAM. 13 (a) APPROPRIATION.—In addition to amounts other- 14 wise available, there is appropriated to the Secretary for 15 fiscal year 2026, out of any money in the Treasury not 16 otherwise appropriated, $10,000,000, to remain available 17 through September 30, 2034, to carry out this section: 18 Provided, That no disbursements may be made under this 19 section after September 30, 2034. 20 (b) DE-RISKING COMPENSATION PROGRAM.— 21 (1) ESTABLISHMENT.—There is established in 22 the Department of Energy a program, to be known 23 as the De-Risking Compensation Program, to pro- 24 vide compensation to sponsors, with respect to cov- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00267 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 268 •HR 1 RH ered energy projects, that suffer unrecoverable losses 1 due to qualifying Federal actions. 2 (2) ELIGIBILITY.—A sponsor may enroll in the 3 program with respect to a covered energy project 4 if— 5 (A) all approvals or permits required or 6 authorized under Federal law for the covered 7 energy project have been received, regardless of 8 whether a court order subsequently remands or 9 vacates such approvals or permits; 10 (B) the sponsor commenced construction of 11 the covered energy project or made capital ex- 12 penditures with respect to the covered energy 13 project in reliance on such approvals or per- 14 mits; and 15 (C) at the time of enrollment, no quali- 16 fying Federal action has been issued or taken 17 that has an effect described in subsection 18 (g)(4)(B) on the covered energy project. 19 (3) APPLICATION.—A sponsor may apply to en- 20 roll with respect to a covered energy project in the 21 program by submitting to the Secretary an applica- 22 tion containing such information as the Secretary 23 may require. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00268 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 269 •HR 1 RH (4) ENROLLMENT.—Not later than 90 days 1 after the date on which the Secretary receives an ap- 2 plication submitted under paragraph (3), the Sec- 3 retary shall enroll the sponsor in the program for 4 the covered energy project with respect to which the 5 application was submitted if the Secretary deter- 6 mines that the sponsor meets the requirements of 7 paragraph (2) with respect to the covered energy 8 project. 9 (c) FEES AND PREMIUMS.— 10 (1) ENROLLMENT FEE.—Not later than 60 11 days after the date on which a sponsor is enrolled 12 in the program under subsection (b)(4), the sponsor 13 shall pay to the Secretary a one-time enrollment fee 14 equal to 5 percent of the sponsor capital contribu- 15 tion for the applicable covered energy project. 16 (2) ANNUAL PREMIUMS.— 17 (A) IN GENERAL.—The Secretary shall es- 18 tablish and annually collect a premium from 19 each sponsor enrolled in the program for each 20 covered energy project with respect to which the 21 sponsor is enrolled. 22 (B) REQUIREMENTS.—A premium estab- 23 lished and collected from a sponsor under sub- 24 paragraph (A) shall— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00269 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 270 •HR 1 RH (i) be equal to 1.5 percent of the 1 sponsor capital contribution for the appli- 2 cable covered energy project; and 3 (ii) be paid beginning with the year of 4 enrollment and continuing until the earlier 5 of— 6 (I) fiscal year 2033; or 7 (II) the year in which the spon- 8 sor withdraws from the program with 9 respect to the applicable covered en- 10 ergy project. 11 (C) ADJUSTMENT.—The Secretary may 12 adjust the percentage required by subparagraph 13 (B)(i) once every two fiscal years to ensure 14 Fund solvency, except that— 15 (i) the Secretary may not vary such 16 percentage between sponsors or projects; 17 and 18 (ii) such percentage may not exceed 5 19 percent. 20 (D) PUBLICATION.—The Secretary shall 21 publish in the Federal Register not later than 22 60 days prior to the start of each fiscal year a 23 list of each premium to be collected for the fis- 24 cal year. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00270 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 271 •HR 1 RH (d) COMPENSATION.— 1 (1) IN GENERAL.—Using amounts available in 2 the Fund, and subject to paragraph (5), the Sec- 3 retary shall provide compensation to a sponsor en- 4 rolled in the program with respect to a covered en- 5 ergy project if— 6 (A) the sponsor paid the enrollment fee 7 and the premium for each year the sponsor was 8 enrolled in the program with respect to the cov- 9 ered energy project; and 10 (B) the sponsor demonstrates, in a request 11 submitted to the Secretary, that a qualifying 12 Federal action has been issued or taken that 13 has an effect described in subsection (g)(4)(B) 14 on the covered energy project. 15 (2) REQUEST FOR COMPENSATION.—A request 16 under paragraph (1) shall contain the following: 17 (A) Information on each Federal approval 18 or permit relating to the covered energy project, 19 including the date on which such approval or 20 permit was issued. 21 (B) A certified accounting of capital ex- 22 penditures made in reliance on each such Fed- 23 eral approval or permit. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00271 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 272 •HR 1 RH (C) A description of, and, if applicable, a 1 citation to, the applicable qualifying Federal ac- 2 tion. 3 (D) A causal statement showing how the 4 qualifying Federal action directly resulted in 5 unrecoverable losses or cessation of the covered 6 energy project and that absent the qualifying 7 Federal action the project would have otherwise 8 been viable. 9 (E) Any supporting economic analysis 10 demonstrating the financial effects of the cov- 11 ered energy project being rendered unviable. 12 (3) APPROVAL.—The Secretary shall approve a 13 request submitted under paragraph (1) and, subject 14 to paragraph (5), provide compensation to the appli- 15 cable sponsor if the Secretary determines that such 16 request is complete and in compliance with the re- 17 quirements of this section. 18 (4) LIMITATIONS ON DENIALS.—The Secretary 19 may not deny a request submitted under paragraph 20 (1) based on— 21 (A) the merit of the applicable covered en- 22 ergy project, as determined by the Secretary; or 23 (B) the type of technology used in the ap- 24 plicable covered energy project. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00272 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 273 •HR 1 RH (5) LIMITATIONS ON COMPENSATION 1 AMOUNT.— 2 (A) SPONSORS.—The amount of compensa- 3 tion provided to a sponsor under this subsection 4 with respect to a covered energy project shall 5 not exceed the sponsor capital contribution for 6 the covered energy project. 7 (B) AVAILABLE FUNDS.—In determining 8 the amount of compensation to be provided to 9 a sponsor under this subsection— 10 (i) such amount may be any amount, 11 including zero, that is less than or equal to 12 the amount of the sponsor capital con- 13 tribution for the covered energy project, re- 14 gardless of the amount of capital expendi- 15 tures made by the sponsor (as certified 16 and included in the request pursuant to 17 paragraph (2)(B)); and 18 (ii) the Secretary shall determine such 19 amount in a manner that ensures no funds 20 will be obligated or expended in amounts 21 that exceed the amounts in the Fund at 22 the time of approval of the applicable re- 23 quest submitted under paragraph (1). 24 (e) DE-RISKING COMPENSATION FUND.— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00273 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 274 •HR 1 RH (1) ESTABLISHMENT.—There is established a 1 fund, to be known as the De-Risking Compensation 2 Fund, consisting of such amounts as are deposited 3 in the Fund under this subsection or credited to the 4 Fund under subsection (f). 5 (2) USE OF FUNDS.—Amounts in the Fund— 6 (A) shall remain available until September 7 30, 2034; and 8 (B) may be used, without further appro- 9 priation— 10 (i) to make compensation payments to 11 sponsors under this section; and 12 (ii) to administer the program. 13 (3) LIMITATION ON ADMINISTRATIVE EX- 14 PENSES.—Not more than 3 percent of amounts in 15 the Fund may be used to administer the program. 16 (4) DEPOSITS.—The Secretary shall deposit the 17 fees and premiums received under subsection (c) 18 into the Fund. 19 (f) FUND MANAGEMENT AND INVESTMENT.—The 20 Fund shall be managed and invested as follows: 21 (1) The Fund shall be maintained and adminis- 22 tered by the Secretary. 23 (2) Amounts in the Fund shall be invested in 24 obligations of the United States in accordance with 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00274 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 275 •HR 1 RH the requirements of section 9702 of title 31, United 1 States Code. 2 (3) The interest on such investments shall be 3 credited to the Fund. 4 (g) DEFINITIONS.—For purposes of this section: 5 (1) COVERED ENERGY PROJECT.—The term 6 ‘‘covered energy project’’ means a project located in 7 the United States for the development, extraction, 8 processing, transportation, or use of coal, coal by- 9 products, critical minerals, oil, natural gas, or nu- 10 clear energy with a total projected capital expendi- 11 ture of not less than $30,000,000, as certified by the 12 Secretary. 13 (2) FUND.—The term ‘‘Fund’’ means the De- 14 Risking Compensation Fund established in sub- 15 section (e)(1). 16 (3) PROGRAM.—The term ‘‘program’’ means 17 the De-Risking Compensation Program established 18 in subsection (b)(1). 19 (4) QUALIFYING FEDERAL ACTION.—The term 20 ‘‘qualifying Federal action’’ means a regulation, ad- 21 ministrative decision, or executive action— 22 (A) issued or taken after a sponsor re- 23 ceived a Federal approval or permit for a cov- 24 ered energy project; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00275 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 276 •HR 1 RH (B) that revokes such approval or permit 1 or cancels, delays, or renders unviable the cov- 2 ered energy project regardless of whether the 3 regulation, administrative decision, or executive 4 action is responsive to a court order. 5 (5) SECRETARY.—The term ‘‘Secretary’’ means 6 the Secretary of Energy. 7 (6) SPONSOR.—The term ‘‘sponsor’’ means an 8 entity incorporated and headquartered in the United 9 States with an ownership or development interest in 10 a covered energy project. 11 (7) SPONSOR CAPITAL CONTRIBUTION.—The 12 term ‘‘sponsor capital contribution’’ means the pro- 13 jected capital expenditure of a sponsor for a covered 14 energy project, as certified by the Secretary at the 15 time of enrollment in the program, which shall in- 16 clude verifiable development, construction, permit- 17 ting, and financing costs directly related to the cov- 18 ered energy project. 19 SEC. 41008. STRATEGIC PETROLEUM RESERVE. 20 (a) APPROPRIATIONS.—In addition to amounts other- 21 wise available, there is appropriated to the Department 22 of Energy for fiscal year 2025, out of any money in the 23 Treasury not otherwise appropriated, to remain available 24 until September 30, 2029— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00276 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 277 •HR 1 RH (1) $218,000,000 for maintenance of, including 1 repairs to, storage facilities and related facilities (as 2 such terms are defined in section 152 of the Energy 3 Policy and Conservation Act (42 U.S.C. 6232)) of 4 the Strategic Petroleum Reserve; and 5 (2) $1,321,000,000 to acquire, by purchase, pe- 6 troleum products for storage in the Strategic Petro- 7 leum Reserve. 8 (b) REPEAL OF STRATEGIC PETROLEUM RESERVE 9 DRAWDOWN AND SALE MANDATE.—Section 20003 of 10 Public Law 115–97 (42 U.S.C. 6241 note) is repealed. 11 SEC. 41009. RESCISSIONS OF PREVIOUSLY APPROPRIATED 12 UNOBLIGATED FUNDS. 13 (a) RESCISSIONS.—Except as provided in subsection 14 (b), of the unobligated balances appropriated and made 15 available to the Department of Energy— 16 (1) for the Office of the Inspector General, 17 $8,052,100 is rescinded; 18 (2) for the Office of Clean Energy Demonstra- 19 tions, $60,152,900 is rescinded; 20 (3) for the Office for Human Capital, $76,900 21 is rescinded; 22 (4) for Federal Energy Management Programs, 23 $53,442,200 is rescinded; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00277 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 278 •HR 1 RH (5) for State and Community Energy Pro- 1 grams, $262,506,100 is rescinded; 2 (6) for the Office of Minority Economic Impact, 3 $2,783,100 is rescinded; 4 (7) for the Office of Energy Efficiency and Re- 5 newable Energy, $401,850,700 is rescinded; 6 (8) for the Office of General Counsel, $239,400 7 is rescinded; 8 (9) for the Office of Indian Energy Policy and 9 Programs, $44,701,900 is rescinded; 10 (10) for the Office of Management, $5,041,100 11 is rescinded; 12 (11) for the Office of the Secretary, $1,019,400 13 is rescinded; 14 (12) for the Office of Public Affairs, 15 $2,594,000 is rescinded; and 16 (13) for the Office of Policy, $692,400 is re- 17 scinded. 18 (b) EXCLUSIONS.—The unobligated amounts re- 19 scinded under subsection (a) may not include amounts ap- 20 propriated and made available to the Department of En- 21 ergy— 22 (1) under Public Law 117–169 (commonly re- 23 ferred to as the Inflation Reduction Act of 2022); 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00278 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 279 •HR 1 RH (2) under the Infrastructure Investment and 1 Jobs Act (Public Law 117–58); or 2 (3) that were designated by the Congress as an 3 emergency requirement pursuant to the Balanced 4 Budget and Emergency Deficit Control Act of 1985 5 or a concurrent resolution on the budget, section 6 4001(a)(1) of S. Con. Res. 14 (117th Congress), or 7 section 1(e) of H. Res. 1151 (117th Congress) as 8 engrossed in the House of Representatives on June 9 8, 2022. 10 Subtitle B—Environment 11 PART 1—REPEALS AND RESCISSIONS 12 SEC. 42101. REPEAL AND RESCISSION RELATING TO CLEAN 13 HEAVY-DUTY VEHICLES. 14 (a) REPEAL.—Section 132 of the Clean Air Act (42 15 U.S.C. 7432) is repealed. 16 (b) RESCISSION.—The unobligated balance of any 17 amounts made available under section 132 of the Clean 18 Air Act (42 U.S.C. 7432) (as in effect on the day before 19 the date of enactment of this Act) is rescinded. 20 SEC. 42102. REPEAL AND RESCISSION RELATING TO 21 GRANTS TO REDUCE AIR POLLUTION AT 22 PORTS. 23 (a) REPEAL.—Section 133 of the Clean Air Act (42 24 U.S.C. 7433) is repealed. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00279 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 280 •HR 1 RH (b) RESCISSION.—The unobligated balance of any 1 amounts made available under section 133 of the Clean 2 Air Act (42 U.S.C. 7433) (as in effect on the day before 3 the date of enactment of this Act) is rescinded. 4 SEC. 42103. REPEAL AND RESCISSION RELATING TO 5 GREENHOUSE GAS REDUCTION FUND. 6 (a) REPEAL.—Section 134 of the Clean Air Act (42 7 U.S.C. 7434) is repealed. 8 (b) RESCISSION.—The unobligated balance of any 9 amounts made available under section 134 of the Clean 10 Air Act (42 U.S.C. 7434) (as in effect on the day before 11 the date of enactment of this Act) is rescinded. 12 SEC. 42104. REPEAL AND RESCISSION RELATING TO DIESEL 13 EMISSIONS REDUCTIONS. 14 (a) REPEAL.—Section 60104 of Public Law 117–169 15 is repealed. 16 (b) RESCISSION.—The unobligated balance of any 17 amounts made available under section 60104 of Public 18 Law 117–169 (as in effect on the day before the date of 19 enactment of this Act) is rescinded. 20 SEC. 42105. REPEAL AND RESCISSION RELATING TO FUND- 21 ING TO ADDRESS AIR POLLUTION. 22 (a) REPEAL.—Section 60105 of Public Law 117–169 23 is repealed. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00280 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 281 •HR 1 RH (b) RESCISSION.—The unobligated balance of any 1 amounts made available under section 60105 of Public 2 Law 117–169 (as in effect on the day before the date of 3 enactment of this Act) is rescinded. 4 SEC. 42106. REPEAL AND RESCISSION RELATING TO FUND- 5 ING TO ADDRESS AIR POLLUTION AT 6 SCHOOLS. 7 (a) REPEAL.—Section 60106 of Public Law 117–169 8 is repealed. 9 (b) RESCISSION.—The unobligated balance of any 10 amounts made available under section 60106 of Public 11 Law 117–169 (as in effect on the day before the date of 12 enactment of this Act) is rescinded. 13 SEC. 42107. REPEAL AND RESCISSION RELATING TO LOW 14 EMISSIONS ELECTRICITY PROGRAM. 15 (a) REPEAL.—Section 135 of the Clean Air Act (42 16 U.S.C. 7435) is repealed. 17 (b) RESCISSION.—The unobligated balance of any 18 amounts made available under section 135 of the Clean 19 Air Act (42 U.S.C. 7435) (as in effect on the day before 20 the date of enactment of this Act) is rescinded. 21 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00281 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 282 •HR 1 RH SEC. 42108. REPEAL AND RESCISSION RELATING TO FUND- 1 ING FOR SECTION 211(o) OF THE CLEAN AIR 2 ACT. 3 (a) REPEAL.—Section 60108 of Public Law 117–169 4 is repealed. 5 (b) RESCISSION.—The unobligated balance of any 6 amounts made available under section 60108 of Public 7 Law 117–169 (as in effect on the day before the date of 8 enactment of this Act) is rescinded. 9 SEC. 42109. REPEAL AND RESCISSION RELATING TO FUND- 10 ING FOR IMPLEMENTATION OF THE AMER- 11 ICAN INNOVATION AND MANUFACTURING 12 ACT. 13 (a) REPEAL.—Section 60109 of Public Law 117–169 14 is repealed. 15 (b) RESCISSION.—The unobligated balance of any 16 amounts made available under section 60109 of Public 17 Law 117–169 (as in effect on the day before the date of 18 enactment of this Act) is rescinded. 19 SEC. 42110. REPEAL AND RESCISSION RELATING TO FUND- 20 ING FOR ENFORCEMENT TECHNOLOGY AND 21 PUBLIC INFORMATION. 22 (a) REPEAL.—Section 60110 of Public Law 117–169 23 is repealed. 24 (b) RESCISSION.—The unobligated balance of any 25 amounts made available under section 60110 of Public 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00282 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 283 •HR 1 RH Law 117–169 (as in effect on the day before the date of 1 enactment of this Act) is rescinded. 2 SEC. 42111. REPEAL AND RESCISSION RELATING TO 3 GREENHOUSE GAS CORPORATE REPORTING. 4 (a) REPEAL.—Section 60111 of Public Law 117–169 5 is repealed. 6 (b) RESCISSION.—The unobligated balance of any 7 amounts made available under section 60111 of Public 8 Law 117–169 (as in effect on the day before the date of 9 enactment of this Act) is rescinded. 10 SEC. 42112. REPEAL AND RESCISSION RELATING TO ENVI- 11 RONMENTAL PRODUCT DECLARATION AS- 12 SISTANCE. 13 (a) REPEAL.—Section 60112 of Public Law 117–169 14 (42 U.S.C. 4321 note) is repealed. 15 (b) RESCISSION.—The unobligated balance of any 16 amounts made available under section 60112 of Public 17 Law 117–169 (42 U.S.C. 4321 note) (as in effect on the 18 day before the date of enactment of this Act) is rescinded. 19 SEC. 42113. REPEAL OF FUNDING FOR METHANE EMIS- 20 SIONS AND WASTE REDUCTION INCENTIVE 21 PROGRAM FOR PETROLEUM AND NATURAL 22 GAS SYSTEMS. 23 (a) REPEAL AND RESCISSION.—Subsections (a) and 24 (b) of section 136 of the Clean Air Act (42 U.S.C. 7436) 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00283 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 284 •HR 1 RH are repealed and the unobligated balances of amounts 1 made available under those subsections (as in effect on 2 the day before the date of enactment of this Act) are re- 3 scinded. 4 (b) CONFORMING AMENDMENTS.—Section 136 of the 5 Clean Air Act (42 U.S.C. 7436) is amended— 6 (1) by redesignating subsections (c) through (i) 7 as subsections (a) through (g), respectively; 8 (2) by striking ‘‘subsection (c)’’ each place it 9 appears and inserting ‘‘subsection (a)’’; 10 (3) by striking ‘‘subsection (d)’’ each place it 11 appears and inserting ‘‘subsection (b)’’; 12 (4) by striking ‘‘subsection (f)’’ each place it 13 appears and inserting ‘‘subsection (d)’’; 14 (5) in subsection (e) (as so redesignated), by 15 striking ‘‘calendar year 2024’’ and inserting ‘‘cal- 16 endar year 2034’’; and 17 (6) in subsection (f) (as so redesignated)— 18 (A) by striking ‘‘subsections (e) and (f)’’ 19 and inserting ‘‘subsections (c) and (d)’’; and 20 (B) by striking ‘‘including data collected 21 pursuant to subsection (a)(4),’’. 22 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00284 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 285 •HR 1 RH SEC. 42114. REPEAL AND RESCISSION RELATING TO 1 GREENHOUSE GAS AIR POLLUTION PLANS 2 AND IMPLEMENTATION GRANTS. 3 (a) REPEAL.—Section 137 of the Clean Air Act (42 4 U.S.C. 7437) is repealed. 5 (b) RESCISSION.—The unobligated balance of any 6 amounts made available under section 137 of the Clean 7 Air Act (42 U.S.C. 7437) (as in effect on the day before 8 the date of enactment of this Act) is rescinded. 9 SEC. 42115. REPEAL AND RESCISSION RELATING TO ENVI- 10 RONMENTAL PROTECTION AGENCY EFFI- 11 CIENT, ACCURATE, AND TIMELY REVIEWS. 12 (a) REPEAL.—Section 60115 of Public Law 117–169 13 is repealed. 14 (b) RESCISSION.—The unobligated balance of any 15 amounts made available under section 60115 of Public 16 Law 117–169 (as in effect on the day before the date of 17 enactment of this Act) is rescinded. 18 SEC. 42116. REPEAL AND RESCISSION RELATING TO LOW- 19 EMBODIED CARBON LABELING FOR CON- 20 STRUCTION MATERIALS. 21 (a) REPEAL.—Section 60116 of Public Law 117–169 22 (42 U.S.C. 4321 note) is repealed. 23 (b) RESCISSION.—The unobligated balance of any 24 amounts made available under section 60116 of Public 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00285 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 286 •HR 1 RH Law 117–169 (42 U.S.C. 4321 note) (as in effect on the 1 day before the date of enactment of this Act) is rescinded. 2 SEC. 42117. REPEAL AND RESCISSION RELATING TO ENVI- 3 RONMENTAL AND CLIMATE JUSTICE BLOCK 4 GRANTS. 5 (a) REPEAL.—Section 138 of the Clean Air Act (42 6 U.S.C. 7438) is repealed. 7 (b) RESCISSION.—The unobligated balance of any 8 amounts made available under section 138 of the Clean 9 Air Act (42 U.S.C. 7438) (as in effect on the day before 10 the date of enactment of this Act) is rescinded. 11 PART 2—REPEAL OF EPA RULE RELATING TO 12 MULTI-POLLUTANT EMISSIONS STANDARDS 13 SEC. 42201. REPEAL OF EPA RULE RELATING TO MULTI- 14 POLLUTANT EMISSIONS STANDARDS FOR 15 LIGHT- AND MEDIUM-DUTY VEHICLES. 16 The final rule issued by the Environmental Protec- 17 tion Agency relating to ‘‘Multi-Pollutant Emissions Stand- 18 ards for Model Years 2027 and Later Light-Duty and Me- 19 dium-Duty Vehicles’’ (89 Fed. Reg. 27842 (April 18, 20 2024)) shall have no force or effect. 21 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00286 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 287 •HR 1 RH PART 3—REPEAL OF NHTSA RULE RELATING TO 1 CAFE STANDARDS 2 SEC. 42301. REPEAL OF NHTSA RULE RELATING TO CAFE 3 STANDARDS FOR PASSENGER CARS AND 4 LIGHT TRUCKS. 5 The final rule issued by the National Highway Traffic 6 Safety Administration relating to ‘‘Corporate Average 7 Fuel Economy Standards for Passenger Cars and Light 8 Trucks for Model Years 2027 and Beyond and Fuel Effi- 9 ciency Standards for Heavy-Duty Pickup Trucks and 10 Vans for Model Years 2030 and Beyond’’ (89 Fed. Reg. 11 52540 (June 24, 2024)) shall have no force or effect. 12 Subtitle C—Communications 13 PART 1—SPECTRUM AUCTIONS 14 SEC. 43101. IDENTIFICATION AND AUCTION OF SPECTRUM. 15 (a) IDENTIFICATION.— 16 (1) IN GENERAL.—Not later than 2 years after 17 the date of the enactment of this Act, the Assistant 18 Secretary and the Commission shall identify, from 19 spectrum in the covered band that is allocated for 20 Federal use, non-Federal use, or shared Federal and 21 non-Federal use, a total of not less than 600 mega- 22 hertz of spectrum for reallocation for non-Federal 23 use on an exclusive, licensed basis for mobile 24 broadband services, fixed broadband services, mobile 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00287 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 288 •HR 1 RH and fixed broadband services, or a combination 1 thereof. 2 (2) WITHDRAWAL OR MODIFICATION OF FED- 3 ERAL GOVERNMENT ASSIGNMENTS.—The President, 4 acting through the Assistant Secretary, shall— 5 (A) withdraw or modify the assignments to 6 Federal Government stations of spectrum iden- 7 tified under paragraph (1) as necessary for the 8 Commission to comply with subsection (b); and 9 (B) not later than 30 days after com- 10 pleting any necessary withdrawal or modifica- 11 tion under subparagraph (A), notify the Com- 12 mission that the withdrawal or modification is 13 complete. 14 (3) RULE OF CONSTRUCTION.—Nothing in this 15 subsection may be construed to change the respec- 16 tive authorities of the Assistant Secretary and the 17 Commission with respect to spectrum allocated for 18 Federal use, non-Federal use, or shared Federal and 19 non-Federal use. 20 (b) AUCTION.— 21 (1) IN GENERAL.—The Commission shall, 22 through 1 or more systems of competitive bidding 23 under section 309(j) of the Communications Act of 24 1934 (47 U.S.C. 309(j)), grant licenses for the use 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00288 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 289 •HR 1 RH of the spectrum identified under subsection (a) on 1 an exclusive, licensed basis for mobile broadband 2 services, fixed broadband services, mobile and fixed 3 broadband services, or a combination thereof. 4 (2) SCHEDULE.—Notwithstanding paragraph 5 (15)(A) of section 309(j) of the Communications Act 6 of 1934 (47 U.S.C. 309(j)), the Commission shall 7 auction spectrum under paragraph (1) of this sub- 8 section according to the following schedule: 9 (A) Not later than 3 years after the date 10 of the enactment of this Act, the Commission 11 shall complete 1 or more systems of competitive 12 bidding for not less than 200 megahertz of such 13 spectrum. 14 (B) Not later than 6 years after the date 15 of the enactment of this Act, the Commission 16 shall complete 1 or more systems of competitive 17 bidding for any remaining spectrum required to 18 be auctioned under paragraph (1) after compli- 19 ance with subparagraph (A) of this paragraph. 20 (c) AUCTION PROCEEDS TO COVER 110 PERCENT OF 21 FEDERAL RELOCATION OR SHARING COSTS.—Nothing in 22 this section may be construed to relieve the Commission 23 from the requirements of section 309(j)(16)(B) of the 24 Communications Act of 1934 (47 U.S.C. 309(j)(16)(B)). 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00289 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 290 •HR 1 RH (d) AUCTION AUTHORITY.—Section 309(j)(11) of the 1 Communications Act of 1934 (47 U.S.C. 309(j)(11)) is 2 amended by striking ‘‘grant a license or permit under this 3 subsection shall expire March 9, 2023’’ and all that fol- 4 lows and inserting ‘‘complete a system of competitive bid- 5 ding under this subsection shall expire September 30, 6 2034.’’. 7 (e) DEFINITIONS.—In this section: 8 (1) ASSISTANT SECRETARY.—The term ‘‘Assist- 9 ant Secretary’’ means the Assistant Secretary of 10 Commerce for Communications and Information. 11 (2) COMMISSION.—The term ‘‘Commission’’ 12 means the Federal Communications Commission. 13 (3) COVERED BAND.— 14 (A) IN GENERAL.—The term ‘‘covered 15 band’’ means the band of frequencies between 16 1.3 gigahertz and 10 gigahertz, inclusive. 17 (B) EXCLUSION.—The term ‘‘covered 18 band’’ does not include the following: 19 (i) The band of frequencies between 20 3.1 gigahertz and 3.45 gigahertz, inclusive. 21 (ii) The band of frequencies between 22 5.925 gigahertz and 7.125 gigahertz, inclu- 23 sive. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00290 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 291 •HR 1 RH PART 2—ARTIFICIAL INTELLIGENCE AND 1 INFORMATION TECHNOLOGY MODERNIZATION 2 SEC. 43201. ARTIFICIAL INTELLIGENCE AND INFORMATION 3 TECHNOLOGY MODERNIZATION INITIATIVE. 4 (a) APPROPRIATION OF FUNDS.—There is hereby ap- 5 propriated to the Department of Commerce for fiscal year 6 2025, out of any funds in the Treasury not otherwise ap- 7 propriated, $500,000,000, to remain available until Sep- 8 tember 30, 2035, to modernize and secure Federal infor- 9 mation technology systems through the deployment of 10 commercial artificial intelligence, the deployment of auto- 11 mation technologies, and the replacement of antiquated 12 business systems in accordance with subsection (b). 13 (b) AUTHORIZED USES.—The Secretary of Com- 14 merce shall use the funds appropriated under subsection 15 (a) for the following: 16 (1) To replace or modernize, within the Depart- 17 ment of Commerce, legacy business systems with 18 state-of-the-art commercial artificial intelligence sys- 19 tems and automated decision systems. 20 (2) To facilitate, within the Department of 21 Commerce, the adoption of artificial intelligence 22 models that increase operational efficiency and serv- 23 ice delivery. 24 (3) To improve, within the Department of Com- 25 merce, the cybersecurity posture of Federal informa- 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00291 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 292 •HR 1 RH tion technology systems through modernized archi- 1 tecture, automated threat detection, and integrated 2 artificial intelligence solutions. 3 (c) MORATORIUM.— 4 (1) IN GENERAL.—Except as provided in para- 5 graph (2), no State or political subdivision thereof 6 may enforce any law or regulation regulating artifi- 7 cial intelligence models, artificial intelligence sys- 8 tems, or automated decision systems during the 10- 9 year period beginning on the date of the enactment 10 of this Act. 11 (2) RULE OF CONSTRUCTION.—Paragraph (1) 12 may not be construed to prohibit the enforcement of 13 any law or regulation that— 14 (A) the primary purpose and effect of 15 which is to remove legal impediments to, or fa- 16 cilitate the deployment or operation of, an arti- 17 ficial intelligence model, artificial intelligence 18 system, or automated decision system; 19 (B) the primary purpose and effect of 20 which is to streamline licensing, permitting, 21 routing, zoning, procurement, or reporting pro- 22 cedures in a manner that facilitates the adop- 23 tion of artificial intelligence models, artificial 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00292 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 293 •HR 1 RH intelligence systems, or automated decision sys- 1 tems; 2 (C) does not impose any substantive de- 3 sign, performance, data-handling, documenta- 4 tion, civil liability, taxation, fee, or other re- 5 quirement on artificial intelligence models, arti- 6 ficial intelligence systems, or automated deci- 7 sion systems unless such requirement— 8 (i) is imposed under Federal law; or 9 (ii) in the case of a requirement im- 10 posed under a generally applicable law, is 11 imposed in the same manner on models 12 and systems, other than artificial intel- 13 ligence models, artificial intelligence sys- 14 tems, and automated decision systems, 15 that provide comparable functions to artifi- 16 cial intelligence models, artificial intel- 17 ligence systems, or automated decision sys- 18 tems; and 19 (D) does not impose a fee or bond un- 20 less— 21 (i) such fee or bond is reasonable and 22 cost-based; and 23 (ii) under such fee or bond, artificial 24 intelligence models, artificial intelligence 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00293 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 294 •HR 1 RH systems, and automated decision systems 1 are treated in the same manner as other 2 models and systems that perform com- 3 parable functions. 4 (d) DEFINITIONS.—In this section: 5 (1) ARTIFICIAL INTELLIGENCE.—The term ‘‘ar- 6 tificial intelligence’’ has the meaning given such 7 term in section 5002 of the National Artificial Intel- 8 ligence Initiative Act of 2020 (15 U.S.C. 9401). 9 (2) ARTIFICIAL INTELLIGENCE MODEL.—The 10 term ‘‘artificial intelligence model’’ means a software 11 component of an information system that imple- 12 ments artificial intelligence technology and uses 13 computational, statistical, or machine-learning tech- 14 niques to produce outputs from a defined set of in- 15 puts. 16 (3) ARTIFICIAL INTELLIGENCE SYSTEM.—The 17 term ‘‘artificial intelligence system’’ means any data 18 system, software, hardware, application, tool, or util- 19 ity that operates, in whole or in part, using artificial 20 intelligence. 21 (4) AUTOMATED DECISION SYSTEM.—The term 22 ‘‘automated decision system’’ means any computa- 23 tional process derived from machine learning, statis- 24 tical modeling, data analytics, or artificial intel- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00294 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 295 •HR 1 RH ligence that issues a simplified output, including a 1 score, classification, or recommendation, to materi- 2 ally influence or replace human decision making. 3 Subtitle D—Health 4 PART 1—MEDICAID 5 Subpart A—Reducing Fraud and Improving 6 Enrollment Processes 7 SEC. 44101. MORATORIUM ON IMPLEMENTATION OF RULE 8 RELATING TO ELIGIBILITY AND ENROLL- 9 MENT IN MEDICARE SAVINGS PROGRAMS. 10 The Secretary of Health and Human Services shall 11 not, during the period beginning on the date of the enact- 12 ment of this section and ending January 1, 2035, imple- 13 ment, administer, or enforce the provisions of the final 14 rule published by the Centers for Medicare & Medicaid 15 Services on September 21, 2023, and titled ‘‘Streamlining 16 Medicaid; Medicare Savings Program Eligibility Deter- 17 mination and Enrollment’’ (88 Fed. Reg. 65230). 18 SEC. 44102. MORATORIUM ON IMPLEMENTATION OF RULE 19 RELATING TO ELIGIBILITY AND ENROLL- 20 MENT FOR MEDICAID, CHIP, AND THE BASIC 21 HEALTH PROGRAM. 22 The Secretary of Health and Human Services shall 23 not, during the period beginning on the date of the enact- 24 ment of this section and ending January 1, 2035, imple- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00295 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 296 •HR 1 RH ment, administer, or enforce the provisions of the final 1 rule published by the Centers for Medicare & Medicaid 2 Services on April 2, 2024, and titled ‘‘Medicaid Program; 3 Streamlining the Medicaid, Children’s Health Insurance 4 Program, and Basic Health Program Application, Eligi- 5 bility Determination, Enrollment, and Renewal Processes’’ 6 (89 Fed. Reg. 22780). 7 SEC. 44103. ENSURING APPROPRIATE ADDRESS 8 VERIFICATION UNDER THE MEDICAID AND 9 CHIP PROGRAMS. 10 (a) MEDICAID.— 11 (1) IN GENERAL.—Section 1902 of the Social 12 Security Act (42 U.S.C. 1396a) is amended— 13 (A) in subsection (a)— 14 (i) in paragraph (86), by striking 15 ‘‘and’’ at the end; 16 (ii) in paragraph (87), by striking the 17 period and inserting ‘‘; and’’; and 18 (iii) by inserting after paragraph (87) 19 the following new paragraph: 20 ‘‘(88) provide— 21 ‘‘(A) beginning not later than January 1, 22 2027, in the case of 1 of the 50 States and the 23 District of Columbia, for a process to regularly 24 obtain address information for individuals en- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00296 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 297 •HR 1 RH rolled under such plan (or a waiver of such 1 plan) in accordance with subsection (vv); and 2 ‘‘(B) beginning not later than October 1, 3 2029— 4 ‘‘(i) for the State to submit to the sys- 5 tem established by the Secretary under 6 subsection (uu), with respect to an indi- 7 vidual enrolled or seeking to enroll under 8 such plan, not less frequently than once 9 each month and during each determination 10 or redetermination of the eligibility of such 11 individual for medical assistance under 12 such plan (or waiver of such plan)— 13 ‘‘(I) the social security number of 14 such individual, if such individual has 15 a social security number and is re- 16 quired to provide such number to en- 17 roll under such plan (or waiver); and 18 ‘‘(II) such other information with 19 respect to such individual as deter- 20 mined necessary by the Secretary for 21 purposes of preventing individuals 22 from simultaneously being enrolled 23 under State plans (or waivers of such 24 plans) of multiple States; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00297 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 298 •HR 1 RH ‘‘(ii) for the use of such system to 1 prevent such simultaneous enrollment; and 2 ‘‘(iii) in the case that such system in- 3 dicates that an individual enrolled or seek- 4 ing to enroll under such plan (or wavier of 5 such plan) is enrolled under a State plan 6 (or waiver of such a plan) of another 7 State, for the taking of appropriate action 8 (as determined by the Secretary) to iden- 9 tify whether such an individual resides in 10 the State and disenroll an individual from 11 the State plan of such State if such indi- 12 vidual does not reside in such State (unless 13 such individual meets such an exception as 14 the Secretary may specify).’’; and 15 (B) by adding at the end the following new 16 subsections: 17 ‘‘(uu) PREVENTION OF ENROLLMENT UNDER MUL- 18 TIPLE STATE PLANS.— 19 ‘‘(1) IN GENERAL.—Not later than October 1, 20 2029, the Secretary shall establish a system to be 21 utilized by the Secretary and States to prevent an 22 individual from being simultaneously enrolled under 23 the State plans (or waivers of such plans) of mul- 24 tiple States. Such system shall— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00298 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 299 •HR 1 RH ‘‘(A) provide for the receipt of information 1 submitted by a State under subsection 2 (a)(88)(B)(i); and 3 ‘‘(B) not less than once each month, notify 4 or transmit information to a State (or allow the 5 Secretary to notify or transmit information to a 6 State) regarding whether an individual enrolled 7 or seeking to enroll under the State plan of 8 such State (or waiver of such plan) is enrolled 9 under the State plan (or waiver of such plan) 10 of another State. 11 ‘‘(2) STANDARDS.—The Secretary shall estab- 12 lish such standards as determined necessary by the 13 Secretary to limit and protect information submitted 14 under such system and ensure the privacy of such 15 information, consistent with subsection (a)(7). 16 ‘‘(3) IMPLEMENTATION FUNDING.—There are 17 appropriated to the Secretary, out of amounts in the 18 Treasury not otherwise appropriated, in addition to 19 amounts otherwise available— 20 ‘‘(A) for fiscal year 2026, $10,000,000 for 21 purposes of establishing the system required 22 under this subsection, to remain available until 23 expended; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00299 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 300 •HR 1 RH ‘‘(B) for fiscal year 2029, $20,000,000 for 1 purposes of maintaining such system, to remain 2 available until expended. 3 ‘‘(vv) PROCESS TO OBTAIN ENROLLEE ADDRESS IN- 4 FORMATION.— 5 ‘‘(1) IN GENERAL.—For purposes of subsection 6 (a)(88)(A), a process to regularly obtain address in- 7 formation for individuals enrolled under a State plan 8 (or a waiver of such plan) shall obtain address infor- 9 mation from reliable data sources described in para- 10 graph (2) and take such actions as the Secretary 11 shall specify with respect to any changes to such ad- 12 dress based on such information. 13 ‘‘(2) RELIABLE DATA SOURCES DESCRIBED.— 14 For purposes of paragraph (1), the reliable data 15 sources described in this paragraph are the fol- 16 lowing: 17 ‘‘(A) Mail returned to the State by the 18 United States Postal Service with a forwarding 19 address. 20 ‘‘(B) The National Change of Address 21 Database maintained by the United States 22 Postal Service. 23 ‘‘(C) A managed care entity (as defined in 24 section 1932(a)(1)(B)) or prepaid inpatient 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00300 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 301 •HR 1 RH health plan or prepaid ambulatory health plan 1 (as such terms are defined in section 2 1903(m)(9)(D)) that has a contract under the 3 State plan if the address information is pro- 4 vided to such entity or plan directly from, or 5 verified by such entity or plan directly with, 6 such individual. 7 ‘‘(D) Other data sources as identified by 8 the State and approved by the Secretary.’’. 9 (2) CONFORMING AMENDMENTS.— 10 (A) PARIS.—Section 1903(r)(3) of the 11 Social Security Act (42 U.S.C. 1396b(r)(3)) is 12 amended— 13 (i) by striking ‘‘In order’’ and insert- 14 ing ‘‘(A) In order’’; 15 (ii) by striking ‘‘through the Public’’ 16 and inserting ‘‘through— 17 ‘‘(i) the Public’’; 18 (iii) by striking the period at the end 19 and inserting ‘‘; and 20 ‘‘(ii) beginning October 1, 2029, the sys- 21 tem established by the Secretary under section 22 1902(uu).’’; and 23 (iv) by adding at the end the following 24 new subparagraph: 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00301 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 302 •HR 1 RH ‘‘(B) Beginning October 1, 2029, the Secretary 1 may determine that a State is not required to have 2 in operation an eligibility determination system 3 which provides for data matching through the sys- 4 tem described in subparagraph (A)(i) to meet the re- 5 quirements of this paragraph.’’. 6 (B) MANAGED CARE.—Section 1932 of the 7 Social Security Act (42 U.S.C. 1396u–2) is 8 amended by adding at the end the following 9 new subsection: 10 ‘‘(j) TRANSMISSION OF ADDRESS INFORMATION.— 11 Beginning January 1, 2027, each contract under a State 12 plan with a managed care entity (as defined in section 13 1932(a)(1)(B)) or with a prepaid inpatient health plan or 14 prepaid ambulatory health plan (as such terms are defined 15 in section 1903(m)(9)(D)), shall provide that such entity 16 or plan shall promptly transmit to the State any address 17 information for an individual enrolled with such entity or 18 plan that is provided to such entity or plan directly from, 19 or verified by such entity or plan directly with, such indi- 20 vidual.’’. 21 (b) CHIP.— 22 (1) IN GENERAL.—Section 2107(e)(1) of the 23 Social Security Act (42 U.S.C. 1397gg(e)(1)) is 24 amended— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00302 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 303 •HR 1 RH (A) by redesignating subparagraphs (H) 1 through (U) as subparagraphs (I) through (V), 2 respectively; and 3 (B) by inserting after subparagraph (G) 4 the following new subparagraph: 5 ‘‘(H) Section 1902(a)(88) (relating to ad- 6 dress information for enrollees and prevention 7 of simultaneous enrollments).’’. 8 (2) MANAGED CARE.—Section 2103(f)(3) of the 9 Social Security Act (42 U.S.C. 1397cc(f)(3)) is 10 amended by striking ‘‘and (e)’’ and inserting ‘‘(e), 11 and (j)’’. 12 SEC. 44104. MODIFYING CERTAIN STATE REQUIREMENTS 13 FOR ENSURING DECEASED INDIVIDUALS DO 14 NOT REMAIN ENROLLED. 15 Section 1902 of the Social Security Act (42 U.S.C. 16 1396a), as amended by section 44103, is further amend- 17 ed— 18 (1) in subsection (a)— 19 (A) in paragraph (87), by striking ‘‘; and’’ 20 and inserting a semicolon; 21 (B) in paragraph (88), by striking the pe- 22 riod at the end and inserting ‘‘; and’’; and 23 (C) by inserting after paragraph (88) the 24 following new paragraph: 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00303 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 304 •HR 1 RH ‘‘(89) provide that the State shall comply with 1 the eligibility verification requirements under sub- 2 section (ww), except that this paragraph shall apply 3 only in the case of the 50 States and the District 4 of Columbia.’’; and 5 (2) by adding at the end the following new sub- 6 section: 7 ‘‘(ww) VERIFICATION OF CERTAIN ELIGIBILITY CRI- 8 TERIA.— 9 ‘‘(1) IN GENERAL.—For purposes of subsection 10 (a)(89), the eligibility verification requirements, be- 11 ginning January 1, 2028, are as follows: 12 ‘‘(A) QUARTERLY SCREENING TO VERIFY 13 ENROLLEE STATUS.—The State shall, not less 14 frequently than quarterly, review the Death 15 Master File (as such term is defined in section 16 203(d) of the Bipartisan Budget Act of 2013) 17 to determine whether any individuals enrolled 18 for medical assistance under the State plan (or 19 waiver of such plan) are deceased. 20 ‘‘(B) DISENROLLMENT UNDER STATE 21 PLAN.—If the State determines, based on infor- 22 mation obtained from the Death Master File, 23 that an individual enrolled for medical assist- 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00304 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 305 •HR 1 RH ance under the State plan (or waiver of such 1 plan) is deceased, the State shall— 2 ‘‘(i) treat such information as factual 3 information confirming the death of a ben- 4 eficiary for purposes of section 431.213(a) 5 of title 42, Code of Federal Regulations (or 6 any successor regulation); 7 ‘‘(ii) disenroll such individual from the 8 State plan (or waiver of such plan); and 9 ‘‘(iii) discontinue any payments for 10 medical assistance under this title made on 11 behalf of such individual (other than pay- 12 ments for any items or services furnished 13 to such individual prior to the death of 14 such individual). 15 ‘‘(C) REINSTATEMENT OF COVERAGE IN 16 THE EVENT OF ERROR.—If a State determines 17 that an individual was misidentified as deceased 18 based on information obtained from the Death 19 Master File and was erroneously disenrolled 20 from medical assistance under the State plan 21 (or waiver of such plan) based on such 22 misidentification, the State shall immediately 23 re-enroll such individual under the State plan 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00305 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 306 •HR 1 RH (or waiver of such plan), retroactive to the date 1 of such disenrollment. 2 ‘‘(2) RULE OF CONSTRUCTION.—Nothing under 3 this subsection shall be construed to preclude the 4 ability of a State to use other electronic data sources 5 to timely identify potentially deceased beneficiaries, 6 so long as the State is also in compliance with the 7 requirements of this subsection (and all other re- 8 quirements under this title relating to Medicaid eli- 9 gibility determination and redetermination).’’. 10 SEC. 44105. MEDICAID PROVIDER SCREENING REQUIRE- 11 MENTS. 12 Section 1902(kk)(1) of the Social Security Act (42 13 U.S.C. 1396a(kk)(1)) is amended— 14 (1) by striking ‘‘The State’’ and inserting: 15 ‘‘(A) IN GENERAL.—The State’’; and 16 (2) by adding at the end the following new sub- 17 paragraph: 18 ‘‘(B) ADDITIONAL PROVIDER SCREEN- 19 ING.—Beginning January 1, 2028, as part of 20 the enrollment (or reenrollment or revalidation 21 of enrollment) of a provider or supplier under 22 this title, and not less frequently than monthly 23 during the period that such provider or supplier 24 is so enrolled, the State conducts a check of any 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00306 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 307 •HR 1 RH database or similar system developed pursuant 1 to section 6401(b)(2) of the Patient Protection 2 and Affordable Care Act to determine whether 3 the Secretary has terminated the participation 4 of such provider or supplier under title XVIII, 5 or whether any other State has terminated the 6 participation of such provider or supplier under 7 such other State’s State plan under this title 8 (or waiver of the plan), or such other State’s 9 State child health plan under title XXI (or 10 waiver of the plan).’’. 11 SEC. 44106. ADDITIONAL MEDICAID PROVIDER SCREENING 12 REQUIREMENTS. 13 Section 1902(kk)(1) of the Social Security Act (42 14 U.S.C. 1396a(kk)(1)), as amended by section 44105, is 15 further amended by adding at the end the following new 16 subparagraph: 17 ‘‘(C) PROVIDER SCREENING AGAINST 18 DEATH MASTER FILE.—Beginning January 1, 19 2028, as part of the enrollment (or reenroll- 20 ment or revalidation of enrollment) of a pro- 21 vider or supplier under this title, and not less 22 frequently than quarterly during the period that 23 such provider or supplier is so enrolled, the 24 State conducts a check of the Death Master 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00307 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 308 •HR 1 RH File (as such term is defined in section 203(d) 1 of the Bipartisan Budget Act of 2013) to deter- 2 mine whether such provider or supplier is de- 3 ceased.’’. 4 SEC. 44107. REMOVING GOOD FAITH WAIVER FOR PAYMENT 5 REDUCTION RELATED TO CERTAIN ERRO- 6 NEOUS EXCESS PAYMENTS UNDER MEDICAID. 7 (a) IN GENERAL.—Section 1903(u)(1) of the Social 8 Security Act (42 U.S.C. 1396b(u)(1)) is amended— 9 (1) in subparagraph (B)— 10 (A) by striking ‘‘The Secretary’’ and in- 11 serting ‘‘(i) Subject to clause (ii), the Sec- 12 retary’’; and 13 (B) by adding at the end the following new 14 clause: 15 ‘‘(ii) The amount waived under clause (i) for a 16 fiscal year may not exceed an amount equal to the 17 difference between— 18 ‘‘(I) the amount of the reduction required 19 under subparagraph (A) for such fiscal year 20 (without application of this subparagraph); and 21 ‘‘(II) the sum of the erroneous excess pay- 22 ments for medical assistance described in sub- 23 clauses (I) and (III) of subparagraph (D)(i) 24 made for such fiscal year.’’; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00308 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 309 •HR 1 RH (2) in subparagraph (C), by striking ‘‘he’’ in 1 each place it appears and inserting ‘‘the Secretary’’ 2 in each such place; and 3 (3) in subparagraph (D)(i)— 4 (A) in subclause (I), by striking ‘‘and’’ at 5 the end; 6 (B) in subclause (II), by striking the pe- 7 riod at the end and inserting ‘‘, and’’; and 8 (C) by adding at the end the following new 9 subclause: 10 ‘‘(III) payments (other than payments de- 11 scribed in subclause (I)) for items and services fur- 12 nished to an eligible individual who is not eligible for 13 medical assistance under the State plan (or a waiver 14 of such plan) with respect to such items and serv- 15 ices.’’. 16 (b) EFFECTIVE DATE.—The amendments made by 17 subsection (a) shall apply beginning with respect to fiscal 18 year 2030. 19 SEC. 44108. INCREASING FREQUENCY OF ELIGIBILITY RE- 20 DETERMINATIONS FOR CERTAIN INDIVID- 21 UALS. 22 Section 1902(e)(14) of the Social Security Act (42 23 U.S.C. 1396a(e)(14)) is amended by adding at the end 24 the following new subparagraph: 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00309 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 310 •HR 1 RH ‘‘(L) FREQUENCY OF ELIGIBILITY REDE- 1 TERMINATIONS FOR CERTAIN INDIVIDUALS.— 2 Beginning on October 1, 2027, in the case of 3 an individual enrolled under subsection 4 (a)(10)(A)(i)(VIII), a State shall redetermine 5 the eligibility of such individual for medical as- 6 sistance under the State plan of such State (or 7 a waiver of such plan) once every 6 months.’’. 8 SEC. 44109. REVISING HOME EQUITY LIMIT FOR DETER- 9 MINING ELIGIBILITY FOR LONG-TERM CARE 10 SERVICES UNDER THE MEDICAID PROGRAM. 11 (a) REVISING HOME EQUITY LIMIT.—Section 12 1917(f)(1) of the Social Security Act (42 U.S.C. 13 1396p(f)(1)) is amended— 14 (1) in subparagraph (B)— 15 (A) by striking ‘‘A State’’ and inserting 16 ‘‘(i) A State’’; 17 (B) in clause (i), as inserted by subpara- 18 graph (A)— 19 (i) by striking ‘‘ ‘$500,000’ ’’ and in- 20 serting ‘‘the amount specified in subpara- 21 graph (A)’’; and 22 (ii) by inserting ‘‘, in the case of an 23 individual’s home that is located on a lot 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00310 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 311 •HR 1 RH that is zoned for agricultural use,’’ after 1 ‘‘apply subparagraph (A)’’; and 2 (C) by adding at the end the following new 3 clause: 4 ‘‘(ii) A State may elect, without regard to the 5 requirements of section 1902(a)(1) (relating to 6 statewideness) and section 1902(a)(10)(B) (relating 7 to comparability), to apply subparagraph (A), in the 8 case of an individual’s home that is not described in 9 clause (i), by substituting for the amount specified 10 in such subparagraph, an amount that exceeds such 11 amount, but does not exceed $1,000,000.’’; and 12 (2) in subparagraph (C)— 13 (A) by inserting ‘‘(other than the amount 14 specified in subparagraph (B)(ii) (relating to 15 certain non-agricultural homes))’’ after ‘‘speci- 16 fied in this paragraph’’; and 17 (B) by adding at the end the following new 18 sentence: ‘‘In the case that application of the 19 preceding sentence would result in a dollar 20 amount (other than the amount specified in 21 subparagraph (B)(i) (relating to certain agricul- 22 tural homes)) exceeding $1,000,000, such 23 amount shall be deemed to be equal to 24 $1,000,000.’’. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00311 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 312 •HR 1 RH (b) CLARIFICATION.—Section 1902 of the Social Se- 1 curity Act (42 U.S.C. 1396a) is amended— 2 (1) in subsection (r)(2), by adding at the end 3 the following new subparagraph: 4 ‘‘(C) This paragraph shall not be construed as per- 5 mitting a State to determine the eligibility of an individual 6 for medical assistance with respect to nursing facility serv- 7 ices or other long-term care services without application 8 of the limit under section 1917(f)(1).’’; and 9 (2) in subsection (e)(14)(D)(iv)— 10 (A) by striking ‘‘Subparagraphs’’ and in- 11 serting 12 ‘‘(I) IN GENERAL.—Subpara- 13 graphs’’; and 14 (B) by adding at the end the following new 15 subclause: 16 ‘‘(II) APPLICATION OF HOME EQ- 17 UITY INTEREST LIMIT.—Section 18 1917(f) shall apply for purposes of de- 19 termining the eligibility of an indi- 20 vidual for medical assistance with re- 21 spect to nursing facility services or 22 other long-term care services.’’. 23 (c) EFFECTIVE DATE.—The amendments made by 24 subsection (a) shall apply beginning on January 1, 2028. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00312 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 313 •HR 1 RH SEC. 44110. PROHIBITING FEDERAL FINANCIAL PARTICIPA- 1 TION UNDER MEDICAID AND CHIP FOR INDI- 2 VIDUALS WITHOUT VERIFIED CITIZENSHIP, 3 NATIONALITY, OR SATISFACTORY IMMIGRA- 4 TION STATUS. 5 (a) IN GENERAL.— 6 (1) MEDICAID.—Section 1903(i)(22) of the So- 7 cial Security Act (42 U.S.C. 1396b(i)(22)) is amend- 8 ed— 9 (A) by adding ‘‘and’’ at the end; 10 (B) by striking ‘‘to amounts’’ and inserting 11 ‘‘to— 12 ‘‘(A) amounts’’; and 13 (C) by adding at the end the following new 14 subparagraph: 15 ‘‘(B) in the case that the State elects 16 under section 1902(a)(46)(C) to provide for 17 making medical assistance available to an indi- 18 vidual during— 19 ‘‘(i) the period in which the individual 20 is provided the reasonable opportunity to 21 present satisfactory documentary evidence 22 of citizenship or nationality under section 23 1902(ee)(2)(C) or subsection (x)(4); 24 ‘‘(ii) the 90-day period described in 25 section 1902(ee)(1)(B)(ii)(II); or 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00313 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 314 •HR 1 RH ‘‘(iii) the period in which the indi- 1 vidual is provided the reasonable oppor- 2 tunity to submit evidence indicating a sat- 3 isfactory immigration status under section 4 1137(d)(4), 5 amounts expended for such medical assistance, 6 unless the citizenship or nationality of such in- 7 dividual or the satisfactory immigration status 8 of such individual (as applicable) is verified by 9 the end of such period;’’. 10 (2) CHIP.—Section 2107(e)(1)(N) of the So- 11 cial Security Act (42 U.S.C. 1397gg(e)(1)(N)) is 12 amended by striking ‘‘and (17)’’ and inserting 13 ‘‘(17), and (22)’’. 14 (b) ELIMINATING STATE REQUIREMENT TO PROVIDE 15 MEDICAL ASSISTANCE DURING REASONABLE OPPOR- 16 TUNITY PERIOD.— 17 (1) DOCUMENTARY EVIDENCE OF CITIZENSHIP 18 OR NATIONALITY.—Section 1903(x)(4) of the Social 19 Security Act (42 U.S.C. 1396b(x)) is amended— 20 (A) by striking ‘‘under clauses (i) and (ii) 21 of section 1137(d)(4)(A)’’ and inserting ‘‘under 22 section 1137(d)(4)’’; and 23 (B) by inserting ‘‘, except that the State 24 shall not be required to make medical assist- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00314 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 315 •HR 1 RH ance available to such individual during the pe- 1 riod in which such individual is provided such 2 reasonable opportunity if the State has not 3 elected the option under section 4 1902(a)(46)(C)’’ before the period at the end. 5 (2) SOCIAL SECURITY DATA MATCH.—Section 6 1902(ee) of the Social Security Act (42 U.S.C. 7 1396a(ee)) is amended— 8 (A) in paragraph (1)(B)(ii)— 9 (i) in subclause (II), by striking ‘‘(and 10 continues to provide the individual with 11 medical assistance during such 90-day pe- 12 riod)’’ and inserting ‘‘and, if the State has 13 elected the option under subsection 14 (a)(46)(C), continues to provide the indi- 15 vidual with medical assistance during such 16 90-day period’’; and 17 (ii) in subclause (III), by inserting ‘‘, 18 or denies eligibility for medical assistance 19 under this title for such individual, as ap- 20 plicable’’ after ‘‘under this title’’; and 21 (B) in paragraph (2)(C)— 22 (i) by striking ‘‘under clauses (i) and 23 (ii) of section 1137(d)(4)(A)’’ and insert- 24 ing ‘‘under section 1137(d)(4)’’; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00315 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 316 •HR 1 RH (ii) by inserting ‘‘, except that the 1 State shall not be required to make med- 2 ical assistance available to such individual 3 during the period in which such individual 4 is provided such reasonable opportunity if 5 the State has not elected the option under 6 section 1902(a)(46)(C)’’ before the period 7 at the end. 8 (3) INDIVIDUALS WITH SATISFACTORY IMMI- 9 GRATION STATUS.—Section 1137(d)(4) of the Social 10 Security Act (42 U.S.C. 1320b–7(d)(4)) is amend- 11 ed— 12 (A) in subparagraph (A)(ii), by inserting 13 ‘‘(except that such prohibition on delay, denial, 14 reduction, or termination of eligibility for bene- 15 fits under the Medicaid program under title 16 XIX shall apply only if the State has elected 17 the option under section 1902(a)(46)(C))’’ after 18 ‘‘has been provided’’; and 19 (B) in subparagraph (B)(ii), by inserting 20 ‘‘(except that such prohibition on delay, denial, 21 reduction, or termination of eligibility for bene- 22 fits under the Medicaid program under title 23 XIX shall apply only if the State has elected 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00316 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 317 •HR 1 RH the option under section 1902(a)(46)(C))’’ after 1 ‘‘status’’. 2 (c) OPTION TO CONTINUE PROVIDING MEDICAL AS- 3 SISTANCE DURING REASONABLE OPPORTUNITY PE- 4 RIOD.— 5 (1) MEDICAID.—Section 1902(a)(46) of the So- 6 cial Security Act (42 U.S.C. 1396a(a)(46)) is 7 amended— 8 (A) in subparagraph (A), by striking 9 ‘‘and’’ at the end; 10 (B) in subparagraph (B)(ii), by adding 11 ‘‘and’’ at the end; and 12 (C) by inserting after subparagraph (B)(ii) 13 the following new subparagraph: 14 ‘‘(C) provide, at the option of the State, for 15 making medical assistance available— 16 ‘‘(i) to an individual described in subpara- 17 graph (B) during the period in which such indi- 18 vidual is provided the reasonable opportunity to 19 present satisfactory documentary evidence of 20 citizenship or nationality under subsection 21 (ee)(2)(C) or section 1903(x)(4), or during the 22 90-day period described in subsection 23 (ee)(1)(B)(ii)(II); or 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00317 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 318 •HR 1 RH ‘‘(ii) to an individual who is not a citizen 1 or national of the United States during the pe- 2 riod in which such individual is provided the 3 reasonable opportunity to submit evidence indi- 4 cating a satisfactory immigration status under 5 section 1137(d)(4);’’. 6 (2) CHIP.—Section 2105(c)(9) of the Social 7 Security Act (42 U.S.C. 1397ee(c)(9)) is amended 8 by adding at the end the following new subpara- 9 graph: 10 ‘‘(C) OPTION TO CONTINUE PROVIDING 11 CHILD HEALTH ASSISTANCE DURING REASON- 12 ABLE OPPORTUNITY PERIOD.—Section 13 1902(a)(46)(C) shall apply to States under this 14 title in the same manner as it applies to a State 15 under title XIX.’’. 16 (d) EFFECTIVE DATE.—The amendments made by 17 this section shall apply beginning October 1, 2026. 18 SEC. 44111. REDUCING EXPANSION FMAP FOR CERTAIN 19 STATES PROVIDING PAYMENTS FOR HEALTH 20 CARE FURNISHED TO CERTAIN INDIVIDUALS. 21 Section 1905 of the Social Security Act (42 U.S.C. 22 1395d) is amended— 23 (1) in subsection (y)— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00318 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 319 •HR 1 RH (A) in paragraph (1)(E), by inserting ‘‘(or, 1 for calendar quarters beginning on or after Oc- 2 tober 1, 2027, in the case such State is a speci- 3 fied State with respect to such calendar quar- 4 ter, 80 percent)’’ after ‘‘thereafter’’; and 5 (B) in paragraph (2), by adding at the end 6 the following new subparagraph: 7 ‘‘(C) SPECIFIED STATE.—The term ‘speci- 8 fied State’ means, with respect to a quarter, a 9 State that— 10 ‘‘(i) provides any form of financial as- 11 sistance during such quarter, in whole or 12 in part, whether or not made under a 13 State plan (or waiver of such plan) under 14 this title or under another program estab- 15 lished by the State, and regardless of the 16 source of funding for such assistance, to or 17 on behalf of an alien who is not a qualified 18 alien or otherwise lawfully residing in the 19 United States for the purchasing of health 20 insurance coverage (as defined in section 21 2791(b)(1) of the Public Health Service 22 Act) for an alien who is not a qualified 23 alien or otherwise lawfully residing in the 24 United States; or 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00319 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 320 •HR 1 RH ‘‘(ii) provides any form of comprehen- 1 sive health benefits coverage during such 2 quarter, whether or not under a State plan 3 (or wavier of such plan) under this title or 4 under another program established by the 5 State, and regardless of the source of 6 funding for such coverage, to an alien who 7 is not a qualified alien or otherwise law- 8 fully residing in the United States. 9 ‘‘(D) IMMIGRATION TERMS.— 10 ‘‘(i) ALIEN.—The term ‘alien’ has the 11 meaning given such term in section 101(a) 12 of the Immigration and Nationality Act. 13 ‘‘(ii) QUALIFIED ALIEN.—The term 14 ‘qualified alien’ has the meaning given 15 such term in section 431 of the Personal 16 Responsibility and Work Opportunity Rec- 17 onciliation Act of 1996, except that— 18 ‘‘(I) the reference to ‘at the time 19 the alien applies for, receives, or at- 20 tempts to receive a Federal public 21 benefit’ in subsection (b) of such sec- 22 tion shall be treated as a reference to 23 ‘at the time the alien is provided com- 24 prehensive health benefits coverage 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00320 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 321 •HR 1 RH described in clause (ii) of section 1 1905(y)(C) of the Social Security Act 2 or is provided with financial assist- 3 ance described in clause (i) of such 4 section, as applicable’; and 5 ‘‘(II) the references to ‘(in the 6 opinion of the agency providing such 7 benefits)’ in subsection (c) of such 8 section shall be treated as references 9 to ‘(in the opinion of the State in 10 which such comprehensive health ben- 11 efits coverage or such financial assist- 12 ance is provided, as applicable)’.’’; and 13 (2) in subsection (z)(2)— 14 (A) in subparagraph (A), by striking ‘‘for 15 such year’’ and inserting ‘‘for such quarter’’; 16 and 17 (B) in subparagraph (B)(i)— 18 (i) in the matter preceding subclause 19 (I), by striking ‘‘for a year’’ and inserting 20 ‘‘for a calendar quarter in a year’’; and 21 (ii) in subclause (II), by striking ‘‘for 22 the year’’ and inserting ‘‘for the quarter 23 for the State’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00321 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 322 •HR 1 RH Subpart B—Preventing Wasteful Spending 1 SEC. 44121. MORATORIUM ON IMPLEMENTATION OF RULE 2 RELATING TO STAFFING STANDARDS FOR 3 LONG-TERM CARE FACILITIES UNDER THE 4 MEDICARE AND MEDICAID PROGRAMS. 