Budget & Taxes

HR 3453, the Empower Charter School Educators to Lead Act, creates new federal grants to help educator-led teams plan and open charter schools. It provides up to $100,000 per team for pre-charter planning, targeting groups led by educators with at least 4.5 years of school-based experience (including after-school programs) and a demonstrated ability to lead. To qualify, teams must submit a community needs assessment and a plan showing how their proposed school will address those needs. The bill reserves 5% of relevant funding for these educator-led grants, adjusting existing ESEA grant formulas to prioritize this new support. This directly affects educators seeking to start charter schools and the communities where those schools would operate.

# Summary of Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2026 This comprehensive appropriations bill allocates funding for the Department of Transportation, Department of Housing and Urban Development (HUD), and several related agencies for fiscal year 2026. ## Key Funding Areas 1. **Department of Transportation**: Includes funding for transportation infrastructure, safety programs, and related initiatives. 2. **Department of Housing and Urban Development (HUD)**: - Tenant-based rental assistance (Section 8) - Public housing operating and capital funds - Lead hazard reduction programs - Fair housing activities - Homeless assistance grants - Community development programs - Healthy homes initiatives 3. **Related Agencies**: Funding for the Access Board, Federal Maritime Commission, National Railroad Passenger Corporation (Amtrak), National Transportation Safety Board, Neighborhood Reinvestment Corporation, and Surface Transportation Board. ## Major Restrictions and Provisions 1. **Funding Restrictions**: - No funds may be used for certain types of training (e.g., training inducing emotional stress, religious content, or designed to change personal values) - No funds for first-class airline travel in contravention of federal regulations - No funds for certain projects (e.g., no funds to support projects using eminent domain for private economic development) - No funds to facilitate new scheduled air transportation to Cuban Government-confiscated property 2. **Reporting Requirements**: - Quarterly reports to Congress on uncommitted, unobligated, recaptured, and excess funds - Semi-annual reports on properties with failing physical inspections 3. **Fund Transfer Rules**: - Strict limitations on reprogramming funds without Congressional approval - Restrictions on transferring funds between accounts (e.g., no more than 10% or $5 million transfer between offices) - Specific rules for transfer of funds to the Information Technology Fund 4. **Other Significant Provisions**: - Restrictions on using funds for certain types of litigation - Requirements for transparency in consulting services - Limits on using funds for executive-legislative activities - Prohibitions on using funds for certain types of contracts (e.g., "HAP Contract Support Services" solicitation) The bill contains numerous specific restrictions on how funds may be used, with over 100 provisions detailing what the funds cannot be used for, reflecting a strong emphasis on fiscal responsibility and program accountability.

The CIRCLE Act establishes a 30% tax credit for businesses investing in new or upgraded recycling infrastructure, such as facilities processing materials like electronics (computers, monitors, peripherals) and other recyclables. It directly affects businesses building or modernizing recycling operations by reducing their tax burden for qualifying equipment placed in service after 2025. A 10% domestic content bonus credit is available for investments meeting specific U.S. manufacturing requirements, and the full credit phases out gradually between 2032 and 2037, ending entirely by 2037. The bill aims to boost the U.S. recycling rate from ~30% toward the EPA’s 2030 goal of 50% by incentivizing domestic recycling capacity.

HR 4232, "No Tax Dollars for Riots," restricts federal funding for tax-exempt nonprofits if an officer or board member is convicted of violent offenses against officers (18 U.S.C. §111) or rioting (18 U.S.C. §2101) while serving in that role. It directly affects 501(c)(3) nonprofits (like charities, advocacy groups, and community organizations) that receive federal funds, barring future funding and stripping their tax-exempt status upon such a conviction. The bill's key mechanism is automatic loss of federal funding eligibility and tax-exempt status for the nonprofit if a leader is convicted of these specific offenses during their service. It does not impose criminal penalties but alters federal funding access based on the conduct of nonprofit leadership. The policy change is limited to federal funding restrictions for nonprofits meeting the specified criteria.

