Sponsors (7)
Creates a trust fund paid by new and expanded oil excise, windfall, and severance taxes to finance FEMA mitigation and flood programs, effective mostly after Dec 31, 2024.
Official title: To amend the Internal Revenue Code of 1986 to establish a National Resilience and Recovery Fund, and for other purposes.
Introduced November 7, 2025 by Melanie Ann Stansbury · Last progress November 7, 2025
The bill trades higher and more predictable, dedicated revenues for disaster resilience and recovery (improving preparedness and reducing future damage costs) against higher fuel- and energy-related costs, regressivity for low-income households, and added tax and compliance burdens for the energy sector.
Local, state governments and disaster-affected communities get a dedicated, indexed funding stream (from specified excise and per-barrel revenues) for FEMA mitigation, cleanup, recovery, and resilience projects, improving preparedness and recovery capacity.
Homeowners and communities expected to receive more mitigation grants and projects, lowering future flood/storm damages and reducing household recovery costs over time.
Taxpayers and the federal budget gain additional, predictable revenue sources (excise/per-barrel indexing and a windfall profits tax) that can finance resilience programs or reduce deficits without annual appropriations.
Consumers and businesses that use petroleum products (including low- and middle-income households) will likely face higher fuel and energy prices as excise and per-barrel taxes rise and as new industry taxes are passed along.
Higher fuel-related taxes are regressive in effect, disproportionately increasing costs for low-income households who spend a larger share of income on energy and transportation.
Refiners, producers, distributors and utilities face greater tax liabilities plus increased compliance, administrative burden, and regulatory uncertainty from broader taxable categories and Treasury discretion, raising costs for energy-sector businesses.
Based on analysis of 6 sections of legislative text.
Creates a new federal trust fund — the National Resilience and Recovery Fund — funded by new and existing oil- and petroleum-related excise taxes and windfall/severance taxes, and directs those receipts (subject to appropriation) to FEMA hazard mitigation and flood-mitigation programs. The bill broadens which oil products are taxed, adds a $0.10-per-barrel financing rate for the new fund to the existing per-barrel excise structure, establishes a windfall profits tax, and creates a Gulf of Mexico outer-continental-shelf severance tax (with that severance tax allowed as a deduction for taxpayers). Most changes take effect for oil or taxable years beginning after December 31, 2024 (trust fund credited beginning Jan 1, 2025).