Sponsors (6)
The bill raises and indexes aviation fuel excise taxes to fund air quality monitoring and transit improvements—particularly for disadvantaged communities—while imposing higher fuel costs on private aviation, redirecting existing excise revenue, and introducing administrative and allocation risks.
Most Americans (taxpayers and federal programs) will get a new, dedicated trust fund financed by higher aviation fuel excise rates, creating a predictable revenue stream for air quality, pollution response, and transit projects.
Low-income and disadvantaged communities will receive at least 50% of annual funding for air monitoring, pollution response, and transit improvements, directing benefits to communities with greater need.
Communities will gain expanded and maintained air quality monitors and sensors, improving local pollution detection, public information, and health-protective responses.
Owners/operators of private (non‑commercial) aircraft will face substantially higher fuel costs (about $1.641/gal plus indexing), significantly raising operating costs for private pilots and small aviation businesses.
Higher private aviation fuel costs are likely to be passed on to customers of services that rely on private aircraft (e.g., remote charters, aerial services), raising prices for rural communities and some businesses.
Redirecting specified excise revenues into the new trust fund could reduce amounts otherwise available for existing trust funds or programs, creating fiscal trade-offs for other priorities.
Based on analysis of 3 sections of legislative text.
Introduced January 21, 2025 by Edward John Markey · Last progress January 21, 2025
Raises federal excise taxes on aviation fuel used by private (non‑commercial) aircraft and indexes part of the new rate to inflation starting after 2026, establishes a limited refund process for certain reasonable‑cause uses through the end of 2027, and narrows a narrow exemption for tree‑related air operations. It also creates a Clean Communities Trust Fund in the Treasury that will receive amounts equivalent to specified portions of the new aviation fuel excise taxes and makes those amounts available by appropriation for clean‑air activities and transit projects, with at least half directed to disadvantaged communities. The tax and trust fund provisions take effect January 1, 2026. The refund/credit exception for reasonable‑cause uses expires for fuel sold/used after January 1, 2028. The measure changes multiple Internal Revenue Code provisions, adds inflation indexing for a dollar component of the tax, and sets definitions and allocation priorities for the new trust fund's grant programs.