5 The Secretary of Health and Human Services shall 6 not, during the period beginning on the date of the enact- 7 ment of this section and ending January 1, 2035, imple- 8 ment, administer, or enforce the provisions of the final 9 rule published by the Centers for Medicare & Medicaid 10 Services on May 10, 2024, and titled ‘‘Medicare and Med- 11 icaid Programs; Minimum Staffing Standards for Long- 12 Term Care Facilities and Medicaid Institutional Payment 13 Transparency Reporting’’ (89 Fed. Reg. 40876). 14 SEC. 44122. MODIFYING RETROACTIVE COVERAGE UNDER 15 THE MEDICAID AND CHIP PROGRAMS. 16 (a) IN GENERAL.—Section 1902(a)(34) of the Social 17 Security Act (42 U.S.C. 1396a(a)(34)) is amended— 18 (1) by striking ‘‘him’’ and inserting ‘‘the indi- 19 vidual’’; 20 (2) by striking ‘‘the third month’’ and inserting 21 ‘‘the month’’; 22 (3) by striking ‘‘he’’ and inserting ‘‘the indi- 23 vidual’’; and 24 (4) by striking ‘‘his’’ and inserting ‘‘the individ- 25 ual’s’’. 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00322 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 323 •HR 1 RH (b) DEFINITION OF MEDICAL ASSISTANCE.—Section 1 1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) 2 is amended by striking ‘‘in or after the third month before 3 the month in which the recipient makes application for 4 assistance’’ and inserting ‘‘in or after the month before 5 the month in which the recipient makes application for 6 assistance’’. 7 (c) CHIP.—Section 2102(b)(1)(B) of the Social Se- 8 curity Act (42 U.S.C. 1397bb(b)(1)(B)) is amended— 9 (1) in clause (iv), by striking ‘‘and’’ at the end; 10 (2) in clause (v), by striking the period and in- 11 serting ‘‘; and’’; and 12 (3) by adding at the end the following new 13 clause: 14 ‘‘(vi) shall, in the case that the State 15 elects to provide child health or pregnancy- 16 related assistance to an individual for any 17 period prior to the month in which the in- 18 dividual made application for such assist- 19 ance (or application was made on behalf of 20 the individual), provide that such assist- 21 ance is not made available to such indi- 22 vidual for items and services included 23 under the State child health plan (or waiv- 24 er of such plan) that are furnished before 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00323 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 324 •HR 1 RH the month preceding the month in which 1 such individual made application (or appli- 2 cation was made on behalf of such indi- 3 vidual) for such assistance.’’. 4 (d) EFFECTIVE DATE.—The amendments made by 5 this section shall apply to medical assistance and child 6 health and pregnancy-related assistance with respect to in- 7 dividuals whose eligibility for such medical assistance or 8 child health assistance is based on an application made 9 on or after October 1, 2026. 10 SEC. 44123. ENSURING ACCURATE PAYMENTS TO PHAR- 11 MACIES UNDER MEDICAID. 12 (a) IN GENERAL.—Section 1927(f) of the Social Se- 13 curity Act (42 U.S.C. 1396r–8(f)) is amended— 14 (1) in paragraph (1)(A)— 15 (A) by redesignating clause (ii) as clause 16 (iii); and 17 (B) by striking ‘‘and’’ after the semicolon 18 at the end of clause (i) and all that precedes it 19 through ‘‘(1)’’ and inserting the following: 20 ‘‘(1) DETERMINING PHARMACY ACTUAL ACQUI- 21 SITION COSTS.—The Secretary shall conduct a sur- 22 vey of retail community pharmacy drug prices and 23 applicable non-retail pharmacy drug prices to deter- 24 mine national average drug acquisition cost bench- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00324 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 325 •HR 1 RH marks (as such term is defined by the Secretary) as 1 follows: 2 ‘‘(A) USE OF VENDOR.—The Secretary 3 may contract services for— 4 ‘‘(i) with respect to retail community 5 pharmacies, the determination of retail 6 survey prices of the national average drug 7 acquisition cost for covered outpatient 8 drugs that represent a nationwide average 9 of consumer purchase prices for such 10 drugs, net of all discounts, rebates, and 11 other price concessions (to the extent any 12 information with respect to such discounts, 13 rebates, and other price concessions is 14 available) based on a monthly survey of 15 such pharmacies; 16 ‘‘(ii) with respect to applicable non-re- 17 tail pharmacies— 18 ‘‘(I) the determination of survey 19 prices, separate from the survey prices 20 described in clause (i), of the non-re- 21 tail national average drug acquisition 22 cost for covered outpatient drugs that 23 represent a nationwide average of con- 24 sumer purchase prices for such drugs, 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00325 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 326 •HR 1 RH net of all discounts, rebates, and other 1 price concessions (to the extent any 2 information with respect to such dis- 3 counts, rebates, and other price con- 4 cessions is available) based on a 5 monthly survey of such pharmacies; 6 and 7 ‘‘(II) at the discretion of the Sec- 8 retary, for each type of applicable 9 non-retail pharmacy, the determina- 10 tion of survey prices, separate from 11 the survey prices described in clause 12 (i) or subclause (I) of this clause, of 13 the national average drug acquisition 14 cost for such type of pharmacy for 15 covered outpatient drugs that rep- 16 resent a nationwide average of con- 17 sumer purchase prices for such drugs, 18 net of all discounts, rebates, and other 19 price concessions (to the extent any 20 information with respect to such dis- 21 counts, rebates, and other price con- 22 cessions is available) based on a 23 monthly survey of such pharmacies; 24 and’’; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00326 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 327 •HR 1 RH (2) in subparagraph (B) of paragraph (1), by 1 striking ‘‘subparagraph (A)(ii)’’ and inserting ‘‘sub- 2 paragraph (A)(iii)’’; 3 (3) in subparagraph (D) of paragraph (1), by 4 striking clauses (ii) and (iii) and inserting the fol- 5 lowing: 6 ‘‘(ii) The vendor must update the Sec- 7 retary no less often than monthly on the 8 survey prices for covered outpatient drugs. 9 ‘‘(iii) The vendor must differentiate, 10 in collecting and reporting survey data, for 11 all cost information collected, whether a 12 pharmacy is a retail community pharmacy 13 or an applicable non-retail pharmacy, in- 14 cluding whether such pharmacy is an affil- 15 iate (as defined in subsection (k)(14)), 16 and, in the case of an applicable non-retail 17 pharmacy, which type of applicable non-re- 18 tail pharmacy it is using the relevant phar- 19 macy type indicators included in the guid- 20 ance required by subsection (d)(2) of sec- 21 tion 44123 of the Act titled ‘An Act to 22 provide for reconciliation pursuant to title 23 II of H. Con. Res. 14’.’’; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00327 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 328 •HR 1 RH (4) by adding at the end of paragraph (1) the 1 following: 2 ‘‘(F) SURVEY REPORTING.—In order to 3 meet the requirement of section 1902(a)(54), a 4 State shall require that any retail community 5 pharmacy or applicable non-retail pharmacy in 6 the State that receives any payment, reimburse- 7 ment, administrative fee, discount, rebate, or 8 other price concession related to the dispensing 9 of covered outpatient drugs to individuals re- 10 ceiving benefits under this title, regardless of 11 whether such payment, reimbursement, admin- 12 istrative fee, discount, rebate, or other price 13 concession is received from the State or a man- 14 aged care entity or other specified entity (as 15 such terms are defined in section 16 1903(m)(9)(D)) directly or from a pharmacy 17 benefit manager or another entity that has a 18 contract with the State or a managed care enti- 19 ty or other specified entity (as so defined), shall 20 respond to surveys conducted under this para- 21 graph. 22 ‘‘(G) SURVEY INFORMATION.—Information 23 on national drug acquisition prices obtained 24 under this paragraph shall be made publicly 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00328 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 329 •HR 1 RH available in a form and manner to be deter- 1 mined by the Secretary and shall include at 2 least the following: 3 ‘‘(i) The monthly response rate to the 4 survey including a list of pharmacies not in 5 compliance with subparagraph (F). 6 ‘‘(ii) The sampling methodology and 7 number of pharmacies sampled monthly. 8 ‘‘(iii) Information on price concessions 9 to pharmacies, including discounts, re- 10 bates, and other price concessions, to the 11 extent that such information may be pub- 12 licly released and has been collected by the 13 Secretary as part of the survey. 14 ‘‘(H) PENALTIES.— 15 ‘‘(i) IN GENERAL.—Subject to clauses 16 (ii), (iii), and (iv), the Secretary shall en- 17 force the provisions of this paragraph with 18 respect to a pharmacy through the estab- 19 lishment of civil money penalties applicable 20 to a retail community pharmacy or an ap- 21 plicable non-retail pharmacy. 22 ‘‘(ii) BASIS FOR PENALTIES.—The 23 Secretary shall impose a civil money pen- 24 alty established under this subparagraph 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00329 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 330 •HR 1 RH on a retail community pharmacy or appli- 1 cable non-retail pharmacy if— 2 ‘‘(I) the retail pharmacy or appli- 3 cable non-retail pharmacy refuses or 4 otherwise fails to respond to a request 5 for information about prices in con- 6 nection with a survey under this sub- 7 section; 8 ‘‘(II) knowingly provides false in- 9 formation in response to such a sur- 10 vey; or 11 ‘‘(III) otherwise fails to comply 12 with the requirements established 13 under this paragraph. 14 ‘‘(iii) PARAMETERS FOR PEN- 15 ALTIES.— 16 ‘‘(I) IN GENERAL.—A civil money 17 penalty established under this sub- 18 paragraph may be assessed with re- 19 spect to each violation, and with re- 20 spect to each non-compliant retail 21 community pharmacy (including a 22 pharmacy that is part of a chain) or 23 non-compliant applicable non-retail 24 pharmacy (including a pharmacy that 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00330 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 331 •HR 1 RH is part of a chain), in an amount not 1 to exceed $100,000 for each such vio- 2 lation. 3 ‘‘(II) CONSIDERATIONS.—In de- 4 termining the amount of a civil money 5 penalty imposed under this subpara- 6 graph, the Secretary may consider the 7 size, business structure, and type of 8 pharmacy involved, as well as the type 9 of violation and other relevant factors, 10 as determined appropriate by the Sec- 11 retary. 12 ‘‘(iv) RULE OF APPLICATION.—The 13 provisions of section 1128A (other than 14 subsections (a) and (b)) shall apply to a 15 civil money penalty under this subpara- 16 graph in the same manner as such provi- 17 sions apply to a civil money penalty or pro- 18 ceeding under section 1128A(a). 19 ‘‘(I) LIMITATION ON USE OF APPLICABLE 20 NON-RETAIL PHARMACY PRICING INFORMA- 21 TION.—No State shall use pricing information 22 reported by applicable non-retail pharmacies 23 under subparagraph (A)(ii) to develop or inform 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00331 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 332 •HR 1 RH payment methodologies for retail community 1 pharmacies.’’; 2 (5) in paragraph (2)— 3 (A) in subparagraph (A), by inserting ‘‘, 4 including payment rates and methodologies for 5 determining ingredient cost reimbursement 6 under managed care entities or other specified 7 entities (as such terms are defined in section 8 1903(m)(9)(D)),’’ after ‘‘under this title’’; and 9 (B) in subparagraph (B), by inserting 10 ‘‘and the basis for such dispensing fees’’ before 11 the semicolon; 12 (6) by redesignating paragraph (4) as para- 13 graph (5); 14 (7) by inserting after paragraph (3) the fol- 15 lowing new paragraph: 16 ‘‘(4) OVERSIGHT.— 17 ‘‘(A) IN GENERAL.—The Inspector General 18 of the Department of Health and Human Serv- 19 ices shall conduct periodic studies of the survey 20 data reported under this subsection, as appro- 21 priate, including with respect to substantial 22 variations in acquisition costs or other applica- 23 ble costs, as well as with respect to how internal 24 transfer prices and related party transactions 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00332 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 333 •HR 1 RH may influence the costs reported by pharmacies 1 that are affiliates (as defined in subsection 2 (k)(13)) or are owned by, controlled by, or re- 3 lated under a common ownership structure with 4 a wholesaler, distributor, or other entity that 5 acquires covered outpatient drugs relative to 6 costs reported by pharmacies not affiliated with 7 such entities. The Inspector General shall pro- 8 vide periodic updates to Congress on the results 9 of such studies, as appropriate, in a manner 10 that does not disclose trade secrets or other 11 proprietary information. 12 ‘‘(B) APPROPRIATION.—There is appro- 13 priated to the Inspector General of the Depart- 14 ment of Health and Human Services, out of 15 any money in the Treasury not otherwise ap- 16 propriated, $5,000,000 for fiscal year 2026, to 17 remain available until expended, to carry out 18 this paragraph.’’; and 19 (8) in paragraph (5), as so redesignated— 20 (A) by inserting ‘‘, and $8,000,000 for 21 each of fiscal years 2026 through 2033,’’ after 22 ‘‘2010’’; and 23 (B) by inserting ‘‘Funds appropriated 24 under this paragraph for each of fiscal years 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00333 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 334 •HR 1 RH 2026 through 2033 shall remain available until 1 expended.’’ after the period. 2 (b) DEFINITIONS.—Section 1927(k) of the Social Se- 3 curity Act (42 U.S.C. 1396r–8(k)) is amended— 4 (1) in the matter preceding paragraph (1), by 5 striking ‘‘In the section’’ and inserting ‘‘In this sec- 6 tion’’; and 7 (2) by adding at the end the following new 8 paragraphs: 9 ‘‘(12) APPLICABLE NON-RETAIL PHARMACY.— 10 The term ‘applicable non-retail pharmacy’ means a 11 pharmacy that is licensed as a pharmacy by the 12 State and that is not a retail community pharmacy, 13 including a pharmacy that dispenses prescription 14 medications to patients primarily through mail and 15 specialty pharmacies. Such term does not include 16 nursing home pharmacies, long-term care facility 17 pharmacies, hospital pharmacies, clinics, charitable 18 or not-for-profit pharmacies, government phar- 19 macies, or low dispensing pharmacies (as defined by 20 the Secretary). 21 ‘‘(13) AFFILIATE.—The term ‘affiliate’ means 22 any entity that is owned by, controlled by, or related 23 under a common ownership structure with a phar- 24 macy benefit manager or a managed care entity or 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00334 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 335 •HR 1 RH other specified entity (as such terms are defined in 1 section 1903(m)(9)(D)).’’. 2 (c) EFFECTIVE DATE.— 3 (1) IN GENERAL.—Subject to paragraph (2), 4 the amendments made by this section shall apply be- 5 ginning on the first day of the first quarter that be- 6 gins on or after the date that is 6 months after the 7 date of enactment of this section. 8 (2) DELAYED APPLICATION TO APPLICABLE 9 NON-RETAIL PHARMACIES.—The pharmacy survey 10 requirements established by the amendments to sec- 11 tion 1927(f) of the Social Security Act (42 U.S.C. 12 1396r–8(f)) made by this section shall apply to re- 13 tail community pharmacies beginning on the effec- 14 tive date described in paragraph (1), but shall not 15 apply to applicable non-retail pharmacies until the 16 first day of the first quarter that begins on or after 17 the date that is 18 months after the date of enact- 18 ment of this section. 19 (d) IDENTIFICATION OF APPLICABLE NON-RETAIL 20 PHARMACIES.— 21 (1) IN GENERAL.—Not later than January 1, 22 2027, the Secretary of Health and Human Services 23 shall, in consultation with stakeholders as appro- 24 priate, publish guidance specifying pharmacies that 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00335 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 336 •HR 1 RH meet the definition of applicable non-retail phar- 1 macies (as such term is defined in subsection 2 (k)(12) of section 1927 of the Social Security Act 3 (42 U.S.C. 1396r–8), as added by subsection (b)), 4 and that will be subject to the survey requirements 5 under subsection (f)(1) of such section, as amended 6 by subsection (a). 7 (2) INCLUSION OF PHARMACY TYPE INDICA- 8 TORS.—The guidance published under paragraph (1) 9 shall include pharmacy type indicators to distinguish 10 between different types of applicable non-retail phar- 11 macies, such as pharmacies that dispense prescrip- 12 tions primarily through the mail and pharmacies 13 that dispense prescriptions that require special han- 14 dling or distribution. An applicable non-retail phar- 15 macy may be identified through multiple pharmacy 16 type indicators. 17 (e) IMPLEMENTATION.— 18 (1) IN GENERAL.—Notwithstanding any other 19 provision of law, the Secretary of Health and 20 Human Services may implement the amendments 21 made by this section by program instruction or oth- 22 erwise. 23 (2) NONAPPLICATION OF ADMINISTRATIVE PRO- 24 CEDURE ACT.—Implementation of the amendments 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00336 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 337 •HR 1 RH made by this section shall be exempt from the re- 1 quirements of section 553 of title 5, United States 2 Code. 3 (f) NONAPPLICATION OF PAPERWORK REDUCTION 4 ACT.—Chapter 35 of title 44, United States Code, shall 5 not apply to any data collection undertaken by the Sec- 6 retary of Health and Human Services under section 7 1927(f) of the Social Security Act (42 U.S.C. 1396r–8(f)), 8 as amended by this section. 9 SEC. 44124. PREVENTING THE USE OF ABUSIVE SPREAD 10 PRICING IN MEDICAID. 11 (a) IN GENERAL.—Section 1927 of the Social Secu- 12 rity Act (42 U.S.C. 1396r–8) is amended— 13 (1) in subsection (e), by adding at the end the 14 following new paragraph: 15 ‘‘(6) TRANSPARENT PRESCRIPTION DRUG PASS- 16 THROUGH PRICING REQUIRED.— 17 ‘‘(A) IN GENERAL.—A contract between 18 the State and a pharmacy benefit manager (re- 19 ferred to in this paragraph as a ‘PBM’), or a 20 contract between the State and a managed care 21 entity or other specified entity (as such terms 22 are defined in section 1903(m)(9)(D) and col- 23 lectively referred to in this paragraph as the 24 ‘entity’) that includes provisions making the en- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00337 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 338 •HR 1 RH tity responsible for coverage of covered out- 1 patient drugs dispensed to individuals enrolled 2 with the entity, shall require that payment for 3 such drugs and related administrative services 4 (as applicable), including payments made by a 5 PBM on behalf of the State or entity, is based 6 on a transparent prescription drug pass- 7 through pricing model under which— 8 ‘‘(i) any payment made by the entity 9 or the PBM (as applicable) for such a 10 drug— 11 ‘‘(I) is limited to— 12 ‘‘(aa) ingredient cost; and 13 ‘‘(bb) a professional dis- 14 pensing fee that is not less than 15 the professional dispensing fee 16 that the State would pay if the 17 State were making the payment 18 directly in accordance with the 19 State plan; 20 ‘‘(II) is passed through in its en- 21 tirety (except as reduced under Fed- 22 eral or State laws and regulations in 23 response to instances of waste, fraud, 24 or abuse) by the entity or PBM to the 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00338 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 339 •HR 1 RH pharmacy or provider that dispenses 1 the drug; and 2 ‘‘(III) is made in a manner that 3 is consistent with sections 447.502, 4 447.512, 447.514, and 447.518 of 5 title 42, Code of Federal Regulations 6 (or any successor regulation) as if 7 such requirements applied directly to 8 the entity or the PBM, except that 9 any payment by the entity or the 10 PBM for the ingredient cost of such 11 drug purchased by a covered entity 12 (as defined in subsection (a)(5)(B)) 13 may exceed the actual acquisition cost 14 (as defined in 447.502 of title 42, 15 Code of Federal Regulations, or any 16 successor regulation) for such drug 17 if— 18 ‘‘(aa) such drug was subject 19 to an agreement under section 20 340B of the Public Health Serv- 21 ice Act; 22 ‘‘(bb) such payment for the 23 ingredient cost of such drug does 24 not exceed the maximum pay- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00339 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 340 •HR 1 RH ment that would have been made 1 by the entity or the PBM for the 2 ingredient cost of such drug if 3 such drug had not been pur- 4 chased by such covered entity; 5 and 6 ‘‘(cc) such covered entity re- 7 ports to the Secretary (in a form 8 and manner specified by the Sec- 9 retary), on an annual basis and 10 with respect to payments for the 11 ingredient costs of such drugs so 12 purchased by such covered entity 13 that are in excess of the actual 14 acquisition costs for such drugs, 15 the aggregate amount of such ex- 16 cess; 17 ‘‘(ii) payment to the entity or the 18 PBM (as applicable) for administrative 19 services performed by the entity or PBM is 20 limited to an administrative fee that re- 21 flects the fair market value (as defined by 22 the Secretary) of such services; 23 ‘‘(iii) the entity or the PBM (as appli- 24 cable) makes available to the State, and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00340 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 341 •HR 1 RH the Secretary upon request in a form and 1 manner specified by the Secretary, all costs 2 and payments related to covered outpatient 3 drugs and accompanying administrative 4 services (as described in clause (ii)) in- 5 curred, received, or made by the entity or 6 the PBM, broken down (as specified by the 7 Secretary), to the extent such costs and 8 payments are attributable to an individual 9 covered outpatient drug, by each such 10 drug, including any ingredient costs, pro- 11 fessional dispensing fees, administrative 12 fees (as described in clause (ii)), post-sale 13 and post-invoice fees, discounts, or related 14 adjustments such as direct and indirect re- 15 muneration fees, and any and all other re- 16 muneration, as defined by the Secretary; 17 and 18 ‘‘(iv) any form of spread pricing 19 whereby any amount charged or claimed by 20 the entity or the PBM (as applicable) that 21 exceeds the amount paid to the pharmacies 22 or providers on behalf of the State or enti- 23 ty, including any post-sale or post-invoice 24 fees, discounts, or related adjustments 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00341 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 342 •HR 1 RH such as direct and indirect remuneration 1 fees or assessments, as defined by the Sec- 2 retary, (after allowing for an administra- 3 tive fee as described in clause (ii)) is not 4 allowable for purposes of claiming Federal 5 matching payments under this title. 6 ‘‘(B) PUBLICATION OF INFORMATION.— 7 The Secretary shall publish, not less frequently 8 than on an annual basis and in a manner that 9 does not disclose the identity of a particular 10 covered entity or organization, information re- 11 ceived by the Secretary pursuant to subpara- 12 graph (A)(iii)(III) that is broken out by State 13 and by each of the following categories of cov- 14 ered entity within each such State: 15 ‘‘(i) Covered entities described in sub- 16 paragraph (A) of section 340B(a)(4) of the 17 Public Health Service Act. 18 ‘‘(ii) Covered entities described in sub- 19 paragraphs (B) through (K) of such sec- 20 tion. 21 ‘‘(iii) Covered entities described in 22 subparagraph (L) of such section. 23 ‘‘(iv) Covered entities described in 24 subparagraph (M) of such section. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00342 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 343 •HR 1 RH ‘‘(v) Covered entities described in sub- 1 paragraph (N) of such section. 2 ‘‘(vi) Covered entities described in 3 subparagraph (O) of such section.’’; and 4 (2) in subsection (k), as previously amended by 5 this subtitle, by adding at the end the following new 6 paragraph: 7 ‘‘(14) PHARMACY BENEFIT MANAGER.—The 8 term ‘pharmacy benefit manager’ means any person 9 or entity that, either directly or through an inter- 10 mediary, acts as a price negotiator or group pur- 11 chaser on behalf of a State, managed care entity (as 12 defined in section 1903(m)(9)(D)), or other specified 13 entity (as so defined), or manages the prescription 14 drug benefits provided by a State, managed care en- 15 tity, or other specified entity, including the proc- 16 essing and payment of claims for prescription drugs, 17 the performance of drug utilization review, the proc- 18 essing of drug prior authorization requests, the man- 19 aging of appeals or grievances related to the pre- 20 scription drug benefits, contracting with pharmacies, 21 controlling the cost of covered outpatient drugs, or 22 the provision of services related thereto. Such term 23 includes any person or entity that acts as a price ne- 24 gotiator (with regard to payment amounts to phar- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00343 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 344 •HR 1 RH macies and providers for a covered outpatient drug 1 or the net cost of the drug) or group purchaser on 2 behalf of a State, managed care entity, or other 3 specified entity or that carries out 1 or more of the 4 other activities described in the preceding sentence, 5 irrespective of whether such person or entity calls 6 itself a pharmacy benefit manager.’’. 7 (b) CONFORMING AMENDMENTS.—Section 1903(m) 8 of such Act (42 U.S.C. 1396b(m)) is amended— 9 (1) in paragraph (2)(A)(xiii)— 10 (A) by striking ‘‘and (III)’’ and inserting 11 ‘‘(III)’’; 12 (B) by inserting before the period at the 13 end the following: ‘‘, and (IV) if the contract in- 14 cludes provisions making the entity responsible 15 for coverage of covered outpatient drugs, the 16 entity shall comply with the requirements of 17 section 1927(e)(6)’’; and 18 (C) by moving the left margin 2 ems to the 19 left; and 20 (2) by adding at the end the following new 21 paragraph: 22 ‘‘(10) No payment shall be made under this 23 title to a State with respect to expenditures incurred 24 by the State for payment for services provided by an 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00344 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 345 •HR 1 RH other specified entity (as defined in paragraph 1 (9)(D)(iii)) unless such services are provided in ac- 2 cordance with a contract between the State and such 3 entity which satisfies the requirements of paragraph 4 (2)(A)(xiii).’’. 5 (c) EFFECTIVE DATE.—The amendments made by 6 this section shall apply to contracts between States and 7 managed care entities, other specified entities, or phar- 8 macy benefit managers that have an effective date begin- 9 ning on or after the date that is 18 months after the date 10 of enactment of this section. 11 (d) IMPLEMENTATION.— 12 (1) IN GENERAL.—Notwithstanding any other 13 provision of law, the Secretary of Health and 14 Human Services may implement the amendments 15 made by this section by program instruction or oth- 16 erwise. 17 (2) NONAPPLICATION OF ADMINISTRATIVE PRO- 18 CEDURE ACT.—Implementation of the amendments 19 made by this section shall be exempt from the re- 20 quirements of section 553 of title 5, United States 21 Code. 22 (e) NONAPPLICATION OF PAPERWORK REDUCTION 23 ACT.—Chapter 35 of title 44, United States Code, shall 24 not apply to any data collection undertaken by the Sec- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00345 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 346 •HR 1 RH retary of Health and Human Services under section 1 1927(e) of the Social Security Act (42 U.S.C. 1396r– 2 8(e)), as amended by this section. 3 SEC. 44125. PROHIBITING FEDERAL MEDICAID AND CHIP 4 FUNDING FOR GENDER TRANSITION PROCE- 5 DURES FOR MINORS. 6 (a) MEDICAID.—Section 1903(i) of the Social Secu- 7 rity Act (42 U.S.C. 1396b(i)) is amended— 8 (1) in paragraph (26), by striking ‘‘; or’’ and 9 inserting a semicolon; 10 (2) in paragraph (27), by striking the period at 11 the end and inserting ‘‘; or’’; 12 (3) by inserting after paragraph (27) the fol- 13 lowing new paragraph: 14 ‘‘(28) with respect to any amount expended for 15 specified gender transition procedures (as defined in 16 section 1905(kk)) furnished to an individual under 17 18 years of age enrolled in a State plan (or waiver 18 of such plan).’’; and 19 (4) in the flush left matter at the end, by strik- 20 ing ‘‘and (18),’’ and inserting ‘‘(18), and (28)’’. 21 (b) CHIP.—Section 2107(e)(1)(N) of the Social Se- 22 curity Act (42 U.S.C. 1397gg(e)(1)(N)) is amended by 23 striking ‘‘and (17)’’ and inserting ‘‘(17), and (28)’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00346 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 347 •HR 1 RH (c) SPECIFIED GENDER TRANSITION PROCEDURES 1 DEFINED.—Section 1905 of the Social Security Act (42 2 U.S.C. 1396d) is amended by adding at the end the fol- 3 lowing new subsection: 4 ‘‘(kk) SPECIFIED GENDER TRANSITION PROCE- 5 DURES.— 6 ‘‘(1) IN GENERAL.—For purposes of section 7 1903(i)(28), except as provided in paragraph (2), 8 the term ‘specified gender transition procedure’ 9 means, with respect to an individual, any of the fol- 10 lowing when performed for the purpose of inten- 11 tionally changing the body of such individual (in- 12 cluding by disrupting the body’s development, inhib- 13 iting its natural functions, or modifying its appear- 14 ance) to no longer correspond to the individual’s sex: 15 ‘‘(A) Performing any surgery, including— 16 ‘‘(i) castration; 17 ‘‘(ii) sterilization; 18 ‘‘(iii) orchiectomy; 19 ‘‘(iv) scrotoplasty; 20 ‘‘(v) vasectomy; 21 ‘‘(vi) tubal ligation; 22 ‘‘(vii) hysterectomy; 23 ‘‘(viii) oophorectomy; 24 ‘‘(ix) ovariectomy; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00347 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 348 •HR 1 RH ‘‘(x) metoidioplasty; 1 ‘‘(xi) clitoroplasty; 2 ‘‘(xii) reconstruction of the fixed part 3 of the urethra with or without a 4 metoidioplasty or a phalloplasty; 5 ‘‘(xiii) penectomy; 6 ‘‘(xiv) phalloplasty; 7 ‘‘(xv) vaginoplasty; 8 ‘‘(xvi) vaginectomy; 9 ‘‘(xvii) vulvoplasty; 10 ‘‘(xviii) reduction thyrochondroplasty; 11 ‘‘(xix) chondrolaryngoplasty; 12 ‘‘(xx) mastectomy; and 13 ‘‘(xxi) any plastic, cosmetic, or aes- 14 thetic surgery that feminizes or 15 masculinizes the facial or other body fea- 16 tures of an individual. 17 ‘‘(B) Any placement of chest implants to 18 create feminine breasts or any placement of 19 erection or testicular prostheses. 20 ‘‘(C) Any placement of fat or artificial im- 21 plants in the gluteal region. 22 ‘‘(D) Administering, prescribing, or dis- 23 pensing to an individual medications, includ- 24 ing— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00348 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 349 •HR 1 RH ‘‘(i) gonadotropin-releasing hormone 1 (GnRH) analogues or other puberty-block- 2 ing drugs to stop or delay normal puberty; 3 and 4 ‘‘(ii) testosterone, estrogen, or other 5 androgens to an individual at doses that 6 are supraphysiologic than would normally 7 be produced endogenously in a healthy in- 8 dividual of the same age and sex. 9 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 10 apply to the following when furnished to an indi- 11 vidual by a health care provider with the consent of 12 such individual’s parent or legal guardian: 13 ‘‘(A) Puberty suppression or blocking pre- 14 scription drugs for the purpose of normalizing 15 puberty for an individual experiencing pre- 16 cocious puberty. 17 ‘‘(B) Medically necessary procedures or 18 treatments to correct for— 19 ‘‘(i) a medically verifiable disorder of 20 sex development, including— 21 ‘‘(I) 46,XX chromosomes with 22 virilization; 23 ‘‘(II) 46,XY chromosomes with 24 undervirilization; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00349 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 350 •HR 1 RH ‘‘(III) both ovarian and testicular 1 tissue; 2 ‘‘(ii) sex chromosome structure, sex 3 steroid hormone production, or sex hor- 4 mone action, if determined to be abnormal 5 by a physician through genetic or bio- 6 chemical testing; 7 ‘‘(iii) infection, disease, injury, or dis- 8 order caused or exacerbated by a previous 9 procedure described in paragraph (1), or a 10 physical disorder, physical injury, or phys- 11 ical illness that would, as certified by a 12 physician, place the individual in imminent 13 danger of death or impairment of a major 14 bodily function unless the procedure is per- 15 formed, not including procedures per- 16 formed for the alleviation of mental dis- 17 tress; or 18 ‘‘(iv) procedures to restore or recon- 19 struct the body of the individual in order 20 to correspond to the individual’s sex after 21 one or more previous procedures described 22 in paragraph (1), which may include the 23 removal of a pseudo phallus or breast aug- 24 mentation. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00350 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 351 •HR 1 RH ‘‘(3) SEX.—For purposes of paragraph (1), the 1 term ‘sex’ means either male or female, as bio- 2 logically determined and defined in paragraphs (4) 3 and (5), respectively. 4 ‘‘(4) FEMALE.—For purposes of paragraph (3), 5 the term ‘female’ means an individual who naturally 6 has, had, will have, or would have, but for a develop- 7 mental or genetic anomaly or historical accident, the 8 reproductive system that at some point produces, 9 transports, and utilizes eggs for fertilization. 10 ‘‘(5) MALE.—For purposes of paragraph (3), 11 the term ‘male’ means an individual who naturally 12 has, had, will have, or would have, but for a develop- 13 mental or genetic anomaly or historical accident, the 14 reproductive system that at some point produces, 15 transports, and utilizes sperm for fertilization.’’. 16 SEC. 44126. FEDERAL PAYMENTS TO PROHIBITED ENTI- 17 TIES. 18 (a) IN GENERAL.—No Federal funds that are consid- 19 ered direct spending and provided to carry out a State 20 plan under title XIX of the Social Security Act or a waiver 21 of such a plan shall be used to make payments to a prohib- 22 ited entity for items and services furnished during the 10- 23 year period beginning on the date of the enactment of this 24 Act, including any payments made directly to the prohib- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00351 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 352 •HR 1 RH ited entity or under a contract or other arrangement be- 1 tween a State and a covered organization. 2 (b) DEFINITIONS.—In this section: 3 (1) PROHIBITED ENTITY.—The term ‘‘prohib- 4 ited entity’’ means an entity, including its affiliates, 5 subsidiaries, successors, and clinics— 6 (A) that, as of the date of enactment of 7 this Act— 8 (i) is an organization described in sec- 9 tion 501(c)(3) of the Internal Revenue 10 Code of 1986 and exempt from tax under 11 section 501(a) of such Code; 12 (ii) is an essential community provider 13 described in section 156.235 of title 45, 14 Code of Federal Regulations (as in effect 15 on the date of enactment of this Act), that 16 is primarily engaged in family planning 17 services, reproductive health, and related 18 medical care; and 19 (iii) provides for abortions, other than 20 an abortion— 21 (I) if the pregnancy is the result 22 of an act of rape or incest; or 23 (II) in the case where a woman 24 suffers from a physical disorder, phys- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00352 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 353 •HR 1 RH ical injury, or physical illness, includ- 1 ing a life-endangering physical condi- 2 tion caused by or arising from the 3 pregnancy itself, that would, as cer- 4 tified by a physician, place the woman 5 in danger of death unless an abortion 6 is performed; and 7 (B) for which the total amount of Federal 8 and State expenditures under the Medicaid pro- 9 gram under title XIX of the Social Security Act 10 in fiscal year 2024 made directly, or by a cov- 11 ered organization, to the entity or to any affili- 12 ates, subsidiaries, successors, or clinics of the 13 entity, or made to the entity or to any affiliates, 14 subsidiaries, successors, or clinics of the entity 15 as part of a nationwide health care provider 16 network, exceeded $1,000,000. 17 (2) DIRECT SPENDING.—The term ‘‘direct 18 spending’’ has the meaning given that term under 19 section 250(c) of the Balanced Budget and Emer- 20 gency Deficit Control Act of 1985 (2 U.S.C. 900(c)). 21 (3) COVERED ORGANIZATION.—The term ‘‘cov- 22 ered organization’’ means a managed care entity (as 23 defined in section 1932(a)(1)(B) of the Social Secu- 24 rity Act (42 U.S.C. 1396u–2(a)(1)(B))) or a prepaid 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00353 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 354 •HR 1 RH inpatient health plan or prepaid ambulatory health 1 plan (as such terms are defined in section 2 1903(m)(9)(D) of such Act (42 U.S.C. 3 1396b(m)(9)(D))). 4 (4) STATE.—The term ‘‘State’’ has the mean- 5 ing given such term in section 1101 of the Social Se- 6 curity Act (42 U.S.C. 1301). 7 Subpart C—Stopping Abusive Financing Practices 8 SEC. 44131. SUNSETTING ELIGIBILITY FOR INCREASED 9 FMAP FOR NEW EXPANSION STATES. 10 Section 1905(ii)(3) of the Social Security Act (42 11 U.S.C. 1396d(ii)(3)) is amended— 12 (1) by striking ‘‘which has not’’ and inserting 13 the following: ‘‘which— 14 ‘‘(A) has not’’; 15 (2) in subparagraph (A), as so inserted, by 16 striking the period at the end and inserting ‘‘; and’’; 17 and 18 (3) by adding at the end the following new sub- 19 paragraph: 20 ‘‘(B) begins to expend amounts for all such 21 individuals prior to January 1, 2026.’’. 22 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00354 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 355 •HR 1 RH SEC. 44132. MORATORIUM ON NEW OR INCREASED PRO- 1 VIDER TAXES. 2 Section 1903(w)(1)(A)(iii) of the Social Security Act 3 (42 U.S.C. 1396b(w)(1)(A)(iii)) is amended— 4 (1) by striking ‘‘or’’ at the end; 5 (2) by striking ‘‘if there’’ and inserting ‘‘if— 6 ‘‘(I) there’’; and 7 (3) by adding at the end the following new sub- 8 clauses: 9 ‘‘(II) the tax is first imposed by the State 10 (or by a unit of local government in the State) 11 on or after the date of the enactment of this 12 subclause (other than such a tax for which the 13 legislation or regulations providing for the im- 14 position of such tax were enacted or adopted 15 prior to such date of enactment); or 16 ‘‘(III) on or after the date of the enact- 17 ment of this subclause, the State (or unit of 18 local government) increases the amount or rate 19 of tax imposed with respect to a class of health 20 care items or services (or with respect to a type 21 of provider or activity within such a class), or 22 increases the base of the tax such that the tax 23 is imposed with respect to a class of items or 24 services (or with respect to a type of provider 25 or activity within such a class) to which the tax 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00355 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 356 •HR 1 RH did not previously apply, but only to the extent 1 that such revenues are attributable to such in- 2 crease and only if such increase was not pro- 3 vided for in legislation or regulations enacted or 4 adopted prior to such date of enactment; or’’. 5 SEC. 44133. REVISING THE PAYMENT LIMIT FOR CERTAIN 6 STATE DIRECTED PAYMENTS. 7 (a) IN GENERAL.—Subject to subsection (b), the Sec- 8 retary of Health and Human Services shall revise section 9 438.6(c)(2)(iii) of title 42, Code of Federal Regulations 10 (or a successor regulation) such that, with respect to a 11 payment described in such section made for a service fur- 12 nished during a rating period beginning on or after the 13 date of the enactment of this Act, the total payment rate 14 for such service is limited to 100 percent of the specified 15 total published Medicare payment rate. 16 (b) GRANDFATHERING CERTAIN PAYMENTS.—In the 17 case of a payment described in section 438.6(c)(2)(iii) of 18 title 42, Code of Federal Regulations (or a successor regu- 19 lation) for which written prior approval was made before 20 the date of the enactment of this Act for the rating period 21 occurring as of such date of enactment, or a payment so 22 described for such rating period for which a preprint was 23 submitted to the Secretary of Health and Human Services 24 prior to such date of enactment, the revisions described 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00356 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 357 •HR 1 RH in subsection (a) shall not apply to such payment for such 1 rating period and for any subsequent rating period if the 2 amount of such payment does not exceed the amount of 3 such payment so approved. 4 (c) DEFINITIONS.—In this section: 5 (1) RATING PERIOD.—The term ‘‘rating pe- 6 riod’’ has the meaning given such term in section 7 438.2 of title 42, Code of Federal Regulations (or a 8 successor regulation). 9 (2) TOTAL PUBLISHED MEDICARE PAYMENT 10 RATE.—The term ‘‘total published Medicare pay- 11 ment rate’’ means amounts calculated as payment 12 for specific services that have been developed under 13 part A or part B of title XVIII of the Social Secu- 14 rity Act (42 U.S.C. 1395 et seq.). 15 (3) WRITTEN PRIOR APPROVAL.—The term 16 ‘‘written prior approval’’ has the meaning given such 17 term in section 438.6(c)(2)(i) of title 42, Code of 18 Federal Regulations (or a successor regulation). 19 (d) FUNDING.—There are appropriated out of any 20 monies in the Treasury not otherwise appropriated 21 $7,000,000 for each of fiscal years 2026 through 2033 22 for purposes of carrying out this section. 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00357 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 358 •HR 1 RH SEC. 44134. REQUIREMENTS REGARDING WAIVER OF UNI- 1 FORM TAX REQUIREMENT FOR MEDICAID 2 PROVIDER TAX. 3 (a) IN GENERAL.—Section 1903(w) of the Social Se- 4 curity Act (42 U.S.C. 1396b(w)) is amended— 5 (1) in paragraph (3)(E), by inserting after 6 clause (ii)(II) the following new clause: 7 ‘‘(iii) For purposes of clause (ii)(I), a tax is not con- 8 sidered to be generally redistributive if any of the following 9 conditions apply: 10 ‘‘(I) Within a permissible class, the tax rate im- 11 posed on any taxpayer or tax rate group (as defined 12 in paragraph (7)(J)) explicitly defined by its rel- 13 atively lower volume or percentage of Medicaid tax- 14 able units (as defined in paragraph (7)(H)) is lower 15 than the tax rate imposed on any other taxpayer or 16 tax rate group explicitly defined by its relatively 17 higher volume or percentage of Medicaid taxable 18 units. 19 ‘‘(II) Within a permissible class, the tax rate 20 imposed on any taxpayer or tax rate group (as so 21 defined) based upon its Medicaid taxable units (as 22 so defined) is higher than the tax rate imposed on 23 any taxpayer or tax rate group based upon its non- 24 Medicaid taxable unit (as defined in paragraph 25 (7)(I)). 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00358 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 359 •HR 1 RH ‘‘(III) The tax excludes or imposes a lower tax 1 rate on a taxpayer or tax rate group (as so defined) 2 based on or defined by any description that results 3 in the same effect as described in subclause (I) or 4 (II) for a taxpayer or tax rate group. Characteristics 5 that may indicate such type of exclusion include the 6 use of terminology to establish a tax rate group— 7 ‘‘(aa) based on payments or expenditures 8 made under the program under this title with- 9 out mentioning the term ‘Medicaid’ (or any 10 similar term) to accomplish the same effect as 11 described in subclause (I) or (II); or 12 ‘‘(bb) that closely approximates a taxpayer 13 or tax rate group under the program under this 14 title, to the same effect as described in sub- 15 clause (I) or (II).’’; and 16 (2) in paragraph (7), by adding at the end the 17 following new subparagraphs: 18 ‘‘(H) The term ‘Medicaid taxable unit’ means a 19 unit that is being taxed within a health care related 20 tax that is applicable to the program under this title. 21 Such term includes a unit that is used as the basis 22 for— 23 ‘‘(i) payment under the program under this 24 title (such as Medicaid bed days); 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00359 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 360 •HR 1 RH ‘‘(ii) Medicaid revenue; 1 ‘‘(iii) costs associated with the program 2 under this title (such as Medicaid charges, 3 claims, or expenditures); and 4 ‘‘(iv) other units associated with the pro- 5 gram under this title, as determined by the Sec- 6 retary. 7 ‘‘(I) The term ‘non-Medicaid taxable unit’ 8 means a unit that is being taxed within a health 9 care related tax that is not applicable to the pro- 10 gram under this title. Such term includes a unit that 11 is used as the basis for— 12 ‘‘(i) payment by non-Medicaid payers (such 13 as non-Medicaid bed days); 14 ‘‘(ii) non-Medicaid revenue; 15 ‘‘(iii) costs that are not associated with the 16 program under this title (such as non-Medicaid 17 charges, non-Medicaid claims, or non-Medicaid 18 expenditures); and 19 ‘‘(iv) other units not associated with the 20 program under this title, as determined by the 21 Secretary. 22 ‘‘(J) The term ‘tax rate group’ means a group 23 of entities contained within a permissible class of a 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00360 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 361 •HR 1 RH health care related tax that are taxed at the same 1 rate.’’. 2 (b) EFFECTIVE DATE.—The amendments made by 3 this section shall take effect upon the date of enactment 4 of this Act, subject to any applicable transition period de- 5 termined appropriate by the Secretary of Health and 6 Human Services, not to exceed 3 fiscal years. 7 SEC. 44135. REQUIRING BUDGET NEUTRALITY FOR MED- 8 ICAID DEMONSTRATION PROJECTS UNDER 9 SECTION 1115. 10 Section 1115 of the Social Security Act (42 U.S.C. 11 1315) is amended by adding at the end the following new 12 subsection: 13 ‘‘(g) REQUIREMENT OF BUDGET NEUTRALITY FOR 14 MEDICAID DEMONSTRATION PROJECTS.— 15 ‘‘(1) IN GENERAL.—Beginning on the date of 16 the enactment of this subsection, the Secretary may 17 not approve an application for (or renewal or 18 amendment of) an experimental, pilot, or demonstra- 19 tion project undertaken under subsection (a) to pro- 20 mote the objectives of title XIX in a State (in this 21 subsection referred to as a ‘Medicaid demonstration 22 project’) unless the Secretary certifies that such 23 project is not expected to result in an increase in the 24 amount of Federal expenditures compared to the 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00361 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 362 •HR 1 RH amount that such expenditures would otherwise be 1 in the absence of such project. 2 ‘‘(2) TREATMENT OF SAVINGS.—In the event 3 that Federal expenditures with respect to a State 4 under a Medicaid demonstration project are, during 5 an approval period for such project, less than the 6 amount of such expenditures that would have other- 7 wise been made in the absence of such project, the 8 Secretary shall specify the methodology to be used 9 with respect to any subsequent approval period for 10 such project for purposes of taking the difference be- 11 tween such expenditures into account.’’. 12 Subpart D—Increasing Personal Accountability 13 SEC. 44141. REQUIREMENT FOR STATES TO ESTABLISH 14 MEDICAID COMMUNITY ENGAGEMENT RE- 15 QUIREMENTS FOR CERTAIN INDIVIDUALS. 16 (a) IN GENERAL.—Section 1902 of the Social Secu- 17 rity Act (42 U.S.C. 1396a), as amended by sections 44103 18 and 44104, is further amended by adding at the end the 19 following new subsection: 20 ‘‘(xx) COMMUNITY ENGAGEMENT REQUIREMENT FOR 21 APPLICABLE INDIVIDUALS.— 22 ‘‘(1) IN GENERAL.—Beginning January 1, 23 2029, subject to the succeeding provisions of this 24 subsection, a State shall provide, as a condition of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00362 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 363 •HR 1 RH eligibility for medical assistance for an applicable in- 1 dividual, that such individual is required to dem- 2 onstrate community engagement under paragraph 3 (2)— 4 ‘‘(A) in the case of an applicable individual 5 who has filed an application for medical assist- 6 ance under a State plan (or a waiver of such 7 plan) under this title, for 1 or more (as speci- 8 fied by the State) consecutive months imme- 9 diately preceding the month during which such 10 individual applies for such medical assistance; 11 and 12 ‘‘(B) in the case of an applicable individual 13 enrolled and receiving medical assistance under 14 a State plan (or under a waiver of such plan) 15 under this title, for 1 or more (as specified by 16 the State) months, whether or not consecu- 17 tive— 18 ‘‘(i) during the period between such 19 individual’s most recent determination (or 20 redetermination, as applicable) of eligibility 21 and such individual’s next regularly sched- 22 uled redetermination of eligibility (as 23 verified by the State as part of such regu- 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00363 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 364 •HR 1 RH larly scheduled redetermination of eligi- 1 bility); or 2 ‘‘(ii) in the case of a State that has 3 elected under paragraph (4) to conduct 4 more frequent verifications of compliance 5 with the requirement to demonstrate com- 6 munity engagement, during the period be- 7 tween the most recent and next such 8 verification with respect to such individual. 9 ‘‘(2) COMMUNITY ENGAGEMENT COMPLIANCE 10 DESCRIBED.—Subject to paragraph (3), an applica- 11 ble individual demonstrates community engagement 12 under this paragraph for a month if such individual 13 meets 1 or more of the following conditions with re- 14 spect to such month, as determined in accordance 15 with criteria established by the Secretary through 16 regulation: 17 ‘‘(A) The individual works not less than 80 18 hours. 19 ‘‘(B) The individual completes not less 20 than 80 hours of community service. 21 ‘‘(C) The individual participates in a work 22 program for not less than 80 hours. 23 ‘‘(D) The individual is enrolled in an edu- 24 cational program at least half-time. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00364 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 365 •HR 1 RH ‘‘(E) The individual engages in any com- 1 bination of the activities described in subpara- 2 graphs (A) through (D), for a total of not less 3 than 80 hours. 4 ‘‘(F) The individual has a monthly income 5 that is not less than the applicable minimum 6 wage requirement under section 6 of the Fair 7 Labor Standards Act of 1938, multiplied by 80 8 hours. 9 ‘‘(3) EXCEPTIONS.— 10 ‘‘(A) MANDATORY EXCEPTION FOR CER- 11 TAIN INDIVIDUALS.—The State shall deem an 12 applicable individual to have demonstrated com- 13 munity engagement under paragraph (2) for a 14 month if— 15 ‘‘(i) for part or all of such month, the 16 individual— 17 ‘‘(I) was a specified excluded in- 18 dividual (as defined in paragraph 19 (9)(A)(ii)); or 20 ‘‘(II) was— 21 ‘‘(aa) under the age of 19; 22 ‘‘(bb) pregnant or entitled to 23 postpartum medical assistance 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00365 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 366 •HR 1 RH under paragraph (5) or (16) of 1 subsection (e); 2 ‘‘(cc) entitled to, or enrolled 3 for, benefits under part A of title 4 XVIII, or enrolled for benefits 5 under part B of title XVIII; or 6 ‘‘(dd) described in any of 7 subclauses (I) through (VII) of 8 subsection (a)(10)(A)(i); or 9 ‘‘(ii) at any point during the 3-month 10 period ending on the first day of such 11 month, the individual was an inmate of a 12 public institution. 13 ‘‘(B) OPTIONAL EXCEPTION FOR SHORT- 14 TERM HARDSHIP EVENTS.— 15 ‘‘(i) IN GENERAL.—The State plan (or 16 waiver of such plan) may provide, in the 17 case of an applicable individual who experi- 18 ences a short-term hardship event during a 19 month, that the State shall, upon the re- 20 quest of such individual under procedures 21 established by the State (in accordance 22 with standards specified by the Secretary), 23 deem such individual to have demonstrated 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00366 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 367 •HR 1 RH community engagement under paragraph 1 (2) for such month. 2 ‘‘(ii) SHORT-TERM HARDSHIP EVENT 3 DEFINED.—For purposes of this subpara- 4 graph, an applicable individual experiences 5 a short-term hardship event during a 6 month if, for part or all of such month— 7 ‘‘(I) such individual receives in- 8 patient hospital services, nursing facil- 9 ity services, services in an inter- 10 mediate care facility for individuals 11 with intellectual disabilities, inpatient 12 psychiatric hospital services, or such 13 other services as the Secretary deter- 14 mines appropriate; 15 ‘‘(II) such individual resides in a 16 county (or equivalent unit of local 17 government)— 18 ‘‘(aa) in which there exists 19 an emergency or disaster de- 20 clared by the President pursuant 21 to the National Emergencies Act 22 or the Robert T. Stafford Dis- 23 aster Relief and Emergency As- 24 sistance Act; or 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00367 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 368 •HR 1 RH ‘‘(bb) that, subject to a re- 1 quest from the State to the Sec- 2 retary, made in such form, at 3 such time, and containing such 4 information as the Secretary may 5 require, has an unemployment 6 rate that is at or above the lesser 7 of— 8 ‘‘(AA) 8 percent; or 9 ‘‘(BB) 1.5 times the 10 national unemployment rate; 11 or 12 ‘‘(III) such individual experiences 13 any other short-term hardship (as de- 14 fined by the Secretary). 15 ‘‘(4) OPTION TO CONDUCT MORE FREQUENT 16 COMPLIANCE VERIFICATIONS.—With respect to an 17 applicable individual enrolled and receiving medical 18 assistance under a State plan (or a waiver of such 19 plan) under this title, the State shall verify (in ac- 20 cordance with procedures specified by the Secretary) 21 that each such individual has met the requirement 22 to demonstrate community engagement under para- 23 graph (1) during each such individual’s regularly 24 scheduled redetermination of eligibility, except that a 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00368 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 369 •HR 1 RH State may provide for such verifications more fre- 1 quently. 2 ‘‘(5) EX PARTE VERIFICATIONS.—For purposes 3 of verifying that an applicable individual has met the 4 requirement to demonstrate community engagement 5 under paragraph (1), the State shall, in accordance 6 with standards established by the Secretary, estab- 7 lish processes and use reliable information available 8 to the State (such as payroll data) without requir- 9 ing, where possible, the applicable individual to sub- 10 mit additional information. 11 ‘‘(6) PROCEDURE IN THE CASE OF NONCOMPLI- 12 ANCE.— 13 ‘‘(A) IN GENERAL.—If a State is unable to 14 verify that an applicable individual has met the 15 requirement to demonstrate community engage- 16 ment under paragraph (1) (including, if appli- 17 cable, by verifying that such individual was 18 deemed to have demonstrated community en- 19 gagement under paragraph (3)) the State shall 20 (in accordance with standards specified by the 21 Secretary)— 22 ‘‘(i) provide such individual with the 23 notice of noncompliance described in sub- 24 paragraph (B); 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00369 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 370 •HR 1 RH ‘‘(ii) (I) provide such individual with a 1 period of 30 calendar days, beginning on 2 the date on which such notice of non- 3 compliance is received by the individual, 4 to— 5 ‘‘(aa) make a satisfactory show- 6 ing to the State of compliance with 7 such requirement (including, if appli- 8 cable, by showing that such individual 9 was deemed to have demonstrated 10 community engagement under para- 11 graph (3)); or 12 ‘‘(bb) make a satisfactory show- 13 ing to the State that such require- 14 ment does not apply to such indi- 15 vidual on the basis that such indi- 16 vidual does not meet the definition of 17 applicable individual under paragraph 18 (9)(A); and 19 ‘‘(II) if such individual is enrolled 20 under the State plan (or a waiver of such 21 plan) under this title, continue to provide 22 such individual with medical assistance 23 during such 30-calendar-day period; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00370 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 371 •HR 1 RH ‘‘(iii) if no such satisfactory showing 1 is made and the individual is not a speci- 2 fied excluded individual described in para- 3 graph (9)(A)(ii), deny such individual’s ap- 4 plication for medical assistance under the 5 State plan (or waiver of such plan) or, as 6 applicable, disenroll such individual from 7 the plan (or waiver of such plan) not later 8 than the end of the month following the 9 month in which such 30-calendar-day pe- 10 riod ends, provided that— 11 ‘‘(I) the State first determines 12 whether, with respect to the indi- 13 vidual, there is any other basis for eli- 14 gibility for medical assistance under 15 the State plan (or waiver of such 16 plan) or for another insurance afford- 17 ability program; and 18 ‘‘(II) the individual is provided 19 written notice and granted an oppor- 20 tunity for a fair hearing in accordance 21 with subsection (a)(3). 22 ‘‘(B) NOTICE.—The notice of noncompli- 23 ance provided to an applicable individual under 24 subparagraph (A)(i) shall include information 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00371 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 372 •HR 1 RH (in accordance with standards specified by the 1 Secretary) on— 2 ‘‘(i) how such individual may make a 3 satisfactory showing of compliance with 4 such requirement (as described in subpara- 5 graph (A)(ii)) or make a satisfactory show- 6 ing that such requirement does not apply 7 to such individual on the basis that such 8 individual does not meet the definition of 9 applicable individual under paragraph 10 (9)(A); and 11 ‘‘(ii) how such individual may reapply 12 for medical assistance under the State plan 13 (or a waiver of such plan) under this title 14 in the case that such individuals’ applica- 15 tion is denied or, as applicable, in the case 16 that such individual is disenrolled from the 17 plan (or waiver). 18 ‘‘(7) TREATMENT OF NONCOMPLIANT INDIVID- 19 UALS IN RELATION TO CERTAIN OTHER PROVI- 20 SIONS.— 21 ‘‘(A) CERTAIN FMAP INCREASES.—A State 22 shall not be treated as not providing medical as- 23 sistance to all individuals described in section 24 1902(a)(10)(A)(i)(VIII), or as not expending 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00372 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 373 •HR 1 RH amounts for all such individuals under the 1 State plan (or waiver of such plan), solely be- 2 cause such an individual is determined ineligible 3 for medical assistance under the State plan (or 4 waiver) on the basis of a failure to meet the re- 5 quirement to demonstrate community engage- 6 ment under paragraph (1). 7 ‘‘(B) OTHER PROVISIONS.—For purposes 8 of section 36B(c)(2)(B) of the Internal Revenue 9 Code of 1986, an individual shall be deemed to 10 be eligible for minimum essential coverage de- 11 scribed in section 5000A(f)(1)(A)(ii) of such 12 Code for a month if such individual would have 13 been eligible for medical assistance under a 14 State plan (or a waiver of such plan) under this 15 title but for a failure to meet the requirement 16 to demonstrate community engagement under 17 paragraph (1). 18 ‘‘(8) OUTREACH.— 19 ‘‘(A) IN GENERAL.—In accordance with 20 standards specified by the Secretary, beginning 21 not later than October 1, 2028 (or, if earlier, 22 the date that precedes January 1, 2029, by the 23 number of months specified by the State under 24 paragraph (1)(A) plus 3 months), and periodi- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00373 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 374 •HR 1 RH cally thereafter, the State shall notify applicable 1 individuals enrolled under a State plan (or 2 waiver) under this title of the requirement to 3 demonstrate community engagement under this 4 subsection. Such notice shall include informa- 5 tion on— 6 ‘‘(i) how to comply with such require- 7 ment, including an explanation of the ex- 8 ceptions to such requirement under para- 9 graph (3) and the definition of the term 10 ‘applicable individual’ under paragraph 11 (9)(A); 12 ‘‘(ii) the consequences of noncompli- 13 ance with such requirement; and 14 ‘‘(iii) how to report to the State any 15 change in the individual’s status that could 16 result in— 17 ‘‘(I) the applicability of an excep- 18 tion under paragraph (3) (or the end 19 of the applicability of such an excep- 20 tion); or 21 ‘‘(II) the individual qualifying as 22 a specified excluded individual under 23 paragraph (9)(A)(ii). 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00374 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 375 •HR 1 RH ‘‘(B) FORM OF OUTREACH NOTICE.—A no- 1 tice required under subparagraph (A) shall be 2 delivered— 3 ‘‘(i) by regular mail (or, if elected by 4 the individual, in an electronic format); 5 and 6 ‘‘(ii) in 1 or more additional forms, 7 which may include telephone, text message, 8 an internet website, other commonly avail- 9 able electronic means, and such other 10 forms as the Secretary determines appro- 11 priate. 12 ‘‘(9) DEFINITIONS.—In this subsection: 13 ‘‘(A) APPLICABLE INDIVIDUAL.— 14 ‘‘(i) IN GENERAL.—The term ‘applica- 15 ble individual’ means an individual (other 16 than a specified excluded individual (as de- 17 fined in clause (ii)))— 18 ‘‘(I) who is eligible to enroll (or 19 is enrolled) under the State plan 20 under subsection (a)(10)(A)(i)(VIII); 21 or 22 ‘‘(II) who— 23 ‘‘(aa) is otherwise eligible to 24 enroll (or is enrolled) under a 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00375 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 376 •HR 1 RH waiver of such plan that provides 1 coverage that is equivalent to 2 minimum essential coverage (as 3 described in section 4 5000A(f)(1)(A) of the Internal 5 Revenue Code of 1986 and as de- 6 termined in accordance with 7 standards prescribed by the Sec- 8 retary in regulations); and 9 ‘‘(bb) has attained the age 10 of 19 and is under 65 years of 11 age, is not pregnant, is not enti- 12 tled to, or enrolled for, benefits 13 under part A of title XVIII, or 14 enrolled for benefits under part 15 B of title XVIII, and is not oth- 16 erwise eligible to enroll under 17 such plan. 18 ‘‘(ii) SPECIFIED EXCLUDED INDI- 19 VIDUAL.