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Creates a new federal tax and border-adjustment on greenhouse gas emissions, directs most of the revenue into a new Rebuilding Infrastructure and Solutions for the Environment (RISE) Trust Fund to pay for infrastructure, carbon removal, flood resilience, and low-income household support, and sets new rules for permitting, worker assistance, and agency authority. It also restricts some EPA greenhouse-gas rulemaking, funds grants for frequent flooding projects, creates a 10-year energy-worker assistance program, and establishes a bipartisan commission to set and review national emissions-reduction goals.
Roads, bridges, airports, and urban transportation systems are essential to the economic and national security of the United States.
There is a chronic shortfall in funding for the maintenance of highways, bridges, and other critical infrastructure.
Strategic investments in new infrastructure will allow for economic growth and dynamism in the 21st century.
There has been a marked increase in extreme weather events and the negative impacts of a changing climate are expected to worsen in every region of the United States.
If left unaddressed, the consequences of a changing climate have the potential to adversely impact the health of all Americans, harm the economy, and impose substantial costs on local, State, and Federal budgets.
Who is affected and how:
Energy sector workers: Workers in fossil‑fuel and related energy industries may face job dislocation if the new tax/adjustment and related policy changes reduce demand; the bill creates a 10‑year transition program (training, placement, income support) to help displaced workers.
Energy companies, utilities, and industrial manufacturers: Domestic emitters and companies that import or export carbon‑intensive goods will face new compliance obligations and potential tax costs (or border adjustments). Utilities and manufacturers may need to change operations, invest in emissions reduction or buy allowances/credits, or pass costs to customers.
Households, especially low‑income households: The RISE Trust Fund directs some funding to annual State grants for eligible low‑income households, providing targeted relief. However, any higher upstream costs for energy or goods could also raise prices for consumers.
State and local governments & infrastructure owners: New stable funding from the RISE Trust Fund for infrastructure, resilience, and flood mitigation offers grants and appropriations opportunities, but recipients must meet federal requirements (including prevailing wages and cost‑share rules) and administrative reporting.
Federal agencies and regulators (Treasury/IRS, EPA, labor programs): Agencies will need to write complex regulations (implementing the tax and border adjustment, administering new grant programs, and responding to Commission requests). EPA’s rulemaking authority is narrowed in specified ways, changing agency regulatory strategies.
Importers and exporters: The border greenhouse‑gas adjustment affects trade flows and competitiveness for carbon‑intensive imported products; foreign exporters may face higher U.S. costs, and U.S. exporters may see shifts in competitiveness depending on how adjustments are applied.
Project labor and contractors: Projects financed by RISE funds must meet prevailing‑wage rules, increasing labor costs but raising job standards; contractors must comply with wage and reporting requirements.
Overall programmatic impact: The bill combines a tax-based carbon signal with a large, dedicated investment stream for infrastructure, resilience, and carbon removal while inserting new constraints on EPA regulatory options. That approach shifts emissions policy partly into tax and spending law and away from some regulatory avenues, creates new administrative burdens for federal and state implementers, and redistributes funding to designated priorities over a 10‑year window. The timing and scale of impacts will depend heavily on implementing regulations, allocation formulas, and how market actors respond to the border adjustment.
Adds a new section (section 330) to Title III of the Clean Air Act establishing a moratorium on EPA rules limiting greenhouse gas emissions based on greenhouse gas effects with specified exceptions, definitions, and expiration/conditional expiration dates.
Redesignates an existing paragraph and adds a new paragraph (5) to section 202(b) to permit regulation of greenhouse gas emissions from new motor vehicles or engines notwithstanding the new section 330(a), and to allow waiver grants under section 209(b)(1) for GHG standards.
Adds a new paragraph (5) to section 211(c) restricting the Administrator from imposing requirements on manufacturers/processors/distributors of fuel for the purpose of reducing greenhouse gas emissions from fuel combustion on the basis of greenhouse gas effects, except as required in subsection (o).
Adds a new subsection (e) to section 213 permitting the Administrator to limit greenhouse gas emissions from nonroad engines and nonroad vehicles notwithstanding subsections (a) and (b) of section 330.
Adds a new subsection (d) to section 231 authorizing the Administrator to limit greenhouse gas emissions from aircraft engines notwithstanding subsections (a) and (b) of section 330, provided such limits are not more stringent than International Civil Aviation Organization standards.
Amends section 303(a) and 303(b) of the Act of October 14, 1980 (16 U.S.C. 1606a): updates cross-reference in subsection (a) to include a new paragraph (4) of subsection (b), and adds paragraph (4) to subsection (b) requiring a transfer to the Reforestation Trust Fund of amounts made available under section 202(a)(13) of this Act within a stated period after enactment.
Amends 26 U.S.C. 9508(b) by inserting a new paragraph (5) to include amounts made available to the Leaking Underground Storage Tank Trust Fund from the RISE Trust Fund under section 202(a)(5) of this Act as an additional source of transfers to that Trust Fund.
Adds a new Subtitle L to the Internal Revenue Code of 1986 and, within that subtitle, adds a new part establishing border greenhouse gas adjustments.
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Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and Workforce, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced May 13, 2025 by Brian K. Fitzpatrick · Last progress May 13, 2025
Referred to the Subcommittee on Highways and Transit.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and Workforce, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House