Sponsors (7)
The bill secures predictable, dedicated funding to speed disaster resilience and recovery by expanding and earmarking excise/levy revenues, but it does so by imposing new taxes and regulatory changes that are likely to raise fuel and energy costs, add compliance complexity, and create economic pressure on some energy-sector jobs and investments.
State and local governments, homeowners, and communities gain a predictable, dedicated funding stream for disaster mitigation, resilience, and recovery projects (via new trust funds and a 10¢/barrel resilience excise), increasing the likelihood of more mitigation projects and faster rebuilding after disasters.
The federal government receives new and expanded excise/levy revenue (from expanded taxable fuel types, crude profit taxes, and Gulf severance taxes), providing additional funds that can support resilience programs and other federal priorities.
Utilities, energy companies, and the IRS benefit from clearer statutory tax definitions and an updated tax chapter that reduce legal ambiguity and create a clearer framework for collection and compliance.
Consumers, motorists, and businesses across the country will likely face higher fuel and energy prices as multiple new or increased excise taxes and levies (10¢/barrel resilience fee, expanded excise base, crude and severance taxes) are passed through by producers and suppliers.
Oil producers, refiners, and Gulf offshore operators may face reduced after-tax returns, which could lower investment, slow hiring, or prompt production cuts—raising the risk of job losses and reduced local economic activity in energy-dependent areas.
The law increases administrative and compliance burdens for taxpayers, the IRS, Treasury, and FEMA (new trust fund accounting, a new tax chapter, reporting rules) and creates a reliance on future appropriations that could leave intended resilience funding unused if Congress does not appropriate balances.
Based on analysis of 6 sections of legislative text.
Introduced November 7, 2025 by Melanie Ann Stansbury · Last progress November 7, 2025
Creates new oil-and-gas tax rules and a Treasury trust that directs those revenues to FEMA hazard mitigation and recovery programs. It broadens the legal definition of "crude oil," adds a 10¢/barrel financing excise, creates a windfall profits tax and a new Gulf of Mexico outer Continental Shelf severance tax, and makes those revenues available (subject to annual appropriation) to specified FEMA programs, with most revenue rules effective for activity after December 31, 2024.