—For purposes of clause (i), the 20 term ‘specified excluded individual’ means 21 an individual, as determined by the State 22 (in accordance with standards specified by 23 the Secretary)— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00376 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 377 •HR 1 RH ‘‘(I) who is described in sub- 1 section (a)(10)(A)(i)(IX); 2 ‘‘(II) who— 3 ‘‘(aa) is an Indian or an 4 Urban Indian (as such terms are 5 defined in paragraphs (13) and 6 (28) of section 4 of the Indian 7 Health Care Improvement Act); 8 ‘‘(bb) is a California Indian 9 described in section 809(a) of 10 such Act; or 11 ‘‘(cc) has otherwise been de- 12 termined eligible as an Indian for 13 the Indian Health Service under 14 regulations promulgated by the 15 Secretary; 16 ‘‘(III) who is the parent, guard- 17 ian, or caretaker relative of a disabled 18 individual or a dependent child; 19 ‘‘(IV) who is a veteran with a 20 disability rated as total under section 21 1155 of title 38, United States Code; 22 ‘‘(V) who is medically frail or 23 otherwise has special medical needs 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00377 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 378 •HR 1 RH (as defined by the Secretary), includ- 1 ing an individual— 2 ‘‘(aa) who is blind or dis- 3 abled (as defined in section 4 1614); 5 ‘‘(bb) with a substance use 6 disorder; 7 ‘‘(cc) with a disabling men- 8 tal disorder; 9 ‘‘(dd) with a physical, intel- 10 lectual or developmental dis- 11 ability that significantly impairs 12 their ability to perform 1 or more 13 activities of daily living; 14 ‘‘(ee) with a serious and 15 complex medical condition; or 16 ‘‘(ff) subject to the approval 17 of the Secretary, with any other 18 medical condition identified by 19 the State that is not otherwise 20 identified under this clause; 21 ‘‘(VI) who— 22 ‘‘(aa) is in compliance with 23 any requirements imposed by the 24 State pursuant to section 407; or 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00378 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 379 •HR 1 RH ‘‘(bb) is a member of a 1 household that receives supple- 2 mental nutrition assistance pro- 3 gram benefits under the Food 4 and Nutrition Act of 2008 and is 5 not exempt from a work require- 6 ment under such Act; 7 ‘‘(VII) who is participating in a 8 drug addiction or alcoholic treatment 9 and rehabilitation program (as defined 10 in section 3(h) of the Food and Nutri- 11 tion Act of 2008); 12 ‘‘(VIII) who is an inmate of a 13 public institution; or 14 ‘‘(IX) who meets such other cri- 15 teria as the Secretary determines ap- 16 propriate. 17 ‘‘(B) EDUCATIONAL PROGRAM.—The term 18 ‘educational program’ means— 19 ‘‘(i) an institution of higher education 20 (as defined in section 101 of the Higher 21 Education Act of 1965); 22 ‘‘(ii) a program of career and tech- 23 nical education (as defined in section 3 of 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00379 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 380 •HR 1 RH the Carl D. Perkins Career and Technical 1 Education Act of 2006); or 2 ‘‘(iii) any other educational program 3 that meets such criteria as the Secretary 4 determines appropriate. 5 ‘‘(C) STATE.—The term ‘State’ means 1 of 6 the 50 States or the District of Columbia. 7 ‘‘(D) WORK PROGRAM.—The term ‘work 8 program’ has the meaning given such term in 9 section 6(o)(1) of the Food and Nutrition Act 10 of 2008. 11 ‘‘(10) PROHIBITING WAIVER OF COMMUNITY 12 ENGAGEMENT REQUIREMENTS.—Notwithstanding 13 section 1115(a), the provisions of this subsection 14 may not be waived.’’. 15 (b) CONFORMING AMENDMENT.—Section 16 1902(a)(10)(A)(i)(VIII) of the Social Security Act (42 17 U.S.C. 1396a(a)(10)(A)(i)(VIII)) is amended by striking 18 ‘‘subject to subsection (k)’’ and inserting ‘‘subject to sub- 19 sections (k) and (xx)’’. 20 (c) RULEMAKING.—Not later than July 1, 2027, the 21 Secretary of Health and Human Services shall promulgate 22 regulations for purposes of carrying out the amendments 23 made by this section. 24 (d) GRANTS TO STATES.— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00380 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 381 •HR 1 RH (1) IN GENERAL.—The Secretary of Health and 1 Human Services shall, out of amounts appropriated 2 under paragraph (3), award to each State a grant 3 equal to the amount specified in paragraph (2) for 4 such State for purposes of establishing systems nec- 5 essary to carry out the provisions of, and amend- 6 ments made by, this section. 7 (2) AMOUNT SPECIFIED.—For purposes of 8 paragraph (2), the amount specified in this para- 9 graph is an amount that bears the same ratio to the 10 amount appropriated under paragraph (3) as the 11 number of applicable individuals (as defined in sec- 12 tion 1902(xx) of the Social Security Act, as added 13 by subsection (a)) residing in such State bears to 14 the total number of such individuals residing in all 15 States. 16 (3) FUNDING.—There are appropriated, out of 17 any monies in the Treasury not otherwise appro- 18 priated, $100,000,000 for fiscal year 2026 for pur- 19 poses of awarding grants under paragraph (1). 20 (4) DEFINITION.—In this subsection, the term 21 ‘‘State’’ means 1 of the 50 States and the District 22 of Columbia. 23 (e) IMPLEMENTATION FUNDING.—For the purposes 24 of carrying out the provisions of, and the amendments 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00381 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 382 •HR 1 RH made by, this section, there are appropriated, out of any 1 monies in the Treasury not otherwise appropriated, to the 2 Secretary of Health and Human Services, $50,000,000 for 3 fiscal year 2026, to remain available until expended. 4 SEC. 44142. MODIFYING COST SHARING REQUIREMENTS 5 FOR CERTAIN EXPANSION INDIVIDUALS 6 UNDER THE MEDICAID PROGRAM. 7 (a) IN GENERAL.—Section 1916 of the Social Secu- 8 rity Act (42 U.S.C. 1396o) is amended— 9 (1) in subsection (a), in the matter preceding 10 paragraph (1), by inserting ‘‘(other than, beginning 11 October 1, 2028, specified individuals (as defined in 12 subsection (k)(3)))’’ after ‘‘individuals’’; and 13 (2) by adding at the end the following new sub- 14 section: 15 ‘‘(k) SPECIAL RULES FOR CERTAIN EXPANSION IN- 16 DIVIDUALS.— 17 ‘‘(1) PREMIUMS.—Beginning October 1, 2028, 18 the State plan shall provide that in the case of a 19 specified individual (as defined in paragraph (3)) 20 who is eligible under the plan, no enrollment fee, 21 premium, or similar charge will be imposed under 22 the plan. 23 ‘‘(2) REQUIRED IMPOSITION OF COST SHAR- 24 ING.— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00382 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 383 •HR 1 RH ‘‘(A) IN GENERAL.—Subject to subpara- 1 graph (B) and subsection (j), in the case of a 2 specified individual, the State plan shall, begin- 3 ning October 1, 2028, provide for the imposi- 4 tion of such deductions, cost sharing, or similar 5 charges determined appropriate by the State (in 6 an amount greater than $0) with respect to 7 medical assistance furnished to such an indi- 8 vidual. 9 ‘‘(B) LIMITATIONS.— 10 ‘‘(i) EXCLUSION OF CERTAIN SERV- 11 ICES.—In no case may a deduction, cost 12 sharing, or similar charge be imposed 13 under the State plan with respect to serv- 14 ices described in any of subparagraphs (B) 15 through (J) of subsection (a)(2) furnished 16 to a specified individual. 17 ‘‘(ii) ITEM AND SERVICE LIMITA- 18 TION.— 19 ‘‘(I) IN GENERAL.—Except as 20 provided in subclause (II), in no case 21 may a deduction, cost sharing, or 22 similar charge imposed under the 23 State plan with respect to an item or 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00383 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 384 •HR 1 RH service furnished to a specified indi- 1 vidual exceed $35. 2 ‘‘(II) SPECIAL RULES FOR PRE- 3 SCRIPTION DRUGS.—In no case may a 4 deduction, cost sharing, or similar 5 charge imposed under the State plan 6 with respect to a prescription drug 7 furnished to a specified individual ex- 8 ceed the limit that would be applicable 9 under paragraph (2)(A)(i) or (2)(B) 10 of section 1916A(c) with respect to 11 such drug and individual if such drug 12 so furnished were subject to cost shar- 13 ing under such section. 14 ‘‘(iii) MAXIMUM LIMIT ON COST SHAR- 15 ING.—The total aggregate amount of de- 16 ductions, cost sharing, or similar charges 17 imposed under the State plan for all indi- 18 viduals in the family may not exceed 5 per- 19 cent of the family income of the family in- 20 volved, as applied on a quarterly or month- 21 ly basis (as specified by the State). 22 ‘‘(C) CASES OF NONPAYMENT.—Notwith- 23 standing subsection (e) or any other provision 24 of law, a State may permit a provider partici- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00384 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 385 •HR 1 RH pating under the State plan to require, as a 1 condition for the provision of care, items, or 2 services to a specified individual entitled to 3 medical assistance under this title for such 4 care, items, or services, the payment of any de- 5 ductions, cost sharing, or similar charges au- 6 thorized to be imposed with respect to such 7 care, items, or services. Nothing in this sub- 8 paragraph shall be construed as preventing a 9 provider from reducing or waiving the applica- 10 tion of such deductions, cost sharing, or similar 11 charges on a case-by-case basis. 12 ‘‘(3) SPECIFIED INDIVIDUAL DEFINED.—For 13 purposes of this subsection, the term ‘specified indi- 14 vidual’ means an individual enrolled under section 15 1902(a)(10)(A)(i)(VIII) who has a family income (as 16 determined in accordance with section 1902(e)(14)) 17 that exceeds the poverty line (as defined in section 18 2110(c)(5)) applicable to a family of the size in- 19 volved.’’. 20 (b) CONFORMING AMENDMENTS.— 21 (1) REQUIRED APPLICATION.—Section 22 1902(a)(14) of the Social Security Act (42 U.S.C. 23 1396a(a)(14)) is amended by inserting ‘‘and provide 24 for imposition of such deductions, cost sharing, or 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00385 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 386 •HR 1 RH similar charges for medical assistance furnished to 1 specified individuals (as defined in paragraph (3) of 2 section 1916(k)) in accordance with paragraph (2) 3 of such section’’ after ‘‘section 1916’’. 4 (2) NONAPPLICABILITY OF ALTERNATIVE COST 5 SHARING.—Section 1916A(a)(1) of the Social Secu- 6 rity Act (42 U.S.C. 1396o–1(a)(1)) is amended, in 7 the second sentence, by striking ‘‘or (j)’’ and insert- 8 ing ‘‘(j), or (k)’’. 9 PART 2—AFFORDABLE CARE ACT 10 SEC. 44201. ADDRESSING WASTE, FRAUD, AND ABUSE IN 11 THE ACA EXCHANGES. 12 (a) CHANGES TO ENROLLMENT PERIODS FOR EN- 13 ROLLING IN EXCHANGES.—Section 1311 of the Patient 14 Protection and Affordable Care Act (42 U.S.C. 18031) is 15 amended— 16 (1) in subsection (c)(6)— 17 (A) by striking subparagraph (A); 18 (B) by striking ‘‘The Secretary’’ and in- 19 serting the following: 20 ‘‘(A) IN GENERAL.—The Secretary’’; 21 (C) by redesignating subparagraphs (B) 22 through (D) as clauses (i) through (iii), respec- 23 tively, and adjusting the margins accordingly; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00386 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 387 •HR 1 RH (D) in clause (i), as so redesignated, by 1 striking ‘‘periods, as determined by the Sec- 2 retary for calendar years after the initial enroll- 3 ment period;’’ and inserting the following: ‘‘pe- 4 riods for plans offered in the individual mar- 5 ket— 6 ‘‘(I) for enrollment for plan years 7 beginning before January 1, 2026, as 8 determined by the Secretary; and 9 ‘‘(II) for enrollment for plan 10 years beginning on or after January 11 1, 2026, beginning on November 1 12 and ending on December 15 of the 13 preceding calendar year;’’; 14 (E) in clause (ii), as so redesignated, by 15 inserting ‘‘subject to subparagraph (B),’’ before 16 ‘‘special enrollment periods specified’’; and 17 (F) by adding at the end the following new 18 subparagraph: 19 ‘‘(B) PROHIBITED SPECIAL ENROLLMENT 20 PERIOD.—With respect to plan years beginning 21 on or after January 1, 2026, the Secretary may 22 not require an Exchange to provide for a spe- 23 cial enrollment period for an individual on the 24 basis of the relationship of the income of such 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00387 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 388 •HR 1 RH individual to the poverty line, other than a spe- 1 cial enrollment period based on a change in cir- 2 cumstances or the occurrence of a specific 3 event.’’; and 4 (2) in subsection (d), by adding at the end the 5 following new paragraphs: 6 ‘‘(8) PROHIBITED ENROLLMENT PERIODS.—An 7 Exchange may not provide for, with respect to en- 8 rollment for plan years beginning on or after Janu- 9 ary 1, 2026— 10 ‘‘(A) an annual open enrollment period 11 other than the period described in subpara- 12 graph (A)(i) of subsection (c)(6); or 13 ‘‘(B) a special enrollment period described 14 in subparagraph (B) of such subsection. 15 ‘‘(9) VERIFICATION OF ELIGIBILITY FOR SPE- 16 CIAL ENROLLMENT PERIODS.— 17 ‘‘(A) IN GENERAL.—With respect to enroll- 18 ment for plan years beginning on or after Janu- 19 ary 1, 2026, an Exchange shall verify that each 20 individual seeking to enroll in a qualified health 21 plan offered by the Exchange during a special 22 enrollment period selected under subparagraph 23 (B) is eligible to enroll during such special en- 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00388 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 389 •HR 1 RH rollment period prior to enrolling such indi- 1 vidual in such plan. 2 ‘‘(B) SELECTED SPECIAL ENROLLMENT 3 PERIODS.—For purposes of subparagraph (A), 4 an Exchange shall select one or more special 5 enrollment periods for a plan year with respect 6 to which such Exchange shall conduct the 7 verification required under subparagraph (A) 8 such that the Exchange conducts such 9 verification for not less than 75 percent of all 10 individuals enrolling in a qualified health plan 11 offered by the Exchange during any special en- 12 rollment period with respect to such plan 13 year.’’. 14 (b) VERIFYING INCOME FOR INDIVIDUALS ENROLL- 15 ING IN A QUALIFIED HEALTH PLAN THROUGH AN EX- 16 CHANGE.— 17 (1) IN GENERAL.—Section 1411(e)(4) of the 18 Patient Protection and Affordable Care Act (42 19 U.S.C. 18081(e)(4)) is amended— 20 (A) by redesignating subparagraph (C) as 21 subparagraph (E); and 22 (B) by inserting after subparagraph (B) 23 the following new subparagraphs: 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00389 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 390 •HR 1 RH ‘‘(C) REQUIRING VERIFICATION OF IN- 1 COME AND FAMILY SIZE WHEN TAX DATA IS 2 UNAVAILABLE.—For plan years beginning on or 3 after January 1, 2026, for purposes of subpara- 4 graph (A), in the case that the Exchange re- 5 quests data from the Secretary of the Treasury 6 regarding an individual’s household income and 7 the Secretary of the Treasury does not return 8 such data, such information may not be verified 9 solely on the basis of the attestation of such in- 10 dividual with respect to such household income, 11 and the Exchange shall take the actions de- 12 scribed in subparagraph (A). 13 ‘‘(D) REQUIRING VERIFICATION OF IN- 14 COME IN THE CASE OF CERTAIN INCOME DIS- 15 CREPANCIES.— 16 ‘‘(i) IN GENERAL.—Subject to clause 17 (iii), for plan years beginning on or after 18 January 1, 2026, for purposes of subpara- 19 graph (A), in the case that a specified in- 20 come discrepancy described in clause (ii) of 21 this subparagraph exists with respect to 22 the information provided by an applicant 23 under subsection (b)(3), the household in- 24 come of such individual shall be treated as 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00390 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 391 •HR 1 RH inconsistent with information in the 1 records maintained by persons under sub- 2 section (c), or as not verified under sub- 3 section (d), and the Exchange shall take 4 the actions described in such subparagraph 5 (A). 6 ‘‘(ii) SPECIFIED INCOME DISCREP- 7 ANCY.—For purposes of clause (i), a speci- 8 fied income discrepancy exists with respect 9 to the information provided by an appli- 10 cant under subsection (b)(3) if— 11 ‘‘(I) the applicant attests to a 12 projected annual household income 13 that would qualify such applicant to 14 be an applicable taxpayer under sec- 15 tion 36B(c)(1)(A) of the Internal Rev- 16 enue Code of 1986 with respect to the 17 taxable year involved; 18 ‘‘(II) the Exchange receives data 19 from the Secretary of the Treasury or 20 the Commissioner of Social Security, 21 or other reliable, third party data, 22 that indicates that the household in- 23 come of such applicant is less than 24 the household income that would qual- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00391 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 392 •HR 1 RH ify such applicant to be an applicable 1 taxpayer under such section 2 36B(c)(1)(A) with respect to the tax- 3 able year involved; 4 ‘‘(III) such attested projected an- 5 nual household income exceeds the in- 6 come reflected in the data described in 7 subclause (II) by a reasonable thresh- 8 old established by the Exchange and 9 approved by the Secretary (which 10 shall be not less than 10 percent, and 11 may also be a dollar amount); and 12 ‘‘(IV) the Exchange has not as- 13 sessed or determined based on the 14 data described in subclause (II) that 15 the household income of the applicant 16 meets the applicable income-based eli- 17 gibility standard for the Medicaid pro- 18 gram under title XIX of the Social 19 Security Act or the State children’s 20 health insurance program under title 21 XXI of such Act. 22 ‘‘(iii) EXCLUSION OF CERTAIN INDI- 23 VIDUALS INELIGIBLE FOR MEDICAID.— 24 This subparagraph shall not apply in the 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00392 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 393 •HR 1 RH case of an applicant who is an alien law- 1 fully present in the United States, who is 2 not eligible for the Medicaid program 3 under title XIX of the Social Security Act 4 by reason of such alien status.’’. 5 (2) REQUIRING INDIVIDUALS ON WHOSE BE- 6 HALF ADVANCE PAYMENTS OF THE PREMIUM TAX 7 CREDITS ARE MADE TO FILE AND RECONCILE ON AN 8 ANNUAL BASIS.—Section 1412(b) of the Patient 9 Protection and Affordable Care Act (42 U.S.C. 10 18082(b)) is amended by adding at the end the fol- 11 lowing new paragraph: 12 ‘‘(3) ANNUAL REQUIREMENT TO FILE AND REC- 13 ONCILE.— 14 ‘‘(A) IN GENERAL.—For plan years begin- 15 ning on or after January 1, 2026, in the case 16 of an individual with respect to whom any ad- 17 vance payment of the premium tax credit allow- 18 able under section 36B of the Internal Revenue 19 Code of 1986 was made under this section to 20 the issuer of a qualified health plan for the rel- 21 evant prior tax year, an advance determination 22 of eligibility for such premium tax credit may 23 not be made under this subsection with respect 24 to such individual and such plan year if the Ex- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00393 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 394 •HR 1 RH change determines, based on information pro- 1 vided by the Secretary of the Treasury, that 2 such individual— 3 ‘‘(i) has not filed an income tax re- 4 turn, as required under sections 6011 and 5 6012 of such Code (and implementing reg- 6 ulations), for the relevant prior tax year; 7 or 8 ‘‘(ii) as necessary, has not reconciled 9 (in accordance with subsection (f) of such 10 section 36B) the advance payment of the 11 premium tax credit made with respect to 12 such individual for such relevant prior tax 13 year. 14 ‘‘(B) RELEVANT PRIOR TAX YEAR.—For 15 purposes of subparagraph (A), the term ‘rel- 16 evant prior tax year’ means, with respect to the 17 advance determination of eligibility made under 18 this subsection with respect to an individual, 19 the taxable year for which tax return data 20 would be used for purposes of verifying the 21 household income and family size of such indi- 22 vidual (as described in section 1411(b)(3)(A)). 23 ‘‘(C) PRELIMINARY ATTESTATION.—If an 24 individual subject to subparagraph (A) attests 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00394 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 395 •HR 1 RH that such individual has fulfilled the require- 1 ments to file an income tax return for the rel- 2 evant prior tax year and, as necessary, to rec- 3 oncile the advance payment of the premium tax 4 credit made with respect to such individual for 5 such relevant prior tax year (as described in 6 clauses (i) and (ii) of such subparagraph), the 7 Secretary may make an initial advance deter- 8 mination of eligibility with respect to such indi- 9 vidual and may delay for a reasonable period 10 (as determined by the Secretary) any deter- 11 mination based on information provided by the 12 Secretary of the Treasury that such individual 13 has not fulfilled such requirements. 14 ‘‘(D) NOTICE.—If the Secretary deter- 15 mines that an individual did not meet the re- 16 quirements described in subparagraph (A) with 17 respect to the relevant prior tax year and noti- 18 fies the Exchange of such determination, the 19 Exchange shall comply with the notification re- 20 quirement described in section 155.305(f)(4)(i) 21 of title 45, Code of Federal Regulations (as in 22 effect with respect to plan year 2025).’’. 23 (3) REMOVING AUTOMATIC EXTENSION OF PE- 24 RIOD TO RESOLVE INCOME INCONSISTENCIES.—The 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00395 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 396 •HR 1 RH Secretary of Health and Human Services shall revise 1 section 155.315(f) of title 45, Code of Federal Regu- 2 lations (or any successor regulation), to remove 3 paragraph (7) of such section such that, with respect 4 to enrollment for plan years beginning on or after 5 January 1, 2026, in the case that an Exchange es- 6 tablished under subtitle D of title I of the Patient 7 Protection and Affordable Care Act (42 U.S.C. 8 18021 et seq.) provides an individual applying for 9 enrollment in a qualified health plan with a 90-day 10 period to resolve an inconsistency in the application 11 of such individual pursuant to section 12 1411(e)(4)(A)(ii)(II) of such Act, the Exchange may 13 not provide for an automatic extension to such 90- 14 day period on the basis that such individual is re- 15 quired to present satisfactory documentary evidence 16 to verify household income. 17 (c) REVISING RULES ON ALLOWABLE VARIATION IN 18 ACTUARIAL VALUE OF HEALTH PLANS.—The Secretary 19 of Health and Human Services shall— 20 (1) revise section 156.140(c) of title 45, Code 21 of Federal Regulations (or a successor regulation), 22 to provide that, for plan years beginning on or after 23 January 1, 2026, the allowable variation in the actu- 24 arial value of a health plan applicable under such 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00396 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 397 •HR 1 RH section shall be the allowable variation for such plan 1 applicable under such section for plan year 2022; 2 (2) revise section 156.200(b)(3) of title 45, 3 Code of Federal Regulations (or a successor regula- 4 tion), to provide that, for plan years beginning on or 5 after January 1, 2026, the requirement for a quali- 6 fied health plan issuer described in such section is 7 that the issuer ensures that each qualified health 8 plan complies with benefit design standards, as de- 9 fined in section 156.20 of such title; and 10 (3) revise section 156.400 of title 45, Code of 11 Federal Regulations (or a successor regulation), to 12 provide that, for plan years beginning on or after 13 January 1, 2026, the term ‘‘de minimis variation for 14 a silver plan variation’’ means a minus 1 percentage 15 point and plus 1 percentage point allowable actuarial 16 value variation. 17 (d) UPDATING PREMIUM ADJUSTMENT PERCENTAGE 18 METHODOLOGY.—Section 1302(c)(4) of the Patient Pro- 19 tection and Affordable Care Act (42 U.S.C. 18022(c)(4)) 20 is amended— 21 (1) by striking ‘‘For purposes’’ and inserting: 22 ‘‘(A) IN GENERAL.—For purposes’’; and 23 (2) by adding at the end the following new sub- 24 paragraph: 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00397 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 398 •HR 1 RH ‘‘(B) UPDATE TO METHODOLOGY.—For 1 calendar years beginning with 2026, the pre- 2 mium adjustment percentage under this para- 3 graph for such calendar year shall be deter- 4 mined consistent with the methodology pub- 5 lished in the Federal Register on April 25, 6 2019 (84 Fed. Reg. 17537 through 17541).’’. 7 (e) ELIMINATING THE FIXED-DOLLAR AND GROSS- 8 PERCENTAGE THRESHOLDS APPLICABLE TO EXCHANGE 9 ENROLLMENTS.—The Secretary of Health and Human 10 Services shall revise section 155.400(g) of title 45, Code 11 of Federal Regulations (or a successor regulation) to 12 eliminate, for plan years beginning on or after January 13 1, 2026, the gross premium percentage-based premium 14 payment threshold policy described in paragraph (2) of 15 such section and the fixed-dollar premium payment 16 threshold policy described in paragraph (3) of such sec- 17 tion. 18 (f) PROHIBITING AUTOMATIC REENROLLMENT FROM 19 BRONZE TO SILVER LEVEL QUALIFIED HEALTH PLANS 20 OFFERED BY EXCHANGES.—The Secretary of Health and 21 Human Services shall revise section 155.335(j) of title 45, 22 Code of Federal Regulations (or any successor regulation) 23 to remove paragraph (4) of such section such that, with 24 respect to reenrollments for plan years beginning on or 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00398 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 399 •HR 1 RH after January 1, 2026, an Exchange established under 1 subtitle D of title I of the Patient Protection and Afford- 2 able Care Act (42 U.S.C. 18021 et seq.) may not reenroll 3 an individual who was enrolled in a bronze level qualified 4 health plan in a silver level qualified health plan (as such 5 terms are defined in section 1301(a) and described in 6 1302(d) of such Act) unless otherwise permitted under 7 section 155.335(j) of title 45, Code of Federal Regula- 8 tions, as in effect on the day before the date of the enact- 9 ment of this section. 10 (g) REDUCING ADVANCE PAYMENTS OF PREMIUM 11 TAX CREDITS FOR CERTAIN INDIVIDUALS REENROLLED 12 IN EXCHANGES.—Section 1412 of the Patient Protection 13 and Affordable Care Act (42 U.S.C. 18082) is amended— 14 (1) in subsection (a)(3), by inserting ‘‘, subject 15 to subsection (c)(2)(C),’’ after ‘‘qualified health 16 plans’’; and 17 (2) in subsection (c)(2)— 18 (A) in subparagraph (A), by striking 19 ‘‘The’’ and inserting ‘‘Subject to subparagraph 20 (C), the’’; and 21 (B) by adding at the end the following new 22 subparagraph: 23 ‘‘(C) REDUCTION IN ADVANCE PAYMENT 24 FOR SPECIFIED REENROLLED INDIVIDUALS.— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00399 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 400 •HR 1 RH ‘‘(i) IN GENERAL.—The amount of an 1 advance payment made under subpara- 2 graph (A) to reduce the premium payable 3 for a qualified health plan that provides 4 coverage to a specified reenrolled individual 5 for an applicable month shall be an 6 amount equal to the amount that would 7 otherwise be made under such subpara- 8 graph reduced by $5 (or such higher 9 amount as the Secretary determines appro- 10 priate). 11 ‘‘(ii) DEFINITIONS.—In this subpara- 12 graph: 13 ‘‘(I) APPLICABLE MONTH.—The 14 term ‘applicable month’ means, with 15 respect to a specified reenrolled indi- 16 vidual, any month during a plan year 17 beginning on or after January 1, 18 2027 (or, in the case of an individual 19 reenrolled in a qualified health plan 20 by an Exchange established pursuant 21 to section 1321(c), January 1, 2026) 22 if, prior to the first day of such 23 month, such individual has failed to 24 confirm or update such information as 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00400 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 401 •HR 1 RH is necessary to redetermine the eligi- 1 bility of such individual for such plan 2 year pursuant to section 1411(f). 3 ‘‘(II) SPECIFIED REENROLLED 4 INDIVIDUAL.—The term ‘specified re- 5 enrolled individual’ means an indi- 6 vidual who is reenrolled in a qualified 7 health plan and with respect to whom 8 the advance payment made under sub- 9 paragraph (A) would, without applica- 10 tion of any reduction under this sub- 11 paragraph, reduce the premium pay- 12 able for a qualified health plan that 13 provides coverage to such an indi- 14 vidual to $0.’’. 15 (h) PROHIBITING COVERAGE OF GENDER TRANSI- 16 TION PROCEDURES AS AN ESSENTIAL HEALTH BENEFIT 17 UNDER PLANS OFFERED BY EXCHANGES.— 18 (1) IN GENERAL.—Section 1302(b)(2) of the 19 Patient Protection and Affordable Care Act (42 20 U.S.C. 18022(b)(2)) is amended by adding at the 21 end the following new subparagraph: 22 ‘‘(C) GENDER TRANSITION PROCE- 23 DURES.—For plan years beginning on or after 24 January 1, 2027, the essential health benefits 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00401 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 402 •HR 1 RH defined pursuant to paragraph (1) may not in- 1 clude items and services furnished for a gender 2 transition procedure.’’. 3 (2) GENDER TRANSITION PROCEDURE DE- 4 FINED.—Section 1304 of the Patient Protection and 5 Affordable Care Act (42 U.S.C. 18024) is amended 6 by adding at the end the following new subsection: 7 ‘‘(f) GENDER TRANSITION PROCEDURE.— 8 ‘‘(1) IN GENERAL.—In this title, except as pro- 9 vided in paragraph (2), the term ‘gender transition 10 procedure’ means, with respect to an individual, any 11 of the following when performed for the purpose of 12 intentionally changing the body of such individual 13 (including by disrupting the body’s development, in- 14 hibiting its natural functions, or modifying its ap- 15 pearance) to no longer correspond to the individual’s 16 sex: 17 ‘‘(A) Performing any surgery, including— 18 ‘‘(i) castration; 19 ‘‘(ii) sterilization; 20 ‘‘(iii) orchiectomy; 21 ‘‘(iv) scrotoplasty; 22 ‘‘(v) vasectomy; 23 ‘‘(vi) tubal ligation; 24 ‘‘(vii) hysterectomy; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00402 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 403 •HR 1 RH ‘‘(viii) oophorectomy; 1 ‘‘(ix) ovariectomy; 2 ‘‘(x) metoidioplasty; 3 ‘‘(xi) clitoroplasty; 4 ‘‘(xii) reconstruction of the fixed part 5 of the urethra with or without a 6 metoidioplasty or a phalloplasty; 7 ‘‘(xiii) penectomy; 8 ‘‘(xiv) phalloplasty; 9 ‘‘(xv) vaginoplasty; 10 ‘‘(xvi) vaginectomy; 11 ‘‘(xvii) vulvoplasty; 12 ‘‘(xviii) reduction thyrochondroplasty; 13 ‘‘(xix) chondrolaryngoplasty; 14 ‘‘(xx) mastectomy; and 15 ‘‘(xxi) any plastic, cosmetic, or aes- 16 thetic surgery that feminizes or 17 masculinizes the facial or other body fea- 18 tures of an individual. 19 ‘‘(B) Any placement of chest implants to 20 create feminine breasts or any placement of 21 erection or testicular prosetheses. 22 ‘‘(C) Any placement of fat or artificial im- 23 plants in the gluteal region. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00403 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 404 •HR 1 RH ‘‘(D) Administering, prescribing, or dis- 1 pensing to an individual medications, includ- 2 ing— 3 ‘‘(i) gonadotropin-releasing hormone 4 (GnRH) analogues or other puberty-block- 5 ing drugs to stop or delay normal puberty; 6 and 7 ‘‘(ii) testosterone, estrogen, or other 8 androgens to an individual at doses that 9 are supraphysiologic than would normally 10 be produced endogenously in a healthy in- 11 dividual of the same age and sex. 12 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 13 apply to the following: 14 ‘‘(A) Puberty suppression or blocking pre- 15 scription drugs for the purpose of normalizing 16 puberty for an individual experiencing pre- 17 cocious puberty. 18 ‘‘(B) Medically necessary procedures or 19 treatments to correct for— 20 ‘‘(i) a medically verifiable disorder of 21 sex development, including— 22 ‘‘(I) 46,XX chromosomes with 23 virilization; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00404 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 405 •HR 1 RH ‘‘(II) 46,XY chromosomes with 1 undervirilization; and 2 ‘‘(III) both ovarian and testicular 3 tissue; 4 ‘‘(ii) sex chromosome structure, sex 5 steroid hormone production, or sex hor- 6 mone action, if determined to be abnormal 7 by a physician through genetic or bio- 8 chemical testing; 9 ‘‘(iii) infection, disease, injury, or dis- 10 order caused or exacerbated by a previous 11 procedure described in paragraph (1), or a 12 physical disorder, physical injury, or phys- 13 ical illness that would, as certified by a 14 physician, place the individual in imminent 15 danger of death or impairment of a major 16 bodily function unless the procedure is per- 17 formed, not including procedures per- 18 formed for the alleviation of mental dis- 19 tress; or 20 ‘‘(iv) procedures to restore or recon- 21 struct the body of the individual in order 22 to correspond to the individual’s sex after 23 one or more previous procedures described 24 in paragraph (1), which may include the 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00405 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 406 •HR 1 RH removal of a pseudo phallus or breast aug- 1 mentation. 2 ‘‘(3) SEX.—For purposes of this subsection, the 3 term ‘sex’ means either male or female, as bio- 4 logically determined and defined by subparagraph 5 (A) and subparagraph (B). 6 ‘‘(A) FEMALE.—The term ‘female’ means 7 an individual who naturally has, had, will have, 8 or would have, but for a developmental or ge- 9 netic anomaly or historical accident, the repro- 10 ductive system that at some point produces, 11 transports, and utilizes eggs for fertilization. 12 ‘‘(B) MALE.—The term ‘male’ means an 13 individual who naturally has, had, will have, or 14 would have, but for a developmental or genetic 15 anomaly or historical accident, the reproductive 16 system that at some point produces, transports, 17 and utilizes sperm for fertilization.’’. 18 (i) CLARIFYING LAWFUL PRESENCE FOR PURPOSES 19 OF THE EXCHANGES.— 20 (1) IN GENERAL.—Section 1312(f) of the Pa- 21 tient Protection and Affordable Care Act (42 U.S.C. 22 18032(f)) is amended by adding at the end the fol- 23 lowing new paragraph: 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00406 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 407 •HR 1 RH ‘‘(4) CLARIFICATION OF LAWFUL PRESENCE.— 1 In this title, the term ‘alien lawfully present in the 2 United States’ does not include an alien granted de- 3 ferred action under the Deferred Action for Child- 4 hood Arrivals process pursuant to the memorandum 5 of the Department of Homeland Security entitled 6 ‘Exercising Prosecutorial Discretion with Respect to 7 Individuals Who Came to the United States as Chil- 8 dren’ issued on June 15, 2012.’’. 9 (2) COST-SHARING REDUCTIONS.—Section 10 1402(e)(2) of the Patient Protection and Affordable 11 Care Act (42 U.S.C. 18071(e)(2)) is amended by 12 adding at the end the following new sentence: ‘‘For 13 purposes of this section, an individual shall not be 14 treated as lawfully present if the individual is an 15 alien granted deferred action under the Deferred Ac- 16 tion for Childhood Arrivals process pursuant to the 17 memorandum of the Department of Homeland Secu- 18 rity entitled ‘Exercising Prosecutorial Discretion 19 with Respect to Individuals Who Came to the United 20 States as Children’ issued on June 15, 2012.’’. 21 (3) PAYMENT PROHIBITION.—Section 1412(d) 22 of the Patient Protection and Affordable Care Act 23 (42 U.S.C. 18082(d)) is amended by adding at the 24 end the following new sentence: ‘‘For purposes of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00407 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 408 •HR 1 RH the previous sentence, an individual shall not be 1 treated as lawfully present if the individual is an 2 alien granted deferred action under the Deferred Ac- 3 tion for Childhood Arrivals process pursuant to the 4 memorandum of the Department of Homeland Secu- 5 rity entitled ‘Exercising Prosecutorial Discretion 6 with Respect to Individuals Who Came to the United 7 States as Children’ issued on June 15, 2012.’’. 8 (4) EFFECTIVE DATE.—The amendments made 9 by this section shall apply with respect to plan years 10 beginning on or after January 1, 2026. 11 (j) ENSURING APPROPRIATE APPLICATION OF GUAR- 12 ANTEED ISSUE REQUIREMENTS IN CASE OF NON- 13 PAYMENT OF PAST PREMIUMS.— 14 (1) IN GENERAL.—Section 2702 of the Public 15 Health Service Act (42 U.S.C. 300gg–1) is amended 16 by adding at the end the following new subsection: 17 ‘‘(e) NONPAYMENT OF PAST PREMIUMS.— 18 ‘‘(1) IN GENERAL.—A health insurance issuer 19 offering individual health insurance coverage may, to 20 the extent allowed under State law, deny such cov- 21 erage in the case of an individual who owes any 22 amount for premiums for individual health insurance 23 coverage offered by such issuer (or by a health in- 24 surance issuer in the same controlled group (as de- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00408 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 409 •HR 1 RH fined in paragraph (3)) as such issuer) in which 1 such individual was previously enrolled. 2 ‘‘(2) ATTRIBUTION OF INITIAL PREMIUM PAY- 3 MENT TO OWED AMOUNT.—A health insurance 4 issuer offering individual health insurance coverage 5 may, in the case of an individual described in para- 6 graph (1) and to the extent allowed under State law, 7 attribute the initial premium payment for such cov- 8 erage applicable to such individual to the amount 9 owed by such individual for premiums for individual 10 health insurance coverage offered by such issuer (or 11 by a health insurance issuer in the same controlled 12 group as such issuer) in which such individual was 13 previously enrolled. 14 ‘‘(3) CONTROLLED GROUP DEFINED.—For pur- 15 poses of this subsection, the term ‘controlled group’ 16 means a group of of two or more persons that is 17 treated as a single employer under section 52(a), 18 52(b), 414(m), or 414(o) of the Internal Revenue 19 Code of 1986.’’. 20 (2) EFFECTIVE DATE.—The amendment made 21 by paragraph (1) shall apply with respect to plan 22 years beginning on or after January 1, 2026. 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00409 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 410 •HR 1 RH PART 3—IMPROVING AMERICANS’ ACCESS TO 1 CARE 2 SEC. 44301. EXPANDING AND CLARIFYING THE EXCLUSION 3 FOR ORPHAN DRUGS UNDER THE DRUG 4 PRICE NEGOTIATION PROGRAM. 5 (a) IN GENERAL.—Section 1192(e) of the Social Se- 6 curity Act (42 U.S.C. 1320f–1(e)) is amended— 7 (1) in paragraph (1), by adding at the end the 8 following new subparagraph: 9 ‘‘(C) TREATMENT OF FORMER ORPHAN 10 DRUGS.—In calculating the amount of time that 11 has elapsed with respect to the approval of a 12 drug or licensure of a biological product under 13 subparagraph (A)(ii) and subparagraph (B)(ii), 14 respectively, the Secretary shall not take into 15 account any period during which such drug or 16 product was a drug described in paragraph 17 (3)(A).’’; and 18 (2) in paragraph (3)(A)— 19 (A) by striking ‘‘only one rare disease or 20 condition’’ and inserting ‘‘one or more rare dis- 21 eases or conditions’’; and 22 (B) by striking ‘‘such disease or condition’’ 23 and inserting ‘‘one or more rare diseases or 24 conditions (as such term is defined in section 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00410 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 411 •HR 1 RH 526(a)(2) of the Federal Food, Drug, and Cos- 1 metic Act)’’. 2 (b) APPLICATION.—The amendments made by sub- 3 section (a) shall apply with respect to initial price applica- 4 bility years (as defined in section 1191(b) of the Social 5 Security Act (42 U.S.C. 1320f(b))) beginning on or after 6 January 1, 2028. 7 SEC. 44302. STREAMLINED ENROLLMENT PROCESS FOR EL- 8 IGIBLE OUT-OF-STATE PROVIDERS UNDER 9 MEDICAID AND CHIP. 10 (a) IN GENERAL.—Section 1902(kk) of the Social Se- 11 curity Act (42 U.S.C. 1396a(kk)) is amended by adding 12 at the end the following new paragraph: 13 ‘‘(10) STREAMLINED ENROLLMENT PROCESS 14 FOR ELIGIBLE OUT-OF-STATE PROVIDERS.— 15 ‘‘(A) IN GENERAL.—The State— 16 ‘‘(i) adopts and implements a process 17 to allow an eligible out-of-State provider to 18 enroll under the State plan (or a waiver of 19 such plan) to furnish items and services to, 20 or order, prescribe, refer, or certify eligi- 21 bility for items and services for, qualifying 22 individuals without the imposition of 23 screening or enrollment requirements by 24 such State that exceed the minimum nec- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00411 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 412 •HR 1 RH essary for such State to provide payment 1 to an eligible out-of-State provider under 2 such State plan (or a waiver of such plan), 3 such as the provider’s name and National 4 Provider Identifier (and such other infor- 5 mation specified by the Secretary); and 6 ‘‘(ii) provides that an eligible out-of- 7 State provider that enrolls as a partici- 8 pating provider in the State plan (or a 9 waiver of such plan) through such process 10 shall be so enrolled for a 5-year period, un- 11 less the provider is terminated or excluded 12 from participation during such period. 13 ‘‘(B) DEFINITIONS.—In this paragraph: 14 ‘‘(i) ELIGIBLE OUT-OF-STATE PRO- 15 VIDER.—The term ‘eligible out-of-State 16 provider’ means, with respect to a State, a 17 provider— 18 ‘‘(I) that is located in any other 19 State; 20 ‘‘(II) that— 21 ‘‘(aa) was determined by the 22 Secretary to have a limited risk 23 of fraud, waste, and abuse for 24 purposes of determining the level 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00412 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 413 •HR 1 RH of screening to be conducted 1 under section 1866(j)(2), has 2 been so screened under such sec- 3 tion 1866(j)(2), and is enrolled in 4 the Medicare program under title 5 XVIII; or 6 ‘‘(bb) was determined by the 7 State agency administering or su- 8 pervising the administration of 9 the State plan (or a waiver of 10 such plan) of such other State to 11 have a limited risk of fraud, 12 waste, and abuse for purposes of 13 determining the level of screening 14 to be conducted under paragraph 15 (1) of this subsection, has been 16 so screened under such para- 17 graph (1), and is enrolled under 18 such State plan (or a waiver of 19 such plan); and 20 ‘‘(III) that has not been— 21 ‘‘(aa) excluded from partici- 22 pation in any Federal health care 23 program pursuant to section 24 1128 or 1128A; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00413 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 414 •HR 1 RH ‘‘(bb) excluded from partici- 1 pation in the State plan (or a 2 waiver of such plan) pursuant to 3 part 1002 of title 42, Code of 4 Federal Regulations (or any suc- 5 cessor regulation), or State law; 6 or 7 ‘‘(cc) terminated from par- 8 ticipating in a Federal health 9 care program or the State plan 10 (or a waiver of such plan) for a 11 reason described in paragraph 12 (8)(A). 13 ‘‘(ii) QUALIFYING INDIVIDUAL.—The 14 term ‘qualifying individual’ means an indi- 15 vidual under 21 years of age who is en- 16 rolled under the State plan (or waiver of 17 such plan). 18 ‘‘(iii) STATE.—The term ‘State’ 19 means 1 of the 50 States or the District 20 of Columbia.’’. 21 (b) CONFORMING AMENDMENTS.— 22 (1) Section 1902(a)(77) of the Social Security 23 Act (42 U.S.C. 1396a(a)(77)) is amended by insert- 24 ing ‘‘enrollment,’’ after ‘‘screening,’’. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00414 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 415 •HR 1 RH (2) The subsection heading for section 1 1902(kk) of such Act (42 U.S.C. 1396a(kk)) is 2 amended by inserting ‘‘ENROLLMENT,’’ after 3 ‘‘SCREENING,’’. 4 (3) Section 2107(e)(1)(G) of such Act (42 5 U.S.C. 1397gg(e)(1)(G)) is amended by inserting 6 ‘‘enrollment,’’ after ‘‘screening,’’. 7 (c) EFFECTIVE DATE.—The amendments made by 8 this section shall apply beginning on the date that is 4 9 years after the date of enactment of this Act. 10 SEC. 44303. DELAYING DSH REDUCTIONS. 11 (a) IN GENERAL.—Section 1923(f) of the Social Se- 12 curity Act (42 U.S.C. 1396r–4(f)) is amended— 13 (1) in paragraph (7)(A)— 14 (A) in clause (i)— 15 (i) in the matter preceding subclause 16 (I), by striking ‘‘2026 through 2028’’ and 17 inserting ‘‘2029 through 2031’’; and 18 (ii) in subclause (II), by striking ‘‘or 19 period’’; and 20 (B) in clause (ii), by striking ‘‘2026 21 through 2028’’ and inserting ‘‘2029 through 22 2031’’; and 23 (2) in paragraph (8), by striking ‘‘2027’’ and 24 inserting ‘‘2031’’. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00415 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 416 •HR 1 RH (b) TENNESSEE DSH ALLOTMENT.—Section 1 1923(f)(6)(A)(vi) of the Social Security Act (42 U.S.C. 2 1396r–4(f)(6)(A)(vi)) is amended— 3 (1) in the header, by striking ‘‘2025’’ and insert- 4 ing ‘‘2028’’; and 5 (2) by striking ‘‘fiscal year 2025’’ and inserting 6 ‘‘fiscal year 2028’’. 7 SEC. 44304. MODIFYING UPDATE TO THE CONVERSION FAC- 8 TOR UNDER THE PHYSICIAN FEE SCHEDULE 9 UNDER THE MEDICARE PROGRAM. 10 Section 1848(d) of the Social Security Act (42 U.S.C. 11 1395w–4(d)) is amended— 12 (1) in paragraph (1)— 13 (A) in subparagraph (A)— 14 (i) in the first sentence, by striking 15 ‘‘and ending with 2025’’; and 16 (ii) by striking the second sentence; 17 and 18 (B) in subparagraph (D), by striking ‘‘(or, 19 beginning with 2026, applicable conversion fac- 20 tor)’’; and 21 (2) by amending paragraph (20) to read as fol- 22 lows: 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00416 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 417 •HR 1 RH ‘‘(20) UPDATE FOR 2026 AND SUBSEQUENT 1 YEARS.—The update to the single conversion factor 2 established in paragraph (1)(A)— 3 ‘‘(A) for 2026 is 75 percent of the Sec- 4 retary’s estimate of the percentage increase in 5 the MEI (as defined in section 1842(i)(3)) for 6 the year; and 7 ‘‘(B) for 2027 and each subsequent year is 8 10 percent of the Secretary’s estimate of the 9 percentage increase in the MEI for the year.’’. 10 SEC. 44305. MODERNIZING AND ENSURING PBM ACCOUNT- 11 ABILITY. 12 (a) IN GENERAL.— 13 (1) PRESCRIPTION DRUG PLANS.—Section 14 1860D–12 of the Social Security Act (42 U.S.C. 15 1395w–112) is amended by adding at the end the 16 following new subsection: 17 ‘‘(h) REQUIREMENTS RELATING TO PHARMACY BEN- 18 EFIT MANAGERS.—For plan years beginning on or after 19 January 1, 2028: 20 ‘‘(1) AGREEMENTS WITH PHARMACY BENEFIT 21 MANAGERS.—Each contract entered into with a 22 PDP sponsor under this part with respect to a pre- 23 scription drug plan offered by such sponsor shall 24 provide that any pharmacy benefit manager acting 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00417 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 418 •HR 1 RH on behalf of such sponsor has a written agreement 1 with the PDP sponsor under which the pharmacy 2 benefit manager, and any affiliates of such phar- 3 macy benefit manager, as applicable, agree to meet 4 the following requirements: 5 ‘‘(A) NO INCOME OTHER THAN BONA FIDE 6 SERVICE FEES.— 7 ‘‘(i) IN GENERAL.—The pharmacy 8 benefit manager and any affiliate of such 9 pharmacy benefit manager shall not derive 10 any remuneration with respect to any serv- 11 ices provided on behalf of any entity or in- 12 dividual, in connection with the utilization 13 of covered part D drugs, from any such en- 14 tity or individual other than bona fide serv- 15 ice fees, subject to clauses (ii) and (iii). 16 ‘‘(ii) INCENTIVE PAYMENTS.—For the 17 purposes of this subsection, an incentive 18 payment (as determined by the Secretary) 19 paid by a PDP sponsor to a pharmacy 20 benefit manager (or an affiliate of such 21 pharmacy benefit manager) that is per- 22 forming services on behalf of such sponsor 23 shall be deemed a ‘bona fide service fee’ 24 (even if such payment does not otherwise 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00418 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 419 •HR 1 RH meet the definition of such term under 1 paragraph (7)(B)) if such payment is a 2 flat dollar amount, is consistent with fair 3 market value (as specified by the Sec- 4 retary), is related to services actually per- 5 formed by the pharmacy benefit manager 6 or affiliate of such pharmacy benefit man- 7 ager, on behalf of the PDP sponsor mak- 8 ing such payment, in connection with the 9 utilization of covered part D drugs, and 10 meets additional requirements, if any, as 11 determined appropriate by the Secretary. 12 ‘‘(iii) CLARIFICATION ON REBATES 13 AND DISCOUNTS USED TO LOWER COSTS 14 FOR COVERED PART D DRUGS.—Rebates, 15 discounts, and other price concessions re- 16 ceived by a pharmacy benefit manager or 17 an affiliate of a pharmacy benefit manager 18 from manufacturers, even if such price 19 concessions are calculated as a percentage 20 of a drug’s price, shall not be considered a 21 violation of the requirements of clause (i) 22 if they are fully passed through to a PDP 23 sponsor and are compliant with all regu- 24 latory and subregulatory requirements re- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00419 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 420 •HR 1 RH lated to direct and indirect remuneration 1 for manufacturer rebates under this part, 2 including in cases where a PDP sponsor is 3 acting as a pharmacy benefit manager on 4 behalf of a prescription drug plan offered 5 by such PDP sponsor. 6 ‘‘(iv) EVALUATION OF REMUNERATION 7 ARRANGEMENTS.—Components of subsets 8 of remuneration arrangements (such as 9 fees or other forms of compensation paid 10 to or retained by the pharmacy benefit 11 manager or affiliate of such pharmacy ben- 12 efit manager), as determined appropriate 13 by the Secretary, between pharmacy ben- 14 efit managers or affiliates of such phar- 15 macy benefit managers, as applicable, and 16 other entities involved in the dispensing or 17 utilization of covered part D drugs (includ- 18 ing PDP sponsors, manufacturers, phar- 19 macies, and other entities as determined 20 appropriate by the Secretary) shall be sub- 21 ject to review by the Secretary, in con- 22 sultation with the Office of the Inspector 23 General of the Department of Health and 24 Human Services, as determined appro- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00420 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 421 •HR 1 RH priate by the Secretary. The Secretary, in 1 consultation with the Office of the Inspec- 2 tor General, shall review whether remu- 3 neration under such arrangements is con- 4 sistent with fair market value (as specified 5 by the Secretary) through reviews and as- 6 sessments of such remuneration, as deter- 7 mined appropriate. 8 ‘‘(v) DISGORGEMENT.—The pharmacy 9 benefit manager shall disgorge any remu- 10 neration paid to such pharmacy benefit 11 manager or an affiliate of such pharmacy 12 benefit manager in violation of this sub- 13 paragraph to the PDP sponsor. 14 ‘‘(vi) ADDITIONAL REQUIREMENTS.— 15 The pharmacy benefit manager shall— 16 ‘‘(I) enter into a written agree- 17 ment with any affiliate of such phar- 18 macy benefit manager, under which 19 the affiliate shall identify and disgorge 20 any remuneration described in clause 21 (v) to the pharmacy benefit manager; 22 and 23 ‘‘(II) attest, subject to any re- 24 quirements determined appropriate by 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00421 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 422 •HR 1 RH the Secretary, that the pharmacy ben- 1 efit manager has entered into a writ- 2 ten agreement described in subclause 3 (I) with any relevant affiliate of the 4 pharmacy benefit manager. 5 ‘‘(B) TRANSPARENCY REGARDING GUARAN- 6 TEES AND COST PERFORMANCE EVALUA- 7 TIONS.—The pharmacy benefit manager shall— 8 ‘‘(i) define, interpret, and apply, in a 9 fully transparent and consistent manner 10 for purposes of calculating or otherwise 11 evaluating pharmacy benefit manager per- 12 formance against pricing guarantees or 13 similar cost performance measurements re- 14 lated to rebates, discounts, price conces- 15 sions, or net costs, terms such as— 16 ‘‘(I) ‘generic drug’, in a manner 17 consistent with the definition of the 18 term under section 423.4 of title 42, 19 Code of Federal Regulations, or a suc- 20 cessor regulation; 21 ‘‘(II) ‘brand name drug’, in a 22 manner consistent with the definition 23 of the term under section 423.4 of 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00422 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 423 •HR 1 RH title 42, Code of Federal Regulations, 1 or a successor regulation; 2 ‘‘(III) ‘specialty drug’; 3 ‘‘(IV) ‘rebate’; and 4 ‘‘(V) ‘discount’; 5 ‘‘(ii) identify any drugs, claims, or 6 price concessions excluded from any pric- 7 ing guarantee or other cost performance 8 measure in a clear and consistent manner; 9 and 10 ‘‘(iii) where a pricing guarantee or 11 other cost performance measure is based 12 on a pricing benchmark other than the 13 wholesale acquisition cost (as defined in 14 section 1847A(c)(6)(B)) of a drug, cal- 15 culate and provide a wholesale acquisition 16 cost-based equivalent to the pricing guar- 17 antee or other cost performance measure. 18 ‘‘(C) PROVISION OF INFORMATION.— 19 ‘‘(i) IN GENERAL.—Not later than 20 July 1 of each year, beginning in 2028, the 21 pharmacy benefit manager shall submit to 22 the PDP sponsor, and to the Secretary, a 23 report, in accordance with this subpara- 24 graph, and shall make such report avail- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00423 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 424 •HR 1 RH able to such sponsor at no cost to such 1 sponsor in a format specified by the Sec- 2 retary under paragraph (5). Each such re- 3 port shall include, with respect to such 4 PDP sponsor and each plan offered by 5 such sponsor, the following information 6 with respect to the previous plan year: 7 ‘‘(I) A list of all drugs covered by 8 the plan that were dispensed includ- 9 ing, with respect to each such drug— 10 ‘‘(aa) the brand name, ge- 11 neric or non-proprietary name, 12 and National Drug Code; 13 ‘‘(bb) the number of plan 14 enrollees for whom the drug was 15 dispensed, the total number of 16 prescription claims for the drug 17 (including original prescriptions 18 and refills, counted as separate 19 claims), and the total number of 20 dosage units of the drug dis- 21 pensed; 22 ‘‘(cc) the number of pre- 23 scription claims described in item 24 (bb) by each type of dispensing 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00424 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 425 •HR 1 RH channel through which the drug 1 was dispensed, including retail, 2 mail order, specialty pharmacy, 3 long term care pharmacy, home 4 infusion pharmacy, or other types 5 of pharmacies or providers; 6 ‘‘(dd) the average wholesale 7 acquisition cost, listed as cost per 8 day’s supply, cost per dosage 9 unit, and cost per typical course 10 of treatment (as applicable); 11 ‘‘(ee) the average wholesale 12 price for the drug, listed as price 13 per day’s supply, price per dos- 14 age unit, and price per typical 15 course of treatment (as applica- 16 ble); 17 ‘‘(ff) the total out-of-pocket 18 spending by plan enrollees on 19 such drug after application of 20 any benefits under the plan, in- 21 cluding plan enrollee spending 22 through copayments, coinsurance, 23 and deductibles; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00425 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 426 •HR 1 RH ‘‘(gg) total rebates paid by 1 the manufacturer on the drug as 2 reported under the Detailed DIR 3 Report (or any successor report) 4 submitted by such sponsor to the 5 Centers for Medicare & Medicaid 6 Services; 7 ‘‘(hh) all other direct or in- 8 direct remuneration on the drug 9 as reported under the Detailed 10 DIR Report (or any successor re- 11 port) submitted by such sponsor 12 to the Centers for Medicare & 13 Medicaid Services; 14 ‘‘(ii) the average pharmacy 15 reimbursement amount paid by 16 the plan for the drug in the ag- 17 gregate and disaggregated by dis- 18 pensing channel identified in item 19 (cc); 20 ‘‘(jj) the average National 21 Average Drug Acquisition Cost 22 (NADAC); and 23 ‘‘(kk) total manufacturer-de- 24 rived revenue, inclusive of bona 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00426 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 427 •HR 1 RH fide service fees, attributable to 1 the drug and retained by the 2 pharmacy benefit manager and 3 any affiliate of such pharmacy 4 benefit manager. 5 ‘‘(II) In the case of a pharmacy 6 benefit manager that has an affiliate 7 that is a retail, mail order, or spe- 8 cialty pharmacy, with respect to drugs 9 covered by such plan that were dis- 10 pensed, the following information: 11 ‘‘(aa) The percentage of 12 total prescriptions that were dis- 13 pensed by pharmacies that are an 14 affiliate of the pharmacy benefit 15 manager for each drug. 16 ‘‘(bb) The interquartile 17 range of the total combined costs 18 paid by the plan and plan enroll- 19 ees, per dosage unit, per course 20 of treatment, per 30-day supply, 21 and per 90-day supply for each 22 drug dispensed by pharmacies 23 that are not an affiliate of the 24 pharmacy benefit manager and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00427 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 428 •HR 1 RH that are included in the phar- 1 macy network of such plan. 2 ‘‘(cc) The interquartile 3 range of the total combined costs 4 paid by the plan and plan enroll- 5 ees, per dosage unit, per course 6 of treatment, per 30-day supply, 7 and per 90-day supply for each 8 drug dispensed by pharmacies 9 that are an affiliate of the phar- 10 macy benefit manager and that 11 are included in the pharmacy 12 network of such plan. 13 ‘‘(dd) The lowest total com- 14 bined cost paid by the plan and 15 plan enrollees, per dosage unit, 16 per course of treatment, per 30- 17 day supply, and per 90-day sup- 18 ply, for each drug that is avail- 19 able from any pharmacy included 20 in the pharmacy network of such 21 plan. 22 ‘‘(ee) The difference between 23 the average acquisition cost of 24 the affiliate, such as a pharmacy 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00428 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 429 •HR 1 RH or other entity that acquires pre- 1 scription drugs, that initially ac- 2 quires the drug and the amount 3 reported under subclause (I)(jj) 4 for each drug. 5 ‘‘(ff) A list inclusive of the 6 brand name, generic or non-pro- 7 prietary name, and National 8 Drug Code of covered part D 9 drugs subject to an agreement 10 with a covered entity under sec- 11 tion 340B of the Public Health 12 Service Act for which the phar- 13 macy benefit manager or an affil- 14 iate of the pharmacy benefit 15 manager had a contract or other 16 arrangement with such a covered 17 entity in the service area of such 18 plan. 19 ‘‘(III) Where a drug approved 20 under section 505(c) of the Federal 21 Food, Drug, and Cosmetic Act (re- 22 ferred to in this subclause as the ‘list- 23 ed drug’) is covered by the plan, the 24 following information: 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00429 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 430 •HR 1 RH ‘‘(aa) A list of currently 1 marketed generic drugs approved 2 under section 505(j) of the Fed- 3 eral Food, Drug, and Cosmetic 4 Act pursuant to an application 5 that references such listed drug 6 that are not covered by the plan, 7 are covered on the same for- 8 mulary tier or a formulary tier 9 typically associated with higher 10 cost-sharing than the listed drug, 11 or are subject to utilization man- 12 agement that the listed drug is 13 not subject to. 14 ‘‘(bb) The estimated average 15 beneficiary cost-sharing under 16 the plan for a 30-day supply of 17 the listed drug. 18 ‘‘(cc) Where a generic drug 19 listed under item (aa) is on a for- 20 mulary tier typically associated 21 with higher cost-sharing than the 22 listed drug, the estimated aver- 23 age cost-sharing that a bene- 24 ficiary would have paid for a 30- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00430 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 431 •HR 1 RH day supply of each of the generic 1 drugs described in item (aa), had 2 the plan provided coverage for 3 such drugs on the same for- 4 mulary tier as the listed drug. 5 ‘‘(dd) A written justification 6 for providing more favorable cov- 7 erage of the listed drug than the 8 generic drugs described in item 9 (aa). 10 ‘‘(ee) The number of cur- 11 rently marketed generic drugs 12 approved under section 505(j) of 13 the Federal Food, Drug, and 14 Cosmetic Act pursuant to an ap- 15 plication that references such 16 listed drug. 17 ‘‘(IV) Where a reference product 18 (as defined in section 351(i) of the 19 Public Health Service Act) is covered 20 by the plan, the following information: 21 ‘‘(aa) A list of currently 22 marketed biosimilar biological 23 products licensed under section 24 351(k) of the Public Health 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00431 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 432 •HR 1 RH Service Act pursuant to an appli- 1 cation that refers to such ref- 2 erence product that are not cov- 3 ered by the plan, are covered on 4 the same formulary tier or a for- 5 mulary tier typically associated 6 with higher cost-sharing than the 7 reference product, or are subject 8 to utilization management that 9 the reference product is not sub- 10 ject to. 11 ‘‘(bb) The estimated average 12 beneficiary cost-sharing under 13 the plan for a 30-day supply of 14 the reference product. 15 ‘‘(cc) Where a biosimilar bi- 16 ological product listed under item 17 (aa) is on a formulary tier typi- 18 cally associated with higher cost- 19 sharing than the reference prod- 20 uct, the estimated average cost- 21 sharing that a beneficiary would 22 have paid for a 30-day supply of 23 each of the biosimilar biological 24 products described in item (aa), 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00432 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 433 •HR 1 RH had the plan provided coverage 1 for such products on the same 2 formulary tier as the reference 3 product. 4 ‘‘(dd) A written justification 5 for providing more favorable cov- 6 erage of the reference product 7 than the biosimilar biological 8 product described in item (aa). 9 ‘‘(ee) The number of cur- 10 rently marketed biosimilar bio- 11 logical products licensed under 12 section 351(k) of the Public 13 Health Service Act, pursuant to 14 an application that refers to such 15 reference product. 16 ‘‘(V) Total gross spending on 17 covered part D drugs by the plan, not 18 net of rebates, fees, discounts, or 19 other direct or indirect remuneration. 20 ‘‘(VI) The total amount retained 21 by the pharmacy benefit manager or 22 an affiliate of such pharmacy benefit 23 manager in revenue related to utiliza- 24 tion of covered part D drugs under 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00433 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 434 •HR 1 RH that plan, inclusive of bona fide serv- 1 ice fees. 2 ‘‘(VII) The total spending on cov- 3 ered part D drugs net of rebates, fees, 4 discounts, or other direct and indirect 5 remuneration by the plan. 6 ‘‘(VIII) An explanation of any 7 benefit design parameters under such 8 plan that encourage plan enrollees to 9 fill prescriptions at pharmacies that 10 are an affiliate of such pharmacy ben- 11 efit manager, such as mail and spe- 12 cialty home delivery programs, and re- 13 tail and mail auto-refill programs. 14 ‘‘(IX) The following information: 15 ‘‘(aa) A list of all brokers, 16 consultants, advisors, and audi- 17 tors that receive compensation 18 from the pharmacy benefit man- 19 ager or an affiliate of such phar- 20 macy benefit manager for refer- 21 rals, consulting, auditing, or 22 other services offered to PDP 23 sponsors related to pharmacy 24 benefit management services. