Fueling Alternative Transportation with a Carbon Aviation Tax Act of 2025

S 173 increases taxes on aviation fuel used by private jets and non-commercial aircraft, imposing a rate of 35.9 cents plus $1.641 per gallon (compared to 4.3 cents for commercial aviation), with annual inflation adjustments starting in 2026. It creates exceptions for emergency uses like medical evacuations or disaster response, and eliminates an existing exemption for certain agricultural aviation. The additional tax revenue funds a new "Clean Communities Trust Fund" to support air quality monitoring, expand public transit infrastructure near airports, and improve transportation in disadvantaged communities - requiring at least 50% of funds to target areas disproportionately impacted by air pollution. This bill directly affects private jet operators and aviation fuel suppliers while directing resources to environmental and transit projects in low-income communities.