Sponsors (6)
The bill raises and indexes aviation fuel taxes to fund targeted air-quality monitoring and transit improvements—especially for disadvantaged communities—creating a dedicated trust fund and near-term refunds for narrow emergency/research uses, but it imposes substantial new fuel costs on noncommercial aviation, risks impacts to rural emergency services, and redirects excise revenues away from existing aviation programs while leaving funded projects subject to annual appropriations.
Low-income and disadvantaged communities will receive targeted grants for air monitoring and transit improvements, with at least 50% of funds reserved for them.
Communities near pollution sources will get expanded air monitoring (fenceline, multipollutant stations, sensors), improving pollution detection and public-health responses.
Residents near airports and in disadvantaged areas may see expanded or improved public transit and passenger rail within about 20 miles, potentially lowering travel costs and local emissions.
Most private (non‑commercial) aviation users — owners and charter services — will face substantially higher fuel taxes (roughly an added $1.68/gal plus the existing 35.9¢ component), raising operating costs beginning in 2026.
Higher fuel taxes for non‑commercial flights could increase costs for rural and remote services (e.g., medevac, chartered supply runs), potentially reducing access to emergency care and essential supplies unless refunds apply.
Redirecting specified excise tax receipts to the new trust fund may reduce revenues available for existing programs (like the Airport and Airway Trust Fund), potentially affecting aviation services and jobs unless offsets are provided.
Based on analysis of 3 sections of legislative text.
Raises federal excise tax on non‑commercial aviation fuel and redirects specified tax receipts into a trust fund to finance air monitoring and transit/rail and disadvantaged‑community clean‑air projects.
Official title: Amend the Internal Revenue Code of 1986 to increase excise taxes on fuel used by private jets, and for other purposes.
Introduced January 21, 2025 by Edward John Markey · Last progress January 21, 2025
Raises the federal excise tax on aviation fuel used in non‑commercial (private) aircraft beginning January 1, 2026, and directs portions of specified aviation fuel tax receipts into a new Treasury trust fund to finance air monitoring, public transit and rail near airports, and other clean‑air and community resilience activities, with at least half of funds targeted to disadvantaged communities. The bill creates a temporary refund authority for certain emergency or research uses of increased tax through 2027 and narrows a narrow existing exemption for tree‑care air transportation. Funding transfers and grant eligibility are set up for EPA Clean Air Act programs, with funds available by appropriation.