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00434 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 435 •HR 1 RH ‘‘(bb) The amount of com- 1 pensation provided by such phar- 2 macy benefit manager or affiliate 3 to each such broker, consultant, 4 advisor, and auditor. 5 ‘‘(cc) The methodology for 6 calculating the amount of com- 7 pensation provided by such phar- 8 macy benefit manager or affil- 9 iate, for each such broker, con- 10 sultant, advisor, and auditor. 11 ‘‘(X) A list of all affiliates of the 12 pharmacy benefit manager. 13 ‘‘(XI) A summary document sub- 14 mitted in a standardized template de- 15 veloped by the Secretary that includes 16 such information described in sub- 17 clauses (I) through (X). 18 ‘‘(ii) WRITTEN EXPLANATION OF CON- 19 TRACTS OR AGREEMENTS WITH DRUG 20 MANUFACTURERS.— 21 ‘‘(I) IN GENERAL.—The phar- 22 macy benefit manager shall, not later 23 than 30 days after the finalization of 24 any contract or agreement between 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00435 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 436 •HR 1 RH such pharmacy benefit manager or an 1 affiliate of such pharmacy benefit 2 manager and a drug manufacturer (or 3 subsidiary, agent, or entity affiliated 4 with such drug manufacturer) that 5 makes rebates, discounts, payments, 6 or other financial incentives related to 7 one or more covered part D drugs or 8 other prescription drugs, as applica- 9 ble, of the manufacturer directly or 10 indirectly contingent upon coverage, 11 formulary placement, or utilization 12 management conditions on any other 13 covered part D drugs or other pre- 14 scription drugs, as applicable, submit 15 to the PDP sponsor a written expla- 16 nation of such contract or agreement. 17 ‘‘(II) REQUIREMENTS.—A writ- 18 ten explanation under subclause (I) 19 shall— 20 ‘‘(aa) include the manufac- 21 turer subject to the contract or 22 agreement, all covered part D 23 drugs and other prescription 24 drugs, as applicable, subject to 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00436 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 437 •HR 1 RH the contract or agreement and 1 the manufacturers of such drugs, 2 and a high-level description of 3 the terms of such contract or 4 agreement and how such terms 5 apply to such drugs; and 6 ‘‘(bb) be certified by the 7 Chief Executive Officer, Chief Fi- 8 nancial Officer, or General Coun- 9 sel of such pharmacy benefit 10 manager, or affiliate of such 11 pharmacy benefit manager, as 12 applicable, or an individual dele- 13 gated with the authority to sign 14 on behalf of one of these officers, 15 who reports directly to the offi- 16 cer. 17 ‘‘(III) DEFINITION OF OTHER 18 PRESCRIPTION DRUGS.—For purposes 19 of this clause, the term ‘other pre- 20 scription drugs’ means prescription 21 drugs covered as supplemental bene- 22 fits under this part or prescription 23 drugs paid outside of this part. 24 ‘‘(D) AUDIT RIGHTS.— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00437 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 438 •HR 1 RH ‘‘(i) IN GENERAL.—Not less than once 1 a year, at the request of the PDP sponsor, 2 the pharmacy benefit manager shall allow 3 for an audit of the pharmacy benefit man- 4 ager to ensure compliance with all terms 5 and conditions under the written agree- 6 ment described in this paragraph and the 7 accuracy of information reported under 8 subparagraph (C). 9 ‘‘(ii) AUDITOR.—The PDP sponsor 10 shall have the right to select an auditor. 11 The pharmacy benefit manager shall not 12 impose any limitations on the selection of 13 such auditor. 14 ‘‘(iii) PROVISION OF INFORMATION.— 15 The pharmacy benefit manager shall make 16 available to such auditor all records, data, 17 contracts, and other information necessary 18 to confirm the accuracy of information 19 provided under subparagraph (C), subject 20 to reasonable restrictions on how such in- 21 formation must be reported to prevent re- 22 disclosure of such information. 23 ‘‘(iv) TIMING.—The pharmacy benefit 24 manager must provide information under 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00438 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 439 •HR 1 RH clause (iii) and other information, data, 1 and records relevant to the audit to such 2 auditor within 6 months of the initiation of 3 the audit and respond to requests for addi- 4 tional information from such auditor with- 5 in 30 days after the request for additional 6 information. 7 ‘‘(v) INFORMATION FROM AFFILI- 8 ATES.—The pharmacy benefit manager 9 shall be responsible for providing to such 10 auditor information required to be reported 11 under subparagraph (C) or under clause 12 (iii) of this subparagraph that is owned or 13 held by an affiliate of such pharmacy ben- 14 efit manager. 15 ‘‘(2) ENFORCEMENT.— 16 ‘‘(A) IN GENERAL.—Each PDP sponsor 17 shall— 18 ‘‘(i) disgorge to the Secretary any 19 amounts disgorged to the PDP sponsor by 20 a pharmacy benefit manager under para- 21 graph (1)(A)(v); 22 ‘‘(ii) require, in a written agreement 23 with any pharmacy benefit manager acting 24 on behalf of such sponsor or affiliate of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00439 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 440 •HR 1 RH such pharmacy benefit manager, that such 1 pharmacy benefit manager or affiliate re- 2 imburse the PDP sponsor for any civil 3 money penalty imposed on the PDP spon- 4 sor as a result of the failure of the phar- 5 macy benefit manager or affiliate to meet 6 the requirements of paragraph (1) that are 7 applicable to the pharmacy benefit man- 8 ager or affiliate under the agreement; and 9 ‘‘(iii) require, in a written agreement 10 with any such pharmacy benefit manager 11 acting on behalf of such sponsor or affil- 12 iate of such pharmacy benefit manager, 13 that such pharmacy benefit manager or af- 14 filiate be subject to punitive remedies for 15 breach of contract for failure to comply 16 with the requirements applicable under 17 paragraph (1). 18 ‘‘(B) REPORTING OF ALLEGED VIOLA- 19 TIONS.—The Secretary shall make available and 20 maintain a mechanism for manufacturers, PDP 21 sponsors, pharmacies, and other entities that 22 have contractual relationships with pharmacy 23 benefit managers or affiliates of such pharmacy 24 benefit managers to report, on a confidential 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00440 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 441 •HR 1 RH basis, alleged violations of paragraph (1)(A) or 1 subparagraph (C). 2 ‘‘(C) ANTI-RETALIATION AND ANTI-COER- 3 CION.—Consistent with applicable Federal or 4 State law, a PDP sponsor shall not— 5 ‘‘(i) retaliate against an individual or 6 entity for reporting an alleged violation 7 under subparagraph (B); or 8 ‘‘(ii) coerce, intimidate, threaten, or 9 interfere with the ability of an individual 10 or entity to report any such alleged viola- 11 tions. 12 ‘‘(3) CERTIFICATION OF COMPLIANCE.— 13 ‘‘(A) IN GENERAL.—Each PDP sponsor 14 shall furnish to the Secretary (at a time and in 15 a manner specified by the Secretary) an annual 16 certification of compliance with this subsection, 17 as well as such information as the Secretary de- 18 termines necessary to carry out this subsection. 19 ‘‘(B) IMPLEMENTATION.—Notwithstanding 20 any other provision of law, the Secretary may 21 implement this paragraph by program instruc- 22 tion or otherwise. 23 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in 24 this subsection shall be construed as— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00441 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 442 •HR 1 RH ‘‘(A) prohibiting flat dispensing fees or re- 1 imbursement or payment for ingredient costs 2 (including customary, industry-standard dis- 3 counts directly related to drug acquisition that 4 are retained by pharmacies or wholesalers) to 5 entities that acquire or dispense prescription 6 drugs; or 7 ‘‘(B) modifying regulatory requirements or 8 sub-regulatory program instruction or guidance 9 related to pharmacy payment, reimbursement, 10 or dispensing fees. 11 ‘‘(5) STANDARD FORMATS.— 12 ‘‘(A) IN GENERAL.—Not later than June 13 1, 2027, the Secretary shall specify standard, 14 machine-readable formats for pharmacy benefit 15 managers to submit annual reports required 16 under paragraph (1)(C)(i). 17 ‘‘(B) IMPLEMENTATION.—Notwithstanding 18 any other provision of law, the Secretary may 19 implement this paragraph by program instruc- 20 tion or otherwise. 21 ‘‘(6) CONFIDENTIALITY.— 22 ‘‘(A) IN GENERAL.—Information disclosed 23 by a pharmacy benefit manager, an affiliate of 24 a pharmacy benefit manager, a PDP sponsor, 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00442 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 443 •HR 1 RH or a pharmacy under this subsection that is not 1 otherwise publicly available or available for pur- 2 chase shall not be disclosed by the Secretary or 3 a PDP sponsor receiving the information, ex- 4 cept that the Secretary may disclose the infor- 5 mation for the following purposes: 6 ‘‘(i) As the Secretary determines nec- 7 essary to carry out this part. 8 ‘‘(ii) To permit the Comptroller Gen- 9 eral to review the information provided. 10 ‘‘(iii) To permit the Director of the 11 Congressional Budget Office to review the 12 information provided. 13 ‘‘(iv) To permit the Executive Direc- 14 tor of the Medicare Payment Advisory 15 Commission to review the information pro- 16 vided. 17 ‘‘(v) To the Attorney General for the 18 purposes of conducting oversight and en- 19 forcement under this title. 20 ‘‘(vi) To the Inspector General of the 21 Department of Health and Human Serv- 22 ices in accordance with its authorities 23 under the Inspector General Act of 1978 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00443 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 444 •HR 1 RH (section 406 of title 5, United States 1 Code), and other applicable statutes. 2 ‘‘(B) RESTRICTION ON USE OF INFORMA- 3 TION.—The Secretary, the Comptroller General, 4 the Director of the Congressional Budget Of- 5 fice, and the Executive Director of the Medicare 6 Payment Advisory Commission shall not report 7 on or disclose information disclosed pursuant to 8 subparagraph (A) to the public in a manner 9 that would identify— 10 ‘‘(i) a specific pharmacy benefit man- 11 ager, affiliate, pharmacy, manufacturer, 12 wholesaler, PDP sponsor, or plan; or 13 ‘‘(ii) contract prices, rebates, dis- 14 counts, or other remuneration for specific 15 drugs in a manner that may allow the 16 identification of specific contracting parties 17 or of such specific drugs. 18 ‘‘(7) DEFINITIONS.—For purposes of this sub- 19 section: 20 ‘‘(A) AFFILIATE.—The term ‘affiliate’ 21 means, with respect to any pharmacy benefit 22 manager or PDP sponsor, any entity that, di- 23 rectly or indirectly— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00444 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 445 •HR 1 RH ‘‘(i) owns or is owned by, controls or 1 is controlled by, or is otherwise related in 2 any ownership structure to such pharmacy 3 benefit manager or PDP sponsor; or 4 ‘‘(ii) acts as a contractor, principal, or 5 agent to such pharmacy benefit manager 6 or PDP sponsor, insofar as such con- 7 tractor, principal, or agent performs any of 8 the functions described under subpara- 9 graph (C). 10 ‘‘(B) BONA FIDE SERVICE FEE.—The term 11 ‘bona fide service fee’ means a fee that is reflec- 12 tive of the fair market value (as specified by the 13 Secretary, through notice and comment rule- 14 making) for a bona fide, itemized service actu- 15 ally performed on behalf of an entity, that the 16 entity would otherwise perform (or contract for) 17 in the absence of the service arrangement and 18 that is not passed on in whole or in part to a 19 client or customer, whether or not the entity 20 takes title to the drug. Such fee must be a flat 21 dollar amount and shall not be directly or indi- 22 rectly based on, or contingent upon— 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00445 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 446 •HR 1 RH ‘‘(i) drug price, such as wholesale ac- 1 quisition cost or drug benchmark price 2 (such as average wholesale price); 3 ‘‘(ii) the amount of discounts, rebates, 4 fees, or other direct or indirect remunera- 5 tion with respect to covered part D drugs 6 dispensed to enrollees in a prescription 7 drug plan, except as permitted pursuant to 8 paragraph (1)(A)(ii); 9 ‘‘(iii) coverage or formulary placement 10 decisions or the volume or value of any re- 11 ferrals or business generated between the 12 parties to the arrangement; or 13 ‘‘(iv) any other amounts or meth- 14 odologies prohibited by the Secretary. 15 ‘‘(C) PHARMACY BENEFIT MANAGER.—The 16 term ‘pharmacy benefit manager’ means any 17 person or entity that, either directly or through 18 an intermediary, acts as a price negotiator or 19 group purchaser on behalf of a PDP sponsor or 20 prescription drug plan, or manages the pre- 21 scription drug benefits provided by such spon- 22 sor or plan, including the processing and pay- 23 ment of claims for prescription drugs, the per- 24 formance of drug utilization review, the proc- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00446 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 447 •HR 1 RH essing of drug prior authorization requests, the 1 adjudication of appeals or grievances related to 2 the prescription drug benefit, contracting with 3 network pharmacies, controlling the cost of cov- 4 ered part D drugs, or the provision of related 5 services. Such term includes any person or enti- 6 ty that carries out one or more of the activities 7 described in the preceding sentence, irrespective 8 of whether such person or entity calls itself a 9 ‘pharmacy benefit manager’.’’. 10 (2) MA–PD PLANS.—Section 1857(f)(3) of the 11 Social Security Act (42 U.S.C. 1395w–27(f)(3)) is 12 amended by adding at the end the following new 13 subparagraph: 14 ‘‘(F) REQUIREMENTS RELATING TO PHAR- 15 MACY BENEFIT MANAGERS.—For plan years be- 16 ginning on or after January 1, 2028, section 17 1860D–12(h).’’. 18 (3) NONAPPLICATION OF PAPERWORK REDUC- 19 TION ACT.—Chapter 35 of title 44, United States 20 Code, shall not apply to the implementation of this 21 subsection. 22 (4) FUNDING.— 23 (A) SECRETARY.—In addition to amounts 24 otherwise available, there is appropriated to the 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00447 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 448 •HR 1 RH Centers for Medicare & Medicaid Services Pro- 1 gram Management Account, out of any money 2 in the Treasury not otherwise appropriated, 3 $113,000,000 for fiscal year 2025, to remain 4 available until expended, to carry out this sub- 5 section. 6 (B) OIG.—In addition to amounts other- 7 wise available, there is appropriated to the In- 8 spector General of the Department of Health 9 and Human Services, out of any money in the 10 Treasury not otherwise appropriated, 11 $20,000,000 for fiscal year 2025, to remain 12 available until expended, to carry out this sub- 13 section. 14 (b) GAO STUDY AND REPORT ON PRICE-RELATED 15 COMPENSATION ACROSS THE SUPPLY CHAIN.— 16 (1) STUDY.—The Comptroller General of the 17 United States (in this subsection referred to as the 18 ‘‘Comptroller General’’) shall conduct a study de- 19 scribing the use of compensation and payment struc- 20 tures related to a prescription drug’s price within 21 the retail prescription drug supply chain in part D 22 of title XVIII of the Social Security Act (42 U.S.C. 23 1395w–101 et seq.). Such study shall summarize in- 24 formation from Federal agencies and industry ex- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00448 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 449 •HR 1 RH perts, to the extent available, with respect to the fol- 1 lowing: 2 (A) The type, magnitude, other features 3 (such as the pricing benchmarks used), and 4 prevalence of compensation and payment struc- 5 tures related to a prescription drug’s price, 6 such as calculating fee amounts as a percentage 7 of a prescription drug’s price, between inter- 8 mediaries in the prescription drug supply chain, 9 including— 10 (i) pharmacy benefit managers; 11 (ii) PDP sponsors offering prescrip- 12 tion drug plans and Medicare Advantage 13 organizations offering MA–PD plans; 14 (iii) drug wholesalers; 15 (iv) pharmacies; 16 (v) manufacturers; 17 (vi) pharmacy services administrative 18 organizations; 19 (vii) brokers, auditors, consultants, 20 and other entities that— 21 (I) advise PDP sponsors offering 22 prescription drug plans and Medicare 23 Advantage organizations offering MA– 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00449 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 450 •HR 1 RH PD plans regarding pharmacy bene- 1 fits; or 2 (II) review PDP sponsor and 3 Medicare Advantage organization con- 4 tracts with pharmacy benefit man- 5 agers; and 6 (viii) other service providers that con- 7 tract with any of the entities described in 8 clauses (i) through (vii) that may use 9 price-related compensation and payment 10 structures, such as rebate aggregators (or 11 other entities that negotiate or process 12 price concessions on behalf of pharmacy 13 benefit managers, plan sponsors, or phar- 14 macies). 15 (B) The primary business models and com- 16 pensation structures for each category of inter- 17 mediary described in subparagraph (A). 18 (C) Variation in price-related compensation 19 structures between affiliated entities (such as 20 entities with common ownership, either full or 21 partial, and subsidiary relationships) and unaf- 22 filiated entities. 23 (D) Potential conflicts of interest among 24 contracting entities related to the use of pre- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00450 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 451 •HR 1 RH scription drug price-related compensation struc- 1 tures, such as the potential for fees or other 2 payments set as a percentage of a prescription 3 drug’s price to advantage formulary selection, 4 distribution, or purchasing of prescription drugs 5 with higher prices. 6 (E) Notable differences, if any, in the use 7 and level of price-based compensation struc- 8 tures over time and between different market 9 segments, such as under part D of title XVIII 10 of the Social Security Act (42 U.S.C. 1395w– 11 101 et seq.) and the Medicaid program under 12 title XIX of such Act (42 U.S.C. 1396 et seq.). 13 (F) The effects of drug price-related com- 14 pensation structures and alternative compensa- 15 tion structures on Federal health care programs 16 and program beneficiaries, including with re- 17 spect to cost-sharing, premiums, Federal out- 18 lays, biosimilar and generic drug adoption and 19 utilization, drug shortage risks, and the poten- 20 tial for fees set as a percentage of a drug’s 21 price to advantage the formulary selection, dis- 22 tribution, or purchasing of drugs with higher 23 prices. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00451 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 452 •HR 1 RH (G) Other issues determined to be relevant 1 and appropriate by the Comptroller General. 2 (2) REPORT.—Not later than 2 years after the 3 date of enactment of this section, the Comptroller 4 General shall submit to Congress a report containing 5 the results of the study conducted under paragraph 6 (1), together with recommendations for such legisla- 7 tion and administrative action as the Comptroller 8 General determines appropriate. 9 (c) MEDPAC REPORTS ON AGREEMENTS WITH 10 PHARMACY BENEFIT MANAGERS WITH RESPECT TO PRE- 11 SCRIPTION DRUG PLANS AND MA-PD PLANS.— 12 (1) IN GENERAL.—The Medicare Payment Ad- 13 visory Commission shall submit to Congress the fol- 14 lowing reports: 15 (A) INITIAL REPORT.—Not later than the 16 first March 15 occurring after the date that is 17 2 years after the date on which the Secretary 18 makes the data available to the Commission, a 19 report regarding agreements with pharmacy 20 benefit managers with respect to prescription 21 drug plans and MA–PD plans. Such report 22 shall include, to the extent practicable— 23 (i) a description of trends and pat- 24 terns, including relevant averages, totals, 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00452 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 453 •HR 1 RH and other figures for the types of informa- 1 tion submitted; 2 (ii) an analysis of any differences in 3 agreements and their effects on plan en- 4 rollee out-of-pocket spending and average 5 pharmacy reimbursement, and other im- 6 pacts; and 7 (iii) any recommendations the Com- 8 mission determines appropriate. 9 (B) FINAL REPORT.—Not later than 2 10 years after the date on which the Commission 11 submits the initial report under subparagraph 12 (A), a report describing any changes with re- 13 spect to the information described in subpara- 14 graph (A) over time, together with any rec- 15 ommendations the Commission determines ap- 16 propriate. 17 (2) FUNDING.—In addition to amounts other- 18 wise available, there is appropriated to the Medicare 19 Payment Advisory Commission, out of any money in 20 the Treasury not otherwise appropriated, 21 $1,000,000 for fiscal year 2026, to remain available 22 until expended, to carry out this subsection. 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00453 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 454 •HR 1 RH TITLE V—COMMITTEE ON 1 FINANCIAL SERVICES 2 SEC. 50001. GREEN AND RESILIENT RETROFIT PROGRAM 3 FOR MULTIFAMILY FAMILY HOUSING. 4 The unobligated balance of amounts made available 5 under section 30002(a) of Public Law 117-169 (commonly 6 referred to as the ‘‘Inflation Reduction Act’’; 136 Stat. 7 2027) are rescinded. 8 SEC. 50002. PUBLIC COMPANY ACCOUNTING OVERSIGHT 9 BOARD. 10 (a) During the period beginning on the date of enact- 11 ment of this Act and ending on the transfer date— 12 (1) all intellectual property retained by the 13 Public Company Accounting Oversight Board 14 (‘‘Board’’) in support of its programs for registra- 15 tion, standard-setting, and inspection shall be shared 16 with the Securities and Exchange Commission 17 (‘‘Commission’’); and 18 (2) pending enforcement and disciplinary ac- 19 tions of the Board shall be referred to the Commis- 20 sion or other regulators in accordance with section 21 105 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 22 7215). 23 (b) Effective on the transfer date— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00454 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 455 •HR 1 RH (1) all unobligated fees collected under section 1 109(d) of the Sarbanes-Oxley Act of 2002 shall be 2 transferred to the general fund of the Treasury, and 3 the Commission may not collect fees under such sec- 4 tion 109(d); 5 (2) the duties and powers of the Board in effect 6 as of the day before the transfer date, other than 7 those described in section 107 of the Sarbanes-Oxley 8 Act of 2002 (15 U.S.C. 7217), shall be transferred 9 to the Commission; 10 (3) the Commission may not use funds to carry 11 out section 107 of the Sarbanes-Oxley Act of 2002 12 (15 U.S.C. 7217) for activities related to overseeing 13 the Board; 14 (4) the Board shall transfer all intellectual 15 property described in subsection (a)(1) to the Com- 16 mission; 17 (5) existing processes and regulations of the 18 Board, including existing Board auditing standards, 19 shall continue in effect unless modified through rule 20 making by the Commission; and 21 (6) any reference to the Board in any law, reg- 22 ulation, document, record, map, or other paper of 23 the United States shall be deemed a reference to the 24 Commission. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00455 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 456 •HR 1 RH (c) Any employee of the Board as of the date of en- 1 actment of this Act may— 2 (1) be offered equivalent positions on the Com- 3 mission staff, as determined by the Commission, and 4 submit to the Commission’s standard employment 5 policies; and 6 (2) receive pay that is not higher than the high- 7 est paid employee of similarly situated employees of 8 the Commission. 9 (d) In this section, the term ‘‘transfer date’’ means 10 the date established by the Commission for purposes of 11 this section, except that such date may not be later than 12 the date that is 1 year after the date of enactment of this 13 Act. 14 SEC. 50003. BUREAU OF CONSUMER FINANCIAL PROTEC- 15 TION. 16 Section 1017(a)(2) of the Consumer Financial Pro- 17 tection Act of 2010 (12 U.S.C. 5497(a)(2)) is amended— 18 (1) in subparagraph (A)(iii)— 19 (A) by striking ‘‘12 percent’’ and inserting 20 ‘‘5 percent’’; and 21 (B) by striking ‘‘2013’’ and inserting 22 ‘‘2025’’; and 23 (2) by striking subparagraph (C) and inserting 24 the following: 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00456 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 457 •HR 1 RH ‘‘(C) LIMITATION ON UNOBLIGATED BAL- 1 ANCES.—With respect to a fiscal year, the 2 amount of unobligated balances of the Bureau 3 may not exceed 5 percent of the dollar amount 4 referred to in subparagraph (A)(iii), as adjusted 5 under subparagraph (B). The Director shall 6 transfer any excess amount of such unobligated 7 balances to the general fund of the Treasury.’’. 8 SEC. 50004. CONSUMER FINANCIAL CIVIL PENALTY FUND. 9 Section 1017(d) of the Consumer Financial Protec- 10 tion Act of 2010 (12 U.S.C. 5497(d)) is amended— 11 (1) in paragraph (2)— 12 (A) in the first sentence, by inserting ‘‘di- 13 rect’’ before ‘‘victims’’; and 14 (B) by striking the second sentence; and 15 (2) by adding at the end the following: 16 ‘‘(3) TREATMENT OF EXCESS AMOUNTS.—With 17 respect to a civil penalty described under paragraph 18 (1), if the Bureau makes payments to all of the di- 19 rect victims of activities for which that civil penalty 20 was imposed, the Bureau shall transfer all amounts 21 that remain in the Civil Penalty Fund with respect 22 to that civil penalty to the general fund of the 23 Treasury.’’. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00457 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 458 •HR 1 RH SEC. 50005. FINANCIAL RESEARCH FUND. 1 Section 155 of the Financial Stability Act of 2010 2 (12 U.S.C. 5345) is amended by adding at the end the 3 following: 4 ‘‘(e) LIMITATION ON ASSESSMENTS AND THE FINAN- 5 CIAL RESEARCH FUND.— 6 ‘‘(1) LIMITATION ON ASSESSMENTS.—Assess- 7 ments may not be collected under subsection (d) if 8 the assessments would result in— 9 ‘‘(A) the Financial Research Fund exceed- 10 ing the average annual budget amount; or 11 ‘‘(B) the total assessments collected during 12 a single fiscal year exceeding the average an- 13 nual budget amount. 14 ‘‘(2) TRANSFER OF EXCESS FUNDS.—Any 15 amounts in the Financial Research Fund exceeding 16 the average annual budget amount shall be deposited 17 into the general fund of the Treasury. 18 ‘‘(3) AVERAGE ANNUAL BUDGET AMOUNT DE- 19 FINED.—In this subsection the term ‘average annual 20 budget amount’ means the annual average, over the 21 3 most recently completed fiscal years, of the ex- 22 penses of the Council in carrying out the duties and 23 responsibilities of the Council that were paid by the 24 Office using amounts obtained through assessments 25 under subsection (d).’’. 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00458 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 459 •HR 1 RH TITLE VI—COMMITTEE ON 1 HOMELAND SECURITY 2 SEC. 60001. BORDER BARRIER SYSTEM CONSTRUCTION, 3 INVASIVE SPECIES, AND BORDER SECURITY 4 FACILITIES IMPROVEMENTS. 5 In addition to amounts otherwise available, there is 6 appropriated to the Commissioner of U.S. Customs and 7 Border Protection for fiscal year 2025, out of any money 8 in the Treasury not otherwise appropriated, to remain 9 available until September 30, 2029, the following: 10 (1) $46,500,000,000 for necessary expenses re- 11 lating to the following: 12 (A) Construction, installation, or improve- 13 ment of primary, waterborne, and secondary 14 barriers. 15 (B) Access roads. 16 (C) Barrier system attributes, including 17 cameras, lights, sensors, roads, and other detec- 18 tion technology. 19 (2) $50,000,000 for necessary expenses relating 20 to eradication and removal of the carrizo cane plant, 21 salt cedar, or any other invasive plant species that 22 impedes border security operations along the Rio 23 Grande River. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00459 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 460 •HR 1 RH (3) $5,000,000,000 for necessary expenses re- 1 lating to lease, acquisition, construction, or improve- 2 ment of U.S. Customs and Border Protection facili- 3 ties and checkpoints in the vicinity of the southwest, 4 northern, and maritime borders. 5 SEC. 60002. U.S. CUSTOMS AND BORDER PROTECTION PER- 6 SONNEL AND FLEET VEHICLES. 7 (a) CBP PERSONNEL.—In addition to amounts oth- 8 erwise available, there is appropriated to the Commis- 9 sioner of U.S. Customs and Border Protection for fiscal 10 year 2025, out of any money in the Treasury not otherwise 11 appropriated, $4,100,000,000, to remain available until 12 September 30, 2029, to hire and train additional Border 13 Patrol agents, Office of Field Operations Officers, Air and 14 Marine agents, rehired annuitants, and U.S. Customs and 15 Border Protection support personnel. 16 (b) RESTRICTIONS.—None of the funds made avail- 17 able by subsection (a) may be used to recruit, hire, or train 18 personnel for the duties of processing coordinators. 19 (c) CBP RETENTION AND HIRING BONUSES.—In ad- 20 dition to amounts otherwise available, there is appro- 21 priated to the Commissioner of U.S. Customs and Border 22 Protection for fiscal year 2025, out of any money in the 23 Treasury not otherwise appropriated, $2,052,630,000, to 24 remain available until September 30, 2029, to provide an- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00460 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 461 •HR 1 RH nual retention bonuses or signing bonuses to eligible Bor- 1 der Patrol agents, Office of Field Operations Officers, and 2 Air and Marine agents. 3 (d) CBP VEHICLES.—In addition to amounts other- 4 wise available, there is appropriated to the Commissioner 5 of U.S. Customs and Border Protection for fiscal year 6 2025, out of any money in the Treasury not otherwise ap- 7 propriated, $813,000,000, to remain available until Sep- 8 tember 30, 2029, for the lease or acquisition of additional 9 marked patrol units. 10 (e) FLETC.—In addition to amounts otherwise avail- 11 able, there is appropriated to the Director of the Federal 12 Law Enforcement Training Center for fiscal year 2025, 13 out of any money in the Treasury not otherwise appro- 14 priated— 15 (1) $285,000,000, to remain available until 16 September 30, 2029, to support the training of 17 newly hired Federal law enforcement personnel em- 18 ployed by the Department of Homeland Security; 19 and 20 (2) $465,000,000, to remain available until 21 September 30, 2029, for procurement and construc- 22 tion, improvements, and related expenses of the Fed- 23 eral Law Enforcement Training Centers facilities. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00461 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 462 •HR 1 RH (f) BORDER SECURITY WORKFORCE RECRUITMENT 1 AND APPLICANT SOURCING.—In addition to amounts oth- 2 erwise available, there is appropriated to the Commis- 3 sioner of U.S. Customs and Border Protection for fiscal 4 year 2025, out of any money in the Treasury not otherwise 5 appropriated, $600,000,000, to remain available until 6 September 30, 2029, for marketing, recruiting, applicant 7 sourcing and vetting, and operational mobility programs 8 for border security personnel. 9 SEC. 60003. U.S. CUSTOMS AND BORDER PROTECTION 10 TECHNOLOGY, NATIONAL VETTING CENTER, 11 AND OTHER EFFORTS TO ENHANCE BORDER 12 SECURITY. 13 (a) CBP TECHNOLOGY.—In addition to amounts oth- 14 erwise available, there is appropriated to the Commis- 15 sioner of U.S. Customs and Border Protection for fiscal 16 year 2025, out of any money in the Treasury not otherwise 17 appropriated, to remain available until September 30, 18 2029, the following: 19 (1) $1,076,317,000 for necessary expenses re- 20 lating to procurement and integration of new non-in- 21 trusive inspection equipment and associated civil 22 works, artificial intelligence, integration, and ma- 23 chine learning, as well as other mission support, to 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00462 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 463 •HR 1 RH combat the entry of illicit narcotics along the south- 1 west, northern, and maritime borders. 2 (2) $2,766,000,000 for necessary expenses re- 3 lating to upgrades and procurement of border sur- 4 veillance technologies along the southwest, northern, 5 and maritime borders. 6 (3) $673,000,000 for necessary expenses, in- 7 cluding the deployment of technology, relating to the 8 biometric entry and exit system under section 7208 9 of the Intelligence Reform and Terrorism Prevention 10 Act of 2004 (8 U.S.C. 1365b). 11 (b) RESTRICTIONS.—None of the funds made avail- 12 able pursuant to subsection (a)(2) may be used for the 13 procurement or deployment of surveillance towers that 14 have not been— 15 (1) tested, and 16 (2) accepted, 17 by the Federal Government to deliver autonomous capa- 18 bilities. 19 (c) AIR AND MARINE OPERATIONS.—In addition to 20 amounts otherwise available, there is appropriated to the 21 Commissioner of U.S. Customs and Border Protection for 22 fiscal year 2025, out of any money in the Treasury not 23 otherwise appropriated, $1,234,000,000, to remain avail- 24 able until September 30, 2029, for Air and Marine Oper- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00463 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 464 •HR 1 RH ations’ upgrading and procurement of new platforms for 1 rapid air and marine response capabilities. 2 (d) NATIONAL VETTING CENTER.—In addition to 3 amounts otherwise available, there is appropriated to the 4 Commissioner of U.S. Customs and Border Protection for 5 fiscal year 2025, out of any money in the Treasury not 6 otherwise appropriated, $16,000,000, to remain available 7 until September 30, 2029, for necessary expenses relating 8 to U.S. Customs and Border Protection’s National Vetting 9 Center to support screening, vetting activities, and expan- 10 sion of the criminal history database of foreign nationals. 11 (e) OTHER EFFORTS TO COMBAT DRUG TRAF- 12 FICKING TO ENHANCE BORDER SECURITY.—In addition 13 to amounts otherwise available, there is appropriated to 14 the Secretary of Homeland Security for fiscal year 2025, 15 out of any money in the Treasury not otherwise appro- 16 priated, $500,000,000, to remain available until Sep- 17 tember 30, 2029, for enhancing border security and com- 18 batting trafficking, including fentanyl and its precursor 19 chemicals, at the southwest, northern, and maritime bor- 20 ders. 21 (f) COMMEMORATIONS.—In addition to amounts oth- 22 erwise available, there is appropriated to the Secretary of 23 Homeland Security for fiscal year 2025, out of any money 24 in the Treasury not otherwise appropriated, $1,000,000, 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00464 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 465 •HR 1 RH to remain available until September 30, 2029, for com- 1 memorating efforts and events related to border security. 2 (g) DEFINITION.—In this section, the term ‘‘autono- 3 mous’’ means integrated software and hardware systems 4 that utilize sensors, onboard computing, and artificial in- 5 telligence to identify items of interest that would otherwise 6 be manually identified by U.S. Customs and Border Pro- 7 tection personnel. 8 SEC. 60004. STATE AND LOCAL LAW ENFORCEMENT PRESI- 9 DENTIAL RESIDENCE PROTECTION. 10 (a) PRESIDENTIAL RESIDENCE PROTECTION.—In 11 addition to amounts otherwise available, there is appro- 12 priated to the Administrator of the Federal Emergency 13 Management Agency, for fiscal year 2025, out of any 14 money in the Treasury not otherwise appropriated, 15 $300,000,000, to remain available until September 30, 16 2029, for the reimbursement of extraordinary law enforce- 17 ment personnel costs for protection activities directly and 18 demonstrably associated with any residence of the Presi- 19 dent that is designated pursuant to section 3 of the Presi- 20 dential Protection Assistance Act of 1976 (Public Law 21 94–524) to be secured by the United States Secret Serv- 22 ice. 23 (b) AVAILABILITY.—Funds under subsection (a) shall 24 be available only for costs that a State or local agency— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00465 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 466 •HR 1 RH (1) incurred or incurs on or after July 1, 2024; 1 (2) can demonstrate to the Administrator of the 2 Federal Emergency Management Agency as being— 3 (A) in excess of the costs of normal and 4 typical law enforcement operations; 5 (B) directly attributable to the provision of 6 protection described in such subsection; and 7 (C) associated with a non-governmental 8 property designated pursuant to section 3 of 9 the Presidential Protection Assistance Act of 10 1976 (Public Law 94–524) to be secured by the 11 United States Secret Service; and 12 (3) certifies to the Administrator as being for 13 protection activities requested by the Director of the 14 United States Secret Service. 15 SEC. 60005. STATE HOMELAND SECURITY GRANT PRO- 16 GRAM. 17 In addition to amounts otherwise available, there is 18 appropriated to the Administrator of the Federal Emer- 19 gency Management Agency, for fiscal year 2025, out of 20 any money in the Treasury, not otherwise appropriated, 21 to be administered under the State Homeland Security 22 Grant Program authorized under section 2004 of the 23 Homeland Security Act of 2002 (6 U.S.C. 605), to en- 24 hance State, local, and Tribal security through grants, 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00466 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 467 •HR 1 RH contracts, cooperative agreements, and other activities, of 1 which— 2 (1) $500,000,000, to remain available until 3 September 30, 2029, for State and local capabilities 4 to detect, identify, track, or monitor threats from 5 unmanned aircraft systems (as such term is defined 6 in section 44801 of title 49, United States Code); 7 (2) $625,000,000, to remain available until 8 September 30, 2029, for security, planning, and 9 other costs related to the 2026 FIFA World Cup; 10 (3) $1,000,000,000, to remain available until 11 September 30, 2029, for security, planning, and 12 other costs related to the 2028 Olympics; and 13 (4) $450,000,000, to remain available until 14 September 30, 2029, for the Operation Stonegarden 15 Grant Program. 16 TITLE VII—COMMITTEE ON THE 17 JUDICIARY 18 Subtitle A—Immigration Matters 19 PART 1—IMMIGRATION FEES 20 SEC. 70001. APPLICABILITY OF THE IMMIGRATION LAWS. 21 (a) APPLICABILITY.—Notwithstanding any provision 22 of the immigration laws (as defined under section 101 of 23 the Immigration and Nationality Act), the fees under this 24 subtitle shall apply. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00467 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 468 •HR 1 RH (b) TERMS.—The terms used under this subtitle shall 1 have the meanings given such terms in section 101 of the 2 Immigration and Nationality Act. 3 (c) REFERENCES TO IMMIGRATION AND NATION- 4 ALITY ACT.—Except as otherwise expressly provided, 5 whenever this subtitle references a section or other provi- 6 sion, the reference shall be considered to be to a section 7 or other provision of the Immigration and Nationality Act. 8 SEC. 70002. ASYLUM FEE. 9 (a) IN GENERAL.—In addition to any other fee au- 10 thorized by law, the Secretary of Homeland Security or 11 the Attorney General, as applicable, shall impose a fee in 12 the amount specified in this section for a fiscal year on 13 each alien who files an application for asylum under sec- 14 tion 208 of the Immigration and Nationality Act at the 15 time such application is filed. 16 (b) INITIAL AMOUNT.—The amount specified in this 17 section for fiscal year 2025 shall be such amount as the 18 Secretary or Attorney General, as applicable, may by rule 19 provide, but in any event not less than $1,000. 20 (c) SUBSEQUENT ADJUSTMENT.—Beginning in fiscal 21 year 2026 and each fiscal year thereafter, the amount 22 specified in this section for a fiscal year shall be equal 23 to the sum of— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00468 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 469 •HR 1 RH (1) the amount imposed under this section for 1 the prior fiscal year; and 2 (2) rounded to the next lowest multiple of $10, 3 the amount referred to in paragraph (1), multiplied 4 by the percentage (if any) by which the Consumer 5 Price Index for All Urban Consumers for the month 6 of July preceding the date on which such adjustment 7 takes effect exceeds the Consumer Price Index for 8 All Urban Consumers for the same month of the 9 preceding calendar year. 10 (d) CREDITING CERTAIN FUNDS.—During any fiscal 11 year, the total amount of fees received under this section 12 shall be credited as follows: 13 (1) 50 percent of fees received from applica- 14 tions filed with the Attorney General shall be cred- 15 ited to the Executive Office for Immigration Review 16 to retain and spend without further appropriation. 17 (2) 50 percent of fees received from applica- 18 tions filed with the Secretary of Homeland Security 19 shall be credited to U.S. Citizenship and Immigra- 20 tion Services and deposited into the Immigration 21 Examinations Fee Account established under section 22 286(m) of the Immigration and Nationality Act (8 23 U.S.C. 1356(m)) to retain and spend without fur- 24 ther appropriation. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00469 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 470 •HR 1 RH (3) Any amounts not credited to the Executive 1 Office for Immigration Review or U.S. Citizenship 2 and Immigration Services shall be credited as offset- 3 ting receipts and deposited into the general fund of 4 the Treasury. 5 (e) NO WAIVER.—A fee imposed under this section 6 shall not be waived or reduced. 7 SEC. 70003. EMPLOYMENT AUTHORIZATION DOCUMENT 8 FEES. 9 (a) ASYLUM APPLICANTS.— 10 (1) IN GENERAL.—In addition to any other fee 11 authorized by law, the Secretary of Homeland Secu- 12 rity shall impose on any alien who files an initial ap- 13 plication for employment authorization under section 14 208(d)(2) of the Immigration and Nationality Act a 15 fee in the amount specified in this subsection at the 16 time such initial employment authorization applica- 17 tion is filed. Each initial employment authorization 18 shall be valid for a period of not more than six 19 months. 20 (2) INITIAL AMOUNT.— For purposes of this 21 subsection, the amount specified in this subsection 22 for fiscal year 2025 shall be such amount as the 23 Secretary may by rule provide, but in any event not 24 less than $550. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00470 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 471 •HR 1 RH (3) SUBSEQUENT ADJUSTMENT.—Beginning in 1 fiscal year 2026 and each fiscal year thereafter, the 2 amount for a fiscal year shall be equal to the sum 3 of— 4 (A) the amount imposed under this section 5 for the prior fiscal year; and 6 (B) rounded to the next lowest multiple of 7 $10, the amount referred to in subparagraph 8 (A), multiplied by the percentage (if any) by 9 which the Consumer Price Index for All Urban 10 Consumers for the month of July preceding the 11 date on which such adjustment takes effect ex- 12 ceeds the Consumer Price Index for All Urban 13 Consumers for the same month of the preceding 14 calendar year. 15 (4) CREDITING OF FUNDS.—25 percent of fees 16 received under this section shall be credited to U.S. 17 Citizenship and Immigration Services and deposited 18 into the Immigration Examinations Fee Account es- 19 tablished under section 286(m) of the Immigration 20 and Nationality Act (8 U.S.C. 1356(m)) to retain 21 and spend without further appropriation, of which 22 50 percent shall be used by U.S. Citizenship and Im- 23 migration Services to detect and prevent immigra- 24 tion benefit fraud. Any amounts not credited to U.S. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00471 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 472 •HR 1 RH Citizenship and Immigration Services under this sec- 1 tion shall be credited as offsetting receipts and de- 2 posited into the general fund of the Treasury. 3 (5) NO WAIVER.—A fee imposed under this 4 subsection shall not be waived or reduced. 5 (b) PAROLE.— 6 (1) IN GENERAL.—In addition to any other fee 7 authorized by law, the Secretary of Homeland Secu- 8 rity shall impose on any alien paroled into the 9 United States a fee for any initial application for 10 employment authorization in an amount specified in 11 this subsection at the time such initial application is 12 filed. Each initial employment authorization shall be 13 valid for a period of not more than six months. 14 (2) INITIAL AMOUNT.—For purposes of this 15 subsection, the amount specified in this subsection 16 for fiscal year 2025 shall be such amount as the 17 Secretary may by rule provide, but in any event not 18 less than $550. 19 (3) SUBSEQUENT ADJUSTMENT.—Beginning in 20 fiscal year 2026 and each fiscal year thereafter, the 21 amount specified in this subsection for a fiscal year 22 shall be equal to the sum of— 23 (A) the amount imposed under this sub- 24 section for the prior fiscal year; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00472 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 473 •HR 1 RH (B) rounded to the next lowest multiple of 1 $10, the amount referred to in subparagraph 2 (A), multiplied by the percentage (if any) by 3 which the Consumer Price Index for All Urban 4 Consumers for the month of July preceding the 5 date on which such adjustment takes effect ex- 6 ceeds the Consumer Price Index for All Urban 7 Consumers for the same month of the preceding 8 calendar year. 9 (4) CREDITING OF FUNDS.—The fees received 10 under this section shall be credited as offsetting re- 11 ceipts and deposited into the general fund of the 12 Treasury. 13 (5) NO WAIVER.—A fee imposed under this 14 subsection shall not be waived or reduced. 15 (c) TEMPORARY PROTECTED STATUS.— 16 (1) IN GENERAL.—In addition to any other fee 17 authorized by law, for any alien who files an initial 18 application for employment authorization under sec- 19 tion 244(a)(1)(B) of the Immigration and Nation- 20 ality Act, the Secretary of Homeland Security shall 21 impose a fee in an amount specified in this sub- 22 section at the time such initial application is filed. 23 Each initial employment authorization shall be valid 24 for a period of not more than six months. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00473 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 474 •HR 1 RH (2) INITIAL AMOUNT.—For purposes of this 1 subsection, the amount specified in this subsection 2 for fiscal year 2025 shall be such amount as the 3 Secretary may by rule provide, but in any event not 4 less than $550. 5 (3) SUBSEQUENT ADJUSTMENT.—Beginning in 6 fiscal year 2026 and each fiscal year thereafter, the 7 amount specified in this subsection for a fiscal year 8 shall be equal to the sum of— 9 (A) the amount imposed under this sub- 10 section for the prior fiscal year; and 11 (B) rounded to the next lowest multiple of 12 $10, the amount referred to in subparagraph 13 (A), multiplied by the percentage (if any) by 14 which the Consumer Price Index for All Urban 15 Consumers for the month of July preceding the 16 date on which such adjustment takes effect ex- 17 ceeds the Consumer Price Index for All Urban 18 Consumers for the same month of the preceding 19 calendar year. 20 (4) CREDITING OF CERTAIN FUNDS.—The fees 21 received under this section shall be credited as off- 22 setting receipts and deposited into the general fund 23 of the Treasury. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00474 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 475 •HR 1 RH (5) NO WAIVER.—A fee imposed under this 1 subsection shall not be waived or reduced. 2 SEC. 70004. PAROLE FEE. 3 (a) IN GENERAL.—In addition to any other fee au- 4 thorized by law, the Secretary of Homeland Security shall 5 impose a fee in an amount specified in this section on each 6 alien who is paroled into the United States, except if, as 7 established by the alien, the alien is paroled because— 8 (1) the alien has a medical emergency, and— 9 (A) the alien cannot obtain necessary 10 treatment in the foreign state in which the alien 11 is residing; or 12 (B) the medical emergency is life-threat- 13 ening and there is insufficient time for the alien 14 to be admitted to the United States through the 15 normal visa process; 16 (2) the alien is the parent or legal guardian of 17 an alien described in paragraph (1) and the alien de- 18 scribed in paragraph (1) is a minor; 19 (3) the alien is needed in the United States to 20 donate an organ or other tissue for transplant and 21 there is insufficient time for the alien to be admitted 22 to the United States through the normal visa proc- 23 ess; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00475 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 476 •HR 1 RH (4) the alien has a close family member in the 1 United States whose death is imminent and the alien 2 could not arrive in the United States in time to see 3 such family member alive if the alien were to be ad- 4 mitted to the United States through the normal visa 5 process; 6 (5) the alien is seeking to attend the funeral of 7 a close family member and the alien could not arrive 8 in the United States in time to attend such funeral 9 if the alien were to be admitted to the United States 10 through the normal visa process; 11 (6) the alien is an adopted child with an urgent 12 medical condition who is in the legal custody of the 13 petitioner for a final adoption-related visa and whose 14 medical treatment is required before the expected 15 award of a final adoption-related visa; 16 (7) the alien is a lawful applicant for adjust- 17 ment of status under section 245 of the Immigration 18 and Nationality Act and is returning to the United 19 States after temporary travel abroad; 20 (8) the alien is returned to a contiguous coun- 21 try under section 235(b)(2)(C) of the Immigration 22 and Nationality Act and paroled into the United 23 States to allow the alien to attend the alien’s immi- 24 gration hearing; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00476 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 477 •HR 1 RH (9) the alien— 1 (A) is a national of the Republic of Cuba 2 and is living in the Republic of Cuba; 3 (B) is the beneficiary of an approved peti- 4 tion under section 203(a) of the Immigration 5 and Nationality Act; 6 (C) is an alien for whom an immigrant 7 visa is not immediately available; 8 (D) meets all eligibility requirements for 9 an immigrant visa; 10 (E) is not otherwise inadmissible; and 11 (F) is receiving a grant of parole in fur- 12 therance of the commitment of the United 13 States to the minimum level of annual legal mi- 14 gration of Cuban nationals to the United States 15 specified in the U.S.-Cuba Joint Communique´ 16 on Migration, done at New York September 9, 17 1994, and reaffirmed in the Cuba-United 18 States: Joint Statement on Normalization of 19 Migration, Building on the Agreement of Sep- 20 tember 9, 1994, done at New York May 2, 21 1995; or 22 (10) the Secretary of Homeland Security deter- 23 mines that a significant public benefit has resulted 24 or will result from the parole of an alien only if— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00477 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 478 •HR 1 RH (A) the alien has assisted or will assist the 1 United States Government in a law enforcement 2 matter; 3 (B) the alien’s presence is required by the 4 Government in furtherance of such law enforce- 5 ment matter; and 6 (C) the alien is inadmissible, does not sat- 7 isfy the eligibility requirements for admission as 8 a nonimmigrant, or there is insufficient time for 9 the alien to be admitted to the United States 10 through the normal visa process. 11 (b) INITIAL AMOUNT.—For purposes of this section, 12 the amount specified in this subsection for fiscal year 13 2025 shall be such amount as the Secretary may by rule 14 provide, but in any event not less than $1,000. 15 (c) SUBSEQUENT ADJUSTMENT.—Beginning in fiscal 16 year 2026 and each fiscal year thereafter, the amount 17 specified in this section for a fiscal year shall be equal 18 to the sum of— 19 (1) the amount imposed under this section for 20 the prior fiscal year; and 21 (2) rounded to the next lowest multiple of $10, 22 the amount referred to in paragraph (1), multiplied 23 by the percentage (if any) by which the Consumer 24 Price Index for All Urban Consumers for the month 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00478 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 479 •HR 1 RH of July preceding the date on which such adjustment 1 takes effect exceeds the Consumer Price Index for 2 All Urban Consumers for the same month of the 3 preceding calendar year. 4 (d) CREDITING OF FUNDS.—Fees received under this 5 section shall be credited as offsetting receipts and depos- 6 ited in the general fund of the Treasury. 7 (e) NO WAIVER.—A fee imposed under this section 8 shall not be waived or reduced. 9 SEC. 70005. SPECIAL IMMIGRANT JUVENILE FEE. 10 (a) IN GENERAL.—In addition to any other fee au- 11 thorized by law, the Secretary of Homeland Security shall 12 impose a fee in an amount specified in this section on any 13 alien applying for special immigrant juvenile status under 14 section 101(a)(27)(J) of the Immigration and Nationality 15 Act if reunification with 1 parent or legal guardian is via- 16 ble, notwithstanding abuse, neglect, abandonment, or a 17 similar basis found under State law making reunification 18 with the other parent or legal guardian not viable. 19 (b) INITIAL AMOUNT.—For purposes of this sub- 20 section, the amount specified in this section for fiscal year 21 2025 shall be such amount as the Secretary may by rule 22 provide, but in any event not less than $500. 23 (c) SUBSEQUENT ADJUSTMENT.—Beginning in fiscal 24 year 2026 and each fiscal year thereafter, the amount 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00479 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 480 •HR 1 RH specified in this section for a fiscal year shall be equal 1 to the sum of— 2 (1) the amount imposed under this section for 3 the prior fiscal year; and 4 (2) rounded to the next lowest multiple of $10, 5 the amount referred to in paragraph (1), multiplied 6 by the percentage (if any) by which the Consumer 7 Price Index for All Urban Consumers for the month 8 of July preceding the date on which such adjustment 9 takes effect exceeds the Consumer Price Index for 10 All Urban Consumers for the same month of the 11 preceding calendar year. 12 (d) CREDITING OF FUNDS.—Fees received under this 13 section shall be credited as offsetting receipts and depos- 14 ited in the general fund of the Treasury. 15 (e) NO WAIVER.—A fee imposed under this section 16 shall not be waived or reduced. 17 SEC. 70006. TEMPORARY PROTECTED STATUS FEE. 18 (a) IN GENERAL.—In addition to any other fee au- 19 thorized by law, the Secretary of Homeland Security shall 20 impose a fee in an amount specified in this section for 21 the consideration of an application for temporary pro- 22 tected status under section 244 of the Immigration and 23 Nationality Act on any alien who— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00480 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 481 •HR 1 RH (1) has not been admitted into the United 1 States; or 2 (2) has been admitted to the United States as 3 a nonimmigrant but at the time of application for 4 temporary protected status has failed— 5 (A) to maintain or extend the non- 6 immigrant status in which the alien was admit- 7 ted or to which the status was changed under 8 section 248 of the Immigration and Nationality 9 Act, including complying with the period of stay 10 authorized by the Secretary of Homeland Secu- 11 rity in connection with such status; or 12 (B) to comply with the conditions of such 13 nonimmigrant status. 14 (b) INITIAL AMOUNT.—For purposes of this sub- 15 section, the amount specified in this section for fiscal year 16 2025 shall be such amount as the Secretary may by rule 17 provide, but in any event not less than $500. 18 (c) SUBSEQUENT ADJUSTMENT.—Beginning in fiscal 19 year 2026 and each fiscal year thereafter, the amount 20 specified in this section for a fiscal year shall be equal 21 to the sum of— 22 (1) the amount imposed under this section for 23 the prior fiscal year; and 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00481 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 482 •HR 1 RH (2) rounded to the next lowest multiple of $10, 1 the amount referred to in paragraph (1), multiplied 2 by the percentage (if any) by which the Consumer 3 Price Index for All Urban Consumers for the month 4 of July preceding the date on which such adjustment 5 takes effect exceeds the Consumer Price Index for 6 All Urban Consumers for the same month of the 7 preceding calendar year. 8 (d) CREDITING OF FUNDS.—Fees received under this 9 section shall be credited as offsetting receipts and depos- 10 ited in the general fund of the Treasury. 11 (e) NO WAIVER.—A fee imposed under this section 12 shall not be waived or reduced. 13 SEC. 70007. UNACCOMPANIED ALIEN CHILD SPONSOR FEE. 14 (a) IN GENERAL.—In addition to any other fee au- 15 thorized by law, before placing the child with an individual 16 under section 235(c) of the William Wilberforce Traf- 17 ficking Victims Protection Reauthorization Act of 2008, 18 the Secretary of Health and Human Services shall collect 19 from that individual a fee in an amount specified in this 20 section as partial reimbursement to the Federal Govern- 21 ment for the period during which the child was in the cus- 22 tody of the Government, for processing, housing, feeding, 23 educating, transporting, and otherwise providing for the 24 care of the child. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00482 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 483 •HR 1 RH (b) INITIAL AMOUNT.—For purposes of this sub- 1 section, the amount specified in this section for fiscal year 2 2025 shall be such amount as the Secretary may by rule 3 provide, but in any event not less than $3,500. 4 (c) SUBSEQUENT ADJUSTMENT.—Beginning in fiscal 5 year 2026 and each fiscal year thereafter, the amount 6 specified in this section for a fiscal year shall be equal 7 to the sum of— 8 (1) the amount imposed under this section for 9 the prior fiscal year; and 10 (2) rounded to the next lowest multiple of $10, 11 the amount referred to in paragraph (1), multiplied 12 by the percentage (if any) by which the Consumer 13 Price Index for All Urban Consumers for the month 14 of July preceding the date on which such adjustment 15 takes effect exceeds the Consumer Price Index for 16 All Urban Consumers for the same month of the 17 preceding calendar year. 18 (d) CREDITING OF FUNDS.—During any fiscal year, 19 the total amount of fees received under this section shall 20 be credited as follows: 21 (1) 25 percent of fees received under this sec- 22 tion shall be credited to the Department of Health 23 and Human Services to retain and spend without 24 further appropriation and shall be used for the pur- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00483 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 484 •HR 1 RH pose of conducting background checks of potential 1 sponsors of unaccompanied alien children and of 2 adults residing in potential sponsors’ households, 3 which shall include, at a minimum— 4 (A) the name of the individual and all 5 adult residents of the individual’s household; 6 (B) the social security number of the indi- 7 vidual and all adult residents of the individual’s 8 household; 9 (C) the date of birth of the individual and 10 all adult residents of the individual’s household; 11 (D) the validated location of the individ- 12 ual’s residence where the child will be placed; 13 (E) the immigration status of the indi- 14 vidual and all adult residents of the individual’s 15 household; 16 (F) contact information for the individual 17 and all adult residents of the individual’s house- 18 hold; and 19 (G) the results of all background and 20 criminal records checks for the individual and 21 all adult residents of the individual’s household, 22 which shall include at a minimum an investiga- 23 tion of the public records sex offender registry, 24 a public records background check, and a na- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00484 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 485 •HR 1 RH tional criminal history check based on finger- 1 prints. 2 (2) Any amounts not credited to the Depart- 3 ment of Health and Human Services shall be cred- 4 ited as offsetting receipts and deposited into the 5 general fund of the Treasury. 6 (e) NO WAIVER.—A fee imposed under this section 7 shall not be waived or reduced. 8 SEC. 70008. VISA INTEGRITY FEE. 9 (a) VISA INTEGRITY FEE.— 10 (1) IN GENERAL.—In addition to any other fee 11 authorized by law, the Secretary of State shall im- 12 pose a fee in an amount specified in this subsection 13 on each alien issued a nonimmigrant visa by the 14 State Department upon the issuance of such alien’s 15 nonimmigrant visa. 16 (2) INITIAL AMOUNT.—For purposes of this 17 subsection, the amount specified in this subsection 18 for fiscal year 2025 shall be such amount as the 19 Secretary may by rule provide, but in any event not 20 less than $250. 21 (3) SUBSEQUENT ADJUSTMENT.—Beginning in 22 fiscal year 2026 and each fiscal year thereafter, the 23 amount specified in this subsection for a fiscal year 24 shall be equal to the sum of— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00485 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 486 •HR 1 RH (A) the amount imposed under this section 1 for the prior fiscal year; and 2 (B) rounded to the next lowest multiple of 3 $1, the amount referred to in subparagraph 4 (A), multiplied by the percentage (if any) by 5 which the Consumer Price Index for All Urban 6 Consumers for the month of July preceding the 7 date on which such adjustment takes effect ex- 8 ceeds the Consumer Price Index for All Urban 9 Consumers for the same month of the preceding 10 calendar year. 11 (4) CREDITING OF FUNDS.—The fees received 12 under this subsection that are not reimbursed in ac- 13 cordance with subsection (b) shall be credited as off- 14 setting receipts and deposited in the general fund of 15 the Treasury. 16 (5) NO WAIVER.—A fee imposed under this 17 subsection shall not be waived or reduced. 18 (b) FEE REIMBURSEMENT.—The Secretary of State 19 may reimburse to an alien a fee imposed under this section 20 on that alien for the issuance of a nonimmigrant visa after 21 the expiration of such nonimmigrant visa’s period of valid- 22 ity if the alien demonstrates that— 23 (1) the alien has not sought admission during 24 such period of validity; 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00486 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 487 •HR 1 RH (2) the alien, after admission to the United 1 States pursuant to such nonimmigrant visa, com- 2 plied with all conditions of such nonimmigrant visa, 3 including the condition that an alien shall not accept 4 unauthorized employment, and that the alien de- 5 parted the United States not later than 5 days after 6 the date on which the alien was authorized to re- 7 main in the United States; or 8 (3) the alien filed to extend, change, or adjust 9 such status within the nonimmigrant visa’s period of 10 validity. 