Sponsors (2)
The bill channels new emissions-related revenues toward large infrastructure, resilience, and transition programs and establishes emissions targets and incentives to reduce pollution, but it raises costs for consumers and businesses, constrains regulatory authority in the near term, and creates distributional and administrative trade-offs over how revenues are allocated.
Millions of Americans (drivers, transit riders, coastal and flood-prone communities, and state/local governments) would see substantially more federal funding for roads, transit, and flood-mitigation projects through a new revenue stream and high-cost-share grants (including up to 90% grants for chronic flooding).
Low-income households would receive direct annual assistance and energy-efficiency upgrades (state grants from RISE receipts and Weatherization Assistance funding), reducing energy burden and improving home resilience.
All Americans and U.S. manufacturers would benefit from stronger emissions-reduction incentives, authoritative national targets and recommendations, and border adjustments that encourage cleaner production and protect domestic industry from high-emitting imports.
Households and businesses across the country could face higher energy and product prices because emitters may pay new emissions charges or taxes that are passed through to consumers and because some RISE-funded changes could raise near-term costs.
The bill limits or delays EPA authority to regulate greenhouse-gas emissions (tying restoration to tax-report triggers through 2039 or earlier triggers), creating regulatory uncertainty and potentially delaying protections for air quality and public health.
A large share of new revenues is directed to highways (70%) and many small-percentage allocations are specified, which reduces funds available for direct climate programs and could limit resources for emissions reductions and equity-focused investments.
Based on analysis of 10 sections of legislative text.
Imposes a federal tax on domestic greenhouse gas emissions, directs most receipts to a RISE Trust Fund for infrastructure/climate programs, limits some EPA rulemaking, and funds resilience and worker programs.
Official title: To amend the Internal Revenue Code of 1986 to eliminate certain fuel excise taxes and impose a tax on greenhouse gas emissions to provide revenue for maintaining and building American infrastructure, and for other purposes.
Introduced May 13, 2025 by Brian K. Fitzpatrick · Last progress May 13, 2025
Creates a new federal tax on domestic greenhouse gas emissions (effective for emissions after Dec 31, 2025, or one year after implementing regs), directs most receipts into a new RISE Trust Fund to finance highways, climate resilience, energy R&D, carbon removal, and other programs for FY2027–2036, and establishes programs for flood mitigation and worker transition. It also places a time-limited moratorium on certain EPA greenhouse-gas regulatory actions while the IRC tax applies, sets up a National Climate Commission to set emissions goals and report periodically, and funds grant and workforce programs tied to the transition.