Budget & Taxes

The Government Bailout Prevention Act prohibits the use of federal funds, Treasury resources, or Federal Reserve assistance to support state, local, or school district governments facing financial distress starting January 1, 2026. Specifically, the bill bars the government from purchasing or guaranteeing debt for entities that have filed for bankruptcy, defaulted on obligations, or are at risk of defaulting without such help. This restriction also covers debt restructuring activities but includes an exception for financial aid provided in response to declared disasters.

This bill proposes to pause the clean electricity production tax credit for two years, from October 1, 2025, through September 30, 2027. The change would affect electricity generators who currently receive tax benefits for producing clean energy during this period. Money that would have gone to the Treasury from these suspended credits would instead be transferred to the Strategic Petroleum Reserve's funding account. The legislation aims to redirect federal tax revenue to support petroleum stockpiles while temporarily reducing incentives for clean electricity production.

HR 909, the Crime Victims Fund Stabilization Act of 2025, modifies how funds from the False Claims Act are deposited into the Crime Victims Fund. It specifies that from 2025 through 2029, certain False Claims Act proceeds (specifically those for qui tam plaintiff payments and government damage reimbursements) cannot be deposited into the fund. This change directly affects the composition of the Crime Victims Fund by excluding these specific revenue streams during the specified period. The bill does not create new benefits or alter victim services; it only adjusts fund allocation rules for existing False Claims Act revenues.

HR 7 prohibits federal funds from being used for abortions or health insurance plans covering abortion, with exceptions for pregnancies resulting from rape, incest, or when a woman's life is endangered. It blocks federal premium tax credits under the Affordable Care Act for health plans covering abortion (except in specified cases) and requires clear disclosure of abortion coverage and related surcharges in plan materials. The bill allows individuals or employers to purchase separate abortion coverage using non-federal funds, such as out-of-pocket payments, without affecting federal subsidies. It directly affects federal health programs, ACA marketplace plans, and health insurance issuers offering coverage that includes abortion services.

HR 2202 prohibits federal funds from being used for gender transition procedures or health plans covering them in federal programs like Medicaid and the Affordable Care Act. It does not ban these procedures but restricts federal subsidies, requiring individuals to pay for such coverage using non-federal funds (e.g., out-of-pocket or private insurance not tied to federal programs). The bill defines gender transition procedures broadly to include hormonal treatments and surgeries (e.g., mastectomy, hysterectomy), with exceptions for medically necessary treatments related to disorders of sex development or complications from such procedures. It also clarifies that ACA premium tax credits and cost-sharing reductions cannot apply to plans covering these procedures, though separate non-federal-funded coverage remains an option.

HR 1301, the Death Tax Repeal Act, would eliminate the federal estate tax and generation-skipping transfer tax for estates of individuals dying on or after its enactment date. It directly affects individuals inheriting significant assets, as it removes taxes on estates exceeding $10 million (adjusted for inflation) and repeals taxes on large transfers between generations. The bill modifies the gift tax by establishing a $10 million lifetime exemption with annual inflation adjustments, replacing previous tax brackets. It applies to estates, gifts, and transfers occurring on or after the bill's effective date.

Transportation Freedom Act This bill reduces taxes on auto companies and repeals specified environmental regulations on cars and trucks. The bill establishes a new tax deduction equal to 200% of eligible wages paid or incurred by domestic producers of automobiles or automobile components, subject to limitations. It also allows an entity to reduce (and adjust) its financial statement income (for purposes of calculating liability for the alternative minimum tax) by the amount of eligible wages it elects to deduct. The bill nullifies the 2024 rules of the Environmental Protection Agency (EPA) regarding (1) the finalization of specified greenhouse gas (GHG) programs and the reduction of emissions from certain light-duty and medium-duty vehicles (e.g., cars and trucks that are under a certain weight) starting with model year 2027, and (2) phase three of GHG emission standards for heavy-duty vehicles (e.g., school buses and tractor-trailer trucks). It also repeals the 2024 rules of the National Highway Traffic Safety Administration (NHTSA) regarding corporate average fuel economy (CAFE) standards for certain cars, trucks, and vans.  Additionally, the bill eliminates (1) the option given to California to set standards for car emissions that are more stringent than those set under the Clean Air Act, and (2) the option for other states to adopt California's standards.  NHTSA and the EPA must establish new CAFE and GHG standards, respectively, for vehicles that are economically practicable and technologically feasible. The GHG standards may not require the production or sale of electric vehicles.

HR 3313, the Protecting American Farmland Act, prohibits federal agencies from using taxpayer funds to support solar energy projects that convert prime farmland. It also excludes solar installations on prime farmland from multiple federal tax credits, including the residential clean energy credit, production tax credits, and investment tax credits. The bill defines "prime farmland" using existing standards from the Farmland Protection Policy Act, directly affecting solar developers seeking federal funding or tax incentives for projects on such land. These provisions aim to prevent agricultural land conversion for solar energy development by restricting financial incentives.

HR 4102, the RISE Act, reduces the maximum tax rate on investment profits for certain taxpayers. It limits the tax on adjusted net capital gains to 15% for amounts exceeding a specific threshold, directly affecting high-income individuals with significant investment gains. The bill amends the tax code to replace current capital gains tax rates with this new 15% cap for qualifying income. This change applies to taxable years beginning after the bill's enactment date.

The ELITE Vehicles Act repeals three key tax credits for electric vehicles under the Internal Revenue Code: the clean vehicle credit (Section 30D), the credit for previously-owned clean vehicles (Section 25E), and the credit for qualified commercial clean vehicles (Section 45W). It also excludes electric vehicle recharging property from the alternative fuel vehicle refueling credit. These changes directly affect individuals and businesses purchasing new or used electric vehicles, as well as those installing EV charging infrastructure, by eliminating the associated tax benefits. The repeal applies to vehicles purchased or under binding contract after 30 days following the bill's enactment.