11 SEC. 70009. FORM I–94 FEE. 12 (a) FEE AUTHORIZED.—In addition to any other fee 13 authorized by law, the Secretary of Homeland Security 14 shall impose a fee in an amount specified in subsection 15 (b) on any alien upon the alien’s application for a Form 16 I–94 Arrival/Departure Record. 17 (b) FEE SPECIFIED.— 18 (1) INITIAL AMOUNT.—The amount specified in 19 this subsection for fiscal year 2025 shall be such 20 amount as the Secretary may by rule provide, but in 21 any event not less than $24. 22 (2) SUBSEQUENT ADJUSTMENT.—Beginning in 23 fiscal year 2026 and each fiscal year thereafter, the 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00487 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 488 •HR 1 RH amount specified in this subsection for a fiscal year 1 shall be equal to the sum of— 2 (A) the amount imposed under this section 3 for the prior fiscal year; and 4 (B) the amount referred to in subpara- 5 graph (A), multiplied by the percentage (if any) 6 by which the Consumer Price Index for All 7 Urban Consumers for the month of July pre- 8 ceding the date on which such adjustment takes 9 effect exceeds the Consumer Price Index for All 10 Urban Consumers for the same month of the 11 preceding calendar year. 12 (c) CREDITING OF FUNDS.—During any fiscal year, 13 the total amount of fees received under this section shall 14 be credited as follows: 15 (1) 20 percent of the fee collected under this 16 section for each application shall be deposited pursu- 17 ant to section 286(q)(2) of the Immigration and Na- 18 tionality Act (8 U.S.C. 1356(q)(2)) and made avail- 19 able to U.S. Customs and Border Protection to re- 20 tain and spend without further appropriation for the 21 purpose of processing Form I–94. 22 (2) Any amounts not credited to U.S. Customs 23 and Border Protection shall be credited as offsetting 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00488 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 489 •HR 1 RH receipts and deposited in the general fund of the 1 Treasury. 2 (d) NO WAIVER.—A fee imposed under this section 3 shall not be waived or reduced. 4 SEC. 70010. YEARLY ASYLUM FEE. 5 (a) FEE AUTHORIZED.—In addition to any other fee 6 authorized by law, for each calendar year that an alien’s 7 application for asylum remains pending, the Secretary of 8 Homeland Security or the Attorney General, as applicable, 9 shall impose a fee in an amount specified in subsection 10 (b) on that alien. 11 (b) FEE SPECIFIED.— 12 (1) INITIAL AMOUNT.—The amount specified in 13 this subsection for fiscal year 2025 shall be such 14 amount as the Secretary and the Attorney General 15 may by rule provide, but in any event not less than 16 $100. 17 (2) SUBSEQUENT ADJUSTMENT.—Beginning in 18 fiscal year 2026 and each fiscal year thereafter, the 19 amount specified in this subsection for a fiscal year 20 shall be equal to the sum of— 21 (A) the amount imposed under this section 22 for the prior fiscal year; and 23 (B) the amount referred to in subpara- 24 graph (A), multiplied by the percentage (if any) 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00489 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 490 •HR 1 RH by which the Consumer Price Index for All 1 Urban Consumers for the month of July pre- 2 ceding the date on which such adjustment takes 3 effect exceeds the Consumer Price Index for All 4 Urban Consumers for the same month of the 5 preceding calendar year. 6 (c) CREDITING OF FUNDS.—The fees received under 7 this section shall be credited as offsetting receipts and de- 8 posited in the general fund of the Treasury. 9 (d) NO WAIVER.—A fee imposed under this section 10 shall not be waived or reduced. 11 SEC. 70011. FEE FOR CONTINUANCES GRANTED IN IMMI- 12 GRATION COURT PROCEEDINGS. 13 (a) IN GENERAL.—In addition to any other fee au- 14 thorized by law, the Attorney General shall impose a fee 15 in an amount specified in subsection (b) on any alien who 16 requests and is granted a continuance by an immigration 17 judge for each such continuance. 18 (b) FEE SPECIFIED.— 19 (1) INITIAL AMOUNT.—The amount specified in 20 this subsection for fiscal year 2025 shall be such 21 amount as the Attorney General may by rule pro- 22 vide, but in any event not less than $100. 23 (2) SUBSEQUENT ADJUSTMENT.—Beginning in 24 fiscal year 2026 and each fiscal year thereafter, the 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00490 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 491 •HR 1 RH amount specified in this subsection for a fiscal year 1 shall be equal to the sum of— 2 (A) the amount imposed under this section 3 for the prior fiscal year; and 4 (B) the amount referred to in subpara- 5 graph (A), multiplied by the percentage (if any) 6 by which the Consumer Price Index for All 7 Urban Consumers for the month of July pre- 8 ceding the date on which such adjustment takes 9 effect exceeds the Consumer Price Index for All 10 Urban Consumers for the same month of the 11 preceding calendar year. 12 (c) CREDITING OF CERTAIN FUNDS.—Amounts re- 13 ceived as fees under this section shall be credited as offset- 14 ting receipts and deposited in the general fund of the 15 Treasury. 16 (d) NO WAIVER.—A fee imposed under this section 17 shall not be waived or reduced, except no fee shall be im- 18 posed on any alien whose request for a continuance is 19 granted based on exceptional circumstances (as such term 20 is defined in section 240 of the Immigration and Nation- 21 ality Act). 22 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00491 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 492 •HR 1 RH SEC. 70012. FEE RELATING TO RENEWAL AND EXTENSION 1 OF EMPLOYMENT AUTHORIZATION FOR PA- 2 ROLEES. 3 (a) FEE IMPOSED.—In addition to any other fee au- 4 thorized by law, for a parolee who seeks a renewal or ex- 5 tension of employment authorization based on a grant of 6 parole, the Secretary of Homeland Security shall impose 7 a fee in an amount specified in subsection (b). 8 (b) FEE SPECIFIED.— 9 (1) INITIAL AMOUNT.—The amount specified in 10 this subsection for fiscal year 2025 shall be such 11 amount as the Secretary may by rule provide, but in 12 any event not less than $550. 13 (2) SUBSEQUENT ADJUSTMENT.—Beginning in 14 fiscal year 2026 and each fiscal year thereafter, the 15 amount specified in this subsection for a fiscal year 16 shall be equal to the sum of— 17 (A) the amount imposed under this sub- 18 section for the prior fiscal year; and 19 (B) rounded to the next lowest multiple of 20 $10, the amount referred to in subparagraph 21 (A), multiplied by the percentage (if any) by 22 which the Consumer Price Index for All Urban 23 Consumers for the month of July preceding the 24 date on which such adjustment takes effect ex- 25 ceeds the Consumer Price Index for All Urban 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00492 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 493 •HR 1 RH Consumers for the same month of the preceding 1 calendar year. 2 (c) IN GENERAL.—The employment authorization for 3 any alien paroled into the United States, or any renewal 4 or extension thereof, shall be valid for a period of not more 5 than six months. 6 (d) CREDITING OF FUNDS.—The fees received under 7 this section shall be credited as offsetting receipts and de- 8 posited into the general fund of the Treasury. 9 (e) NO WAIVER.—A fee imposed under this sub- 10 section shall not be waived or reduced. 11 SEC. 70013. FEE RELATING TO TERMINATION, RENEWAL, 12 AND EXTENSION OF EMPLOYMENT AUTHOR- 13 IZATION FOR ASYLUM APPLICANTS. 14 (a) FEE IMPOSED.—In addition to any other fee au- 15 thorized by law, for any alien who applies for asylum and 16 who seeks a renewal or extension of employment author- 17 ization based on such application, the Secretary of Home- 18 land Security shall impose a fee of not less than $550 for 19 each such renewal or extension, in accordance with sub- 20 section (b). 21 (b) EMPLOYMENT AUTHORIZATION.—The Secretary 22 of Homeland Security may provide employment authoriza- 23 tion to an applicant for asylum for a period of not more 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00493 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 494 •HR 1 RH than six months. Each renewal or extension thereof shall 1 also be valid for a period of not more than six months. 2 (c) TERMINATION.—Each initial employment author- 3 ization, or renewal or extension of such authorization, 4 shall terminate as follows: 5 (1) Immediately following the denial of an asy- 6 lum application by an asylum officer, unless the case 7 is referred to an immigration judge. 8 (2) On the date that is 30 days after the date 9 on which an immigration judge denies an asylum ap- 10 plication, unless the alien makes a timely appeal to 11 the Board of Immigration Appeals. 12 (3) Immediately following the denial by the 13 Board of Immigration Appeals of an appeal of a de- 14 nial of an asylum application. 15 (d) PROHIBITION.—The Secretary of Homeland Se- 16 curity shall not grant, renew, or extend employment au- 17 thorization to an alien if the alien was previously granted 18 employment authorization as an applicant for asylum and 19 the employment authorization was terminated pursuant to 20 a circumstance described in subsection (c), unless a Fed- 21 eral Court of Appeals remands the alien’s case to the 22 Board of Immigration Appeals. 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00494 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 495 •HR 1 RH (e) CREDITING OF FUNDS.—The total amount of fees 1 received under this section shall be credited as offsetting 2 receipts and deposited in the general fund of the Treasury. 3 (f) NO WAIVER.—A fee imposed under this sub- 4 section shall not be waived or reduced. 5 SEC. 70014. FEE RELATING TO RENEWAL AND EXTENSION 6 OF EMPLOYMENT AUTHORIZATION FOR 7 ALIENS GRANTED TEMPORARY PROTECTED 8 STATUS. 9 (a) FEE IMPOSED.—In addition to any other fee au- 10 thorized by law, for any alien who seeks a renewal or ex- 11 tension of employment authorization based on a grant of 12 temporary protected status, the Secretary of Homeland 13 Security shall impose a fee in an amount specified in sub- 14 section (b) at the time of each such renewal or extension. 15 (b) FEE SPECIFIED.— 16 (1) INITIAL AMOUNT.—The amount specified in 17 this subsection for fiscal year 2025 shall be such 18 amount as the Secretary may by rule provide, but in 19 any event not less than $550. 20 (2) SUBSEQUENT ADJUSTMENT.—Beginning in 21 fiscal year 2026 and each fiscal year thereafter, the 22 amount specified in this subsection for a fiscal year 23 shall be equal to the sum of— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00495 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 496 •HR 1 RH (A) the amount imposed under this sub- 1 section for the prior fiscal year; and 2 (B) rounded to the next lowest multiple of 3 $10, the amount referred to in subparagraph 4 (A), multiplied by the percentage (if any) by 5 which the Consumer Price Index for All Urban 6 Consumers for the month of July preceding the 7 date on which such adjustment takes effect ex- 8 ceeds the Consumer Price Index for All Urban 9 Consumers for the same month of the preceding 10 calendar year. 11 (c) EMPLOYMENT AUTHORIZATION.—Any employ- 12 ment authorization for an alien granted temporary pro- 13 tected status, or any renewal or extension thereof, shall 14 be valid for a period of not more than six months. 15 (d) CREDITING OF FUNDS.—The fees received under 16 this section shall be credited as offsetting receipts and de- 17 posited into the general fund of the Treasury. 18 (e) NO WAIVER.—A fee imposed under this sub- 19 section shall not be waived or reduced. 20 SEC. 70015. DIVERSITY IMMIGRANT VISA FEES. 21 (a) FEE FOR FILING A DIVERSITY IMMIGRANT VISA 22 APPLICATION.— 23 (1) IN GENERAL.—In addition to any other fee 24 authorized by law, the Secretary of State shall im- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00496 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 497 •HR 1 RH pose on any alien who files an application for a di- 1 versity immigrant visa as described in section 203(c) 2 of the Immigration and Nationality Act (8 U.S.C. 3 1153(c)) a fee in the amount specified in this sub- 4 section at the time such application is filed. 5 (2) FEE SPECIFIED.— 6 (A) INITIAL AMOUNT.—The amount speci- 7 fied in this subsection for fiscal year 2025 shall 8 be such amount as the Secretary may by rule 9 provide, but in any event not less than $400. 10 (B) SUBSEQUENT ADJUSTMENT.—Begin- 11 ning in fiscal year 2026 and each fiscal year 12 thereafter, the amount specified in this sub- 13 section for a fiscal year shall be equal to the 14 sum of— 15 (i) the amount imposed under this 16 subsection for the prior fiscal year; and 17 (ii) rounded to the next lowest mul- 18 tiple of $10, the amount referred to in 19 clause (i), multiplied by the percentage (if 20 any) by which the Consumer Price Index 21 for All Urban Consumers for the month of 22 July preceding the date on which such ad- 23 justment takes effect exceeds the Con- 24 sumer Price Index for All Urban Con- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00497 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 498 •HR 1 RH sumers for the same month of the pre- 1 ceding calendar year. 2 (b) FEE FOR ALIENS WHO REGISTER FOR THE DI- 3 VERSITY IMMIGRANT VISA PROGRAM.— 4 (1) IN GENERAL.—In addition to any other fee 5 authorized by law, the Secretary of State shall im- 6 pose on any alien who registers for the diversity im- 7 migrant visa program, as described in section 203(c) 8 of the Immigration and Nationality Act (8 U.S.C. 9 1153(c)) a fee in the amount specified in this sub- 10 section at the time of registration. 11 (2) FEE SPECIFIED.— 12 (A) INITIAL AMOUNT.—The amount speci- 13 fied in this subsection for fiscal year 2025 shall 14 be such amount as the Secretary may by rule 15 provide, but in any event not less than $250. 16 (B) SUBSEQUENT ADJUSTMENT.—Begin- 17 ning in fiscal year 2026 and each fiscal year 18 thereafter, the amount specified in this sub- 19 section for a fiscal year shall be equal to the 20 sum of— 21 (i) the amount imposed under this 22 subsection for the prior fiscal year; and 23 (ii) the amount referred to in clause 24 (i), multiplied by the percentage (if any) by 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00498 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 499 •HR 1 RH which the Consumer Price Index for All 1 Urban Consumers for the month of July 2 preceding the date on which such adjust- 3 ment takes effect exceeds the Consumer 4 Price Index for All Urban Consumers for 5 the same month of the preceding calendar 6 year. 7 (c) CREDITING OF FUNDS.—During any fiscal year, 8 the total amount of fees received under this section shall 9 be credited as follows: 10 (1) 10 percent of fees received shall be credited 11 to the Department of State to retain and spend 12 without further appropriation to detect and prevent 13 fraud in the diversity immigrant visa program and 14 to offset costs associated with such program. 15 (2) 10 percent of fees received shall be credited 16 to U.S. Immigration and Customs Enforcement to 17 retain and spend without further appropriation for 18 the purpose of detention and immigration enforce- 19 ment and removal operations. 20 (3) Any amounts not credited under this sub- 21 section to the Department of State or U.S. Immigra- 22 tion and Customs Enforcement shall be credited as 23 offsetting receipts and deposited into the general 24 fund of the Treasury. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00499 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 500 •HR 1 RH (d) NO WAIVER.—A fee imposed under this section 1 shall not be waived or reduced. 2 SEC. 70016. EOIR FEES. 3 (a) FEE FOR FILING AN APPLICATION TO ADJUST 4 STATUS TO THAT OF A LAWFUL PERMANENT RESI- 5 DENT.— 6 (1) IN GENERAL.—In addition to any other fees 7 authorized by law, the Attorney General shall impose 8 on any alien who files with an immigration court an 9 application to adjust the alien’s status to that of a 10 lawful permanent resident, or whose application to 11 adjust status to that of a lawful permanent resident 12 is adjudicated in immigration court, a fee in the 13 amount specified in this subsection at the time such 14 application is filed, or, as applicable, prior to the ad- 15 judication of such application in immigration court. 16 (2) FEE SPECIFIED.— 17 (A) INITIAL AMOUNT.—The amount speci- 18 fied in this subsection for fiscal year 2025 shall 19 be such amount as the Attorney General may 20 by rule provide, but in any event not less than 21 $1,500. 22 (B) SUBSEQUENT ADJUSTMENT.—Begin- 23 ning in fiscal year 2026 and each fiscal year 24 thereafter, the amount specified in this sub- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00500 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 501 •HR 1 RH section for a fiscal year shall be equal to the 1 sum of— 2 (i) the amount imposed under this 3 subsection for the prior fiscal year; and 4 (ii) rounded to the next lowest mul- 5 tiple of $10, the amount referred to in 6 clause (i), multiplied by the percentage (if 7 any) by which the Consumer Price Index 8 for All Urban Consumers for the month of 9 July preceding the date on which such ad- 10 justment takes effect exceeds the Con- 11 sumer Price Index for All Urban Con- 12 sumers for the same month of the pre- 13 ceding calendar year. 14 (3) CREDITING CERTAIN FUNDS.—During any 15 fiscal year, not more than 50 percent of the total 16 amount of fees received under this section shall be 17 derived by transfer from the Immigration Examina- 18 tions Fee Account under section 286(n) of the Im- 19 migration and Nationality Act and credited to the 20 Executive Office for Immigration Review to retain 21 and spend without further appropriation. Any 22 amounts not credited under the previous sentence 23 shall be credited as offsetting receipts and deposited 24 into the general fund of the Treasury. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00501 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 502 •HR 1 RH (b) FEE FOR FILING AN APPLICATION FOR WAIVER 1 OF GROUNDS OF INADMISSIBILITY.— 2 (1) IN GENERAL.—In addition to any other fees 3 authorized by law, the Attorney General shall impose 4 on any alien who files with an immigration court an 5 application for waiver of grounds of inadmissibility, 6 or whose application for waiver of grounds of inad- 7 missibility is adjudicated in immigration court, a fee 8 in the amount specified in this subsection at the 9 time such application is filed, or, as applicable, prior 10 to the adjudication of such application in immigra- 11 tion court. 12 (2) FEE SPECIFIED.— 13 (A) INITIAL AMOUNT.—The amount speci- 14 fied in this subsection for fiscal year 2025 shall 15 be such amount as the Attorney General may 16 by rule provide, but in any event not less than 17 $1,050. 18 (B) SUBSEQUENT ADJUSTMENT.—Begin- 19 ning in fiscal year 2026 and each fiscal year 20 thereafter, the amount specified in this sub- 21 section for a fiscal year shall be equal to the 22 sum of— 23 (i) the amount imposed under this 24 subsection for the prior fiscal year; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00502 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 503 •HR 1 RH (ii) rounded to the next lowest mul- 1 tiple of $10, the amount referred to in 2 clause (i), multiplied by the percentage (if 3 any) by which the Consumer Price Index 4 for All Urban Consumers for the month of 5 July preceding the date on which such ad- 6 justment takes effect exceeds the Con- 7 sumer Price Index for All Urban Con- 8 sumers for the same month of the pre- 9 ceding calendar year. 10 (3) CREDITING CERTAIN FUNDS.—During any 11 fiscal year, not more than 25 percent of the total 12 amount of fees received under this section shall be 13 derived by transfer from the Immigration Examina- 14 tions Fee Account under section 286(n) of the Im- 15 migration and Nationality Act and credited to the 16 Executive Office for Immigration Review to retain 17 and spend without further appropriation. Any 18 amounts not credited under the previous sentence 19 shall be credited as offsetting receipts and deposited 20 into the general fund of the Treasury. 21 (c) FEE FOR FILING AN APPLICATION FOR TEM- 22 PORARY PROTECTED STATUS.— 23 (1) IN GENERAL.—In addition to any other fees 24 authorized by law, the Attorney General shall impose 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00503 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 504 •HR 1 RH on any alien who files with an immigration court an 1 application for temporary protected status, or whose 2 application for temporary protected status is adju- 3 dicated in immigration court, a fee in the amount 4 specified in this subsection at the time such applica- 5 tion is filed or, as applicable, prior to the adjudica- 6 tion of such application in immigration court. 7 (2) FEE SPECIFIED.— 8 (A) INITIAL AMOUNT.—The amount speci- 9 fied in this subsection for fiscal year 2025 shall 10 be such amount as the Attorney General may 11 by rule provide, but in any event not less than 12 $500. 13 (B) SUBSEQUENT ADJUSTMENT.—Begin- 14 ning in fiscal year 2026 and each fiscal year 15 thereafter, the amount specified in this sub- 16 section for a fiscal year shall be equal to the 17 sum of— 18 (i) the amount imposed under this 19 subsection for the prior fiscal year; and 20 (ii) rounded to the next lowest mul- 21 tiple of $10, the amount referred to in 22 clause (i), multiplied by the percentage (if 23 any) by which the Consumer Price Index 24 for All Urban Consumers for the month of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00504 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 505 •HR 1 RH July preceding the date on which such ad- 1 justment takes effect exceeds the Con- 2 sumer Price Index for All Urban Con- 3 sumers for the same month of the pre- 4 ceding calendar year. 5 (3) CREDITING CERTAIN FUNDS.—During any 6 fiscal year, not more than 25 percent of the total 7 amount of fees received under this section shall be 8 derived by transfer from the Immigration Examina- 9 tions Fee Account under section 286(n) of the Im- 10 migration and Nationality Act and credited to the 11 Executive Office for Immigration Review to retain 12 and spend without further appropriation. Any 13 amounts not credited under the previous sentence 14 shall be credited as offsetting receipts and deposited 15 into the general fund of the Treasury. 16 (d) FEE FOR FILING AN APPEAL FROM A DECISION 17 OF AN IMMIGRATION JUDGE.— 18 (1) IN GENERAL.—In addition to any other fees 19 authorized by law, the Attorney General shall impose 20 on any alien who files any appeal from a decision of 21 an immigration judge a fee in the amount specified 22 in this subsection at the time such appeal is filed. 23 (2) FEE SPECIFIED.— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00505 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 506 •HR 1 RH (A) INITIAL AMOUNT.—The amount speci- 1 fied in this subsection for fiscal year 2025 shall 2 be such amount as the Attorney General may 3 by rule provide, but in any event not less than 4 $900. 5 (B) SUBSEQUENT ADJUSTMENT.—Begin- 6 ning in fiscal year 2026 and each fiscal year 7 thereafter, the amount specified in this sub- 8 section for a fiscal year shall be equal to the 9 sum of— 10 (i) the amount imposed under this 11 subsection for the prior fiscal year; and 12 (ii) rounded to the next lowest mul- 13 tiple of $10, the amount referred to in 14 clause (i), multiplied by the percentage (if 15 any) by which the Consumer Price Index 16 for All Urban Consumers for the month of 17 July preceding the date on which such ad- 18 justment takes effect exceeds the Con- 19 sumer Price Index for All Urban Con- 20 sumers for the same month of the pre- 21 ceding calendar year. 22 (3) EXCEPTION.—The fee described in this sec- 23 tion shall not apply to the appeal of a bond decision. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00506 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 507 •HR 1 RH (4) CREDITING CERTAIN FUNDS.—During any 1 fiscal year, not more than 25 percent of the total 2 amount of fees received under this section shall be 3 derived by transfer from the Immigration Examina- 4 tions Fee Account under section 286(n) of the Im- 5 migration and Nationality Act and credited to the 6 Executive Office for Immigration Review to retain 7 and spend without further appropriation. Any 8 amounts not credited under the previous sentence 9 shall be credited as offsetting receipts and deposited 10 into the general fund of the Treasury. 11 (e) FEE FOR FILING AN APPEAL FROM A DECISION 12 OF AN OFFICER OF THE DEPARTMENT OF HOMELAND 13 SECURITY.— 14 (1) IN GENERAL.—In addition to any other fees 15 authorized by law, the Attorney General shall impose 16 on any alien who files an appeal from a decision of 17 an officer of the Department of Homeland Security 18 a fee in the amount specified in this subsection at 19 the time such appeal is filed. 20 (2) FEE SPECIFIED.— 21 (A) INITIAL AMOUNT.—The amount speci- 22 fied in this subsection for fiscal year 2025 shall 23 be such amount as the Attorney General may 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00507 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 508 •HR 1 RH by rule provide, but in any event not less than 1 $900. 2 (B) SUBSEQUENT ADJUSTMENT.—Begin- 3 ning in fiscal year 2026 and each fiscal year 4 thereafter, the amount specified in this sub- 5 section for a fiscal year shall be equal to the 6 sum of— 7 (i) the amount imposed under this 8 subsection for the prior fiscal year; and 9 (ii) rounded to the next lowest mul- 10 tiple of $10, the amount referred to in 11 clause (i), multiplied by the percentage (if 12 any) by which the Consumer Price Index 13 for All Urban Consumers for the month of 14 July preceding the date on which such ad- 15 justment takes effect exceeds the Con- 16 sumer Price Index for All Urban Con- 17 sumers for the same month of the pre- 18 ceding calendar year. 19 (3) CREDITING CERTAIN FUNDS.—During any 20 fiscal year, not more than 25 percent of the total 21 amount of fees received under this section shall be 22 derived by transfer from the Immigration Examina- 23 tions Fee Account under section 286(n) of Immigra- 24 tion and Nationality and credited to the Executive 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00508 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 509 •HR 1 RH Office for Immigration Review to retain and spend 1 without further appropriation. Any amounts not 2 credited under the previous sentence shall be cred- 3 ited as offsetting receipts and deposited into the 4 general fund of the Treasury. 5 (f) FEE FOR FILING AN APPEAL FROM A DECISION 6 OF AN ADJUDICATING OFFICIAL IN A PRACTITIONER DIS- 7 CIPLINARY CASE.— 8 (1) IN GENERAL.—In addition to any other fees 9 authorized by law, the Attorney General shall impose 10 on any practitioner who files an appeal from a deci- 11 sion of an adjudicating official in a practitioner dis- 12 ciplinary case a fee in the amount specified in this 13 subsection at the time such appeal is filed. 14 (2) FEE SPECIFIED.— 15 (A) INITIAL AMOUNT.—The amount speci- 16 fied in this subsection for fiscal year 2025 shall 17 be such amount as the Attorney General may 18 by rule provide, but in any event not less than 19 $1,325. 20 (B) SUBSEQUENT ADJUSTMENT.—Begin- 21 ning in fiscal year 2026 and each fiscal year 22 thereafter, the amount specified in this sub- 23 section for a fiscal year shall be equal to the 24 sum of— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00509 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 510 •HR 1 RH (i) the amount imposed under this 1 subsection for the prior fiscal year; and 2 (ii) rounded to the next lowest mul- 3 tiple of $10, the amount referred to in 4 clause (i), multiplied by the percentage (if 5 any) by which the Consumer Price Index 6 for All Urban Consumers for the month of 7 July preceding the date on which such ad- 8 justment takes effect exceeds the Con- 9 sumer Price Index for All Urban Con- 10 sumers for the same month of the pre- 11 ceding calendar year. 12 (3) CREDITING CERTAIN FUNDS.—During any 13 fiscal year, not more than 25 percent of the total 14 amount of fees received under this section shall be 15 derived by transfer from the Immigration Examina- 16 tions Fee Account under section 286(n) of the Im- 17 migration and Nationality Act and credited to the 18 Executive Office for Immigration Review to retain 19 and spend without further appropriation. Any 20 amounts not credited under the previous sentence 21 shall be credited as offsetting receipts and deposited 22 into the general fund of the Treasury. 23 (g) FEE FOR FILING A MOTION TO REOPEN OR A 24 MOTION TO RECONSIDER.— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00510 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 511 •HR 1 RH (1) IN GENERAL.—In addition to any other fees 1 authorized by law, the Attorney General shall impose 2 on any alien who files a motion to reopen or motion 3 to reconsider a decision of an immigration judge or 4 the Board of Immigration Appeals a fee in the 5 amount specified in this subsection at the time such 6 motion is filed. 7 (2) FEE SPECIFIED.— 8 (A) INITIAL AMOUNT.—The amount speci- 9 fied in this subsection for fiscal year 2025 shall 10 be such amount as the Attorney General may 11 by rule provide, but in any event not less than 12 $900. 13 (B) SUBSEQUENT ADJUSTMENT.—Begin- 14 ning in fiscal year 2026 and each fiscal year 15 thereafter, the amount specified in this sub- 16 section for a fiscal year shall be equal to the 17 sum of— 18 (i) the amount imposed under this 19 subsection for the prior fiscal year; and 20 (ii) rounded to the next lowest mul- 21 tiple of $10, the amount referred to in 22 clause (i), multiplied by the percentage (if 23 any) by which the Consumer Price Index 24 for All Urban Consumers for the month of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00511 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 512 •HR 1 RH July preceding the date on which such ad- 1 justment takes effect exceeds the Con- 2 sumer Price Index for All Urban Con- 3 sumers for the same month of the pre- 4 ceding calendar year. 5 (3) EXCEPTIONS.—The fee described in this 6 section shall not apply to any motion that is: 7 (A) a motion to reopen a removal order en- 8 tered in absentia if the motion is filed under 9 section 240(b)(5)(C)(ii) of the Immigration and 10 Nationality Act; or 11 (B) a motion to reopen a deportation order 12 entered in absentia if the motion is filed under 13 section 242B(c)(3)(B) of the Immigration and 14 Nationality Act, as the section existed prior to 15 April 1, 1997. 16 (4) CREDITING CERTAIN FUNDS.—During any 17 fiscal year, not more than 25 percent of the total 18 amount of fees received under this section shall be 19 derived by transfer from the Immigration Examina- 20 tions Fee Account under section 286(n) of the Im- 21 migration and Nationality Act and credited to the 22 Executive Office for Immigration Review to retain 23 and spend without further appropriation. Any 24 amounts not credited under the previous sentence 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00512 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 513 •HR 1 RH shall be credited as offsetting receipts and deposited 1 into the general fund of the Treasury. 2 (h) FEE FOR FILING AN APPLICATION FOR SUSPEN- 3 SION OF DEPORTATION.— 4 (1) IN GENERAL.—In addition to any other fees 5 authorized by law, the Attorney General shall impose 6 on any alien who files with an immigration court an 7 application for suspension of deportation a fee in the 8 amount specified in this subsection at the time such 9 application is filed. 10 (2) FEE SPECIFIED.— 11 (A) INITIAL AMOUNT.—The amount speci- 12 fied in this subsection for fiscal year 2025 shall 13 be such amount as the Attorney General may 14 by rule provide, but in any event not less than 15 $600. 16 (B) SUBSEQUENT ADJUSTMENT.—Begin- 17 ning in fiscal year 2026 and each fiscal year 18 thereafter, the amount specified in this sub- 19 section for a fiscal year shall be equal to the 20 sum of— 21 (i) the amount imposed under this 22 subsection for the prior fiscal year; and 23 (ii) rounded to the next lowest mul- 24 tiple of $10, the amount referred to in 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00513 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 514 •HR 1 RH clause (i), multiplied by the percentage (if 1 any) by which the Consumer Price Index 2 for All Urban Consumers for the month of 3 July preceding the date on which such ad- 4 justment takes effect exceeds the Con- 5 sumer Price Index for All Urban Con- 6 sumers for the same month of the pre- 7 ceding calendar year. 8 (3) CREDITING CERTAIN FUNDS.—During any 9 fiscal year, not more than 25 percent of the total 10 amount of fees received under this section shall be 11 derived by transfer from the Immigration Examina- 12 tions Fee Account under section 286(n) of the Im- 13 migration and Nationality Act and credited to the 14 Executive Office for Immigration Review to retain 15 and spend without further appropriation. Any 16 amounts not credited under the previous sentence 17 shall be credited as offsetting receipts and deposited 18 into the general fund of the Treasury. 19 (i) FEE FOR FILING AN APPLICATION FOR CAN- 20 CELLATION OF REMOVAL FOR CERTAIN PERMANENT 21 RESIDENTS.— 22 (1) IN GENERAL.—In addition to any other fees 23 authorized by law, the Attorney General shall impose 24 on any alien who files with an immigration court an 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00514 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 515 •HR 1 RH application for cancellation of removal for certain 1 permanent residents a fee in the amount specified in 2 this subsection at the time such application is filed. 3 (2) FEE SPECIFIED.— 4 (A) INITIAL AMOUNT.—The amount speci- 5 fied in this subsection for fiscal year 2025 shall 6 be such amount as the Attorney General may 7 by rule provide, but in any event not less than 8 $600. 9 (B) SUBSEQUENT ADJUSTMENT.—Begin- 10 ning in fiscal year 2026 and each fiscal year 11 thereafter, the amount specified in this sub- 12 section for a fiscal year shall be equal to the 13 sum of— 14 (i) the amount imposed under this 15 subsection for the prior fiscal year; and 16 (ii) rounded to the next lowest mul- 17 tiple of $10, the amount referred to in 18 clause (i), multiplied by the percentage (if 19 any) by which the Consumer Price Index 20 for All Urban Consumers for the month of 21 July preceding the date on which such ad- 22 justment takes effect exceeds the Con- 23 sumer Price Index for All Urban Con- 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00515 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 516 •HR 1 RH sumers for the same month of the pre- 1 ceding calendar year. 2 (3) CREDITING CERTAIN FUNDS.—During any 3 fiscal year, not more than 25 percent of the total 4 amount of fees received under this section shall be 5 derived by transfer from the Immigration Examina- 6 tions Fee Account under section 286(n) of the Im- 7 migration and Nationality Act and credited to the 8 Executive Office for Immigration Review to retain 9 and spend without further appropriation. Any 10 amounts not credited under the previous sentence 11 shall be credited as offsetting receipts and deposited 12 into the general fund of the Treasury. 13 (j) FEE FOR FILING AN APPLICATION FOR CAN- 14 CELLATION OF REMOVAL AND ADJUSTMENT OF STATUS 15 FOR CERTAIN NONPERMANENT RESIDENTS.— 16 (1) IN GENERAL.—In addition to any other fees 17 authorized by law, the Attorney General shall impose 18 on any alien who files with an immigration court an 19 application for cancellation of removal and adjust- 20 ment of status for certain nonpermanent residents a 21 fee in the amount specified in this subsection at the 22 time such application is filed. 23 (2) FEE SPECIFIED.— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00516 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 517 •HR 1 RH (A) INITIAL AMOUNT.—The amount speci- 1 fied in this subsection for fiscal year 2025 shall 2 be such amount as the Attorney General may 3 by rule provide, but in any event not less than 4 $1,500. 5 (B) SUBSEQUENT ADJUSTMENT.—Begin- 6 ning in fiscal year 2026 and each fiscal year 7 thereafter, the amount specified in this sub- 8 section for a fiscal year shall be equal to the 9 sum of— 10 (i) the amount imposed under this 11 subsection for the prior fiscal year; and 12 (ii) rounded to the next lowest mul- 13 tiple of $10, the amount referred to in 14 clause (i), multiplied by the percentage (if 15 any) by which the Consumer Price Index 16 for All Urban Consumers for the month of 17 July preceding the date on which such ad- 18 justment takes effect exceeds the Con- 19 sumer Price Index for All Urban Con- 20 sumers for the same month of the pre- 21 ceding calendar year. 22 (3) CREDITING CERTAIN FUNDS.—During any 23 fiscal year, not more than 25 percent of the total 24 amount of fees received under this section shall be 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00517 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 518 •HR 1 RH derived by transfer from the Immigration Examina- 1 tions Fee Account under section 286(n) of the Im- 2 migration and Nationality Act and credited to the 3 Executive Office for Immigration Review to retain 4 and spend without further appropriation. Any 5 amounts not credited under the previous sentence 6 shall be credited as offsetting receipts and deposited 7 into the general fund of the Treasury. 8 (k) NO WAIVER.—Any fee imposed under this section 9 shall not be waived or reduced. 10 (l) CONDITION ON FUNDS.—No fees received under 11 this section shall be used to fund the Legal Orientation 12 Program or any successor program. 13 SEC. 70017. ESTA FEE. 14 Section 217(h)(3)(B) of the Immigration and Nation- 15 ality Act (8 U.S.C. 1187(h)(3)(B)) is amended— 16 (1) in clause (i)— 17 (A) in subclause (I), by striking ‘‘and’’ at 18 the end; 19 (B) in subclause (II)— 20 (i) by inserting after ‘‘an amount’’ the 21 following ‘‘of not less than $10’’; and 22 (ii) by striking the period at the end 23 and inserting ‘‘; and’’; and 24 (C) by adding at the end the following: 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00518 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 519 •HR 1 RH ‘‘(III) not less than $13.’’; 1 (2) in clause (ii)— 2 (A) by striking ‘‘Amounts collected under 3 clause (i)(I)’’ and inserting the following: 4 ‘‘(I) IN GENERAL.—Notwith- 5 standing any other provision of law, of 6 the amounts collected under clause 7 (i)(I) during a fiscal year, not more 8 than $20,000,000’’; 9 (B) by inserting before the period at the 10 end of the first sentence the following: ‘‘, and 11 the remainder of the amounts collected under 12 clause (i)(I) shall be credited as offsetting re- 13 ceipts and deposited in the general fund of the 14 Treasury’’; and 15 (C) by inserting after ‘‘to pay the costs in- 16 curred to administer the System.’’ the fol- 17 lowing: ‘‘Amounts collected under clause (i)(III) 18 shall be credited as offsetting receipts and de- 19 posited in the general fund of the Treasury.’’; 20 (3) in clause (iii), by striking ‘‘2028’’ and in- 21 serting ‘‘2034’’; and 22 (4) by adding at the end the following: 23 ‘‘(iv) SUBSEQUENT ADJUSTMENT.— 24 Beginning in fiscal year 2026 and each fis- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00519 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 520 •HR 1 RH cal year thereafter, the amount specified in 1 clause (i)(II) for a fiscal year shall be 2 equal to the sum of— 3 ‘‘(I) the amount imposed under 4 this subsection for the prior fiscal 5 year; and 6 ‘‘(II) the amount referred to in 7 subclause (I), multiplied by the per- 8 centage (if any) by which the Con- 9 sumer Price Index for All Urban Con- 10 sumers for the month of July pre- 11 ceding the date on which such adjust- 12 ment takes effect exceeds the Con- 13 sumer Price Index for All Urban Con- 14 sumers for the same month of the 15 preceding calendar year.’’. 16 SEC. 70018. IMMIGRATION USER FEES. 17 Section 286 of the Immigration and Nationality Act 18 (8 U.S.C. 1356) is amended— 19 (1) in subsection (d)— 20 (A) by striking ‘‘In addition to any other 21 fee’’ and inserting the following: 22 ‘‘(1) IN GENERAL.—In addition to any other 23 fee’’; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00520 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 521 •HR 1 RH (B) by inserting ‘‘and except as provided 1 in subsection (e),’’ before ‘‘the Attorney General 2 shall charge and collect’’; 3 (C) by striking ‘‘$7’’ and inserting ‘‘a fee 4 in an amount specified in paragraph (2)’’; and 5 (D) by adding at the end the following: 6 ‘‘(2) INITIAL AMOUNT.—For purposes of this 7 section, the amount specified in this section for fis- 8 cal year 2025 shall be not less than $10. 9 ‘‘(3) SUBSEQUENT ADJUSTMENT.—Beginning 10 in fiscal year 2026 and each fiscal year thereafter, 11 the amount specified in this subsection for a fiscal 12 year shall be equal to the sum of— 13 ‘‘(A) the amount imposed under this sub- 14 section for the prior fiscal year; and 15 ‘‘(B) rounded to the next lowest multiple 16 of $0.25, the amount referred to in subpara- 17 graph (A), multiplied by the percentage (if any) 18 by which the Consumer Price Index for All 19 Urban Consumers for the month of July pre- 20 ceding the date on which such adjustment takes 21 effect exceeds the Consumer Price Index for All 22 Urban Consumers for the same month of the 23 preceding calendar year. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00521 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 522 •HR 1 RH ‘‘(4) CREDITING OF AMOUNTS.—Of amounts 1 collected under this subsection $1 per individual for 2 immigration inspection or preinspection as described 3 in this subsection shall be credited as offsetting re- 4 ceipts and deposited in the general fund of the 5 Treasury. 6 ‘‘(5) NO WAIVER.—A fee imposed under this 7 subsection shall not be waived or reduced.’’; and 8 (2) in subsection (e)— 9 (A) by striking paragraph (1); 10 (B) by redesignating paragraphs (2) and 11 (3) as paragraphs (1) and (2); and 12 (C) in paragraph (2) (as redesignated by 13 subparagraph (B) above), by striking ‘‘The At- 14 torney General shall charge’’ and all that fol- 15 lows through ‘‘this requirement shall not apply 16 to’’ and inserting the following: ‘‘No fee shall be 17 charged under subsection (d) for’’. 18 SEC. 70019. EVUS FEE. 19 (a) IN GENERAL.— In addition to any other fee au- 20 thorized by law, the Secretary of Homeland Security shall 21 impose on any alien subject to the Electronic Visa Update 22 System a fee in the amount specified in this section at 23 the time of such alien’s enrollment in the Electronic Visa 24 Update System. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00522 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 523 •HR 1 RH (b) AMOUNT.—For purposes of this section, the 1 amount specified in this section for fiscal year 2025 shall 2 be such amount as the Secretary may by rule provide, but 3 in any event not less than $30. 4 (c) SUBSEQUENT ADJUSTMENT.—Beginning in fiscal 5 year 2026 and each fiscal year thereafter, the amount 6 specified in this section for a fiscal year shall be equal 7 to the sum of— 8 (1) the amount imposed under this section for 9 the prior fiscal year; and 10 (2) rounded to the next lowest multiple of 11 $0.25, the amount referred to in paragraph (1), 12 multiplied by the percentage (if any) by which the 13 Consumer Price Index for All Urban Consumers for 14 the month of July preceding the date on which such 15 adjustment takes effect exceeds the Consumer Price 16 Index for All Urban Consumers for the same month 17 of the preceding calendar year. 18 (d) CREDITING OF FUNDS.— 19 (1) IN GENERAL.—The fees received under this 20 section shall be deposited into the CBP Electronic 21 Visa Update System Account, less $5 per enrollment 22 which shall be credited as offsetting receipts and de- 23 posited into the general fund of the Treasury. 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00523 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 524 •HR 1 RH (2) ESTABLISHMENT.—Notwithstanding any 1 other provision of law, there is hereby established in 2 the Treasury of the United States a separate ac- 3 count which shall be known as the ‘‘CBP Electronic 4 Visa Update System Account’’. 5 (3) APPROPRIATION.— Amounts deposited in 6 the CBP Electronic Visa Update System Account 7 are hereby appropriated to make payments and off- 8 set program costs as specified in this section without 9 further appropriation necessary and shall remain 10 available until expended for any U.S. Customs and 11 Border Protection costs associated with admin- 12 istering the Electronic Visa Update System. 13 (e) NO WAIVER.—A fee imposed under this section 14 shall not be waived or reduced. 15 SEC. 70020. FEE FOR SPONSOR OF UNACCOMPANIED ALIEN 16 CHILD WHO FAILS TO APPEAR IN IMMIGRA- 17 TION COURT. 18 (a) FEE IMPOSED.—In addition to any other fee au- 19 thorized by law, for the sponsor of an unaccompanied alien 20 child, the Secretary of Health and Human Services shall 21 impose a fee in an amount specified in subsection (b) prior 22 to the unaccompanied alien child’s release to such sponsor. 23 (b) FEE SPECIFIED.— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00524 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 525 •HR 1 RH (1) INITIAL AMOUNT.—The amount specified in 1 this subsection for fiscal year 2025 shall be such 2 amount as the Secretary may by rule provide, but in 3 any event not less than $5,000. 4 (2) SUBSEQUENT ADJUSTMENT.—Beginning in 5 fiscal year 2026 and each fiscal year thereafter, the 6 amount specified in this subsection for a fiscal year 7 shall be equal to the sum of— 8 (A) the amount imposed under this sub- 9 section for the prior fiscal year; and 10 (B) rounded to the next lowest multiple of 11 $10, the amount referred to in subparagraph 12 (A), multiplied by the percentage (if any) by 13 which the Consumer Price Index for All Urban 14 Consumers for the month of July preceding the 15 date on which such adjustment takes effect ex- 16 ceeds the Consumer Price Index for All Urban 17 Consumers for the same month of the preceding 18 calendar year. 19 (c) FEE REIMBURSEMENT.—At the conclusion of an 20 unaccompanied alien child’s immigration court pro- 21 ceedings as an unaccompanied alien child, or upon the 22 ending of such sponsor’s sponsorship of such unaccom- 23 panied alien child, the Secretary of Health and Human 24 Services may reimburse to a sponsor a fee imposed under 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00525 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 526 •HR 1 RH this section if such sponsor demonstrates that the unac- 1 companied alien child in the care of such sponsor was not 2 ordered removed in absentia under section 240(b)(5) of 3 the Immigration and Nationality Act. In the case of a 4 sponsor of an unaccompanied alien child who was ordered 5 removed in absentia and such order was rescinded under 6 section 240(b)(5)(C) of the Immigration and Nationality 7 Act, the sponsor may seek reimbursement of the fee under 8 this section. 9 (d) CREDITING OF FUNDS.—The fees received under 10 this section shall be credited as offsetting receipts and de- 11 posited into the general fund of the Treasury. 12 (e) NO WAIVER.—A fee imposed under this sub- 13 section shall not be waived or reduced. 14 SEC. 70021. FEE FOR ALIENS ORDERED REMOVED IN 15 ABSENTIA. 16 (a) IN GENERAL .—As partial reimbursement for the 17 cost of arresting an alien described in this section, the Sec- 18 retary of Homeland Security shall impose a fee in an 19 amount specified in this section on any alien who— 20 (1) is ordered removed in absentia under sec- 21 tion 240(b)(5) of the Immigration and Nationality 22 Act (8 U.S.C. 1229a(b)(5)); and 23 (2) is subsequently arrested by U.S. Immigra- 24 tion and Customs Enforcement. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00526 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 527 •HR 1 RH (b) INITIAL AMOUNT.—For purposes of this sub- 1 section, the amount specified in this subsection for fiscal 2 year 2025 shall be such amount as the Secretary may by 3 rule provide, but in any event not less than $5,000. 4 (c) SUBSEQUENT ADJUSTMENT.—Beginning in fiscal 5 year 2026 and each fiscal year thereafter, the amount for 6 a fiscal year shall be equal to the sum of— 7 (1) the amount imposed under this section for 8 the prior fiscal year; and 9 (2) rounded to the next lowest multiple of $10, 10 the amount referred to in paragraph (1), multiplied 11 by the percentage (if any) by which the Consumer 12 Price Index for All Urban Consumers for the month 13 of July preceding the date on which such adjustment 14 takes effect exceeds the Consumer Price Index for 15 All Urban Consumers for the same month of the 16 preceding calendar year. 17 (d) CREDITING OF FUNDS.—The fees received under 18 this section shall be credited as offsetting receipts and de- 19 posited into the general fund of the Treasury. 20 (e) NO WAIVER.—A fee imposed under this sub- 21 section shall not be waived or reduced. 22 (f) EXCEPTION.—The fee described in this section 23 shall not apply to any alien who was ordered removed in 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00527 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 528 •HR 1 RH absentia if such order was rescinded under section 1 240(b)(5)(C) of the Immigration and Nationality Act. 2 SEC. 70022. CUSTOMS AND BORDER PROTECTION INADMIS- 3 SIBLE ALIEN APPREHENSION FEE. 4 (a) FEE IMPOSED.—In addition to any other fee au- 5 thorized by law, for any inadmissible alien who is appre- 6 hended between ports of entry by U.S. Customs and Bor- 7 der Protection, the Secretary of Homeland Security shall 8 impose a fee in an amount specified in subsection (b) at 9 the time of such apprehension. 10 (b) FEE SPECIFIED.— 11 (1) INITIAL AMOUNT.—The amount specified in 12 this subsection for fiscal year 2025 shall be such 13 amount as the Secretary may by rule provide, but in 14 any event not less than $5,000. 15 (2) SUBSEQUENT ADJUSTMENT.—Beginning in 16 fiscal year 2026 and each fiscal year thereafter, the 17 amount specified in this subsection for a fiscal year 18 shall be equal to the sum of— 19 (A) the amount imposed under this sub- 20 section for the prior fiscal year; and 21 (B) rounded to the next lowest multiple of 22 $10, the amount referred to in subparagraph 23 (A), multiplied by the percentage (if any) by 24 which the Consumer Price Index for All Urban 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00528 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 529 •HR 1 RH Consumers for the month of July preceding the 1 date on which such adjustment takes effect ex- 2 ceeds the Consumer Price Index for All Urban 3 Consumers for the same month of the preceding 4 calendar year. 5 (c) CREDITING OF FUNDS.—The fees received under 6 this section shall be credited as offsetting receipts and de- 7 posited into the general fund of the Treasury. 8 (d) NO WAIVER.—A fee imposed under this section 9 shall not be waived or reduced. 10 SEC. 70023. AMENDMENT TO AUTHORITY TO APPLY FOR 11 ASYLUM. 12 Section 208(d)(3) of the Immigration and Nationality 13 Act (8 U.S.C. 1158(d)(3)) is amended— 14 (1) in the first sentence, by striking ‘‘may’’ and 15 inserting ‘‘shall’’; 16 (2) by striking ‘‘Such fees shall not exceed’’ and 17 all that follows; and 18 (3) by inserting after the first sentence ‘‘Noth- 19 ing in this paragraph shall be construed to limit the 20 authority of the Attorney General to set additional 21 adjudication and naturalization fees in accordance 22 with section 286(m).’’. 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00529 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 530 •HR 1 RH PART 2—USE OF FUNDS 1 SEC. 70100. EXECUTIVE OFFICE FOR IMMIGRATION RE- 2 VIEW. 3 (a) APPROPRIATION.—In addition to amounts other- 4 wise available, there is appropriated to the Executive Of- 5 fice for Immigration Review for fiscal year 2025, out of 6 any money in the Treasury not otherwise appropriated, 7 $1,250,000,000 to remain available until September 30, 8 2029, for the purposes described in subsection (b). 9 (b) USE OF FUNDS.—Amounts made available under 10 subsection (a) shall only be used for purposes of— 11 (1) hiring the support staff necessary to sup- 12 port immigration judges; 13 (2) hiring immigration judges; and 14 (3) expanding courtroom capacity and infra- 15 structure. 16 SEC. 70101. ADULT ALIEN DETENTION CAPACITY AND FAM- 17 ILY RESIDENTIAL CENTERS. 18 (a) APPROPRIATION.—In addition to amounts other- 19 wise available, there is appropriated to U.S. Immigration 20 and Customs Enforcement for fiscal year 2025, out of any 21 money in the Treasury not otherwise appropriated, 22 $45,000,000,000 to remain available until September 30, 23 2029, for the purposes described in subsection (b). 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00530 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 531 •HR 1 RH (b) USE OF FUNDS.—Amounts made available under 1 subsection (a) shall only be used for family residential cen- 2 ter capacity and single adult alien detention capacity. 3 (c) DURATION.—The Department of Homeland Secu- 4 rity may detain family units of aliens at family residential 5 centers, as described in subsections (b) and (d), pending 6 a decision on whether the aliens are to be removed from 7 the United States and, if such aliens are ordered removed 8 from the United States, until such aliens are removed. 9 (d) FAMILY RESIDENTIAL CENTER DEFINED.—In 10 this section, the term ‘‘family residential center’’ means 11 a facility used by the Department of Homeland Security 12 to detain family units of aliens (including alien children 13 who are not unaccompanied alien children) who are en- 14 countered or apprehended by the Department of Home- 15 land Security, regardless of whether the facility is licensed 16 by the State or a political subdivision of the State in which 17 the facility is located. 18 (e) DETENTION STANDARDS.—To efficiently utilize 19 the funding appropriated by this section, the detention 20 standards for the single adult detention capacity described 21 in subsection (b) shall be set in the sole discretion of the 22 Secretary of Homeland Security. 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00531 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 532 •HR 1 RH SEC. 70102. RETENTION AND SIGNING BONUSES FOR U.S. 1 IMMIGRATION AND CUSTOMS ENFORCEMENT 2 PERSONNEL. 3 (a) APPROPRIATION.—In addition to amounts other- 4 wise available, there is appropriated to U.S. Immigration 5 and Customs Enforcement for fiscal year 2025, out of any 6 money in the Treasury not otherwise appropriated, 7 $858,000,000 to remain available until September 30, 8 2029, for the purposes described in subsections (b) and 9 (c). 10 (b) RETENTION BONUSES.—U.S. Immigration and 11 Customs Enforcement may provide retention bonuses to 12 any U.S. Immigration and Customs Enforcement agent, 13 officer, or attorney who commits to two years of additional 14 service with U.S. Immigration and Customs Enforcement 15 to carry out immigration enforcement. 16 (c) SIGNING BONUSES.—U.S. Immigration and Cus- 17 toms Enforcement shall provide a signing bonus to each 18 U.S. Immigration and Customs Enforcement agent, offi- 19 cer, or attorney who is hired on or after the date of enact- 20 ment of this Act and who commits to five years of service 21 with U.S. Immigration and Customs Enforcement to carry 22 out immigration enforcement. 23 (d) RULES FOR BONUSES.—U.S. Customs and Immi- 24 gration Enforcement shall provide qualifying individuals 25 with written service agreements that include— 26 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00532 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 533 •HR 1 RH (1) the commencement and termination dates of 1 the required service period (or provisions for the de- 2 termination thereof); 3 (2) the amount of the bonus; and 4 (3) other terms and conditions under which the 5 bonus is payable, subject to the requirements of this 6 subsection, including— 7 (A) the conditions under which the agree- 8 ment may be terminated before the agreed-upon 9 service period has been completed; and 10 (B) the effect of a termination described in 11 subparagraph (A). 12 SEC. 70103. HIRING OF ADDITIONAL U.S. IMMIGRATION AND 13 CUSTOMS ENFORCEMENT PERSONNEL. 14 (a) APPROPRIATION.—In addition to amounts other- 15 wise available, there is appropriated to U.S. Immigration 16 and Customs Enforcement for fiscal year 2025, out of any 17 money in the Treasury not otherwise appropriated, 18 $8,000,000,000, to remain available until September 30, 19 2029, for the purposes described in subsection (b). 20 (b) USE OF FUNDS.—Amounts made available under 21 subsection (a) shall only be used to hire additional per- 22 sonnel of U.S. Immigration and Customs Enforcement, in- 23 cluding officers, agents, and support staff, to carry out 24 immigration enforcement, and to prioritize and streamline 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00533 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 534 •HR 1 RH the hiring of retired U.S. Immigration and Customs En- 1 forcement personnel. There shall be a minimum of— 2 (1) 2,500 individuals hired in fiscal year 2025; 3 (2) 1,875 individuals hired in 2026; 4 (3) 1,875 individuals hired in 2027; 5 (4) 1,875 individuals hired in 2028; and 6 (5) 1,875 individuals hired in 2029. 7 SEC. 70104. U.S. IMMIGRATION AND CUSTOMS ENFORCE- 8 MENT HIRING CAPABILITY. 9 (a) APPROPRIATION.—In addition to amounts other- 10 wise available, there is appropriated to U.S. Immigration 11 and Customs Enforcement for fiscal year 2025, out of any 12 money in the Treasury not otherwise appropriated, 13 $600,000,000, to remain available until September 30, 14 2029, for the purpose described in subsection (b). 15 (b) USE OF FUNDS.—The funds made available 16 under subsection (a) shall only be used for the purpose 17 of facilitating the recruitment, hiring, and onboarding of 18 additional U.S. Immigration and Customs Enforcement 19 personnel to carry out immigration enforcement, including 20 by investments in information technology, recruitment, 21 marketing, and staff necessary for such activities. 22 SEC. 70105. TRANSPORTATION AND REMOVAL OPERATIONS. 23 (a) APPROPRIATION.—In addition to amounts other- 24 wise available, there is appropriated to U.S. Immigration 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00534 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 535 •HR 1 RH and Customs Enforcement for fiscal year 2025, out of any 1 money in the Treasury not otherwise appropriated, 2 $14,400,000,000, to remain available until September 30, 3 2029, for the purposes described in subsection (b). 4 (b) USE OF FUNDS.—Amounts made available under 5 subsection (a) shall only be used for transportation and 6 removal operations, including transportation of unaccom- 7 panied alien children, and for ensuring the departure of 8 aliens. 9 SEC. 70106. INFORMATION TECHNOLOGY INVESTMENTS. 10 (a) APPROPRIATION.—In addition to amounts other- 11 wise available, there is appropriated to U.S. Immigration 12 and Customs Enforcement for fiscal year 2025, out of any 13 money in the Treasury not otherwise appropriated, 14 $700,000,000 to remain available until September 30, 15 2029, for the purposes described in subsection (b). 16 (b) USE OF FUNDS.—Amounts made available under 17 subsection (a) shall only be used for U.S. Immigration and 18 Customs Enforcement information technology investments 19 to support enforcement and removal operations, including 20 to streamline fine and penalty collections. 21 SEC. 70107. FACILITIES UPGRADES. 22 (a) APPROPRIATION.—In addition to amounts other- 23 wise available, there is appropriated to U.S. Immigration 24 and Customs Enforcement for fiscal year 2025, out of any 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00535 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 536 •HR 1 RH money in the Treasury not otherwise appropriated, 1 $550,000,000 to remain available until September 30, 2 2029, for the purposes described in subsection (b). 3 (b) USE OF FUNDS.—Amounts made available under 4 subsection (a) shall only be used for U.S. Immigration and 5 Customs Enforcement facility upgrades to support en- 6 forcement and removal operations. 7 SEC. 70108. FLEET MODERNIZATION. 8 (a) APPROPRIATION.—In addition to amounts other- 9 wise available, there is appropriated to U.S. Immigration 10 and Customs Enforcement for fiscal year 2025, out of any 11 money in the Treasury not otherwise appropriated, 12 $250,000,000 to remain available until September 30, 13 2029, for the purposes described in subsection (b). 14 (b) USE OF FUNDS.—Amounts made available under 15 subsection (a) shall only be used for U.S. Immigration and 16 Customs Enforcement fleet modernization to support en- 17 forcement and removal operations. 18 SEC. 70109. PROMOTING FAMILY UNITY. 19 (a) APPROPRIATION.—In addition to amounts other- 20 wise available, there is appropriated to U.S. Immigration 21 and Customs Enforcement for fiscal year 2025, out of any 22 money in the Treasury not otherwise appropriated, 23 $20,000,000 to remain available until September 30, 24 2029, for the purposes described in subsection (b). 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00536 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 537 •HR 1 RH (b) USE OF FUNDS.—The funds made available 1 under subsection (a) shall only be used to— 2 (1) maintain the care and custody, during the 3 period in which the charges described in subpara- 4 graph (A) are pending, of an alien who— 5 (A) is charged only with a misdemeanor of- 6 fense under section 275(a) of the Immigration 7 and Nationality Act (8 U.S.C. 1325(a)); and 8 (B) entered the United States with the 9 alien’s child who has not attained 18 years of 10 age; and 11 (2) detain the alien with the alien’s child. 12 SEC. 70110. FUNDING SECTION 287(G) OF THE IMMIGRA- 13 TION AND NATIONALITY ACT. 14 (a) APPROPRIATION.—In addition to amounts other- 15 wise available, there is appropriated to the U.S. Immigra- 16 tion and Customs Enforcement for fiscal year 2025, out 17 of any money in the Treasury not otherwise appropriated, 18 $650,000,000, to remain available until September 30, 19 2029, for the purposes described in subsection (b). 20 (b) USE OF FUNDS.—The amounts made available 21 under subsection (a) shall only be used for purposes of 22 facilitating and implementing agreements under section 23 287(g) of the Immigration and Nationality Act (8 U.S.C. 24 1357(g)). 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00537 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 538 •HR 1 RH SEC. 70111. COMPENSATION FOR INCARCERATION OF 1 CRIMINAL ALIENS. 2 (a) APPROPRIATION.—In addition to amounts other- 3 wise available, there is appropriated to the Department 4 of Justice for fiscal year 2025, out of any money in the 5 Treasury not otherwise appropriated, $950,000,000, to re- 6 main available until September 30, 2029, for the purposes 7 described in subsection (b). 8 (b) USE OF FUNDS.