This bill makes payments to clinical trial participants tax-free and ensures those payments won't count toward income limits for federal programs like Medicaid or food assistance. It covers both compensation for participation and reimbursement of reasonable expenses (like travel) related to approved clinical trials for life-threatening conditions. The exclusion applies to payments made after December 31, 2025, and is defined in the bill using existing IRS and Public Health Service Act terms.

Rescissions Act of 2025 This act rescinds specified unobligated funds that were provided to the Department of State, the U.S. Agency for International Development (USAID), various independent and related agencies, and the Corporation for Public Broadcasting.  The rescissions were proposed by the President under procedures included in the Congressional Budget and Impoundment Control Act of 1974. Under current law, the President may propose rescissions to Congress using specified procedures, and the rescissions must be enacted into law to take effect.  Specifically, the act rescinds funds that were provided to the State Department or the President for Contributions to International Organizations; Contributions for International Peacekeeping Activities; Global Health Programs (excluding funds for programs addressing HIV/AIDS, tuberculosis, malaria, nutrition, or maternal and child health); Migration and Refugee Assistance; the Complex Crises Fund; the Democracy Fund; the Economic Support Fund (excluding funds for assistance to Jordan, Egypt, or the Countering PRC Influence Fund); Contributions to the Clean Technology Fund; International Organization and Programs; Development Assistance (excluding funds for Feed the Future Innovation Labs, the Countering PRC Influence Fund, or commodity-based food aid); Assistance for Europe, Eurasia, and Central Asia; International Disaster Assistance (excluding funds for commodity-based food aid); and Transition Initiatives. The act also rescinds funds that were provided for  USAID Operating Expenses, the Inter-American Foundation, the U.S. African Development Foundation, the U.S. Institute of Peace, and the Corporation for Public Broadcasting.

HR 3689, the TREAT Youth Act, amends the SUPPORT for Patients and Communities Act to authorize specific annual funding for youth prevention and recovery programs. It sets mandatory funding levels from fiscal years 2026 through 2030, starting at $10 million in 2026 and increasing to $15 million by 2030. The bill does not create new programs but specifies exact funding amounts for existing youth-focused initiatives under the SUPPORT Act. It directly affects federal programs delivering prevention, recovery, education, and awareness services to young people. This is a procedural funding authorization, not a policy change altering program scope or eligibility.

HR 3588, the Real Estate Reciprocity Act, imposes a 50% tax on foreign individuals or entities purchasing U.S. real estate from countries that restrict U.S. citizens from owning property there. It requires the State Department to annually report such countries to the Treasury, which then identifies "disqualified persons" (foreign citizens/entities from those countries) subject to the tax. Key mechanisms include mandatory transaction reporting by title companies or attorneys, an affidavit requirement to verify eligibility, and exclusions for diplomats, asylum seekers, and publicly traded corporations. The tax applies to acquisitions starting in the taxable year after enactment, directly affecting foreign buyers from designated countries. The bill’s title is misleading, as it creates a unilateral tax based on foreign restrictions, not mutual reciprocity.

This bill protects affordable housing projects that received tax credits before 2025 by preventing owners from selling only the non-low-income portions of buildings. It requires that both low-income and non-low-income portions be sold together at fair market value, with the housing credit agency factoring in rent restrictions for the low-income units. This applies to properties where tax credits were necessary for the project’s financial viability. The law directly affects developers and property owners managing federally subsidized affordable housing developments.

The Fit for Duty Act establishes tax-free bonuses for active-duty military members who score 90% or higher on required physical fitness tests. Service members earning a perfect score receive $1,000 per test, while those scoring 90-99% receive $500 per test. The bill requires annual reports to Congress detailing bonus recipients, costs, and impacts on military readiness. It directly affects all active-duty service members subject to fitness testing under Department of Defense standards.