—The amounts made available 9 under subsection (a) shall only be used to compensate a 10 State or political subdivision of a State, as may be appro- 11 priate, with respect to the incarceration of any alien 12 who— 13 (1) has been convicted of a felony or two or 14 more misdemeanors; and 15 (2)(A) entered the United States without in- 16 spection or at any time or place other than as des- 17 ignated by the Secretary of Homeland Security; 18 (B) was the subject of removal proceedings at 19 the time he or she was taken into custody by the 20 State or a political subdivision of the State; or 21 (C) was admitted as a nonimmigrant and, at 22 the time he or she was taken into custody by the 23 State or a political subdivision of the State, has 24 failed to maintain the nonimmigrant status in which 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00538 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 539 •HR 1 RH the alien was admitted, or to which it was changed, 1 or to comply with the conditions of any such status. 2 (c) LIMITATION.—The amounts made available under 3 subsection (a) shall not be used to compensate any State 4 or political subdivision of the State if the State or political 5 subdivision of the State prohibits or in any way restricts 6 a Federal, State, or local government entity, official, or 7 other personnel from any of the following: 8 (1) Complying with the immigration laws (as 9 defined in section 101(a)(17) of the Immigration 10 and Nationality Act (8 U.S.C. 1101(a)(17)). 11 (2) Assisting or cooperating with Federal law 12 enforcement entities, officials, or other personnel re- 13 garding the enforcement of the immigration laws. 14 (3) Undertaking any one of the following law 15 enforcement activities as they relate to information 16 regarding the citizenship or immigration status, law- 17 ful or unlawful, the inadmissibility or deportability, 18 and the custody status, of any individual: 19 (A) Making inquiries to any individual to 20 obtain such information regarding such indi- 21 vidual or any other individuals. 22 (B) Notifying the Federal Government re- 23 garding the presence of individuals who are en- 24 countered by law enforcement officials or other 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00539 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 540 •HR 1 RH personnel of a State or political subdivision of 1 a State. 2 (C) Complying with requests for such in- 3 formation from Federal law enforcement enti- 4 ties, officials, or other personnel. 5 SEC. 70112. OFFICE OF THE PRINCIPAL LEGAL ADVISOR. 6 (a) APPROPRIATION.—In addition to amounts other- 7 wise available, there is appropriated to U.S. Immigration 8 and Customs Enforcement for fiscal year 2025, out of any 9 money in the Treasury not otherwise appropriated, 10 $1,320,000,000 to remain available until September 30, 11 2029, for the purposes described in subsection (b). 12 (b) USE OF FUNDS.—Amounts made available under 13 subsection (a) shall only be used for purposes of hiring 14 additional support staff and attorneys within the Office 15 of the Principal Legal Advisor to represent the Depart- 16 ment of Homeland Security in removal proceedings. 17 SEC. 70113. RETURN OF ALIENS ARRIVING FROM CONTIG- 18 UOUS TERRITORY. 19 (a) APPROPRIATION.—In addition to amounts other- 20 wise available, there is appropriated to the Department 21 of Homeland Security for fiscal year 2025, out of any 22 money in the Treasury not otherwise appropriated, 23 $500,000,000 to remain available until September 30, 24 2029, for the purposes described in subsection (b). 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00540 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 541 •HR 1 RH (b) USE OF FUNDS.—The funds made available 1 under subsection (a) shall only be used for purposes of 2 return of aliens under section 235(b)(2)(C) of the Immi- 3 gration and Nationality Act (8 U.S.C. 1225(b)(2)(C)). 4 SEC. 70114. STATE AND LOCAL PARTICIPATION IN HOME- 5 LAND SECURITY EFFORTS. 6 (a) APPROPRIATION.—In addition to amounts other- 7 wise available, there is appropriated to U.S. Immigration 8 and Customs Enforcement for fiscal year 2025, out of any 9 money in the Treasury not otherwise appropriated, 10 $787,000,000, to remain available until September 30, 11 2029, for the purpose described in subsection (b). 12 (b) USE OF FUNDS.—The funds made available 13 under subsection (a) shall only be used for the purpose 14 of ending the presence of criminal gangs and transnational 15 criminal organizations throughout the United States, com- 16 bating human smuggling and trafficking networks, sup- 17 porting immigration enforcement activities, and providing 18 reimbursement for State and local participation in such 19 efforts. 20 SEC. 70115. UNACCOMPANIED ALIEN CHILDREN CAPACITY. 21 (a) APPROPRIATION.—In addition to amounts other- 22 wise available, there is appropriated to the Office of Ref- 23 ugee Resettlement for fiscal year 2025, out of any money 24 in the Treasury not otherwise appropriated, 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00541 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 542 •HR 1 RH $3,000,000,000 to remain available until September 30, 1 2029, for the purposes described in subsection (b). 2 (b) USE OF FUNDS.—The funds made available 3 under subsection (a) shall only be used for the Office of 4 Refugee Resettlement to house, transport, and supervise 5 unaccompanied alien children in the custody of the Office 6 of Refugee Resettlement pursuant to section 235 of the 7 William Wilberforce Trafficking Victims Protection Reau- 8 thorization Act of 2008. 9 SEC. 70116. DEPARTMENT OF HOMELAND SECURITY CRIMI- 10 NAL AND GANG CHECKS FOR UNACCOM- 11 PANIED ALIEN CHILDREN. 12 (a) APPROPRIATION.—In addition to amounts other- 13 wise available, there is appropriated to U.S. Customs and 14 Border Protection for fiscal year 2025, out of any money 15 in the Treasury not otherwise appropriated, $20,000,000, 16 to remain available until September 30, 2029, for the pur- 17 poses described in subsection (b). 18 (b) USE OF FUNDS.—In the case of an unaccom- 19 panied alien child who has attained 12 years of age and 20 is encountered by U.S. Customs and Border Protection, 21 the funds made available under subsection (a) shall only 22 be used to— 23 (1) contact the consulate or embassy of the 24 country of nationality or last habitual residence of 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00542 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 543 •HR 1 RH such unaccompanied alien child to request such un- 1 accompanied alien child’s criminal record; and 2 (2) conduct an examination of such unaccom- 3 panied alien child for gang-related tattoos and other 4 gang-related markings, 5 (c) UNACCOMPANIED ALIEN CHILD DEFINED.—In 6 this section, the term ‘‘unaccompanied alien child’’ shall 7 have the meaning given such term in section 462(g) of 8 the Homeland Security Act of 2002. 9 SEC. 70117. DEPARTMENT OF HEALTH AND HUMAN SERV- 10 ICES CRIMINAL AND GANG CHECKS FOR UN- 11 ACCOMPANIED ALIEN CHILDREN. 12 (a) APPROPRIATION.—In addition to amounts other- 13 wise available, there is appropriated to the Office of Ref- 14 ugee Resettlement for fiscal year 2025, out of any money 15 in the Treasury not otherwise appropriated, $20,000,000, 16 to remain available until September 30, 2029, for the pur- 17 poses described in subsection (b). 18 (b) USE OF FUNDS.—In the case of each unaccom- 19 panied alien child who has attained 12 years of age, the 20 funds made available under subsection (a) shall only be 21 used for the purpose of making a determination pursuant 22 to section 235(c)(2)(A) of the William Wilberforce Traf- 23 ficking Victims Protection Reauthorization Act of 2008 24 about whether an unaccompanied alien child poses a dan- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00543 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 544 •HR 1 RH ger to self or others or has been charged with having com- 1 mitted a criminal offense, to— 2 (1) contact the consulate or embassy of such 3 unaccompanied alien child’s country of nationality or 4 last habitual residence to request such unaccom- 5 panied alien child’s criminal record; and 6 (2) conduct an examination of the unaccom- 7 panied alien child for gang-related tattoos and other 8 gang-related markings. 9 (c) UNACCOMPANIED ALIEN CHILD DEFINED.—In 10 this section, the term ‘‘unaccompanied alien child’’ shall 11 have the meaning given such term in section 462(g) of 12 the Homeland Security Act of 2002. 13 SEC. 70118. INFORMATION ABOUT SPONSORS AND ADULT 14 RESIDENTS OF SPONSOR HOUSEHOLDS. 15 (a) APPROPRIATION.—In addition to amounts other- 16 wise available, there is appropriated to the Office of Ref- 17 ugee Resettlement for fiscal year 2025, out of any money 18 in the Treasury not otherwise appropriated, $50,000,000, 19 to remain available until September 30, 2029, for the pur- 20 poses described in subsection (b). 21 (b) INFORMATION ABOUT INDIVIDUALS WITH WHOM 22 UNACCOMPANIED ALIEN CHILDREN ARE PLACED AND 23 RESIDE.—Before placing an unaccompanied alien child 24 with an individual pursuant to section 235(c) of the Wil- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00544 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 545 •HR 1 RH liam Wilberforce Trafficking Victims Protection Reauthor- 1 ization Act of 2008, the Secretary of Health and Human 2 Services shall provide to the Secretary of Homeland Secu- 3 rity, regarding the individual with whom the child will be 4 placed and all adult residents of the individual’s house- 5 hold, information on— 6 (1) the name of the individual and all adult 7 residents of the individual’s household; 8 (2) the social security number of the individual 9 and all adult residents of the individual’s household; 10 (3) the date of birth of the individual and all 11 adult residents of the individual’s household; 12 (4) the validated location of the individual’s res- 13 idence where the child will be placed; 14 (5) the immigration status of the individual and 15 all adult residents of the individual’s household; 16 (6) contact information for the individual and 17 all adult residents of the individual’s household; and 18 (7) the results of all background and criminal 19 records checks for the individual and all adult resi- 20 dents of the individual’s household, which shall in- 21 clude at a minimum an investigation of the public 22 records sex offender registry, a public records back- 23 ground check, and a national criminal history check 24 based on fingerprints. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00545 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 546 •HR 1 RH (c) UNACCOMPANIED ALIEN CHILD DEFINED.—In 1 this section, the term ‘‘unaccompanied alien child’’ shall 2 have the meaning given such term in section 462(g) of 3 the Homeland Security Act of 2002. 4 SEC. 70119. REPATRIATION OF UNACCOMPANIED ALIEN 5 CHILDREN. 6 (a) APPROPRIATION.—In addition to amounts other- 7 wise available, there is appropriated to the Department 8 of Homeland Security for fiscal year 2025, out of any 9 money in the Treasury not otherwise appropriated, 10 $100,000,000, to remain available until September 30, 11 2029, for the purposes described in subsection (b). 12 (b) USE OF FUNDS.—Notwithstanding any other pro- 13 vision of law, the funds made available under subsection 14 (a) shall only be used to permit a specified unaccompanied 15 alien child to withdraw the child’s application for admis- 16 sion pursuant to section 235(a)(4) of the Immigration and 17 Nationality Act and return such child to the child’s coun- 18 try of nationality or country of last habitual residence. 19 (c) DEFINITIONS.—In this section— 20 (1) SPECIFIED UNACCOMPANIED ALIEN 21 CHILD.—The term ‘‘specified unaccompanied alien 22 child’’ means an unaccompanied alien child (as de- 23 fined in section 462(g) of the Homeland Security 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00546 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 547 •HR 1 RH Act of 2002) who the Secretary of Homeland Secu- 1 rity determines on a case-by-case basis— 2 (A) has been found by an immigration offi- 3 cer at a land border or port of entry of the 4 United States and is inadmissible under the Im- 5 migration and Nationality Act; 6 (B) has not been a victim of severe forms 7 of trafficking in persons, and there is no cred- 8 ible evidence that such child is at risk of being 9 trafficked upon return to the child’s country of 10 nationality or of last habitual residence; and 11 (C) does not have a fear of returning to 12 the child’s country of nationality or of last ha- 13 bitual residence owing to a credible fear of per- 14 secution. 15 (2) SEVERE FORMS OF TRAFFICKING IN PER- 16 SONS.—The term ‘‘severe forms of trafficking in 17 persons’’ shall have the meaning given such term in 18 section 103 of the Trafficking Victims Protection 19 Act of 2000. 20 SEC. 70120. UNITED STATES SECRET SERVICE. 21 (a) APPROPRIATION.—In addition to amounts other- 22 wise available, there is appropriated to the Director of the 23 United States Secret Service for fiscal year 2025, out of 24 any money in the Treasury not otherwise appropriated, 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00547 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 548 •HR 1 RH $1,170,000,000 to remain available until September 30, 1 2029, for the purposes described in subsection (b). 2 (b) USE OF FUNDS.—Amounts made available under 3 subsection (a) shall only be used for additional United 4 States Secret Service resources, including personnel, train- 5 ing facilities, and technology. 6 SEC. 70121. COMBATING DRUG TRAFFICKING AND ILLEGAL 7 DRUG USE. 8 (a) APPROPRIATION.—In addition to amounts other- 9 wise available, there is appropriated to the Department 10 of Justice for fiscal year 2025, out of any money in the 11 Treasury not otherwise appropriated, $500,000,000 to re- 12 main available until September 30, 2029, for the purposes 13 described in subsection (b). 14 (b) USE OF FUNDS.—Amounts made available under 15 subsection (a) shall only be used for efforts to combat 16 drug trafficking, including of fentanyl and its precursor 17 chemicals, and illegal drug use. 18 SEC. 70122. INVESTIGATING AND PROSECUTING IMMIGRA- 19 TION RELATED MATTERS. 20 (a) APPROPRIATION.—In addition to amounts other- 21 wise available, there is appropriated to the Department 22 of Justice for fiscal year 2025, out of any money in the 23 Treasury not otherwise appropriated, $600,000,000, to re- 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00548 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 549 •HR 1 RH main available until September 30, 2029, for the purposes 1 described in subsection (b). 2 (b) USE OF FUNDS.—Amounts made available under 3 subsection (a) shall only be used to investigate and pros- 4 ecute immigration matters, gang-related crimes involving 5 aliens, child trafficking and smuggling involving aliens, 6 voting by aliens, violations of the Alien Registration Act, 7 and violations of or fraud relating to title IV of the Per- 8 sonal Responsibility and Work Opportunity Act of 1996, 9 including through hiring Department of Justice personnel 10 to investigate and prosecute such matters. 11 SEC. 70123. EXPEDITED REMOVAL FOR CRIMINAL ALIENS. 12 (a) APPROPRIATION.—In addition to amounts other- 13 wise available, there is appropriated to the Department 14 of Homeland Security for fiscal year 2025, out of any 15 money in the Treasury not otherwise appropriated, 16 $75,000,000, to remain available until September 30, 17 2029, for the purposes described in subsection (b). 18 (b) USE OF FUNDS.—The amounts made available 19 in subsection (a) shall only be used for applying the provi- 20 sions of section 235(b)(1) of the Immigration and Nation- 21 ality Act to any alien who is inadmissible under paragraph 22 (2) or (3) of section 212(a) of the Immigration and Na- 23 tionality Act, regardless of the period that such alien has 24 been physically present in the United States. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00549 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 550 •HR 1 RH SEC. 70124. REMOVAL OF CERTAIN CRIMINAL ALIENS WITH- 1 OUT FURTHER HEARING. 2 (a) APPROPRIATION.—In addition to amounts other- 3 wise available, there is appropriated to the Department 4 of Homeland Security for fiscal year 2025, out of any 5 money in the Treasury not otherwise appropriated, 6 $25,000,000, to remain available until September 30, 7 2029, for the purposes described in subsection (b). 8 (b) USE OF FUNDS.—The amounts made available 9 in subsection (a) shall only be used for applying the provi- 10 sions of section 235(c) of the Immigration and Nationality 11 Act to any arriving alien that an immigration officer or 12 an immigration judge suspects may be inadmissible under 13 paragraph (2) or (3) of section 212(a) of the Immigration 14 and Nationality Act. 15 Subtitle B—Regulatory Matters 16 SEC. 70200. REVIEW OF AGENCY RULEMAKING. 17 (a) APPROPRIATION.—In addition to amounts other- 18 wise available, there is appropriated: 19 (1) To the Director of the Office of Manage- 20 ment and Budget for fiscal year 2025, out of any 21 money in the Treasury not otherwise appropriated, 22 $10,000,000, to remain available through September 23 30, 2034, to carry out this section and the amend- 24 ments made by this section. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00550 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 551 •HR 1 RH (2) To the Comptroller General of the United 1 States for fiscal year 2025, out of any money in the 2 Treasury not otherwise appropriated, $10,000,000, 3 to remain available through September 30, 2034, to 4 carry out this section and the amendments made by 5 this section. 6 (b) USE OF FUNDS.— 7 (1) OFFICE OF MANAGEMENT AND BUDGET.— 8 The Director of the Office of Management and 9 Budget shall use amounts made available under sub- 10 section (a)(1) to pay expenses associated with imple- 11 menting the requirements of subsections (c) and (d). 12 (2) COMPTROLLER GENERAL.—The Comp- 13 troller General of the United States shall use 14 amounts made available under subsection (a)(2) to 15 pay expenses associated with implementing the re- 16 quirements of subsection (e). 17 (c) CONGRESSIONAL REVIEW OF AGENCY RULE- 18 MAKING.— 19 (1) Chapter 8 of title 5, United States Code, is 20 amended by inserting at the end the following: 21 ‘‘§ 809. Additional reporting requirements 22 ‘‘(a) AGENCY REPORTS.—In the case of any rule for 23 which a report is submitted under section 801(a)(1)(A) 24 the agency shall also include in such report— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00551 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 552 •HR 1 RH ‘‘(1) an estimate of the budgetary effects asso- 1 ciated with the enactment and enforcement of the 2 rule; 3 ‘‘(2) an analysis of the direct and reasonably 4 foreseeable indirect costs associated with the rule; 5 ‘‘(3) an analysis of any jobs added or lost with- 6 in each affected industry, as identified by North 7 American Industrial Classification System code, dif- 8 ferentiating between public and private sector jobs, 9 as a direct or indirect result of the rule; 10 ‘‘(4) a determination, by the Administrator of 11 the Office of Information and Regulatory Affairs of 12 the Office of Management and Budget, of whether 13 the rule is a major or nonmajor rule, including an 14 explanation of the finding specifically addressing 15 each criteria for a major rule contained within sub- 16 paragraphs (A) through (C) of section 804(2); 17 ‘‘(5) a list of information on which the rule is 18 based, including data, scientific and economic stud- 19 ies, and cost-benefit analyses; 20 ‘‘(6) a list of any other related regulatory ac- 21 tions that implement the same statutory provision or 22 regulatory objective as well as the estimated eco- 23 nomic effects of those actions; 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00552 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 553 •HR 1 RH ‘‘(7) an estimate of the effect on inflation of the 1 rule; and 2 ‘‘(8) a statement of the constitutional authority 3 authorizing the agency to make the rule. 4 ‘‘(b) COMPTROLLER GENERAL REPORTS.—If re- 5 quested in writing by a Member of Congress— 6 ‘‘(1) the Comptroller General of the United 7 States shall make a determination whether an agen- 8 cy action qualifies as a rule for purposes of this 9 chapter, and shall submit to Congress this deter- 10 mination not later than 60 days after the date of the 11 request; and 12 ‘‘(2) the Comptroller General shall make a de- 13 termination whether a rule is considered a major 14 rule for purposes of this chapter, and shall submit 15 to Congress this determination not later than 90 16 days after the date of the request. 17 ‘‘(c) DETERMINATION.—For purposes of this section, 18 a determination under this subsection (b) shall be deemed 19 to be a report under section 801(a)(1)(A). 20 ‘‘§ 810. Approval of certain major rules 21 ‘‘(a) APPROVAL REQUIRED.—Notwithstanding any 22 other provision of this chapter, a major rule that increases 23 revenues, as determined in section 809(a), shall not take 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00553 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 554 •HR 1 RH effect unless Congress enacts a joint resolution of approval 1 described in subsection (c). 2 ‘‘(b) EFFECT.—If a joint resolution of approval relat- 3 ing to a major rule that increases revenue is not enacted 4 into law by the end of 60 session days or legislative days, 5 as applicable, beginning on the date on which the report 6 referred to in section 801(a)(1)(A) is received by Congress 7 (excluding days either House of Congress is adjourned for 8 more than 3 days during a session of Congress), then the 9 rule described in that resolution shall be deemed not to 10 be approved and such rule shall not take effect. 11 ‘‘(c) RESOLUTION OF APPROVAL.—Section 802 shall 12 apply to a joint resolution of approval under this section 13 to the same extent as it does to a joint resolution of dis- 14 approval, except that the matter after the resolving clause 15 of a joint resolution of approval shall be as follows: ‘That 16 Congress approves the rule submitted by the lllll 17 relating to lllll.’ (The blank spaces being appro- 18 priately filled in). 19 ‘‘(d) RULEMAKING AUTHORITY.—The enactment of 20 a joint resolution of approval under this section shall not 21 be interpreted to serve as a grant or modification of statu- 22 tory authority by Congress for the promulgation of a rule, 23 shall not extinguish or affect any claim, whether sub- 24 stantive or procedural, against any alleged defect in a rule 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00554 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 555 •HR 1 RH or the rulemaking process, and shall not form part of the 1 record before the court in any judicial proceeding con- 2 cerning a rule except for purposes of determining whether 3 or not the rule is in effect. 4 ‘‘(e) JUDICIAL REVIEW.—Notwithstanding section 5 805, a court may determine whether a Federal agency has 6 completed the necessary requirements under this chapter 7 for a rule to take effect. 8 ‘‘§ 811. Additional review of rules 9 ‘‘(a) ADDITIONAL REVIEW.—In addition to the op- 10 portunity for review otherwise provided under this chap- 11 ter, notwithstanding any other provision under this chap- 12 ter, in the case of any rule for which a report is submitted 13 under section 801(a)(1)(A) which increases revenue as de- 14 termined under section 809(a) and which was submitted 15 during the final year of a President’s term, the procedures 16 described in section 802 shall apply to such rule in the 17 succeeding session of Congress, and a joint resolution may 18 contain one or more such rules. 19 ‘‘(b) RESOLUTION OF DISAPPROVAL.—In the case of 20 such a resolution containing one or more such rules under 21 this section, the matter after the resolving clause shall be 22 as follows: ‘That Congress disapproves the following rules: 23 the rule submitted by the ll relating to ll; and the 24 rule submitted by the ll relating to ll. Such rules 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00555 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 556 •HR 1 RH shall have no force or effect.’ (The blank spaces being ap- 1 propriately filled in and additional clauses describing addi- 2 tional rules to be included as necessary). 3 ‘‘§ 812. Review of rules currently in effect 4 ‘‘(a) ANNUAL REVIEW.—Beginning on the date that 5 is 6 months after the date of enactment of this section 6 and annually thereafter for the 4 years following, each 7 agency shall designate not less than 20 percent of eligible 8 rules made by that agency for review, and shall submit 9 a report including each such eligible rule in the same man- 10 ner as a report under section 801(a)(1). Sections 801, 11 802, 809, 810, and 811 shall apply to each such rule, sub- 12 ject to subsection (c) of this section. No eligible rule pre- 13 viously designated may be designated again. 14 ‘‘(b) SUNSET FOR ELIGIBLE RULES NOT EX- 15 TENDED.—Beginning after the date that is 5 years after 16 the date of enactment of this section, if Congress has not 17 enacted a joint resolution of approval for that eligible rule, 18 that eligible rule shall not continue in effect. 19 ‘‘(c) APPROVAL OF RULES.— 20 ‘‘(1) Unless Congress approves all eligible rules 21 designated by executive agencies for review within 22 90 days after designation, they shall have no effect 23 and the Federal agency which originally promul- 24 gated such rules may not enforce such rules. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00556 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 557 •HR 1 RH ‘‘(2) A single joint resolution of approval shall 1 apply to all eligible rules in a report designated for 2 a year as follows: ‘That Congress approves the rules 3 submitted by thelll for the year lll.’ (The 4 blank spaces being appropriately filled in). 5 ‘‘(d) DEFINITION.—In this section the term ‘eligible 6 rule’ means a rule that is in effect as of the date of enact- 7 ment of this section.’’. 8 (2) The table of chapters for chapter 8 of title 9 5, United States Code, is amended by inserting after 10 the item relating to section 808 the following: 11 ‘‘809. Additional reporting requirements. ‘‘810. Approval of certain major rules. ‘‘811. Additional review of rules. ‘‘812. Review of rules currently in effect.’’. (d) TECHNICAL AND CONFORMING AMENDMENTS.— 12 Chapter 8 of title 5, United States Code, is amended— 13 (1) in section 801(a)(3)— 14 (A) in subparagraph (B)(ii), by striking 15 ‘‘or’’ at the end; 16 (B) in subparagraph (C), by striking the 17 period at the end and inserting ‘‘; or’’; and 18 (C) by inserting at the end the following: 19 ‘‘(D) in the case of a major rule that in- 20 creases revenue, such rule shall not take effect 21 unless Congress passes a joint resolution of ap- 22 proval described in section 810.’’; and 23 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00557 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 558 •HR 1 RH (2) in section 804, by amending paragraph (3) 1 to read as follows: 2 ‘‘(3) The term ‘rule’ has the meaning given 3 such term in section 551, except that such term— 4 ‘‘(A) includes interpretative rules, general 5 statements of policy, and all other agency guid- 6 ance documents; and 7 ‘‘(B) does not include— 8 ‘‘(i) any rule of particular applica- 9 bility, including a rule that approves or 10 prescribes for the future rates, wages, 11 prices, services, or allowances therefore, 12 corporate or financial structures, reorga- 13 nizations, mergers, or acquisitions thereof, 14 or accounting practices or disclosures bear- 15 ing on any of the foregoing; 16 ‘‘(ii) any rule relating to agency man- 17 agement or personnel; or 18 ‘‘(iii) any rule of agency organization, 19 procedure, or practice that does not sub- 20 stantially affect the rights or obligations of 21 nonagency parties.’’. 22 (e) GOVERNMENT ACCOUNTABILITY OFFICE STUDY 23 OF RULES.— 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00558 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 559 •HR 1 RH (1) IN GENERAL.—The Comptroller General of 1 the United States shall conduct a study to deter- 2 mine, as of the date of the enactment of this sec- 3 tion— 4 (A) how many rules (as such term is de- 5 fined in section 804 of title 5, United States 6 Code) were in effect; 7 (B) how many major rules (as such term 8 is defined in section 804 of title 5, United 9 States Code) were in effect; and 10 (C) the total estimated economic cost im- 11 posed by all such rules. 12 (2) REPORT.—Not later than 1 year after the 13 date of the enactment of this section, the Comp- 14 troller General of the United States shall submit a 15 report (and publish the report on the website of the 16 Comptroller General) to Congress that contains the 17 findings of the study conducted under subsection (e). 18 SEC. 70201. CONGRESSIONAL REVIEW ACT COMPLIANCE. 19 (a) APPROPRIATION.—In addition to amounts other- 20 wise available, there is appropriated to the Director of the 21 Office of Management and Budget for fiscal year 2025, 22 out of any money in the Treasury not otherwise appro- 23 priated, $10,000,000, to remain available through Sep- 24 tember 30, 2034, to carry out this section. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00559 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 560 •HR 1 RH (b) ANALYSIS.—The Administrator of the Office of 1 Information and Regulatory Affairs of the Office of Man- 2 agement and Budget shall use amounts appropriated 3 under this section to conduct de novo analysis of the direct 4 and reasonably foreseeable indirect costs of compliance as- 5 sociated with rules submitted under section 801(a)(1)(A) 6 of title 5, United States Code. The Administrator shall 7 use such analysis as the basis for determining whether a 8 rule is a major rule and publish each such analysis to the 9 regulatory review database of the Office of Information 10 and Regulatory Affairs prior to transmission of such rule 11 to each House of the Congress and the Comptroller Gen- 12 eral of the United States. The Administrator shall also 13 publish an estimate of the budgetary effects associated 14 with the promulgation and enforcement of such rules prior 15 to transmission. 16 Subtitle C—Other Matters 17 SEC. 70300. LIMITATION ON DONATIONS MADE PURSUANT 18 TO SETTLEMENT AGREEMENTS TO WHICH 19 THE UNITED STATES IS A PARTY. 20 (a) LIMITATION ON REQUIRED DONATIONS.—An of- 21 ficial or agent of the Government may not enter into or 22 enforce any settlement agreement on behalf of the United 23 States directing or providing for a payment to any person 24 or entity other than the United States, other than a pay- 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00560 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 561 •HR 1 RH ment that provides restitution for or otherwise directly 1 remedies actual harm (including to the environment) di- 2 rectly and proximately caused by the party making the 3 payment, or constitutes payment for services rendered in 4 connection with the case. 5 (b) PENALTY.—Any official or agent of the Govern- 6 ment who violates subsection (a) shall be subject to the 7 same penalties that would apply in the case of a violation 8 of section 3302 of title 31, United States Code. 9 (c) EFFECTIVE DATE.—Subsections (a) and (b) 10 apply only in the case of a settlement agreement entered 11 on or after the date of enactment of this Act. 12 (d) DEFINITION.—The term ‘‘settlement agreement’’ 13 means a settlement agreement resolving a civil action or 14 potential civil action. 15 (e) ANNUAL AUDIT REQUIREMENT.— 16 (1) IN GENERAL.—Not later than at the end of 17 the first fiscal year that begins after the date of en- 18 actment of this Act, and annually thereafter, the In- 19 spector General of each Federal agency shall submit, 20 and make available on a publicly accessible website, 21 a report on any settlement agreement entered into 22 in violation of this section by that agency to— 23 (A) the Committee on the Judiciary of the 24 Senate; and 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00561 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 562 •HR 1 RH (B) the Committee on the Judiciary of the 1 House of Representatives. 2 (2) PROHIBITION ON ADDITIONAL FUNDING.— 3 No additional funds are authorized to be appro- 4 priated to carry out this subsection. 5 SEC. 70301. SOLICITATION OF ORDERS DEFINED. 6 Section 101(d) of Public Law 86—272 (73 Stat. 7 555) is amended— 8 (1) in paragraph (1) by striking ‘‘and’’ at the 9 end, 10 (2) in paragraph (2) by striking the period at 11 the end and inserting ‘‘; and’’, and 12 (3) by adding at the end the following: 13 ‘‘(3) the term ‘solicitation of orders’ means any 14 business activity that facilitates the solicitation of 15 orders even if that activity may also serve some 16 independently valuable business function apart from 17 solicitation.’’. 18 SEC. 70302. RESTRICTION OF FUNDS. 19 No court of the United States may use appropriated 20 funds to enforce a contempt citation for failure to comply 21 with an injunction or temporary restraining order if no 22 security was given when the injunction or order was issued 23 pursuant to Federal Rule of Civil Procedure 65(c), wheth- 24 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00562 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 563 •HR 1 RH er issued prior to, on, or subsequent to the date of enact- 1 ment of this section. 2 TITLE VIII—COMMITTEE ON 3 NATURAL RESOURCES 4 Subtitle A—Energy and Mineral 5 Resources 6 PART I—OIL AND GAS 7 SEC. 80101. ONSHORE OIL AND GAS LEASE SALES. 8 (a) REQUIREMENT TO IMMEDIATELY RESUME ON- 9 SHORE OIL AND GAS LEASE SALES.— 10 (1) IN GENERAL.—The Secretary of the Inte- 11 rior shall immediately resume quarterly onshore oil 12 and gas lease sales in compliance with the Mineral 13 Leasing Act. 14 (2) REQUIREMENT.—The Secretary of the Inte- 15 rior shall ensure— 16 (A) that any oil and gas lease sale pursu- 17 ant to paragraph (1) is conducted immediately 18 on completion of all requirements under the 19 Mineral Leasing Act; and 20 (B) that the processes described in sub- 21 paragraph (A) are conducted in a timely man- 22 ner to ensure compliance with subsection (b)(1). 23 (3) LEASE OF OIL AND GAS LANDS.—Section 24 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00563 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 564 •HR 1 RH 226(b)(1)(A)) is amended by inserting ‘‘Eligible 1 lands comprise all lands subject to leasing under this 2 Act and not excluded from leasing by a statutory or 3 regulatory prohibition. Land shall be considered 4 available under the preceding sentence if the land 5 has been designated as open for leasing under a land 6 use plan developed or revised under section 202 of 7 the Federal Land Policy and Management Act of 8 1976 and has been nominated for leasing through 9 the submission of an expression of interest, is sub- 10 ject to drainage (as described in subsection (j)) in 11 the absence of leasing, or is otherwise designated as 12 available pursuant to regulations issued by the Sec- 13 retary.’’ after ‘‘sales are necessary.’’. 14 (b) QUARTERLY LEASE SALES.— 15 (1) IN GENERAL.—In accordance with the Min- 16 eral Leasing Act, each fiscal year, the Secretary of 17 the Interior shall conduct a minimum of four oil and 18 gas lease sales in each of the following States: 19 (A) Wyoming. 20 (B) New Mexico. 21 (C) Colorado. 22 (D) Utah. 23 (E) Montana. 24 (F) North Dakota. 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00564 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 565 •HR 1 RH (G) Oklahoma. 1 (H) Nevada. 2 (I) Alaska. 3 (J) Any other State in which there is land 4 available for oil and gas leasing under the Min- 5 eral Leasing Act or any other mineral leasing 6 law. 7 (2) REQUIREMENT.—In conducting a lease sale 8 under paragraph (1) in a State described in that 9 paragraph, the Secretary of the Interior shall offer 10 not less than 50 percent of all parcels nominated 11 that are available and eligible pursuant to the re- 12 quirements of the Mineral Leasing Act. 13 (3) REPLACEMENT SALES.—The Secretary of 14 the Interior shall conduct a replacement sale during 15 the same fiscal year if— 16 (A) a lease sale under paragraph (1) is 17 canceled, delayed, or deferred, including for a 18 lack of eligible parcels; or 19 (B) during a lease sale under paragraph 20 (1) the percentage of acreage that does not re- 21 ceive a bid is equal to or greater than 25 per- 22 cent of the acreage offered. 23 (c) LEASING OF OIL AND GAS.—Section 17 of the 24 Mineral Leasing Act (30 U.S.C. 226) is amended— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00565 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 566 •HR 1 RH (1) by striking the section designation and all 1 that follows through the end of subsection (a) and 2 inserting the following: 3 ‘‘SEC. 17. LEASING OF OIL AND GAS. 4 ‘‘(a) LEASING.— 5 ‘‘(1) IN GENERAL.—Not later than 18 months 6 after the date of receipt by the Secretary of an ex- 7 pression of interest in leasing land that is subject to 8 disposition under this Act and is known or believed 9 to contain oil or gas deposits, the Secretary shall, 10 subject to paragraph (2), offer such land for oil and 11 gas leasing if the Secretary determines that the land 12 is open to oil or gas leasing under a land use plan 13 developed or revised under section 202 of the Fed- 14 eral Land Policy and Management Act of 1976 (43 15 U.S.C. 1712) and such land use plan— 16 ‘‘(A) applies to the planning area in which 17 the land is located; and 18 ‘‘(B) is in effect on the date on which the 19 expression of interest was submitted to the Sec- 20 retary. 21 ‘‘(2) LAND USE PLANS.— 22 ‘‘(A) LEASE TERMS AND CONDITIONS.—A 23 lease issued by the Secretary under this sec- 24 tion— 25 VerDate Sep 11 2014 02:44 May 21, 2025 Jkt 059200 PO 00000 Frm 00566 Fmt 6652 Sfmt 6201 E:\BILLS\H1.RH H1 kjohnson on DSK7ZCZBW3PROD with $$_JOB 567 •HR 1 RH ‘‘(i) shall include any terms and con- 1 ditions of the land use plan that apply to 2 the area of the lease; and 3 ‘‘(ii) shall not require any stipulations 4

H. R. 1 One Hundred Nineteenth Congress of the United States of America AT THE FIRST SESSION Begun and held at the City of Washington on Friday, the third day of January, two thousand and twenty-five An Act To provide for reconciliation pursuant to title II of H. Con. Res. 14. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. TABLE OF CONTENTS. The table of contents of this Act is as follows: Sec. 1. 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. H. R. 1—2 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 ef- ficiency 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 capabili- ties 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. 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 Multi- family 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 Atmos- pheric 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. 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. Timber sales and long-term contracting for the Forest Service and the Bureau of Land Management. H. R. 1—3 Sec. 50302. Renewable energy fees on Federal land. Sec. 50303. Renewable energy revenue sharing. Sec. 50304. Rescission of National Park Service and Bureau of Land Management funds. Sec. 50305. 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 informa- tion. 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 incen- tive program for petroleum and natural gas systems. Sec. 60013. Rescission of funding for greenhouse gas air pollution plans and imple- mentation grants. Sec. 60014. Rescission of funding for environmental protection agency efficient, ac- curate, 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 tem- porary 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 resi- dence interest. Sec. 70109. Extension and modification of limitation on casualty loss deduction. H. R. 1—4 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 con- tributions. Sec. 70117. Extension of rollovers from qualified tuition programs to ABLE ac- counts 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 busi- ness 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 cor- porations. H. R. 1—5 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 orga- nizations. 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 high- er education expenses for purposes of 529 accounts. Sec. 70415. Modification of excise tax on investment income of certain private col- leges 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 chari- table 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 cor- porations. Sec. 70427. Permanent increase in limitation on cover over of tax on distilled spir- its. 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 trans- actions. 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. Sec. 70439. Restoration of taxable REIT subsidiary asset test. 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. H. R. 1—6 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. 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 cred- it. 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 pur- poses of computing adjusted financial statement income. Sec. 70524. Income from hydrogen storage, carbon capture, advanced nuclear, hy- dropower, 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. Excise tax on certain remittance transfers. Sec. 70605. Enforcement provisions with respect to COVID-related employee reten- tion credits. Sec. 70606. Social security number requirement for American Opportunity and Lifetime Learning credits. Sec. 70607. 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 enroll- ment in Medicare Savings Programs. Sec. 71102. Moratorium on implementation of rule relating to eligibility and enroll- ment for Medicaid, CHIP, and the Basic Health Program. Sec. 71103. Reducing duplicate enrollment under the Medicaid and CHIP pro- grams. 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 emergency Medicaid. SUBCHAPTER B—PREVENTING WASTEFUL SPENDING Sec. 71111. Moratorium on implementation of rule relating to staffing standards for long-term care facilities under the Medicare and Medicaid programs. Sec. 71112. Reducing State Medicaid costs. Sec. 71113. Federal payments to prohibited entities. SUBCHAPTER C—STOPPING ABUSIVE FINANCING PRACTICES Sec. 71114. Sunsetting increased FMAP incentive. H. R. 1—7 Sec. 71115. Provider taxes. Sec. 71116. State directed payments. Sec. 71117. Requirements regarding waiver of uniform tax requirement for Med- icaid provider tax. Sec. 71118. Requiring budget neutrality for Medicaid demonstration projects under section 1115. SUBCHAPTER D—INCREASING PERSONAL ACCOUNTABILITY Sec. 71119. Requirement for States to establish Medicaid community engagement requirements for certain individuals. Sec. 71120. Modifying cost sharing requirements for certain expansion individuals under the Medicaid program. SUBCHAPTER E—EXPANDING ACCESS TO CARE Sec. 71121. Making certain adjustments to coverage of home or community-based services under Medicaid. 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 sched- ule to account for exceptional circumstances. Sec. 71203. Expanding and clarifying the exclusion for orphan drugs under the Drug Price Negotiation Program. 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 tele- health 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. Subtitle D—Unemployment Sec. 73001. Ending unemployment payments to jobless millionaires. 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. H. R. 1—8 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—Garden of Heroes Sec. 86001. Garden of Heroes. Subtitle H—Office of Refugee Resettlement Sec. 87001. Potential sponsor vetting for unaccompanied alien children appropria- tion. 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 fa- cilities. 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. H. R. 1—9 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 Reim- bursement 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. 100204. Claims relating to Manhattan Project waste. Sec. 100205. Limitations on claims. TITLE I—COMMITTEE ON AGRI- CULTURE, NUTRITION, AND FOR- ESTRY 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. H. R. 1—10 ‘‘(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 there- after, adjust the cost of the thrifty food plan to reflect changes in the Consumer Price Index for All Urban Con- sumers, 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 guid- ance. ‘‘(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 ‘‘sec- tion 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 indi- vidual 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 H. R. 1—11 ‘‘(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 rate.’’; and (2) by adding at the end the following: ‘‘(C) DEFINITION OF NONCONTIGUOUS STATE.— ‘‘(i) IN GENERAL.—In this paragraph, the term ‘non- contiguous 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 Guam 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 ‘non- contiguous 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 deter- mining whether a State agency is demonstrating a good faith effort for purposes of subparagraph (B)(ii), the Sec- retary 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 chal- lenges 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 require- ments, including any milestones (as defined by the Secretary); and H. R. 1—12 ‘‘(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 pursu- ant 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 identi- fied 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.— H. R. 1—13 ‘‘(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.—Subject to clause (iii), 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. ‘‘(iii) DELAYED IMPLEMENTATION.— ‘‘(I) FISCAL YEAR 2025.—If, for fiscal year 2025, the payment error rate of a State multiplied by 1.5 is equal to or above 20 percent, the implementation date under clause (i) for that State shall be fiscal year 2029. ‘‘(II) FISCAL YEAR 2026.—If, for fiscal year 2026, the payment error rate of a State multiplied by 1.5 is equal to or above 20 percent, the implementation date under clause (i) for that State shall be fiscal year 2030. ‘‘(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).’’. (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 H. R. 1—14 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 pro- gram 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 resi- dence 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 Responsi- bility 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 fol- lowing provisions of Public Law 117–169 are rescinded: (1) Paragraphs (3) and (4) of section 23001(a) (136 Stat. 2023). H. R. 1—15 (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 hundred- weight. ‘‘(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 hundred- weight. ‘‘(xiv) For large chickpeas, $25.65 per hundred- weight. ‘‘(xv) For seed cotton, $0.42 per pound. ‘‘(B) EFFECTIVENESS.—Effective beginning with the 2031 crop year, the reference prices defined in subpara- graph (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.— H. R. 1—16 ‘‘(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 Sec- retary 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), effec- tive 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 pro- ducers were prevented from planting during the 2019 through 2023 crop years to covered commod- ities 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 pur- poses 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 pro- ducers, as determined by the Secretary. H. R. 1—17 ‘‘(C) TOTAL NUMBER OF BASE ACRES FOR COVERED COMMODITIES.—The amount described in this subpara- graph, 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 NON- COVERED COMMODITIES DEFINED.—In this paragraph, the term ‘acreage planted on the farm to eligible noncovered commodities’ means acreage planted on a farm to commod- ities other than covered commodities, trees, bushes, vines, grass, or pasture (including cropland that was idle or fal- low), 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 para- graph (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 addi- tional base acres for covered commodities shall be in propor- tion 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 pro- ducers were prevented from planting during the 2019 through 2023 crop years to that covered com- modity 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 para- graph (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 subpara- graph (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 H. R. 1—18 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 H. R. 1—19 (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 AGRI- CULTURE 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 subpara- graph (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 bench- mark 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: H. R. 1—20 ‘‘(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 affirma- tively 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 part- nership, 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 H. R. 1—21 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 sub- section (i), the’’; and (B) by striking ‘‘$125,000’’ and inserting ‘‘$155,000’’; (2) in subsection (c)— (A) by striking ‘‘The’’ and inserting ‘‘Subject to sub- section (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 Con- sumer 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 para- graph (2)(C) received on or after October 1, 2024. ‘‘(ii) FARMING, RANCHING, OR SILVICULTURE ACTIVI- TIES.—The term ‘farming, ranching, or silviculture activities’ includes agri-tourism, direct-to-consumer marketing of agricultural products, the sale of agricul- tural 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.’’. H. R. 1—22 SEC. 10309. MARKETING LOANS. (a) AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR LOAN COMMODITIES.—Section 1201(b)(1) of the Agricul- tural 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 hundred- weight. ‘‘(10) In the case of soybeans, $6.82 per bushel. ‘‘(11) In the case of other oilseeds, $11.10 per hundred- weight 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 hundred- weight. ‘‘(15) In the case of large chickpeas, $15.40 per hundred- weight. ‘‘(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 H. R. 1—23 (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 Sec- retary 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 mar- keting 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 Agricul- tural 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 Agri- cultural 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 fol- lowing: ‘‘(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 H. R. 1—24 ‘‘(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 repay- ment 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 accord- ance 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 subpara- graphs (A) and (B), respectively, and indenting appro- priately; (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) 13⁄32-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 H. R. 1—25 ‘‘(B) may be further adjusted, during the period begin- ning 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 pro- duced 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 STOR- AGE 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 H. R. 1—26 for the storage of forfeited sugar in an amount that is not less than— ‘‘(1) in the case of refined sugar, 34 cents per hundred- weight per month; and ‘‘(2) in the case of raw cane sugar, 27 cents per hundred- weight per month.’’; and (2) in subsection (b)— (A) in the subsection heading, by striking ‘‘SUBSE- QUENT’’ 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 Agricul- tural 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 fol- lowing: ‘‘(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 pri- ority 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 redesig- nated), 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.—Sec- tion 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), fol- lowing the establishment of the tariff-rate quotas under sub- section (a) for a quota year, the Secretary shall— H. R. 1—27 ‘‘(A) determine which countries do not intend to fulfill their allocation for the quota year; and ‘‘(B) reallocate any forecasted shortfall in the fulfill- ment 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 fol- lowing: ‘‘(i) The need for— ‘‘(I) defining ‘refined sugar’ as having a min- imum polarization of 99.8 degrees or higher; ‘‘(II) establishing a standard for color- or reflec- tance-based units for refined sugar such as those utilized by the International Commission of Uni- form Methods of Sugar Analysis; ‘‘(III) prescribing specifications for packaging type for refined sugar; ‘‘(IV) prescribing specifications for transpor- tation 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 condi- tions 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 H. R. 1—28 establishment of additional terms and conditions is appropriate. ‘‘(C) CONSULTATION.—In conducting the study under subparagraph (A), the Secretary shall consult with rep- resentatives 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 Represent- atives 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, Nutri- tion, and Forestry of the Senate, the Secretary may issue regulations in accordance with subparagraph (B) to estab- lish 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 regu- lations— ‘‘(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 Improve- ment 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.—Sec- tion 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 Agricul- tural 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 OPER- ATIONS.—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. H. R. 1—29 ‘‘(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 Agricul- tural 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 avail- able 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— H. R. 1—30 ‘‘(i) to carry out mandatory surveys of dairy produc- tion 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 bienni- ally; 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 deter- mining 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 H. R. 1—31 ‘‘(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 deter- mined 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 deter- mined 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 para- graph, 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; H. R. 1—32 ‘‘(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 pay- ments 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 subpara- graph (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 deter- mining 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 Agricul- tural 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 Fed- eral 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 pay- ment of a portion of premiums, a beginning farmer or rancher shall receive additional premium assistance that is the number of percentage points specified in subpara- graph (B) greater than the premium assistance that would otherwise be available for the applicable policy, plan of H. R. 1—33 insurance, and coverage level selected by the beginning farmer or rancher. ‘‘(B) PERCENTAGE POINTS ADJUSTMENTS.—The percent- age points referred to in subparagraph (A) are the fol- lowing: ‘‘(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 begin- ning 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 begin- ning 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 AFFORD- ABILITY. (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 rev- enue 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 cov- erage (as determined by the Corporation), 95 per- cent.’’; 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 ADJUST- MENTS. 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 reinsur- ance 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 con- tract, the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium. H. R. 1—34 ‘‘(C) DEFINITIONS.—In this paragraph: ‘‘(i) ELIGIBLE CONTRACT.—The term ‘eligible con- tract’— ‘‘(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 adjust- ment expenses, as determined by the Corpora- tion. ‘‘(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 there- after, 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 reinsur- ance 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 para- graph and the adjustments made pursuant to this para- graph shall not be considered a renegotiation under para- graph (8)(A). ‘‘(12) A&O INFLATION ADJUSTMENT.— ‘‘(A) IN GENERAL.—Subject to subparagraph (B), begin- ning with the 2026 reinsurance year, and for each reinsur- ance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agree- ment in effect for the reinsurance year in order to account for inflation, in a manner consistent with the increases H. R. 1—35 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 pre- ceding 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 subpara- graph (A)— ‘‘(i) shall apply with respect to all contracts cov- ering 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 subse- quent 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 sub- clause (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 con- tract poultry growers, including growers of broilers and laying hens, may elect to receive index-based insurance from extreme H. R. 1—36 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 para- graph (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 sec- tion 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 pro- gram, to the maximum extent practicable— H. R. 1—37 ‘‘(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.—Sec- tion 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 PRO- GRAM.—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 appro- priated by section 21001(a) of Public Law 117–169 (136 Stat. 2015) are rescinded. SEC. 10602. SUPPLEMENTAL AGRICULTURAL TRADE PROMOTION PRO- GRAM. (a) IN GENERAL.—The Secretary of Agriculture shall carry out a program to encourage the accessibility, development, mainte- nance, and expansion of commercial export markets for United States agricultural commodities. (b) FUNDING.—Of the funds of the Commodity Credit Corpora- tion, 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’’. H. R. 1—38 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.—Sec- tion 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 sec- tion $37,000,000, to remain available until expended.’’. (c) SCHOLARSHIPS FOR STUDENTS AT 1890 INSTITUTIONS.—Sec- tion 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 Com- modity Credit Corporation, the Secretary shall make avail- able 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: ‘‘sec- tion— ‘‘(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 Facili- ties 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 Invest- ment Act of 2002 (7 U.S.C. 8105(g)(1)(F)) is amended by striking ‘‘2024’’ and inserting ‘‘2031’’. H. R. 1—39 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.—Sec- tion 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— H. R. 1—40 (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 avail- able for each such fiscal year to carry out subsection (a); ‘‘(ii) not less than $70,000,000 shall be made avail- able 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 sub- section (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’’. H. R. 1—41 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 avail- able, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appro- priated, 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 pursu- ant 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 facili- ties; (14) $100,000,000 for the Defense Community Infrastruc- ture 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 AUTHOR- IZED INVESTMENT IN CERTAIN PRIVATIZED MILITARY HOUSING PROJECTS.— H. R. 1—42 (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 GEN- ERAL’’; 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 appro- priated 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 tech- niques; (5) $85,000,000 for United States-made steel plate for ship- building industrial base; (6) $50,000,000 for machining capacity for naval propellers for shipbuilding industrial base; H. R. 1—43 (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 manufac- turing 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 sal- vage ships; (25) $300,000,000 for production of ship-to-shore connec- tors; (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 sur- face 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 mari- time robotic autonomous systems and enabling technologies; (34) $174,000,000 for the development of a Test Resource Management Center robotic autonomous systems proving ground; H. R. 1—44 (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 infra- structure; (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 deploy- ment 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 RESIL- IENCY. (a) APPROPRIATIONS.—In addition to amounts otherwise avail- able, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appro- priated, 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; H. R. 1—45 (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 mis- siles; (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 sup- plier base strengthening of long-range multi-service cruise mis- siles; (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 manufac- turing 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-genera- tion 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 tor- pedoes; (21) $200,000,000 for the development, procurement, and integration of mass-producible autonomous underwater muni- tions; (22) $70,000,000 for the improvement of heavyweight tor- pedo maintenance activities; (23) $200,000,000 for the production of lightweight tor- pedoes; (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; H. R. 1—46 (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 auto- mated 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 guid- ance 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 mov- able 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; H. R. 1—47 (55) $91,000,000 for production of Army next-generation shoulder-fired air defense system; (56) $500,000,000 for development, production, and integra- tion of counter-unmanned aerial systems programs; (57) $350,000,000 for development, production, and integra- tion of non-kinetic counter-unmanned aerial systems programs; (58) $250,000,000 for development, production, and integra- tion of land-based counter-unmanned aerial systems programs; (59) $200,000,000 for development, production, and integra- tion of ship-based counter-unmanned aerial systems programs; (60) $400,000,000 for acceleration of hypersonic strike pro- grams; (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 manu- facturing 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 propel- lant; (66) $250,000,000 for expansion and acceleration of pene- trating munitions production; and (67) $50,000,000 for development, procurement, and integration of precision extended-range artillery. (b) APPROPRIATION.—In addition to amounts otherwise avail- able, there is appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appro- priated, to remain available until September 30, 2029, $3,300,000,000 for grants and purchase commitments made pursu- ant to the Industrial Base Fund established under section 4817 of title 10, United States Code. (c) APPROPRIATION.—In addition to amounts otherwise avail- able, there is appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appro- priated, 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 avail- able, 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 ‘‘Depart- ment 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 obliga- tions 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. H. R. 1—48 SEC. 20005. ENHANCEMENT OF DEPARTMENT OF DEFENSE RESOURCES FOR SCALING LOW-COST WEAPONS INTO PRODUCTION. (a) APPROPRIATIONS.—In addition to amounts otherwise avail- able, there are appropriated to the Secretary of Defense for fiscal year 2025, out of any money in the Treasury not otherwise appro- priated, 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 manage- ment capabilities; (4) $400,000,000 for the expansion of advanced command- and-control tools to combatant commands and military depart- ments; (5) $100,000,000 for the development of shared secure facili- ties 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 Capabili- ties Office programs; (8) $650,000,000 for the expansion of Mission Capabilities office joint prototyping and experimentation activities for mili- tary 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 accel- erate 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; H. R. 1—49 (22) $145,000,000 for the development of artificial intel- ligence 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 manufac- turing technology program; (29) $1,685,000,000 for military cryptographic moderniza- tion activities; (30) $90,000,000 for APEX Accelerators, the Mentor-Pro- tege Program, and cybersecurity support to small non-tradi- tional 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 activi- ties; and (33) $20,000,000 for the Office of Strategic Capital workforce. (b) APPROPRIATIONS.—In addition to amounts otherwise avail- able, 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 ‘‘Depart- ment 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 obliga- tions 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 appro- priated 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 accel- erate 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 H. R. 1—50 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 appro- priated 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 air- craft; (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 air- craft; (11) $750,000,000 accelerate the FA/XX aircraft; (12) $100,000,000 for production of Advanced Aerial Sen- sors; (13) $160,000,000 to accelerate V–22 nacelle and reliability and safety improvements; (14) $100,000,000 to accelerate production of MQ–25 air- craft; (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 Sen- tinel 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; H. R. 1—51 (4) $100,000,000 for capability enhancements to interconti- nental 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, procure- ment, 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 Surviv- able 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, procure- ment, 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, procure- ment, 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 mod- ernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (6) $750,000,000 to accelerate secondary capability mod- ernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); (7) $120,000,000 to accelerate domestic uranium enrich- ment 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 Administra- tion evaluation of spent fuel reprocessing technology; and (9) $115,000,000 for accelerating nuclear national security missions through artificial intelligence. H. R. 1—52 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 appro- priated 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 Depart- ment 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 associ- ated with forces assigned to United States Indo-Pacific Com- mand; (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; H. R. 1—53 (26) $150,000,000 for ground moving target indicator mili- tary 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 pro- gram; (30) $3,650,000,000 for the development, procurement, and integration of United States military satellites and the protec- tion 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 appro- priated 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 moderniza- tion and capacity enhancement; (6) $250,000,000 for Air Force depot modernization and capacity enhancement; (7) $1,640,000,000 for Special Operations Command equip- ment, readiness, and operations; (8) $500,000,000 for National Guard unit readiness; (9) $400,000,000 for Marine Corps readiness and capabili- ties; (10) $20,000,000 for upgrades to Marine Corps utility heli- copters; (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; H. R. 1—54 (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 appro- priated 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 deploy- ment of military personnel in support of border operations, oper- ations 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 appro- priated 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 disrup- tions 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 acquisi- tion, and military family housing functions of each military depart- ment (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 depart- ment 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. H. R. 1—55 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 RET- ROFIT PROGRAM FOR MULTIFAMILY HOUSING. The unobligated balances of amounts made available under section 30002(a) of the Act entitled ‘‘An Act to provide for reconcili- ation 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 Commis- sion, 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 appro- priated for fiscal year 2025, out of amounts not otherwise appro- priated, $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.). H. R. 1—56 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 ‘‘§ 1181. Special appropriations ‘‘In addition to amounts otherwise available, there is appro- priated 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 para- graphs (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 resil- ience 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 acquisi- tion of long-range unmanned aircraft and base stations, equip- ment 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 pro- gram management for such cutters, to provide operational pres- ence 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 pro- gram 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 pro- gram 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 H. R. 1—57 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 Communica- tions and Information. (2) COMMISSION.—The term ‘‘Commission’’ means the Fed- eral 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 H. R. 1—58 (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 commer- cial 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 com- pleting 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 fre- quencies 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 fre- quencies 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 H. R. 1—59 remaining bandwidth required to be identified under para- graph (1). (3) REQUIRED ANALYSIS.— (A) IN GENERAL.—In determining under paragraph (1) which specific frequencies within the covered band to reallo- cate, 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 fre- quency, if the President determines that such modification or with- drawal is necessary to protect the national security of the United States. (f) APPROPRIATION.—In addition to amounts otherwise avail- able, 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 Adminis- tration Organization Act (47 U.S.C. 923(l))), that assesses the value of bands of frequencies in increments of not more than 100 megahertz. H. R. 1—60 SEC. 40003. AIR TRAFFIC CONTROL IMPROVEMENTS. (a) IN GENERAL.—For the purpose of the acquisition, construc- tion, 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 appro- priated, 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 Sys- tems; (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: Pro- vided 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 consoli- dation of terminal radar approach control facilities (in this subsection referred to as ‘‘TRACONs’’), the analysis and identi- fication of TRACONs for divestment, consolidation, or integra- tion, 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 tech- nology 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 H. R. 1—61 to Congress a report that describes any expenditures under this section. SEC. 40004. SPACE LAUNCH AND REENTRY LICENSING AND PERMIT- TING USER FEES. (a) IN GENERAL.—Chapter 509 of title 51, United States Code, is amended by adding at the end the following new section: ‘‘§ 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 estab- lished 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 speci- fied 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 aver- age) over the previous year. ‘‘(3) PARAGRAPH (3) SPECIFIED AMOUNT.—The amount speci- fied 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 aver- age) over the previous year. ‘‘(b) OFFICE OF COMMERCIAL SPACE TRANSPORTATION LAUNCH AND REENTRY LICENSING AND PERMITTING FUND.—There is estab- lished in the Treasury of the United States a separate account, which shall be known as the ‘Office of Commercial Space Transpor- tation Launch and Reentry Licensing and Permitting Fund’, for H. R. 1—62 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 appropria- tion 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: ‘‘§ 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 tele- communications 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 Aero- nautics 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 pro- posals 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 sup- porting 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. H. R. 1—63 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, transpor- tation, 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 Administra- tion 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, recapital- ization, 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, recapital- ization, 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, recapital- ization, 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, recapital- ization, 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 H. R. 1—64 National Aeronautics and Space Administration at Hunts- ville, 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 sub- section (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 trans- ferred 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 des- ignated by the Administrator. ‘‘(3) TRANSFER.—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. ‘‘(c) OBLIGATION OF FUNDS.—Funds appropriated under sub- section (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 Sep- tember 30, 2034.’’. H. R. 1—65 (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 sub- section (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 PRO- MOTION 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’’. H. R. 1—66 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 unobli- gated 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. 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 sub- section 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 imme- diately 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 H. R. 1—67 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 para- graph (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 percent- age 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 H. R. 1—68 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 sub- section 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 measure- ment 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 appro- priate 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 H. R. 1—69 leasing moratoria, the Secretary of the Interior shall con- duct 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 accom- panying the final notice of sale of the Bureau of Ocean Energy Management entitled ‘‘Gulf of Mexico Outer Conti- nental 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 Pro- posed 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); H. R. 1—70 (C) shall set the royalty rate at not less than 121⁄2 percent but not greater than 162⁄3 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 sub- section (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 con- ducted 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 com- pleted 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 para- graph (1)) is amended— H. R. 1—71 (A) in subparagraph (A), by striking ‘‘not less than 121⁄2 per centum’’ and inserting ‘‘not less than 121⁄2 percent, but not more than 162⁄3 percent,’’; (B) in subparagraph (C), by striking ‘‘not less than 121⁄2 per centum’’ and inserting ‘‘not less than 121⁄2 percent, but not more than 162⁄3 percent,’’; (C) in subparagraph (F), by striking ‘‘no less than 121⁄2 per centum’’ and inserting ‘‘not less than 121⁄2 percent, but not more than 162⁄3 percent,’’; and (D) in subparagraph (H), by striking ‘‘no less than 12 and 1⁄2 per centum’’ and inserting ‘‘not less than 121⁄2 percent, but not more than 162⁄3 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— H. R. 1—72 (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 Environ- mental 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. H. R. 1—73 (b) RESTORATION OF NPR–A OIL AND GAS LEASING PROGRAM.— Effective beginning on the date of enactment of this Act, the Sec- retary shall expeditiously restore and resume oil and gas lease sales under the Program for domestic energy production and Federal revenue in the areas designated for oil and gas leasing as described in the NPR–A final environmental impact statement and the NPR– A record of decision. (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 fol- lowing: ‘‘(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 THERE- AFTER.—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). H. R. 1—74 (2) QUALIFIED APPLICATION.—The term ‘‘qualified applica- tion’’ 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 sub- mitted 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 ‘‘121⁄2 per centum’’ and inserting ‘‘121⁄2 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 Con- gress) 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 H. R. 1—75 (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. TIMBER SALES AND LONG-TERM CONTRACTING FOR THE FOREST SERVICE AND THE BUREAU OF LAND MANAGE- MENT. (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 Sec- retary 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 H. R. 1—76 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 Sec- retary 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 Manage- ment 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 sub- paragraphs (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 Sec- retary 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. H. R. 1—77 (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 exten- sions or renewals, as determined by the Secretary. (C) RECEIPTS.—Any monies derived from a contract entered into to meet the requirements under subpara- graphs (A) and (B) shall be deposited in the general fund of the Treasury. SEC. 50302. 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 Fed- eral Land Policy and Management Act of 1976 (43 U.S.C. 1702)); and (B) National Forest System land. H. R. 1—78 (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 col- lected under paragraph (1) shall be determined using the following equation: Acreage rent = A × B × ((1 + C)D)). (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 Sec- retary apply a multiple-use reduction factor of 10-percent to the amount of a capacity fee determined under para- graph (2) by submitting to the Secretary an application at such time, in such manner, and containing such informa- tion as the Secretary may require. H. R. 1—79 (B) APPROVAL.—The Secretary may approve an applica- tion 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. 50303. RENEWABLE ENERGY REVENUE SHARING. (a) DEFINITIONS.—In this section: (1) COUNTY.—The term ‘‘county’’ includes a parish, town- ship, 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— H. R. 1—80 (A) public lands (as defined in section 103 of the Fed- eral 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 limita- tion, 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 rev- enue 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 pay- ment 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. 50304. 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 (com- monly 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). H. R. 1—81 SEC. 50305. CELEBRATING AMERICA’S 250TH ANNIVERSARY. In addition to amounts otherwise available, there is appro- priated 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 avail- able, there is appropriated to the Department of Energy for fiscal year 2025, out of any money in the Treasury not otherwise appro- priated, 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 Petro- leum Reserve; and (2) $171,000,000 to acquire, by purchase, petroleum prod- ucts 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 para- graph (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; H. R. 1—82 (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 main- tain or enhance grid reliability or other system adequacy needs.’’; (2) by striking subsection (c); (3) by redesignating subsections (d) through (f) as sub- sections (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, produc- tion, 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 avail- able, there is appropriated to the Secretary for fiscal year 2025, out of any money in the Treasury not otherwise appro- priated, $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 uti- lizing 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 intel- ligence’’ 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 H. R. 1—83 (2) initiate seed efforts for self-improving artificial intel- ligence 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 appro- priated to the Secretary of the Interior, acting through the Commis- sioner 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 associ- ated 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. H. R. 1—84 SEC. 60003. RESCISSION OF FUNDING FOR DIESEL EMISSIONS REDUC- TIONS. 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 ELEC- TRICITY 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 TECH- NOLOGY 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 COR- PORATE 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 PETRO- LEUM 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. H. R. 1—85 (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 PROTEC- TION 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 CLI- MATE 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 CLI- MATE 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 ASSIST- ANCE. 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. H. R. 1—86 SEC. 60023. RESCISSION OF ENVIRONMENTAL REVIEW IMPLEMENTA- TION 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 MATE- RIALS 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 struc- tures 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 environ- mental 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 para- graph (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. H. R. 1—87 ‘‘(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 environ- mental 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.—Para- graph (7) of section 63(c) is amended— (1) by striking ‘‘$18,000’’ both places it appears in subpara- graphs (A)(i) and (B)(ii) and inserting ‘‘$23,625’’, H. R. 1—88 (2) by striking ‘‘$12,000’’ both places it appears in subpara- graphs (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 EXEMP- TIONS 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 tax- payer. ‘‘(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 tax- able 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 H. R. 1—89 7703), this subparagraph shall apply only if the tax- payer 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 Secu- rity 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.—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 H. R. 1—90 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 sub- section 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 sub- section— ‘‘(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 H. R. 1—91 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 materi- ally 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 PHASE- OUT 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— H. R. 1—92 ‘‘(1) ‘calendar year 2017’, in the case of the $109,400 amount in subparagraph (A)(i)(I) and the $70,300 amount in subpara- graph (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 per- cent’, 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 sub- clauses (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 subpara- graph (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 CAS- UALTY 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 dis- aster’ means, with respect to any State, any natural catastrophe (including any hurricane, tornado, storm, high water, wind-driven water, tidal wave, tsunami, H. R. 1—93 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 DEDUC- TIONS 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 redesig- nating 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 ‘, inter- scholastic 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 H. R. 1—94 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 DEDUC- TION 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 HORTI- CULTURAL 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 TRANSPOR- TATION 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 subpara- graph (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 INTEL- LIGENCE 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 assign- ment which requires relocation shall be treated for purposes H. R. 1—95 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 INTEL- LIGENCE 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 LIMITA- TION 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 sub- section, 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: H. R. 1—96 ‘‘(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 indi- vidual 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 con- tributions (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 com- pensation 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 contribu- tions by such individual to any qualified retirement plan (as defined in section 4974(c)).’’. (2) COORDINATION WITH SECURE 2.0 ACT OF 2022 AMEND- MENT.—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 para- graph 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 sub- section 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 HAZ- ARDOUS 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 H. R. 1—97 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 fol- lows: ‘‘(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: H. R. 1—98 ‘‘(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 tax- able years beginning in the preceding calendar year. ‘‘(iii) LIMITATION ON REDUCTION.—The reduction under clause (i) shall not result in the applicable limita- tion amount being less than $10,000. ‘‘(iv) MODIFIED ADJUSTED GROSS INCOME.—For pur- poses of this paragraph, the term ‘modified adjusted H. R. 1—99 gross income’ means adjusted gross income increased by any amount excluded from gross income under sec- tion 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 PRIOR- ITIES 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 suc- cessor). ‘‘(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 deduc- tion 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 custom- arily 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 con- sequence in the event of nonpayment, is not the subject of negotiation, and is determined by the payor, H. R. 1—100 ‘‘(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 satis- fied. 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 indi- vidual (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 regula- tions or other guidance as may be necessary to prevent reclassifica- tion 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 subpara- graph: ‘‘(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.— H. R. 1—101 (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 ‘‘with- out 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 para- graph (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 H. R. 1—102 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 para- graph (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 dele- gate) 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 Sec- retary’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 approxi- mate a separate accounting of amounts designated as cash tips by any reasonable method specified by the Secretary. H. R. 1—103 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 deduc- tion 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 quali- fied 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 indi- vidual (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 H. R. 1—104 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 para- graph (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 subpara- graph: ‘‘(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 provi- sions 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 Sec- retary’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 com- pensation 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 H. R. 1—105 accounting of amounts designated as qualified overtime compensa- tion 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 begin- ning 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 tax- payer 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 pas- senger 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 other- wise 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 H. R. 1—106 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 pur- poses 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 pur- poses of this paragraph— ‘‘(i) FINAL ASSEMBLY.—For purposes of subpara- graph (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 oper- ation 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 indebted- ness 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: H. R. 1—107 ‘‘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 cal- endar year, ‘‘(C) the amount of outstanding principal on the speci- fied 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 pre- scribe. ‘‘(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 informa- tion 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 ‘speci- fied 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 H. R. 1—108 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 sub- chapter A of chapter 61 is amended by adding at the end the following new item: ‘‘Sec. 6050AA. Returns relating to applicable passenger vehicle loan interest re- ceived in trade or business from individuals.’’. (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 H. R. 1—109 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 contribu- tion. ‘‘(B) The account is designated (in such manner as the Secretary shall prescribe) at the time of the establish- ment 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 con- tributions (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 dis- tribution 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, H. R. 1—110 ‘‘(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 primarily United States companies, and ‘‘(II) for which regulated futures contracts (as defined in section 1256(g)(1)) are traded on a quali- fied 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 contribu- tions (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 taxable 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 in which the taxable year begins, determined by sub- stituting ‘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 lowest 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.— H. R. 1—111 ‘‘(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 con- tribution 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 bene- ficiary 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 pay- ment 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— H. R. 1—112 ‘‘(i) if such person is not the estate of such bene- ficiary, 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 bene- ficiary in the qualified class of account beneficiaries speci- fied 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 contribu- tion, 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 bene- ficiaries 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 H. R. 1—113 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 INDI- VIDUAL 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 begin- ning 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 con- tribution 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 sec- tion 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 sub- section (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 H. R. 1—114 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 contribu- tion 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 sec- tion 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 quali- fied 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: H. R. 1—115 ‘‘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 the calendar year in which the taxable year begins 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 next lowest 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 require- ments 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: H. R. 1—116 ‘‘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, and ‘‘(3) who is a United States citizen. ‘‘(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 tax- payer unless such individual includes with the election made under this section 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 subpara- graph (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 deter- mined 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: H. R. 1—117 ‘‘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 dis- regard 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). H. R. 1—118 (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 sub- clauses (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 per- cent’’. (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, para- graph (1)(A) shall be applied— ‘‘(i) in the case of property which is not described in clause (ii), by substituting ‘40 percent’ for ‘100 per- cent’, or ‘‘(ii) in the case of property which is described in subparagraph (B) or (C) of paragraph (2), by sub- stituting ‘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.— H. R. 1—119 (1) IN GENERAL.—Except as otherwise provided in this sub- section, 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 EXPERI- MENTAL 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 tax- payer during the taxable year. ‘‘(b) DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES.— For purposes of this section, the term ‘domestic research or experi- mental 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 attrib- utable to foreign research (within the meaning of section 41(d)(4)(F)). ‘‘(c) AMORTIZATION OF CERTAIN DOMESTIC RESEARCH OR EXPERI- MENTAL 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 pro- vided 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 H. R. 1—120 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 expendi- tures. 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 sec- tion 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 sec- tion, 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 experi- mental 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 experi- mental 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: H. R. 1—121 ‘‘(1) IN GENERAL.—The domestic research or experimental expenditures (as defined in section 174A(b)) otherwise taken into account as a deduction or charged to capital account under this chapter 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.—Sec- tion 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 expendi- tures within the meaning of section 174’’ in the first sen- tence 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 expendi- tures under section 174 or domestic research or experimental expenditures under section 174A’’. H. R. 1—122 (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 expendi- tures (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 adjust- ments 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 para- graph (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 expendi- tures (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 sub- section or subsection (f)(1), the amendments made by this sec- tion 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 sub- section (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 amend- ment 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. H. R. 1—123 (f) TRANSITION RULES.— (1) ELECTION FOR RETROACTIVE APPLICATION BY CERTAIN SMALL BUSINESSES.— (A) IN GENERAL.—At the election of an eligible tax- payer, 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 subpara- graph 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 para- graph, 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. H. R. 1—124 (B) CHANGE IN METHOD OF ACCOUNTING.—In the case of a taxpayer who makes an election under this para- graph— (i) such taxpayer shall be treated as initiating a change in method of accounting for purposes of sec- tion 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 rec- reational, 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 Sec- retary of the Treasury (or the Secretary’s delegate) may pre- scribe 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 fol- lowing: ‘‘(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 H. R. 1—125 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 REA- SON.—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 ‘‘com- pensation’’, 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 H. R. 1—126 (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 CER- TAIN 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 H. R. 1—127 ‘‘(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 PROP- ERTY.— ‘‘(1) IN GENERAL.—In the case of any qualified production property of a taxpayer making an election under this sub- section— ‘‘(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 prop- erty 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 prop- erty’ means that portion of any nonresidential real prop- erty— ‘‘(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 PRE- VIOUSLY USED IN QUALIFIED PRODUCTION ACTIVITIES.— ‘‘(i) IN GENERAL.—In the case of property acquired by the taxpayer during the period described in subpara- graph (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 H. R. 1—128 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 tax- payer 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 manufac- turing, 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, produc- tion, 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 prop- erty 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 Com- prehensive 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.— H. R. 1—129 ‘‘(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 prop- erty 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 dis- posed 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 subpara- graph (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 des- ignated 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 Sec- retary may prescribe by regulations or other guidance. ‘‘(B) ELECTION.—Any election made under this sub- section, and any specification contained in any such elec- tion, 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 regula- tions or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regula- tions 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 H. R. 1—130 ‘‘(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 SEC- TION 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 INVEST- MENT 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 fol- lows: ‘‘(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 prox- imity to a launch site or reentry site used for— ‘‘(A) manufacturing, assembling, or repairing space- craft, space cargo, other facilities described in this para- graph, 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 trans- ported 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’, H. R. 1—131 ‘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.—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 PROHIBI- TION.—Section 149(b)(3) is amended by adding at the end the fol- lowing 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 FOR- EIGN 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 allo- cating 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 ‘‘para- graph (1)(B)’’ and inserting ‘‘paragraph (1)(D)’’. H. R. 1—132 (2) Section 904(d)(4)(C)(ii) is amended by striking ‘‘para- graph (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 foreign income taxes paid or accrued (or deemed paid under section 960(b)(1) of the Internal Revenue Code of 1986) with respect to any amount excluded from gross income under section 959(a) of such Code by reason of an inclusion in gross income under section 951A(a) of such Code after June 28, 2025. SEC. 70313. SOURCING CERTAIN INCOME FROM THE SALE OF INVEN- TORY 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 H. R. 1—133 ‘‘(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 ELI- GIBLE INCOME AND NET CFC TESTED IN- COME 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 Sec- retary, any income and gain from the sale or other disposition (including pursuant to the deemed sale or other deemed disposition or a transaction sub- ject 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 sub- section shall apply to sales or other dispositions (including pursuant to deemed sales or other deemed dispositions or 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.— H. R. 1—134 (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 experi- mental expenditures, properly allocable to such gross income.’’. (2) EFFECTIVE DATE.—The amendment made by this sub- section 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 intan- gible 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 subpara- graph (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.— H. R. 1—135 (1) IN GENERAL.—Section 250(a)(1)(A) is amended by striking ‘‘foreign-derived intangible income’’ and inserting ‘‘for- eign-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 MIN- IMUM 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 para- graphs (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 para- graph (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’’. H. R. 1—136 (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 ‘‘sub- section (h)’’, and (B) by striking ‘‘subsection (g)(3)’’ and inserting ‘‘sub- section (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 PROVI- SIONS.— ‘‘(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 capital- ized, 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 for- ward under paragraph (2) from any taxable year to any succeeding taxable year shall, for purposes of this title (including any interest capitalization provision which pre- viously applied to such portion) be treated as interest to which an interest capitalization provision applies. ‘‘(D) INTEREST CAPITALIZATION PROVISION.—For pur- poses of this section, the term ‘interest capitalization provi- sion’ 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).’’. H. R. 1—137 (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 appro- priate 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 BUSI- NESS 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 rea- son 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 DETER- MINATION OF TAXABLE YEAR OF SPECIFIED FOREIGN CORPORATIONS. (a) IN GENERAL.—Section 898(c) is amended by striking para- graph (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 begin- ning 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— H. R. 1—138 (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 guid- ance 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 Sec- retary’s delegate. SEC. 70353. RESTORATION OF LIMITATION ON DOWNWARD ATTRIBU- TION OF STOCK OWNERSHIP IN APPLYING CONSTRUC- TIVE 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 CON- TROLLED 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 (sepa- rately 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 corpora- tion’ 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 share- holder’ 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— H. R. 1—139 ‘‘(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 para- graph (4) thereof. ‘‘(c) FOREIGN CONTROLLED FOREIGN CORPORATION.—For pur- poses of this section, the term ‘foreign controlled foreign corporation’ means a foreign corporation, other than a controlled foreign corpora- tion, which would be a controlled foreign corporation if section 957(a) were applied— ‘‘(1) by substituting ‘foreign controlled United States share- holders’ 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 regula- tions 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 compa- nies (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 including references to foreign controlled United States shareholders, and by treating references to con- trolled foreign corporations as including 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 sub- part. (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.— H. R. 1—140 ‘‘(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 cor- poration on any day during the CFC year shall include in gross income such shareholder’s pro rata share (deter- mined 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 cor- poration 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 cor- poration’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 share- holder of such corporation, and ‘‘(iii) such corporation was a controlled foreign cor- poration. ‘‘(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 pre- scribe 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 disposi- tion of stock of such corporation.’’. (b) COORDINATION WITH SECTION 951A.— (1) TESTED INCOME.—Section 951A(b), as redesignated by section 70323(a)(2), is amended— (A) in paragraph (1)(A), by striking ‘‘(determined for each taxable year of such controlled foreign corporation which ends in or with such taxable year of such United States shareholder)’’, and (B) in paragraph (1)(B), by striking ‘‘(determined for each taxable year of such controlled foreign corporation which ends in or with such taxable year of such United States shareholder)’’. H. R. 1—141 (2) PRO RATA SHARE.—Section 951A(c), as redesignated by section 70323(a)(2), is amended— (A) 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 (B) 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.—Except to the extent provided by the Secretary of the Treasury (or the Secretary’s delegate), a dividend paid (or deemed paid) by a controlled foreign corporation shall not be treated as a dividend for pur- poses 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 that is subject to Federal income tax for the taxable year (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 EXPENDI- TURES 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.— H. R. 1—142 ‘‘(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 $500,000 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.—Sec- tion 45F(c)(1)(A)(iii) is amended by inserting ‘‘, or under a contract with an intermediate entity that contracts with one or more quali- fied 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 para- graphs (3) and (4) of subsection (a) and paragraphs (1) and H. R. 1—143 (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 para- graph (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 PUR- POSES OF DETERMINING WHETHER A CHILD HAS SPE- CIAL 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 per- cent— ‘‘(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 H. R. 1—144 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 $1,700. ‘‘(2) 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) COVERED STATE.—The term ‘covered State’ means one of the States, or the District of Columbia, that, for a calendar year, voluntarily elects to participate under this section and to identify scholarship granting organizations in the State, in accordance with subsection (g). ‘‘(2) 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. ‘‘(3) QUALIFIED CONTRIBUTION.—The term ‘qualified con- tribution’ means a charitable contribution of cash to a scholar- ship granting organization that uses the contribution to fund scholarships for eligible students solely within the State in which the organization is listed pursuant to subsection (g). ‘‘(4) QUALIFIED ELEMENTARY OR SECONDARY EDUCATION EXPENSE.—The term ‘qualified elementary or secondary edu- cation expense’ means any expense of an eligible student which is described in section 530(b)(3)(A). H. R. 1—145 ‘‘(5) 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) which prevents the co-mingling of qualified con- tributions with other amounts by maintaining one or more separate accounts exclusively for qualified contributions, ‘‘(C) which satisfies the requirements of subsection (d), and ‘‘(D) which is included on the list submitted for the applicable covered State under subsection (g) for the applicable year. ‘‘(d) REQUIREMENTS FOR SCHOLARSHIP GRANTING ORGANIZA- TIONS.— ‘‘(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 the income of the organization on scholarships for eligible students, ‘‘(C) such organization does not provide scholarships for any expenses other than qualified elementary or sec- ondary 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 stu- dents who have a sibling who was awarded a scholar- ship from such organization, ‘‘(E) such organization does not earmark or set aside contributions for scholarships on behalf of any particular student, and ‘‘(F) such organization— ‘‘(i) verifies the annual household income and family size of eligible students who apply for scholar- ships to ensure such students meet the requirement of subsection (c)(2)(A), 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)(2)(A). ‘‘(2) PROHIBITION ON SELF-DEALING.— ‘‘(A) IN GENERAL.—A scholarship granting organization may not award a scholarship to any disqualified person. ‘‘(B) DISQUALIFIED PERSON.—For purposes of this para- graph, 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.— H. R. 1—146 ‘‘(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 sec- tion, 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) STATE LIST OF SCHOLARSHIP GRANTING ORGANIZATIONS.— ‘‘(1) LIST.— ‘‘(A) IN GENERAL.—Not later than January 1 of each calendar year (or, with respect to the first calendar year for which this section applies, as early as practicable), a State that voluntarily elects to participate under this section shall provide to the Secretary a list of the scholar- ship granting organizations that meet the requirements described in subsection (c)(5) and are located in the State. ‘‘(B) PROCESS.—The election under this paragraph shall be made by the Governor of the State or by such other individual, agency, or entity as is designated under State law to make such elections on behalf of the State with respect to Federal tax benefits. ‘‘(2) CERTIFICATION.—Each list submitted under paragraph (1) shall include a certification that the individual, agency, or entity submitting such list on behalf of the State has the authority to perform this function. ‘‘(h) 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 regula- tions or other guidance— ‘‘(1) providing for enforcement of the requirements under subsections (d) and (g), 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 SEC- ONDARY 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 H. R. 1—147 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) EFFECTIVE DATE.— (1) IN GENERAL.—Except as otherwise provided in this sub- section, 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 sub- section: ‘‘(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 TUI- TION.—Any reference in this section to the term ‘qualified higher education expense’ shall include a reference to the fol- lowing 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. H. R. 1—148 ‘‘(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 institu- tion, 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 disabil- ities 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 sub- section 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 sub- section 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 sub- section: ‘‘(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 pro- gram, 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), H. R. 1—149 ‘‘(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 creden- tial. ‘‘(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 suc- cessor 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 main- tain 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 rep- utable 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 suc- cessor 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 Oppor- tunity Act (29 U.S.C. 3102(52)), provided through a pro- gram described in paragraph (2)(A).’’. H. R. 1—150 (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 institu- tion 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 car- rying 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 stu- dents 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 deter- mined 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 edu- cational institution (or any related organization) as gross investment income. H. R. 1—151 ‘‘(B) FEDERALLY-SUBSIDIZED ROYALTY INCOME.— ‘‘(i) IN GENERAL.—Net investment income shall be determined by taking into account any Federally-sub- sidized royalty income as gross investment income. ‘‘(ii) FEDERALLY-SUBSIDIZED ROYALTY INCOME.—For purposes of this subparagraph— ‘‘(I) IN GENERAL.—The term ‘Federally-sub- sidized royalty income’ means any otherwise-regu- latory-exempt royalty income if any Federal funds were used in the research, development, or cre- ation 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 subpara- graph) would not be taken into account as gross investment income by reason of being derived from patents, copyrights, or other intellectual or intan- gible 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 pay- ment 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 edu- cational 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 sub- section, 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 regula- tions or other guidance as may be necessary to prevent avoidance of the tax under this section, including regulations or other guidance H. R. 1—152 to prevent avoidance of such tax through the restructuring of endow- ment 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 institu- tion described in section 4968(c) which is subject to the require- ments 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 COMPENSA- TION 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 OPPOR- TUNITY 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). H. R. 1—153 (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 subparagraph (B), 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 para- graph (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 H. R. 1—154 January 1 following the date on which such qualified oppor- tunity zone was certified and designated by the Secretary under subsection (b)(1)(B).’’. (4) EFFECTIVE DATE.—The amendments made by this sub- section 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.—Sec- tion 1400Z-2(b) is amended to read as follows: ‘‘(b) DEFERRAL OF GAIN INVESTED IN OPPORTUNITY ZONE PROP- ERTY.— ‘‘(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 invest- ment 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 SUB- SECTION (a)(1)(B).—The basis in the investment shall be increased by the amount of gain recognized by rea- son of subsection (a)(1)(B) with respect to such invest- ment. ‘‘(iii) INVESTMENTS HELD FOR 5 YEARS.— ‘‘(I) IN GENERAL.—In the case of any invest- ment 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 invest- ment 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 pur- poses of subparagraph (B)(iii)— H. R. 1—155 ‘‘(i) QUALIFIED RURAL OPPORTUNITY FUND.—The term ‘qualified rural opportunity fund’ means a quali- fied 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 adja- cent 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 PROP- ERTY.— (A) QUALIFIED OPPORTUNITY ZONE BUSINESS PROP- ERTY.—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 PARTNER- SHIP 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 subpara- graph, the term ‘applicable date’ means, with respect to H. R. 1—156 any corporation or partnership which is a qualified oppor- tunity zone business, the earliest date described in subpara- graph (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 quali- fied 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, H. R. 1—157 ‘‘(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 cor- poration or partnership on each such date which is owned by such corporation or partnership, ‘‘(F) the value of tangible property held by such cor- poration 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 partner- ship 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 oppor- tunity 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 residen- tial 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 identi- fied by the Secretary) or such other indication of the employ- ment impact of such trades or businesses as determined appro- priate by the Secretary, ‘‘(8) with respect to each person who disposed of an invest- ment 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— H. R. 1—158 ‘‘(1) the name, address, and phone number of the informa- tion 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 ‘quali- fied 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 para- graph (1)) to qualified rural opportunity zone stock, a qualified rural opportunity zone partnership interest, a qualified rural opportunity zone business, or qualified opportunity zone busi- ness 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 OPPOR- TUNITY 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 regula- tions 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 oppor- tunity zone business’ means any qualified opportunity zone busi- ness— ‘‘(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. H. R. 1—159 ‘‘(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 ‘quali- fied opportunity’ each place it appears, and ‘‘(2) by treating any reference (after the application of para- graph (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 sub- stituting ‘calendar year 2024’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof. ‘‘(2) ROUNDING.— ‘‘(A) IN GENERAL.—If the $500 dollar amount in sub- section (a) and (c)(1) or the $2,500 amount in subsection (c)(1), after being increased under paragraph (1), is not H. R. 1—160 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 TAX- PAYERS.—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 subpara- graph (MM) and inserting a comma, and (iii) by inserting after subparagraph (MM) the fol- lowing new subparagraphs: ‘‘(NN) section 6039K(c) (relating to disposition of quali- fied 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 sub- section 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 avail- able, 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 H. R. 1—161 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 fol- lowing 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 des- ignated 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 cre- ation, 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 sub- mitted 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 H. R. 1—162 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 quali- fied opportunity zone. (ii) CONTROL GROUPS.—For purposes of clause (i), the Secretary may combine population census tracts into such groups as the Secretary determines appro- priate 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 resi- dents of the population census tract spent on rent annually. (VII) The number of residences in the popu- lation census tract. (VIII) The rate of home ownership in the popu- lation 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 Sec- retary— (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 H. R. 1—163 (B) if necessary to protect taxpayer return information, may combine information required with respect to indi- vidual 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, busi- ness, 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 sub- section 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), para- graph (1) shall not apply to any portion of the credit allow- able 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 H. R. 1—164 ‘‘(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 sub- section shall apply to buildings placed in service in taxable years beginning after December 31, 2025. (B) REHABILITATION EXPENDITURES TREATED AS SEPA- RATE 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 fol- lowing: ‘‘(B) LIMITATION.—No amount may be carried under subparagraph (A) to any calendar year afer the fifth cal- endar 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 PAR- TIAL 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 H. R. 1—165 for the taxable year. The preceding sentence shall be applied— ‘‘(i) first, by taking into account charitable con- tributions to which subparagraph (D) applies to the extent thereof, ‘‘(ii) second, by taking into account charitable con- tributions to which subparagraph (C) applies to the extent thereof, ‘‘(iii) third, by taking into account charitable con- tributions to which subparagraph (B) applies to the extent thereof, ‘‘(iv) fourth, by taking into account charitable con- tributions to which subparagraph (E) applies to the extent thereof, ‘‘(v) fifth, by taking into account charitable con- tributions to which subparagraph (A) applies to the extent thereof, and ‘‘(vi) sixth, by taking into account charitable con- tributions to which subparagraph (G) applies to the extent thereof.’’. (2) APPLICATION OF CARRYFORWARD.—Paragraph (1) of sec- tion 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 carry- over 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 sub- section (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: H. R. 1—166 ‘‘(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 subpara- graph (B)’’ and all that follows through ‘‘this subpara- graph’’. (B) OTHER CONTRIBUTIONS.—Subparagraph (B) of sec- tion 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 subpara- graph (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 CON- TRIBUTIONS MADE BY CORPORATIONS. (a) IN GENERAL.—Section 170(b)(2)(A) is amended to read as follows: ‘‘(A) IN GENERAL.—Any charitable contribution other- wise 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 aggre- gate 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 H. R. 1—167 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 contribu- tion 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 sub- stituting ‘clause (i) or (ii)’ for ‘clause (ii)’. ‘‘(D) SPECIAL RULE FOR NET OPERATING LOSS CARRYOVERS.—The amount of charitable contributions car- ried forward under subparagraph (A) shall be reduced to the extent that such carryfoward would (but for this subparagraph) reduce taxable income (as computed for pur- poses 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 H. R. 1—168 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 har- vesting, 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 redesig- nated, 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 H. R. 1—169 ‘‘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 in taxable years beginning 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 sec- tion 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 PREF- ERENCE.— (A) IN GENERAL.—Section 57(a)(7) is amended by striking ‘‘An amount’’ and inserting ‘‘In the case of stock H. R. 1—170 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 PREF- ERENCE.—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 tax- payer 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 H. R. 1—171 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 tax- payer after the applicable date exceeds the applicable dollar limit, then notwithstanding any increase under subpara- graph (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 sub- stituting ‘$5,000,000’ for ‘$10,000,000’, and ‘‘(ii) paragraph (4)(B) shall be applied by sub- stituting 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 sub- section 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 para- graphs (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 sub- section shall apply to stock issued after the date of the enact- ment of this Act. H. R. 1—172 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 organiza- tion shall be required to report any information under subsection (a) with respect to third party network transactions of any partici- pating 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 sub- section shall take effect as if included in section 9674 of the American Rescue Plan Act. (b) APPLICATION OF DE MINIMIS RULE FOR THIRD PARTY NET- WORK 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 TRANS- ACTIONS MADE IN PRIOR YEAR WERE REPORTABLE.—Subpara- graph (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 pay- ments.’’. (2) EFFECTIVE DATE.—The amendment made by this sub- section 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’’. H. R. 1—173 (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 ‘cal- endar 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 SERV- ICES.—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 ‘‘quali- fied 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.—Para- graph (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 quali- fied sound recording productions in the taxable year, as exceeds $150,000.’’. (c) NO OTHER DEDUCTION OR AMORTIZATION DEDUCTION ALLOW- ABLE.—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 produc- tion’’. (d) ELECTION.—Section 181(c)(1) is amended by striking ‘‘quali- fied film or television production or any qualified live theatrical H. R. 1—174 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.—Sec- tion 181 is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after sub- section (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 redesig- nated 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 produc- tions’’. (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 allow- able under section 181 without regard to sub- sections (a)(2) and (h) of such section or this sub- section, 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 sub- sections (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: H. R. 1—175 ‘‘SEC. 139L. INTEREST ON LOANS SECURED BY RURAL OR AGRICUL- TURAL 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 estab- lished 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 require- ments 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 sec- tion— ‘‘(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— H. R. 1—176 ‘‘(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.—In the case of any qualified real estate loan, section 265 shall be applied— ‘‘(1) by treating any qualified real estate loan for purposes of subsection (a)(2) thereof as an obligation the interest on which is wholly exempt from the taxes imposed by this subtitle, ‘‘(2) by substituting ‘25 percent of the interest on indebted- ness’ for ‘Interest on indebtedness’ in such subsection (a)(2), ‘‘(3) by treating 25 percent of the adjusted basis of any qualified real estate loan as adjusted basis of a tax-exempt obligation described in subsection (b)(4)(B) thereof, and ‘‘(4) by substituting ‘25 percent of the amount of such indebtedness’ for ‘the amount of such indebtedness’ in sub- section (b)(6)(A)(a)(ii) thereof.’’. (b) CLERICAL AMENDMENT.—The table of sections for part III of subchapter B of chapter 1, as amended by the preceding provi- sions 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 fire- arms 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.’’ H. R. 1—177 (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 CER- TAIN 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 FARM- LAND 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 exten- sion 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 install- ments 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 H. R. 1—178 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 neg- ligence, 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 tax- able year determined without regard to any gain recog- nized 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 prop- erty’ 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). H. R. 1—179 ‘‘(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 quali- fied 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 DIS- ASTER-RELATED PERSONAL CASUALTY LOSSES. For purposes of applying section 304(b) of the Taxpayer Cer- tainty and Disaster Tax Relief Act of 2020 (division EE of Public Law 116–260), section 301 of such Act shall be applied by sub- stituting the date of the enactment of this section for ‘‘the date of the enactment of this Act’’ each place it appears. SEC. 70439. RESTORATION OF TAXABLE REIT SUBSIDIARY ASSET TEST. (a) IN GENERAL.—Section 856(c)(4)(B)(ii) is amended by striking ‘‘20 percent’’ and inserting ‘‘25 percent’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 2025. 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)— H. R. 1—180 (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 IMPROVE- MENT 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 PROP- ERTY. (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. H. R. 1—181 (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to property the construction of which begins after December 31, 2024. SEC. 70510. MODIFICATIONS OF ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT. (a) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI- TIES.—Section 45U(c) is amended by adding at the end the following new paragraph: ‘‘(3) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI- TIES.— ‘‘(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) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. 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 ELEC- TRICITY 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 para- graph, 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 construc- tion 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).’’. H. R. 1—182 (b) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI- TIES.—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, 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 ENTI- TIES.— ‘‘(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 sec- tion 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 deter- mination relates to a qualified facility described in sub- section (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 subpara- graph (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 com- pany operating in the United States in accordance H. R. 1—183 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 govern- ment 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 perma- nent 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) con- trolled (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 pursu- ant 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 stor- age technology of the taxpayer (or any person related to the taxpayer), or H. R. 1—184 ‘‘(bb) with respect to any eligible compo- nent produced by the taxpayer (or any person related to the taxpayer)— ‘‘(AA) the extraction, processing, or recycling of any applicable critical min- eral, or ‘‘(BB) the production of an eligible component which is not an applicable crit- ical mineral. ‘‘(ii) EFFECTIVE CONTROL.— ‘‘(I) IN GENERAL.— ‘‘(aa) GENERAL RULE.—Subject to sub- clause (II), for purposes of clause (i)(II), the term ‘effective control’ means 1 or more agree- ments 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 compo- nents, 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 unre- stricted 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 elec- tricity 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 pur- chase 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 H. R. 1—185 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 sub- clause (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 related to such licensing agreement) with respect 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 produc- tion unit that produces an eligible compo- nent. ‘‘(CC) A contractual right retained by the contractual counterparty to limit the taxpayer’s utilization of intellectual prop- erty 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 H. R. 1—186 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 for- eign entity. ‘‘(GG) Such contract, agreement, or other arrangement was entered into (or modified) on or after the date of enactment of this paragraph. ‘‘(bb) EXCEPTION.— ‘‘(AA) IN GENERAL.—Item (aa) shall not apply in the case of a bona fide pur- chase or sale of intellectual property. ‘‘(BB) BONA FIDE PURCHASE OR SALE.—For purposes of item (aa), any pur- chase or sale of intellectual property where the agreement provides that owner- ship 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 pur- poses of this clause, the term ‘contractual counterparty’ means an entity with which the tax- payer 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 subpara- graph, including establishment of rules to prevent enti- ties from evading, circumventing, or abusing the application of the restrictions against impermissible technology licensing arrangements with specified for- eign entities, such as through temporary transfers of intellectual property, retention by a specified foreign entity of a reversionary interest in transferred intellec- tual 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 securi- ties 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 estab- lished pursuant to section 11A of the Securi- ties and Exchange Act of 1934, or ‘‘(cc) any other exchange or other market which the Secretary has determined in guid- ance issued under section 1296(e)(1)(A)(ii) has H. R. 1—187 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 bene- ficial ownership under Rule 13d-3 of the Secu- rities and Exchange Act of 1934 own, in the H. R. 1—188 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 for- eign entities. ‘‘(F) COVERED OFFICER.—For purposes of this para- graph, 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 presi- dent, chief executive officer, chief operating officer, chief financial officer, general counsel, or senior vice president, or ‘‘(iii) an individual having powers or responsibil- ities 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 paragraph, section 318(a)(2) shall apply for purposes of determining ownership of stock in a corporation. Similar principles shall apply for purposes of determining owner- ship of interests in any other entity. ‘‘(I) OTHER DEFINITIONS.—For purposes of this para- graph— ‘‘(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). H. R. 1—189 ‘‘(J) BEGINNING OF CONSTRUCTION.—For purposes of applying any provision under this paragraph, the beginning of construction with respect to any property shall be deter- mined 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 nec- essary 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 for- eign 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 construc- tion of which begins— ‘‘(I) during calendar year 2026, 40 percent, ‘‘(II) during calendar year 2027, 45 percent, ‘‘(III) during calendar year 2028, 50 percent, ‘‘(IV) during calendar year 2029, 55 percent, and ‘‘(V) 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 COMPO- NENTS.— ‘‘(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 per- cent, ‘‘(bb) during calendar year 2027, 60 per- cent, H. R. 1—190 ‘‘(cc) during calendar year 2028, 70 per- cent, ‘‘(dd) during calendar year 2029, 80 per- cent, 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 per- cent, and ‘‘(bb) during calendar year 2027, 90 per- cent, ‘‘(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 per- cent, ‘‘(bb) during calendar year 2027, 55 per- cent, ‘‘(cc) during calendar year 2028, 60 per- cent, ‘‘(dd) during calendar year 2029, 65 per- cent, 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 per- cent, ‘‘(bb) during calendar year 2027, 65 per- cent, ‘‘(cc) during calendar year 2028, 70 per- cent, ‘‘(dd) during calendar year 2029, 80 per- cent, 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 per- cent, ‘‘(cc) during calendar year 2031, 30 per- cent, ‘‘(dd) during calendar year 2032, 40 per- cent, 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 H. R. 1—191 ‘‘(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 manufac- tured 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 compo- nent, 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 compo- nent, 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 mined, produced, or manufactured by 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 nec- essary) to— H. R. 1—192 ‘‘(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 deter- mine 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 manufac- tured product, and ‘‘(bb) rely on a certification by the supplier of the manufactured product, eligible compo- nent, or constituent element, material, or sub- component 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 sub- clauses (I) and (II)— ‘‘(aa) if the taxpayer knows (or has reason to know) that a manufactured product or eligible component was produced or manufac- tured by a prohibited foreign entity, the tax- payer 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 for- eign entity, and ‘‘(bb) if the taxpayer knows (or has reason to know) that the certification referred to in subclause (II)(bb) pertaining to a manufac- tured product or eligible component is inac- curate, the taxpayer may not rely on such certification. ‘‘(IV) CERTIFICATION REQUIREMENT.—In a manner consistent with Treasury Regulation sec- tion 1.45X–4(c)(4)(i) (as in effect on the date of H. R. 1—193 enactment of this paragraph), the certification referred to in subclause (II)(bb) shall— ‘‘(aa) include— ‘‘(AA) the supplier’s employer identi- fication 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 ele- ments, materials, or subcomponents of an eligible component, stating— ‘‘(AA) that such property was not pro- duced or manufactured by a prohibited foreign entity and that the supplier does not know (or have reason to know) that any prior supplier in the chain of produc- tion of that property is a prohibited for- eign entity, ‘‘(BB) for purposes of section 45X, the total direct material costs for each compo- nent, 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 attrib- utable 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 Sec- retary shall designate), in the case of any manufac- tured product, eligible component, or constituent ele- ment, material, or subcomponent of an eligible compo- nent 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) in a facility the construction of which began before August 1, 2025, 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 mate- rial assistance cost ratio under this subparagraph. H. R. 1—194 ‘‘(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 preven- tion of— ‘‘(I) any abuse of the exception provided under clause (iv) through the stockpiling of any manufac- tured product, eligible component, or constituent element, material, or subcomponent of an eligible component during any period prior to the applica- tion of the requirements under this paragraph, or ‘‘(II) any evasion with respect to the require- ments 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 para- graph— ‘‘(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 ‘manu- factured product’ means— ‘‘(I) a manufactured product which is a compo- nent 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) DETERMINATION OF OWNERSHIP; BEGINNING OF CONSTRUCTION.—Rules similar to the rules under subpara- graphs (H) and (J) of paragraph (51) shall apply for pur- poses of this paragraph. ‘‘(G) REGULATIONS AND GUIDANCE.—The Secretary may prescribe such regulations and guidance as may be nec- essary or appropriate to carry out the provisions of this paragraph, including— H. R. 1—195 ‘‘(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 ARRANGE- MENTS.—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 deter- mining 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 green- house gas emissions rate which is not greater than zero using widely accepted lifecycle assessment con- cepts, such as concepts described in standards devel- oped by the International Organization for Standard- ization.’’. (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 statis- tical 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 advance- ment 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 compo- nents used in an advanced nuclear facility.’’, and (B) by adding at the end the following new subpara- graph: ‘‘(C) ADVANCED NUCLEAR FACILITIES.— H. R. 1—196 ‘‘(i) IN GENERAL.—Subject to clause (ii), for pur- poses 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 (without regard to whether the reactor design was approved after December 31, 1993).’’. (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.—Section 45Y(b)(1) is amended— (1) by redesignating subparagraph (D) as subparagraph (E), and (2) 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 interconnec- tion 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 engi- neer, ‘‘(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 FOR- EIGN 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 sub- section: ‘‘(o) MATERIAL ASSISTANCE FROM A PROHIBITED FOREIGN ENTITY.—In the case of a deficiency attributable to an error with H. R. 1—197 respect to the determination under section 7701(a)(52) for any tax- able 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 stor- age 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 dis- allowance.’’. (k) PENALTY FOR SUBSTANTIAL MISSTATEMENTS ON CERTIFI- CATION 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 CER- TIFICATION 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 compo- nent, and ‘‘(B) knows, or reasonably should have known, that the certification would be used in connection with a deter- mination under such section, ‘‘(2) such person knows, or reasonably should have known, that such certification is inaccurate or false with respect to— ‘‘(A) whether such property was produced or manufac- tured 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 H. R. 1—198 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) EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in paragraphs (2), (3), and (4), 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 ENTI- TIES.—The amendments made by subsection (b)(1) shall apply to facilities for which construction begins after December 31, 2025. H. R. 1—199 (3) PENALTY FOR SUBSTANTIAL MISSTATEMENTS ON CERTIFI- CATION PROVIDED BY SUPPLIER.—The amendments made by sub- section (k) shall apply to certifications provided after December 31, 2025. (4) TERMINATION FOR WIND AND SOLAR FACILITIES.—The amendments made by subsection (a) shall apply to facilities the construction of which begins after the date which is 12 months after the date of enactment of this Act. SEC. 70513. TERMINATION AND RESTRICTIONS ON CLEAN ELEC- TRICITY 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 para- graph, 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 construc- tion 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 ENTI- TIES.— (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 ENTI- TIES.—The terms ‘qualified facility’ and ‘qualified interconnec- tion 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 erec- tion of such facility or property 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 ENTI- TIES.—The term ‘energy storage technology’ shall not include any property the construction of which begins after December H. R. 1—200 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 ENTI- TIES.— ‘‘(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 sec- tion 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 deter- mination relates to a qualified facility described in sub- section (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 para- graph, 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 para- graph, 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 H. R. 1—201 (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 ‘‘sec- tion 50(a)(5)’’ and inserting ‘‘section 50(a)(6)’’. (ii) Section 6418(g)(3) is amended by striking ‘‘sub- section (a)(5)’’ each place it appears and inserting ‘‘sub- section (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 or energy storage tech- nology 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 or energy storage tech- nology 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 or energy storage tech- nology the construction of which begins during cal- endar year 2026, 50 percent (or, in the case of a quali- fied facility which is an offshore wind facility, 35 per- cent). H. R. 1—202 ‘‘(iv) In the case of any qualified investment with respect to any qualified facility or energy storage tech- nology the construction of which begins after December 31, 2026, 55 percent.’’. (e) ELIMINATION OF ENERGY CREDIT FOR CERTAIN ENERGY PROP- ERTY.—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 sub- section: ‘‘(j) APPLICATION TO QUALIFIED FUEL CELL PROPERTY.—For pur- poses of this section, in the case of any qualified fuel cell property (as defined in section 48(c)(1), as applied without regard to subpara- graph (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 percent- age 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 which is 12 months after the date of enactment of this Act. SEC. 70514. PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFAC- TURING PRODUCTION CREDIT. (a) MODIFICATION OF PROVISION RELATING TO SALE OF INTEGRATED COMPONENTS.—Paragraph (4) of section 45X(d) is amended to read as follows: H. R. 1—203 ‘‘(4) SALE OF INTEGRATED COMPONENTS.— ‘‘(A) IN GENERAL.—For purposes of this section, a per- son 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 unre- lated 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 mate- rial 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 compo- nent 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 ‘‘subpara- graphs (C) and (D)’’, and (3) by striking subparagraph (C) and inserting the fol- lowing: ‘‘(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) pro- duced 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 CRIT- ICAL MINERALS OTHER THAN METALLURGICAL COAL.— The phase out percentage under this clause is equal to— ‘‘(I) in the case of any applicable critical min- eral produced during calendar year 2031, 75 per- cent, ‘‘(II) in the case of any applicable critical min- eral produced during calendar year 2032, 50 per- cent, ‘‘(III) in the case of any applicable critical min- eral produced during calendar year 2033, 25 per- cent, and ‘‘(IV) in the case of any applicable critical min- eral produced after December 31, 2033, 0 percent. H. R. 1—204 ‘‘(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 ENTI- TIES.—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)(iv)(II)(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 ENTI- TIES.— ‘‘(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 sec- tion 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 deter- mination relates to an eligible component described in sub- section (c)(1).’’. (d) MODIFICATION OF DEFINITION OF BATTERY MODULE.—Sec- tion 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, or any other essential energy collection equipment.’’. (e) INCLUSION OF METALLURGICAL COAL AS AN APPLICABLE CRIT- ICAL 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 H. R. 1—205 meaning of the notice published by the Department of Energy entitled ‘Critical Material List; Addition of Met- allurgical 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 sub- section (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 PRODUC- TION 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 feed- stock which was produced or grown in the United States, Mexico, or Canada.’’. (2) EFFECTIVE DATE.—The amendments made by this sub- section 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 subpara- graph: ‘‘(E) PROHIBITION ON NEGATIVE EMISSION RATES.—For purposes of this section, the emissions rate for a transpor- tation fuel may not be less than zero.’’. (2) EFFECTIVE DATE.—The amendments made by this sub- section shall apply to emissions rates published for transpor- tation fuel produced after December 31, 2025. (c) DETERMINATION OF EMISSIONS RATE.— H. R. 1—206 (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 meth- odologies 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 sub- section shall apply to emissions rates published for transpor- tation 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 subpara- graph (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 6426(k) is amended by adding at the end the following new paragraph: ‘‘(4) COORDINATION OF CREDITS.—With respect to any gallon of sustainable aviation fuel in a qualified mixture, this sub- section shall not apply to any such gallon for which a credit H. R. 1—207 under section 45Z is allowable (as determined without regard to subsection (a)(1)(A) of such section).’’. (B) EFFECTIVE DATE.—The amendment made by this paragraph shall apply to— (i) fuel sold or used on or after the date of the enactment of this Act, and (ii) fuel sold or used before the date of enactment of this Act, but only to the extent that claims for the credit under section 6426(k) of the Internal Rev- enue Code of 1986 with respect to such sale or use have not been paid or allowed as of such date. (2) ELIMINATION OF SPECIAL RATE.— (A) IN GENERAL.—Paragraph (3) of section 45Z(a) is amended to read as follows: ‘‘(3) DEFINITION OF SUSTAINABLE AVIATION FUEL.—For pur- poses of this section, the term ‘sustainable aviation fuel’ means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which— ‘‘(A) meets the requirements of— ‘‘(i) ASTM International Standard D7566, or ‘‘(ii) the Fischer Tropsch provisions of ASTM Inter- national Standard D1655, Annex A1, and ‘‘(B) is not derived from palm fatty acid distillates or petroleum.’’. (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), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: ‘‘(5) 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 sub- section 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: H. R. 1—208 ‘‘(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 deter- mined under section 40A which consists of the small agri-biodiesel producer credit determined under sub- section (b)(4) of such section.’’. (3) EFFECTIVE DATE.—The amendments made by this sub- section shall apply to fuel sold or used after June 30, 2025. (k) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI- TIES.— (1) IN GENERAL.—Section 45Z(f) is amended by adding at the end the following new paragraph: ‘‘(8) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI- TIES.— ‘‘(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 sub- section 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 ENTI- TIES.—Section 45Q(f) is amended by adding at the end the following new paragraph: ‘‘(10) RESTRICTIONS RELATING TO PROHIBITED FOREIGN ENTI- TIES.—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 QUALI- FIED CARBON OXIDE.—Section 45Q is amended— (1) in subsection (a)— (A) in paragraph (2)(B)(ii), by adding ‘‘and’’ at the end, H. R. 1—209 (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 cal- endar 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 ENTI- TIES.—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 QUALI- FIED 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. H. R. 1—210 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 fol- lowing: ‘‘(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 deduc- tions in computing taxable income for the year, and ‘‘(ii) any deduction allowed for expenses under sec- tion 263(c) (including any deduction for such expenses under section 59(e) or 291(b)(2)) with respect to prop- erty 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 fol- lowing: ‘‘(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 GEO- THERMAL 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 explo- ration’’ 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))— H. R. 1—211 ‘‘(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 prop- erty 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 sub- section (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 ker- osene’ 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 para- graph: H. R. 1—212 ‘‘(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 viola- tion.’’. (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 sub- section 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 TAX- PAYERS. (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— H. R. 1—213 (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 pay- ments 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 CON- TROLLED 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 corpora- tion) 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 speci- fied covered employee of such controlled group, the amount which bears the same ratio to $1,000,000 as— ‘‘(i) the amount of applicable employee remunera- tion provided by such member with respect to such specified covered employee, bears to H. R. 1—214 ‘‘(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 subpara- graph were applied by taking into account the employees of all members of the controlled group. ‘‘(D) CONTROLLED GROUP.—For purposes of this para- graph, 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. 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 sub- section (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 deter- mined 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— H. R. 1—215 ‘‘(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 sub- chapter 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’, ‘remit- tance transfer provider’, and ‘sender’ shall each have the respec- tive meanings given such terms by section 919(g) of the Elec- tronic 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 Elec- tronic 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 Elec- tronic 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. 70605. 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 pro- vides 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 deter- mining 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. H. R. 1—216 (5) SECRETARY.—For purposes of this subsection, the term ‘‘Secretary’’ means the Secretary of the Treasury or the Sec- retary’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 per- son 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 tax- able 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 tax- able year— (i) the aggregate of the gross receipts of such per- son 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 para- graph (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 cal- culation 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 H. R. 1—217 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 DETER- MINING 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 para- graph (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). H. R. 1—218 SEC. 70606. 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 tax- payer 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. 70607. 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. H. R. 1—219 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. (a) IN GENERAL.—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, admin- ister, or enforce the amendments made by the provisions of the final rule published by the Centers for Medicare & Medicaid Serv- ices on September 21, 2023, and titled ‘‘Streamlining Medicaid; Medicare Savings Program Eligibility Determination and Enroll- ment’’ (88 Fed. Reg. 65230) 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 435.911. (5) Section 435.952. (b) IMPLEMENTATION FUNDING.—For the purposes of carrying out the provisions of this section and section 71102, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $1,000,000 for fiscal year 2026, to remain available until expended. 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 amendments made by 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, Chil- dren’s Health Insurance Program, and Basic Health Program Application, Eligibility Determination, Enrollment, and Renewal Processes’’ (89 Fed. Reg. 22780) to the following sections of title 42, Code of Federal Regulations: (1) PART 431.— (A) Section 431.213(d). (2) PART 435.— (A) Section 435.222. (B) Section 435.407. (C) Section 435.907. (D) Section 435.911(c). (E) Section 435.912. (F) Section 435.916. (G) Section 435.919. (H) Section 435.1200(b)(3)(i)-(v). (I) Section 435.1200(e )(1)(ii). (J) Section 435.1200(h)(1). H. R. 1—220 (3) PART 447.—Section 447.56(a)(1)(v). (4) PART 457.— (A) Section 457.344. (B) Section 457.960. (C) Section 457.1140(d)(4). (D) Section 457.1170. (E) Section 457.1180. SEC. 71103. REDUCING DUPLICATE ENROLLMENT UNDER THE MED- ICAID 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 estab- lished 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 redetermina- tion of the eligibility of such individual for medical assistance under such plan (or waiver of such plan)— ‘‘(I) the social security number of such indi- vidual, 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: H. R. 1—221 ‘‘(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 Sec- retary and States to prevent an individual from being simulta- neously 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 informa- tion to a State (or allow the Secretary to transmit informa- tion 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 stand- ards 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 Administrator of the Centers for Medicare & Medicaid Services, out of amounts in the Treasury not otherwise appro- priated, 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 para- graph 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 main- tained 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 sec- tion 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— H. R. 1—222 (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 deter- mine 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 Secu- rity 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 informa- tion for enrollees and prevention of simultaneous enroll- ments).’’. (2) MANAGED CARE.—Section 2103(f)(3) of the Social Secu- rity 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 H. R. 1—223 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, 2027, are as follows: ‘‘(A) QUARTERLY SCREENING TO VERIFY ENROLLEE STATUS.—The State shall, not less frequently than quar- terly, 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 assist- ance 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 assist- ance under this title made on behalf of such individual (other than payments for any items or services fur- nished 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 sub- section 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 require- ments under this title relating to Medicaid eligibility determina- tion 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 H. R. 1—224 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)— (A) by inserting ‘‘for audits conducted by the Secretary, or, at the option of the Secretary, audits conducted by the State’’ after ‘‘exceeds 0.03’’; and (B) by inserting ‘‘, to the extent practicable’’ before the period at the end; (2) in subparagraph (B)— (A) by striking ‘‘The Secretary’’ and inserting ‘‘(i) Sub- ject 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 pay- ments for medical assistance described in subparagraph (D)(i)(II) made for such fiscal year that exceed the allowable error rate of 0.03.’’. (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 sub- clause (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 avail- able 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: H. R. 1—225 ‘‘(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 sec- tion 5000A(f)(1)(A) of the Internal Revenue Code of 1986 and determined in accordance with stand- ards 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 enact- ment 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 implementa- tion of the amendments made by this section. (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 Administrator of the Centers for Medicare & Medicaid Services, $75,000,000 for fiscal year 2026, to remain available until expended. SEC. 71108. REVISING HOME EQUITY LIMIT FOR DETERMINING ELIGI- BILITY 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 agricul- tural 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 subpara- graph (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 H. R. 1—226 specified in subparagraph (B)(i) (relating to certain agricul- tural 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 assist- ance 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 sub- section, beginning on October 1, 2026, except as provided in para- graphs (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 Responsi- bility 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— H. R. 1—227 (1) by redesignating subparagraphs (R) through (V) as para- graphs (S) through (W), respectively; and (2) by inserting after paragraph (Q) the following: ‘‘(R) Section 1903(v)(5) (relating to payments for med- ical assistance furnished to aliens), except in relation to payments for services provided under section 2105(a)(1)(D)(ii).’’. (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 Administrator of the Centers for Medicare & Medicaid Services, $15,000,000 for fiscal year 2026, to remain available until expended. SEC. 71110. EXPANSION FMAP FOR EMERGENCY MEDICAID. (a) IN GENERAL.—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 sub- section 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.’’. (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 Administrator of the Centers for Medicare & Medicaid Services, $1,000,000 for fiscal year 2026, to remain available until expended. Subchapter B—Preventing Wasteful Spending SEC. 71111. MORATORIUM ON IMPLEMENTATION OF RULE RELATING TO STAFFING STANDARDS FOR LONG-TERM CARE FACILITIES UNDER THE MEDICARE AND MEDICAID PRO- GRAMS. 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 amendments made by 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) to the following sections of part 483 of title 42, Code of Federal Regula- tions: (1) Section 483.5. (2) Section 483.35. SEC. 71112. 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— H. R. 1—228 ‘‘(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 indi- vidual 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 applica- tion 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 assist- ance 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 applica- tion 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 applica- tion 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 preg- nancy-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. (e) 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 Administrator of the Centers for H. R. 1—229 Medicare & Medicaid Services, $10,000,000 for fiscal year 2026, to remain available until expended. SEC. 71113. 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, succes- sors, and clinics— (A) that, as of the first day of the first quarter begin- ning 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 Regula- tions (as in effect on the date of enactment of this Act), that is primarily engaged in family planning serv- ices, reproductive health, and related medical care; and (iii) provides for abortions, other than an abor- tion— (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 condi- tion 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 organiza- tion, to the entity or to any affiliates, subsidiaries, succes- sors, 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 organiza- tion’’ 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))). H. R. 1—230 (4) STATE.—The term ‘‘State’’ has the meaning given such term in section 1101 of the Social Security Act (42 U.S.C. 1301). (c) IMPLEMENTATION FUNDING.—For the purposes of carrying out this section, there are appropriated, out of any monies in the Treasury not otherwise appropriated, to the Administrator of the Centers for Medicare & Medicaid Services, $1,000,000 for fiscal year 2026, to remain available until expended. Subchapter C—Stopping Abusive Financing Practices SEC. 71114. 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. 71115. 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 sub- stituted 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 or unit of local government in such 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 subpara- graph, the non-expansion State or unit of local govern- ment in such 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 subpara- graph, the non-expansion State or unit of local govern- ment in such 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 or unit of local government in such State and a class of health care items or services described in section 433.56(a) of title 42, Code H. R. 1—231 of Federal Regulations (as in effect on May 1, 2025), subject to clause (iv)— ‘‘(aa) if, on the date of enactment of this subpara- graph, the expansion State or unit of local government in such 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 subpara- graph, the expansion State or unit of local government in such 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-expan- sion State’ means a State that is not an expansion State. ‘‘(iv) In the case of a tax of an expansion State or unit of local government in such 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 para- graph (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 Administrator of the Centers for Medicare & Medicaid Services, $20,000,000 for fiscal year 2026, to remain available until expended. H. R. 1—232 SEC. 71116. 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 sec- tion 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, or a payment so described for such rating period for which a completed preprint was submitted to the Secretary prior to the date of 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). H. R. 1—233 (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) of the Social Security Act (42 U.S.C. 1395ww(d))) that— (i) is located in a rural area (as defined in para- graph (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 metropoli- tan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on Feb- ruary 27, 1992 (57 Fed. Reg. 6725)). (B) A critical access hospital (as defined in section 1861(mm)(1) of such Act (42 U.S.C. 1395x(mm)(1))). (C) A sole community hospital (as defined in section 1886(d)(5)(D)(iii) of such Act (42 U.S.C. 1395ww(d)(5)(D)(iii))). (D) A Medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv) of such Act (42 U.S.C. 1395ww(d)(5)(G)(iv))). (E) A low-volume hospital (as defined in section 1886(d)(12)(C) of such Act (42 U.S.C. 1395ww(d)(12)(C))). (F) A rural emergency hospital (as defined in section 1861(kkk)(2) of such Act (42 U.S.C. 1395x(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’’ has the meaning given to such term in section 438.6(a) of title 42, Code of Federal Regulations (or a successor regulation). (5) WRITTEN PRIOR APPROVAL.—The term ‘‘written prior approval’’ has the meaning given to 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. 71117. 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. H. R. 1—234 ‘‘(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-Med- icaid 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. H. R. 1—235 SEC. 71118. REQUIRING BUDGET NEUTRALITY FOR MEDICAID DEM- ONSTRATION 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 DEM- ONSTRATION 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 dem- onstration project’) unless the Chief Actuary for the Centers for Medicare & Medicaid Services certifies that such project, 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 expendi- tures 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 other- wise 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 Administrator of the Centers for Medicare & Medicaid Services, $5,000,000 for each of fiscal years 2026 and 2027, to remain available until expended. Subchapter D—Increasing Personal Accountability SEC. 71119. REQUIREMENT FOR STATES TO ESTABLISH MEDICAID COMMUNITY ENGAGEMENT REQUIREMENTS FOR CER- TAIN 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, H. R. 1—236 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 para- graph (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 sched- uled 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 pro- gram 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, multi- plied 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 INDIVID- UALS.—The State shall deem an applicable individual to H. R. 1—237 have demonstrated community engagement under para- graph (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 dem- onstrated 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 hos- pital services, or such other services of similar acuity (including outpatient care relating to other services specified in this subclause) as the Sec- retary 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 H. R. 1—238 ‘‘(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 resi- dence. ‘‘(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 dem- onstrate 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 dem- onstrate community engagement under paragraph (1), or deter- mining such individual to be deemed to have demonstrated community engagement under paragraph (3), or that an indi- vidual is a specified excluded individual under paragraph (9)(A)(ii), the State shall, in accordance with standards estab- lished 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 informa- tion. ‘‘(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 dem- onstrate 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 non- compliance 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 indi- vidual, 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 commu- nity engagement under paragraph (3)); or ‘‘(bb) make a satisfactory showing to the State that such requirement does not apply to such indi- vidual on the basis that such individual does not meet the definition of applicable individual under paragraph (9)(A); and H. R. 1—239 ‘‘(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, pro- vided 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 satisfac- tory 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 RELA- TION TO CERTAIN OTHER PROVISIONS.— ‘‘(A) CERTAIN FMAP INCREASES.—A State shall not be treated as not providing medical assistance to all individ- uals 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 indi- vidual 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 engage- ment under paragraph (1). ‘‘(B) OTHER PROVISIONS.—For purposes of section 36B(c)(2)(B) of the Internal Revenue Code of 1986, an indi- vidual 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 H. R. 1—240 the requirement to demonstrate community engagement under paragraph (1). ‘‘(8) OUTREACH.— ‘‘(A) IN GENERAL.—In accordance with standards speci- fied 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 min- imum essential coverage (as described in sec- tion 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 H. R. 1—241 under part B of title XVIII, and is not other- wise eligible to enroll under such plan. ‘‘(ii) SPECIFIED EXCLUDED INDIVIDUAL.—For pur- poses of clause (i), the term ‘specified excluded indi- vidual’ 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 require- ments imposed by the State pursuant to sec- tion 407; or ‘‘(bb) is a member of a household that receives supplemental nutrition assistance program benefits under the Food and Nutri- tion 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 Nutri- tion Act of 2008); ‘‘(VIII) who is an inmate of a public institution; or H. R. 1—242 ‘‘(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 provi- sions 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 deter- mining 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 compli- ance 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 installa- tion 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 require- ments described in subparagraph (D); or H. R. 1—243 ‘‘(II) based on the information provided pursu- ant 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 identi- fied 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 ‘‘sub- ject 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 assist- ance 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 para- graph (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— H. R. 1—244 (A) $100,000,000 for fiscal year 2026 for purposes of awarding grants under paragraph (1)(A), to remain avail- able 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 Administrator of the Centers for Medicare & Medicaid Services, $200,000,000 for fiscal year 2026, to remain available until expended. SEC. 71120. MODIFYING COST SHARING REQUIREMENTS FOR CERTAIN EXPANSION INDIVIDUALS UNDER THE MEDICAID PRO- GRAM. (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, speci- fied individuals (as defined in subsection (k)(3)))’’ after ‘‘individ- uals’’; 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 Feder- ally 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 sub- clause (II), in no case may a deduction, cost sharing, or similar charge imposed under the State H. R. 1—245 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 sub- section (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 pro- vider 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 Rev- enue 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’’. H. R. 1—246 (2) NONAPPLICABILITY OF ALTERNATIVE COST SHARING.—Sec- tion 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)’’. (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 Administrator of the Centers for Medicare & Medicaid Services, $15,000,000 for fiscal year 2026, to remain available until expended. Subchapter E—Expanding Access to Care SEC. 71121. 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 sub- section 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 require- ments specified under this subsection (except for the require- ments 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 deter- mination 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 H. R. 1—247 home or community-based services under any other waiver granted under this subsection, as determined by the Sec- retary. ‘‘(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 individuals to have a determination described in para- graph (1), and specifies the home or community-based serv- ices 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 Sec- retary) 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 commu- nity-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 institu- tional 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. H. R. 1—248 ‘‘(C) LIMITATION ON PAYMENTS.—No payments made to carry out this paragraph shall be used by a State 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 Adminis- trator of the Centers for Medicare & Medicaid 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 section 1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) (as amended by this section) or under section 1115 of such Act (42 U.S.C. 1315), to remain avail- able until expended. (2) PAYMENTS BASED ON STATE HCBS ELIGIBLE POPU- LATION.—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 receiving home or community-based services under section1915(c) of the Social Security Act (42 U.S.C. 1396n(c)) (as amended by this section) or under section 1115 of such Act (42 U.S.C. 1315), as compared to all States. CHAPTER 2—MEDICARE Subchapter A—Strengthening Eligibility Requirements SEC. 71201. LIMITING MEDICARE COVERAGE OF CERTAIN INDIVID- UALS. 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 INDIVID- UALS. ‘‘(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 resi- dence 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.— H. R. 1—249 ‘‘(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 identifica- tion 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 EXCEP- TIONAL CIRCUMSTANCES. (a) IN GENERAL.—Section 1848(t) of the Social Security Act (42 U.S.C. 1395w–4(t)) is amended— (1) in the subsection heading, by striking ‘‘DURING 2021 THROUGH 2024’’; (2) in paragraph (1)— (A) in the matter preceding subparagraph (A), by striking ‘‘and 2024’’ and inserting ‘‘2024, and 2026’’; (B) in subparagraph (D), by striking ‘‘and’’ at the end; (C) in subparagraph (E), by striking the period at the end and inserting ‘‘; and’’; and (D) by adding at the end the following new subpara- graph: ‘‘(F) such services furnished on or after January 1, 2026, and before January 1, 2027, by 2.5 percent.’’; and (3) in paragraph (2)(C)— (A) in the subparagraph heading, by inserting ‘‘AND 2026’’ after ‘‘2024’’; and (B) by striking ‘‘or 2024’’ each place it appears and inserting ‘‘2024, or 2026’’. (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— H. R. 1—250 (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. 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 perma- nent 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 H. R. 1—251 Personal Responsibility and Work Opportunity Rec- onciliation 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 fol- lowing 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 Rev- enue 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 fol- lowing: ‘‘, 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 sub- section shall apply with respect to plan years beginning on or after January 1, 2027. (d) REQUIREMENT TO MAINTAIN MINIMUM ESSENTIAL COV- ERAGE.—Section 5000A(d)(3) is amended by striking ‘‘an alien law- fully present in the United States’’ and inserting ‘‘an eligible alien (within the meaning of section 36B(e)(2))’’. (e) 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). H. R. 1—252 (b) 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 pur- poses of subparagraph (A), applicable enrollment informa- tion shall include affirmation of at least the following information (to the extent relevant in determining eligi- bility 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 cov- erage month 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 quali- fied 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 enroll- ment 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 H. R. 1—253 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 Fed. Reg. 27074), applied as though it applied to all plan years after 2025), with respect to the individual.’’. (b) PRE-ENROLLMENT VERIFICATION PROCESS REQUIRED.—Sec- tion 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, begin- ning 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) 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 ENROLL- MENT PERIOD. (a) IN GENERAL.—Section 36B(c)(3)(A), as amended by the pre- ceding 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) 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). H. R. 1—254 (b) CONFORMING AMENDMENTS.— (1) Section 36B(f)(2) is amended by striking ‘‘ADVANCE PAY- MENTS.—’’ and all that follows through ‘‘If the advance pay- ments’’ 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) 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 deduct- ible 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 sec- tion 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 ARRANGE- MENT.—For purposes of this subparagraph— ‘‘(I) IN GENERAL.—The term ‘direct primary care service arrangement’ means, with respect to H. R. 1—255 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 Secu- rity 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 indi- vidual 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 indi- vidual). ‘‘(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 adminis- tered 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. H. R. 1—256 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 Serv- ices (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 2026; ‘‘(ii) $10,000,000,000 for fiscal year 2027; ‘‘(iii) $10,000,000,000 for fiscal year 2028; ‘‘(iv) $10,000,000,000 for fiscal year 2029; and ‘‘(v) $10,000,000,000 for fiscal year 2030. ‘‘(B) UNEXPENDED OR UNOBLIGATED FUNDS.— ‘‘(i) IN GENERAL.—Any amounts appropriated under subparagraph (A) that are unexpended or unobli- gated as of October 1, 2032, shall be returned to the Treasury of the United States. ‘‘(ii) REDISTRIBUTION OF UNEXPENDED OR UNOBLI- GATED FUNDS.—In carrying out subparagraph (A), the Administrator shall, not later than March 31, 2028, and annually thereafter through March 31, 2032, deter- mine 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). ‘‘(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 REDISTRIB- UTED.—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 2032 which shall only be available for expenditure through September 30, 2032). ‘‘(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 para- graph (2), the Administrator may withhold payments to, or reduce payments to, or recover previous pay- ments from, the State under this subsection as the H. R. 1—257 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 December 31, 2025) an application in such form and manner as the Administrator may specify, that includes— ‘‘(i) a detailed rural health transformation plan— ‘‘(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 pro- vided under this subsection shall be used by the State for an expenditure that is attributable to an intergov- ernmental 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 December 31, 2025, the Administrator shall approve or deny all applications submitted for an allotment under this subsection. H. R. 1—258 ‘‘(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 2026 through 2030, 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 refer- ring to the 50 States. ‘‘(3) ALLOTMENTS.— ‘‘(A) IN GENERAL.—For each of fiscal years 2026 through 2030, 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.—Subject to subparagraph (C), from the amounts appropriated under paragraph (1)(A) for each of fiscal years 2026 through 2030, the Adminis- trator 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) REQUIREMENTS.—In determining the amount to be allotted to a State under clause (ii) of subparagraph (B) for a fiscal year, the Administrator shall— ‘‘(i) ensure that not less than 1⁄4 of the States with an approved application under this subsection for a fiscal year are allotted funds from amounts that are to be allotted under clause (ii) of such subpara- graph; and ‘‘(ii) consider— ‘‘(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 rel- ative 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); and ‘‘(IV) any other factors that the Administrator determines appropriate. ‘‘(D) RURAL HEALTH FACILITY DEFINED.—For the pur- poses of subparagraph (C)(ii), the term ‘rural health facility’ means the following: ‘‘(i) A subsection (d) hospital (as defined in para- graph (1)(B) of section 1886(d)) that— ‘‘(I) is located in a rural area (as defined in paragraph (2)(D) of such section); H. R. 1—259 ‘‘(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 sec- tion 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 Reg- ister 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 allot- ment 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 pro- vided under this subsection as the Administrator deems appro- priate, including the following: ‘‘(A) Each State shall submit to the Administrator (at a time, and in a form and manner, specified by the Adminis- trator)— ‘‘(i) a plan for the State to use its allotment to carry out 3 or more of the activities described in para- graph (6); and ‘‘(ii) annual reports on the use of allotments, including such additional information as the Adminis- trator determines appropriate. H. R. 1—260 ‘‘(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. ‘‘(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 interven- tions to improve prevention and chronic disease manage- ment. ‘‘(B) Providing payments to health care providers 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 solu- tions that improve care delivery in rural hospitals, including remote monitoring, robotics, artificial intel- ligence, and other advanced technologies. ‘‘(E) Recruiting and retaining clinical workforce talent to rural areas, with commitments to serve rural commu- nities for a minimum of 5 years. ‘‘(F) Providing technical assistance, software, and hard- ware for significant information technology advances designed to improve efficiency, enhance cybersecurity capa- bility 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 serv- ices. ‘‘(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 deter- mined 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. ‘‘(9) HEALTH CARE PROVIDER DEFINED.—For purposes of this subsection, the term ‘health care provider’ means a provider of services or supplier who is enrolled under this title, title XVIII, or title XIX.’’. (b) CONFORMING AMENDMENTS.—Title XXI of the Social Secu- rity Act (42 U.S.C. 1397aa) is amended— (1) in section 2101— H. R. 1—261 (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 estab- lished 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. (d) 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 Administrator of the Centers for Medicare & Medicaid Services, $200,000,000 for fiscal year 2025, to remain available until expended. 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. Subtitle D—Unemployment SEC. 73001. 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 com- pensation 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 respon- sible for administering any unemployment compensation program of the United States shall utilize available systems H. R. 1—262 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 compensa- tion 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 com- pensation 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 com- pensation; (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. 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 semi- colon; 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 H. R. 1—263 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 FED- ERAL 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 STU- DENTS.—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 max- imum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any aca- demic 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 STU- DENTS.—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 profes- sional 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 Unsub- sidized 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. H. R. 1—264 ‘‘(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 under- graduate education, that— ‘‘(i) a graduate student— ‘‘(I) who is not (and has not been) a profes- sional 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 stu- dent, 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 subpara- graph (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 subpara- graph (C)(i). ‘‘(C) DEFINITIONS.— ‘‘(i) GRADUATE STUDENT.—The term ‘graduate stu- dent’ means a student enrolled in a program of study that awards a graduate credential (other than a profes- sional 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 profes- sional 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, begin- ning 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, begin- ning 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 H. R. 1—265 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 STU- DENTS.—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.—Notwith- standing 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.—Notwith- standing 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 institu- tion 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 indi- vidual shall be equal to the lesser of— ‘‘(i) three academic years; or ‘‘(ii) the period determined by calculating the dif- ference between— ‘‘(I) the program length for the program of study in which the individual is enrolled; and H. R. 1—266 ‘‘(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 para- graph, 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 repay- ment status in accordance with, or an administrative forbear- ance 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 contin- gent loans’’) selects one of the following income-based repay- ment 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 para- graph (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 accord- ance 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— H. R. 1—267 (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 dis- charge 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 Consoli- dation 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 repay- ment of excepted loans (as defined in paragraph (7)(E)); and ‘‘(ii) the borrower is required to pay each out- standing 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 repay- ment 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 H. R. 1—268 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 out- standing 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 repay- ment 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 subpara- graph (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.— H. R. 1—269 ‘‘(i) STANDARD REPAYMENT PLAN REQUIRED.—Not- withstanding subparagraphs (A) through (D), begin- ning 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 bor- rower 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 sec- tion).’’. (c) ELIMINATION OF AUTHORITY TO PROVIDE INCOME CONTIN- GENT 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 CONTIN- GENT 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 repay- ment 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 pur- poses of qualifying for an income-based repayment plan under section 455(q) or section 493C, as applicable’’; H. R. 1—270 (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 repay- ment 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 provi- sion 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 sub- section (b)(5)’’ and inserting ‘‘or by the terms of repayment pursuant to an income-based repay- ment 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 Sec- retary 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’’.